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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
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[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended: September 30, 2000
Commission File Number: 333-9898
KENMAR GLOBAL TRUST
------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 06-6429854
------------------------------- --------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
TWO AMERICAN LANE,
P.O. BOX 5150,
GREENWICH, CONNECTICUT 06831
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(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (203) 861-1000
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter periods that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
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<PAGE>
KENMAR GLOBAL TRUST
QUARTER ENDED SEPTEMBER 30, 2000
TABLE OF CONTENTS
PAGE
----
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Statements of Financial Condition as of
September 30, 2000 (Unaudited)
and December 31, 1999 (Audited)....................... 1
Statements of Operations For the Three
Months Ended September 30, 2000
and 1999 and For the Nine Months Ended
September 30, 2000 and 1999 (Unaudited)............... 2
Statements of Cash Flows for the Nine
Months Ended September 30, 2000
and 1999 (Unaudited).................................. 3
Statements of Changes in Unitholders'
Capital (Net Asset Value) For
the Nine Months Ended September 30,
2000 and 1999 (Unaudited)............................. 4
Notes to Financial Statements (Unaudited)............. 5-8
Item 2 Management's Discussion and Analysis of
Financial Condition and Results of Operations......... 9-10
PART II - OTHER INFORMATION
Item 2. Changes in Securities................................. 11
Item 6. Exhibits and Reports on Form 8-K...................... 11
SIGNATURES.............................................................. 12
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
KENMAR GLOBAL TRUST
STATEMENTS OF FINANCIAL CONDITION
September 30, 2000 (Unaudited) and December 31, 1999 (Audited)
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
------------- ------------
<S> <C> <C>
ASSETS
Equity in broker trading accounts
Cash $10,370,598 $ 3,275,658
Unrealized gain on open contracts 42,190 70,254
----------- -----------
Deposits with brokers 10,412,788 3,345,912
Cash and cash equivalents 8,319,126 23,481,079
Subscription receivable 2,000 0
----------- -----------
Total assets $18,733,914 $26,826,991
=========== ===========
LIABILITIES
Accounts payable $ 18,552 $ 40,000
Commissions and other trading fees on open contracts 19,592 5,394
Managing Owner brokerage commissions 128,721 196,233
Advisor profit shares 13,053 13,388
Redemptions payable 873,351 3,724,738
Redemption charges payable to Managing Owner 6,329 69,885
----------- -----------
Total liabilities 1,059,598 4,049,638
----------- -----------
UNITHOLDERS' CAPITAL (NET ASSET VALUE)
Managing Owner - 2,010.3231 and 2,813.3231
units outstanding at September
30, 2000 and December 31, 1999 182,969 280,146
Other Unitholders - 192,181.0246 and
225,924.9857 units outstanding at September
30, 2000 and December 31, 1999 17,491,347 22,497,207
----------- -----------
Total unitholders' capital
(Net Asset Value) 17,674,316 22,777,353
----------- -----------
$18,733,914 $26,826,991
=========== ===========
</TABLE>
See accompanying notes.
1
<PAGE>
<TABLE>
KENMAR GLOBAL TRUST
STATEMENTS OF OPERATIONS
For the Three Months Ended September 30, 2000 and 1999 and
For the Nine Months Ended September 30, 2000 and 1999
(Unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
INCOME
Trading gains (losses)
Realized $(1,042,756) $ (111,940) $ (635,470) $(1,105,015)
Change in unrealized 23,458 957,964 (28,064) 1,245,290
----------- ---------- ----------- -----------
Gain (loss) from trading (1,019,298) 846,024 (663,534) 140,275
Interest income 282,060 287,366 873,648 781,267
----------- ---------- ----------- -----------
Total income (loss) (737,238) 1,133,390 210,114 921,542
----------- ---------- ----------- -----------
EXPENSES
Brokerage commissions 47,628 61,767 257,400 208,303
Managing Owner brokerage commissions 489,980 674,747 1,492,358 1,932,307
Advisor profit shares 13,053 0 77,874 95,925
Operating expenses 27,437 36,477 102,702 165,855
----------- ---------- ----------- -----------
Total expenses 578,098 772,991 1,930,334 2,402,390
----------- ---------- ----------- -----------
NET INCOME (LOSS) $(1,315,336) $ 360,399 $(1,720,220) $(1,480,848)
=========== ========== =========== ===========
NET INCOME (LOSS) PER UNIT
(based on weighted average number of units
outstanding during the period) $ (6.44) $ 1.39 $ (7.92) $ (6.06)
=========== ========== =========== ===========
INCREASE (DECREASE) IN NET ASSET
VALUE PER UNIT $ (6.46) $ 1.27 $ (8.57) $ (7.19)
=========== ========== =========== ===========
</TABLE>
See accompanying notes.
