10-K 1 dec02-10k.txt March 31, 2003 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 Re: Kenmar Global Trust Commission File #333-8869 Dear Sirs: This filing contains Form 10-K for the year ended December 31, 2002. Very truly yours, Kenneth A. Shewer Chairman and Director (Principal Executive Officer) Kenmar Advisory Corp., Managing Owner Kenmar Global Trust SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 --------------- FORM 10-K --------------- FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2002 Commission File number: 333-8869 -------------- KENMAR GLOBAL TRUST ------------------------------------------------------ (Exact Name of Registrant as Specified in Its Charter) DELAWARE 06-6429854 ------------------------------- ------------------------------------ (State or Other Jurisdiction of (I.R.S. Employer Identification No.) Incorporation or Organization) c/o Kenmar Advisory Corp. Two American Lane P.O. Box 5150 Greenwich, Connecticut 06831 --------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (203) 861-1000 Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Units of Beneficial Interest ---------------------------- (Title of Class) 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 period 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 [ ] Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X] Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes [ ] No [X] None of the voting securities of the registrant are held by Non-Affiliates of the registrant. TABLE OF CONTENTS ----------------- Page ---- PART I ------ ITEM 1. BUSINESS ITEM 2. PROPERTIES ITEM 3. LEGAL PROCEEDINGS ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS PART II ------- ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS ITEM 6. SELECTED FINANCIAL DATA ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE PART III -------- ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT ITEM 11. EXECUTIVE COMPENSATION ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS ITEM 14. CONTROLS AND PROCEDURES PART IV ------- ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K SIGNATURES CERTIFICATIONS PART I ITEM 1. BUSINESS (a) General Development of Business: Kenmar Global Trust (the "Fund") is a Delaware business trust that operates as a commodity investment pool. The Fund was formed on July 17, 1996 and commenced trading on May 22, 1997. The Fund maintains its principal office at Two American Lane, P.O. Box 5150, Greenwich, Connecticut 06831, with a telephone number of (203) 861-1000. The proceeds of the offering of the Units are used by the Fund to engage in the speculative trading of futures, forward, options and related contracts 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. Units of beneficial interest are offered for sale as of the last day of each month at the then-current Net Asset Value per Unit. The minimum investment is $5,000, except for (i) trustees or custodians of eligible employee benefit plans and individual retirement accounts and (ii) existing holders of Units ("Unitholders") subscribing for additional Units, in which case the minimum investment is $2,000. Investors receive a Prospectus that sets forth the material terms of the investment. The Prospectus is updated every nine (9) months or upon any material change (whichever is sooner), as required by the Regulations promulgated under the Commodity Exchange Act, as amended (the "CEAct"), and is filed with the National Futures Association (the "NFA") and the Commodity Futures Trading Commission (the "CFTC") in compliance with such Regulations. The Fund's managing owner is Kenmar Advisory Corp. ("Kenmar"), a corporation originally organized as a New York corporation in September 1983 and reorganized as a Connecticut corporation on January 1, 1996. Kenmar is owned equally and indirectly by Kenneth A. Shewer and Marc S. Goodman, the sole directors of Kenmar. The Fund itself does not have any employees. Rather, Kenmar employs 35 persons (as of December 31, 2002) and provides the Fund with the services of research, client support (marketing) and management information systems and analysis personnel to conduct its operational activities. The Fund is managed by Kenmar. Kenmar: (i) selects the Fund's Clearing Brokers and Selling Agents and selects and monitors the Advisors; (ii) allocates and/or reallocates Fund assets among the Advisors; (iii) determines if an Advisor should be removed or replaced; (iv) negotiates advisory fees; and (v) performs such other services as Kenmar believes that the Fund may from time to time require. (b) Financial Information about Industry Segments: The Fund's business constitutes only one segment for financial reporting purposes, i.e., a commodity investment pool. (c) Narrative Description of Business: General Kenmar believes that the most effective means of controlling the risks of the Fund's futures, forward and options trading is through a diversified portfolio of Advisors. An important part of this strategy focuses on controlling risk by combining Advisors who employ diverse trading methodologies -- such as technical, fundamental, systematic, trend-following, discretionary or mathematical -- and who exhibit diverse performance characteristics. The objective of this strategy is to construct a portfolio of Advisors whose combined performance best meets the investment aim of the Fund to achieve superior returns within appropriately defined parameters of risk. The process of selecting Advisors is an ongoing one -- Kenmar continuously analyzes qualitatively and quantitatively the performance and trading characteristics of the current and prospective Advisors in an effort to determine which Advisors are best suited to Kenmar's perception of the current market environment. Based upon such continuing analysis, Kenmar will reallocate assets among the Advisors or change the portfolio of Advisors when Kenmar's perception of the trading environment or an Advisor's individual performance indicates to Kenmar that such change or changes are appropriate. Kenmar believes that its ability to manage successfully the risks of futures and related investments is dependent upon a willingness to act decisively and a management style that identifies and responds to shifting market trends. Therefore, when Kenmar's perception of market conditions and/or individual Advisor performance suggests that an alternative trading style or methodology might be better suited to Kenmar's perception of the current market environment, Kenmar may alter the portfolio of Advisors or the allocation of assets among the Advisors without prior notice to, or the approval of, the Unitholders. Advisor Summaries Set forth below is a brief description of the portfolio of core-Advisors trading for the Fund as of December 31, 2002. Graham Capital Management, L.P. Graham Capital Management, L.P. ("GCM") was organized as a Delaware limited partnership in May 1994. The general partner of GCM is KGT, Inc., a Delaware corporation of which Kenneth G. Tropin is the President and sole shareholder. The limited partner of GCM is KGT Investment Partners, L.P., a Delaware limited partnership of which KGT, Inc. is also a general partner and in which Mr. Tropin is the principal investor. (KGT, Inc. and KGT Investment Partners, L.P. are not affiliated with Kenmar, the Fund or any other company affiliated or related to Kenmar or the Fund). GCM became registered as a commodity pool operator and commodity trading advisor under the CEAct and a member of the NFA on July 27, 1994. The programs used by GCM on behalf of the Fund are the K4 Program at Standard Leverage ("Standard Leverage") and the K4 Program at 150% Leverage ("150% Leverage"). The Fund invests in either the Standard Leverage program or the 150% Leverage program, but not in both programs simultaneously. GCM is an investment manager that actively trades worldwide on a 24-hour basis in the equity, fixed income, currency and commodity markets utilizing securities, futures, forwards and other financial instruments. GCM offers clients systematic and discretionary global macro trading programs and a long- short equity program. The investment objective