EachTable Trading Advisor selected by the Managing Owner to manage the assets of the Trust has a performance history through the date of its selection by the Managing Owner. You must consider, however, the uncertain significance of past performance, and you should not rely on the Trading Advisors’ or the Managing Owner’s records to date for predictive purposes. You should not assume that any Trading Advisor’s future trading decisions will create profit, avoid substantial losses or result in performance for the Trust that is comparable to that Trading Advisor’s or to the Managing Owner’s past performance. In fact, as a significant amount of academic study has shown, futures funds more frequently than not underperform the past performance records included in their prospectuses. Contents

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

x	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2008~~ 2009

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from				to

Commission file number 333-~~08869~~ 9898

KENMAR GLOBAL TRUST

(Exact name of Registrant as specified in its charter)

Delaware		06-6429854
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
State or other jurisdiction of incorporation or organization		(I.R.S. Employer Identification No.)
900 King Street, Suite 100, Rye Brook, New York		10573
(Address of principal executive offices)		(Zip Code)

900 King Street, Suite 100, Rye Brook, New York		10573
(Address of principal executive offices)		(Zip Code)


Registrant’s telephone number, including area code:		(914) 307-7000

Securities registered pursuant to Section 12(b) of the Act:

None

Securities registered pursuant to Section 12(g) of the Act:

Limited Interests

(Title of class)

Indicate by check mark if Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ~~Yes ¨ No x~~

~~Indicate by check mark if Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.~~ Yes ¨ No x

Indicate by check mark ~~whether~~if Registrant ~~(1) has~~is ~~filed~~not ~~all reports~~ required to befile ~~filed~~reports bypursuant to Section 13 or Section 15(d) of the ~~Securities Exchange~~ Act ~~of 1934 during the preceding 12 months (or for such shorter period that 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-KYes ¨ No x

Indicate by check mark whether 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 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 whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ¨ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “accelerated filer and large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer ¨		Accelerated filer ¨
Non-accelerated filer x		Smaller Reporting Company ¨

Indicate by check mark whether Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ~~Yes ¨ No x~~

~~The~~Yes ¨ No x ~~value of Limited Interests in the Registrant as of June 30, 2008 is $5,885,556.~~

~~Table~~The value of ~~Contents~~Limited Interests in the Registrant as of June 30, 2009 is $5,432,525.

~~DOCUMENTS~~As ~~INCORPORATED~~of BYFebruary 28, ~~REFERENCE~~2010 there were 36,595.7965 Limited Interests outstanding.

Registrant’s Annual Report to Unitholders for the year ended December 31, 2008 is incorporated by reference into Parts II and IV of this Annual Report on Form 10-K

[Remainder of page intentionally left blank]

KENMAR GLOBAL TRUST

TABLE OF CONTENTS

		PAGE
PART I
Item 1.	Business	43
Item 1A.	Risk Factors	5
Item 1B.	Unresolved Staff Comments	1012
Item 2.	Properties	1012
Item 3.	Legal Proceedings	1112
Item 4.	Submission of Matters to a Vote of Security Holders	1112
PART II
Item 5.	Market for the Registrant’s Common Equity, Related Stockholder ~~Matters~~Mattersand ~~and~~ Issuer Purchases of Equity Securities	1113
Item 6.	Selected Financial Data	1113
Item 7.	Management’s Discussion and Analysis of Financial ~~Condition~~Conditionand ~~and~~ Results of ~~Operation~~Operations	1113
Item 8.	Financial Statements and Supplementary Data	22
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	22
Item 8.	Financial Statements and Supplementary Data	26
Item 9A.	Controls and Procedures	22
Item 9.	Changes in and Disagreements with Accountants on Accountingand Financial Disclosure	27
Item 9B.	Other Information	23
Item 9AT.	Controls and Procedures	27
Item 9B.	Other Information	28
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	2328
Item 11.	Executive Compensation	2633
Item 12.	Security Ownership of Certain Beneficial Owners and ~~Management~~Managementand ~~and~~ Related Stockholder Matters	2733
Item 13.	Certain Relationships and Related Transactions, and Director Independence	2733
Item 14.	Principal Accounting Fees and Services	2733
PART IV
Item 15.	Exhibits, Financial ~~Statement~~Statements and Schedules	2834
SIGNATURES		6675

PART I

Item 1.

Business

General

Kenmar Global Trust (“Registrant” or the “Trust”), a Delaware business trust, was organized under the Delaware Statutory Trust Act on July 17, 1996. Registrant’s trustee is Wilmington Trust Company. Registrant will terminate on December 31, 2026 unless terminated sooner as provided in the Fifth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). ~~The~~ Registrant ~~was formed to engage in the speculative trading of commodity futures and forward contracts. The Registrant~~’s fiscal year for book and tax purposes ends on December 31.

~~The~~ Registrant is engaged solely in the business of commodity futures, forward and ~~forward~~option trading; therefore, presentation of industry segment information is not applicable.

Managing Owner and its Affiliates

Effective May 5, 2009, Preferred Investment Solutions Corp. changed its name to Kenmar Preferred Investments Corp. (“Preferred” or the “Managing Owner”). isPreferred ~~the~~or ~~managing~~Managing ~~owner~~Owner ofrefers ~~Registrant.~~to ~~Effective~~either ~~December 1,~~Preferred ~~2008,~~Investment inSolutions ~~accordance~~Corp. ~~with~~or ~~the~~Kenmar ~~Fifth~~Preferred ~~Amended~~Investments ~~and~~Corp., ~~Restated~~depending ~~Declaration of~~on ~~Trust~~the ~~and~~applicable ~~Trust~~period ~~Agreement,~~discussed. As the Registrant’s Managing Owner, isPreferred noconducts ~~longer~~and ~~required~~manages ~~to maintain a capital account equal to 1% of~~ the ~~total~~business ~~capital accounts~~ of the Registrant ~~or a net worth of at least $1,000,000~~.

~~On September~~Effective December 241, ~~2007~~2008, ~~the~~in ~~Registrant~~accordance ~~and~~with the ~~Managing~~Trust ~~Owner entered into a Purchase~~ Agreement ~~(the “Purchase Agreement”)~~, ~~effective as of August 10, 2007, whereby~~ the Managing Owner ~~acquired~~is ~~all~~no ~~the~~longer ~~Registrant’s~~required ~~rights, title and interest~~ to ~~the~~maintain Investment Advisory Agreement (“Advisory Agreement”) dated February 11, 2004, by and between the Registrant and Sentinel Management Group, Inc. (“Sentinel”), an SEC-registered investment adviser and a ~~CFTC-registered~~capital ~~futures commission merchant, and to the Registrant’s right, title and interest to the Registrant’s deposits in an~~ account ~~(the~~equal ~~“Account”) managed by Sentinel, including the Registrant’s rights~~ to ~~the funds in the Account, including all claims related thereto against Sentinel (the “Asset”). The purchase price for the Asset was $~~1~~,685,193~~% ~~(the “Purchase Price”), which represented the recorded value~~ of the ~~Registrant’s~~total ~~deposit~~capital inaccounts ~~the~~of ~~Account as reported to~~ the Registrant. byAs ~~Sentinel at the close of business on August 10~~such, ~~2007,~~ the ~~business day immediately preceding the day on which withdrawals from the Account were suspended by Sentinel. The payment of the Purchase Price by the~~ Managing Owner toredeemed ~~the~~its ~~Registrant was paid by a secured Demand Promissory Note (the “Note”) made~~entire byinterest ~~the Managing Owner~~ in ~~favor of~~ the Registrant. The interest rate on the Note is the Wall Street Journal Prime Rate (3.25% at December 31, 2008) and resets monthly. Interest is payable monthly no later than the first business day of the subsequent month. The Note was secured by a Security Agreement whereby the Managing Owner granted the Registrant a first priority interest in ~~the Asset to secure payment of the Note~~2009.

On September 24, 2007, the Registrant and the Managing Owner entered into a Purchase Agreement (the “Purchase Agreement”), effective as of August 10, 2007, whereby the Managing Owner acquired all the Registrant’s rights, title and interest to the Investment Advisory Agreement (“Advisory Agreement”) dated February 11, 2004, by and between the Registrant and Sentinel Management Group, Inc. (“Sentinel”), an SEC-registered investment adviser and a CFTC-registered futures commission merchant, and to the Registrant’s right, title and interest to the Registrant’s deposits in an account (the “Account”) managed by Sentinel, including the Registrant’s rights to the funds in the Account, including all claims related thereto against Sentinel (the “Asset”). The purchase price for the Asset was $1,685,193 (the “Purchase Price”), which represented the recorded value of the Registrant’s deposit in the Account as reported to the Registrant by Sentinel at the close of business on August 10, 2007, the business day immediately preceding the day on which withdrawals from the Account were suspended by Sentinel. The payment of the Purchase Price by the Managing Owner to the Registrant was paid by a secured Demand Promissory Note (the “Note”) made by the Managing Owner in favor of the Registrant. The interest rate on the Note is the Wall Street Journal Prime Rate (3.25% at December 31, 2009) and resets monthly. Interest is payable monthly no later than the first business day of the subsequent month. The Note was secured by a Security Agreement whereby the Managing Owner granted the Registrant a first priority interest in the Asset to secure payment of the Note.

On June 23, 2008, the Managing Owner sold the Asset to an unrelated third party and applied the proceeds of the sale of the Asset to pay down a portion of the Note. As part of that transaction, the Registrant and the Managing Owner entered into a Release and Setoff Agreement whereby (i) the Registrant released its security interest in the Asset and any appreciation and (ii) the Managing Owner agreed that in the event the Registrant demands payment of all or a part of the Note and the Managing Owner fails to pay such amount, the Registrant shall have the right to set off such amount demanded under the Note against any and all amounts due and owing then and in the future to the Managing Owner by the Registrant under the Registrant’s Trust Agreement, including, without limitation, the incentive fee (as defined in the Trust Agreement) and the net portion of any brokerage commissions after payment of related expenses until all amounts outstanding under the Note are paid in full and all other obligations have been paid or discharged.

Through December 31, ~~2008~~2009, the Managing Owner paid the Registrant principal of $1,100,000 on the Note, leaving $585,193 of note receivable from the Managing Owner which is reflected on the Registrant’s December 31, ~~2008~~2009 statement of financial condition. Interest receivable from the Managing Owner on the ~~note~~Note as of December 31, ~~2008~~2009 was $1,~~833~~638.

Any portion of the principal amount, which is not demanded by the Registrant prior to August 31, 2010, will be due and payable by the Managing Owner, with all accrued and unpaid interest thereon, on August 31, 2010, unless the Registrant and the Managing Owner agree to an extension of the Note.

No default has existed or currently exists on the note receivable from the Managing Owner.

The Trading Advisor and the Trading Vehicle

AsFor ofthe year ended December 31, ~~2008~~2009, Registrant’s net assets ~~are~~were managed (either directly or indirectly) by Transtrend, B.V. (“Transtrend”) and Winton Capital Management Limited (“Winton”).

Pursuant to an advisory agreement (the “Transtrend Advisory Agreement”) among Registrant, the Managing Owner and Transtrend, ~~a portion of~~ Registrant’s net assets are managed by Transtrend pursuant to its Diversified Trend Program.

4Effective January 1, 2007, Registrant became a member of and allocated a portion of its net assets to KMP Futures Fund I LLC (formerly known as WCM Pool LLC) (the “Trading Vehicle”), a Delaware limited liability company, and received a voting membership interest in the Trading Vehicle and became party to the Trading Vehicle’s Organization Agreement. The Trading Vehicle was formed to function as an aggregate trading vehicle for its Unitholders. Preferred has been delegated administrative authority over the operations of the Trading Vehicle. The Trading Vehicle engages in the speculative trading of futures, forward and option contracts. Effective September 30, 2009, Registrant fully redeemed from the Trading Vehicle. The financial statements of the Trading Vehicle, including the condensed schedule of investments, are included in Section II of Registrant’s financial statements, and should be read in conjunction with Registrant’s financial statements.

~~Table~~The Trading Vehicle has entered into an advisory agreement (the “Trading Vehicle Advisory Agreement”) with Winton, whereby Winton makes the trading decisions for the Trading Vehicle and, in turn, Registrant, pursuant to Winton’s Diversified Program. The Advisory Agreement may be terminated for various reasons, including at the discretion of ~~Contents~~the Trading Vehicle. Registrant has allocated 0.00% of its net asset value to the Trading Vehicle as of December 31, 2009 after fully redeeming from the Trading Vehicle effective September 30, 2009. Registrant, through its prior investment in the Trading Vehicle, accrued and paid a monthly management fee equal to 0.16667% (2% annually) of the assets allocated to the Trading Advisor. Registrant, through its prior investment in the Trading Vehicle, paid the Trading Advisor an incentive fee of 20% of New High Net Trading Profits (as defined in the Advisory Agreement) generated by the Trading Vehicle. Incentive fees accrued monthly and were paid quarterly in arrears.

~~Effective~~The ~~January 1,~~term ~~2007~~“Trading Advisor”, ~~Registrant~~as ~~became~~used aherein, ~~member~~refers ofeither ~~and~~to ~~allocated~~Transtrend aor ~~portion~~Winton, ofdepending ~~its~~upon ~~net~~the ~~assets~~applicable toperiod ~~WCM~~or ~~Pool~~context ~~LLC~~discussed. The ~~(the~~term “Trading ~~Vehicle~~Advisory Agreement”), aas ~~Delaware~~used ~~limited liability company~~herein, ~~and~~refers ~~received a voting membership interest in the Trading Vehicle and became party~~ to the ~~Trading~~Transtrend ~~Vehicle’s~~Advisory ~~Organization~~ Agreement. ~~The~~or Trading Vehicle ~~was~~Advisory ~~formed~~Agreement, ~~to function~~depending asupon anthe ~~aggregate~~applicable ~~trading~~period ~~vehicle~~or ~~for~~context ~~its members~~discussed. ~~Registrant,~~Since ~~Futures Strategic Trust and Diversified Futures Trust I are~~ the Registrant ~~sole~~fully ~~members~~redeemed offrom the Trading Vehicle as ofdetailed ~~December 31~~above, ~~2008.~~all ~~Preferred~~references isto ~~the~~Registrant’s ~~managing~~investment ~~owner~~in ~~of each of these Trading Vehicle members and has been delegated administrative authority over~~ the ~~operations of the~~ Trading Vehicle. ~~The~~are ~~Trading~~through ~~Vehicle~~September 30, ~~engages~~2009, in the ~~speculative~~date ~~trading~~ of ~~futures and forwards contracts~~redemption.

The Trading Vehicle has entered into an advisory agreement (the “Trading Vehicle Advisory Agreement”) with Winton, whereby Winton makes the trading decisions for the Trading Vehicle and, in turn, Registrant, pursuant to Winton’s Diversified Program. The Advisory Agreement may be terminated for various reasons, including at the discretion of the Trading Vehicle. The Registrant has allocated 32.32% of the proceeds from the initial and continuous offering of Registrant to the Trading Advisor. Registrant has allocated 10.43% of its net asset value to the Trading Vehicle as of December 31, 2008. Registrant, through its investment in the Trading Vehicle, accrues and pays a monthly management fee equal to 0.16667% (2% annually) of the assets allocated to the Trading Advisor. Registrant, through its investment in the Trading Vehicle, pays the Trading Advisor an incentive fee of 20% of New High Net Trading Profits (as defined in the Advisory Agreement) generated by the Trading Vehicle. Incentive fees will accrue monthly and be paid quarterly in arrears.

Prior to January 1, 2007, pursuant to an advisory agreement (the “Graham Advisory Agreement”) among Registrant, the Managing Owner and Graham Capital Management, L.P. (“Graham”), the portion of Registrant’s net assets contributed to the Trading Vehicle were formerly managed by Graham Capital Management, L.P. (“Graham”) pursuant to its K4 Program at 150% Leverage. Registrant terminated the Graham Advisory Agreement effective December 31, 2006.

The term “Trading Advisor”, as used herein, refers either to Transtrend, Winton or Graham depending upon the applicable period discussed. The term “Trading Advisory Agreement”, as used herein, refers to the Transtrend Advisory Agreement, Trading Vehicle Advisory Agreement or Graham Advisory Agreement depending upon the applicable period discussed.

Competition

The Managing Owner and its affiliates have formed, and may continue to form, various entities to engage in the speculative trading of futures, forward and ~~forward~~option contracts that have certain of the same investment policies as Registrant.

Registrant does not currently, and does not intend in the future to, solicit the sale of additional Interests. As such, Registrant does not compete with other entities to attract new fund participants. However, to the extent that a Trading Advisor recommends similar or identical trades to Registrant and other accounts that it manages, Registrant may compete with those accounts, as well as with other market participants, for the execution of the same or similar trades.

Employees

Registrant has no employees. Management and administrative services for Registrant are performed by the Managing Owner or third parties pursuant to the Trust Agreement, as further discussed in Notes 3 and 4 of the Registrant’s ~~2008~~financial statements included in its annual report for the year ended December 31, 2009 (“Registrant’s 2009 Annual Report”), which is filed as an exhibit herewith.

~~Item~~Financial ~~1A.~~Information ~~Risk~~about ~~Factors~~Segments

~~THE~~Registrant’s business ~~RISKS~~constitutes ~~YOU~~only ~~FACE~~one segment for financial reporting purposes. Registrant does not engage in the production or sale of any goods or services. The objective of Registrant’s business is appreciation of its assets through speculative trading in such commodity interests. Financial information about Registrant’s business, as of December 31, 2009, is set forth under Items 6, 7, and 8 herein.

~~You~~4 ~~Should Not Rely on Past Performance in Deciding Whether to Buy Units~~

~~Price~~Financial ~~Volatility~~Information ~~May~~about ~~Possibly~~Geographic ~~Cause~~Areas ~~the Total Loss of Your Investment~~

~~Futures~~Although ~~and~~Registrant ~~forward~~trades ~~contracts~~in ~~have~~the aglobal ~~high~~futures, ~~degree~~forward ~~of price variability~~ and ~~are~~option ~~subject to occasional rapid and substantial changes. Consequently~~markets, ~~you~~it ~~could~~does ~~lose~~not ~~all~~have oroperations ~~substantially~~outside ~~all~~ of ~~your investment in~~ the ~~Trust~~ United States.

ITEM 1A.

RISK FACTORS

(1)

You Should Not Rely on Past Performance

The commodity trading advisor selected by the Managing Owner to manage the assets of Registrant has a performance history through the date of its selection. You must consider, however, the uncertain significance of past performance, and you should not rely on the Trading Advisor’s or the Managing Owner’s performance record to date for predictive purposes. You should not assume that the Trading Advisor’s future trading decisions will create profit, avoid substantial losses or result in performance for Registrant that is comparable to the Trading Advisor’s or to the Managing Owner’s past performance. In fact, as a significant amount of academic study has shown, futures funds more frequently than not under-perform the past performance records.

Because you and other investors will acquire and redeem Interests at different times, you may experience a loss on your Interest even though Registrant as a whole is profitable and even though other investors in Registrant experience a profit. The past performance of Registrant may not be representative of your investment experience in it.

Registrant has a limited operating history upon which to evaluate your investment. Although past performance is not necessarily indicative of future results, if Registrant had a material amount of performance history, such performance history might provide you with more information on which to evaluate an investment in Registrant. Because Registrant has no material performance history, you will have to make your decision to invest in Registrant without such information.

(2)

Price Volatility May Possibly Cause the Total Loss of Your Investment

Futures and forward contracts have a high degree of price variability and are subject to occasional rapid and substantial changes. Consequently, you could lose all or substantially all of your investment in Registrant.

(3)

Speculative and Volatile Markets Combined With Highly Leveraged Trading May Cause Registrant to Incur Substantial Losses

The markets in which Registrant trades are speculative, highly leveraged and involve a high degree of risk. The Trading Advisor’s trading considered individually involves a significant risk of incurring large losses, and there can be no assurance that Registrant will not incur such losses.

Futures and forward prices are volatile. Volatility increases risk, particularly when trading with leverage. Trading on a highly leveraged basis, even in stable markets involves risk; doing so in volatile markets necessarily involves a substantial risk of sudden, significant losses. Due to such leverage, even a small movement in price could cause large losses for Registrant. Market volatility will increase the potential for large losses. Market volatility and leverage mean that Registrant could incur substantial losses, potentially impairing its equity base and ability to achieve its long-term profit objectives even if favorable market conditions subsequently develop.

In addition to the leveraged trading described above, the Managing Owner has the ability to further increase the leverage of Registrant by allocating notional equity to the Trading Advisor (in a maximum amount of up to 20% of Net Asset Value), which would then permit the Trading Advisor to trade the account of Registrant as if more equity were committed to such accounts than is, in fact, the case.

(4)

High Leverage Embodied in Futures Trading May Exacerbate Losses

There is no limit on the amount of leverage that Registrant may use or that the Trading Advisor may use for Registrant pursuant to the Diversified Program. The low margin deposits normally required in futures trading (typically between 2% and 15% of the value of the contract purchased or sold) permit an extremely high degree of leverage. Accordingly, a relatively small price movement in a contract may result in immediate and substantial losses to the investor. For example, if at the time of purchase 10% of the price of a futures contract is deposited as margin, a 10% decrease in the price of the contract would, if the contract is then closed out, result in a total loss of the margin deposit before any deduction for brokerage commissions. A decrease of more than 10% would result in a loss of more than the total margin deposit and trigger a margin call. Thus, like other leveraged investments, any trade may result in losses in excess of the amount invested.

~~Speculative~~Futures margin differs in important ways from the term as used in the securities industry. Futures margin represents a good faith deposit made by both the buyer and ~~Volatile~~seller ~~Markets~~of ~~Combined~~the ~~With~~futures ~~Highly~~contract ~~Leveraged~~that ~~Trading~~they ~~May~~will ~~Cause~~perform as required by the ~~Trust~~terms of the contract. In contrast, stock margin represents a borrowing from the broker to ~~Incur~~enable ~~Substantial~~the buyer to pay the full price of his purchase on the settlement date. This borrowing necessitates the payment of interest at a rate that may rise if credit becomes tight or may compel the borrower to sell his or its investment ~~Losses~~prematurely if the lender experiences a financial crisis and can no longer extend credit. Neither of these risks occurs with futures margin which is typically not borrowed.

~~The~~(5) ~~markets~~Trading in ~~which~~Options the Trust trades are speculative, highly leveraged and involve a high degree of risk. Each Trading Advisor’s trading considered individually involves a significant risk of incurring large losses, and there can be no assurance that the Trust will not incur such losses. Futures and forward prices are volatile. Volatility increases risk, particularly when trading with leverage. Trading on a highly leveraged basis, as does the Trust, even in stable markets involves risk; doing so in volatile markets necessarily involves a substantial risk of sudden, significant losses. Due to such leverage, even a small movement in price could cause large losses for the Trust. Market volatility will increase the potential for large losses. Market volatility and leverage mean that the Trust could incur substantial losses, potentially impairing its equity base and ability to achieve its long-term profit objectives even if favorable market conditions subsequently develop. Futures

InAlthough ~~addition~~successful tooptions trading requires many of the ~~leveraged~~same ~~trading described~~skills ~~above~~required for successful futures trading, the ~~Managing~~risks ~~Owner~~involved ~~has~~may be somewhat different. Options trading may be restricted in the ~~ability~~event tothat ~~further~~trading ~~increase~~in the ~~leverage~~underlying offutures ~~Registrant~~contract bybecomes ~~allocating~~restricted, ~~notional~~and ~~equity~~options totrading may itself be illiquid at times, irrespective of the ~~Trading~~condition ~~Advisor~~of (the market in athe ~~maximum~~underlying ~~amount~~future, ofmaking upit difficult to ~~20%~~offset (i.e., ofliquidate) ~~net~~an ~~asset~~option ~~value)~~position. In addition, ~~which~~the ~~would~~purchaser ~~then~~of ~~permit~~an ~~the~~option ~~Trading Advisor~~is subject to ~~trade~~ the ~~account~~risk of ~~Registrant~~losing ashis ifentire ~~more~~premium. ~~equity~~An ~~were~~option ~~committed~~writer to(or ~~such~~seller ~~accounts~~of ~~than~~the option) is, insubject ~~fact,~~to ~~the~~a ~~case.~~potentially ~~Although~~unlimited ~~the~~risk ~~Managing~~if ~~Owner~~he ~~has~~does not own the underlying ~~option~~future toat ~~allocate~~the ~~additional~~time ~~notional~~he ~~equity~~sells toa ~~the~~call ~~Trading~~option ~~Advisor,~~and must purchase the ~~Managing~~future ~~Owner~~in ~~has no~~a ~~current~~rising ~~plans~~market toif dothe sooption is exercised.

~~Fees~~(6) ~~and~~Because ~~Commissions~~Registrant ~~are~~Does ~~Charged~~Not ~~Regardless~~Acquire ofAny ~~Profitability~~Asset ~~and~~with ~~May~~Intrinsic ~~Result~~Value, inthe ~~Depletion~~Positive Performance of ~~Trust~~Your ~~Assets~~Investment Is Wholly Dependent Upon an Equal and Offsetting Loss

~~The~~Futures ~~Trust is subject to the fees~~ and ~~expenses~~forward ~~which~~trading ~~are~~is ~~payable~~a ~~irrespective~~risk oftransfer ~~profitability~~economic inactivity. For ~~addition~~every togain ~~performance~~there ~~fees~~is ~~which,~~an ~~are~~equal ~~payable based on the profitability of the Trust,~~ and, asoffsetting aloss ~~multi-advisor~~rather ~~fund,~~than ~~upon~~an ~~each~~opportunity ~~Trading~~to ~~Advisor’s~~participate ~~performance. Consequently, the expenses of the Trust could,~~ over time, ~~result~~ in ~~significant~~general ~~losses~~economic ~~to your investment therein~~growth. ~~Included~~Unlike inmost ~~these~~alternative ~~charges are brokerage fees and operating expenses. On Registrant’s forward trading~~investments, ~~“bid-ask”~~an ~~spreads~~investment ~~are~~in ~~incorporated into the pricing of~~ Registrant’s ~~forward~~does ~~contracts~~not byinvolve ~~its~~acquiring ~~counterparties~~any inasset ~~addition~~with ~~to the brokerage fees paid by~~intrinsic ~~Registrant~~value. ItOverall isstock ~~not~~and ~~possible~~bond toprices ~~quantify~~could ~~the~~rise ~~“bid-ask”~~significantly ~~spreads~~and ~~paid by Registrant because Registrant cannot determine~~ the ~~profit~~economy ~~its~~as ~~counterparty~~a iswhole ~~making~~prospers onwhile ~~the~~Registrant ~~forward~~ trades ~~into which it enters~~unprofitably. ~~An investor may never achieve profits.~~

(7) Market Conditions May Impair Profitability

The trading ~~systems~~system used by ~~certain~~the Trading ~~Advisors~~Advisor ~~are~~is a technical, trend-following ~~methods~~method. The profitability of trading under ~~this~~these ~~system~~systems depends on, among other things, the occurrence of significant price trends, which are sustained movements, up or down, in futures and forward prices. Such trends may not develop; there have been periods in the past without price trends. The likelihood of the Interests being profitable could be materially diminished during periods when events external to the markets themselves have an important impact on prices. During such periods, the Trading Advisor’s historic price analysis could establish positions on the wrong side of the price movements caused by such events.

~~Discretionary~~(8) Trading ~~Strategies~~is ~~May~~Not ~~Incur Substantial Losses~~ Transparent

~~Discretionary~~The ~~traders,~~trading ~~while~~decisions ~~they~~in ~~may~~respect ~~utilize market charts, computer programs and compilations~~ of ~~quantifiable~~Registrant ~~fundamental~~are ~~information~~made tothe ~~assist~~Trading ~~them~~Advisor. inWhile ~~making~~the ~~trading~~Managing ~~decisions,~~Owner ~~make~~receives ~~such~~daily ~~decisions~~trade onconfirmations from the ~~basis~~clearing ofbroker ~~their~~and ~~own~~foreign ~~judgment~~exchange ~~and~~dealers, such ~~“trading~~information ~~instinct,”~~is not onprovided ~~the~~to ~~basis~~Unitholders ofand Registrant’s trading ~~signals~~results ~~generated~~are byreported ~~any~~to ~~program~~the orUnitholders ~~model~~monthly. ~~Such traders may be more prone to subjective judgments~~Accordingly, ~~which~~an ~~may~~investment ~~have~~in ~~greater~~Registrant ~~potentially~~does ~~adverse~~not ~~effects~~offer onyou ~~their~~the ~~performance~~same ~~than systematic traders~~transparency, ~~which emphasize eliminating the effects of “emotionalism” on their trading~~i.e., ~~Reliance~~an onability ~~trading~~to ~~judgment~~review ~~may,~~all investment ~~over~~positions ~~time~~daily, ~~produce~~that ~~less~~a ~~consistent~~personal trading ~~results~~account ~~than~~offers. ~~implementing~~The aManaging ~~systematic~~Owner ~~approach.~~may ~~Discretionary~~(but ~~traders,~~is ~~like trend-following~~under ~~traders,~~no ~~are~~obligation ~~unlikely~~ to) beprovide ~~profitable~~estimated ~~unless~~daily ~~major~~or ~~price~~weekly ~~movements~~values ~~occur.~~to ~~Discretionary traders are highly unpredictable, and can incur substantial losses even in apparently favorable markets~~Unitholders.

~~Systematic~~(9) ~~Trading~~Registrant ~~Strategies~~is ~~May~~subject ~~Incur~~to ~~Substantial~~Speculative ~~Losses~~Position Limits

~~A systematic~~The ~~trader~~CFTC ~~will generally rely to some degree on judgmental decisions concerning, for example, what markets to follow~~ and ~~commodities~~U.S. tofutures ~~trade,~~exchanges ~~when~~have toestablished ~~liquidate~~speculative a position inlimits a(referred ~~contract which is about~~ to ~~expire~~as ~~and how large a~~ “position to ~~take~~limits”) ~~in a particular commodity. Although these judgmental decisions may have a substantial effect~~ on athe ~~systematic~~maximum ~~trader’s~~position ~~performance,~~in ~~such~~certain ~~trader’s~~futures ~~primary~~interest ~~reliance~~contracts ~~is on trading programs or models~~ that ~~generate~~may ~~trading~~be ~~signals.~~held The systems utilized to generate trading signals are changed from time to time (although generally infrequently), but the trading instructions generated by the systems being used are followed without significant additional analysis or ~~interpretation. Therefore,~~controlled ~~systematic trading may incur substantial losses~~ by ~~failing to capitalize on market trends that their systems would otherwise have exploited by applying their generally mechanical trading systems by judgmental decisions of employees. Furthermore,~~ any ~~trading~~one ~~system~~person or ~~trader may suffer substantial losses by misjudging the market~~group. ~~Systematic traders tend to rely on computerized programs~~Therefore, ~~and some consider~~ the ~~prospect~~Trading ofAdvisor ~~disciplined~~may ~~trading,~~have ~~which~~to ~~largely~~reduce ~~removes~~ the ~~emotion~~size of ~~the~~ ~~individual~~its ~~trader~~position ~~from~~in ~~the~~one ~~trading~~or ~~process,~~more ~~advantageous.~~futures ~~Due~~contracts ~~to their reliance upon computers, systematic traders are generally able to incorporate a significant amount of data into a particular trading decision. However, when fundamental~~in ~~factors~~order ~~dominate the market, trading systems may suffer rapid and severe losses due~~ to ~~their~~avoid ~~inability~~exceeding ~~to respond to~~ such ~~factors~~position ~~until~~limits, ~~such~~which ~~factors~~could ~~have~~adversely ~~had~~affect ~~a sufficient effect on~~ the ~~market~~profitability ~~to create a trend~~ of ~~enough magnitude to generate a reversal of trading signals, by which time a precipitous price change may already be in progress, preventing liquidation at anything but substantial losses~~Registrant.

(10)

Possible Illiquid Markets May Exacerbate Losses

Futures and forward positions cannot always be liquidated at the desired price. It is difficult to execute a trade at a specific price when there is a relatively small volume of buy and sell orders in a market. A market disruption, such as when foreign governments may take or be subject to political actions which disrupt the markets in their currency or major exports, can also make it difficult to liquidate a position. Periods of illiquidity have occurred from time-to-time in the past, such as in connection with Russia’s default on its sovereign debt in 1998. Such periods of illiquidity and the events that trigger them are difficult to predict and there can be no assurance that the Trading Advisor will be able to do so.