2
<PAGE>
<TABLE>
KENMAR GLOBAL TRUST
STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2000 and 1999
(Unaudited)
<CAPTION>
Nine Months
Ended
September 30,
--------------------------------
2000 1999
---- ----
<S> <C> <C>
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES
Net (loss) $(1,720,220) $ (1,480,848)
Adjustments to reconcile net (loss) to net
cash (for) operating activities:
(Increase) in net option premiums 0 (22,212)
Net change in unrealized 28,064 (1,245,290)
(Decrease) in accounts payable
and accrued expenses (75,097) (137,816)
----------- -----------
Net cash (for) operating activities (1,767,253) (2,886,166)
----------- -----------
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES
Addition of units 2,541,655 8,110,024
Decrease in subscription deposits 0 (27,720)
Offering costs paid (66,280) (153,076)
Redemption of units (8,775,135) (2,980,867)
----------- -----------
Net cash from (for) financing activities (6,299,760) 4,948,361
----------- ------------
Net increase (decrease) in cash and cash equivalents (8,067,013) 2,062,195
CASH AND CASH EQUIVALENTS
Beginning of period 26,756,737 24,871,201
----------- -----------
End of period $18,689,724 $26,933,396
=========== ===========
END OF PERIOD CASH AND CASH EQUIVALENTS CONSISTS OF:
Cash in broker trading accounts $10,370,598 $11,651,477
Cash and cash equivalents 8,319,126 15,281,919
----------- -----------
Total end of period cash and cash equivalents $18,689,724 $26,933,396
=========== ===========
</TABLE>
See accompanying notes.
3
<PAGE>
<TABLE>
KENMAR GLOBAL TRUST
STATEMENTS OF CHANGES IN UNITHOLDERS' CAPITAL (NET ASSET VALUE)
For the Nine Months Ended September 30, 2000 and 1999
(Unaudited)
<CAPTION>
Unitholders' Capital
---------------------------------------------------
Total
Number of Managing Other
Units Owner Unitholders Total
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Nine Months Ended September 30, 2000
Balances at
December 31, 1999 228,738.3088 $280,146 $22,497,207 $22,777,353
Net (loss) for the nine months
ended September 30, 2000 (23,277) (1,696,943) (1,720,220)
Additions 26,184.9181 0 2,543,655 2,543,655
Redemptions (60,731.8792) (73,085) (5,787,107) (5,860,192)
Offering costs (815) (65,465) (66,280)
------------ -------- ----------- -----------
Balances at
September 30, 2000 194,191.3477 $182,969 $17,491,347 $17,674,316
============ ======== =========== ===========
Nine Months Ended September 30, 1999
Balances at
December 31, 1998 224,076.5973 $263,850 $25,099,248 $25,363,098
Net (loss) for the nine months
ended September 30, 1999 (15,617) (1,465,231) (1,480,848)
Additions 77,252.6975 50,000 8,060,024 8,110,024
Redemptions (29,569.7323) 0 (3,078,841) (3,078,841)
Offering costs (1,131) (106,970) (108,101)
------------ -------- ----------- -----------
Balances at
September 30, 1999 271,759.5625 $297,102 $28,508,230 $28,805,332
============ ======== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Net Asset Value Per Unit
------------------------------------------------------------------------
September 30, December 31, September 30, December 31,
2000 1999 1999 1998
---------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
$91.01 $99.58 $106.00 $113.19
====== ====== ======= =======
</TABLE>
See accompanying notes.
4
<PAGE>
KENMAR GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. General Description of the Fund
Kenmar Global Trust (the Fund) is a Delaware business trust. The Fund
is a multi-advisor, multi-strategy commodity pool which trades in
United States (U.S.) and foreign futures, options, forwards and
related markets. The Fund was formed on July 17, 1996 and commenced
trading on May 22, 1997.