of each GCM trading strategy is to provide clients with significant potential for capital appreciation in both rising and falling markets during expanding and recessionary economic cycles. Grinham Managed Funds Pty Ltd. Grinham Managed Funds Pty Ltd. is an Australian commodity trading advisor, regulated as such with the CFTC and a member of NFA, utilizing an automated, technical trading system. The basic premise of the system is that markets incorporate a random and non-random component. The Grinham Managed Funds Pty Ltd. system is designed to identify when markets begin to move in a non-random fashion and to generate orders to profit from non-random price movements. Grinham Managed Funds Pty Ltd. trades 45 markets across 7 countries, incorporating most of the major stock indices, interest rates, currency and commodities markets. Risk control is a major fundamental of the system, utilizing diversification to limit the risk of any single trade to less than 0.1% of the assets under management. Transtrend B.V. Transtrend B.V. ("Transtrend") is a Dutch limited liability company formed in November 1991 to provide commodity trading advisory services to selected clients. It has been registered as a commodity trading advisor and commodity pool operator under the CEAct since September 23, 1994, and is a member of the NFA in such capacities. Transtrend is also licensed as a portfolio manager, and is subject to regulation by the Autoriteit Financiele Markten, the securities board of The Netherlands ("AFM"). Registration under the CEAct, membership in the NFA and the AFM license in no way imply that the CFTC, the NFA or the AFM have endorsed Transtrend's qualifications to provide the commodity trading advisory services described in this document. In its Diversified Trend Program, traded on behalf of the Fund, Transtrend applies a combination of well researched trading systems. Each trading system has a demonstrated profit expectancy over the course of time. In particular, the trading systems attempt to exploit non-random price behaviors based on quantitative analysis of (typical) price patterns. The trading systems are consistent, systematic and applied with skill and discipline. The systems can be applied to well over a hundred different product-market combinations traded on approximately fifty exchanges in approximately twenty-five countries. Diversified portfolios consist of a variety of futures broadly spread over interest instruments, stock indices, tangible commodities and foreign exchange pairs. Correlation analysis contributes to a desired portfolio balance. Volatility analysis plays a prominent role in the assessment of risk. Compatibility between trading systems and the markets they are applied to is monitored closely. Multiple entries and exits contribute to the desired stability of returns. Use of Proceeds The proceeds of the offering of 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 the Advisors. To the extent the Fund trades in futures contracts on U.S. exchanges, the assets deposited by the Fund with its Clearing Brokers as margin must be segregated pursuant to the regulations of the CFTC. Such segregated funds may be invested only in a limited range of instruments -- principally U.S. government obligations. To the extent that the Fund trades in futures, forward, options and related contracts on markets other than regulated U.S. futures exchanges, funds deposited to margin positions held on such exchanges are invested in bank deposits or in instruments of a credit standing generally comparable to those authorized by the CFTC for investment of "customer segregated funds," although applicable CFTC rules prohibit funds employed in trading on foreign exchanges from being deposited in "customer segregated fund accounts." Although the percentages set forth below may vary substantially over time, Kenmar estimates that as of December 31, 2002: (i) up to approximately 58% of the Net Asset Value of the Fund is placed with the Clearing Brokers in the form of cash or U.S. Treasury bills to margin positions of all commodities combined. Such funds will be segregated pursuant to CFTC rules; and (ii) approximately 42% of the Net Asset Value of the Fund is maintained in bank deposits. Fund assets maintained in bank deposits are currently maintained with Brown Brothers Harriman & Co. in New York, New York and Georgetown, Grand Cayman Island. In addition, assets of the Fund not required to margin positions may be maintained in United States bank accounts opened in the name of the Fund and may be held in U.S. Treasury bills (or other securities approved by the CFTC for investment of customer funds). The Fund receives all of the interest income earned on its assets. Breakeven Table The "Breakeven Table" below indicates the approximate percentage and dollar returns required for the redemption value of an initial $5,000 investment in the Units to equal the amount originally invested twelve months after issuance (assuming the Units are redeemed on or before the 12th month-end following sale and, therefore, are subject to a 3% redemption charge). Redemptions on the 13th month-end through the 18th month-end are subject to a 2% charge. Redemptions after the 18th month-end are redeemed at Net Asset Value (no charge). The "Breakeven Table," as presented, is an approximation only and is not affected by the size of the Fund. The Fund's capitalization does not directly affect the level of its charges as a percentage of Net Asset Value, other than administrative expenses (which are assumed in the "Breakeven Table" to equal the maximum estimated percentage of the Fund's average beginning of month Net Assets). See "Description of Current Charges" below for an explanation of these charges. "Breakeven Table" ------------------------------------------------------------------------------- Percentage Return Dollar Return Required Expenses (1) Required First ($5,000 Initial Which must Be Offset Twelve Months Investment) First Twelve To "Break Even" of Investment Months of Investment ------------------------------------------------------------------------------- Brokerage Commissions(2) 11.00 % $ 550.00 ------------------------------------------------------------------------------- Administrative Expenses(3) 1.00 % $ 50.00 ------------------------------------------------------------------------------- Miscellaneous Execution Costs(4) 0.25 % $ 12.50 ------------------------------------------------------------------------------- Advisors' Profit Shares(5) 2.00 % $ 100.00 ------------------------------------------------------------------------------- Kenmar Incentive Fee(6) 0.15 % $ 7.50 ------------------------------------------------------------------------------- Redemption Charge(7) 3.10 % $ 155.00 ------------------------------------------------------------------------------- Interest Income(8) (1.75)% $ (87.50) ------------------------------------------------------------------------------- Return on $5,000 initial investment 15.75 % $ 787.50 required for "break even" if Units are redeemed on or before the 12th month-end following sale. ------------------------------------------------------------------------------- Return on $5,000 initial investment 14.69 % $ 734.50 required for "break even" if Units are redeemed on the 13th month-end through the 18th month-end following sale. ------------------------------------------------------------------------------- Return on $5,000 initial investment 12.65 % $ 632.50 required for "break even" if Units are redeemed after the 18th month-end following sale. ------------------------------------------------------------------------------- Notes to "Breakeven Table" (1) The foregoing break-even analysis assumes that the Units have a constant month-end Net Asset Value. Calculations are based on $5,000 as the Net Asset Value per Unit. (2) Paid to Kenmar each month. Kenmar pays all floor brokerage, exchange, clearing and NFA fees, selling compensation, trailing commissions and Advisors' Consulting Fees from this amount. (3) Administrative expenses are paid as incurred. For this "Breakeven Table" such expenses are at historical