~~Decisions~~There ~~Based~~can ~~Upon~~be ~~Fundamental~~no ~~Analysis~~assurance ~~May~~that ~~Not~~market ~~Result~~illiquidity inwill ~~Profitable~~not cause losses for Registrant. The large size of the positions which the Trading Advisor is expected to acquire for Registrant increases the risk of illiquidity by both making its positions more difficult to liquidate and increasing the losses incurred while trying to do so.

~~Traders~~The ~~that~~risk ~~utilize~~of ~~fundamental~~loss ~~trading~~due ~~strategies attempt~~ to ~~examine~~potentially ~~factors~~illiquid ~~external~~markets tois ~~the~~more ~~trading~~acute ~~market~~in ~~that~~respect ~~affect~~of over-the ~~supply and demand for a particular futures~~-counter ~~and~~instruments ~~forward~~than ~~contracts~~ in ~~order~~respect toof ~~predict~~exchange-traded ~~future~~instruments ~~prices. Such analysis may not result in profitable trading~~ because the ~~analyst~~performance ~~may not have knowledge~~ of ~~all~~those ~~factors~~contracts ~~affecting~~is ~~supply~~not ~~and~~guaranteed ~~demand,~~by ~~prices~~an ~~may~~exchange ~~often~~or beclearinghouse ~~affected by unrelated factors,~~ and ~~purely~~ ~~fundamental~~Registrant ~~analysis~~will ~~may~~be ~~not~~at ~~enable~~risk ~~the trader~~ to ~~determine~~the ~~quickly~~ability ~~that previous trading decisions were incorrect. In addition, because~~ of the ~~breadth~~counterparty ofto ~~fundamental~~the ~~data~~instrument ~~that exists, a fundamental trader may not be able~~ to ~~follow~~perform ~~developments~~its inobligations ~~all~~thereunder. ~~such~~Because ~~data,~~these ~~but~~markets ~~instead~~are ~~may~~not ~~specialize in analyzing a narrow set of data~~regulated, ~~requiring~~there ~~trading~~are inno ~~fewer~~specific ~~markets.~~standards ~~Consequently,~~or aregulatory ~~fundamental~~supervision ~~trader~~of ~~may have less flexibility in adverse markets to~~ trade ~~other~~pricing ~~futures~~ and ~~forward markets~~other ~~than~~trading ~~traders~~activities that dooccur ~~not~~in ~~limit~~those ~~the number of~~ markets ~~traded as a result of a specialized focus~~.

~~Increase~~(11) inSystematic ~~Assets~~Trading ~~Under~~Strategies ~~Management~~ May ~~Affect Trading~~Incur ~~Decisions~~Substantial Losses

~~The~~A ~~more~~systematic ~~equity~~trader awill ~~Trading~~generally ~~Advisor~~rely ~~manages~~to some degree on judgmental decisions concerning, ~~the~~for ~~more~~example, ~~difficult~~what itmarkets to follow and commodities to trade, when to liquidate a position in a contract which is about to expire and how large a position to take in a particular commodity. Although these judgmental decisions may behave ~~for~~a substantial effect on a systematic trader’s performance, such trader’s primary reliance is on trading programs or models that ~~Trading~~generate ~~Advisor~~trading signals. The systems utilized to ~~trade~~generate ~~profitably~~trading ~~because~~signals ofare changed from time to time (although generally infrequently), but the ~~difficulty~~trading ofinstructions ~~trading~~generated ~~larger~~by ~~positions~~the systems being used are followed without ~~adversely~~significant ~~affecting~~additional ~~prices~~analysis ~~and~~or ~~performance~~interpretation. ~~Accordingly~~Therefore, ~~such~~systematic ~~increases~~trading inmay ~~equity~~incur ~~under~~substantial ~~management~~losses ~~may~~by ~~require~~failing ~~one~~to capitalize on market trends that their systems would otherwise have exploited by applying their generally mechanical trading systems by judgmental decisions of employees. Furthermore, any trading system or ~~more~~trader may suffer substantial losses by misjudging the market. Systematic traders tend to rely on computerized programs, and some consider the prospect of disciplined trading, which largely removes the ~~Trading~~emotion ~~Advisors~~of the individual trader from the trading process, advantageous. Due to ~~modify~~their reliance upon computers, systematic traders are generally able to incorporate a significant amount of data into a particular trading ~~decisions~~decision. ~~for~~However, when fundamental factors dominate the ~~Trust~~market, ~~which~~trading ~~could~~systems may suffer rapid and severe losses due to their inability to respond to such factors until such factors have had a ~~detrimental~~sufficient effect on ~~your~~the ~~investment~~market to create a trend of enough magnitude to generate a reversal of trading signals, by which time a precipitous price change may already be in ~~such~~progress, ~~Trust~~preventing liquidation at anything but substantial losses.

~~You~~The ~~cannot~~program beutilized ~~Assured~~by of the Trading ~~Advisors’~~Advisor ~~Continued~~is ~~Services~~a ~~Which~~systematic ~~May Be~~trading ~~Detrimental~~strategy. ~~to Trust~~

~~You~~(12) ~~cannot~~Competition bewith ~~assured~~Other ~~that~~Technical ~~any Trading Advisor will be willing or able to continue to provide advisory services to the Trust for any length of time. There is severe competition for the services of qualified trading advisors,~~ and ~~the~~Trend-Following Trust may not be able to retain satisfactory replacement or additional trading advisors on acceptable terms or a current Trading Advisor may require the Trust to pay higher fees in order to be able to retain such Trading Advisor. Traders

~~Limited~~The ~~Ability~~Trading Advisor’s trading system incorporates technical analysis and trend-following, two trading methods that have gained increasing popularity among trading advisors. The significant growth in the number of such traders has translated into greater competition for the Trading Advisor in identifying and executing orders promptly to ~~Liquidate~~take ~~Your~~advantage ~~Investment~~of profitable opportunities in the markets. Furthermore, the number of traders competing in the same market has the effect of decreasing the profit available in each trade as demand pushes up the price of a long contract and pushes down the price of a short contract.

~~There~~(13) isOther noLimitations ~~secondary market for the Units. While the Units have redemption rights, there are restrictions, and possible fees assessed. For example, Units may be redeemed only as of the close of business~~ on ~~the~~Technical last business day of a calendar month provided a request for redemption is received at least five business days prior to the end of such month excluding the last business day of the month. Transfers of Units are subject to limitations, and the Managing Owner may deny a request to transfer if it determines that the transfer may result in adverse legal or tax consequences for the Trust. Analysis

~~Possible~~The ~~Illiquid~~profitability ~~Markets~~of ~~May~~technical ~~Exacerbate~~analysis ~~Losses~~generally depends upon the accurate forecasting of major price moves or trends in prices. However, there is no assurance that trends will develop in the markets followed by the Trading Advisor or that they will be forecast accurately. Furthermore, on occasion fundamental rather than technical factors may drive prices. A strict reliance on technical analysis may cause the Trading Advisor to misperceive the factors motivating market behavior.

~~Futures~~(14) and forward positions cannot always be liquidated at the desired price. It is difficult to execute a trade at a specific price when there is a relatively small volume of buy and sell orders in a market. A market disruption, such as when foreign governments may take or be subject to political actions, which disrupt the markets in their currency or major exports, can also make it difficult to liquidate a position. Periods of illiquidity have accrued from timeNon-~~to-time~~Discretionary inVersus ~~the~~Discretionary past, such as in connection with Russia’s default on its sovereign debt in 1998. Such periods of illiquidity and the events that trigger them are difficult to predict and there can be no assurance that any Trading Advisor will be able to do so. There can be no assurance that market illiquidity will not cause losses for the Trust. The large size of the positions which a Trading Advisor is expected to acquire for the Trust increases the risk of illiquidity by both making its positions more difficult to liquidate and increasing the losses incurred while trying to do so. Systems

The ~~risk~~Diversified ofProgram ~~loss~~follows ~~due~~a toprimarily ~~potentially~~non-discretionary ~~illiquid~~system. ~~markets~~This ismeans ~~more~~that ~~acute~~trading signals are automatically generated by its models and, except in ~~respect~~extreme ofsituations, ~~over-the-counter~~are ~~instruments~~followed ~~than~~to inthe ~~respect~~letter. ofThe ~~exchange-traded~~Trading ~~instruments~~Advisor ~~because~~has found that the ~~performance~~absence of ~~those~~discretion ~~contracts~~promotes isgreater ~~not~~consistency ~~guaranteed~~in byperformance anand ~~exchange~~lessens orthe ~~clearinghouse~~opportunity ~~and~~for ~~the~~less ~~Trust~~reliable ~~will~~anecdotal beevidence atand ~~risk~~personal judgment to ~~the~~influence ~~ability~~decision-making. ofIn unusual market situations, the ~~counterparty~~Trading toAdvisor reserves the ~~instrument~~right to ~~perform~~deviate from its ~~obligations~~ ~~thereunder~~automatic system. ~~Because~~This ~~these~~raises ~~markets~~the ~~are~~possibility ~~not~~that ~~regulated,~~the ~~there~~Trading ~~are~~Advisor nomay ~~specific~~misinterpret ~~standards~~when oran ~~regulatory~~unusual ~~supervision~~market ofsituation ~~trade~~has ~~pricing~~occurred and ~~other~~take ~~trading~~actions ~~activities~~ that ~~occur~~cause rather inthan ~~those~~prevent ~~markets~~losses.

~~Because~~(15) ~~the~~The ~~Trust~~Limits ~~does not Acquire Any Asset with Intrinsic Value, the Positive Performance~~ of ~~Your~~a ~~Investment~~Research-Based ~~Is Wholly Dependent Upon an Equal and Offsetting Loss~~ System

~~Futures~~A ~~and~~unique ~~forward~~aspect ~~trading~~of isthe aTrading ~~risk~~Advisor’s ~~transfer~~approach ~~economic~~to ~~activity.~~trading ~~For every gain there~~ is anits ~~equal~~heavy ~~and~~emphasis ~~offsetting~~on ~~loss~~research. ~~rather~~Over ~~than~~half anof ~~opportunity~~its ~~to participate~~employees ~~over~~devote ~~time~~some inor ~~general~~all ~~economic~~of ~~growth.~~their ~~Unlike~~time ~~most~~to ~~alternative~~identifying nuances ~~investments, an investment~~ in ~~the~~market ~~Trust~~patterns, ~~does~~rigorously ~~not~~testing ~~involve~~hypotheses ~~acquiring any asset with intrinsic value. Overall stock~~ and ~~bond prices could rise significantly and the economy as a~~ ~~whole prospers; while the Trust trades unprofitably.~~

Failure of Futures and Foreign Exchange Trading to be Non-Correlated to General Financial Markets Will Eliminate Benefits of Diversification

Historically, managed futures and foreign exchange generally have been non-correlated to the performance of other asset classes such as stocks and bonds. Non-correlation means that there is no statistically valid relationship between the past performance of futures and forward contracts on the one hand and stocks or bonds on the other hand. Non-correlation should not be confused with negative correlation, where the performance would be exactly opposite between two asset classes.

~~Because~~refining ofmodels ~~this~~in ~~non-correlation,~~order ~~Registrant~~to ~~cannot~~give bean ~~expected~~edge to bethe ~~profitable~~Diversified ~~during~~Program’s ~~unfavorable~~trading ~~periods~~system. ~~for~~However, ~~the~~research ~~stock~~is ~~market,~~generally orlinked ~~vice-versa.~~to ~~The~~what ~~futures and~~has ~~forward~~occurred ~~markets~~in ~~are~~the ~~fundamentally~~past. ~~different~~To ~~from~~ the ~~securities~~extent ~~markets~~a inmarket ~~that~~deviates from ~~for~~its ~~every~~accustomed ~~gain~~response into ~~futures~~an ~~and~~event ~~forward~~or ~~trading,~~the ~~there~~event itself is anunusual, ~~equal~~extreme ~~and~~or ~~offsetting~~never ~~loss.~~before Ifexperienced by the ~~Trust~~market, ~~does~~the ~~not~~value ~~perform~~of in a ~~manner non~~research-~~correlated~~based ~~with~~methodology ~~the~~will ~~general financial~~lessen. ~~markets~~The orclearest ~~does~~recent ~~not~~example ~~perform~~is ~~successfully,~~the ~~you~~subprime ~~will~~market ~~obtain~~fiasco nobeginning ~~diversification benefits by investing~~ in mid-2007 ~~the~~which ~~Units~~continues ofto ~~the~~produce ~~Trust~~an ~~and~~adverse ~~the~~impact ~~Trust~~on ~~may~~financial ~~have~~institutions noand ~~gains~~markets to ~~offset~~a ~~your~~degree ~~losses~~never ~~from~~before ~~other~~seen ~~investments~~or even anticipated.

~~Trading~~The onconstant ~~Commodity~~evolution ~~Exchanges~~of ~~Outside~~markets represents a second factor influencing the ~~United~~benefits ~~States~~of isa ~~Not~~research-based ~~Subject~~system of trading. Unexpected price jumps have accompanied the transition from floor based to all-electronic Umarkets.S New contract rules and new market participants, both hedgers and speculators, have also impacted the way markets act and react. ~~Regulation~~These changes are not easily discerned until an identifiable pattern forms. The Trading Advisor has concluded that the value of its research efforts far outweighs any limitations. However these limitations must be acknowledged.

~~Trading~~(16) ~~Advisors~~The ~~are~~Limits ~~expected to engage in some or all~~ of ~~its~~Risk ~~trading~~Management on behalf of the Trust on commodity exchanges outside the United States. Trading on such exchanges is not regulated by any United States governmental agency and may involve certain risks not applicable to trading on United States exchanges. In trading contracts denominated in currencies other than U.S. dollars, the Trust will be subject to the risk of adverse exchange-rate movements between the dollar and the functional currencies of such contracts. Additionally, trading on foreign exchanges is also subject to the risk of exchange controls, expropriation, excessive taxation or government disruption. Investors could incur substantial losses from trading on foreign exchanges by the Trust to which such investors would not have been subject had the Trading Advisors limited their trading to U.S. markets. Systems

~~Various~~A ~~Actual~~carefully designed and ~~Potential~~executed ~~Conflicts~~risk management system is critical to the success of ~~Interest~~any ~~May~~trading Bemethod. ~~Detrimental~~With this in mind, the Trading Advisor has approached the management of risk from many different perspectives. Nevertheless, risk management is not the same as eliminating risk. It is virtually impossible to ~~Unitholders~~eliminate risk whereas lowering risk may be possible in most situations. Accordingly, the Trading Advisor believes that it will continue to experience monthly, quarterly and even annual drawdowns despite its highly developed system of risk management.

~~The~~(17) ~~Trust~~Failure ~~is subject to actual and potential conflicts~~ of ~~interests~~Futures ~~involving the Managing Owner, the Trading Advisors,~~ and ~~various~~Foreign ~~brokers~~Exchange ~~and servicing agents. The Managing Owner, the~~ Trading ~~Advisors, and their respective principals, all of which are engaged in other investment activities, are not required~~ to ~~devote~~be ~~substantially~~Non-Correlated ~~all of their time~~ to ~~the~~General ~~Trust’s~~Financial ~~business,~~Markets ~~which~~Will ~~also~~Eliminate ~~presents~~Benefits ~~the potential for numerous conflicts~~ of interest with the Trust. As a result of these and other relationships, parties involved with the Trust have a financial incentive to act in a manner other than in the best interests of the Trust and its Unitholders. The Managing Owner has not established any formal procedure to resolve conflicts of interest. Consequently, investors will be dependent on the good faith of the respective parties subject to such conflicts to resolve them equitably. Although the Managing Owner attempts to monitor these conflicts, it is extremely difficult, if not impossible, for the Managing Owner to ensure that these conflicts do not, in fact, result in adverse consequences to the various Trust. Diversification

~~The~~Historically, ~~Trust~~managed ~~may~~futures beand ~~subject~~foreign exchange generally have been non-correlated to ~~certain~~the ~~conflicts~~performance ~~with~~of ~~respect~~other toasset ~~its~~classes ~~clearing~~such ~~broker(s),~~as ~~its~~stocks and bonds. Non-correlation means that there is no statistically valid relationship between the past performance of futures ~~broker,~~and forward contracts on the one hand and ~~any~~stocks ~~executing~~or ~~broker~~bonds ~~including,~~on ~~but~~the other hand. Non-correlation should not ~~limited~~be toconfused with negative correlation, ~~conflicts~~where ~~that~~the ~~result~~performance ~~from~~would ~~receiving~~be ~~greater~~exactly ~~amounts~~opposite ofbetween ~~compensation~~two ~~from~~asset ~~other~~classes. ~~clients~~Because of this non-correlation, ~~purchasing~~Registrant ~~opposite~~can orbe expected to be profitable during unfavorable ~~competing~~periods ~~positions~~for onthe ~~behalf~~stock ofmarket, ~~third~~or ~~party~~vice-versa. ~~accounts~~The ~~traded~~futures ~~through~~and forward markets are fundamentally different from the ~~clearing~~securities ~~broker~~markets in that for every gain in futures and forward trading, there is an equal and offsetting loss. If Registrant does not perform in a manner non-correlated with the ~~futures~~general ~~broker~~financial markets or does not perform successfully, you will obtain no diversification benefits by investing in the Interests and ~~executing~~Registrant ~~brokers~~may have no gains to offset your losses from other investments.

~~Unitholders~~(18) ~~Taxed Currently~~Trading on Commodity Exchanges Outside the United States is Not Subject to U.S. Regulation

~~Unitholders~~The ~~are~~Trading ~~subject~~Advisor tomay ~~tax~~engage ~~each~~in ~~year~~some onor ~~their~~all ~~allocable~~of ~~share~~its oftrading ~~the~~on ~~income~~commodity orexchanges ~~gains~~outside ~~(if~~the ~~any)~~United ofStates. Trading ~~the~~on ~~Trust,~~such ~~whether~~exchanges oris not ~~they~~regulated ~~receive distributions.~~by ~~Moreover,~~any ~~the~~United ~~Managing~~States ~~Owner~~governmental ~~does~~agency and may involve certain risks not ~~intend~~applicable to ~~make~~trading ~~any~~on ~~distributions~~United toStates ~~Unitholders~~exchanges. In trading contracts denominated in ~~respect~~currencies ofother ~~the~~than ~~Trust~~U.S. ~~Consequently~~dollars, Registrant ~~Unitholders~~ will be ~~required~~subject ~~either~~ to ~~redeem~~the ~~Units~~risk orof toadverse ~~make~~exchange-rate ~~use~~movements ofbetween ~~other~~the ~~sources~~dollar and the functional currencies of ~~funds~~such contracts. Additionally, trading on foreign exchanges is also subject to ~~discharge~~the risk of exchange controls, expropriation, ~~their~~excessive ~~tax~~taxation ~~liabilities~~or ingovernment ~~respect~~disruption. ofInvestors ~~any~~could ~~profits~~incur ~~earned~~substantial losses from trading on foreign exchanges by Registrant to which such investors would not have been subject had the ~~Trust~~Trading Advisor limited its trading to U.S. markets.

In(19) ~~comparing~~Failure ~~the profit objectives of the Trust with the performance of more familiar securities in which one might invest, prospective investors must recognize that if they purchased equity~~ or ~~debt,~~Lack ~~there probably would be no tax due on the appreciation in the value~~ of ~~such~~Segregation ~~holdings until disposition. In the case~~ of ~~the~~Assets ~~Trust,~~May ~~on the~~Increase other hand, a significant portion of any appreciation in the Net Asset Value per Unit must be paid in taxes by the Unitholders of the Trust every year, resulting in a substantial cumulative reduction in their net after-tax returns. Because Unitholders will be taxed currently on their allocable share of the income or gains of the Trust, if any, the Trust may trade successfully but investors nevertheless would have recognized significantly greater gains on an after-tax basis had they invested in conventional stocks with comparable performance. Losses

~~Limitation~~The CEA requires a futures commission merchant (“FCM”) or clearing broker, to segregate all funds received from customers from such broker’s proprietary assets. If the clearing broker fails to do so, the assets of Registrant might not be fully protected in the event of their bankruptcy. Furthermore, in the event of the clearing broker’s bankruptcy, Registrant could be limited to recovering only a pro rata share of all available funds segregated on ~~Deductibility~~behalf of ~~“Investment~~the ~~Advisory~~clearing ~~Fees”~~broker’s combined customer accounts, even though certain property specifically traceable to Registrant (for example, Treasury bills deposited by Registrant with the clearing broker as margin) was held by the clearing broker. The clearing broker has been the subject of certain regulatory and private causes of action.

Non-corporate Unitholders may be required to treat the amount of Incentive Fees and other expenses of the Trust as “investment advisory fees” which may be subject to substantial restrictions on deductibility for federal income tax purposes. In the ~~absence~~event of ~~further regulatory or statutory clarification,~~ the ~~Managing~~FCM’s ~~Owner is not classifying these expenses as “investment advisory fees~~bankruptcy,” ~~but this~~Registrant ~~is a position to which the Internal Revenue Service (the “IRS”)~~ may ~~object.~~recover If a ~~substantial~~pro-rata ~~portion~~share ofor ~~the~~none ~~fees and other expenses~~ of ~~the~~its ~~Trust were characterized as “investment advisory fees,” an investment in the Trust might no longer be economically viable~~assets.

~~Taxation~~(20) ofDefault ~~Interest~~by ~~Income~~Counterparty ~~Irrespective~~and ofCredit ~~Trading~~Risk ~~Losses~~Could Cause Substantial Losses

~~With~~Dealers ~~respect~~in toforward ~~the~~contracts ~~Trust,~~are ~~the~~not ~~Net~~regulated ~~Asset Value per Unit reflects the trading profits and losses as well as the interest income earned and expenses incurred~~ by the ~~Trust. However,~~CEA ~~losses on the Trust’s trading will be almost exclusively capital losses,~~ and ~~capital losses~~ are ~~deductible~~not ~~against~~obligated ~~ordinary income only~~ to ~~the~~segregate ~~extent~~customer ~~of $3,000 per year in the case of non-corporate taxpayers~~assets. ~~Consequently,~~As if a ~~non-corporate~~ ~~Unitholder had~~result, Unitholders ~~for~~do ~~example,~~not anhave ~~allocable~~such ~~trading~~basic ~~(i.e.,~~protections ~~capital)~~with ~~loss~~respect ofto ~~$10,000~~the trading in aforward ~~given~~contracts ~~fiscal~~by ~~year and allocable interest (i~~Registrant.~~e.,~~ ~~ordinary) income (after reduction for expenses) of $5,000, the Unitholder would have~~ This

~~incurred~~lack aof ~~net~~regulation ~~loss~~ in ~~the~~these ~~Net~~markets ~~Asset~~could ~~Value~~expose ofRegistrant ~~such~~in ~~Unitholder’s~~certain ~~Units~~circumstances ~~equal~~ to ~~$5,000~~significant ~~but would recognize taxable income of $2,000 (assuming a 40% tax rate). The limited deductibility of capital~~ losses ~~for non-corporate Unitholders could result~~ in ~~such~~the ~~Unitholders~~event ~~having a tax liability in respect~~ of ~~their~~trading ~~investment~~abuses inor ~~the Trust despite incurring a~~ financial ~~loss~~failure onby ~~their Units of~~ the ~~Trust~~counterparties.

~~Possibility~~Registrant ofalso afaces ~~Tax~~the ~~Audit~~risk of ~~Both~~non-performance by the ~~Trust~~counterparties ~~and~~to the ~~Unitholders~~over-the-counter contracts. Unlike in futures contracts, the counterparty to these contracts is generally a single bank or other financial institution, rather than a clearing organization backed by a group of financial institutions. As a result, there will be greater counterparty credit risk in these transactions. The clearing member, clearing organization or other counterparty may not be able to meet its obligations, in which case Registrant could suffer significant losses on these contracts.

~~There~~(21) ~~can~~Possible beFCM no assurance that the tax returns of the Trust will not be audited by the IRS. If such an audit results in an adjustment, Unitholders of the Trust could themselves be audited as well as being required to pay additional taxes, interest and possibly penalties. Failure

~~PROSPECTIVE~~Under ~~INVESTORS~~CFTC ~~ARE~~regulations, ~~STRONGLY~~FCMs ~~URGED~~are TOrequired ~~CONSULT~~to ~~THEIR~~maintain ~~OWN~~clients’ ~~TAX~~assets ~~ADVISERS~~in ~~AND~~a ~~COUNSEL~~segregated ~~WITH~~account. If a Diversified Program client’s FCM fails to do so, the client may be subject to a risk of loss of Registrants on deposit with the client’s FCM in the event of its bankruptcy. In addition, under certain circumstances, such as the inability of another client of the FCM or the FCM itself to satisfy substantial deficiencies in such other client’s account, a client may be subject to a risk of loss of Registrants on deposit with the client’s FCM. In the case of any such bankruptcy or client loss, a client might recover, even in respect of property specifically traceable to the client, only a pro rata share of all property available for distribution to all of the FCM’s clients.

~~RESPECT~~(22) TOForwards, ~~THE~~Swaps, ~~POSSIBLE~~Hybrids ~~TAX~~and ~~CONSEQUENCES~~Other TODerivatives ~~THEM~~are OFNot ANSubject ~~INVESTMENT~~to INCFTC ~~REGISTRANT; SUCH TAX CONSEQUENCES MAY DIFFER IN RESPECT OF DIFFERENT INVESTORS.~~ Regulation

~~Failure~~Registrant may trade foreign exchange contracts in the interbank market. Since forward contracts are traded in unregulated markets between principals, Registrant also assumes the risk of loss from counterparty nonperformance. In the future, Registrant may also trade swap agreements, hybrid instruments and other off-exchange contracts. Swap agreements involve trading income streams such as fixed rate or ~~Lack~~floating rate interest. Hybrids are instruments that combine features of ~~Segregation~~a security with those of ~~Assets~~a ~~May~~futures ~~Increase~~contract. ~~Losses~~Because there is no exchange or clearing house for these contracts, Registrant will be subject to the credit risk and nonperformance of the counterparty. Additionally, because these off-exchange contracts are not regulated by the CFTC, Registrant will not receive the protections that are provided by the CFTC’s regulatory scheme.

The Commodity Exchange Act (“CEA”) requires a futures commission merchant (“FCM”) clearing broker to segregate all funds received from customers from such broker’s proprietary assets. If the clearing broker fails to do so, the assets of the Trust might not be fully protected in the event of their bankruptcy. Furthermore, in the event of the clearing broker’s bankruptcy, the Trust could be limited to recovering only a pro rata share of all available funds segregated on behalf of the clearing broker’s combined customer accounts, even though certain property specifically traceable to the Trust (for example, Treasury bills deposited by the Trust with the clearing broker as margin) was held by the clearing broker.

In the event of the FCM’s bankruptcy, Registrant may recover a pro-rata share or none of its assets.

Default by Counterparty and Credit Risk Could Cause Substantial Losses

Dealers in forward contracts are not regulated by the CEA and are not obligated to segregate customer assets. As a result, Unitholders do not have such basic protections with respect to the trading in forward contracts by the Trust. This lack of regulation in these markets could expose the Trust in certain circumstances to significant losses in the event of trading abuses or financial failure by the counterparties. The Trust also faces the risk of non-performance by the counterparties to the over-the-counter contracts. Unlike in futures contracts, the counterparty to these contracts is generally a single bank or other financial institution, rather than a clearing organization backed by a group of financial institutions. As a result, there will be greater counterparty credit risk in these transactions. The clearing member, clearing organization or other counterparty may not be able to meet its obligations, in which case the Trust could suffer significant losses on these contracts.

Regulatory Changes or Actions May Alter the Nature of an Investment in the Trust

Considerable regulatory attention has been focused on non-traditional investment pools, in particular commodity pools such as the Trust, publicly distributed in the United States. There has been significant international governmental concern expressed regarding, for example, (i) the disruptive effects of speculative trading on the central banks’ attempts to influence exchange rates and (ii) the need to regulate the derivatives markets in general. There is a possibility of future regulatory changes altering, perhaps to a material extent, the nature of an investment in the Trust.

The futures markets are subject to comprehensive statutes, regulations, and margin requirements. In addition, the Commodity Futures Trading Commission (“CFTC”) and the exchanges are authorized to take extraordinary actions in the event of a market emergency, including, for example, the retroactive implementation of speculative position limits or higher margin requirements, the establishment of daily price limits and the suspension of trading. The regulation of futures and forward transactions in the United States is a rapidly changing area of law and is subject to modification by government and judicial action. The effect of any future regulatory change on the Trust is impossible to predict, but could be substantial and adverse.

Trust Trading is Not Transparent

Trading decisions in respect of the Trust, are made by the Trading Advisors. While the Managing Owner receives daily trade confirmations from the clearing broker and foreign exchange dealers, such information is not provided to Unitholders and the Trust’s trading results are reported to the Unitholders. Accordingly, an investment in the Trust does not offer you the same transparency, i.e., an ability to review all investment positions daily that a personal trading account offers. The Managing Owner may (but is under no obligation to) provide estimated daily or weekly values to unitholders.

Lack of Independent Experts Representing Investors

The Managing Owner has consulted with counsel, accountants and other experts regarding the formation and operation of the Trust. No counsel has been appointed to represent an investor in connection with the offering of the Units. Accordingly, you should consult your own legal, tax and financial advisers regarding the desirability of an investment in the Trust.

Forwards, Swaps, Hybrids and Other Derivatives are Not Subject to CFTC Regulation

The Trust may trade foreign exchange contracts in the interbank market. Since forward contracts are traded in unregulated markets between principals, the commodity pools also assume the risk of loss from counterparty nonperformance. In the future, the Trust may also trade swap agreements, hybrid instruments and other off-exchange contracts. Swap agreements involve trading income streams such as fixed rate or floating rate interest. Hybrids are instruments, which combine features of a security with those of a futures contract. The dealer market for off-exchange instruments is becoming less liquid. Because there is no exchange or clearing- house for these contracts, the Trust will be subject to the credit risk and nonperformance of the counterparty. Additionally, because these off-exchange contracts are not regulated by the CFTC, the Trust will not receive the protections, which are provided by the CFTC’s regulatory scheme.

Possibility of Termination of the Trust or any Trust Before Expiration of its Stated Term

As Managing Owner, the Managing Owner may withdraw from the Trust, which would cause the Trust to terminate unless a Substitute Managing Owner was appointed. Other events, such as a long-term substantial loss suffered by any Trust, could also cause the Trust to terminate before the expiration of its stated term. This could cause you to liquidate your investments and upset the overall maturity and timing of your investment portfolio. If the registrations with the CFTC or memberships in the NFA of the Managing Owner or the clearing broker were revoked or suspended, such entity would no longer be able to provide services to the Trust.

There may be an additional risk due to the fact Registrant may trade foreign exchange contracts off-exchange and, as such, does not have protection of an exchange. There is also the additional risk that the assets held with the clearing broker for trading off-exchange foreign currencies are not required to be segregated.

Registrant may also trade options on futures. Although successful options trading requires many of the same skills as successful futures trading, the risks are different. Successful options trading requires a trader to assess accurately near-term market volatility because that volatility is immediately reflected in the price of outstanding options. Correct assessment of market volatility can therefore be of much greater significance in trading options than it is in many long-term futures strategies where volatility does not have as great an effect on the price of a futures contract.

(23) Foreign Exchange Currency Trading is Not Subject to CFTC Regulation

~~Certain~~The Trading ~~Advisors~~Advisor ~~will~~may trade ~~their~~its programs by entering into spot and forward transactions involving currencies with ~~United~~ United States and foreign banks and currency dealers, or it may enter into such transactions for hedging purposes. As with the risks involved in forward contracts (see above), trading in spot and forward foreign exchange transactions is not regulated by the CFTC and such contracts are not traded on or guaranteed by an exchange or its clearing house.