B. Regulation
As a registrant with the Securities and Exchange Commission, the Fund
is subject to the regulatory requirements under the Securities Act of
1933 and the Securities Exchange Act of 1934. As a commodity pool, the
Fund is subject to the regulations of the Commodity Futures Trading
Commission, an agency of the U.S. government which regulates most
aspects of the commodity futures industry; rules of the National
Futures Association, an industry self-regulatory organization; and the
requirements of the various commodity exchanges where the Fund
executes transactions. Additionally, the Fund is subject to the
requirements of the Futures Commission Merchants (FCMs) and interbank
market makers (collectively, "brokers") through which the Fund trades.
C. Method of Reporting
The Fund's financial statements are presented in accordance with
generally accepted accounting principles, which require the use of
certain estimates made by the Fund's management. Gains or losses are
realized when contracts are liquidated. Net unrealized gain or loss on
open contracts (the difference between contract purchase price and
market price) is reflected in the statement of financial condition in
accordance with Financial Accounting Standards Board Interpretation
No. 39 - "Offsetting of Amounts Related to Certain Contracts." Any
change in net unrealized gain or loss from the preceding period is
reported in the statement of operations. Brokerage commissions paid
directly to brokers include other trading fees and are charged to
expense when contracts are opened.
D. Cash and Cash Equivalents
Cash and cash equivalents includes cash and short-term time deposits
held at financial institutions.
E. Income Taxes
The Fund prepares calendar year U.S. and state information tax returns
and reports to the Unitholders their allocable shares of the Fund's
income, expenses and trading gains or losses.
F. Offering Costs
Offering costs are borne by the Fund and are charged directly to
unitholders' capital as incurred.
5
<PAGE>
KENMAR GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. Foreign Currency Transactions
The Fund's functional currency is the U.S. dollar; however, it
transacts business in currencies other than the U.S. dollar. Assets
and liabilities denominated in currencies other than the U.S. dollar
are translated into U.S. dollars at the rates in effect at the date of
the statement of financial condition. Income and expense items
denominated in currencies other than the U.S. dollar are translated
into U.S. dollars at the rates in effect during the period. Gains and
losses resulting from the translation to U.S. dollars are reported in
income currently.
Note 2. MANAGING OWNER
The Managing Owner of the Fund is Kenmar Advisory Corp., which conducts
and manages the business of the Fund. The Declaration of Trust and
Trust Agreement requires the Managing Owner to maintain a capital
account equal to 1% of the total capital accounts of the Fund.
The Managing Owner is paid monthly brokerage commissions equal to 1/12
of 11% (11% annually) of the Fund's beginning of month Net Asset Value.
The Managing Owner, in turn, pays substantially all actual costs of
executing the Fund's trades, selling commissions and trailing
commissions to selling agents, and consulting fees to the Advisors. The
amount paid to the Managing Owner is reduced by brokerage commissions
and other trading fees paid directly by the Fund.
The Managing Owner is paid an incentive fee equal to 5% of New Overall
Appreciation (which is defined in the Declaration of Trust and Trust
Agreement and excludes interest income) as of each fiscal year-end and
upon redemption of Units. No incentive fee was earned by the Managing
Owner during the three months and nine months ended September 30, 2000
and 1999.
Note 3. COMMODITY TRADING ADVISORS
The Fund has advisory agreements with various commodity trading
advisors pursuant to which the Fund pays quarterly profit shares of 20%
of Trading Profit (as defined in each advisory agreement).
Note 4. DEPOSITS WITH BROKERS
The Fund deposits cash with brokers subject to Commodity Futures
Trading Commission regulations and various exchange and broker
requirements. Margin requirements are satisfied by the deposit of cash
with such brokers. The Fund earns interest income on its cash deposited
with the brokers.
Note 5. SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS
Investments in Units of Beneficial Interest are made by subscription
agreement, subject to acceptance by the Managing Owner.