amounts. (4) Estimated; paid on a per-transaction basis. "Bid-ask" spreads are not included due to the difficulty of determining such spreads, which may constitute a significant cost to the Fund. (5) Profit Shares are calculated quarterly on the basis of each Advisor's individual performance, not the overall performance of the Fund. Consequently, it is not possible to determine the amount of Profit Shares, if any, that would be payable in a "breakeven" year. Kenmar believes that 2.00% of average beginning of month Net Assets is a reasonable estimate for such Profit Shares, but the actual Profit Shares paid in a "breakeven" year could substantially exceed such estimate. (6) No Incentive Fee might, in fact, be due. However, for purposes of the "Breakeven Table," the Incentive Fee has been estimated at 5% of such 3.1% gain referred to below. (7) Redemption charges for purposes of this "breakeven" analysis equal 3.1% of the initial $5,000 (3% of the $5,155 Net Asset Value required so that after subtraction of the 3% redemption charge, the investor would receive net redemption proceeds of $5,000). (8) Interest income is estimated based on current rates. Description of Current Charges Recipient Nature Of Payment Amount Of Payment Kenmar Brokerage commissions Flat-rate monthly commissions of 0.917% of the Fund's beginning of month Net Assets (an 11% annual rate). Such commissions cover all floor brokerage, exchange, clearing and NFA fees incurred in the Fund's trading. Third Parties Miscellaneous Paid as incurred; not anticipated to execution costs exceed 0.25% of average beginning of month Net Assets per year. Counterparties "Bid-ask" spreads Each counterparty with which the Fund trades receives "bid-ask" spreads on the forward trades executed on behalf of the Fund. Advisors Profit Shares Paid by the Fund on a quarterly basis (although accrued against Net Asset Value per Unit monthly). Each Advisor's Profit Share is determined based on 20% of any New Trading Profit (as defined) generated by such Advisor. New Trading Profit in respect of each Advisor's account is calculated after reduction for brokerage commissions at an annual rate of 2.5%--5.0%, rather than at an 11% annual rate, and execution costs actually incurred (other than floor brokerage, exchange, clearing and NFA fees). New Trading Profit is not reduced by any Incentive Fee, administrative expenses or organizational and initial offering costs (or extraordinary expenses). The Profit Shares are payable separately to each Advisor based on its individual performance, not overall profits of the Fund. Units may be subject to reduction for Profit Shares attributable to a particular Advisor even though the Net Asset Value per Unit has declined from the purchase price of such Units. Kenmar Incentive Fee Paid by the Fund as a whole on an annual basis (although accrued against Net Asset Value per Unit monthly). The Incentive Fee equals 5% of any New Overall Appreciation (as defined). An Incentive Fee may be allocated even though the Net Asset Value per Unit has declined from the purchase price of such Units. Third Parties Operating, Selling Paid as incurred; not anticipated and Administrative to exceed 1.0% of the Fund's average costs beginning of month Net Assets per year. Regulation Kenmar, the Advisors and the Clearing Brokers are each subject to regulation by the CFTC and the NFA. Other than in respect of its periodic reporting requirements and the registration of the Units for continuous public distribution under the Securities Act of 1933, the Fund itself is generally not subject to regulation by the Securities and Exchange Commission. ITEM 2. PROPERTIES The Fund does not use any physical properties in the conduct of its business. The Fund's only place of business is the place of business of Kenmar. Certain administrative services are provided by Derivatives Portfolio Management L.L.C. which is located at Two Worlds Fair Drive, P.O. Box 6741, Somerset, New Jersey 08875-6741. ITEM 3. LEGAL PROCEEDINGS There are no pending legal proceedings to which the Fund or Kenmar is a party. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS The Fund has never submitted any matters to a vote of its Unitholders. PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS Related Stockholder Matters (a) Market Information: (1)(i) There is no established public trading market for the Units, nor will one develop. Rather, Unitholders may purchase or redeem Units as of the end of each month at Net Asset Value, subject to certain early redemption charges. (b) Holders: (1) As of December 31, 2002, there were 604 holders of Units, including Kenmar and the Advisors. As of December 31, 2002, Marc S. Goodman owned 52.8321 Units in his individual retirement account, Kenneth A. Shewer owned 50.2517 Units in his individual retirement account and Kenmar owned 2,041.4999 Units. (c) Dividends: (1) The Fund has made no distributions since trading commenced, nor does Kenmar presently intend to make any distributions in the future. (d) Securities Authorized for Issuance Under Equity Compensation Plans: (1) Not applicable. Reg. S-K Item 701(f) During the fourth quarter of 2002, 14,747.778 Units were sold for a total of $1,584,914. ITEM 6. SELECTED FINANCIAL DATA The following selected financial data of the Fund has been derived from the Fund's audited financial statements. Year ended 12/31/02 -------- Operations Data Realized Gains (Losses) $ 4,672,380 Change in Unrealized 631,477 Interest Income 170,849 Brokerage Commissions 184,293 Managing Owner Brokerage Commissions 1,647,208 Managing Owner Incentive Fee 0 Advisor Profit Shares 934,498 Operating Expenses 139,531 Net Income (Loss) 2,569,176 Net Income (Loss) Per Unit 15.20 (Based on Weighted Average Number of Units Outstanding) Increase (Decrease) in Net Asset 14.29 Value per Unit 12/31/02 -------- Financial Position Data: Managing Owner's Capital $ 226,137 Other Unitholders' Capital 19,168,078 Total Capital 19,394,215 Net Asset Value Per Unit 110.77 Year ended 12/31/01 -------- Operations Data Realized Gains (Losses) $ 2,479,061 Change in Unrealized (584,140) Interest Income 517,609 Brokerage Commissions 239,616 Managing Owner Brokerage Commissions 1,566,968 Managing Owner Incentive Fee 0 Advisor Profit Shares 465,428 Operating Expenses 99,383 Net Income (Loss) 41,135 Net Income (Loss) Per Unit 0.24 (Based on Weighted Average Number of Units Outstanding) Increase (Decrease) in Net Asset (0.53) Value per Unit 12/31/01 -------- Financial Position Data: Managing Owner's Capital $ 196,966 Other Unitholders' Capital 15,928,413 Total Capital 16,125,379 Net Asset Value Per Unit 96.48 Year ended 12/31/00 -------- Operations Data Realized Gains (Losses) $ (14,413) Change in Unrealized 960,207 Interest Income 1,129,270 Brokerage Commissions 312,560 Managing Owner Brokerage Commissions 1,911,158 Managing Owner Incentive Fee 0 Advisor Profit Shares 198,721 Operating Expenses 132,875 Net Income (Loss) (480,250) Net Income (Loss) Per Unit (2.29) (Based on Weighted Average Number of Units Outstanding) Increase (Decrease) in Net Asset (2.57) Value per Unit 12/31/00 -------- Financial Position Data: Managing Owner's Capital $ 195,013 Other Unitholders' Capital 17,537,051 Total Capital 17,732,064 Net Asset Value Per Unit 97.01 Year ended 12/31/99 -------- Operations Data Realized Gains (Losses) $ 130,990 Change in Unrealized (1,149,702) Interest Income 1,082,050 Brokerage Commissions 274,883 Managing Owner Brokerage Commissions 2,616,529 Managing Owner Incentive Fee 0 Advisor Profit Shares 109,313 Operating Expenses 236,610 Net Income (Loss) (3,173,997) Net Income (Loss) Per Unit (12.65) (Based on Weighted Average Number of Units Outstanding) Increase (Decrease) in Net Asset (13.61) Value per Unit 12/31/99 -------- Financial Position Data: Managing Owner's Capital $ 280,146 Other Unitholders' Capital 22,497,207 Total Capital 22,777,353 Net Asset Value Per Unit 99.58 Year ended 12/31/98 -------- Operations Data Realized Gains (Losses) $ 4,443,190 Change in Unrealized 381,635 Interest Income 750,290 Brokerage Commissions 147,779 Managing Owner Brokerage Commissions 1,652,458 Managing Owner Incentive Fee 43,400 Advisor Profit Shares 984,809 Operating Expenses 134,568 Net Income (Loss) 2,612,101 Net Income (Loss) Per Unit 16.96 (Based on Weighted Average Number of Units Outstanding) Increase (Decrease) in Net Asset 13.09 Value per Unit 12/31/98 -------- Financial Position Data: Managing Owner's Capital $ 263,850 Other Unitholders' Capital 25,099,248 Total Capital 25,363,098 Net Asset Value Per Unit 113.19 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The proceeds of the offering of the Units are used by the Fund to engage in the speculative trading of futures, forward, options and related contracts through allocating such proceeds to the Advisors. The assets of the Fund are deposited with 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. Results of Operations. The Fund incurs substantial charges from the payment of Profit Shares to the Advisors and the Incentive Fee and Brokerage Commissions to Kenmar. The Brokerage Commissions are payable without regard to the profitability of the Fund. 