~~Registrant~~(24) isFees ~~subject~~and toCommissions ~~Speculative~~are ~~Position~~Charged ~~Limits~~Regardless of Profitability and May Result in Depletion of Registrant’s Assets

~~The~~Registrant ~~CFTC~~is subject to the fees and ~~U.S.~~expenses ~~futures~~described ~~exchanges~~herein ~~have~~which ~~established~~are ~~speculative~~payable irrespective ~~position~~of ~~limits~~profitability ~~(referred~~in addition to asincentive ~~“position~~fees ~~limits”)~~which onare payable to the ~~maximum~~Trading ~~position~~Advisor inbased ~~certain~~on ~~futures interests~~the ~~contracts~~Trading ~~that~~Advisor’s ~~may~~profitability beand ~~held~~not oron ~~controlled~~the byprofitability ~~any~~of ~~one~~Registrant ~~person~~as ora ~~group~~whole. ~~Therefore,~~Such fees and expenses include the Managing Owner’s brokerage commissions of 10% and the Trading Advisor’s ~~may~~base ~~have~~fee of 2%. In addition, Registrant is subject to ~~reduce~~an ~~the~~incentive ~~size~~fee equal to 20% of ~~its~~net ~~position~~profits inon ~~one~~a orcumulative ~~more~~high ~~futures~~water ~~contracts~~mark inbasis. ~~order~~The toTrading ~~avoid~~Advisor’s ~~exceeding~~fees ~~such~~are based ~~position~~on ~~limits~~a variety of factors, ~~which~~including ~~could adversely~~the ~~affect~~fees the ~~profitability~~Trading ofAdvisor ~~Registrant~~charges to other clients.

~~Reliance~~Registrant onis also subject to brokerage fees and administrative expenses. On Registrant’s forward trading, “bid-ask” spreads are incorporated into the ~~Trading~~pricing ~~Advisor~~of Registrant’s forward contracts by its counterparties in addition to ~~Trade~~the ~~Successfully~~brokerage fees paid by Registrant. It is not possible to quantify the “bid-ask” spreads paid by Registrant because Registrant cannot determine the profit its counterparty is making on the forward trades into which it enters.

~~The~~9 Trading Advisor is responsible for making all futures, forwards, and options trading decisions on behalf of Registrant. The Managing Owner has no control over the specific trades the Trading Advisor makes, leverage used, risks and/or concentrations assumed or whether the Trading Advisor will act in accordance with the disclosure documents or descriptive materials furnished by them to the Managing Owner. The Managing Owner can provide no assurance that the trading programs employed by the Trading Advisor will be successful.

Consequently, the expenses of Registrant could, over time, result in significant losses to your investment therein. You may never achieve profits.

(25)

Reliance on the Trading Advisor to Trade Successfully

The Trading Advisor is responsible for making all futures, forwards, and options trading decisions on behalf of Registrant. The Managing Owner has no control over the specific trades the Trading Advisor may make, leverage used by the Trading Advisor in implementing its trading program, risks and/or concentrations assumed or whether the Trading Advisor will act in accordance with the disclosure documents or descriptive materials furnished by it to the Managing Owner. The Managing Owner can provide no assurance that the trading program employed by the Trading Advisor will be successful.

(26)

Registrant Allocates 100% of its Assets to One Program of One Trading Advisor

Registrant currently allocates 100% of its assets to trading by Transtrend pursuant to the Diversified Trend Program. As such, Registrant is not subject to diversification that would otherwise occur if Registrant’s assets were allocated to multiple programs of the Trading Advisor or to multiple Trading Advisors utilizing different trading programs. In the event that the Diversified Trend Program experiences a significant loss, or the Trading Advisor experiences a negative occurrence, Registrant’s performance and ability to continue investment operations may be negatively impacted more significantly than if Registrant diversified its assets among multiple programs of the Trading Advisor and/or multiple trading advisors.

(27)

Increase in Assets Under Management May Affect Trading Decisions

The more equity the Trading Advisor manages, the more difficult it may be for the Trading Advisor to trade profitably because of the difficulty of trading larger positions without adversely affecting prices and performance. Accordingly, such increases in equity under management may require the Trading Advisor to modify trading decisions for Registrant that could have a detrimental effect on your investment.

(28)

You Cannot be Assured of the Trading Advisor’s Continued Services Which May Be Detrimental to Registrant

You cannot be assured that the Trading Advisor will be willing or able to continue to provide advisory services to Registrant for any length of time. There is severe competition for the services of qualified trading advisors, and Registrant may not be able to retain satisfactory replacement or additional trading advisors on acceptable terms or the Trading Advisor may require Registrant to pay higher fees in order to be able to retain the Trading Advisor. The Managing Owner may either terminate the Trading Advisor upon 30 days’ prior written notice, or upon shorter notice, if for cause. The Trading Advisor has the right to terminate the Advisory Agreement in its discretion at any time for cause.

(29)

The Trust Agreement Does Not Require the Managing Owner to Maintain a Particular Net Worth or Capital Account

The Operating Agreement does not require the Managing Owner to maintain a particular net worth or capital account. As such, investors may have limited recourse against the Managing Owner in certain circumstances.

(30)

Limited Ability to Liquidate Your Investment

There is no secondary market for the Interests. While the Interests may be redeemed, there are restrictions. For example, Interests may be redeemed only as of the close of business on the last business day of a calendar month provided a Request for Redemption is received at least five business days prior to the end of such month excluding the last business day of the month.

Transfers of Interests are subject to limitations, such as 30 days’ advance notice of any intent to transfer. Also, the Managing Owner may deny a request to transfer if it determines that the transfer may result in adverse legal or tax consequences for Registrant.

(31)

Various Actual and Potential Conflicts of Interest May Be Detrimental to Unitholders

Registrant is subject to actual and potential conflicts of interests involving the Managing Owner, the Trading Advisor, and various brokers. The Managing Owner, the Trading Advisor, and their respective principals, all of which are engaged in other investment activities, are not required to devote substantially all of their time to Registrant’s business, which also presents the potential for numerous conflicts of interest with Registrant. As a result of these and

other relationships, parties involved with Registrant have a financial incentive to act in a manner other than in the best interests of Registrant and its Unitholders. The Managing Owner has not established any formal procedure to resolve conflicts of interest. Consequently, investors will be dependent on the good faith of the respective parties subject to such conflicts to resolve them equitably. Although the Managing Owner attempts to monitor these conflicts, it is extremely difficult, if not impossible, for the Managing Owner to ensure that these conflicts do not, in fact, result in adverse consequences to Registrant.

Registrant may be subject to certain conflicts with respect to its clearing broker, its futures broker, and any executing broker including, but not limited to, conflicts that result from receiving greater amounts of compensation from other clients, purchasing opposite or competing positions on behalf of third party accounts traded through the clearing broker, the futures broker and executing brokers.

Selling agents will be entitled to ongoing compensation as a result of their clients holding Interests, so a conflict exists between their interest in maximizing compensation and in advising their clients to make investment decisions in such clients’ best interests.

(32)

Unitholders Taxed Currently

Unitholders are subject to tax each year on their allocable share of the income or gains (if any) of Registrant, whether or not they receive distributions. Moreover, the Managing Owner does not intend to make any distributions to Unitholders. Consequently, Unitholders will be required either to redeem Interests or to make use of other sources of funds to discharge their tax liabilities in respect of any profits earned by Registrant.

In comparing the profit objectives of Registrant with the performance of more familiar securities in which one might invest, prospective investors must recognize that if they purchased equity or debt, there probably would be no tax due on the appreciation in the value of such holdings until disposition. In the case of Registrant, on the other hand, a significant portion of any appreciation in the Unitholders’ capital accounts must be paid in taxes by the Unitholders every year, resulting in a substantial cumulative reduction in their net after-tax returns. Because Unitholders will be taxed currently on their allocable share of the income or gains of Registrant, if any, Registrant may trade successfully but investors nevertheless would have recognized significantly greater gains on an after-tax basis had they invested in conventional stocks or bonds with comparable performance.

The performance information included in this Memorandum is presented exclusively on a pre-tax basis.

(33)

Limitation on Deductibility of “Investment Advisory Fees”

Non-corporate Unitholders may be required to treat the amount of incentive fees, management fees, and other expenses of Registrant as “investment advisory fees” which may be subject to substantial restrictions on deductibility for federal income tax purposes. In the absence of further regulatory or statutory clarification, the Managing Owner is not classifying these expenses as “investment advisory fees,” but this is a position to which the Internal Revenue Service (the “IRS”) may object. If a substantial portion of the fees and other expenses of Registrant were characterized as “investment advisory fees,” an investment in Registrant might no longer be economically viable.

(34)

Taxation of Interest Income Irrespective of Trading Losses

The Unitholders’ capital accounts reflect the trading profits and losses as well as the interest income earned and expenses incurred by Registrant. However, losses on Registrant’s trading will be almost exclusively capital losses, and capital losses are deductible against ordinary income only to the extent of $3,000 per year in the case of non-corporate taxpayers and cannot be used to offset any ordinary income in the case of a corporate Unitholder. Consequently, if a non-corporate Unitholder had, for example, an allocable trading (i.e., capital) loss of $10,000 in a given fiscal year and allocable interest (i.e., ordinary) income (after reduction for expenses) of $5,000, the Unitholder would have incurred a net loss in its capital account equal to $5,000 but would recognize taxable income of $2,000 (assuming a 40% tax rate). The limited deductibility of capital losses for non-corporate Unitholders could result in such Unitholders having a tax liability in respect of their investment in Registrant despite incurring a financial loss on their Interests.

(35)

Possibility of a Tax Audit of Both Registrant and the Unitholders

There can be no assurance that the tax returns of Registrant will not be audited by the IRS. If such an audit results in an adjustment, Unitholders could themselves be audited as well as being required to pay additional taxes, interest and possibly penalties.

Investors are strongly urged to consult their own tax advisers and counsel with respect to the possible tax consequences to them of an investment in Registrant; such tax consequences may differ in respect of different investors.

(36)

Regulatory Changes or Actions May Alter the Nature of an Investment in Registrant

Considerable regulatory attention has been focused on non-traditional investment pools, in particular commodity pools. There has been significant international governmental concern expressed regarding, for example, (i) the disruptive effects of speculative trading on the central banks’ attempts to influence exchange rates and (ii) the need to regulate the derivatives markets in general. There is a possibility of future regulatory changes altering, perhaps to a material extent, the nature of an investment in Registrant.

The futures markets are subject to comprehensive statutes, regulations, and margin requirements. In addition, the CFTC and the exchanges are authorized to take extraordinary actions in the event of a market emergency, including, for example, the retroactive implementation of speculative position limits or higher margin requirements, the establishment of daily price limits and the suspension of trading. The regulation of futures and forward transactions in the United States is a rapidly changing area of law and is subject to modification by government and judicial action. The effect of any future regulatory change on Registrant is impossible to predict, but could be substantial and adverse.

(37)

Lack of Independent Experts Representing Investors

The Managing Owner has consulted with counsel, accountants and other experts regarding the formation and operation of Registrant. No counsel has been appointed to represent you in connection with the offering of the Interests. Accordingly, you should consult your own legal, tax and financial advisers regarding the desirability of an investment in Registrant.

(38)

Possibility of Termination of Registrant Before Expiration of its Stated Term

Registrant will be dissolved upon the insolvency, bankruptcy, dissolution or withdrawal of the Managing Owner, unless a substitute Managing Owner was obtained in accordance with the Operating Agreement. Additionally, the Managing Owner has the authority to dissolve Registrant in its sole discretion. The occurrence of such an event could cause you to liquidate your investments and upset the overall maturity and timing of your investment portfolio. Additionally, if the registrations with the CFTC or memberships in the NFA of the Managing Owner or the clearing broker were revoked or suspended, such entity would no longer be able to provide services to Registrant.

Item 1B.

Unresolved Staff Comments

None

Item 2.

Properties

Registrant does not own or ~~use~~lease any physical properties in the conduct of its business. Registrant’s only place of business is the place of business of the Managing Owner, located at 900 King Street, Suite 100, Rye Brook, New York 10573.

Certain administrative services are provided by Spectrum Global Fund Administration, L.L.C., Registrant’s administrator ~~(the “Administrator”)~~, which is located at 33 West Monroe, Suite 1000, Chicago, ILIllinois 60603, and 8415 Pulsar Place Suite 400, Columbus, Ohio 43240. In addition, the administrator maintains certain books and records of Registrant, including certain books and records required by CFTC Rule 4.23(a), at its offices located as specified above.

Item 3.

Legal Proceedings

There are no material legal proceedings pending, byon appeal, or ~~against~~ ~~the~~concluded to which Registrant is a party or ~~the~~to ~~Managing~~which ~~Owner~~any of its assets are subject.

Item 4.

Submission of Matters to a Vote of Security Holders

None

PART II

Item 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Selected Financial Data

Information with respect to the offering of Interests is incorporated by reference to from Note 1 toof Registrant’s ~~2008~~2009 Annual Report to this section, which is filed as an exhibit hereto.

A significant secondary market for the Interests has not developed, and it is not expected that one will develop in the future. There are also certain restrictions set forth in the Trust Agreement limiting the ability of a unitholder to transfer Interests. However, redemptions are permitted monthly on at least ~~ten~~five days prior written notice at the then current net asset value per Interest.

There are no material restrictions upon Registrant’s present or future ability to make distributions in accordance with the provisions of the Trust Agreement. No distributions have been made since inception and no distributions are anticipated in the future.

As of ~~January 31~~February 28, ~~2009~~2010, there were ~~210 holders~~194 holders of record owning 3936,~~218~~595.~~986~~7965 Interests, which includes ~~413.830~~0 General Interests.

The Managing Owner has sole discretion in determining what distributions, if any, Registrant will make to Unitholders. Registrant has never declared a dividend and does not intend to do so in the future. Registrant did not repurchase any Interests registered pursuant to Section 12 of the Exchange Act during the period January 1, 2009 through December 31, 2009.

Item 6.

Selected Financial Data

The following selected financial data of the Trust has been derived from the Trust’s audited financial statements. This data should be read in conjunction with the financial statements of the Registrant and the notes thereto on pages 72 to 1918 of the Registrant’s ~~2008~~2009 Annual Report, which is filed as an exhibit hereto.

	Year Ended December 31,
	2008			2007			2006			2005			2004
	2009				2008			2007			2006		2005
Total revenues (including interest)	$	2(618,~~715,984~~073	)	$	~~1,806,665~~$	2,715,984	$	~~1,212,174~~$	1,806,665	$	~~51,214~~$	1,212,174	$	251,~~095,871~~214
Net income (loss)	$	(1,~~459~~364,~~895~~329	)		~~854,689~~$	1,459,895		~~286,637~~$	854,689		~~(1,852,664~~$	)286,637	$	(~~709~~1,~~503~~852,664	)
Net income (loss) per weighted average Interest	$	34.81			16.98			3.64			(11.19	)		(3.20	)
Net income (loss) per weightedaverage Interest	$	(35.70	)		$	34.81		$	16.98		$	3.64	$	(11.19	)
Total assets	$	64,~~524~~668,~~582~~049			~~5,800,915~~$	6,524,582		~~6,551,514~~$	5,800,915		~~12,001,911~~$	6,551,514	$	2312,~~048~~001,~~908~~911
Net asset value per Interest	$	~~156~~120.1046			~~120.83~~$	156.10		~~103.43~~$	120.83		~~97.86~~$	103.43	$	~~108~~97.0486

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of ~~Operation~~Operations

Critical Accounting Policies

~~Preparation~~General of the financial statements and related disclosures in compliance with accounting principles generally accepted in the United States of America requires the application of appropriate accounting rules and guidance. Applying these policies requires the Managing Owner to make judgments, estimates and assumptions in connection with the preparation of Registrant’s financial statements. Actual results may differ from the estimates used.

~~The~~Preparation ~~Managing~~of ~~Owner~~the ~~has evaluated Registrant’s~~ financial statements and related disclosures ~~and~~in ~~has~~compliance ~~determined~~with ~~that~~accounting principles generally accepted in the ~~policies~~United ~~discussed~~States ~~below~~of ~~are~~America ~~critical~~(“U.S. ~~accounting~~GAAP”) ~~policies~~requires ~~because~~the ~~they~~application ~~involve~~of ~~estimates,~~appropriate ~~judgments~~accounting rules and ~~assumptions~~guidance. ~~that~~Applying ~~are~~these ~~particularly complex,~~policies ~~subjective~~requires orthe ~~uncertain.~~Managing ~~For~~Owner ~~further~~to ~~discussion~~make ofjudgments, ~~Registrant’s~~estimates ~~significant~~and ~~accounting~~assumptions ~~policies,~~in ~~see~~connection ~~Note~~with 1the topreparation of Registrant’s financial statements. ~~for~~Actual ~~the~~results ~~year~~may ~~ended~~differ ~~December 31,~~from ~~2008,~~the ~~which~~estimates ~~is filed as an exhibit herewith~~used.

1113

The ~~valuation~~Managing ofOwner has evaluated Registrant’s ~~investments~~financial ~~that~~statements ~~are~~and related ~~not~~disclosures ~~traded~~and onhas adetermined ~~United~~that ~~States~~the ~~(“US”)~~policies ~~or internationally~~discussed ~~recognized~~below ~~futures~~are ~~exchange is a~~ critical accounting ~~policy.~~policies ~~The~~because ~~market~~they ~~values~~involve ~~of futures (exchange traded) contracts is verified by Registrant’s administrator~~estimates, ~~which~~judgments ~~obtains~~and ~~valuation~~assumptions ~~data~~that ~~from~~are ~~third~~particularly ~~party data providers such as Bloomberg~~complex, ~~Reuters,~~subjective ~~and~~or ~~super~~uncertain. ~~derivatives~~For ~~and~~further ~~compares~~discussion ~~those prices with~~ of Registrant’s ~~clearing~~significant ~~broker.~~accounting ~~The~~policies, ~~market~~see ~~value~~Note of1 ~~currency swap and forward (non-exchange traded) contracts is extrapolated on a forward basis from the spot prices quoted as~~ of 4Registrant’s PM2009 onAnnual ~~the~~Report, ~~last~~attached ~~business day of the reporting period~~hereto. ~~All values assigned by the administrator and confirmed by the Managing Owner are final and conclusive as to all of Registrant’s Unitholders.~~

The valuation of Registrant’s investments that are not traded on a United States (“US”) or internationally recognized futures exchange is a critical accounting policy. The market values of futures (exchange traded) contracts is verified by Registrant’s administrator, which obtains valuation data from third party data providers such as Bloomberg, Reuters and Super Derivatives and compares those prices with Registrant’s clearing broker. The market value of currency swap and forward (non-exchange traded) contracts is extrapolated on a forward basis from the spot prices quoted as of 4 p.m. on the last business day of the reporting period. All values assigned by the administrator and confirmed by the Managing Owner are final and conclusive as to all of Registrant’s Unitholders.

As such, if actual results vary from estimates used, they are not anticipated to have a material impact on the financial statements and related disclosures.

Registrant records all investments at fair value in its financial statements, with changes in fair value reported as a component of ~~Revenues-Unrealized or~~ Trading ~~Gains~~ Profits (Losses)~~-Change~~ in ~~Unrealized in~~ the Statements of Operations. Generally, fair values are based on quoted market prices; however, in certain circumstances, significant judgments and estimates are involved in determining fair value in the absence of an active market closing price. Registrant considers prices for exchange traded commodity futures and options contracts to be based on quoted prices in active markets for identical assets (Level 1). The values of forwards, swaps, and certain option contracts for which market quotations are not readily available are priced by ~~third~~Super ~~party~~Derivatives, ~~data providers such as~~ Bloomberg, Reuters and/ or ~~Super~~other ~~Derivatives~~third party data providers who derive fair values for those assets from observable inputs (Level 2). Level 3 inputs reflect Registrant’s assumptions that it believes market participants would use in pricing the asset or liability. Registrant develops Level 3 inputs based on the best information available in the circumstances, which may include indirect correlation to a market value, combinations of market values or Registrant’s proprietary data. Level 3 inputs generally include information derived through extrapolation or interpolation of observable market data. Registrant does not currently have any investments valued using Level 3 inputs.

InOf ~~July 2006,~~ the ~~Financial~~Registrant’s ~~Accounting~~unrealized ~~Standards~~gains ~~Board (“FASB”) issued FASB Interpretation No.~~at December 4831, ~~“Accounting~~2009, ~~for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109” (“FIN 48”)~~$72,225 ~~which~~or ~~clarifies the accounting for uncertainty in tax positions~~91.94% ~~FIN 48 requires that Registrant recognize in its financial statements the impact~~ of ~~a tax position if that position is more likely than not of being sustained on audit, based on~~ the ~~technical~~Registrant’s ~~merits~~unrealized ofgains ~~the~~at ~~position. The provisions of FIN 48 were effective for fiscal years beginning after~~ December 1531, ~~2006,~~2009 ~~with the~~are ~~cumulative~~classified ~~effect~~as ofLevel ~~the~~1 ~~change~~and in$6,328 ~~accounting~~or ~~principle~~8.06% ~~recorded~~ as anLevel ~~adjustment to opening retained earnings~~2. ~~In connection with the adoption of FIN 48~~$215,655 ~~Registrant has elected an accounting policy to classify interest and penalties related to unrecognized tax benefits as interest~~ or ~~other expense~~25.27% ~~The Managing Owner evaluated the impact~~ of ~~adopting FIN 48 on~~ Registrant’s ~~financial~~unrealized ~~statements.~~gains ~~The~~at ~~adoption~~December 31, 2008 ofare ~~FIN~~classified 48as ~~had~~Level no1 ~~material~~and ~~impact~~$638,493 onor ~~Registrant,~~74.73% as ~~Registrant’s~~Level ~~tax positions~~2. There are ~~based~~no onLevel ~~established~~3 ~~tax~~investments ~~precedence~~at ~~for~~December 31, 2009 ~~the~~or ~~tax treatment of investment partnerships as flow through tax entities~~2008.

InInvestments ~~September~~classified ~~2006,~~as ~~the FASB~~Level ~~issued~~2 ~~SFAS~~at ~~No.~~December ~~157~~31, ~~(“SFAS~~2008 ~~157”),~~represented ~~“Fair~~the ~~Value~~Registrant’s ~~Measurements”.~~investment ~~SFAS~~in ~~157~~the ~~requires~~Trading ~~use~~Vehicle ofand awere ~~fair~~valued monthly at the net asset value ~~hierarchy~~as ~~that~~reported ~~prioritizes~~by the ~~inputs~~Trading Vehicle. toThe ~~valuation~~Trading ~~techniques~~Vehicle’s ~~used~~net toasset ~~measure~~value was determined based upon its management’s best estimate of the fair value ~~into~~of ~~three~~its ~~levels: quoted~~underlying ~~market~~net ~~prices~~assets, insubstantially ~~active~~all ~~markets~~of ~~for~~which ~~identical~~are ~~assets~~investments ~~and~~valued ~~liabilities~~using (Level 1), inputs ~~other~~but ~~than~~include certain ~~quoted~~assets ~~market~~and ~~prices~~liabilities ~~that~~where ~~are~~the ~~observable~~inputs ~~for~~into the ~~asset~~determination orof ~~liability,~~fair ~~either~~value ~~directly~~require management judgment or ~~indirectly~~estimation. ~~(Level~~The ~~2),~~Managing ~~and~~Owner ~~unobservable~~determined ~~inputs~~that ~~for~~certain of the Trading Vehicle’s assets and liabilities which require management ~~asset~~judgment or ~~liability~~estimation ~~(Level~~were ~~3).~~not ~~SFAS~~material ~~157~~to isthe ~~effective~~Registrant’s ~~for~~ financial statements ~~issued~~and ~~for~~therefore ~~fiscal~~the ~~years~~Registrant’s ~~beginning~~investment ~~after~~in ~~November~~the Trading Vehicle should be classified as Level 2 at December 1531, ~~2007~~2008.

~~Registrant adopted~~In ~~SFAS~~April ~~157~~2009, in the ~~first~~Financial ~~quarter~~Accounting ofStandards ~~2008.~~Board ~~The~~(“FASB”) ~~adoption~~issued accounting guidance clarifying the application of ~~SFAS~~Accounting ~~157~~Standards ~~had~~Codification no(“ASC” ~~impact~~or to“Codification”) ~~the~~Topic ~~items~~820, ~~required~~“Fair toValue beMeasurements ~~carried~~and atDisclosures.” The additional guidance provides for how the fair value ~~(investments)~~of ina ~~Registrant’s~~ financial ~~statements.~~asset or ~~$215,655~~liability oris ~~25.27%~~determined ofwhen the ~~Registrant’s~~volume ~~investments at~~and ~~December 31,~~level ~~2008~~of ~~are~~activity ~~classified~~for asthe ~~Level~~asset 1,or ~~$638,493~~liability orhave ~~74.73%~~significantly ~~are~~decreased ~~classified~~and ason ~~Level~~identifying 2circumstances ~~and~~that $0indicate ora ~~0.00%~~transaction ~~are~~is ~~classified~~not asorderly. ~~Level~~The 3guidance ~~using~~was ~~the~~effective ~~fair~~for ~~value~~interim ~~hierarchy~~and ofannual periods ~~SFAS~~after ~~157.~~June 15, ~~$229~~2009,~~997~~ orwith ~~6.30%~~early ofadoption ~~the~~permitted ~~Registrant’s~~for ~~investments~~periods ~~at December~~ending after March 3115, ~~2007~~2009, ~~are~~and ~~classified~~is asto ~~Level~~be applied prospectively. The Registrant adopted the guidance effective January 1, $42009. As required,~~720~~ orthe ~~0.13%~~Registrant ~~are~~also adopted ~~classified~~guidance asrelating ~~Level~~to 2recognition and $3presentation of other-than-temporary impairments,~~418,171~~ oreffective 93January 1, 2009.~~57%~~ ~~are~~The ~~classified~~adoption asof ~~Level~~these 3pronouncements ~~using~~did ~~the~~not ~~fair~~have ~~value~~an ~~hierarchy~~impact ofon ~~SFAS 157.~~the Registrant’s financial statements.

~~Changes~~In inMarch 2008, the ~~Level~~FASB 3issued ~~fair~~accounting ~~value~~guidance ~~category~~which ~~for~~established ~~the~~among ~~note~~other ~~receivable~~things, ~~Managing~~the ~~Owner~~disclosure requirements ~~(see~~for ~~Note~~derivative 1)instruments ofand ~~the~~for ~~Registrant’s~~hedging activities. The guidance is effective for financial statements issued for fiscal years and interim periods beginning after November 15, ~~included~~2008. inThe ~~the~~ Registrant’s ~~2008~~adoption ~~Annual~~of ~~Report~~the guidance effective January 1, ~~result~~2009 ~~from~~did not have a ~~pre-payment~~material ofimpact ~~$1,100,000~~on ~~and~~the aRegistrant’s ~~transfer~~financial ~~out~~statements, ofother ~~Level~~than 3enhanced ~~and~~disclosures ~~investments~~as ofdiscussed ~~$585,193,~~under ~~reducing~~Note ~~the~~2 ~~balance~~of inRegistrant’s ~~investments~~2009 toAnnual ~~zero~~Report.

~~Investments~~Effective classified as Level 2 and Level 3 under SFAS 157 represent the Registrant’s investment in the Trading Vehicle and are valued monthly at the net asset value as reported by the Trading Vehicle. The Trading Vehicle’s net asset value is determined based upon its management’s best estimate of the fair value of its underlying net assets, substantially all of which are investments valued using Level 1 inputs but include certain assets and liabilities where the inputs into the determination of fair value require management judgment or estimation. The Managing Owner determined that certain of the Trading Vehicle’s assets and liabilities which require management judgment or estimation were not material to the Registrant’s financial statements and therefore the Registrant’s investment in the Trading Vehicle should be classified as Level 2 at December 31, 2008. For the Registrant’s investment in the Trading Vehicle, a table presenting the changes in the Level 2 and Level 3 fair value category for the ~~years~~quarter ended ~~December~~June 3130, ~~2008~~2009, ~~and 2007 is provided in Note 5 of~~ the Registrant’s ~~financial~~adopted ~~statements,~~ASC ~~included~~Topic in855, ~~the~~“Subsequent ~~Registrant’s~~Events” ~~2008~~which ~~Annual~~provides ~~Report.~~guidance Ofto ~~the~~establish ~~$224,679~~general ~~and~~standards ~~$243,819~~ of ~~income~~accounting for ~~the years ended December 31, 2008~~ and ~~2007,~~disclosures ~~respectively,~~of ~~reported~~events asthat ~~Level~~occur 2after ~~and Level 3 investments in Note 5, $(7,948) and $59,180, respectively, represent a change in unrealized gain (loss) allocated from~~ the ~~Trading Vehicle on the Registrant’s statements of operations.~~ balance

In14 October 2008, the FASB issued FASB Staff Position FAS 157-3, “Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active” (“FSP FAS 157-3”). FSP FAS 157-3 clarified the application of SFAS 157. FSP FAS 157-3

~~demonstrated~~sheet ~~how~~date ~~the~~but ~~fair~~before ~~value of a~~ financial ~~asset is determined when the market for that financial asset is inactive. FSP FAS 157-3 was effective upon issuance, including prior periods for which financial~~ statements ~~had~~are ~~not been~~ issued. ~~The~~or ~~Managing~~are ~~Owner~~available ~~evaluated~~to ~~the~~be ~~impact of adopting FSP FAS 157-3 and its impact on the Registrant’s financial statements~~issued. The adoption of ~~this~~ASC ~~standard~~Topic 855 did not have ana material impact on the Registrant’s financial statements.

InEffective ~~February~~July 1, ~~2007~~2009, the ~~FASB~~Registrant ~~issued~~adopted ~~SFAS~~ASC ~~No. 159~~Topic (105, “~~SFAS~~Generally ~~159”),~~Accepted Accounting ~~“The~~Principles”. ~~Fair~~ASC ~~Value~~Topic ~~Option~~105 ~~for~~establishes ~~Financial~~the ~~Assets~~FASB ~~and~~Accounting ~~Financial~~Standards ~~Liabilities”,~~Codification ~~including~~as anthe ~~amendment~~source of ~~SFAS~~authoritative ~~115.~~accounting ~~This~~principles ~~statement~~recognized ~~provides~~by ~~companies~~the ~~with~~FASB ~~an option~~ to ~~report~~be ~~selected~~applied ~~financial~~by ~~assets~~non-governmental ~~and~~entities ~~liabilities~~in atthe ~~fair~~preparation ~~value.~~of ~~This~~financial ~~statement~~statements isin ~~effective~~conformity ~~for fiscal years beginning after November 15, 2007~~ with ~~early~~U.S. ~~adoption permitted~~GAAP. ~~The~~Rules ~~Managing~~and ~~Owner~~interpretive ~~evaluated~~releases of the ~~impact~~SEC ofunder ~~adopting~~authority ~~SFAS~~of ~~159~~federal ~~and~~securities ~~its~~laws ~~impact~~are onalso ~~the~~sources ~~Registrant’s~~of ~~financial~~authoritative ~~statements~~U.S. ~~The~~GAAP ~~Registrant~~for ~~adopted SFAS~~SEC ~~159~~registrants. ~~during~~The ~~the~~Codification ~~first quarter of 2008, and it~~ did not ~~have~~change aU.S. ~~material~~GAAP ~~effect~~but onreorganizes the existing ~~Registrant’s~~literature ~~financial~~into ~~statements,~~Topics. asReferences ~~the~~for ~~Registrant~~FASB ~~did~~guidance ~~not~~throughout ~~elect~~this ~~the~~document ~~fair~~have ~~value~~been ~~option~~updated for ~~any~~the ~~eligible financial assets or liabilities~~Codification.

InOn ~~April~~September 30, ~~2007~~2009, the FASB ~~released~~issued ~~FASB~~Accounting ~~Staff~~Standards ~~Position~~Update ~~FIN~~(“ASU”) No. 392009-112, ~~“Offsetting~~Investments ofin ~~Amounts~~Certain ~~Related~~Entities toThat ~~Certain~~Calculate ~~Contracts”~~Net Asset Value per Share (~~“FSP~~or ~~FIN~~its Equivalent) 39(“ASU 2009-112”). ~~FSP~~ ~~FIN~~ASU 392009-112 ~~requires~~provides ~~that~~guidance ~~offsetting~~on ofmeasuring ~~assets~~the ~~and~~fair ~~liabilities~~value inof ~~the~~certain ~~balance~~alternative ~~sheet~~investments, isand ~~improper~~amends ~~except~~ASC ~~where~~Topic a820 ~~right~~to ofoffer ~~setoff~~investors ~~exists.~~a ~~The~~practical ~~application~~means offor ~~FSP~~measuring ~~FIN~~the ~~39-1~~fair isvalue ~~required~~of ~~for~~investments ~~fiscal~~in certain ~~years~~entities ~~beginning~~that ~~after~~calculate ~~November 15,~~net ~~2007~~asset value and ~~interim period~~require ~~within~~certain ~~those fiscal years~~disclosures. ~~The~~ASU ~~Managing~~2009-12 ~~Owner~~is ~~evaluated~~effective ~~the~~for ~~impact~~periods ofended ~~adopting~~after ~~FSP~~December 15, ~~FIN~~2009, ~~39-1~~ and ~~its~~early ~~impact~~adoption onis ~~the Registrant’s financial statements~~permitted. The adoption of ~~this~~ASU ~~standard~~2009-12 did not have an impact on the Registrant’s financial statements.