6
<PAGE>
KENMAR GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
Note 5. SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS (CONTINUED)
The Fund is not required to make distributions, but may do so at the
sole discretion of the Managing Owner. A Unitholder may request and
receive redemption of Units owned, beginning with the end of the sixth
month after such Units are sold, subject to restrictions in the
Declaration of Trust and Trust Agreement. Units redeemed on or before
the end of the twelfth full calendar month and after the end of the
twelfth full month but on or before the end of the eighteenth full
calendar month after the date such Units begin to participate in the
profits and losses of the Fund are subject to early redemption charges
of 3% and 2%, respectively, of the Net Asset Value redeemed. All
redemption charges are paid to the Managing Owner. Such redemption
charges are included in redemptions in the statement of changes in
unitholders' capital and amounted to $44,326 and $14,661 during the
nine months ended September 30, 2000 and 1999, respectively.
Note 6. TRADING ACTIVITIES AND RELATED RISKS
The Fund engages in the speculative trading of U.S. and foreign futures
contracts, options on U.S. and foreign futures contracts and forward
contracts (collectively, "derivatives"). The Fund is exposed to both
market risk, the risk arising from changes in the market value of the
contracts, and credit risk, the risk of failure by another party to
perform according to the terms of a contract.
Purchases and sales of futures and options on futures contracts require
margin deposits with the FCMs. Additional deposits may be necessary for
any loss of contract value. The Commodity Exchange Act requires an FCM
to segregate all customer transactions and assets from such FCM's
proprietary activities. A customer's cash and other property (for
example, U.S. Treasury bills) deposited with an FCM are considered
commingled with all other customer funds subject to the FCM's
segregation requirements. In the event of an FCM's insolvency, recovery
may be limited to a pro rata share of segregated funds available. It is
possible that the recovered amount could be less than total cash and
other property deposited.
The Fund has cash and cash equivalents on deposit with interbank market
makers and other financial institutions in connection with its trading
of forward contracts and its cash management activities. In the event
of a financial institution's insolvency, recovery of Fund assets on
deposit may be limited to account insurance or other protection
afforded such deposits. Since forward contracts are traded in
unregulated markets between principals, the Fund also assumes the risk
of loss from counterparty nonperformance.
For derivatives, risks arise from changes in the market value of the
contracts. Theoretically, the Fund is exposed to a market risk equal to
the value of futures and forward contracts purchased and unlimited
liability on such contracts sold short. As both a buyer and seller of
options, the Fund pays or receives a premium at the outset and then
bears the risk of unfavorable changes in the price of the contract
underlying the option. Written options expose the Fund to potentially
unlimited liability, and purchased options expose the Fund to a risk of
loss limited to the premiums paid.
The Managing Owner has established procedures to actively monitor
market risk and minimize credit risk. The Unitholders bear the risk of
loss only to the extent of the market value of their respective
investments and, in certain specific circumstances, distributions and
redemptions received.
7
<PAGE>
KENMAR GLOBAL TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(Unaudited)
Note 7. INTERIM FINANCIAL STATEMENTS
The statement of financial condition as of September 30, 2000, the
statements of operations for the three months and nine months ended
September 30, 2000 and 1999, and the statements of cash flows and
changes in unitholders' capital (net asset value) for the nine months
ended September 30, 2000 and 1999 are unaudited. In the opinion of
management, such financial statements reflect all adjustments, which
were of a normal and recurring nature, necessary for a fair
presentation of financial position as of September 30, 2000, the
results of operations for the three months and nine months ended
September 30, 2000 and 1999, and cash flows for the nine months ended
September 30, 2000 and 1999.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The proceeds of the offering of the units of beneficial interest (the "Units")
are used by the Fund to engage in the speculative trading of futures, forward,
options and related markets through allocating such proceeds to multiple
commodity trading advisors (the "Advisors").
The assets of the Fund are deposited with commodity brokers and interbank
dealers (collectively, the "Clearing Brokers") in trading accounts established
by the Fund for the Advisors and are used by the Fund as margin to engage in
trading. Such assets are held in either a non-interest bearing bank account or
in securities approved by the CFTC for investment of customer funds.
CAPITAL RESOURCES. The Fund does not have, nor does it expect to have, any
capital assets. Redemptions and sales of the Units in the future will affect the
amount of funds available for trading futures, forwards and options in
subsequent periods.