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, forward and option contracts sufficient to produce capital appreciation after payment of all fees and expenses. The following paragraph presents a summary of the Fund's operations for the calendar year 2002. It is important to note, however, 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 December 31, 2002, the Net Asset Value of the Fund was $19,394,215, an increase of approximately 20.27% from its Net Asset Value of $16,125,379 at December 31, 2001. The Fund's subscriptions and redemptions for the year ended December 31, 2002, totaled $3,163,416 and $2,354,126, respectively. For the year ended December 31, 2002, the Fund had revenues comprised of $4,672,380 in realized trading gains, $631,477 in unrealized trading gains and $170,849 of interest income. Total expenses for the year ended December 31, 2002 were $2,905,530. The Net Income for the year ended December 31, 2002 was $2,569,176. The Net Asset Value per Unit increased 14.81% from $96.48 at December 31, 2001, to $110.77 at December 31, 2002. The Fund's positive performance for the year ended December 31, 2002 resulted primarily from global interest rates, currencies and global stock indices. As of December 31, 2001, the Net Asset Value of the Fund was $16,125,379, a decrease of approximately 9.06% from its Net Asset Value of $17,732,064 at December 31, 2000. The Fund's subscriptions and redemptions for the year ended December 31, 2001 totaled $2,242,654 and $3,766,020, respectively. For the year ended December 31, 2001, the Fund had revenues comprised of $2,479,061 in realized trading gains, $(584,140) in change in unrealized trading losses and $517,609 in interest income. Total expenses for the year ended December 31, 2001 were $2,371,395. The Net Income for the year ended December 31, 2001 was $41,135. The Net Asset Value per Unit at December 31, 2001 decreased 0.55% from $97.01 at December 31, 2000 to $96.48 at December 31, 2001. The Fund's trading gains during 2001 resulted primarily from global interest rates, currencies, global stock indices and grains, but, net of offering costs, the Fund experienced a negative compounded rate of return of (0.55)%. As of December 31, 2000, the Net Asset Value of the Fund was $17,732,064, a decrease of approximately 22.15% from its Net Asset Value of $22,777,353 at December 31, 1999. The Fund's subscriptions and redemptions for the year ended December 31, 2000 totaled $3,526,802 and $7,889,441, respectively. For the year ended December 31, 2000, the Fund had revenues comprised of ($14,413) in realized trading losses, $960,207 in change in unrealized trading gains and $1,129,270 in interest income. Total expenses for the year ended December 31, 2000 were $2,555,314. The Net Loss for the year ended December 31, 2000 was ($480,250). The Net Asset Value per Unit at December 31, 2000 decreased 2.58% from $99.58 at December 31, 1999 to $97.01 at December 31, 2000. The Fund's trading losses during 2000 resulted primarily from an unusually volatile market environment for the period, which affected similarly situated funds. 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 And Capital Resources Units may be redeemed only as of the close of business on the last day of a calendar month and only beginning on or after the end of the sixth month after sale. Through the end of the twelfth and eighteenth full months after their sale, Units will be subject to redemption charges, payable to Kenmar, equal to 3% and 2%, respectively, of the Net Asset Value per Unit as of the date of redemption. Requests for redemption must be received at least 10 calendar days before the proposed date of redemption. The amount of capital raised for the Fund should not, except at extremely high levels of capitalization, have a significant impact on its operations. The Fund's costs are generally proportional to its asset base, and, within broad ranges of capitalization, the Advisors' trading positions (and the resulting gains and losses) should increase or decrease in approximate proportion to the size of the Fund's account managed by each of them, respectively. The Fund raises additional capital only through the continuous offering of its Units. Inflation per se is not a significant factor in the Fund's profitability, although inflationary cycles can give rise to the type of major price movements that can have a materially favorable or adverse impact on the Fund's performance. With respect to the Fund's trading, in general, the Fund's Advisors will 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 his 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 highly unusual circumstances, market illiquidity could make it difficult for certain Advisors to close out open positions, and any such illiquidity could expose the Fund to significant losses, or cause it to be unable to recognize unrealized gains. However, in general, there is no meaningful difference between the Fund's realized and unrealized gains. In terms of cash flow, it makes little difference whether a market position remains open (so that the profit or loss on such positions remains unrealized), as cash settlement of unrealized gains and losses occurs periodically whether or not positions are closed out. The only meaningful difference between realized and unrealized gains or losses in the case of the Fund is that unrealized items reflect gains or losses on positions which the Advisors have determined not to close out (presumably, in the hope of future profits), whereas realized gains or losses reflect amounts received or paid in respect of positions no longer being maintained. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Financial statements meeting the requirements of Regulation S-X appear beginning on Page F-1 of this report. The supplementary financial information specified by Item 302 of Regulation S-K appears herewith. Selected Quarterly Financial Data The following summarized quarterly financial information presents the results of operations for the three month periods ended March 31, June 30, September 30 and December 31, 2002 and 2001: 1st Quarter 2nd Quarter. 3rd Quarter 4th Quarter 2002 2002 2002 2002 ----------- ----------- ----------- ----------- Gain (Loss) from Trading $ (487,029) $ 1,736,816 $ 3,665,225 $ 388,845 Total Income (Loss) (435,676) 1,781,533 3,706,273 422,576 Net Income (Loss) (888,460) 1,064,948 2,524,402 (131,714) Net Income (Loss) per Unit (5.27) 6.28 15.03 (0.78) Increase (Decrease) in Net Asset Value per Unit (5.32) 6.20 14.84 (1.43) Net Asset Value per Unit at end of period 91.16 97.36 112.20 110.77 1st Quarter 2nd Quarter. 3rd Quarter 4th Quarter 2001 2001 2001 2001 ----------- ----------- ----------- ----------- Gain (Loss) from Trading $ 691,373 $ (67,533) $ 1,210,051 $ 61,030 Total Income (Loss) 897,115 73,521 1,324,873 117,021 Net Income (Loss) 196,964 (425,270) 670,834 (401,393) Net Income (Loss) per Unit 1.10 (2.55) 4.03 (2.43) Increase (Decrease) in Net Asset Value per Unit 1.22 (2.78) 4.04 (3.01) Net Asset Value per Unit at end of period 98.23 95.45 99.49 96.48 There were no extraordinary, unusual or infrequently occurring items recognized in any quarter reported above, and the Fund has not disposed of any segments of its business. There have been no year-end adjustments that are material to the results of any fiscal quarter reported above. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE There were no changes in or disagreements with accountants on accounting and financial disclosure. PART III ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (a), (b) Identification of Directors and Executive Officers: Kenmar Advisory Corp. is the sole managing owner of the Fund. Kenmar, a corporation originally organized as a New York corporation in September 1983 and reorganized as a Connecticut corporation on January 1, 1996, is owned equally and indirectly by Messrs. Shewer and Goodman. Kenneth A. Shewer is Kenmar's Chairman and Marc S. Goodman is its President. Messrs. Shewer and Goodman are Kenmar's sole directors. Mr. Kenneth A. Shewer (born 1953), Chairman, was employed by Pasternak, Baum and Co., Inc. ("Pasternak, Baum"), an international cash commodity firm, from June 1976 until September 1983. Mr. Shewer created and managed Pasternak, Baum's Grain Logistics and Administration Department and created its Domestic Corn and Soybean Trading Department. In 1982, Mr. Shewer became co-manager of Pasternak, Baum's F.O.B. Corn Department. In 1983, Mr. Shewer was made Vice President and Director of Pasternak, Baum. Mr. Shewer graduated from Syracuse University with a B.S. degree in 1975. Mr. Marc S. Goodman (born 1948), President, joined Pasternak, Baum in September 1974 and was a Vice President and Director from July 1981 until September 1983. While at Pasternak, Baum, Mr. Goodman was largely responsible for business development outside of the United States, for investment of its corporate retirement funds, and for selecting trading personnel. Mr. Goodman has conducted extensive business in South America, Europe and the Far East. Mr. Goodman graduated from the Bernard M. Baruch School of Business of the City University of New York with a B.B.A. in 1969 and an M.B.A. in 1971 in Finance and Investments, where he was awarded an Economics and Finance Department Fellowship from September 1969 through June 1971. Messrs. Shewer and Goodman left Pasternak, Baum in September 1983 to form Kenmar and they have occupied their present positions with Kenmar since that time. Ms. Esther Eckerling Goodman (born 1952), Chief Operating Officer and Senior Executive Vice President, joined Kenmar in July 1986 and has been involved in the futures industry since 1974. From 1974 through 1976, she was employed by Conti-Commodity Services, Inc. and ACLI Commodity Services, Inc., in the areas of hedging, speculative trading and tax arbitrage. In 1976, Ms. Goodman joined Loeb Rhoades and Company, Inc. where she was responsible for developing and managing a managed futures program which, in 1979, became the trading system for Westchester Commodity Management, an independent commodity trading advisor of which Ms. Goodman was a founder and principal. From 1983 through mid-1986, Ms. Goodman was employed as a marketing executive at Commodities Corp. (USA) of Princeton, New Jersey. Ms. Goodman was a Director of the Managed Futures Trade Association from 1987 to 1991 and a Director of its successor organization, the Managed Futures Association, from 1991 to 1995 (now the Managed Funds Association). She has written several articles and has spoken before various professional groups and organizations on the subject of managed futures. Ms. Goodman graduated from Stanford University in 1974 with a B.A. degree. Mr. Braxton Glasgow III (born 1953), Executive Vice President, joined Kenmar in May 2001. Prior to joining Kenmar, Mr. Glasgow was the Executive Vice President of Chesapeake Capital Corporation. From 1994 to 1995, he was President of the Jay Group Ltd. Mr. Glasgow received a B.S. degree in accounting from the University of North Carolina in 1975. Ms. Florence Y. Sofer (born 1966), Managing Director, Investor Communications responsible for the development and implementation of all internal and external communications programs worldwide, joined Kenmar in 2001. From 1997 to 2001, Ms. Sofer was the Vice President, Marketing, and a Principal of John W. Henry & Company, where she was responsible for strategic marketing and client communications for the firm and its subsidiaries. From 1994 to 1997, Ms. Sofer was the Marketing Manager for Global Asset Management where she was involved in the successful development and launch of the firm's mutual fund product line. Ms. Sofer received a B.A. degree from American University in 1988 and an M.B.A. in Marketing from George Washington University in 1992. Mr. Gary J. Yannazzo (born 1953), Senior Vice President and Chief Financial Officer, joined Kenmar in August 1997. From March 1992 to July 1995, he was Senior Vice President and Controller of Metallgesellschaft Corp., a diversified commodity marketing and trading company, with thirty worldwide subsidiaries and $5 billion in annual revenues. From January 1990 through February 1992, Mr. Yannazzo was President, Chief Executive Officer and part owner of Holland Mortgage Corporation. From December 1982 through November 1989, Mr. Yannazzo was First Vice President of Security Capital Corporation, a publicly traded financial services company and affiliate of Smith Barney, Inc. From June 1975 through November 1982, Mr. Yannazzo was with Arthur Andersen & Co., serving as an Audit Manager from June 1980. From August 1995 until he joined Kenmar, Mr. Yannazzo was a private consultant, engaged primarily in projects and ventures in the commodity and derivative areas. Mr. Yannazzo received his B.S. in Business Administration from Seton Hall University in 1975 and his CPA certification in 1977. Ms. Joanne D. Rosenthal (born 1965), Senior Vice President and Director of Research, joined Kenmar in October 1999. Prior to joining Kenmar, Ms. Rosenthal spent 9 years at The Chase Manhattan Bank, in various positions of increasing responsibility. From July 1991 through April 1994, she managed the Trade Execution Desk and from May 1994 through September 1999, she was a Vice President and Senior Portfolio Manager of Chase Alternative Asset Management, Inc. Ms. Rosenthal received a Masters of Business Administration in Finance from Cornell University and a Bachelor of Arts in Economics from Concordia University in Montreal, Canada. Mr. Mark M. Rossow (born 1952), Senior Vice President and General Counsel, joined Kenmar in August 2000. From October 1998 until July 2000, Mr. Rossow was a partner in the law firm of Snow Becker Krauss P.C. From May 1994 until September 1998, Mr. Rossow was a partner in the law firm of Amon & Sabatini. Prior to that, Mr. Rossow was in-house counsel to the international accounting firm BDO Seidman. Mr. Rossow has served on the staff of the United States Securities and Exchange Commission. Mr. Rossow earned a B.A. degree from Syracuse University in 1975 and a J.D. degree from the University of Michigan in 1978. He was admitted to practice law in 1979. Mr. Jeffrey Wilson (born 1965), Financial Controller, joined Kenmar in January 2001. From June 2000 to December 2000, Mr. Wilson was a group controller for Whitney & Company. From 1995 to May 2000, Mr. Wilson was a group controller at UBS Warburg. Mr. Wilson received a B.B.A. degree in accounting from the University of San Diego in 1988. He received his CPA certification in 1991. Mr. James Dodd (born 1951), Managing Director, joined Kenmar in 2002. He is responsible for structuring and marketing investment products to insurance companies and other financial institutions. Mr. Dodd has almost twenty years of experience in investment banking and marketing structured investment products, working at Chesapeake Capital, Hoak, Breedlove, Wesneski, Continental Bank and Boettcher & Co. Prior to joining Kenmar, Mr. Dodd was the Chief Financial Officer at VE Group, a company that specialized in venture capital investments from 2000. Prior to that Mr. Dodd was Managing Director, Financial Institutions Marketing, for Chesapeake Capital from 