In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities - an amendment of FASB Statement No. 133” (“SFAS 161”). SFAS 161 establishes, among other things, the disclosure requirements for derivative instruments and for hedging activities. SFAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The Managing Owner evaluated the impact of adopting SFAS 161 and its impact on the Registrant’s financial statements. The adoption of this standard will not have an impact on the Registrant’s financial statements.

Liquidity and Capital Resources

Registrant commenced operations on May 22, 1997. Contributions were raised through the initial and continuous offering of limited interests (“Limited Interests”) and general interests (“General Interests” and, together with the Limited Interests, “Interests”) of beneficial ownership in Registrant through February 28, 2006. The continuous offering period ended on February 28, 2006.

Subscriptions ~~of General Interests for the years ended December 31, 2008, 2007~~ and ~~2006~~Redemptions ~~were $0, $0 and $0, respectively. Subscriptions of Limited Interests for the years ended December 31, 2008, 2007 and 2006 were $0, $0 and $5,004, respectively.~~

~~Interests~~Year inEnded ~~Registrant may be redeemed on a monthly basis. Redemptions of Limited Interests for the years ended~~ December 31, ~~2008, 2007 and 2006 were $681,742, $1,280,287 and $5,631,248, respectively. Redemptions of General Interests for the years ended December 31, 2008, 2007 and~~2009 2006 were $18,660, $13,810 and $47,205, respectively. Future redemptions will impact the amount of funds available for investment in commodity contracts and in the Trading Vehicle in subsequent periods.

AtSubscriptions ~~December 31, 2008, 100.00%~~ of ~~Registrant’s~~Limited ~~net~~Interests ~~investable~~and ~~assets~~General ~~were~~Interests ~~allocated~~for tothe ~~commodities~~year ~~trading~~ended ~~(either~~December 31, ~~directly~~2009 orwere ~~through its investment in the~~$0 ~~Trading~~and ~~Vehicle). A significant portion of Registrant’s net assets invested in the Trading Vehicle was held in cash~~$0, ~~which was used as margin for trading in commodities~~respectively. InRedemptions ~~as much as the sole business~~ of ~~Registrant~~Limited isInterests ~~to trade in commodities, Registrant continues to own such liquid assets to be used as margin. The clearing broker~~ and ~~bank~~General ~~credit~~Interests ~~Registrant~~for ~~(directly or through~~ the ~~Trading~~year ~~Vehicle)~~ended ~~with~~December 31, ~~interest~~2009 ~~income~~were on$256,199 ~~100% of its average daily equity maintained in its accounts with the clearing broker~~ and ~~bank during each month at competitive interest rates~~$60,418, respectively.

~~The~~Year ~~commodities~~Ended ~~contracts may be subject to periods of illiquidity because of market conditions~~December 31, ~~regulatory~~2008 considerations and other reasons. For example, commodity exchanges limit fluctuations in certain commodity futures contract prices during a single day by regulations referred to as “daily limits.” During a single day, no trades may be executed at prices beyond the daily limit. Once the price of a futures contract for a particular commodity has increased or decreased by an amount equal to the daily limit, positions in the commodity can neither be taken nor liquidated unless traders are willing to effect trades at or within the limit. Commodity futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. Such market conditions could prevent the Registrant (directly or through the Trading Vehicle) from promptly liquidating its commodity futures positions.

~~Since~~Subscriptions ~~Registrant’s~~of ~~business~~Limited isInterests ~~to trade futures~~ and ~~forward~~General ~~contracts~~Interests ~~(directly~~for ~~and through its investment in~~ the ~~Trading~~year ~~Vehicle)~~ended December 31, ~~its~~2008 ~~capital~~were is$0 at risk due to changes in the value of these contracts (market risk) or the inability of counterparties to perform under the terms of the contracts (credit risk). Registrant’s exposure to market risk is influenced by a number of factors including the volatility of interest rates and ~~foreign currency exchange rates~~$0, ~~the liquidity of the markets in which the contracts are~~ ~~traded and the relationships among the contracts held~~respectively. ~~The~~Redemptions ~~inherent uncertainty~~ of ~~Registrant’s~~Limited ~~speculative~~Interests ~~trading~~and asGeneral ~~well~~Interests asfor the ~~development~~year ofended ~~drastic~~December 31, ~~market~~2008 ~~occurrences~~were ~~could~~$681,742 ~~result in losses considerably beyond Registrant’s experience to date~~ and ~~could ultimately lead to a loss of all or substantially all of investors’ capital~~$18,660, respectively. ~~The Managing Owner attempts to minimize these~~

13Year Ended December 31, 2007

Subscriptions of Limited Interests and General Interests for the year ended December 31, 2007 were $0 and $0, respectively. Redemptions of Limited Interests and General Interests for the year ended December 31, 2007 were $1,280,287 and $13,810, respectively.

Future redemptions will impact the amount of funds available for investment in commodity contracts in subsequent periods.

Liquidity

At December 31, 2009, 100% of Registrant’s net investable assets were allocated to commodities trading. A significant portion of Registrant’s net assets is held in cash, which is used as margin for trading in commodities. In as much as the sole business of Registrant is to trade in commodities, Registrant continues to own such liquid assets to be used as margin. The clearing broker and bank credit Registrant with interest income on 100% of its average daily equity maintained in its accounts with the clearing broker and bank during each month at competitive interest rates.

The commodities contracts may be subject to periods of illiquidity because of market conditions, regulatory considerations and other reasons. For example, commodity exchanges limit fluctuations in certain commodity futures contract prices during a single day by regulations referred to as “daily limits.” During a single day, no trades may be executed at prices beyond the daily limit. Once the price of a futures contract for a particular commodity has increased or decreased by an amount equal to the daily limit, positions in the commodity can neither be taken nor liquidated unless traders are willing to effect trades at or within the limit. Commodity futures prices have occasionally moved the daily

~~risks~~limit byfor ~~requiring~~several ~~Registrant,~~consecutive ~~the~~days ~~Trading~~with ~~Vehicle~~little ~~and~~or ~~the~~no ~~Trading Advisor to abide by various~~ trading ~~limitations and policies, which include limiting margin amounts, trading only in liquid markets and permitting the use of stop loss provisions~~. ~~For~~Such amarket ~~further~~conditions ~~discussion~~could ofprevent the ~~credit~~Registrant ~~and~~from ~~market~~promptly ~~risks~~liquidating ~~associated~~its ~~with~~commodity ~~Registrant’s~~ futures ~~and forward contracts, see Note 7 to Registrant’s financial statements for the year ended December 31, 2008, which is filed as an exhibit herewith~~positions.

Since Registrant’s business is to trade futures, forward and option contracts, its capital is at risk due to changes in the value of these contracts (market risk) or the inability of counterparties to perform under the terms of the contracts (credit risk). Registrant’s exposure to market risk is influenced by a number of factors including the volatility of interest rates and foreign currency exchange rates, the liquidity of the markets in which the contracts are traded and the relationships among the contracts held. The inherent uncertainty of Registrant’s speculative trading as well as the development of drastic market occurrences could result in losses considerably beyond Registrant’s experience to date and could ultimately lead to a loss of all or substantially all of investors’ capital. The Managing Owner attempts to minimize these risks by requiring Registrant and the Trading Advisor to abide by various trading limitations and policies, which include limiting margin amounts, trading only in liquid markets and permitting the use of stop loss provisions. For a further discussion of the credit and market risks associated with Registrant’s futures, forward and option contracts, see Note 7 to Registrant’s 2009 Annual Report, which is filed as an exhibit herewith.

Registrant does not have, nor does it expect to have, any capital assets.

Market Overview

Following is a market overview for the years ended December 31, ~~2008~~2009, December 31, ~~2007~~2008 and December 31, ~~2006~~2007:

~~The~~Year ~~Trust~~Ended ~~incurs substantial charges from the payment of Profit Shares to the Trading Advisors~~December 31, ~~the~~2009 Incentive Fees and Brokerage Commissions to Preferred, and operating, selling, administrative and miscellaneous execution costs. Brokerage Commissions are payable upon the Net Asset Value of the Trust and are payable without regard to profitability of the Trust. As a result, it is possible that the Trust may incur a net loss when trading profits are not substantial enough to avoid depletion of the Trust’s assets from such fees and expenses. Thus, due to the nature of the Trust’s business, the success of the Trust 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~~year ~~paragraphs~~began amid ~~present~~a precipitous decline in global economic activity and a ~~summary~~continued ofplunge ~~the~~in ~~Trust’s operations~~risk ~~for~~assets. ~~the~~However, ~~calendar~~an ~~years~~unprecedented, ~~2008~~massive, ~~2007~~concerted ~~and~~effort ~~2006.~~by Itpolicymakers isaround ~~important~~the toworld ~~note,~~eventually ~~however,~~took ~~that~~effect. The U.S. Federal Reserve (i) the “Fed”) ~~Trading~~vastly ~~Advisors~~expanded ~~trade~~its inlender ~~various~~of ~~markets~~last atresort ~~different~~operations ~~times~~by ~~and~~accepting ~~that~~a ~~prior~~wide ~~activity~~range inof collateral through its discount window as well as through a ~~particular~~variety ~~market~~of ~~does~~programs ~~not~~designed ~~mean~~at ~~that~~various ~~such~~secondary markets ~~will~~. beFurthermore, ~~actively~~the ~~traded~~Fed embarked byon a ~~Trading~~vast ~~Advisor~~expansion orof ~~will~~its bebalance ~~profitable~~sheet, inalso called quantitative easing, to pump excess reserves into the ~~future~~system. ~~and~~Meanwhile, ~~(ii)~~ the ~~Trading~~U.S. ~~Advisors~~Treasury ~~trade~~bailed ~~independently~~out ofGeneral ~~each~~Motors ~~other~~after ~~using~~already ~~different~~having ~~trading~~taken ~~systems~~over Fannie Mae and ~~may~~Freddie ~~trade~~Mac ~~different~~in ~~markets~~late 2008. ~~with~~The ~~various~~U.S. ~~concentrations~~was ~~at various~~not ~~times~~the only government stepping on the policy gas. ~~Consequently~~Others followed suit, ~~the~~with ~~results~~varying degrees of ~~operations~~stimuli. ofThe UK was equally, if not more, aggressive than the ~~Trust~~U.S. ~~can~~The ~~only~~European beCentral ~~discussed~~Bank invastly expanded the ~~context~~scope of ~~the~~its operations. ~~overall~~China ~~trading~~launched ~~activities~~a massive stimulus program consisting of a ramp up in infrastructure spending. Overall, the ~~Trust~~global monetary and fiscal stimuli were unprecedented in scale and scope. Eventually, the ~~Trading~~markets ~~Advisors’~~began ~~trading~~to ~~activities~~recognize onthat policymakers ~~behalf~~were unlikely to countenance a complete collapse of economic activity. The realization that the ~~Trust~~Great asDepression aMark ~~whole~~II ~~and~~would ~~how~~be avoided was enough to power the ~~Trust~~ ~~has~~steepest ~~performed~~rally insince the ~~past~~1930s.

While a catastrophe was avoided, the U.S. economic performance nonetheless turned out to be the worst in the postwar era. The ~~Year~~U.S. ~~Ended~~economy ~~December~~lost 4.2 31million jobs and the unemployment rate skyrocketed to cross the 10% threshold. The first six months of the year witnessed a massive 3.5 million in job losses. Motor vehicle sales plunged to their lowest level since 1981 and retail sales at one point during the year showed a 10% year-over-year decline. The household sector was in retrenchment mode, ~~2008~~consumer credit suffered its steepest decline since WWII and overall household debt experienced its first decline since the record began in 1952. However, by mid year, many of the indicators started to stabilize. Housing was the first to offer a glimmer of hope. New and existing home sales and housing starts bottomed in the first quarter. More importantly, the Case-Shiller Index reported that home prices rose for five consecutive months after the trough in February. Auto sales, initially boosted by the U.S. government’s cash-for-clunkers policy, settled at well above their lows. Toward year-end, even the employment situation displayed slight improvement.

~~2008~~After ~~was~~ a ~~watershed~~stellar ~~year~~2008, ~~for~~U.S. Treasuries ~~the~~turned ~~world~~out ~~economy~~mediocre ~~and~~performance ~~the~~in ~~financial industry~~2009. ItWhile ~~marked~~ the ~~end~~two-year ofshowed ana ~~era~~small ~~for~~gain, ~~the~~Treasuries ~~world economy - an era~~ of ~~rising~~maturities ~~leverage,~~five ~~bloated~~years ~~balance~~or ~~sheets,~~greater ~~inflated~~gave ~~asset~~up ~~valuations,~~some ~~and~~ground. ~~above all,~~The alosses ~~dangerously~~in ~~unbalanced~~the ~~international~~five ~~economic~~ and ~~financial~~ten-year ~~arrangement~~were ~~that~~modest ~~was~~but ~~heavily reliant on~~ the ~~American~~thirty-year ~~consumer~~lost ~~as the buyer of last resort~~approximately 14.9%. The ~~financial~~Fed ~~market~~kept ~~upheavals~~rates ofunchanged throughout the ~~past~~ year, ~~rivaled~~as ~~only~~subdued byinflation ~~those~~and ofstill-high ~~the~~unemployment ~~Great Depression,~~gave ~~smashed~~ the ~~aging~~Fed ~~edifice~~enough ofreason ~~the~~not ~~old~~to ~~era.~~take ~~The~~its ~~pain~~foot ~~was~~off ~~all~~ the ~~more~~monetary ~~acute~~pedal. ~~for~~Central ~~the~~banks ~~financial~~in ~~sector,~~much ~~where~~of the ~~yearlong~~advanced ~~nightmare~~world ~~was~~maintained ~~topped off by~~ the ~~eruption~~status ofquo throughout the ~~Bernie Madoff scandal~~year. ~~Thanks~~Australia towas ~~the~~a ~~dramatic~~notable ~~monetary and fiscal policy moves worldwide~~exception, ~~most~~hiking ~~notably~~rates bythree ~~the~~times USlate ~~Federal~~in ~~Reserve,~~ the USyear isin ~~unlikely to repeat~~ the ~~Depression~~face of ~~the~~strengthening ~~1930’s.~~demand ~~However~~for commodities, ~~the~~an ~~liquidity~~improving ~~environment~~labor ismarket ~~likely to remain challenged~~ and a ~~sustainable economic~~ recovery ~~may~~in ~~well not begin until 2010~~housing.

Currencies: The Dollar Index, which measures the U.S. dollar against a basket of currencies, started 2009 on a high note as the global risk aversion bolstered the demand for the dollar as a safe haven. However, as financial conditions stabilized, the dollar began to lose ground and the slump continued as the rally in risk assets gathered steam and eventually the economic recovery began to take hold. The dollar rallied smartly in December but still ended the year down approximately 5.2%. The greenback declined against all the major currencies, except the Japanese yen. The dollar’s largest declines came against the Australian, Canadian and New Zealand dollars as the recovery in commodities

and rising interest rates boosted those currencies. The euro recorded a solid gain against the dollar, rising approximately 3.0%. Emerging market currencies by and large enjoyed solid gains.

Energies: Crude oil continued the downtrend early in year before hitting a trough in February. Thereafter, the Organization of the Petroleum Exporting Countries’ production cuts and increasing evidence of Chinese-led Asian inventory restocking demand bolstered crude. As the year progressed, stabilization in U.S. demand assisted in crude’s overall positive performance as well and crude ended the year up nearly 77.9%. Reformulated gasoline outperformed crude, rising approximately 103.6% as U.S. transportation demand stabilized and then increased. Heating oil posted a solid gain of approximately 50.7% as unusually cold weather toward year end helped boost gains. Cold weather helped natural gas as well, but not enough to prevent it from recording a loss for the year. In September, natural gas had slumped to a seven-year low amid rising production and surging inventories.

Indices: Global equity performance in 2009 was a welcome and stark contrast to that of 2008. The year started off poorly, with the S&P 500 hitting a twelve-year low. At that point, the forty-year total return on the index fell below that of the ten-year bond for the first time. However, unnoticed by many, the dividend yield on the S&P 500 had edged up past the ten-year yield, something that had not occurred since the mid 1950s. From that trough, stocks staged their largest rally since the 1930s, led by financials. For the year as a whole, the S&P 500, Dow Jones Industrial Average and the NASDAQ gained approximately 23.5%, 18.8% and 43.9%, respectively. In Europe, the DAX, CAC and FTSE experienced even larger rallies, posting gains of 23.9%, 22.3% and 25.0%, respectively. Of the three majors in Asia, the Kospi and the Hang Seng surged powerfully, rising 49.7% and 52.0%, respectively, while the Nikkei posted a respectable 19.0% gain. Australia and New Zealand witnessed sharp gains as well. Emerging economy stocks as whole had a V-shaped recovery, the MSCI Emerging Market Index rose 66.2% for the year.

Metals: Precious and base metals recorded impressive performance in 2009. While gold made headlines, copper actually led the way, gaining 138.5%, followed by zinc, which rose 111.9%. In fact, the entire base metals complex outperformed gold. Nickel and aluminum posted gains of 58.3% and 44.8%, respectively. Gold itself rose 24.0%, although a selloff in December took some shine off the yellow metal. Silver recorded a hefty 49.3% gain.

Agriculturals: Agricultural commodities had a mixed year and grains in general underperformed the rest of the commodity complex. For 2009, the S&P GSCI Grains Index posted a 10.3% loss, compared with the 13.5% gain for S&P GSCI overall. Wheat was the worst performer, not only within the grains complex but among major commodities as well, as it lost 11.3% for the year. Notwithstanding the gyrations caused by weather throughout the year, a wet spring delayed planting, a cool summer then slowed development of these crops, and finally a wet cold fall severely delayed harvesting. Ample production and storage overhang from 2008 weighed on wheat and on the grain sector. Corn and soybeans gained modestly, rising 1.8% and 6.9%, respectively. The recovery in biofuel demand helped support corn and soybeans. Live cattle increased 1.8% and hogs gained 7.8%.

Softs: Sugar was the star performer in 2009, recording a 128.2% gain and increasing to its highest level since 1980. Massive production shortfall in India, the world’s largest consumer of sugar and the second biggest producer, created the perfect condition for sugar’s meteoric rise. Coffee and cocoa recorded strong performance as well, rising 21.3% and 23.1%, respectively, as the global economic recovery and favorable fundamentals were supportive.

Year Ended December 31, 2008

2008 was a watershed year for the world economy and the financial industry. It marked the end of an era for the world economy—an era of rising leverage, bloated balance sheets, inflated asset valuations, and above all, a dangerously unbalanced international economic and financial arrangement that was heavily reliant on the American consumer as the buyer of last resort. The financial market upheavals of the past year, rivaled only by those of the Great Depression, smashed the aging edifice of the old era. The pain was all the more acute for the financial sector, where the yearlong nightmare was topped off by the eruption of the Bernie Madoff scandal. Thanks to the dramatic monetary and fiscal policy moves worldwide, most notably by the US Federal Reserve, the US is unlikely to repeat the Depression of the 1930’s. However, the liquidity environment is likely to remain challenged and a sustainable economic recovery may well not begin until 2010.

The US economic data reported throughout the year were horrendous. The US economy lost 2.6 million jobs in 2008, the most since 1945. Of these, 1.9 million jobs were lost in the last few months of the year. The unemployment rate jumped to over 7% to end the year, which is the highest it has been in sixteen years. The latest reported US housing prices showed a drop of over 15% from January 2008 through October 2008 and a 30% decline from January 2007 through October 2008 was reported. At year end, housing starts were at the lowest levels in 50-years and housing permits, one of the leading economic indicators, were at 27-year lows. Retail sales struggled through 2008 and capped the year with one of the worst holiday seasons on record.

According to the Merrill Lynch Index, treasuries of all maturities combined returned almost 15% in 2008. The Federal Reserve added additional liquidity and slashed the Federal Discount Rate to a 0.0% - 0.25% range during December. For the first half of the year, the Federal Reserve Open Market Committee lowered rates in attempts to improve market conditions due to the sub-prime mortgage crisis. Additional rate reductions were geared to stimulate the economy in the face of the global credit crisis as numerous financial institutions announced faltering operations during the last few months of 2008. As a result, the Discount Rate and Federal Funds Rate decreased over 4% throughout the year.

As the housing and credit markets around the globe crumbled, the world’s central banks worked collaboratively and lowered key rates throughout 2008. The Bank of England, faced with a deepening banking crisis and recession, lowered their rate by approximately 3.5% throughout the year. Even the President of the ~~European Central Bank (“~~ECB”), Jean Claude Trichet, had to abandon his long term hawkish stance as the ECB lowered rates to 2.0% by year end. The scene was all too familiar in Asia as the Peoples Bank of China and the Bank of Japan lowered rates in 2008.

Currencies: The Dollar Index, which measures the US unit against a basket of other currencies, capped off the year by gaining roughly 6%. The greenback’s most noteworthy gains were concentrated on the euro, pound and Australian and New Zealand dollars. The US dollar continued to decline versus the Japanese yen in December and fell approximately 19% for the year, the largest decline in more than twenty years. Japan appeared to be significantly less exposed to the credit crisis compared to the US, England, European Union, China and other nations as the yen witnessed gains across the board in 2008. Though the euro lost value versus the US dollar in 2008, it ended the year with record performance versus the pound. The pound was the weakest among major currencies versus the US dollar with an approximate 27% slide during the year.

Energies: After crude reached a record high close of over $145 a barrel on July 3, the deleveraging and a severe drop off in demand caused the price of crude to plummet. Within the Dow Jones AIG Commodity Index (“DJAIG”) crude was one of the worst performing sectors in 2008, posting losses in excess of 50% by closing the year near $45 a barrel. Crude continued to slide despite significant OPEC (Organization of the Petroleum Exporting Countries) supply decreases in September, in October and again in December. Heating oil and reformulated gasoline had similar 2008 price trends. Reformulated gasoline posted the worst performance within the DJAIG with losses amounting to roughly 60% for the year. Natural gas witnessed handsome returns through July as the price of domestic natural gas surged from the first quarter and rallied over 70% for the year. However, like other commodities, the global economic malaise caused demand to drop off considerably leading to dramatic price reductions throughout the second half of the year. The dispute between Russia and the Ukraine, which disrupted the supply of natural gas to Central and Eastern Europe during December, had little impact on price. Within the DJAIG, natural gas realized a loss near 25% for the year, which was the best performance for all energies within the Index.

Agriculturals: Wheat, corn, soybeans and cotton ended the year with strong overall returns for December but all suffered rather disappointing returns for the year. Overall for 2008, wheat, corn, soybeans and cotton ended the period down approximately 31%, 11%, 19% and 28%, respectively, within the DJAIG. Wheat gained early in the year on fears of feed grain shortage but record annual harvest, followed by the wheat deleveraging that occurred in the second half of the year due to the global financial meltdown, led to increased supplies plaguing silos across the globe. The ethanol story, the growing potential of an eventual global food shortage and capital flows into commodities, were all factors behind corn’s rally in the first half of 2008 that seemed to disappear in the third and fourth quarters of the year. Despite excessive precipitation across the central bean belt and increased demand from China, which lent support for soybeans’ performance realized during the first and second quarters, all gains were erased in the third and fourth quarters.

Indices: The global equity performance for 2008 in general can be described as dreadful. The year started off poorly and the markets just got worse. Many market participants fell victim to forced selling as massive capital outflows continued through year end. The global credit crisis and the recession worsened, but a flake of relief emerged as central banks worked collaboratively and lowered key rates, added substantial liquidity and enacted ~~stimulus~~ stimulus packages during the final months of the year with more promised for 2009. The result for the major US indices was a modest advance in December as the Dow Jones Industrial Average posted a slight gain; however, it ended the year down ~~approximately~~ approximately 34%. The S&P 500 ended December with an advance but posted an approximate 37% loss for the year. For December, the NASDAQ recorded positive overall performance but technology stocks were a major victim of the global economic collapse and realized an approximate 40% loss for the year. In Europe, the DAX and CAC witnessed positive performance in December; however, they posted losses of approximately 40% and 43%, respectively, for the year. The London FTSE and Russian equities finished December and the year with negative returns. The three majors in Asia -— the Nikkei, Hang Seng and Kospi -— ended 2008 on a rally but down considerably for the year. Australia and New Zealand witnessed steep losses in 2008 as well. The Latin American block was hit hard by the economic meltdown as the Mexican Bolsa Index and the Brazilian Bovespa Stock Index closed the year down considerably.

Metals: Gold posted strong performance as the precious metal advanced approximately 8% in December and finished 2008 up almost 5%. Asian and geopolitical buying, flight-to-safety, strong European dealer demand and small ~~losses in the US Dollar Index all~~ factored into gold’s run in December. Silver, platinum and palladium all recorded gains in December; however, silver posted large losses within the DJAIG on the year. Among base metals, 2008 was a terrible year across the board. The global housing and commercial real-estate market collapse and the looming economic recession caused demand for these metals to grind to a halt. Also, large inventories of these metals drove the prices down further. Within the DJAIG, aluminum, zinc, copper and nickel wrapped up the year down approximately 36%, 49%, 54% and 55%, respectively.

losses in the US Dollar Index all factored into gold’s run in December. Silver, platinum and palladium all recorded gains in December; however, silver posted large losses within the DJAIG on the year. Among base metals, 2008 was a terrible year across the board. The global housing and commercial real-estate market collapse and the looming economic recession caused demand for these metals to grind to a halt. Also, large inventories of these metals drove the prices down further. Within the DJAIG, aluminum, zinc, copper and nickel wrapped up the year down approximately 36%, 49%, 54% and 55%, respectively.

Softs and Livestock: Sugar featured a relatively quiet December and lost about 1% overall for the month as abundant supply prevailed. However, sugar was the leading commodity in the DJAIG and witnessed an overall gain of over 9% for the year. Coffee and cocoa ended a miserable year with negative overall performance. As the global economy worsened, beef demand continued to fall, resulting in cattle prices dropping by a disappointing 12% within the DJAIG for the year. Hogs were one of the few sectors within the DJAIG to cap the year with overall positive returns. Demand increases, mainly in China, drove hog prices up over 5% in 2008 within the DJAIG.

~~The~~ Year Ended December 31, 2007

The global economy endured the unfolding of the subprime credit crisis for most of 2007. August 2007 will forever be etched in the financial pantheon alongside 1998 and 1987 as defining events of their respective decades. The US economy has cooled considerably since the beginning of the year and many economists are signifying a “recessionary like” outlook at best in the coming months, not the “soft landing” that was anticipated. While the US economy proved volatile throughout the year, the rest of the world appeared to be going strong.

During 2007, single-family housing starts and permits hit sixteen-year lows as starts fell over 5% and are approximately 24% below 2006. The Home Builders Confidence Index witnessed the lowest drawdown in nineteen years. In November, UK housing prices showed their greatest monthly dive in twelve years as the subprime crisis clearly impacted non-US markets. Inflation concerns led to the Bank of England (“BOE”) to cut rates late in 2007.

In the US, the unemployment rate unexpectedly jumped to 5.0% during the fourth quarter as private sector payrolls fell, signaling the first decline in four years. For the first time since September 2003, fewer than half of the industries surveyed added jobs.

Currencies: While the US dollar managed periodic strength during December, the dollar ended 2007 with staggering losses to major rivals. The final 2007 tally saw the euro, pound and yen gaining over 10%, 6% and 2%, respectively. After witnessing a record monthly low in November, the Dollar Index ended the year over 76.5. Throughout the year, emerging nations gained greater confidence in their domestic economic strength. Many, especially in Asia, slowly abandoned the managed dollar peg.

The pound finished the year with gains on the dollar, despite losses in December as a result of a BOE rate decrease. The euro had a strong year and benefited from perceptions that the ~~European Central Bank (“~~ECB”) would not be lowering rates any time soon as ECB President Jean Claude Trichet issued a series of hawkish comments, mainly as related to inflation concerns. European Union economic data was mixed to weak, including a twenty-two month low reading of the German IFO Business Confidence Index.

The yen closed out 2007 up 2% for the year on the US dollar. Japanese economic data persisted as lackluster and those calling for a rate increase have now mostly backed away from that forecast. The yuan extended its yearlong gradual advance in December as the Peoples Bank of China continued to contract. Since abandonment of the US dollar peg in January 2005, the yuan has risen 12% to the dollar. The Canadian, Australian and New Zealand dollars posted gains on the year against the US dollar.

Energies: It was a tremendous year for the petroleum sector as crude oil prices rose more than 40% within the Dow Jones AIG Index and closed 2007 over $95. Crude briefly reached the ominous $100 level but the market failed to hold that level in initial efforts. Geopolitical events were supportive during the year, encouraging the high volatility patterns. Supply/demand fundamentals have been trending weaker and the market saw periodic selling as related to concerns surrounding slowing US and global growth. The US dollar remained a key influence and the dollar’s demise was a key factor in crude’s run. Overall demand for commodities as an asset class was supportive, particularly in the Peoples Republic of China and in India.

Reformulated gasoline soared throughout the year and topped off with a year-to-date gain of over 45% within the Dow Jones AIG Index. Heating oil performed well in 2007 and closed up 5.5% within the same index. Distillate inventories remained below the five-year average and Department of Energy inventories ran 6% under last year despite relatively moderate weather conditions.

Agriculturals: Clearly, 2007 was a superior year for commodities as evidence by stronger readings in the major indices. The 19-component Dow Jones AIG Index witnessed a yearly gain of over 11%. Commodities attracted significant interest as an alternative asset class throughout 2007. Corn closed the year at prices that have not been seen since the summer of 1996. One key fundamental factor contributing to corn’s growth, besides the evident global demand for ethanol, is the increased quality of living in developing countries such as China and India. On the production side, perhaps with the exception of soybeans, wherever crop interchangeability allows, corn will continue to steal acres from competing agricultural products.

Soybean prices finished the year over $12.50, which is second to historical highs set in June of 1973. The fundamentals for soybeans remain demand driven. China’s need for beans, bean oil and bean meal is so massive that all importation taxes and tariffs on all three have been dropped, which is a rare move. On the supply side, the battle for global acreage will hinge on the relative value of competing crops. In 2007, the wheat market realized an outstanding 87% increase in prices from 2006, setting new all time record prices. This gain is despite the historic drought in Australia, one of the world’s largest producers of the grain. On the whole, cotton improved in 2007 ending the year with over a 22% increase, at a level that has not been seen since early 2004.

Indices: The major US equity indices slumped in the fourth quarter under the weight of the subprime credit crisis but still tallied gains for the year. For 2007, the Dow Jones rose over 6%, the S&P 500 added 3.5%, while the tech heavy NASDAQ was the leading performer with a 10% gain. The fourth quarter sell-off was a result of traders becoming increasingly concerned about the economy in general and housing in particular. Some doubted the ~~Federal Reserves (“~~Fed”)’s resolve to address the economic issues in the face of growing inflation concerns. Also, interest and demand for commodities as an alternative asset class weighed on the equity sector.

To a lesser extent, European equities echoed the weak tone of the US during the fourth quarter. However, the German DAX showed strong gains of 22% during 2007. The CAC and FTSE scored much lower gains of 1% and 4%. The broad based Pan-European Dow Jones STOXX 600 suffered minor losses as markets outside of the big three struggled.

Equities soared in Asia with the Hang Seng Index, Shanghai Composite, Kospi Index and Australian All Ordinaries setting record highs during 2007. During the fourth quarter, volatility was rampant across Asian equities. While the Hang Seng performed extremely well, with almost a 40% gain on the year, it was a different story for Japan as the NIKKEI lost over 11%, resulting in the first decline in the past five years. Despite the International Monetary Fund lowering Japan’s growth rate in November, business investment remained expansionary and many market participants view a Japanese recession as unlikely.