There are three primary factors that affect the Fund's capital resources: (i)
the trading profit or loss generated by the Advisors (including interest
income); (ii) the capital invested or redeemed by the Unitholders of the Fund
(the "Unitholders"); and (iii) the capital invested or redeemed by the Fund's
managing owner, Kenmar Advisory Corp. ("Kenmar"). Kenmar has maintained, and has
agreed to maintain, at all times a one percent (1%) interest in the Fund. All
capital contributions by Kenmar necessary to maintain such capital account
balance are evidenced by Units, each of which has an initial value equal to the
Net Asset Value Per Unit (as defined below) at the time of such contribution.
Kenmar, in its sole discretion, may withdraw any excess above its required
capital contribution without notice to the Unitholders. Kenmar, in its sole
discretion, also may contribute any greater amount to the Fund, for which it
shall receive, at its option, additional Units at their then-current Net Asset
Value (as defined below).
"Net Asset Value" is defined as total assets of the Fund less total liabilities
as determined in accordance with generally accepted accounting principles as
described in the Fund's Amended and Restated Declaration of Trust and Trust
Agreement dated as of December 17, 1996 (the "Declaration of Trust Agreement").
The term "Net Asset Value Per Unit" is defined in the Declaration of Trust
Agreement to mean the Net Assets of the Fund divided by the number of Units
outstanding as of the date of determination.
RESULTS OF OPERATIONS. The Fund incurs substantial charges from the payment of
profit shares to the Advisors, incentive fees and brokerage commissions to
Kenmar, miscellaneous execution costs, operating, selling and administrative
expenses. Brokerage commissions are payable based upon the Net Asset Value of
the Fund and are payable without regard to the profitability of the Fund. As a
result, it is possible that the Fund may incur a net loss when trading profits
are not substantial enough to avoid depletion of the Fund's assets from such
fees and expenses. Thus, due to the nature of the Fund's business, the success
of the Fund is dependent upon the ability of the Advisors to generate trading
profits through the speculative trading of futures, forwards and options
sufficient to produce capital appreciation after payment of all fees and
expenses.
It is important to note that (i) the Advisors trade in various markets at
different times and that prior activity in a particular market does not mean
that such markets will be actively traded by an Advisor or will be profitable in
the future and (ii) the Advisors trade independently of each other using
different trading systems and may trade different markets with various
concentrations at various times. Consequently, the results of operations of the
Fund can only be discussed in the context of the overall trading activities of
the Fund, the Advisors' trading activities on behalf of the Fund as a whole and
how the Fund has performed in the past.
As of September 30, 2000, the Net Asset Value of the Fund was $17,674,316, a
decrease of approximately 13.16% from its Net Asset Value of $20,351,995 at June
30, 2000. The Fund's subscriptions and redemptions for the quarter ended
September 30, 2000, totaled $461,400 and $1,823,743, respectively. For the
quarter ended September 30, 2000, the Fund had revenue comprised of $(1,042,756)
in realized trading losses, $23,458 in change in unrealized trading gains and
$282,060 in interest income compared to revenue comprised of $(111,940) in
realized trading losses, $957,964 in change in unrealized trading gains and
$287,366 in interest income for the same period in 1999. Total income for the
third quarter of 2000 decreased by $1,870,628 from the same period for 1999,
while total expenses decreased by $194,893 between these periods. The Net Asset
Value per Unit at September 30, 2000 decreased 6.63% from $97.47 at June 30,
9
<PAGE>
2000, to $91.01 at September 30, 2000. The Fund's negative performance for the
quarter ended September 30, 2000, resulted primarily from currencies, global
interest rates and grains.
The Net Asset Value of the Fund decreased $5,103,037 or 22.40% from December 31,
1999 through September 30, 2000. The Fund's subscriptions and redemptions for
the nine months ended September 30, 2000, totaled $2,543,655 and $5,860,192,
respectively. For the nine months ended September 30, 2000, the Fund had losses
comprised of $(635,470) in realized trading losses, $(28,064) in change in
unrealized trading losses and $873,648 in interest income compared to revenue
comprised of $(1,105,015) in realized trading losses, $1,245,290 in change in
unrealized trading gains and $781,267 in interest income for the same period in
1999. The total income for the first nine months of 2000 decreased by $711,428
from the same period in 1999, while total expenses decreased by $472,056 between
these periods. The Net Asset Value per Unit at September 30, 2000 decreased
8.61% from $99.58 at December 31, 1999, to $91.01 at September 30, 2000. The
Fund's negative performance for the nine months ended September 30, 2000
resulted primarily from currencies, global interest rates and grains.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
AS A RESULT, ANY RECENT INCREASES IN REALIZED OR UNREALIZED TRADING GAINS
MAY HAVE NO BEARING ON ANY RESULTS THAT MAY BE OBTAINED IN THE FUTURE.