1997. Previously, Mr. Dodd held various positions at distinguished banks and other financial institutions. Mr. Dodd received a A.B. degree from Cornell University in 1974 and a M.B.A. degree from the University of Chicago in 1983. Each director of Kenmar serves until the next annual meeting of stockholders or until a successor is elected. Executive officers of Kenmar are appointed annually and serve at the discretion of its Board of Directors. Messrs. Shewer and Goodman hold directorships in the following entities, all of which are affiliates of Kenmar: Kenmar Asset Allocation Inc., Kenmar Global Strategies Inc., Kenmar Holdings Inc., Kenmar Investment Adviser Corp., Kenmar Securities, Inc. and Kenmar Global Investment Management Inc. In addition, Mr. Shewer is a director of KAS Commodities Inc., Mr. Goodman is a director of MSG Commodities Inc. and both are managing members of Select Advisors L.L.C. and Kenmar Greenwich Holdings LLC. (c) Identification of Certain Significant Employees: None. (d) Family Relationships: Mrs. Esther Eckerling Goodman is married to Mr. Marc S. Goodman. (e) Business Experience: See Item 10(a) and (b) above. (f) Involvement in Certain Legal Proceedings: None. (g) Promoters and Control Persons: Not applicable. ITEM 11. EXECUTIVE COMPENSATION The Fund has no directors or executive officers. The business of the Fund is managed by Kenmar which is responsible for the administration of the business affairs of the Fund and receives the compensation described in Item 1 hereof. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS Reg. S-K Item 201(d) Securities Authorized for Issuance Under Equity Compensation Plans. Not applicable. Reg. S-K Item 403 (a) Security Ownership of Certain Beneficial Owners and Management: As of December 31, 2002, no person or "group" is known to the registrant to be the beneficial owner of more than five percent of the Units. (b) Security Ownership of Management: As of December 31, 2002, the following officers of Kenmar beneficially owned the following number of Units: Name of Beneficial Number of Units Percentage of ------------------ ---------------- ------------- Owner Owned Class ----- ----- ----- Marc S. Goodman 52.8321 Less than 1% Kenneth A. Shewer 50.2517 Less than 1% As of December 31, 2002, Kenmar has purchased and will maintain a 1% interest in the Fund in its capacity as managing owner. (c) Changes in Control: None. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS (a) Transactions with Management and Others: Kenmar acts as managing owner and commodity pool operator. Certain administrative services are provided by Derivatives Portfolio Management L.L.C. The Fund pays its own administrative expenses. (b) Certain Business Relationships: None. (c) Indebtedness of Management: The Fund is prohibited from making any loans, to management or otherwise. (d) Transactions with Promoters: Not Applicable. ITEM 14. CONTROLS AND PROCEDURES Kenmar Advisory Corp., the Managing Owner of the Fund, with the participation of the Managing Owner's Chief Executive Officer, President and Director, and Senior Vice President and Chief Financial Officer, has evaluated the effectiveness of the design and operation of its disclosure controls and procedures with respect to the Fund within 90 days of the filing date of this annual report, and, based on their evaluation, have concluded that these disclosure controls and procedures are effective. There were no significant changes in the Managing Owner's internal controls with respect to the Fund or in other factors applicable to the Fund that could significantly affect these controls subsequent to the date of their evaluation. PART IV ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K (a) The following documents are filed as part of this Form 10-K: 1. Independent Auditor's Report. . . . . . . . . . . . . . . . . . .F-1 Statements of Financial Condition as of December 31, 2002 and 2001 (Audited). . . . . . . . . . .F-2 Condensed Schedule of Investments as of December 31, 2002 (Audited) . . . . . . . . . . . . . . .F-3 Statements of Operations For the Years Ended December 31, 2002, 2001 and 2000 (Audited). . . . . . . . . . .F-4 Statements of Cash Flows For the Years Ended December 31, 2002, 2001 and 2000 (Audited). . . . . . . . . . .F-5 Statements of Changes in Unitholders' Capital (Net Asset Value) For the Years Ended December 31, 2002, 2001 and 2000 (Audited). . . . . . . . . . .F-6 Notes to Financial Statements (Audited) . . . . . . . . . F-7 - F-11 2. Exhibits: Exhibit Number Description of Document 3.1 Certificate of Formation of the Registrant. (Incorporated by reference to the Fund's Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996). 3.2 Declaration of Trust and Trust Agreement of the Registrant. (Incorporated by reference to the Fund's Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996). 3.3 Amended and Restated Declaration of Trust and Trust Agreement of the Registrant. (Incorporated by reference to the Fund's Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996). 10.1 Form of Advisory Agreement. (Incorporated by reference to the Fund's Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996). 10.2 Form of Customer Agreement between the Trust and the Commodity Brokers. (Incorporated by reference to the Fund's Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996). 10.3 Form of Escrow Agreement. (Incorporated by reference to the Fund's Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996). 10.4 Subscription Agreement and Power of Attorney. (Incorporated by reference to the Fund's Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996). 23.2 Consent of Arthur F. Bell, Jr. & Associates, L.L.C. (Included herein at page F-1). 99.1 Certification of Kenneth A. Shewer, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of The Sarbanes-Oxley Act of 2002. 99.2 Certification of Gary J. Yannazzo, Senior Vice President and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of The Sarbanes-Oxley Act of 2002. (b) Reports on Form 8-K: The Fund did not file any reports on Form 8-K during the fourth quarter of 2002. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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 31st day of March, 2003. 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 31st day of March, 2003. KENMAR GLOBAL TRUST By: Kenmar Advisory Corp., managing owner By: /s/ KENNETH A SHEWER ------------------------------------- Kenneth A. Shewer Chairman and Director (Principal Executive Officer) By: /s/ MARC S. GOODMAN ------------------------------------- Marc S. Goodman President and Director By: /s/ GARY J. YANNAZZO ------------------------------------- Gary J. Yannazzo Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer for the Fund) CERTIFICATION I, Kenneth A. Shewer, Chief Executive Officer of Kenmar Advisory Corp., the Managing Owner of Kenmar Global Trust, do hereby certify that: 1. I have reviewed this annual report on Form 10-K of Kenmar Global Trust; 2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report; 3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in paragraph (c) of Exchange Act Rule 15d-14) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the "Evaluation Date"); and c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this annual report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. March 31, 2003 By: /s/ KENNETH A. SHEWER ------------------------------------- Kenneth A. Shewer Chief Executive Officer CERTIFICATION I, Marc S. Goodman, President and Director of Kenmar Advisory Corp., the Managing Owner of Kenmar Global Trust, do hereby certify that: 1. I have reviewed this annual report on Form 10-K of Kenmar Global Trust; 2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report; 3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in paragraph (c) of Exchange Act Rule 15d-14) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the "Evaluation Date"); and c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this annual report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. March 31, 2003 By: /s/ MARC S. GOODMAN ------------------------------------- Marc S. Goodman President