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ALLOCATION OF
ASSETS TO ADVISORS
JAN 1 DEC 1
2000 1999
----- -----
Beacon
4% 9%
Bridgewater
33% 0%
Dreiss
0% 17%
Grinham
25% 25%
Hirst
0% 14%
Sunrise
17% 17.5%
Transtrend
21% 17.5%
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KENMAR GLOBAL TRUST
DECEMBER 1999 SUMMARY
January 14, 2000
Markets were thinly traded in December, producing sharp--some would say
exaggerated--price movements in key sectors. Given the resulting decline in
liquidity, "much ado" about Y2K concerns, and the heightened risk both implied,
we took discretionary action, effectively pulling out of most markets toward the
end of December. Kenmar Global Trust ("KGT") recorded gains in key financial and
energy markets in December. These gains were offset by declines in currency
markets, resulting in KGT's ending the month down slightly (-0.9%). As of
December 31, 1999, the Net Asset Value per Unit was $99.58, net of fees and
expenses. Year-to-date performance is down (12.0%).
KGT-AN EXCITING NEW STORY
Last month, as we mentioned in our previous letter, we had begun the process of
making significant structural changes in the KGT portfolio. As a result,
allocations were changed, some traders were eliminated, and new traders were
added. The new mix maintains KGT's participation in highly diversified global
markets while offering a broader range of trading strategies. In particular,
while the majority of the original portfolio's traders were long-term trend
followers, the new portfolio consists of 60% fundamental (non-technical) and
short-term trend followers--a strategic shift reflecting the increasing
volatility of markets and paucity of long-term trends in 1999. Details of these
changes can be found in KGT's new prospectus which is now available.
INVESTMENT PHILOSOPHY
KGT's assets are being allocated to two groups of trading advisors: a core group
and a non-core group. The percentage of KGT assets allocated to the core
advisors will change over time, as a result of differing performance results and
due to allocation and reallocation decisions by Kenmar. The percentage of KGT
assets allotted to the non-core group of traders (each with less than 10%) will
be allocated and reallocated to these advisors as part of a strategic effort to
potentially enhance performance. Such allocation decisions will be based on a
variety of considerations which may include, but are not limited to: focus on a
particular market or sector; cyclical performance analysis; or strategy
diversification. (For example, changes in the trading environment may require a
greater emphasis on shorter term trend-following strategies than on longer term,
or on fundamental strategies over technical.) This methodology is intended to
augment the ongoing portfolio performance and risk management of KGT.
REALLOCATIONS
Allocations to Willowbridge Associates, Hyman Beck & Company and Hirst
Investment Management have been eliminated. Sunrise Capital Partners, a
longer-term technical trend follower, remains in KGT's line-up. New traders in
the core group are Transtrend B.V. (longer-term technical trend-follower),
Grinham Managed Futures Pty. Ltd. (shorter-term technical trend follower) and
Bridgewater Associates (fundamental non-technical). As for the non-core traders,
Beacon Management Corporation (longer-term technical trend-follower) has
received an initial allocation of 4%. Dreiss Research has been reassigned as a
non-core trader with no initial allocation.
We believe the above changes may result in a portfolio that offers the potential
for a more consistent level of returns and lower risk given the substantial
changes in our trading environment. We wish to thank our investors for their
confidence in KGT's long-term potential during what has been one of the most
challenging periods for the managed futures industry as a whole.
To the best of my knowledge and belief, the above information is accurate and
complete.
Sincerely,
/s/ ROBERT L. CRUIKSHANK
- ---------------------------------------
Robert L. Cruikshank
Executive Vice President
Kenmar Advisory Corp., as Managing Owner
Kenmar Global Trust
<PAGE>
KENMAR GLOBAL TRUST
UNAUDITED ACCOUNT STATEMENT
FOR THE MONTH ENDING DECEMBER 31, 1999
STATEMENT OF INCOME(LOSS)
TRADING INCOME (LOSS)
Realized Trading Gain/(Loss) $1,322,719.64
Change in Unrealized Gain/(Loss) ($1,334,899.00)
Gain/(Loss) on Other Investments $2,194.21
Brokerage Commission ($245,859.97)
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Total Trading Income ($255,845.12)
EXPENSES
Audit Fees 0.00
Administrative and Legal Fees $69,918.30
Management Fees $0.00
Incentive Fees $13,388.16
Other Expenses $0.00
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Total Expenses $83,306.46
INTEREST INCOME $90,041.86
NET INCOME(LOSS) FROM THE PERIOD ($249,109.72)
=============
STATEMENT OF CHANGES IN NET ASSET VALUE(NAV)
Beginning of Month $26,821,085.13
Addition $0.00
Withdrawal ($3,794,622.55)
Net Income/(Loss) ($249,109.72)
---------------
Month End $22,777,352.85
Month End NAV Per Unit $99.58
Monthly Rate of Return -0.93%
Year to Date Rate of Return -12.03%
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., General Partner of
Kenmar Global Trust