Interest Rates: With inflation concerns and the global credit crisis taking center stage during the second half of the year, the Fed reacted aggressively on September 18 and cut both the Fed Funds rate by 50 basis points from 5.25% to 4.75% and the discount rate to 5.25%. After this action, the yield curve showed significant steepening. The 2 and 10 year benchmark notes ended the year lower than 2006. The Federal Reserve indicated possible future US rate hikes in the coming months. The TED spread continued to rise through November.

After a pair of rate hikes in the first half of the year, the ECB held steady at 4.00% through year-end and the euro benefited from perceptions that the ECB seems to be in a holding pattern. The BOE issued three quarter-point rate increases in the first half of 2007. Forced to deal with the Northern Rock Crisis, declines in consumer confidence, housing declines and weakness in the service sector during the second half of the year, the BOE slashed their rate by a quarter-point in December to end the year at 5.50%.

The ~~Bank of Japan (“~~BOJ”) raised rates in the first quarter of the year and held the rate steady through the end of the year. A rash of lackluster economic data weighed on BOJ officials but they kept the rates unchanged. The Peoples Bank of China drained liquidity and gradually hiked interest rates throughout 2007.

Metals: Base metals had a rather difficult 2007. The dismal housing market, poor construction data in the US and UK and the sliding US dollar had a significant impact. Zinc was the worst performer among the nineteen components of the Dow Jones AIG Index, with annual losses over 43%. Aluminum and nickel witnessed steep losses over 18% and 16% within the Dow Jones AIG Index, respectively. In December, copper had a rough month but still posted an annual gain of over 4.5%.

Precious metals, on the other hand, recorded tremendous gains during 2007. Gold sky rocketed to a near twenty-eight year high and finished 2007 up over 32%. This trend was fueled by the weak dollar, soaring oil prices, subprime credit woes and several geopolitical events, including the recent developments in Pakistan. Gold saw spotty selling per the yen carry trade and other margin needs during the second half of the year. Silver traded with more volatility than gold ~~and experienced less flight-to-safety demand and ended the year topping a 9% profit. Platinum had a positive year as Asian demand for the metal held strong.~~

and experienced less flight-to-safety demand and ended the year topping a 9% profit. Platinum had a positive year as Asian demand for the metal held strong.

Softs and Livestock: Citrus finished up 2007 on the rally side following forecasts of freezing temperatures in the sunshine state. However, this rally could not offset losses realized throughout the year. Sugar and coffee had a rather difficult year as well. Within the Dow Jones AIG Index sugar and coffee were down more than 14% and 6%, respectively. Following negative 2006 performance, cocoa rebounded in 2007, achieving a 17% return on the year.

2007 proved less than kind to livestock prices as both cattle and hogs suffered losses. Live cattle were down more than 6% within the Dow Jones AIG Index. Korea rejected a series of shipments of US beef on trepidation of mad-cow disease concerns. Hogs were the second worst performer within the Dow Jones AIG Index with a 30% loss.

The Year Ended December 31, 2006

The U.S. Federal Reserve (“Fed”) ceased raising rates in the fourth quarter. The perception remains that although the economy is slowing, there is no danger of a recession and that a soft landing is the most likely scenario. Range trading may be the dominant pattern for the next few months as prices react to the economic data. The yield on the benchmark U.S. 10-Year note finished November at an 11-month low. A weaker U.S. dollar failed to dampen enthusiasm for U.S. Treasuries. The latest data available shows capital flows to the U.S. rose in October.

On the employment front, job growth accelerated in December as non-farm payrolls rose while the unemployment rate held steady at 4.5%. This is down from 4.9% at the start of 2006. Of some concern was a 0.5% jump in average hourly earnings, taking them up 4.2% over the past 12 months. Overall, the employment picture persists as healthy but the construction, manufacturing and retail sectors all lost jobs in December.

Regarding U.S. inflation, the November Consumer Price Index (“CPI”) was unchanged and the Core CPI, which factors out the more volatile food and energy prices, was also flat. This is the lowest reading for the core rate since November 2005. There were clearly no inflation worries in this data. The Producer Price Index (“PPI”) was not as controlled, climbing 2.0%, the most since 1974. The surge was caused by a jump in energy, car and truck prices.

Housing has been a major economic concern in 2006. November Housing Starts rose following a big drop in October. November Housing Permits, however, fell slightly. Over the past 11 months, Housing Starts were 12.5% below 2005 levels while Housing Permits were off 14.1%. Homebuilders’ confidence, as indicated by the NAHB/Wells Fargo Index fell in December.

The overall consumer confidence picture remained mixed with the high end and electronics sectors doing well. November Retail Sales rose 1.0%. The unusually warm weather hurt clothing and Department Store Sales. Third quarter Gross Domestic Product, a measure of economic growth, was revised downwards to the lowest level since the fourth quarter of 2005. Home building remains the main drag on growth.

While the Fed was on hold with respect to interest rate policy, the European Central Bank (“ECB”), the Bank of England (“BOE”) and the Peoples Bank of China (“PBC”) all raised interest rates. British housing prices and CPI growth continue to be high. Germany continues to exhibit growth, and leads the increasingly strong Eurozone. The Bank of Japan (“BOJ”) remained cautious, with no additional rate hikes following the July increase to 0.25%. The economy appears mixed, with consumer spending still less than the economy requires. The Bank of Canada, Reserve Bank of Australia and New Zealand central bank all remained on hold in December.

Currencies: The euro strengthened versus the U.S. dollar in 2006, reversing the pattern from 2005. The euro also strengthened against the Japanese yen, achieving record levels in December. Germany, the engine of Eurozone growth, has been the strongest European economy this year. Interest rate differential factors supported the euro through much of the fourth quarter of 2006. Of great significance, central banks around the globe have initiated a policy of diversification out of the U.S. dollar and into the euro, the British pound, and to a lesser extent, the Japanese yen.

The British pound ended the year slightly off its high, after rising approximately 14% versus the U.S. dollar. British housing prices have been surging and the CPI came in above the BOE’s target.

The Japanese yen fell against the U.S. dollar, euro and British pound during the fourth quarter of 2006. Japan exited its deflationary era in 2006, although the fourth quarter saw less than robust growth on the consumer side. Other Asian currencies were better performers, with the Korean won having a particularly solid December and fourth quarter.

The Peoples Bank of China continues to tighten the reins on the economy. Most recently, the PBC increased the reserve requirement ratio for banks and raised the base interest rate 50 points to 6.72%. The yuan has shown an accumulative appreciation of about 3.7% since the July 2005 revaluation.

Energies: Crude oil was strong during the first half of the year and weakened during the second half, with the exception of a brief respite during November. Crude ended December around $60 per barrel, which contrasts to its mid-July peak of nearly $78 per barrel. Record warm weather in key consuming regions in the U.S. put pressure on the market during the quarter, as did a generally benign geopolitical scene and poor member compliance with OPEC’s announced production cuts.

The unusually warm weather kept heating oil under pressure during December. Heating oil will be dependent on a general recovery in commodity prices and a sudden weather shift in coming weeks. Department of Energy gasoline inventories are 0.5% below last season. The driving season was extended by the warm weather conditions.

Natural gas fell during the fourth quarter with the weather weighing heavily on investor sentiment. Inventories are still burdensome and demand is slowing rather than rising during the normally strong seasonal demand time frame. What remains to be seen is whether the markets have discounted the majority of these bearish fundamentals.

Grains: While December’s performance was mixed, corn trended upwards for the fourth quarter as a whole. The last week of the month, quarter, and year saw the posting of a multi-year high, with the final price for 2006 settling at the highest weekly close on the charts since the drought-driven summer rally in July of 1996. The main drivers behind the re-awakening of corn prices were threefold: 1) an increase in overseas demand due to improving global economic conditions; 2) the expansion of the production of ethanol; and 3) the ongoing increase in hedge fund and money managers’ investing in alternative non-correlated asset classes. For the quarter as a whole, despite a large trading range, the wheat market put in somewhat disappointing, albeit upward trending performance. The uncertainty caused by ongoing drought conditions in Australia, the relatively high price for wheat and tight global stocks had an effect on supply and demand. The trend for soybean prices was higher for the fourth quarter of 2006. Export demand for soybeans, soybean oil and soybean meal all appear to be increasing. As corn production is increasingly diverted to the production of ethanol, substitute feedstuffs, with soybeans as the closest surrogate, may also feel the upward pull of prices. As the global supply of foreign cotton sold out late in the year, prices began to move higher from mid-November through the end of the year. The lethargy that characterized most of 2006 was a product of a massive carryover of last year’s crop, along with last summer’s unfortunate elimination of a marketing program which left U.S. cotton uncompetitively priced.

Indices: U.S. equities recorded their best gains in three years during the fourth quarter of 2006. The weakness in real estate that may have caused a shift into equities, large levels of global liquidity, a drop in oil prices, a quiet geopolitical atmosphere, solid earnings and a brisk mergers and acquisitions calendar all added to the positive performance. A shift out of commodities also aided the tone of global equities. Blue chips, financials, oil and big caps did well, and at the end of the quarter technology names took a leading role.

It was also a very good December, fourth quarter and year for the European equity markets. Markets in Germany, the U.K. and France all ended higher for the fourth quarter. Heavy merger and acquisition activity was a major feature in Europe, along with a solid run of earnings and significant fund inflows. The strong U.S. market was also a psychological plus. The prospect of further rate hikes from the ECB, and to a lesser extent the BOE, failed to diminish enthusiasm.

Asian/Pacific Rim equities also recorded solid 2006 gains, despite volatile trading. Record highs were achieved in Singapore, Australia and New Zealand during the final session of the year as well as for China’s Shanghai Composite. A growing Japanese economy served to buoy enthusiasm and a modest 0.25% base interest rate was supportive. Thailand’s SET Index had a very volatile month after the central bank attempted to impose controls on capital for foreign investors in the stock market, but that was quickly reversed when the SET tumbled 15%, and prices subsequently recovered. However, Thailand has seen continuing political unrest.

Interest Rates: As expected, the Fed remained on hold at its December 12 meeting. The minutes of the most recent Federal Open Market Committee (“FOMC”) meeting were virtually the same as the November meeting, indicating that the FOMC

unanimously agreed that inflation persists as the primary concern to the economy. However, at the same time they stated the economy might have been a bit softer than previously thought.

In the international arena, the ECB increased rates 25 basis points in December and the BOE raised rates 25 basis points in November. The BOJ made just one move to 0.25% in 2006. Japanese consumer data has been a bit sluggish; something the BOJ will keep in focus. The Peoples Bank of China is currently engaged in a tightening process, and is actively draining liquidity by increasing reserve requirements.

Metals: A weak U.S. dollar helped support gold for most of the quarter but during late December the dollar showed signs of a consolidation rally and gold fell. Plunging energy prices had a negative impact on gold prices as well. Silver traded at its best levels in more than six months during the quarter, but ended the year off its highs. For the year, silver significantly outperformed gold. Speculative participation was heavy throughout the quarter, setting the stage for high volatility. A steady increase in inventories weighed on copper prices in the fourth quarter. A lessening of labor concerns, particularly in Chile and Canada, and the fact that China’s buying pace slowed in 2006 added to the negative tone. Zinc supplies remained tight and strong demand continued. Aluminum prices held up well in the fourth quarter in the face of a general commodity weakness. Nickel was one of the strongest performers in the metals group due to tight supply and a strong pattern of stainless steel demand.

Softs: Forecasts for a significant global supply surplus of sugar weighed on sentiment, causing prices to decline 29% on the year. This made sugar the weakest agricultural commodity in the Dow Jones/AIG Index. Coffee prices remained relatively flat for 2006 and overall global coffee demand was solid. Scaled back cocoa crop prospects for the Ivory Coast, the world’s largest producer, added to the commodity’s recent bullish tone. The political situation in the Ivory Coast continues fairly quiet but civil unrest remains a potential factor. The cattle market traded sideways for most of the fourth quarter until severe weather conditions reduced cattle supply and caused prices to rise in the second half of December. Hog supply was ample during the quarter as the US entered a seasonally slow demand period. On the bright side, the most recent USDA estimate is that US pork exports will rise in 2007 to follow the 2006 increase.

Sector Performance

Due to the nature of Registrant’s trading activities, a period-to-period comparison of its trading results is not meaningful. However, aset ~~discussion~~forth ofbelow ~~Registrant’s~~are ~~trading results for~~ the ~~major~~following: ~~sectors in which Registrant traded for the years ended December 31, 2008, December 31, 2007 and December 31, 2006 are presented below.~~

~~The~~(a) ~~Year~~the ~~Ended~~major sectors to which Registrant’s assets were allocated as of December 31, 2009, December 31, 2008 and December 31, 2007, measured as a percentage of the “gross speculator margin” (i.e., the minimum amount of cash or marginable securities a speculator must post when buying or selling futures assets); and

(b)

a discussion of Registrant’s trading results for the major sectors in which Registrant traded for the year ended December 31, 2009, the year ended December 31, 2008 and the year ended December 31, 2007.

Year Ended December 31, 2009

As of December 31, 2009, the allocation of Registrant’s assets to major sectors was as follows:


Sector	Allocation
Currencies	33.69	%

Energies	4.01	%

Grains	5.47	%

Indices	27.48	%

Interest Rates	18.59	%

Meats	0.45	%

Metals	4.44	%

Tropicals	5.87	%


TOTAL	100.00	%

Trading results for the major sectors in which Registrant traded for the year ended December 31, 2009 were as follows:

Currencies: (-) Registrant experienced a majority of its gains in the New Zealand and Australian dollars, Russian ruble and South African rand. The majority of losses were experienced in the British pound, Canadian dollar, euro, Japanese yen and Mexican peso.

Energies: (-) Registrant experienced a majority of its losses in brent crude, crude oil, gas oil, reformulated gasoline, heating oil, gas oil and natural gas.

Grains: (-) Registrant experienced gains in corn and soybean meal. The majority of its losses were incurred in bean oil, cotton, wheat and soybeans.

Indices: (+) Registrant experienced a majority of its gains in the DJ Stoxx Index, Australian All Ordinaries Index, FTSE, KOSPI and the Taiwan Index. Losses were realized in the OMX Stockholm Index, Hang Seng, S&P TSE 60 Index and the S&P 500 Index.

Interest Rates: (-) Registrant experienced a majority of its gains in the German Bond, Bobl and Swiss Bond. The majority of losses were experienced in US Treasury Bonds, Canadian Bond, Euribor Liffe, UK Gilt and Short Sterling.

Meats: (-) Registrant experienced gains in live hogs. Losses were realized in feeder cattle and live cattle.

Metals: (+) Registrant experienced gains in copper, tin, platinum and gold. Losses were incurred in aluminum, lead, zinc and nickel.

Softs: (-) Registrant experienced gains in sugar and dairy. Losses were realized in coffee, timber and citrus.

Year Ended December 31, 2008

As of December 31, 2008, the allocation of Registrant’s assets to major sectors was as follows:


Sector	Allocation
Currencies	12.61	%

Energies	17.14	%

Grains	9.20	%

Indices	5.59	%

Interest Rates	45.39	%

Meats	0.50	%

Metals	2.92	%

Tropicals	6.65	%


TOTAL	100.00	%

Trading results for the major sectors in which Registrant traded for the year ended December 31, 2008 were as follows:

Currencies: (+) Registrant experienced a majority of its gains in the Polish zloty, Taiwanese dollar and Australian dollar. The majority of losses were experienced in the Canadian dollar, British pound, South African rand and the Japanese yen.

Energies: (+) Registrant experienced a majority of its gains in brent crude, crude oil, gas oil, reformulated gasoline, heating oil and natural gas. Losses were incurred in kerosene.

Grains: (+) Registrant experienced gains in cotton, corn, soybeans and wheat. The majority of its losses were incurred in soybean meal.

Indices: (+) Registrant experienced a majority of its gains in the DJ Stoxx Indices, S&P 500 Indices, OMX Stockholm Index and the MSCI Sing Index. Losses were realized in the Russell 2000, GSCI and DAX.

Interest Rates: (+) Registrant experienced a majority of its gains in US Treasury Bonds, UK sterling and Eurodollar. The majority of losses were experienced in German Bund and Bobl.

Meats: (+) Registrant experienced gains in feeder cattle and live cattle. Losses were realized in live hogs.

Metals: (+) Registrant experienced gains in nickel, zinc and silver. Losses were incurred in aluminum, copper and gold.

Softs: (+) Registrant experienced gains in coffee, lumber and citrus. Losses were realized in sugar.

~~The~~ Year Ended December 31, 2007

~~Currencies:~~22 (+) Registrant’s investment in this sector experienced a majority of its losses in the euro, Japanese yen, Mexican peso, South African rand and Swiss franc. The majority of gains were experienced in the Australian dollar, Canadian dollar and the euro versus the Japanese yen.

Energies: (+) Registrant’s investment in this sector experienced a majority of its losses in kerosene. Gains were experienced in crude oil, gas oil, gasoline, heating oil and natural gas.

Grains: (+) Registrant’s investment in this sector experienced losses in corn, cotton and rice. The majority of its gains were experienced in soybean oil, wheat, soybean meal, soybeans.

~~Indices:~~As ~~(-) Registrant’s investment in this sector experienced a majority~~ of ~~its losses in the CAC 40~~December 31, ~~FTSE 100~~2007, ~~IBEX, Nikkei, S&P 30, and~~ the ~~Russell~~allocation ~~2000 indices. The majority~~ of ~~gains~~Registrant’s ~~were~~assets ~~experienced~~to major insectors ~~the~~was ~~DAX,~~as ~~Goldman~~follows: ~~Sachs Commodity, and the H Shares Indices.~~

Interest Rates: (+) Registrant’s investment in this sector experienced a majority of its losses in 3-year and 10 year Australian Bonds, Australian Bank Bills and Eurobonds. The majority of gains were experienced in Euribor, Eurodollars, British Gilt and U.S. Treasury Notes.


Sector	Allocation

Currencies	18.68	%

Energies	9.06	%

Grains	9.01	%

Indices	24.00	%

Interest Rates	27.06	%

Meats	0.93	%

Metals	8.02	%

Tropicals	3.24	%


TOTAL	100.00	%

~~Meats:~~Trading ~~(-)~~results ~~Registrant’s~~for ~~investment~~the major sectors in ~~this~~which ~~sector~~Registrant ~~experienced~~traded ~~losses~~for inthe ~~feeder~~year ~~cattle~~ended December 31, ~~live cattle~~2007 ~~and~~were ~~live~~as ~~hogs.~~follows:

~~Metals~~Currencies: (-+) Registrant ~~Losses~~experienced ~~were~~a ~~experienced~~majority of its losses in ~~copper~~the euro, ~~aluminum~~Japanese yen, ~~zinc~~Mexican peso, ~~palladium~~South African rand and ~~silver~~Swiss franc. ~~Gains~~The majority of gains were experienced in ~~gold,~~the Australian ~~lead~~dollar, ~~nickel~~ Canadian dollar and ~~platinum~~the euro versus the Japanese yen.

~~Softs~~Energies: (+) Registrant’s experienced ~~investment~~a inmajority ~~this~~of ~~sector~~its ~~experienced~~ losses in ~~cocoa, coffee, orange juice and rubber~~kerosene. Gains were experienced in ~~lumber~~crude oil, ~~palm~~gas oil, ~~milk~~gasoline, heating oil and ~~sugar~~natural gas.

Grains: (+) Registrant experienced losses in corn, cotton and rice. The ~~Year~~majority ~~Ended~~of ~~December 31~~its gains were experienced in soybean oil, ~~2006~~wheat, soybean meal, soybeans.

~~Currencies~~Indices: (-) Registrant’s ~~revenue~~experienced ina ~~the~~majority ~~currency~~of ~~sector~~its ~~was~~losses ~~down~~in ~~for~~ the ~~year~~CAC 40, ~~with~~FTSE a100, ~~majority~~IBEX, ofNikkei, S&P 30, and the ~~losses~~Russell ~~coming~~2000 ~~from~~indices. ~~long~~The ~~and~~majority ~~short~~of ~~positions~~gains were experienced in the ~~euro~~ DAX, ~~the~~Goldman ~~Swiss~~Sachs ~~franc~~Commodity, and the ~~Canadian~~H Shares ~~dollar~~Indices.

~~Energies~~Interest Rates: (-+) Registrant’s ~~revenue~~experienced ina ~~the~~majority ~~energy~~of ~~sector~~its ~~was~~losses ~~down~~in ~~for~~3-year ~~the~~and 10 year Australian Bonds, ~~with~~Australian aBank ~~majority of~~Bills ~~the~~and ~~losses~~Eurobonds. ~~coming~~The ~~from~~majority ~~long~~of ~~and~~gains ~~short~~were ~~positions~~experienced in Euribor, ~~crude~~Eurodollars, ~~oil~~British Gilt and ~~unleaded~~U.S. ~~gasoline~~Treasury Notes.

~~Grains~~Meats: (-) Registrant’s ~~revenue~~experienced losses in ~~the~~feeder ~~grain sector was down for each month of the year~~cattle, ~~with~~live acattle ~~majority of the losses coming from long~~ and ~~short~~live ~~positions in soybeans, corn, wheat and soybean oil~~hogs.

~~Indices~~Metals: (+-) Registrant’s ~~revenue~~experienced losses in ~~the~~copper, aluminum, ~~sector~~zinc, ~~was~~palladium ~~positive~~and ~~for~~silver. ~~2006~~Gains ~~primarily~~were ~~due~~experienced ~~to long positions~~ in ~~the DAX~~gold, ~~the CAC 40~~lead, ~~the~~nickel ~~IBEX~~ and ~~the Hang Seng Indices~~platinum.

~~Interest Rates~~Softs: (+) Registrant’s ~~revenue~~experienced losses in ~~the~~cocoa, ~~sector was up for the year~~coffee, ~~with~~orange ajuice ~~majority~~and ofrubber. ~~the~~Gains ~~gains~~were ~~coming~~experienced ~~from short positions~~ in ~~Euribor~~lumber, ~~and long~~palm ~~and~~oil, ~~short~~milk ~~positions in the Eurodollar~~ and ~~the U~~sugar.S. ~~Treasury Bond.~~

Metals: (+) Long positions in gold and zinc contributed to a gain in the Registrant’s revenue in the sector for 2006.

Softs: (-) Registrant’s revenue in the sector was down for the year, with losses due to long and short positions in coffee and cattle.

Results of Operations

~~The~~Year ~~net~~Ended ~~asset value (“Net Asset Value”) per Interest as of~~ December 31, ~~2008,~~2009 was $156.10, an increase of 29.19% from the December 31, 2007 Net Asset Value per Interest of $120.83, which was an increase of 16.82% from the December 31, 2006 Net Asset Value per Interest of $103.43, which was an increase of 5.70% from the December 31, 2005 Net Asset Value per Interest of $97.86. The CISDM CPO Asset Weighted Index (formerly known as the Zurich Fund/Pool Qualified Universe Index) returned 16.29%, 8.55% and 8.30% for the years ended December 31, 2008, 2007 and 2006, respectively. The CISDM CPO Asset Weighted Index is the dollar weighted, total return of all commodity pools tracked by Managed Account Reports, LLC. Past performance is not necessary indicative of future results.

~~Registrant’s~~The ~~average~~Net ~~net~~Asset ~~assets~~Value ~~level~~per ~~during~~Interest ~~the year ended December 31, 2008 was approximately $5,676,000, an increase of approximately $279,000~~ as ~~compared to the year ended December 31, 2007 primarily due to positive trading performance which more than offset the effect~~ of ~~redemptions. Registrant’s average net asset level during the year ended~~ December 31, ~~2007~~2009 was ~~approximately~~ $5120.46,~~397,000,~~ a decrease of ~~approximately~~ $~~2,237,000~~35.64 asfrom ~~compared to~~ the ~~year~~ ~~ended~~ December 31, ~~2006~~2008 ~~primarily~~Net ~~due~~Asset toValue ~~the~~per ~~effects~~Interest of ~~redemptions~~$156.10. Registrant’s average net ~~asset~~assets level ~~during~~for the year ended December 31, ~~2006~~2009 was approximately $75,~~634~~347,000, a decrease of approximately $8329,~~888,~~000 as compared to the year ended December 31, ~~2005~~2008 primarily due to the effects of redemptions and negative trading performance.

~~Registrant’s~~23 ~~trading gains before commissions were approximately $2,591,000, $1,538,000 and $824,000 for the years ended December 31, 2008, 2007 and 2006, respectively.~~

Interest income is earned on the average daily equity maintained with the clearing broker or bank at competitive interest rates and, therefore, varies monthly according to interest rates, trading performance and subscriptions and redemptions. Interest income during the year ended December 31, 2008 was approximately $125,000, a decrease of approximately $144,000 as compared to the year ended December 31, 2007 primarily due to declining interest rates which more than offset the increased average net asset level discussed above. Interest income during the year ended December 31, 2007 was approximately $269,000, a decrease of approximately $120,000 as compared to the year ended December 31, 2006 primarily due to reduced average net asset levels discussed above. Interest income during the year ended December 31, 2006 was approximately

~~$388,000,~~Registrant’s aperformance ~~decrease~~for ofthe ~~approximately~~year ~~$179~~ended December 31,~~000~~ as2009 ~~compared~~was down to22.83%. Performance includes the ~~year~~percentage ~~ended~~change ~~December 31,~~in ~~2005~~Registrant’s ~~primarily~~Net ~~due~~Asset toValue ~~reduced~~excluding ~~average~~the ~~net~~effect ~~asset~~of ~~levels~~redemptions and includes the percentage impact of trading gains/(losses) less any commissions and related fees and expenses. Past ~~discussed~~performance ~~above~~is not necessarily indicative of future results.

~~Commissions are calculated on~~ Registrant’s ~~Net Asset Value at the beginning of each month and therefore, vary according to monthly~~ trading ~~performance~~losses and redemptions. Other transaction fees consist of National Futures Association, exchange and clearing fees as well as floor brokerage costs and give-up charges, which are based on the number of trades the Trading Advisorbefore ~~executes,~~commissions asfor ~~well as which exchange, clearing firm or bank on, or through, which~~ the ~~contract is traded. Commissions and other transaction fees during the~~ year ended December 31, ~~2008~~2009 were approximately $~~539~~(637,000~~, an increase of approximately $38,000 as compared to the year ended December 31, 2007 primarily due to increased average net asset levels discussed above~~). Commissions and other transaction fees during the year ended December 31, 2007 were approximately $501,000, a decrease of approximately $278,000 as compared to the year ended December 31, 2006 primarily due to reduced average net asset levels discussed above. Commissions and other transaction fees during the year ended December 31, 2006 were approximately $779,000, a decrease of approximately $918,000 as compared to the year ended December 31, 2005 primarily due to reduced average net asset levels discussed above.

~~Management~~Interest ~~fees~~income ~~are~~is earned ~~calculated~~ on the ~~Net~~average ~~Asset~~daily ~~Value~~equity ofmaintained ~~Registrant’s~~with ~~investment~~the inclearing ~~the~~broker ~~Trading~~or ~~Vehicle~~bank at ~~the~~competitive ~~end~~interest ofrates ~~each month~~and, ~~and~~ therefore, ~~are~~varies ~~affected~~monthly byaccording ~~monthly~~to interest rates, trading performance and redemptions. ~~Management~~ ~~fees~~Interest ~~allocated~~income ~~from~~for the ~~Trading Vehicle during the~~ year ended December 31, ~~2008~~2009 ~~were~~was approximately $2619,000, a decrease of approximately $13106,000 as compared to the year ended December 31, ~~2007 primarily due to the effect of redemptions from the Trading Vehicle. Management fees allocated from the Trading Vehicle during the year ended December~~ ~~31,~~2008 ~~2007 were approximately $39,000, an increase of approximately $39,000, as compared to the year ended December 31, 2006~~ primarily due to ~~investments~~reduced inaverage ~~the~~net ~~Trading~~asset ~~Vehicle~~levels ~~commencing~~discussed ~~January 1,~~above ~~2007.~~and Nodeclining ~~management~~interest ~~fees were allocated from the Trading Vehicle during the year ended December 31, 2006~~rates.

~~Pursuant~~Commissions toare calculated on Registrant’s Net Asset Value at the ~~Trading~~beginning ~~Advisory~~of ~~Agreement~~each month and therefore, vary ~~Registrant~~according ~~pays~~to ~~quarterly~~monthly ~~profit~~trading ~~shares~~performance and redemptions. Other transaction fees consist of ~~20%~~National Futures Association, exchange and clearing fees as well as floor brokerage costs and give-up charges, which are based on the number of trades the Trading ~~Profit~~Advisor (executes, as ~~defined~~well inas ~~each~~which ~~respective~~exchange, ~~Trading~~clearing ~~Advisory~~firm ~~Agreement)~~or bank on, or through, which the contract is traded. ~~Advisor~~ ~~profit~~Commissions ~~shares~~and ~~during~~other transaction fees for the ~~years~~year ended December 31, ~~2008,~~2009 ~~2007 and 2006~~ were approximately $~~477~~538,000, a decrease of approximately $~~267~~1,000 ~~and~~as ~~$104~~compared to the year ended December 31,~~000~~ 2008, ~~respectively~~primarily due to reduced average net asset levels discussed above.

~~Pursuant~~Management tofees ~~the~~are ~~Declaration~~calculated ofon ~~Trust~~the ~~and~~Net ~~Trust~~Asset ~~Agreement,~~Value of Registrant’s ~~pays~~investment anin ~~incentive fee to~~ the ~~Managing~~Trading ~~Owner~~Vehicle ~~equal~~at tothe 5%end of ~~New~~each ~~Overall~~month, ~~Appreciation~~and ~~(as~~therefore, ~~defined)~~are asaffected ofby ~~each~~monthly ~~fiscal~~trading ~~year~~performance ~~end~~ and redemptions. ~~upon~~Management ~~redemption~~fees ofallocated ~~Interests.~~from ~~Managing Owner~~the ~~incentive~~Trading ~~fees~~Vehicle ~~during~~for the year ended December 31, ~~2008~~2009 were approximately $395,000., Noa ~~Managing~~decrease ~~Owner~~of ~~incentive~~approximately ~~fees~~$21,000 ~~were~~as ~~earned~~compared ~~during~~to the ~~years~~year ended December 31, ~~2007~~2008, ~~and~~primarily ~~2006~~due to the effect of redemptions from the Trading Vehicle as well as the Registrant fully redeeming its investment in the Trading Vehicle as of September 30, 2009.

~~Operating~~Pursuant ~~expenses~~to ~~include~~the ~~accounting,~~Trading ~~audit,~~Advisory ~~tax~~Agreements, ~~and~~Registrant ~~legal~~pays ~~fees,~~quarterly asprofit ~~well~~shares asof ~~printing~~20% ~~and~~of ~~postage~~Trading ~~costs~~Profit ~~related~~(as todefined ~~reports~~in ~~sent~~each torespective ~~limited~~Trading ~~owners~~Advisory Agreement). ~~Operating expenses~~Trading ~~during~~Advisor profit shares for the ~~years~~year ended December 31, ~~2008,~~2009 ~~2007 and 2006~~ were ~~approximately~~ $~~174,000, $145,000 and $43,000, respectively~~201.

Pursuant to the Declaration of Trust and Trust Agreement, Registrant pays an incentive fee to the Managing Owner equal to 5% of New Overall Appreciation (as defined) as of each fiscal year end and upon redemption of Interests. Managing Owner incentive fees for the year ended December 31, 2009 were $0.

Operating expenses include accounting, audit, tax, and legal fees, as well as printing and postage costs related to reports sent to limited owners. Operating expenses for the year ended December 31, 2009 were approximately $204,000.

Year Ended December 31, 2008

The Net Asset Value per Interest as of December 31, 2008 was $156.10, an increase of $35.27 from the December 31, 2007 Net Asset Value per Interest of $120.83. Registrant’s average net assets level for the year ended December 31, 2008 was approximately $5,676,000, an increase of approximately $279,000 as compared to the year ended December 31, 2007 primarily due to positive trading performance which more than offset the effect of redemptions.

Registrant’s performance for the year ended December 31, 2008 was 29.19%. Performance includes the percentage change in Registrant’s Net Asset Value excluding the effect of redemptions and includes the percentage impact of trading gains/(losses) less any commissions and related fees and expenses. Past performance is not necessarily indicative of future results.