and Director CERTIFICATION I, Gary J. Yannazzo, Senior Vice President and Chief Financial Officer of Kenmar Advisory Corp., the Managing Owner of Kenmar Global Trust, do hereby certify that: 1. I have reviewed this annual report on Form 10-K of Kenmar Global Trust; 2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report; 3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in paragraph (c) of Exchange Act Rule 15d-14) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the "Evaluation Date"); and c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this annual report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. March 31, 2003 By: /s/ GARY J. YANNAZZO ------------------------------------- Gary J. Yannazzo Senior Vice President and Chief Financial Officer ARTHUR F. BELL, JR. & ASSOCIATES, L.L.C. Certified Public Accountants (410) 771-0001 FAX (410) 785-9784 Member: American Institute of Certified Public Accountants SEC Practice Section Suite 200 Maryland Association of Certified 201 International Circle Public Accountants Hunt Valley, Maryland 21030 INDEPENDENT AUDITOR'S REPORT ---------------------------- To the Unitholders Kenmar Global Trust We have audited the accompanying statements of financial condition of Kenmar Global Trust as of December 31, 2002 and 2001, including the December 31, 2002 condensed schedule of investments, and the related statements of operations, cash flows and changes in unitholders' capital (net asset value) for the years ended December 31, 2002, 2001 and 2000. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Kenmar Global Trust as of December 31, 2002 and 2001, and the results of its operations, cash flows and changes in its net asset values for the years ended December 31, 2002, 2001 and 2000, in conformity with accounting principles generally accepted in the United States of America. /s/ ARTHUR F. BELL, JR. & ASSOCIATES, L.L.C. Hunt Valley, Maryland February 8, 2003 F-1 KENMAR GLOBAL TRUST STATEMENTS OF FINANCIAL CONDITION December 31, 2002 and 2001 ------------ 2002 2001 ---- ---- ASSETS Equity in broker trading accounts Cash $10,076,868 $10,297,595 Unrealized gain on open contracts 1,074,472 442,946 ----------- ----------- Deposits with broker 11,151,340 10,740,541 Cash and cash equivalents 8,569,208 5,646,645 Unrealized gain on open forward contracts 3,326 3,375 ----------- ----------- Total assets $19,723,874 $16,390,561 =========== =========== LIABILITIES Accounts payable $ 37,706 $ 23,683 Commissions and other trading fees on open contracts 800 13,128 Managing Owner brokerage commissions 142,204 113,273 Advisor profit shares 60,105 36,403 Redemptions payable 85,655 78,695 Redemption charges payable to Managing Owner 3,189 0 ----------- ----------- Total liabilities 329,659 265,182 ----------- ----------- UNITHOLDERS' CAPITAL (Net Asset Value) Managing Owner - 2,041.4999 units outstanding at December 31, 2002 and 2001 226,137 196,966 Other Unitholders - 173,044.1212 and 165,093.4546 units outstanding at December 31, 2002 and 2001 19,168,078 15,928,413 ----------- ----------- Total unitholders' capital (Net Asset Value) 19,394,215 16,125,379 ----------- ----------- $19,723,874 $16,390,561 =========== =========== See accompanying notes. F-2 KENMAR GLOBAL TRUST CONDENSED SCHEDULE OF INVESTMENTS December 31, 2002 ------------ LONG FUTURES CONTRACTS ---------------------- No. of % of Net Contracts Description Value Asset Value --------- ----------- ----- ----------- 77 Agricultural $ 20,826 0.11 % 252 Currency 475,180 2.45 % 250 Energy (21,726) (0.11)% 680 Interest rate 442,573 2.28 % 120 Metals 5,203 0.03 % 4 Stock index 4,055 0.02 % 38 Other 1,006 0.00 % ---------- ------- Total long futures contracts $ 927,117 4.78 % ---------- ------- SHORT FUTURES CONTRACTS ----------------------- No. of % of Net Contracts Description Value Asset Value --------- ----------- ----- ----------- 155 Agricultural $ 33,743 0.17 % 48 Currency 68,346 0.35 % 50 Interest rate (11,809) (0.06)% 116 Metals (39,883) (0.20)% 163 Stock index 96,958 0.50 % ---------- ------- Total short futures contracts $ 147,355 0.76 % ---------- ------- Total futures contracts $1,074,472 5.54 % ========== ======= FORWARD CURRENCY CONTRACTS -------------------------- % of Net Description Value Asset Value ----------- ----- ----------- Short forward currency contracts $ 3,326 0.02 % ========== ======= See accompanying notes. F-3 KENMAR GLOBAL TRUST STATEMENTS OF OPERATIONS For the Years Ended December 31, 2002, 2001 and 2000 ------------ 2002 2001 2000 ---- ---- ---- INCOME Trading gains (losses) Realized $ 4,672,380 $ 2,479,061 $ (14,413) Change in unrealized 631,477 (584,140) 960,207 ----------- ----------- ----------- Gain from trading 5,303,857 1,894,921 945,794 Interest income 170,849 517,609 1,129,270 ----------- ----------- ----------- Total income 5,474,706 2,412,530 2,075,064 ----------- ----------- ----------- EXPENSES Brokerage commissions 184,293 239,616 312,560 Managing Owner brokerage commissions 1,647,208 1,566,968 1,911,158 Advisor profit shares 934,498 465,428 198,721 Operating expenses 139,531 99,383 132,875 ----------- ----------- ----------- Total expenses 2,905,530 2,371,395 2,555,314 ----------- ----------- ----------- NET INCOME (LOSS) $ 2,569,176 $ 41,135 $ (480,250) =========== =========== =========== NET INCOME (LOSS) PER UNIT (based on weighted average number of units outstanding during the year) $ 15.20 $ 0.24 $ (2.29) =========== =========== =========== INCREASE (DECREASE) IN NET ASSET VALUE PER UNIT $ 14.29 $ (0.53) $ (2.57) =========== =========== =========== See accompanying notes. F-4 KENMAR GLOBAL TRUST STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2002, 2001 and 2000 ------------ 2002 2001 2000 ---- ---- ---- Cash flows from (for) operating activities Net income (loss) $ 2,569,176 $ 41,135 $ (480,250) Adjustments to reconcile net income (loss) to net cash from (for) operating activities: Net change in unrealized (631,477) 584,140 (960,207) Increase (decrease) in accounts payable and accrued expenses 54,328 (100,111) 31,583 ----------- ----------- ----------- Net cash from (for) operating activities 1,992,027 525,164 (1,408,874) ----------- ----------- ----------- Cash flows from (for) financing activities Additions of units 3,163,416 2,242,654 3,526,802 Offering costs paid (109,630) (124,454) (202,400) Redemption of units (2,343,977) (4,010,064) (11,361,325) ----------- ----------- ----------- Net cash from (for) financing activities 709,809 (1,891,864) (8,036,923) ----------- ----------- ----------- Net increase (decrease) in cash and cash equivalents 2,701,836 (1,366,700) (9,445,797) Cash and cash equivalents Beginning of year 15,944,240 17,310,940 26,756,737 ----------- ----------- ----------- End of year $18,646,076 $15,944,240 $17,310,940 =========== =========== =========== End of year cash and cash equivalents consists of: Cash in broker trading accounts $10,076,868 $10,297,595 $10,646,538 Cash and cash equivalents 8,569,208 5,646,645 6,664,402 ----------- ----------- ----------- Total end of year cash and cash equivalents $18,646,076 $15,944,240 $17,310,940 =========== =========== =========== See accompanying notes. F-5 KENMAR GLOBAL TRUST STATEMENTS OF CHANGES IN UNITHOLDERS' CAPITAL (NET ASSET VALUE) For the Years Ended December 31, 2002, 2001 and 2000 ------------ Unitholders' Capital Total ------------------------------------- Number of Managing Other Units Owner Unitholders Total ------------ --------- ----------- ----------- Balances at December 31, 1999 228,738.3088 $ 280,146 $22,497,207 $22,777,353 Net (loss) for the year ended December 31, 2000 (9,719) (470,531) (480,250) Additions 36,698.8104 0 3,526,802 3,526,802 Redemptions (82,643.4326) (73,085) (7,816,356) (7,889,441) Offering costs (2,329) (200,071) (202,400) ------------ --------- ----------- ----------- Balances at December 31, 2000 182,793.6866 195,013 17,537,051 17,732,064 Net income for the year ended December 31, 2001 480 40,655 41,135 Additions 23,090.2782 3,000 2,239,654 2,242,654 Redemptions (38,749.0103) 0 (3,766,020) (3,766,020) Offering costs (1,527) (122,927) (124,454) ------------ --------- ----------- ----------- Balances at December 31, 2001 167,134.9545 196,966 15,928,413 16,125,379 Net income for the year ended December 31, 2002 30,486 2,538,690 2,569,176 Additions 31,247.2738 0 3,163,416 3,163,416 Redemptions (23,296.6072) 0 (2,354,126) (2,354,126) Offering costs (1,315) (108,315) (109,630) ------------ --------- ----------- ----------- Balances at December 31, 2002 175,085.6211 $ 226,137 $19,168,078 $19,394,215 ============ ========= =========== =========== Net Asset Value Per Unit ----------------------------------- December 31, 2002 2001 2000 ---- ---- ---- $110.77 $ 96.48 $ 97.01 ======= ======= ======= See accompanying notes. F-6 KENMAR GLOBAL TRUST NOTES TO FINANCIAL STATEMENTS ------------ 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. 