KENMAR GLOBAL TRUST
UNAUDITED ACCOUNT STATEMENT
FOR THE MONTH ENDING DECEMBER 31, 1998
STATEMENT OF INCOME(LOSS)
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TRADING INCOME(LOSS)
Realized Trading Gain/(Loss) $ (44,193.09)
Change in Unrealized Gain/(Loss) 964,419.68
Gain/(Loss) on Other Investments 0.00
Brokerage Commission (206,134.09)
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Total Trading Income $ 714,092.50
EXPENSES
Audit Fees $ 0.00
Administrative and Legal Fees 9,369.73
Management Fees 0.00
Incentive Fees 47,079.21
Other Expenses 110,483.17
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TOTAL EXPENSES $ 165,932.11
Interest Income $ 74,056.04
Net Income(Loss) for the Period $ 621,216.43
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STATEMENT OF CHANGES IN NET ASSET VALUE(NAV)
TOTAL FUND
Beginning of Month $22,485,348.69
Addition 2,463,667.40
Withdrawal (207,135.05)
Net Income/(Loss) 621,216.43
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Month End $25,363,097.47
Month End NAV Per Unit $ 113.19
Month Rate of Return 2.76%
Year to Date Rate of Return 13.08%
To the best of our knowledge and belief,
the information above is accurate and complete:
Kenneth A. Shewer, Chairman Marc S. Goodman, President
KENMAR ADVISORY CORP., Managing Owner of
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[KENMAR LOGO]
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ALLOCATION OF
ASSETS TO ADVISORS
JAN 1 DEC 1
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1999 1998
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Dreiss
19% 19%
Hirst
23% 23%
Hyman Beck
25% 24%
Sunrsie
21% 22%
Willowbridge
12% 12%
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KENMAR GLOBAL TRUST
DECEMBER 1998 SUMMARY
January 18, 1999
The net asset value per unit Kenmar Global Trust (KGT) was up 2.8% for the month
of December. As of December 31, 1998, the net asset value per unit was $113.19,
up 13.1% year to date.
KGT had a strong December with gains coming from most sectors. The financial
area was most profitable, with the Japanese Government Bond (JGB) providing very
significant profits. The grains, tropicals and currencies were also very
profitable, with positions in the Japanese Yen, wheat, corn and sugar
contributing nicely. Additional gains were booked in the indices, energies and
precious metals areas with the only negative sector being non-precious metals.
All in all, a strong ending for the year.
YEAR END SUMMARY
Once again, investors have cause to celebrate as a barrage of global events did
not deter the bull market. It seemed nothing could stop the U.S. stock market in
1998 - not Asia, Brazil, a bankrupt Russia, impeachment hearings, nor slowing
corporate earnings growth. At first glance, the performance of major U.S. equity
markets in 1998 seems similar to that from the previous three years (strong
returns were again posted in the Dow, S&P and the NASDAQ indices). However, the
route that these markets took in achieving these returns was in fact quite
different than past years.
Deflation was the major trend in the commodity markets during 1998. Physical
commodities, which include everything from metals to grains to energies and
tropicals (coffee, sugar, cocoa, etc.), all had one thing in common: price
trends were down. As an example, crude oil is currently selling for about half
its price of a year ago. Gas in some areas is as low as $.60/gallon, which is a
25-year low on an inflation adjusted basis. In fact, virtually all commoditities
hit multi-year lows in 1998 including the major grains and base metals, and many
continue to hover at or near those levels today. The Bridge/CRB index (abasket
of commodities) was at a 21-year low at the end of December. There were many
reasons why commodities hit these low levels; the main reason was supply and
demand in Asia. Demand has decrease in the Pacific Rim, which had previously
been a major growth area. while the supply of physical commodities has
increased.
Although past performance is no indication of future results, our ability to
generate double-digit returns in 1998, despite deflation in the commodity
markets, illustrates one of the major advantages of a managed futures
investment. The ability of the advisors to go short (take advantage of downward
price movements) as well as long (benefit from a rise in prices) produced gains
in the energy markets, grains and precious and base metals. As a result of a
deflationary trend in the commodity markets we were able to profit from global
interest rates moving lower. In fact, in
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Past performance is not necessarily indicative of future results.
Performance shown is net of all fees and expenses.
<PAGE>
August (which happened to be the worst monthly performance in the S&P since
August 1990 and the second worst monthly performance since January 1980) and
September, when fears emerged over capital markets liquidity, continued Russian
problems, possible contagion in South America and the specter of falling
corporate profits, managed futures was one of the few bright spots in the
investment spectrum. The strong performance of KGT during this time reinforced
the historic non-correlated characteristics of managed futures.
1998 proved to be a very mixed year for equity investors. For those who owned
the large cap stocks in the NASDAQ or the S&P it was a spectacular year and
those who owned the Dow components had a good year. However, lurking behind
those indices were some darker facts. The average mutual fund lagged the S&P
markedly. Moreover, about half the stocks in the S&P generated no better than
money market returns. The news was even grimmer for those who concentrated on
small caps. For the fifth consecutive year, the Russell 2000 (a measurement of
small caps) under-performed the more widely accepted indices; it finished 1998
in negative territory.
What does all this mean? Economic and interest rate crosscurrents continue to
exist throughout the world today. Leading pundits differ on the future direction
of earnings, as well as stock and bond market direction. Because of the
continued uncertainty in the market place, it appears to us that diversification
among various investment classes is prudent. This is the rationale for the
inclusion of managed futures in a diversified portfolio.
We expect 1998 K-1s to be mailed during the first week in March. We wish all our
investors and friends a very healthy and prosperous 1999.
To the best of my knowledge and belief, the information above is accurate and
complete.
Sincerely,
/s/ BOB
Robert L. Cruikshank
Executive Vice President
Kenmar Advisory Corp., as Managing Owner
Kenmar Global Trust
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Past performance is not necessarily indicative of future results.
Performance shown is net of all fees and expenses.