Registrant’s trading gains before commissions for the year ended December 31, 2008 were approximately $2,591,000.

Commissions are calculated on Registrant’s Net Asset Value at the beginning of each month and therefore, vary according to monthly trading performance and redemptions. Other transaction fees consist of National Futures Association, exchange and clearing fees as well as floor brokerage costs and give-up charges, which are based on the number of trades the Trading Advisor executes, as well as which exchange, clearing firm or bank on, or through, which the contract is traded. Commissions and other transaction fees for the year ended December 31, 2008 were approximately $539,000, an increase of approximately $38,000 as compared to the year ended December 31, 2007 primarily due to increased average net asset levels discussed above.

Management fees are calculated on the Net Asset Value of Registrant’s investment in the Trading Vehicle at the end of each month, and therefore, are affected by monthly trading performance and redemptions. Management fees allocated from the Trading Vehicle for the year ended December 31, 2008 were approximately $26,000, a decrease of approximately $13,000 as compared to the year ended December 31, 2007 primarily due to the effect of redemptions from the Trading Vehicle.

Pursuant to the Trading Advisory Agreements, Registrant pays quarterly profit shares of 20% of Trading Profit (as defined in each respective Trading Advisory Agreement). Trading Advisor profit shares for the year ended December 31, 2008 were approximately $477,000.

Year Ended December 31, 2007

The Net Asset Value per Interest as of December 31, 2007 was $120.83, an increase of $17.40 from the December 31, 2006 Net Asset Value per Interest of $103.43. Registrant’s average net asset level for the year ended December 31, 2007 was approximately $5,397,000, a decrease of approximately $2,237,000 as compared to the year ended December 31, 2006 primarily due to the effects of redemptions.

Registrant’s performance for the year ended December 31, 2007 was 16.82%. Performance includes the percentage change in Registrant’s Net Asset Value excluding the effect of any redemptions and includes the percentage impact of trading gains/(losses) less any commissions and related fees and expenses. Past performance is not necessarily indicative of future results.

Registrant’s trading gains before commissions for the year ended December 31, 2007 were approximately $1,538,000.

Commissions are calculated on Registrant’s Net Asset Value at the beginning of each month and therefore, vary according to monthly trading performance and redemptions. Other transaction fees consist of National Futures Association, exchange and clearing fees as well as floor brokerage costs and give-up charges, which are based on the number of trades the Trading Advisor executes, as well as which exchange, clearing firm or bank on, or through, which the contract is traded. Commissions and other transaction fees for the year ended December 31, 2007 were approximately $501,000, a decrease of approximately $278,000 as compared to the year ended December 31, 2006 primarily due to reduced average net asset levels discussed above.

Management fees are calculated on the Net Asset Value of Registrant’s investment in the Trading Vehicle at the end of each month, and therefore, are affected by monthly trading performance and redemptions. Management fees allocated from the Trading Vehicle for the year ended December 31, 2007 were approximately $39,000, an increase of approximately $39,000, as compared to the year ended December 31, 2006 primarily due to investments in the Trading Vehicle commencing January 1, 2007. No management fees were allocated from the Trading Vehicle for the year ended December 31,2006.

Inflation

Inflation has had no material impact on the operations or on the financial condition of Registrant from inception through December 31, ~~2008~~2009.

Off-Balance Sheet Arrangements and Contractual Obligations

~~As of December 31, 2008,~~ Registrant ~~had~~does not ~~utilized~~have ~~special~~any ~~purpose entities to facilitate~~ off-balance -sheet ~~financing~~ arrangements ~~and~~(as ~~has~~defined noin ~~loan~~Regulation ~~guarantee arrangements or off~~S-~~balance~~K ~~sheet~~303(a)(4)(ii)) ~~arrangements~~that ofhave ~~any~~or ~~kind other than agreements entered~~are ~~into~~reasonably inlikely ~~the~~to ~~normal~~have ~~course~~a ofcurrent ~~business,~~or ~~which~~future ~~may~~effect ~~include~~on ~~indemnification~~its ~~provisions~~financial ~~related~~condition, tochanges ~~certain~~in ~~risks~~financial ~~service providers~~condition, ~~such~~revenues asor ~~our accountants~~expenses, ~~undertake~~results ~~in performing services which are in the best interests~~ of ~~Registrant.~~operations, ~~While Registrant’s exposure under such indemnification provisions cannot be estimated~~liquidity, ~~these~~capital ~~general~~expenditures ~~business~~or ~~indemnifications~~capital ~~are~~resources ~~not~~that ~~expected~~is ~~to have a~~ material ~~impact~~to ~~on Registrant’s financial position~~investors.

Registrant’s contractual obligations are with the Managing Owner, the Trading Advisor, ~~the commodity broker~~ and ~~the Trading Vehicle and, as a result of~~ its ~~investment~~ ~~in the Trading Vehicle, with the Trading Vehicle’s Trading Advisor and the Trading Vehicle’s~~ commodity broker. Management fees payable by Registrant to the Trading Advisor ~~(through~~and ~~its~~brokerage ~~investment~~commissions inpayable ~~the Trading Vehicle) and~~ to the Managing Owner are calculated as a fixed percentage of ~~the Trading Vehicle and~~ Registrant’s Net Asset Value~~, respectively~~. Incentive fees payable by the Registrant to the Trading ~~Advisors~~Advisor ~~(directly and through its investment in the Trading Vehicle)~~ are at a fixed rate, calculated as a percentage of ~~the~~ Registrant’s ~~or Trading Vehicle’s~~ “New High Net Trading Profits” (as defined in the Trading Advisory Agreement). As such, the Managing Owner cannot anticipate the amounts to be paid for future periods as Net Asset Values and “New High Net Trading Profits” are not known until a future date. Commissions payable to ~~the Fund~~Registrant’s ~~direct Trading Advisors and the Trading Vehicle’s~~ commodity ~~brokers~~broker are based on a cost per executed trade and, as such, the Managing Owner cannot anticipate the amount that will be required under the brokerage agreement, as the level of executed trades are not known until a future date. These agreements are effective for one-year terms, renewable automatically for additional one-year terms unless terminated. Additionally, these agreements may be terminated by either party thereto for various reasons. ~~For~~Additionally, asince ~~further~~Registrant ~~discussion~~does ofnot ~~Registrant’s~~enter ~~contractual~~into other long-term debt obligations, ~~see~~capital ~~Notes~~lease 2obligations, ~~and~~operating ~~3 to~~lease obligations or other long-term liabilities that would otherwise be reflected on Registrant’s ~~financial~~Statement ~~statements~~of ~~for~~Financial ~~the~~Condition, ~~year~~a ~~ended~~table ~~December 31~~of contractual obligations has not been presented. For a further discussion of Registrant’s contractual obligations, ~~2008~~see Notes 2, ~~which~~3 isand ~~filed~~4 asof anRegistrant’s ~~exhibit~~2009 ~~herewith~~Annual Report attached hereto.

Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Information regarding quantitative and qualitative disclosures about market risk is not required pursuant to Item 305(e) of Regulation S-K.

Item 8.

Financial Statements and Supplementary Data

The financial statements are incorporated by reference to pages 32 through 618 of the Registrant’s ~~2008~~2009 Annual Report, which is filed as an exhibit hereto.

Selected unaudited quarterly financial data for the years ended December 31, ~~2008~~2009 and ~~2007~~2008 are summarized below:

	For the periodfrom January 1,2008 toMarch 31, 2008			For the periodfrom April 1,2008 toJune 30, 2008			For the periodfrom July 1,2008 toSeptember 30, 2008				For the periodfrom October 1,2008 toDecember 31, 2008
	For the periodfrom January 1,2009 to March 31, 2009				For the periodfrom April 1,2009 to June 30, 2009				For the periodfrom July 1,2009 toSeptember 30, 2009				For the periodfrom October 1,2009 toDecember 31, 2009
Total revenues (including interest)	$	~~688~~(197,~~297~~447	)	$	~~754,886~~$	20,614	$	~~121,910~~	$	(158,411	$)	~~1,150,891~~	$	(282,829	)
Total revenues (including interest) less commissions and other transaction fees	$	562,455		$	617,623		$	(11,375	)		$	1,007,988
Total revenues (including interest)less commissions and other transaction fees	$	(346,000	)		$	(117,586	)		$	(288,459	)		$	(403,826	)
Net income (loss)	$	390,675		$	431,647		$	(89,341	)		$	726,914
Net loss	$	(393,940	)		$	(174,455	)		$	(349,772	)		$	(446,162	)
Net income (loss) per weighted average Interest	$	8.92		$	10.04		$	(2.17	)		$	18.25
Net loss per weightedaverage Interest	$	(10.11	)		$	(4.54	)		$	(9.20	)		$	(11.92	)

	For the periodfrom January 1,2007 toMarch 31, 2007			For the periodfrom April 1,2007 toJune 30, 2007		For the periodfrom July 1,2007 toSeptember 30, 2007		For the periodfrom October 1,2007 toDecember 31, 2007
Total revenues (including interest)	$	(448,290	)	$	1,307,958	$	251,681	$	695,316
Total revenues (including interest) less commissions and other transaction fees	$	(579,529	)	$	1,187,108	$	130,995	$	567,211
Net income (loss)	$	(617,863	)	$	1,026,139	$	68,273	$	378,140
Net income (loss) per weighted average Interest	$	(11.27	)	$	19.71	$	1.41	$	8.24


	For the period from January 1, 2008 to March 31, 2008		For the period from April 1, 2008 to June 30, 2008		For the period from July 1, 2008 to September 30, 2008			For the period from October 1, 2008 to December 31, 2008
Total revenues (including interest)	$	688,297	$	754,886	$	121,910		$	1,150,891


Total revenues (including interest) less commissions and other transaction fees	$	562,455	$	617,623	$	(11,375	)	$	1,007,988


Net income (loss)	$	390,675	$	431,647	$	(89,341	)	$	726,914


Net income (loss) per weighted average Interest	$	8.92	$	10.04	$	(2.17	)	$	18.25

There were no extraordinary, unusual or infrequently occurring items recognized in any quarter reported above, and the Trust 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

None

Item 9AT.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Registrant’s “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) are designed to ensure that information required to be disclosed by Registrant in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “SEC”), and that such information is accumulated and communicated to Registrant’s management, including the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration (who, in these capacities, function as the Principal Executive Officers and Principal Financial Officer/Accounting, respectively, of Registrant), as appropriate to allow for timely decisions regarding required disclosure.

In designing and evaluating Registrant’s disclosure controls and procedures, the Managing Owner recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. Because of the inherent limitations in all control systems, no evaluation of the controls can prove absolute assurance that all control issues and instances of fraud, if any, within Registrant have been detected.

22The Managing Owner’s management, under the supervision and with the participation of certain officers of the Managing Owner (including the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration), has evaluated the effectiveness of Registrant’s disclosure controls and procedures as of December 31, 2009. Based upon such evaluation, the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration have concluded that, as of December 31, 2009, Registrant’s disclosure controls and procedures were effective.

relative to their costs. Because of the inherent limitations in all control systems, no evaluation of the controls can prove absolute assurance that all control issues and instances of fraud, if any, within Registrant have been detected.

The Managing Owner’s management, under the supervision and with the participation of certain officers of the Managing Owner (including the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration), has evaluated the effectiveness of Registrant’s disclosure controls and procedures as of December 31, 2008. Based upon such evaluation, the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration have concluded that, as of December 31, 2008, Registrant’s disclosure controls and procedures were effective.

Management’s Report on Internal Control Over Financial Reporting

Registrant’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of Registrant’s management, including the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration, Registrant conducted an evaluation of the effectiveness of its internal control over financial reporting as of December 31, ~~2008~~2009 based on the framework in “Internal Control - Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on the evaluation under the framework in “Internal Control - Integrated Framework” issued by COSO, the Managing Owner concluded that Registrant’s internal controls over financial reporting were effective as of December 31, ~~2008~~ 2009.

There are inherent limitations in the effectiveness of any internal control system, including the possibility of human error and the circumvention of overriding controls. Because of these inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Accordingly, even effective internal control over financial reporting can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Attestation Report of the Registered Public Accounting Firm

Registrant’s ~~2008~~2009 Annual Report does not include an attestation report of Registrant’s independent registered public accounting firm regarding the Registrant’s internal control over financial reporting. Management’s report was not subject to attestation by Registrant’s independent registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit Registrant to provide only management’s report in ~~its~~Registrant’s ~~2008~~2009 Annual Report.

Changes in Internal Control Over Financial Reporting

There have been no changes in Registrant’s internal control over financial reporting (as defined in Rules 13a – 15(f) and 15d – 15(f) under the Exchange Act) during the fourth quarter of ~~2008~~2009 that have materially affected, or are reasonably likely to materially affect, Registrant’s internal control over financial reporting.

Item 9B.

Other Information

None.

PART III

Item 10.

Directors, Executive Officers and Corporate Governance

~~The~~ Registrant had no directors or executive officers. ~~The~~ Registrant is managed by the Managing Owner. The directors and executive officers of the Managing Owner are as follows:

~~The~~Mr. Kenneth A. ~~directors~~Shewer (born 1953) has been a principal, associated person and ~~executive~~NFA ~~officers~~associate member of the Managing Owner since February 8, 1984, May 1, 1985 since August 1, 1985, respectively. He has been Chairman and Co-Chief Executive Officer of the Managing Owner ~~are~~since February 1984. Mr. Shewer has been Chairman and Co-Chief Executive Officer of Kenmar Global Investment Management LLC (“KGIM LLC”), an investment management firm, since its inception in October 2005 and has been a principal, associated person and NFA associate member of KGIM LLC since December 12, 2005. Mr. Shewer has been Chairman and Co-Chief Executive Officer of Signature Advisors Group LLC (“Signature”, and formerly known as ~~follows:~~Kenmar Investment Adviser LLC), an investment management firm, since its inception in October 2005. Mr. Shewer has been Chairman and Co-Chief Executive Officer of and ClariTy Managed Account & Analytics Platform LLC (“ClariTy”), an investment management firm, since its inception in May 2009 and has been a principal, associated person and NFA associate member of ClariTy since June 9, 2009, June 10, 2009 and June 24, 2009, respectively. Mr. Shewer has been a director of Kenmar Securities Inc. (“KSEC”), a broker-dealer, since December 1995 and has been registered as a principal of KSEC since May 3, 2004. Mr. Shewer is Co-Chairman of the Managing Owner’s Investment Committee.

Mr. ~~Kenneth A.~~ Shewer ~~(born~~was ~~1953),~~ a ~~Director and Co-Chief Executive Officer of the Managing Owner, has been a~~ principal, associated person and NFA associate member of ~~the~~Kenmar ~~Managing~~GIM ~~Owner~~Inc., ~~since~~an ~~February 8,~~investment ~~1984~~management firm, from March ~~May 1~~3,~~1985~~ ~~and~~1999 ~~August~~until February 124, ~~1985~~2007, ~~respectively.~~a Heprincipal, ~~has~~associated ~~been~~person ~~Chairman~~ and ~~Co-Chief~~NFA ~~Executive~~associate ~~Officer~~member of ~~the~~Kenmar ~~Managing~~Global ~~Owner~~Strategies ~~since February 1984. Mr. Shewer was employed by Pasternak, Baum and Co.,~~ Inc. ~~(“Pasternak~~, ~~Baum”),~~ an ~~international~~investment ~~cash~~management ~~commodity~~ firm, from ~~June~~October 12, ~~1976~~1993 until ~~September 1983. Mr.~~April ~~Shewer created and managed Pasternak~~7, ~~Baum’s Grain Logistics and Administration Department and created its Domestic Corn and Soybean Trading Department. Mr. Shewer’s responsibilities at Pasternak~~2006, ~~Baum~~a ~~included~~principal ~~merchandising South American grain~~ and ~~exporting United States corn and~~ ~~soybeans.~~associated Inperson ~~1982, Mr. Shewer became co-manager~~ of ~~Pasternak,~~Kenmar ~~Baum’s~~IA ~~F.O.B. Corn Department. In 1983~~Corp, ~~Mr. Shewer~~an ~~was~~investment ~~made~~management ~~Vice President and Director of Pasternak~~firm, ~~Baum.~~from ~~Mr.~~August ~~Shewer~~5, 1991 ~~has~~until ~~traveled extensively in South America and Europe in connection with the commodity business and has organized and effected grain and oilseed sales in those regions~~January 12, ~~the former Soviet Union~~2007, and ~~the~~a ~~Far~~NFA ~~East.~~associate ~~While at Pasternak, Baum, Mr. Shewer was a~~ member of ~~the~~Kenmar ~~St.~~IA ~~Louis~~Corp ~~Merchants Exchange~~from ~~and~~May 5, 1992 ~~was~~until ~~associated~~January 12, ~~with the National Grain and Feed Association and the North American Export Grain Association~~2007.

23Mr. Shewer graduated from Syracuse University with a B.S. degree in 1975. Mr. Shewer sits on the Board of the Stacy Joy Goodman Memorial Foundation, a non-profit charity committed to finding a cure for Juvenile Diabetes. He is also a member of the Board of the Diabetes Research Institute Foundation, a not-for-profit organization affiliated with the University of Miami School of Medicine. Mr. Shewer is a founding member and member of the Board of the Greenwich Roundtable.

Mr. Marc S. Goodman (born 1948) has been a principal, associated person and NFA associate member of the Managing Owner since February 7, 1984, May 1, 1985 since August 1, 1985, respectively. He has been President and Co-Chief Executive Officer of the Managing Owner since February 1984. Mr. Goodman has been President, Co-Chief

~~Mr. Shewer~~ Executive ~~graduated~~Officer ~~from~~and ~~Syracuse~~Treasurer ~~University~~of ~~with~~KGIM aLLC, ~~B.S.~~an ~~degree~~investment inmanagement ~~1975.~~firm, ~~Mr. Shewer~~since ~~sits~~its oninception ~~the~~in ~~Board~~October of2005 ~~the Stacy~~and ~~Joy~~has ~~Goodman~~been ~~Memorial~~a ~~Foundation~~principal, aassociated ~~non-profit~~person ~~charity~~and ~~committed~~NFA toassociate ~~finding~~member aof ~~cure~~KGIM ~~for~~LLC since ~~Juvenile~~December 12, ~~Diabetes~~2005. He ishas ~~also~~been aPresident, ~~member~~Co-Chief ofExecutive ~~the~~Officer ~~Board~~and Treasurer of ~~the~~Signature, ~~Diabetes~~an ~~Research~~investment ~~Institute~~management ~~Foundation~~firm, asince ~~not-for-profit~~its ~~organization~~inception ~~affiliated~~in ~~with~~October ~~the University of Miami School of Medicine~~2005. Mr. ~~Shewer~~Goodman ishas abeen ~~founding~~President, ~~member~~Co-Chief ~~and~~Executive aOfficer ~~member~~and Treasurer of ~~the~~ClariTy, ~~Board~~an ofinvestment ~~the~~management ~~Greenwich~~firm, ~~Roundtable.~~since Heits isinception ~~also~~in May 2009 and has been a ~~Director~~principal, associated person and NFA associate member of ~~The~~ClariTy ~~Kenmar~~since ~~Global~~June 9, ~~ECO~~2009, June 10, ~~Foundation~~2009 ~~Inc.~~and June 24, ~~which~~2009, respectively. ~~was~~He ~~formed~~has inbeen ~~order~~a todirector ~~make~~of KSEC, a ~~meaningful~~broker-dealer, ~~positive~~ ~~impact~~since onDecember ~~society~~1995 and ~~the~~has ~~environment~~been byregistered ~~identifying~~as ~~and~~a ~~supporting~~principal ~~organizations~~of ~~that~~KSEC ~~promote~~since ~~environmental~~May 3, ~~and~~2004. ~~sustainability~~Mr. Goodman ~~causes~~is ~~around~~Co-Chairman of the ~~world~~Managing Owner’s Investment Committee.

Mr. ~~Marc S.~~ Goodman ~~(born~~was ~~1948),~~ a ~~Director and Co-Chief Executive Officer of the Managing Owner, has been a~~ principal, associated person and NFA associate member of ~~the~~Kenmar ~~Managing~~GIM ~~Owner~~Inc., ~~since~~an ~~February 7,~~investment management ~~1984~~firm, from March ~~May 1~~3, ~~1985~~1999 ~~and~~until ~~August~~February 124, ~~1985~~2007, ~~respectively.~~a Heprincipal, ~~has~~associated ~~been~~person ~~President~~ and ~~Co-Chief~~NFA ~~Executive~~associate ~~Officer~~member of ~~the~~Kenmar ~~Managing~~Global ~~Owner~~Strategies ~~since February 1984~~Inc. ~~Mr. Goodman joined Pasternak~~, ~~Baum~~an ininvestment ~~September~~management ~~1974~~firm, ~~and was a Vice President and Director~~ from ~~July~~October 12, ~~1981~~1993 until ~~September 1983. While at Pasternak~~April 7, ~~Baum~~2006, ~~Mr. Goodman~~a ~~was~~principal ~~largely~~and associated ~~responsible~~person ~~for business development outside~~ of ~~the~~Kenmar ~~United~~IA ~~States~~Corp, ~~for~~an investment ofmanagement ~~its corporate retirement funds~~firm, ~~and~~from ~~for selecting trading personnel in the Vegetable Oil Division. Mr.~~August ~~Goodman also created and developed Pasternak~~5, ~~Baum’s~~1991 ~~Lauric~~on ~~Oils Department. Mr.~~January ~~Goodman~~12, ~~has conducted extensive business in South America~~2007, ~~Europe~~ and ~~the~~a ~~Far~~NFA ~~East;~~associate hemember ~~has been a merchandiser~~ of ~~all~~Kenmar ~~major~~IA ~~vegetable~~Corp ~~oils~~from ~~and their by-products~~May 5, ~~and~~1992 ofuntil ~~various other commodities such as sunflower seeds~~January 12, ~~frozen poultry, pulses and potatoes~~2007.

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. Mr. Goodman is a member of the American Arbitration Association; while at Pasternak, Baum, he was a member of the National Institute of Oilseeds Products and the American Fats and Oils Association (including its Export Rules Committee).

Mr. Goodman is the Chairman of the Board of the Stacy Joy Goodman Memorial Foundation, a non-profit charity committed to finding a cure for Juvenile Diabetes. He is also ~~the most recent past~~ Chairman of the Board of the Diabetes Research Institute Foundation, a not-for-profit organization that is the principle source of funding for the Diabetes Research Institute, a world renowned cure based research center affiliated with the University of Miami School of Medicine. Mr. Goodman is a founding member ~~and member~~ of the ~~Board of the~~ Greenwich Roundtable. He is also a Director of The Kenmar Global ECO Foundation Inc., which was formed in order to make a meaningful, positive impact on society and the environment by identifying and supporting organizations that promote environmental and sustainability causes around the world.

~~Messrs~~Ms. Esther ~~Shewer~~Eckerling Goodman (born 1952) has been a principal, associated person and ~~Goodman~~NFA ~~left~~associate ~~Pasternak~~member of the Managing Owner since May 12, ~~Baum~~1988, July 17, 1986 and July 17, 1986, respectively. She joined the Managing Owner in ~~September~~July ~~1983~~1986 toand ~~form~~is ~~Kenmar~~its ~~Advisory~~Chief ~~Corp~~Operating Officer and Senior Executive Vice President. ~~(now~~Ms. Goodman ~~known~~has asbeen ~~Preferred~~Senior ~~Investment~~Executive ~~Solutions~~Vice ~~Corp~~President and Chief Operating Officer of KGIM LLC, an investment management firm, and Ms. Goodman has been Senior Executive Vice President and Chief Operating Officer and a principal, ~~the~~associated person and NFA associate member of KGIM LLC since December 12, 2005. She has been Senior Executive Vice President and COO of ~~Managing~~Signature, ~~Owner)~~an investment management firm, since its inception in October 2005. She has been Senior Executive Vice President and ~~they~~Chief ~~have~~Operating ~~occupied~~Officer ~~their~~of ~~present~~ClariTy, ~~positions~~an investment management firm, since its inception in May 2009 and has been a principal, associated person and NFA associate member of ClariTy since June 9, 2009, June 10, 2009 and June 24, 2009, respectively. Ms. Goodman has been a registered representative with KSEC, a broker-dealer, since December 1995 and a principal, associated person and NFA associate member of KSEC since January 1, 2003, June 24, 2003 and June 24, 2003, respectively. She is a member of the Managing Owner’s ~~since~~Investment ~~that time~~Committee.

Ms. ~~Esther Eckerling~~ Goodman ~~(born 1952),~~was ~~Senior Executive Vice President and Chief Operating Officer of the Managing Owner, has been~~ a principal, associated person and NFA associate member of ~~the~~Kenmar ~~Managing~~GIM ~~Owner~~Inc., ~~since~~an ~~May 12,~~investment ~~1988~~management firm, from March ~~July 17~~3, ~~1986~~1999 ~~and~~until ~~July~~February 1724, ~~1986~~2007, ~~respectively.~~ ~~She~~a ~~joined~~principal, ~~the~~associated ~~Managing~~person ~~Owner in July 1986~~ and isNFA ~~its~~associate ~~Chief~~member ~~Operating~~of ~~Officer~~Kenmar ~~and~~Global ~~Senior~~Strategies ~~Executive Vice President. Ms. Goodman 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.,~~an ininvestment ~~the~~management ~~areas of hedging~~firm, ~~speculative~~from ~~trading and tax arbitrage. In 1976~~October 12, ~~Ms. Goodman~~1993 ~~joined~~until ~~Loeb Rhoades~~April &7, ~~Company~~2006, ~~Inc.~~a ~~where~~principal ~~she was responsible for developing~~ and ~~managing~~associated aperson ~~managed~~of ~~futures~~Kenmar ~~program~~IA ~~that~~Corp, inan ~~1979,~~investment ~~became~~management ~~the trading system for Westchester Commodity Management~~firm, anfrom ~~independent commodity-trading advisor of which Ms.~~August ~~Goodman~~5, ~~was~~1991 auntil ~~founder and principal. From 1983 through mid-1986, Ms.~~January ~~Goodman~~12, ~~was employed as a marketing executive at Commodities Corp. (USA) of Princeton~~2007, ~~New~~and ~~Jersey.~~NFA ~~Ms. Goodman~~associate ~~was~~member ~~a Director~~ of ~~the~~Kenmar ~~Managed~~IA ~~Futures~~Corp ~~Trade Association~~ from ~~1987 to 1991 and a Director of its successor organization~~May 5, ~~the Managed~~1992 ~~Futures~~until ~~Association~~January 12, ~~from 1991 to 1995 (now the Managed Funds Association)~~2007. ~~Ms. Goodman graduated from Stanford University with a B.A. degree in psychology in 1974.~~

~~Mrs~~Ms. ~~Esther~~Goodman ~~Eckerling~~was ~~Goodman~~a isDirector ~~married~~of the Managed Futures Trade Association from 1987 to Mr1991 and a Director of its successor organization, the Managed Futures Association, from 1991 to 1995 (now the Managed Funds Association). Ms. ~~Marc S~~Goodman graduated from Stanford University with a B.A. ~~Goodman~~degree in psychology in 1974.

Mr. Braxton Glasgow III (born 1953) has been a principal, associated person, branch manager and NFA associate member of the Managing Owner since June 21, 2001, June 21, 2001, July 13, 2004 and June 8, 2001, respectively. Mr. Glasgow has been an Executive Vice President of the Managing Owner since joining the Managing Owner in is May 2001. Mr. Glasgow ishas ~~responsible~~been ~~for business development. Previously, he served as~~ Executive Vice President, ~~Director~~ of ~~Client~~KGIM ~~Services and a Principal at Chesapeake Capital Corp.~~LLC, aan ~~commodities~~investment ~~trading~~management firm, ~~and~~since asits ~~Senior~~inception ~~Managing~~in ~~Director~~October at2005, ~~Signet~~a ~~Investment~~principal, ~~Banking~~associated ~~Co.~~person ~~Mr. Glasgow~~and ~~began~~NFA ~~his~~associate ~~career~~member atof ~~PricewaterhouseCoopers,~~KGIM ~~where~~LLC hesince ~~specialized~~December 12, in2005, ~~mergers~~ and ~~acquisitions~~a branch ~~and~~manager ~~private~~since ~~equity~~December 21, ~~including~~ ~~extensive work in Europe and the Far East~~2006. Mr. Glasgow ~~received~~has abeen ~~B.S.~~Chief inExecutive ~~Accounting~~Officer ~~from~~of ~~the~~KSEC, ~~University~~a ofbroker-dealer, ~~North~~since ~~Carolina~~June at2001 ~~Chapel~~has ~~Hill~~been ~~and~~a isprincipal, aassociated ~~Certified~~person, ~~Public~~branch ~~Accountant.~~manager ~~From~~and ~~1994~~NFA toassociate ~~1995,~~member heof ~~was~~KSEC ~~President~~since ofJanuary 12, 2006. ~~the~~He ~~Jay~~is ~~Group~~responsible ~~Ltd~~for business development. Mr. Glasgow ~~received~~is a ~~B.S.~~member ~~degree~~of ~~in accounting from~~ the ~~University~~Managing ofOwner’s ~~North~~Investment ~~Carolina in 1975~~Committee.

MsMr. ~~Maureen D.~~Glasgow ~~Howley~~was ~~(born 1967) has been~~ a principal ~~of the Managing Owner since August 11~~, ~~2003.~~associated ~~She~~person ~~has been a Senior Vice President~~ and ~~Chief~~NFA ~~Financial~~associate ~~Officer~~member of ~~the~~Kenmar ~~Managing~~GIM ~~Owner since joining the Managing Owner in July 2003~~Inc., ~~She~~an isinvestment ~~responsible~~management ~~for~~firm, ~~corporate~~from ~~finance. From~~October 9, ~~July~~ 2001 until ~~July 2003, Ms.~~February ~~Howley was an Associate at Andor Capital Management~~24, ~~LLC,~~2007 anand ~~equity~~a ~~hedge~~branch ~~fund~~manager of ~~company.~~Kenmar AtGIM ~~Andor, she was responsible for managing the corporate accounting functions~~Inc. from

2429

~~Previously~~July 13, ~~she~~2004 ~~was~~until ~~the Controller at John W. Henry~~February ~~& Company~~24, ~~Inc.~~2007, aan ~~commodity-trading~~associated ~~advisor~~person ~~(“JWH”),~~and ~~where~~NFA ~~she~~associate ~~held~~member ~~positions~~ of ~~increasing~~ ~~responsibility~~Kenmar ~~from~~Global ~~September~~Strategies ~~1996 to July 2001~~Inc., ~~She~~an ~~began~~investment ~~her~~management ~~career~~firm, atfrom ~~Deloitte~~August &9, ~~Touche~~2001 ~~where~~until April 7, ~~she~~2006, ~~specialized~~a inprincipal ~~the~~of ~~financial~~Kenmar ~~services~~Global ~~industry~~Strategies Inc. ~~She~~from ~~held~~August 13, 2001 ~~many~~until ~~positions~~April 7, of2006 ~~increasing~~, ~~responsibility~~a ~~for~~principal ~~seven~~of ~~years,~~Kenmar ~~and~~IA ~~left as~~Corp., an ~~Audit~~investment ~~Senior~~management ~~Manager~~firm, infrom ~~September~~May 4, ~~1996~~2004 tountil ~~join JWH. Ms.~~January ~~Howley~~12, ~~received~~2007, aand, ~~B.A.~~an associated inperson, ~~Accounting~~NFA ~~from~~associate ~~Muhlenberg~~member ~~College~~and inbranch ~~1989~~manager ~~and~~of ~~designation~~Kenmar asIA aCorp. ~~Certified~~from ~~Public~~August 28, ~~Accountant~~2006 inuntil ~~1990~~January 12, 2007.