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 (brokers) and interbank market makers through which the Fund trades. C. Method of Reporting The Fund's financial statements are presented in accordance with accounting principles generally accepted in the United States of America, 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 trade 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 is reported in the statement of operations. Brokerage commissions paid directly to brokers, reflected as "brokerage commissions" in the statement of operations, include exchange and 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 applicable state information tax returns and reports to the Unitholders their allocable shares of the Fund's income, expenses and trading gains or losses. F-7 KENMAR GLOBAL TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) ------------ Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ----------------------------------------------------------- F. Offering Costs Offering costs are borne by the Fund and are charged directly to unitholders' capital as incurred. 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 at least 1% of the total capital accounts of the Fund. The Managing Owner has agreed to maintain a net worth of not less than $1,000,000. The Managing Owner is paid monthly brokerage commissions ("Managing Owner 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 commodity trading advisors. Managing Owner brokerage commissions are reduced by brokerage commissions and other trading fees paid directly to brokers by the Fund. For the years ended December 31, 2002, 2001 and 2000, brokerage commissions equated to an approximate round-turn equivalent rate of $64, $60 and $65, respectively. Such approximate round-turn equivalent brokerage commission rate will vary depending on the frequency of trading by the Fund's commodity trading advisors. 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 2002, 2001 and 2000. F-8 KENMAR GLOBAL TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) ------------ 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 respective 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. 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 $4,872, $9,407 and $51,848 during 2002, 2001 and 2000, 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. F-9 KENMAR GLOBAL TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) ------------ Note 6. TRADING ACTIVITIES AND RELATED RISKS (CONTINUED) ------------------------------------------------ Purchases and sales of futures and options on futures contracts require margin deposits with the brokers. Additional deposits may be necessary for any loss of contract value. The Commodity Exchange Act requires a broker to segregate all customer transactions and assets from such broker's proprietary activities. A customer's cash and other property (for example, U.S. Treasury bills) deposited with a broker are considered commingled with all other customer funds subject to the broker's segregation requirements. In the event of a broker'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 notional contract 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, although there can be no assurance that it will, in fact, succeed in doing so. 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. F-10 KENMAR GLOBAL TRUST NOTES TO FINANCIAL STATEMENTS (CONTINUED) ------------ Note 7. FINANCIAL HIGHLIGHTS -------------------- The following information presents per unit operating performance data and other supplemental financial data for the years ended December 31, 2002 and 2001. This information has been derived from information presented in the financial statements. 2002 2001 ---- ---- Per Unit Performance (for a unit outstanding throughout the entire year) ---------------------------------- Net asset value per unit at beginning of year $ 96.48 $ 97.01 --------- --------- Income from operations: Net investment (loss) (1), (3) (15.09) (9.54) Net realized and change in unrealized gain from trading (2), (3) 30.03 9.75 --------- --------- Total income from operations 14.94 0.21 --------- --------- Offering costs (3) (0.65) (0.74) --------- --------- Net asset value per unit at end of year $ 110.77 $ 96.48 ========= ========= Total Return 14.81 % (0.55)% ======= ======= Supplemental Data Ratios to average net asset value: Expenses prior to advisor profit shares (4) (10.73)% (10.16)% Advisor profit shares (5.61)% (2.84)% ------- ------- Total expenses (1) (16.34)% (13.00)% ======= ======= Net investment (loss) (4) (9.71)% (7.00)% ======= ======= Total returns are calculated based on the change in value of a unit during the year. An individual unitholder's total returns and ratios may vary from the above total returns and ratios based on the timing of additions and redemptions. --------------- (1) Excludes brokerage commissions and other trading fees paid directly to the brokers. (2) Includes brokerage commissions and other trading fees paid directly to the brokers. (3) The net investment (loss) per unit and offering costs per unit are calculated by dividing the net investment (loss) and offering costs by the average number of units outstanding during the year. The net realized and change in unrealized gain from trading is a balancing amount necessary to reconcile the change in net asset value per unit with the other per unit information. (4) Excludes brokerage commissions and other trading fees paid directly to the brokers and advisor profit shares. F-11 EXHIBIT INDEX Exhibit Number Description of Document Page Number 99.1 Certification of Kenneth A. Shewer, E-2 Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of The Sarbanes-Oxley Act of 2002 99.2 Certification of Gary J. Yannazzo, E-3 Senior Vice President and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of The Sarbanes-Oxley Act of 2002 Exhibit 99.1 Certification of Kenneth A. Shewer, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of The Sarbanes-Oxley Act of 2002 I, Kenneth A. Shewer, the Chief Executive Officer of Kenmar Advisory Corp., as Managing Owner of Kenmar Global Trust, certify that (i) the Form 10-K for the fiscal year ended December 31, 2002 of Kenmar Global Trust fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in the Form 10-K for the fiscal year ended December 31, 2002 of Kenmar Global Trust fairly presents, in all material respects, the financial condition and results of operations of Kenmar Global Trust. By: /s/ KENNETH A. SHEWER ------------------------------------- Kenneth A. Shewer Chief Executive Officer March 31, 2003 Exhibit 99.2 Certification of Gary J. Yannazzo, Senior Vice President and, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of The Sarbanes-Oxley Act of 2002 I, Gary J. Yannazzo, the Senior Vice President and Chief Financial Officer of Kenmar Advisory Corp., as Managing Owner of Kenmar Global Trust, certify that (i) the Form 10-K for the fiscal year ended December 31, 2002 of Kenmar Global Trust fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in the Form 10-K for the fiscal year ended December 31, 2002 of Kenmar Global Trust fairly presents, in all material respects, the financial condition and results of operations of Kenmar Global Trust. By: /s/ GARY J. YANNAZZO ------------------------------------- Gary J. Yannazzo Senior Vice President and Chief Financial Officer March 31, 2003