LIQUIDITY. Units may be redeemed at Net Asset Value, at a Unitholder's option,
as of the close of business on the last day of each month, beginning with the
6th month-end following their sale. Units redeemed on the 6th month-end through
the 12th month-end after sale are subject to a 3% redemption charge. Units
redeemed on the 13th month-end through the 18th month-end after sale are subject
to a 2% redemption charge. After the end of the 18th month, there is no charge
for redemption. Requests for redemption must be received at least ten (10) days
prior to the proposed date of redemption.
With respect to the Fund's trading, in general, the Fund's Advisors will
endeavor to trade only futures, forwards and options that have sufficient
liquidity to enable them to enter and close out positions without causing major
price movements. Notwithstanding the foregoing, most United States commodity
exchanges limit the amount by which certain commodities may move during a single
day by regulations referred to as "daily price fluctuation limits" or "daily
limits". Pursuant to such regulations, no trades may be executed on any given
day at prices beyond the daily limits. The price of a futures contract has
occasionally moved the daily limit for several consecutive days, with little or
no trading, thereby effectively preventing a party from liquidating its
position. While the occurrence of such an event may reduce or effectively
eliminate the liquidity of a particular market, it will not limit ultimate
losses and may in fact substantially increase losses because of this inability
to liquidate unfavorable positions. In addition, if there is little or no
trading in a particular futures or forward contract that the Fund is trading,
whether such illiquidity is caused by any of the above reasons or otherwise, the
Fund may be unable to execute trades at favorable prices and/or may be unable or
unwilling to liquidate its position prior to its expiration date, thereby
requiring the Fund to make or take delivery of the underlying interest of the
commodity.
In addition, certain Advisors trade on futures markets outside the United States
on behalf of the Fund. Certain foreign exchanges may be substantially more prone
to periods of illiquidity than United States exchanges. Further, certain
Advisors trade forward contracts which are not traded on exchanges; rather banks
and dealers act as principals in these markets. The Commodity Futures Trading
Commission does not regulate trading on non-U.S. futures markets or in forward
contracts.
SAFE HARBOR STATEMENT. The discussion above contains certain forward-looking
statements (as such term is defined in the rules promulgated under the
Securities Exchange Act of 1934, as amended) that are based on the beliefs of
the Fund, as well as assumptions made by, and information currently available
to, the Fund. A number of important factors should cause the Fund's actual
results, performance or achievements for 2000 and beyond to differ materially
from the results, performance or achievements expressed in, or implied by, such
forward-looking statements. These factors include, without limitation, the
factors described above.
10
<PAGE>
PART II - OTHER INFORMATION
ITEM 2. CHANGES IN SECURITIES
During the third quarter of 2000, 5010.59 Units were sold for a total of
$461,400.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A. EXHIBITS. Financial Data Schedule.
B. REPORTS ON FORM 8-K. None.
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized, on the 14th day of November, 2000.
KENMAR GLOBAL TRUST
By: Kenmar Advisory Corp., managing owner
By: /s/ KENNETH A. SHEWER
--------------------------------------
Kenneth A. Shewer
Chairman
Pursuant to the requirements of the Securities Exchange Act of 1934, this Report
has been signed below by the following persons on behalf of the registrant and
in the capacities indicated on the 14th day of November, 2000.
KENMAR GLOBAL TRUST
By: Kenmar Advisory Corp., managing owner
By: /s/ KENNETH A. SHEWER
--------------------------------------
Kenneth A. Shewer
Chairman and Director
By: /s/ THOMAS J. DIVUOLO
-------------------------------------
Thomas J. DiVuolo
Senior Vice President
(Principal Financial and Accounting
Officer for the Fund)
12