Mr. ~~Lawrence S.~~Glasgow ~~Block~~received ~~(born 1967) has been~~ a ~~Senior Vice President and General Counsel of the Managing Owner since joining the Managing Owner in March 2005~~B. ~~Prior to joining the Managing Owner, Mr~~S. ~~Block~~ ~~was~~in aAccounting ~~Managing Director and General Counsel of Lipper & Company, L.P., a New York-based investment management firm,~~ from ~~January 1998 until March 2005. Prior to joining Lipper & Company, Mr. Block was a senior associate at~~ the ~~law~~University ~~firm~~of ~~Cadwalader,~~North ~~Wickersham &~~Carolina ~~Taft in New York from May 1996 through December 1997. Mr. Block also worked as an associate~~ at ~~the~~Chapel ~~law~~Hill ~~firm~~and ~~Proskauer~~is ~~Rose Goetz &~~a ~~Mendelsohn~~Certified ~~from~~Public ~~September 1992 through May 1996~~Accountant. ~~Mr. Block~~He received a B.S. indegree ~~Business Administration with a concentration~~ in ~~Accounting~~accounting from the University of North Carolina ~~at Chapel Hill~~ in ~~1989 and a J~~1975.D. ~~from the University of Pennsylvania School of Law in 1992. Mr. Block’s registration as a principal of the Managing Owner has been effective since March 17, 2005.~~

Mr. ~~David~~Lawrence KS. ~~Spohr~~Block (born ~~1963~~1967), ~~Senior~~has been Executive Vice President and ~~Director~~General ofCounsel ~~Fund Administration~~ of the Managing Owner, ~~joined~~since January 2010 and has been a principal of the Managing Owner insince March 17, 2005. He iswas ~~responsible~~Senior ~~for~~Vice ~~the~~President ~~development~~ and ~~execution~~ General Counsel of the ~~administration~~Managing ~~group~~Owner ~~support~~from ~~responsibilities~~March 2005 to December 2009. Mr. Block has been Executive Vice President and General Counsel KGIM LLC, asan ~~Director~~investment ofmanagement ~~Fund~~firm, ~~Administration~~since January 2010, ~~functions~~Senior asVice ~~the~~President ~~Principal~~and ~~Financial/Accounting~~General ~~Officer~~Counsel of ~~Registrant.~~KGIM ~~From~~LLC ~~2002~~since toits inception in October 2005 and a principal of KGIM LLC since December 12, Mr2005. ~~Spohr~~ ~~was~~He ahas been Executive Vice President atand ~~Safra~~General ~~Group,~~Counsel ~~where~~of heSignature, ~~was responsible~~an ~~for~~investment ~~the~~management ~~Alternative Investment operations~~firm, ~~tax~~since ~~reporting~~January 2010 and ~~pricing~~Senior ~~valuation.~~Vice ~~From~~President ~~2000~~and toGeneral ~~2002,~~Counsel heof ~~was~~Signature asince ~~consultant~~its toinception ~~The~~in ~~Safra~~October ~~Group~~2005. Mr. Block ~~From~~has ~~1994-1999,~~been heExecutive ~~was~~Vice ~~Manager~~President ofand ~~Investment~~General ~~Services~~Counsel ~~for~~of ~~the~~ClariTy, ~~Bank~~an ofinvestment ~~Bermuda~~management firm, ~~supporting~~since ~~private client~~January ~~transactions.~~2010, ~~From~~Senior ~~1993~~Vice toPresident ~~1994,~~and heGeneral ~~was~~Counsel ~~the~~since ~~Manager~~its ofinception ~~Global~~in ~~Operations~~May ~~for~~2009 ~~Highbridge~~and ~~Capital~~has ~~Corporation~~been ~~during~~a ~~the~~principal ~~fund’s~~of ~~infancy.~~ClariTy ~~Mr.~~since June ~~Spohr~~9, ~~received~~2009. aHe ~~B.S.~~has inbeen ~~Business~~Executive ~~Economics~~Vice ~~from~~President ~~The~~and ~~State~~General ~~University~~Counsel of ~~New~~KSEC, ~~York~~a ~~College~~broker-dealer, ~~at Oneonta~~since inJanuary ~~1985~~2010, Senior Vice President and ~~designation~~General asCounsel since March 2005 and has been a ~~Chartered~~principal ~~Financial~~of ~~Analyst~~KSEC insince ~~1998.~~March 17, 2005.

MsMr. ~~Joanne D.~~Block ~~Rosenthal~~was ~~(born 1965) has been~~ a principal~~, associated~~ ~~person~~of ~~and~~Kenmar ~~NFA~~GIM ~~associate~~Inc., ~~member~~an ofinvestment ~~the~~management ~~Managing~~firm, ~~Owner~~from ~~since February~~March 2917, ~~2000,~~ 2005 until February 2924, ~~2000 and November 30~~2007, ~~1999,~~a ~~respectively.~~principal ~~Ms. Rosenthal is Senior Vice President and Director~~ of ~~Portfolio~~Kenmar ~~Management~~Global ~~and Implementation~~Strategies ~~for the Managing Owner~~Inc., ~~Prior~~an toinvestment ~~joining~~management ~~the Managing Owner in October 1999~~firm, ~~Ms. Rosenthal~~from ~~spent nine years at The Chase Manhattan Bank~~March 17, in2005 ~~various~~until ~~positions of increasing responsibility. From July 1991 through~~ April 7, ~~1994~~2006, ~~she managed the Trade Execution Desk~~ and ~~from~~a ~~May~~principal ~~1994~~of ~~through~~Kenmar ~~September~~IA ~~1999~~Corp., ~~she~~an ~~was~~investment amanagement ~~Vice President and Senior Portfolio Manager of Chase Alternative Asset Management~~firm, ~~Inc.~~from ~~Ms.~~March ~~Rosenthal~~17, ~~received a Masters of Business Administration with a~~2005 ~~concentration~~until ~~in Finance from Cornell University and a Bachelor of Arts in Economics from Concordia University in Montreal~~January 12, ~~Canada~~2007.

~~Mr. Peter J.~~Prior ~~Fell~~to ~~(born 1960), Senior Vice President and Director of Due Diligence since~~ joining the Managing Owner ~~in September 2004. He is responsible for manager selection and due diligence. Mr. Fell is a member of the Investment Committee. From 2000 through August 2004~~, Mr. ~~Fell~~Block was a ~~founding~~Managing ~~partner~~Director and General ~~Investment~~Counsel ~~Director~~ of ~~Starview~~Lipper & ~~Capital Management. Prior to co-founding Starview Capital Management~~Company, MrL. ~~Fell was Vice President of Research and Product Development at Merrill Lynch Investment Partners Inc (MLIP)~~P., Hea ~~was~~New ~~responsible~~York-based ~~for the~~ investment ~~evaluation~~management ~~and~~firm, ~~recommendation~~from ~~process~~January ~~pertaining~~1998 tountil ~~MLIP~~March ~~funds and sat on MLIP’s Investment Committee~~2005. ~~Prior to joining MLIP,~~ Mr. ~~Fell~~Block ~~had~~received ~~been~~a ~~with~~B.S. ~~Deutsche Bank Financial Products Corporation for six years starting~~ in ~~1989,~~Business ~~where~~Administration hewith ~~was~~a ~~Vice~~concentration ~~President~~ in ~~the~~Accounting ~~over-the-counter~~from ~~fixed income derivatives area. From 1985 to 1989, he was employed by Manufacturers Hanover Trust Company, ultimately holding~~ the ~~position~~University of North ~~Assistant~~Carolina ~~Vice~~at ~~President~~Chapel Hill in ~~the~~1989 ~~Swaps~~ and ~~Futures~~a ~~Group~~J. MrD. ~~Fell~~ ~~holds~~from anthe ~~A.B.~~University ~~cum~~of ~~laude~~Pennsylvania inSchool ~~Music~~of ~~Theory~~Law ~~and History and an M.B.A.~~ in ~~Finance from Columbia University~~1992.

MrMs. ~~Bala~~Maureen D. ~~Kasturi~~Howley (born ~~1964~~1967), ~~Senior~~has ~~Vice~~been ~~President~~a ~~and~~principal ~~Director~~ of ~~Risk Management , joined~~ the Managing Owner insince ~~March~~August 11, ~~2006~~2003. HeShe ishas ~~responsible~~been ~~for investment~~Senior ~~analytics~~Vice ~~and~~President ~~portfolio/risk management~~ and ~~collaborates~~Chief onFinancial ~~manager~~Officer ~~due diligence and analytics. Mr. Kasturi is a member~~ of the ~~Investment~~Managing ~~Committee.~~Owner ~~From~~since ~~January~~joining ~~2002~~the ~~through~~Managing ~~January~~Owner in ~~2004,~~July Mr2003. Ms. ~~Kasturi~~Howley ~~served~~has asbeen aSenior ~~Managing Partner~~Vice President and ~~Portfolio~~Chief ~~Manager~~Financial atOfficer ~~Vega~~of ~~Asset~~KGIM ~~Management USA~~ LLC, ~~and~~an ~~from~~investment ~~January~~management ~~2004~~firm, tosince ~~July~~its ~~2005,~~inception hein ~~served~~October as2005 ~~Managing~~and ~~Partner~~has ~~and~~been ~~Portfolio~~a ~~Manager~~principal of ~~the~~KGIM ~~Taurus~~LLC ~~Global~~since ~~Macro~~December 12, ~~Fund at VegaPlus Capital Partners USA LLC~~2005. ~~Prior~~She tohas ~~joining VegaPlus,~~been ~~Mr. Kasturi~~Senior ~~was~~Vice aPresident ~~macro~~and ~~fund~~Chief ~~manager~~Financial atOfficer ~~Bankers~~of ~~Trust/Deutsch~~Signature, ~~Asset~~an ~~Management~~investment ~~from~~management ~~January~~firm, ~~2000~~since ~~through~~its ~~December~~inception ~~2001~~in ~~for~~October ~~the~~2005. DBMs. Howley ~~Global~~has ~~Macro~~been ~~Fund~~Senior ~~where~~Vice hePresident ~~developed quantitative models for valuation~~ and ~~trading~~Chief ~~across~~Financial ~~all~~Officer ~~asset~~of ~~classes~~ClariTy, ~~and strategies.~~an ~~From~~investment ~~October~~management ~~1997 through December 2000~~firm, since heits ~~was~~inception ~~Portfolio~~in ~~Manager~~May at2009 ~~Bankers~~and ~~Trust~~has ~~for~~been a ~~global~~principal ~~fixed~~of ~~income~~ClariTy ~~fund~~since June 9, 2009. MrMs. ~~Kasturi~~Howley ~~worked~~has atbeen ~~Tiger~~Senior ~~Management~~Vice ~~from~~President ~~March~~and ~~1993~~Chief ~~through~~Financial ~~October~~Officer ~~1997~~of asKSEC, a ~~Risk Manager~~broker-dealer, ~~where~~since heAugust ~~developed market~~2003 ~~risk systems~~ and ~~was~~has been a ~~member~~principal of ~~the~~KSEC since ~~Risk Management Committee. Mr.~~January ~~Kasturi has an undergraduate degree in Commerce from Osmania University in India~~12, an2006. ~~MBA~~She ~~from~~is ~~Northeast~~responsible ~~Louisiana~~for ~~University~~corporate ~~and a MS in Computer Science from Ballarat University in Australia~~finance.

Ms. ~~Melissa~~Howley ~~Cohn~~was ~~(born~~a ~~1960),~~principal ~~Managing~~of Kenmar ~~Director~~GIM ~~and Senior Research Analyst~~Inc., ~~joined~~an ~~the~~investment ~~Managing~~management ~~Owner in 1988. Her responsibilities include manager due diligence~~firm, ~~manager~~from ~~analysis~~August 11, ~~and~~2003 ~~portfolio/risk~~until ~~management. Ms.~~February ~~Cohn~~24, 2007, ~~has~~a ~~been~~principal ~~involved~~of inKenmar ~~the~~Global ~~futures~~Strategies ~~industry for over 20 years~~Inc., ~~Prior~~an toinvestment ~~joining~~management ~~the~~firm, ~~Managing~~from ~~Owner~~August 11, ~~she~~2003 ~~spent~~until ~~six~~April 7, ~~years~~2006, inand ~~positions~~a principal of ~~increasing~~ ~~responsibility~~Kenmar inIA ~~the Commodities Division at Shearson Lehman Hutton Inc~~Corp., ~~Her~~an ~~experience~~investment ~~includes~~management ~~that of Sales Assistant~~firm, ~~Assistant Commodity Trader and Trader executing orders~~ from ~~numerous~~August 11, ~~CTAs~~2003 ~~that~~until ~~traded through Shearson. Ms.~~January ~~Cohn~~12, ~~graduated from the University of Wisconsin Madison with a B~~2007.S. ~~in Agriculture in 1982.~~

25Ms. Howley received a B.A. in Accounting from Muhlenberg College in 1989 and designation as a Certified Public Accountant in 1990.

Mr. David K. Spohr (born 1963) has been Senior Vice President and Director of Fund Administration of the Managing Owner since November 2006 and has been a principal of the Managing Owner since May 7, 2007. He was Vice President and Director of Fund Administration of the Managing Owner from October 2005 to October 2006. Mr. Spohr has been Senior Vice President and Director of Fund Administration of KGIM LLC, an investment management firm, since November 2006, Vice President and Director of Fund Administration since October 2006 and has been a principal of KGIM LLC since May 7, 2007. Mr. Spohr has been Senior Vice President and Director of Fund Administration of ClariTy, an investment management firm, since November 2006, Vice President and Director of Fund administration since its inception in May 2009 and has been a principal of ClariTy since June 9, 2009. He is responsible for the development and execution of the administration group support responsibilities and, as Director of Fund Administration, functions as the Principal Financial and Accounting Officer of the Trust.

~~Mr. Gordon~~From ~~Nicholson~~June ~~(born~~2002 ~~1965),~~to ~~Vice~~March ~~President~~2005, ~~and~~Mr. Spohr ~~Senior~~was ~~Research~~a ~~Analyst,~~Vice ~~graduated~~President ~~from~~at ~~John Abbott~~Safra ~~College~~Group, ~~in 1985 with~~ a ~~Diploma~~firm ofengaged ~~Collegiate~~in ~~Studies~~banking, -brokerage ~~Pure~~ and ~~Applied~~asset ~~Sciences;~~management ~~from~~activities, ~~Bishop’s~~where ~~University~~he inwas ~~1988~~responsible ~~with~~for athe ~~B.A.~~Alternative inInvestment ~~Political~~operations, ~~Science~~tax ~~and~~reporting ~~Economics~~ and ~~from~~pricing ~~Vermont Law School in 1993 with a J~~valuation.D. Mr. ~~Nicholson~~Spohr isreceived ~~also~~ a ~~Certified~~ ~~Financial Advisor and Chartered Alternative Investment Analyst~~B. MrS. ~~Nicholson~~ ~~joined the Kenmar Group~~ in ~~June~~Business ~~2005~~Economics ~~and~~from ~~currently~~The ~~serves as Vice President, Director and Senior Research Analyst for the Managing Owner. Mr. Nicholson~~State isUniversity ~~a Member~~ of ~~Registrant’s~~New ~~Investment~~York ~~Committee.~~College ~~Previously, he was the Manager – Credit and Pricing,~~ at ~~Bombardier,~~Oneonta ~~Inc.,~~in a1985 ~~manufacturer of planes~~ and ~~trains,~~designation ~~where~~as ~~he held positions of increasing responsibility from April 2003 to June 2005. Prior to that, from July 2002 to April 2003, he was~~ a ~~Senior~~Chartered ~~Credit~~Financial Analyst atin ~~Bombardier Capital, Inc~~1998., ~~an asset management firm.~~

Ms. ~~Jennifer~~Joanne SD. ~~Moros~~Rosenthal (born ~~1970~~1965) has been a Senior Vice President, ~~Marketing~~ and ~~Investor~~Director ~~Relations~~of Research of the Managing Owner since ~~joining~~July ~~the~~2009 ~~Managing~~and ~~Owner~~Senior inVice ~~January~~President ~~2007.~~and ~~From~~Director ~~October~~of ~~2006~~Portfolio ~~until~~Management ~~December~~and ~~2006,~~Implementation ~~she worked~~since atOctober ~~The~~1999. ~~Bank~~Ms. Rosenthal ofhas ~~New~~been ~~York.~~a ~~Previously~~principal, ~~she~~associated ~~was~~person ~~the~~and ~~Chief~~NFA ~~Operating~~associate ~~Officer~~member ~~and Director~~ of ~~Marketing~~the ofManaging ~~Coronat~~Owner ~~Capital~~since ~~Management~~February 29, ~~LLC~~ 2000, ~~a small start-up hedge fund~~ February 29, 2000 ~~from~~and November 30, ~~2004~~1999, ~~until September 2005~~respectively. ~~Previously,~~She ~~she~~has ~~was~~been Senior Vice President and ~~Product~~ ~~Manager~~Director atof ~~Credit~~Research ~~Suisse~~of inthe ~~their~~Managing ~~Alternative~~Owner ~~Capital~~since July 2009, ~~Division~~Senior ~~from~~Vice ~~February~~President ~~2000~~and ~~until~~Director ~~November~~of ~~2004,~~Portfolio ~~responsible~~Management ~~for~~and ~~marketing,~~Implementation ~~new~~of ~~product~~KGIM ~~development~~LLC, ~~and~~an ~~reporting~~investment ~~for~~management ~~their~~firm, ~~fund~~since ofits ~~hedge~~inception ~~funds~~in ~~business.~~October ~~From~~2005 and ~~June~~has ~~1998~~been toa ~~January~~principal ~~2000, she~~of ~~was~~KGIM aLLC ~~Senior~~since ~~Associate~~December 12, 2005 inand ~~the~~associated ~~Marketing~~person and ~~Business~~NFA ~~Development~~associate ~~areas~~member atsince ~~Zweig-DiMenna~~October 10, a2006. ~~large~~Ms ~~long/short~~Rosenthal ~~equity~~has ~~hedge~~been ~~fund.~~Senior ~~Prior~~Vice toPresident ~~this,~~and ~~she~~Director ~~was~~of ~~employed~~Research atof ~~Symphony Alternative Investments~~ClariTy, an ~~alternatives~~investment management ~~pension consulting~~ firm, ~~from July~~since ~~1997 to June 1998~~July 15, ~~where~~2009 ~~she was responsible for quantitative~~ and ~~qualitative~~has ~~assessments~~been ~~and~~a ~~recommendations~~principal of ~~alternative~~ClariTy ~~investments~~since ~~including hedge funds~~July 15, ~~private~~2009. ~~equity~~She ~~and~~has ~~venture~~been ~~capital~~a ~~for~~registered ~~large~~representative ~~institutional~~of ~~clients. From November 1993 until July 1995~~KSEC, ~~Ms. Moros was~~ a ~~Financial~~broker-dealer, ~~Analyst~~since atOctober ~~Bankers~~1999 ~~Trust~~ and ahas ~~Business~~been ~~Applications~~a ~~Analyst~~principal, atassociated ~~National~~person ~~Westminster~~and ~~Bancorp~~NFA associate ~~from~~member ~~August~~of ~~1992~~KSEC ~~until~~since ~~November~~August 28, ~~1993~~2006. Ms. ~~Moros~~Rosenthal ~~received~~is ~~an M.B.A in Finance from The Sloan School at the Massachusetts Institute of Technology in 1997 and~~ a ~~B.S.~~member ~~in Economics from The Wharton School~~ of the ~~University~~Managing ofOwner’s ~~Pennsylvania in 1992~~Investment Committee.

MrMs. ~~Frank~~Rosenthal ~~Coloccia~~was ~~(born~~a ~~1965),~~principal ~~Senior~~of ~~Vice~~Kenmar ~~President~~GIM ~~and~~Inc., ~~Chief~~an ~~Technology~~investment ~~Officer~~management firm, ~~graduated~~ from ~~Manhattan College in 1987 and 1993 with a BS in Computer Information Systems and MBA in Management Information Systems~~February 29, ~~respectively.~~ ~~Since~~2000 ~~December~~until February 24, 2007, ~~Mr. Coloccia~~an ~~has~~associated ~~been~~person ~~Senior Vice President~~ and ~~Chief~~NFA ~~Technology~~associate ~~Officer~~member ~~for all~~ of ~~the~~ Kenmar ~~Group of companies, including Preferred. Prior to joining Kenmar, Mr. Coloccia was a Managing Partner of JFA~~ ~~Group~~GIM ~~LLC, a consulting firm owned by Mr~~Inc. ~~Coloccia,~~ from ~~September 2007 until December 2007~~October 10, ~~as well as from September~~ 2006 until ~~January 2007. From January 2007 until September 2007~~February 24, ~~Mr.~~ ~~Coloccia was the Chief Research Officer at The Info Pro~~2007, ana ~~independent~~principal ~~market~~of ~~research~~Kenmar ~~company~~Global ~~for~~Strategies ~~the Information Technology industry. Prior to that time, he was Senior Vice President of Xandros~~ Inc., aan ~~provider~~investment ofmanagement ~~Linux-based server~~firm, ~~desktop~~from ~~and Windows-Linux cross-platform systems management tools~~February 29, ~~from~~2000 ~~April 2006~~ until ~~September~~ April 7, 2006~~. From November 1999 through February 2006~~, ~~Mr. Coloccia was the President~~ and ~~Chief~~a ~~Technology~~principal ~~Officer~~ of ~~Creative~~Kenmar ~~Technologies~~IA ~~Group Inc~~Corp., aan investment ~~consulting~~management ~~company~~firm, ~~that~~from ~~specialized~~February 29, in2000 ~~networking~~until ~~and application~~January 12, ~~support for the small-medium enterprises market~~2007.

Ms. Rosenthal received a Masters of Business Administration with a concentration in Finance from Cornell University and a Bachelor of Arts in Economics from Concordia University in Montreal, Canada.

Mr. Peter J. Fell (born 1960) has been a principal of the Managing Owner since February 6, 2007. He has been Senior Vice President, Director of Due Diligence since joining the Managing Owner in September 2004. Mr. Fell has been Senior Vice President and Director of Due Diligence of KGIM LLC, an investment management firm, since its inception in October 2005 and has been a principal of KGIM LLC since February 6, 2007. Mr. Fell has been Senior Vice President and Director of Due Diligence of ClariTy, an investment management firm, since its inception in May 2009 and has been a principal of ClariTy since June 9, 2009. He is responsible for manager selection and due diligence. Mr. Fell was a principal of Kenmar GIM Inc., an investment management firm, from February 6, 2007 until February 24, 2007. Mr. Fell is a member of the Managing Owner’s Investment Committee.

From November 2000 through August 2004, Mr. Fell was a founding partner and Investment Director of Starview Capital Management LLC and was an associated person and NFA associate member of Starview Capital Management LLC from May 21, 2004 until July 26, 2004, an associated person and NFA associate member of Starview Partners Ltd. from April 13, 2004 until July 26, 2004 and an associated person and NFA associate member of Lyra Capital LLC from May 10, 2004 until July 26, 2004. Mr. Fell holds an A.B. cum laude in Music Theory and History and an M.B.A. in Finance from Columbia University.

Mr. James E. Purnell (born 1961) joined the Managing Owner in January 2010 and is currently Senior Vice President and Chief Risk Officer. Mr. Purnell’s registration as a principal of the Managing Owner, KGIM LLC and ClariTy is currently pending. He also serves as Senior Vice President and Chief Risk Officer of KGIM LLC and ClariTy. Mr. Purnell is a Member of Registrant’s Investment Committee. In addition, Mr. Purnell is an adjunct professor in finance at Pace University. Prior to joining the Managing Owner, from November to December 2009, Mr. Purnell was unemployed. Previously from June 2008 to October 2009, he was the Head of Risk Management at Tremont Capital Management, an investment management firm that was part of the Mass Mutual Group. From April 2001 until June 2008, Mr. Purnell was a Director at Dresdner Kleinwort Wasserstein Securities LLC which was the broker dealer for Dresdner Bank, one of Europe’s largest banks, where he risk-managed and structured the US hedge fund linked structured products portfolio. He graduated with a B.A. and M.A. in History from Harvard in 1982 and 1983, respectively, and an M.A. in Economics and an M.B.A. in Finance from New York University in 1988.

Ms. Melissa Cohn (born 1960) has been a NFA associate member and an associated person of the Managing Owner since October 20, 1988 and November 9, 1988, respectively. Ms. Cohn has been Senior Vice President of Research of the Managing Owner since January 2010 and Vice President, Managing Director and Senior Research Analyst since she joined the Managing Owner in July 1988. Ms. Cohn has been a Managing Director and Senior Research Analyst of KGIM LLC, an investment management firm, since its inception in October 2005. Ms. Cohn is a

member of the Managing Owner’s Investment Committee. Her responsibilities include manager due diligence, manager analysis, and portfolio/risk management. Ms. Cohn graduated from the University of Wisconsin Madison with a B.S. in Agriculture in 1982.

Mr. Gordon Nicholson (born 1965) joined the Managing Owner in June 2005 and currently serves as Vice President, Director and Senior Research Analyst for the Managing Owner and KGIM LLC, an investment management firm. He is responsible for due diligence efforts on fixed income, credit, and arbitrage managers. Mr. Nicholson is also a member of the Managing Owner’s Investment Committee. Prior to joining the Managing Owner, he was the Manager – Credit and Pricing, at Bombardier, Inc., a manufacturer of planes and trains, where he held positions of increasing responsibility from April 2003 to June 2005. Mr. Nicholson graduated from John Abbott College in 1985 with a Diploma of Collegiate Studies - Pure and Applied Sciences; from Bishop’s University in 1988 with a B.A. in Political Science and Economics and from Vermont Law School in 1993 with a J.D. Mr. Nicholson is also a Certified Financial Advisor and Chartered Alternative Investment Analyst.

Ms. Jennifer S. Moros (born 1970) has been a principal of the Managing Owner since January 24, 2007. She has been Senior Vice President and Director of Marketing and Investor Services since she joined the Managing Owner in January 2007. Ms. Moros has been Senior Vice President and Director of Marketing and Investor Services of KGIM LLC, an investment management firm, since January 2007 and has been a principal of KGIM LLC since January 24, 2007. Ms. Moros has been a registered representative with KSEC, a broker-dealer, since January 2007 and has been a principal of KSEC since January 24, 2007. She was a principal of Kenmar GIM Inc., an investment management firm, from January 24, 2007 until February 24, 2007.

From October 2006 until December 2006, she was a Vice President at The Bank of New York responsible for sales in the alternative investment administration department. From September 2005 to September 2006, Ms. Moros was unemployed. Previously, she was the Chief Operating Officer and Director of Marketing of Coronat Capital Management, LLC, an investment management firm, from November 2004 until September 2005. Ms. Moros worked at Credit Suisse, an investment banking firm, from February 2000 through November 2004, and was an associated person at Credit Suisse Securities USA LLC from July 28, 2004 until November 1, 2004, an associated person at Credit Suisse Asset Management LLC from June 18, 2003 until June 8, 2004, and an associated person at Credit Suisse Alternative Capital Inc. from June 7, 2004 until March 16, 2007. Ms. Moros received an M.B.A in Finance from The Sloan School at the Massachusetts Institute of Technology in 1997 and a B.S. in Economics from The Wharton School of the University of Pennsylvania in 1992.

Mr. Frank Coloccia (born 1965), Senior Vice President and Chief Technology Officer, joined Kenmar Group in December 2007 and has been the Senior Vice President and Chief Technology Officer for the Managing Owner and KGIM LLC, an investment management firm, since December 2007 and ClariTy, an investment management firm, since its inception in May 2009. Prior to joining Kenmar, he was a Managing Partner of JFA Group LLC, a consulting firm owned by Mr. Coloccia, from September 2007 until December 2007, as well as from September 2006 until January 2007. From January 2007 until September 2007, Mr. Coloccia was the Chief Research Officer at The Info Pro, an independent market research company for the Information Technology industry. Prior to that time, he was Senior Vice President of Xandros Inc., a provider of Linux-based server, desktop and Windows-Linux cross-platform systems management tools, from April 2006 until September 2006. From November 1999 through February 2006, he was the President and Chief Technology Officer of Creative Technologies Group Inc., a consulting company that specialized in networking and application support for the small-medium enterprises market. Mr. Coloccia graduated from Manhattan College in 1987 and 1993 with a BS in Computer Information Systems and MBA in Management Information Systems, respectively.

Section 16(a) Beneficial Ownership Reporting Compliance

Certain of the Managing Owner’s directors and officers and any persons holding more than ten percent of ~~the~~ Registrant’s Limited Interests (“Ten Percent Owners”) are required to report their initial ownership of Interests and any subsequent changes in that ownership to the Securities and Exchange Commission (the “SEC”) on Forms 3, 4 or 5. Such directors and officers and Ten Percent Owners are required by SEC regulations to furnish ~~the~~ Registrant with copies of all Forms 3, 4 and 5 they file. There are no Ten Percent Owners of ~~the~~ Registrant’s Limited Interests. All filing requirements of Section 16(a) of the ~~Exchange~~ Exchange Act were timely complied with during the fiscal year. In making these disclosures, ~~the~~ Registrant has relied solely on written representations of the Managing Owner’s directors and officers and ~~the~~ Registrant’s Ten Percent Owners or copies of the reports that they have filed with the SEC during and with respect to its most recent fiscal year.

Code of Ethics

~~Preferred~~The Managing Owner has adopted a Code of Ethics for its Co-Chief Executive Officers and Director of Fund Administration (who, in these capacities, function as the Co-Chief Executive Officers and Principal Financial/Accounting ~~Officer, respectively, of Registrant), accounting managers and persons performing similar functions. A copy of the Code of Ethics is attached as an exhibit hereto.~~

Officer, respectively, of Registrant), accounting managers and persons performing similar functions. A copy of the Code of Ethics is attached as an exhibit hereto.

Audit Committee Financial Expert

~~The~~ Registrant itself does not have any employees. Kenmar Preferred Investments Corp. serves as Managing Owner of ~~the~~ Registrant. The Board of Directors of ~~Preferred~~the Managing Owner has delegated audit committee responsibilities to the Internal Controls and Disclosure Committee. David K. Spohr is ~~Preferred~~the Managing Owner’s Director of Fund Administration (and, in that capacity, functions as Registrant’s Principal Financial/Accounting Officer), is a member of the Internal Controls and Disclosure Committee, and serves as the “audit committee financial expert” for Registrant. Mr. Spohr is not a member of ~~Preferred~~the Managing Owner’s Board of Directors and he is not independent of management.

Item 11.

Executive Compensation

~~The~~ Registrant does not ~~pay~~itself orhave ~~accrue~~ any ~~fees~~ officers, ~~salaries~~directors or ~~any~~employees. ~~other~~Registrant ~~form~~pays ofbrokerage ~~compensation~~commissions ~~for~~to ~~officers of~~ the Managing Owner ~~for their services~~. ~~(See~~The ~~also~~managing ~~Item 13,~~officers ~~Certain~~of ~~Relationships~~the ~~and~~Managing ~~Related~~Owner ~~Transactions,~~are ~~for~~remunerated ~~information~~by ~~regarding~~the Managing ~~compensation~~Owner toin ~~the~~their ~~Managing~~respective ~~Owner~~positions.).

26The managing officers receive no “other compensation” from Registrant. There are no compensation plans or arrangements relating to a change in control of either Registrant or the Managing Owner.

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

As of ~~January~~February 3128, ~~2009~~2010, the following ~~officers~~Unitholder ofowned ~~the~~beneficially ~~Managing~~more ~~Owner~~than ~~are~~five ~~deemed~~percent to(5%) of ~~own beneficially~~ the outstanding ~~following~~Limited ~~number of General~~ Interests issued by ~~the~~ Registrant:

Name and Addresses of Beneficial Owner	Number and Nature ofUnits Owned Directly	Percentage of Class		Number and Nature ofUnits Owned Indirectly	Percentageof Class
Investor	Units	% Ownership
Marc S. Goodman 900 King Street Suite 100 Rye Brook, New York 10573	52.832 Other Unitholder Units	Less than 1%		413.830 Managing Owner Units (*)	100	%
Dugan L Moore Revocable Living Trust	1,997.2157	5.46	%
Kenneth A. Shewer 900 King Street Suite 100 Rye Brook, New York 10573	50.252 Other Unitholder Units	Less than 1%		413.830 Managing Owner Units (*)	100	%
Esther E. Goodman 900 King Street Suite 100 Rye Brook, New York 10573	0 Other Unitholder Units	Less than 1%		413.830 Managing Owner Units () and 52.832 Units ()	100	%

(*) These Units are held indirectly through Preferred. The Beneficial Owner disclaims beneficial ownership over such securities for purposes of Section 16 of the Securities Exchange Act of 1934, except to the extent of his pecuniary interest therein.

(**) These Units are held directly or indirectly by the Beneficial Owner’s spouse. The Beneficial Owner disclaims beneficial ownership over such securities for purposes of Section 16 of the Securities Exchange Act of 1934, except to the extent of her pecuniary interest therein.

As of January 31, 2009, Preferred owns 1% General Units in the Registrant. As of January 31, 2009, all of Preferred’s stock is owned indirectly and equally by Messrs. Goodman and Shewer, Preferred’s sole directors.

As of January 31, 2009, the following unitholders owned beneficially more than five percent (5%) of the outstanding Limited Units issued by Registrant:

Investor	Units	% Ownership
Foerster Living Trust	1,997.2157	5.09	%
Dugan L Moore Revocable Living Trust	1,997.2157	5.09	%

Item 13.

Certain Relationships and Related Transactions and Director Independence

~~The~~ Registrant has and will continue to have certain relationships with the Managing Owner and its affiliates. ~~However, there have been no direct financial transactions between the Registrant and the officers of the Managing Owner.~~

~~Reference~~Kenmar isPreferred ~~made~~Investments toCorp. ~~Notes~~serves 2as ~~and~~Registrant’s 4managing toowner. ~~the~~Registrant ~~financial~~will ~~statements~~pay in to the ~~Registrant’s~~Managing ~~2008~~Owner ~~Annual~~in ~~Report~~advance ~~which~~monthly isbrokerage ~~filed~~commissions asequal anto ~~exhibit~~1/12th ~~hereto,~~of ~~which identify~~10% ~~the~~(10% ~~related~~per ~~parties~~annum) ~~and~~of ~~discuss~~ the ~~services~~Net ~~provided~~Asset byValue ~~these~~of ~~parties~~Registrant ~~and~~as of the ~~amounts~~beginning ~~paid~~of oreach ~~payable, if any, for their services~~month.

Registrant reimburses the Managing Owner on a quarterly basis for certain legal, accounting, administrative and registrar and transfer agent work performed by certain of the Managing Owner’s personnel for and on behalf of Registrant. The amount reimbursed is based on (i) the number of hours devoted by the Managing Owner’s personnel for and on behalf of Registrant and (ii) a commercially reasonable rate for such personnel. For the years ended December 31, 2009, 2008 and 2007, Registrant reimbursed the Managing Owner $51,707, $36,219 and $30,220, respectively, for services provided by the Managing Owner’s personnel on behalf of Registrant.

Director Independence

David K. Spohr is Preferred’s Director of Fund Administration (and, in that capacity, functions as Registrant’s Principal Financial/Accounting Officer), is a member of the Internal Controls and Disclosure Committee, and serves as the “audit committee financial expert” for Registrant. Mr. Spohr is not a member of Preferred’s Board of Directors and he is not independent of management.

Item 14.

Principal Accounting Fees and Services

Audit Fees and All Other Fees

Registrant’s principal accountant since October 15, 2007 has been Eisner LLP (“Eisner”). Registrant’s principal accountant for the ~~year ended December 31, 2006 and for the~~ period January 1, 2007 through September 14, 2007 was Deloitte & Touche LLP (“D&T”). We have been advised by Eisner that neither the firm, nor any member of the firm, has any financial interest, direct or indirect, in any capacity in Registrant or its affiliates.

2733

(a) Audit Fees

Fees for audit services performed by Eisner totaled approximately $82,000, $46,000 and $33,000 for 2009, 2008 and 2007, respectively, including fees associated with the ~~review~~annual audit and reviews of Registrant’s quarterly reports on Form 10-Q. Fees for audit services performed by D&T totaled approximately $26,000 ~~and $58,000~~ for 2007 ~~and 2006~~, ~~respectively,~~ including fees associated with the annual audit and the reviews of Registrant’s quarterly reports on Form 10-Q.

(b) Audit-Related Fees

The audit-related fees billed to Registrant by Eisner for 2009 totaled approximately $3,000. The audit-related fees billed to Registrant by Eisner for 2008 totaled $0. The audit-related fees billed to Registrant by Eisner for the period of October 15, 2007 through December 31, 2007 totaled $0. The audit-related fees billed to Registrant by D&T for the ~~year ended December 31, 2006 and for the~~ period January 1, 2007 through September 14, 2007 for products and services other than the services reported above totaled $0.

(c) Tax Fees

There were no fees for tax services performed by, or billed to the Registrant by Eisner for 2009, 2008 and 2007 or by D&T for 2007 ~~and 2006~~.

(d) All Other Fees.

The other fees billed to Registrant by D&T for the ~~year ended December 31, 2006 and for the~~ period January 1, 2007 through September 14, 2007 for products and services other than the services reported above totaled $0. The other fees billed to Registrant by Eisner for the period of October 15, 2007 through December 31, 2007 totaled $0. The other fees billed to Registrant by Eisner for 2009 and 2008 totaled $0.

PART IV

Item 15.

Exhibits, Financial Statements and Schedules

(a) The following documents are filed as part of this Form 10-K:


(a)	The following documents are filed as part of this Form 10-K:

1.	Report of Independent Registered Public Accounting Firm – Eisner LLP		2

	Financial Statements

		Statements of Financial Condition – December 31, 2009 and 2008	3

		Condensed Schedules of Investments – December 31, 2009 and 2008	4

		Statements of Operations – Years ended December 31, 2009, 2008 and 2007	5

		Statements of Changes in Unitholders’ Capital – Years ended December 31, 2009, 2008 and 2007	6

		Notes to Financial Statements	7 – 19

2.		Exhibits.

1.	Report of Independent Registered Public Accounting Firm - Eisner LLP	1
Exhibit Number	Description of Document
	Report of Independent Registered Public Accounting Firm - Deloitte & Touche LLP	2
3.1	Certificate of Formation of the Registrant. (Incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).
	Financial Statements
3.2	Declaration of Trust and Trust Agreement of the Registrant. (Incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).
	Statements of Financial Condition	3
3.3	Fifth Amended and Restated Declaration of Trust and Trust Agreement of the Registrant dated as of December 1, 2008 (incorporated by reference to Exhibit 3.3 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008)
	Condensed Schedules of Investments	4
	Statements of Operations	5
	Statements of Changes in Unitholders’ Capital (Net Asset Value)	6
	Notes to Financial Statements	7 - 19
2.	Exhibits.

Exhibit Number		Description of Document
3.1		Certificate of Formation of the Registrant. (Incorporated by reference to the Trust’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 Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).
3.3		Fifth Amended and Restated Declaration of Trust and Trust Agreement of the Registrant dated as of December 1, 2008 (filed herewith)
4.5		Form of the Privacy Notices of the Managing Owner dated January 2009 (filed herewith)
10.1		Form of Advisory Agreement. (Incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).

4.5		Form of the Privacy Notices of the Managing Owner dated July 2009 (filed herewith)
10.1		Form of Advisory Agreement. (Incorporated by reference to the Trust’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 Trust’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 Trust’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 Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).
10.5		Advisory Agreement among the Managing Owner, WCM Pool LLC and Winton Capital Management Limited dated November 20, 2006 (incorporated by reference to Exhibit 10.5 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)
10.6		WCM Pool LLC Organization Agreement dated November 20, 2006 (incorporated by reference to Exhibit 10.6 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)
10.7		Administrative Service Agreement between WCM Pool LLC and Preferred Investment Solutions Corp. dated November 20, 2006 (incorporated by reference to Exhibit 10.7 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)
10.8		Amendment No. 1 to WCM Pool LLC Organization Agreement dated March 30, 2007 (incorporated by reference to Exhibit 10.8 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)
10.9		Services Agreement between Spectrum Global Fund Administration, L.L.C. and Registrant dated May 23, 2007 (incorporated by reference to Exhibit 10.9 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)
10.10		Amendment No. 1 to Services Agreement between Spectrum Global Fund Administration, L.L.C. and Registrant dated January 1, 2009 (filed herewith)
13.1		Registrant’s 2009 Annual Report (with the exception of the information and data incorporated by reference in Item 8 of this Annual Report on Form 10-K, no other information or data appearing in the Registrant’s 2009 Annual Report is to be deemed filed as part of this report) (filed herewith)
13.1		Registrant’s 2008 Annual Report (with the exception of the information and data incorporated by reference in Item 8 of this Annual Report on Form 10-K, no other information or data appearing in the Registrant’s 2008 Annual Report is to be deemed filed as part of this report) (filed herewith)
14.1		Kenmar Preferred Investments Corp. Code Of Ethics (adopted pursuant to Section 406 of Sarbanes Oxley Act of 2002) as of November 9, 2009 (filed herewith)
14.1		Preferred Investment Solutions Corp. Code Of Ethics (adopted pursuant to Section 406 of Sarbanes Oxley Act of 2002) as of October 13, 2008
31.1		Certification pursuant to Exchange Act Rules 13a-14 and 15d-14 (filed herewith)
31.2		Certification pursuant to Exchange Act Rules 13a-14 and 15d-14 (filed herewith)
32.1		Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
32.2		Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

(b) Report on Form 8-K - Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year; Financial Statements and Exhibits, dated December 1, 2008 (incorporated by reference)

[Remainder of page intentionally left blank]

2935

KENMAR GLOBAL TRUST

ANNUAL REPORT

December 31, ~~2008~~2009

3036

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Managing Owner and Limited Owners of

Kenmar Global Trust

We have audited the accompanying statements of financial condition, including the condensed schedules of investments, of Kenmar Global Trust (the “Trust”) as of December 31, ~~2008~~2009 and ~~2007~~2008, and the related statements of operations and changes in unitholders’ capital and the financial highlights for each of the three years in the period ended December 31, ~~2008 and 2007~~2009. These financial statements and the financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and the financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, anaudits ~~audit~~ of the Trust’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. 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 and financial highlights referred to above present fairly, in all material respects, the financial position of Kenmar Global Trust at December 31, ~~2008~~2009 and ~~2007~~2008, and the results of its operations and changes in unitholders’ capital (net asset value) and the financial highlights for each of the three years in the period ended December 31, ~~2008 and 2007~~2009, in conformity with accounting principles generally accepted in the United States of America.

Eisner LLP

New York, New York

March 2523, ~~2009~~2010

-1-

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Managing Owner and Limited Owners of

Kenmar Global Trust

We have audited the statements of operations and changes in unitholders’ capital for the year ended December 31, 2006 of Kenmar Global Trust (the “Trust”). These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the results of operations and changes in unitholders’ capital of the Trust for the year ended December 31, 2006, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

New York, New York

March 28, 2007

-2-

KENMAR GLOBAL TRUST

STATEMENTS OF FINANCIAL CONDITION

December 31, ~~2008~~2009 and ~~2007~~2008

	2008		2007
	2009		2008
ASSETS
Equity in broker trading accounts;
Equity in broker trading accounts:
Cash	$	3,815,436	$	1,490,394
Cash (See Note 1)	$	1,548,812	$	3,815,436
Unrealized gain on open futures contracts, net		~~215~~72,~~655~~225		~~229~~215,~~997~~655
Total equity in broker trading accounts		41,~~031~~621,~~091~~037		14,~~720~~031,~~391~~091
Cash and cash equivalents		12,~~189~~454,~~383~~265		~~640~~1,~~984~~189,383
Investment in WCM Pool LLC, at fair value,(10.43% and 32.32% of net asset value, respectively)		638,493		1,732,978
Interest receivable, net		1,226		108
Unrealized gain on open forward currency contracts, net		0		4,720
Investment in KMP Futures Fund I LLC, at fair value
Note receivable, Managing Owner		585,193		1,685,193
(0.00% and 10.43% of net asset value, respectively)		0		638,493
Interest receivable		108		16,649
Note receivable, Managing Owner		585,193		585,193
Redemptions receivable from WCM Pool LLC		80,314		0
Unrealized gain on open forward currency contracts, net		6,328		0
Total assets	$	6,524,582	$	5,800,915
Redemptions receivable from KMP Futures Fund I LLC		0		80,314
Total assets	$	4,668,049	$	6,524,582
LIABILITIES
Unrealized loss on open forward currency contracts, net	$	~~747~~0	$	0747
Accounts payable and other		3698,~~688~~659		1936,~~021~~688
Managing Owner brokerage commissions andother transaction fees payable		4737,~~838~~210		8247,~~241~~838
Managing Owner incentive fees payable		~~39,348~~0		039,348
Advisor profit shares		~~197,424~~0		97197,~~970~~424
Redemptions payable		8091,~~582~~171		~~239~~80,~~221~~582
Total liabilities		~~402~~227,~~627~~040		~~438~~402,~~453~~627
UNITHOLDERS’ CAPITAL (Net Asset Value)
Managing Owner - 413.8301 and 553.8301 unitsoutstanding at December 31, 2008 and 2007, respectively		64,598		66,917
Managing Owner – 0.0000 and 413.8301 Units outstandingat December 31, 2009 and 2008, respectively		0		64,598
Other Unitholders - 38,805.1498 and 43,828.1911 unitsoutstanding at December 31, 2008 and 2007, respectively		6,057,357		5,295,545
Other Unitholders – 36,868.1703 and 38,805.1498 Unitsoutstanding at December 31, 2009 and 2008, respectively		4,441,009		6,057,357
Total unitholders’ capital (Net Asset Value)		6,121,955		5,362,462
Total unitholders’ capital(Net Asset Value)		4,441,009		6,121,955
Total liabilities and unitholders’ capital	$	64,~~524~~668,~~582~~049	$	56,~~800~~524,~~915~~582

Net Asset Value per Other Unitholders and Managing Owner Unit

December 31,
2008		2007			2006
2009			2008			2007
$156.10		$	120.83		$	103.43
$	120.46		$	156.10		$	120.83

See accompanying notes.

-3-

3338

KENMAR GLOBAL TRUST

CONDENSED SCHEDULES OF INVESTMENTS

December 31, ~~2008~~2009 and ~~2007~~2008

	2008					2007
	2009					2008
	NetUnrealizedGain (Loss)Netas a % ofUnrealizedNet Asset Value		NetUnrealizedGain (Loss)			NetUnrealizedGain (Loss)as a % ofNet Asset Value		Gain (Loss)
	NetUnrealizedGain (Loss)as a % ofUnitholders’ Capital		Net Unrealized Gain (Loss)			NetUnrealizedGain (Loss)as a % ofUnitholders’ Capital		Net Unrealized Gain (Loss)
OPEN FUTURES CONTRACTS
OPEN LONG FUTURES CONTRACTS
Description
Commodities	0.0738	%	$	416,~~203~~964		10.7407	%	$	934,~~117~~203
Currency	(0.5038	)%		30(16,~~403~~696	)	(0.5350	)%		~~(28~~30,~~628~~403	)
Energy	(0.0007	)%		0(3,297	)	10.5100	%		~~81,393~~0
Interest rates	1(0.9786	)%		~~120~~(38,~~632~~042	)	01.5397	%		28120,~~633~~632
Metals	(01.4857	)%		~~(29~~69,~~181~~632	)	(20.0748	)%		(~~110~~29,~~883~~181	)
Stock index	0.0084	%		037,382		0.1200	%		~~6,264~~0
Unrealized gain on open long futures contracts	2.06	%	$	126,057		1.30	%	$	69,896
Unrealized gain on openlong futures contracts	1.48	%	$	65,943		2.06	%	$	126,057
OPEN SHORT FUTURES CONTRACTS
Description
Commodities	(0.1009	)%	$	5(3,~~878~~894	)	0.0310	%	$	15,~~438~~878
Currency	(0.0687	)%		(338,~~848~~763	)	(0.4406	)%		(233,~~570~~848	)
Energy	(0.0200	)%		~~(1,110~~0	)	(0.1102	)%		6(1,~~090~~110	)
Interest rates	(0.4727	)%		~~(28~~12,~~628~~135	)	(0.5947	)%		31(28,~~859~~628	)
Metals	(1.9702	)%		~~120~~(45,~~963~~602	)	21.7497	%		~~146~~120,~~307~~963
Stock index	(0.0610	)%		(34,~~657~~350	)	(0.0406	)%		(23,~~023~~657	)
Unrealized gain on open short futures contracts	1.46	%	$	89,598		2.99	%	$	160,101
Other	0.01	%		530		0.00	%		0
Unrealized gain on open futures contracts, net	3.52	%	$	215,655		4.29	%	$	229,997
Unrealized gain on openshort futures contracts	0.14	%	$	6,282		1.46	%	$	89,598
Unrealized gain on openfutures contracts, net	1.62	%	$	72,225		3.52	%	$	215,655
OPEN FORWARD CURRENCY CONTRACTS
Description
Long forward currency contracts	(0.0016	)%	$	0(7,146	)	(0.0700	)%	$	~~(3,915~~0	)
Short forward currency contracts	(0.0130	)%		~~(747~~13,474	)	(0.1601	)%		~~8,635~~(747	)
Unrealized gain (loss) on open forward currency contracts, net	(0.01	)%	$	(747	)	0.09	%	$	4,720
Unrealized gain (loss) on open forwardcurrency contracts, net	0.14	%	$	6,328		(0.01	)%	$	(747	)

See accompanying notes.

-4-

3439

KENMAR GLOBAL TRUST

STATEMENTS OF OPERATIONS

For the Years Ended December 31, ~~2008~~2009, ~~2007~~2008 and ~~2006~~2007

	2008			2007			2006
	2009			2008			2007
NET INCOME FROM TRUST OPERATIONS
NET INCOME (LOSS) FROM TRUST OPERATIONSTRADING GAINS (LOSSES)
TRADING GAINS (LOSSES)
Realized	$	(477,753	)	$	2,305,368		$	1,435,267
Realized	$	2,305,368		$	1,435,267		$	573,502
Change in unrealized		(136,355	)		(19,809	)		(164,575	)
Change in unrealized		(19,809	)		(164,575	)		250,503
Brokerage commissions		(37,756	)		(27,375	)		(43,168	)
Brokerage commissions		(27,375	)		(43,168	)		(65,435	)
Net gain (loss) from trading		(651,864	)		2,258,184			1,227,524
Net gain from trading		2,258,184			1,227,524			758,570
NET INVESTMENT LOSS
Income
INCOME
Interest income		~~107~~19,~~398~~345			~~192~~107,~~282~~398			~~388~~192,~~169~~282
Expenses
EXPENSES
Managing Owner brokerage commissions		~~509~~499,~~815~~763			~~449~~509,~~909~~815			~~713~~449,~~251~~909
Managing Owner incentive fees		~~39,409~~0			039,409			0
Advisor profit shares		~~416,492~~0			~~223~~416,~~383~~492			~~103~~223,~~991~~383
Operating expenses		~~164~~201,~~650~~716			~~135~~164,~~644~~650			42135,~~860~~644
Total expenses		1701,~~130,366~~479			~~808~~1,~~936~~130,366			~~860~~808,~~102~~936
Net investment loss		(1682,~~022,968~~134	)		(~~616~~1,~~654~~022,968	)		(~~471~~616,~~933~~654	)
NET INCOME FROM TRUST OPERATIONS		1,235,216			610,870			286,637
NET INCOME (LOSS) FROM TRUST OPERATIONS		(1,333,998	)		1,235,216			610,870
NET INCOME ALLOCATED FROM WCM POOL LLC:
NET INCOME (LOSS) ALLOCATED FROM KMP FUTURESFUND I LLC:
REVENUES
Realized		~~313~~(15,~~729~~088	)		~~208~~313,~~212~~729			0208,212
Change in unrealized		(78,~~948~~259	)		59(7,~~180~~948	)		059,180
Interest income		~~17,246~~37			7617,~~299~~246			076,299
Total revenues		323,027			343,691			0
Total revenues (losses)		(23,310	)		323,027			343,691
EXPENSES
Brokerage commissions and other transaction fees		~~2,103~~279			72,~~803~~103			07,803
Management fees		264,~~273~~592			3926,~~147~~273			039,147
Advisor profit shares		~~60,623~~201			4360,~~943~~623			043,943
Operating expenses		91,~~349~~949			89,~~979~~349			08,979
Total expenses		987,~~348~~021			9998,~~872~~348			099,872
NET INCOME ALLOCATED FROMWCM POOL LLC		224,679			243,819			0
NET INCOME (LOSS) ALLOCATED FROMKMP FUTURES FUND I LLC		(30,331	)		224,679			243,819
NET INCOME	$	1,459,895		$	854,689		$	286,637
NET INCOME (LOSS)	$	(1,364,329	)	$	1,459,895		$	854,689
NET INCOME PER WEIGHTED AVERAGE
NET INCOME (LOSS) PER WEIGHTED AVERAGEUNITHOLDERS AND MANAGING OWNER UNIT
UNITHOLDERS AND MANAGING OWNER UNIT
Net income (loss) per weighted averageUnitholders and Managing Owner Unit	$	(35.70	)	$	34.81		$	16.98
Net income per weighted averageUnitholders and Managing Owner Unit	$	34.81		$	16.98		$	3.64
Weighted average number of Unitholders andManaging Owner Units outstanding		38,218			41,939			50,332
Weighted average number of Unitholdersand Managing Owner Units outstanding	$	41,939		$	50,332		$	78,664

See accompanying notes.

-5-

3540

KENMAR GLOBAL TRUST

STATEMENTS OF CHANGES IN UNITHOLDERS’ CAPITAL

For the Years Ended December 31, ~~2008~~2009, ~~2007~~2008 and ~~2006~~2007

			Unitholders’ Capital
	Total		Total Number ofUnits			ManagingOwner			OtherUnitholders
	Total Number ofUnits		Managing Owner			Other Unitholders			Total
Unitholders’ capital atDecember 31, 2005	114,336.1313		$	116,826		$	11,071,856		$	11,188,682
Unitholders’ capital atDecember 31, 2006	56,092.2509		$	72,800		$	5,729,070		$	5,801,870
Additions	50.6763			0			5,004			5,004
Redemptions	(58,294.5567	)		(47,205	)		(5,631,248	)		(5,678,453	)
Net income for the yearended December 31, 2006				3,179			283,458			286,637
Unitholders’ capital atDecember 31, 2006	56,092.2509			72,800			5,729,070			5,801,870
Redemptions	(11,710.2297	)		(13,810	)		(1,280,287	)		(1,294,097	)
Net income for the yearended December 31, 2007				7,927			846,762			854,689
Unitholders’ capital atDecember 31, 2007	44,382.0212			66,917			5,295,545			5,362,462
Redemptions	(5,163.0413	)		(18,660	)		(681,742	)		(700,402	)
Net income for the yearended December 31, 2008				16,341			1,443,554			1,459,895
Unitholders’ capital atDecember 31, 2008	39,218.9799		$	64,598		$	6,057,357		$	6,121,955
Redemptions	(2,350.8096	)		(60,418	)		(256,199	)		(316,617	)
Net loss for the yearended December 31, 2009				(4,180	)		(1,360,149	)		(1,364,329	)
Unitholders’ capital atDecember 31, 2009	36,868.1703		$	0		$	4,441,009		$	4,441,009

See accompanying notes.

-6-

3641

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS

December 31, ~~2008~~2009

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General Description of the Fund

Kenmar Global Trust (the “Fund”) is a Delaware business trust. The Fund will terminate on December 31, 2026 unless terminated sooner as provided in the Fifth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). The Fund is a multi-~~advisor, multi-~~strategy commodity pool which trades in United States (U.S.) and foreign futures, options, forward currency and related markets. ASince September 30, ~~portion~~2009, of the Fund’s assets ~~are~~have been managed solely by Transtrend B.V. (“Transtrend”) as a managed account via their Diversified Trend Program.

Effective January 1, 2007, the Fund contributed a portion of its net assets to KMP Futures Fund I LLC (formerly known as WCM Pool LLC) (the “Company”) and received a ~~Voting~~voting ~~Membership~~membership ~~Interest~~interest in the Company. The Company was formed to function as an aggregate trading vehicle. ~~At December 31, 2008, the sole members of the Company are the Fund, Futures Strategic Trust (“FST”)~~ and Diversified Futures Trust I (“DFT”). Preferred Investment Solutions Corp. (“Preferred” or the “Managing Owner”) is the Managing Owner of the Fund, FST, and DFT and has been delegated administrative authority over the operations of the Company. The Company engages in the speculative trading of futures, forward and ~~forwards~~ option contracts. ~~The~~Effective ~~financial~~September 30, ~~statements of the Company~~2009, ~~including~~ the ~~condensed~~Fund ~~schedule of~~fully ~~investments,~~redeemed ~~are~~its ~~included~~membership ininterest ~~Section~~from ~~II of these financial statements and should be read in conjunction with~~ the ~~Fund’s financial statements~~Company.

~~Prior~~Effective ~~to January~~May 15, ~~2007~~2009, ~~pursuant~~Preferred Investment Solutions Corp. changed its name to anKenmar ~~advisory~~Preferred ~~agreement~~Investments Corp. (“Preferred” or the “~~Graham~~Managing ~~Advisory Agreement~~Owner”). ~~among~~Preferred ~~the~~or ~~Fund, the~~ Managing Owner ~~and~~refers ~~Graham~~to ~~Capital~~either Preferred ~~Management,~~Investment LSolutions Corp.P. ~~(“Graham”)~~or Kenmar Preferred Investments Corp., depending on the ~~portion~~applicable ofperiod discussed. As the Fund’s ~~net~~Managing ~~assets~~Owner, ~~contributed~~Preferred toconducts and manages the ~~Company~~business ~~were~~of ~~managed~~the byFund. ~~Graham~~Preferred ~~pursuant~~also tohad ~~its~~been K4delegated administrative ~~Program~~authority atover ~~150%~~the ~~Leverage~~operations of the Company. The ~~Fund~~financial ~~terminated~~statements of the ~~Graham~~Company, ~~Advisory~~including ~~Agreement~~the ~~effective~~condensed ~~December 31~~schedules of investments, ~~2006~~are included in Section II of these financial statements and should be read in conjunction with the Fund’s financial statements.

BShould the Managing Owner make a determination that the Fund’s aggregate net assets in relation to its operating expenses make it unreasonable or imprudent to continue the business of the Fund, or, in exercise of its reasonable discretion, if the aggregate Net Asset Value of the fund as of the close of business on any business day declines below $250,000, the Managing Owner may dissolve the Fund. ~~Regulation~~

As a registrant with the Securities and Exchange Commission (“SEC”), 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 (“CFTC”), an agency of the U.S. government which regulates most aspects of the commodity futures industry; rules of the National Futures Association (“NFA”), 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. Basis of Accounting

The financial statements of the Fund are prepared in accordance with accounting principles generally accepted in the United States of America. Such principles require Preferred to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

-7-

3742

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009 ~~2008~~

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

CB. ~~Basis of Accounting (Continued)~~Regulation

~~Commodity~~As ~~futures~~a ~~and forward~~registrant ~~transactions~~with ~~are reflected in~~ the ~~accompanying~~Securities ~~statements~~and ofExchange ~~financial~~Commission ~~condition~~(“SEC”), onthe ~~trade~~Fund ~~date.~~is ~~Net~~subject ~~unrealized~~to ~~gain~~the orregulatory ~~loss~~requirements onunder ~~open contracts (~~the ~~difference~~Securities ~~between~~Act ~~contract~~of ~~trade~~1933 ~~price~~ and ~~market~~the ~~price)~~Securities isExchange ~~reflected~~Act ~~in the statement~~ of ~~financial~~1934. ~~condition~~As ina ~~accordance~~commodity ~~with~~pool, ~~Financial~~the ~~Accounting~~Fund ~~Standards~~is ~~Board~~subject ~~(“FASB”) Interpretation FIN No. 39 - “Offsetting of Amounts Related~~ to ~~Certain~~the ~~Contracts.”~~regulations ~~The market value~~ of ~~each contract is based upon~~ the ~~closing~~Commodity ~~quotation~~Futures onTrading ~~the~~Commission ~~exchange~~(“CFTC”), ~~clearing~~an ~~firm~~agency orof ~~bank on, or through, which~~ the ~~contract is traded~~U.S. ~~The~~government ~~values~~ which ~~will~~regulates bemost ~~used~~aspects byof the ~~Fund~~commodity ~~for~~futures ~~open~~industry; ~~forward~~rules ~~and~~of ~~option~~the National ~~positions~~Futures ~~will~~Association ~~be provided by its administrator~~(“NFA”), ~~who~~an ~~obtains~~industry ~~market quotes~~self-regulatory ~~from~~organization; ~~data vendors~~ and ~~third~~the ~~parties.~~requirements ~~Any~~of ~~change in net unrealized gain or loss during~~ the ~~current~~various ~~period~~commodity isexchanges ~~reported~~where in the ~~statement~~Fund ~~of operations. Realized gains~~ and ~~losses~~Company onexecute ~~commodity~~or executed transactions. ~~are~~Additionally, ~~recognized in~~ the ~~period~~Fund inand ~~which the~~Company ~~contracts~~ are ~~closed.~~subject ~~Brokerage commissions paid directly~~ to ~~brokers,~~the ~~are~~requirements ~~reflected~~of asthe ~~“brokerage~~Futures ~~commissions”~~Commission inMerchants ~~the~~and ~~statement~~interbank ofmarket ~~operations,~~makers ~~include~~through ~~exchange~~which ~~and~~the ~~other~~Fund ~~trading fees~~ and ~~are~~Company ~~charged~~trade toor ~~expense when incurred~~traded.

~~The weighted average number of Units outstanding was computed for purposes of disclosing net income per weighted average Unit~~C. ~~The~~Basis ~~weighted average Units are equal to the number~~ of ~~Units outstanding at period end, adjusted proportionately for Units subscribed and redeemed based on their respective time outstanding during such period.~~ Accounting

The ~~Fund~~financial ~~has~~statements ~~elected~~of ~~not~~the toFund ~~provide~~are aprepared ~~Statement~~in ofaccordance ~~Cash~~with ~~Flows~~accounting asprinciples ~~permitted~~generally byaccepted ~~Statement~~in ofthe ~~Financial~~United ~~Accounting~~States ~~Standards~~of America (“~~SFAS~~U.S. GAAP”) No. ~~102,~~ ~~“Statement~~Such principles require Preferred to make estimates and assumptions that affect the reported amounts of ~~Cash~~assets ~~Flows~~and -liabilities ~~Exemption~~and disclosure of ~~Certain~~contingent ~~Enterprises~~assets and ~~Classification~~liabilities at the date of ~~Cash~~the ~~Flows~~financial ~~from~~statements ~~Certain~~and ~~Securities~~the ~~Acquired~~reported ~~for~~amounts ~~Resale~~of revenues and expenses during the reporting period.” Actual results could differ from those estimates.

~~Consistent~~Commodity ~~with~~futures ~~standard~~and ~~business~~forward transactions ~~practices~~are reflected in the ~~normal~~accompanying ~~course~~statements of ~~business,~~financial condition on the ~~Fund~~trade ~~has~~date. ~~provided~~Net ~~general~~unrealized ~~indemnifications~~gain toor ~~the~~loss ~~Managing~~on ~~Owner,~~open ~~its~~contracts ~~commodity~~(the ~~trading~~difference ~~advisors~~between contract trade price and ~~others~~market ~~when~~price) ~~they~~is ~~act,~~offset when reflected in ~~good~~the ~~faith,~~financial instatements since the ~~best~~contracts ~~interests~~are ofexecuted with the ~~Fund~~same counter party under a master netting arrangement. The ~~Fund~~market value of each contract is ~~unable~~based toupon ~~develop~~the anclosing ~~estimate~~quotation ofon the ~~maximum~~exchange, ~~potential~~clearing ~~amount~~firm ofor ~~future~~bank ~~payments~~on, ~~that~~or ~~could~~through, ~~potentially~~which the ~~result~~contract ~~from~~is ~~any~~traded. ~~hypothetical~~Any ~~future~~change ~~claim,~~in ~~but~~net ~~expects~~unrealized gain or loss during the ~~risk~~current period is reported in the statement of ~~having~~operations. toRealized ~~make~~gains ~~any~~and losses on commodity transactions are recognized in the period in which the contracts are ~~payments~~closed. ~~under~~Brokerage ~~these~~commissions ~~general~~paid ~~business~~directly ~~indemnifications~~to brokers are reflected as “brokerage commissions” in the statements of operations, include exchange and other trading fees, and are charged to beexpense ~~remote~~when incurred.

The weighted average number of Units outstanding was computed for purposes of disclosing net income (loss) per weighted average Unit. The weighted average number of Units is equal to the number of Units outstanding at year end, adjusted proportionately for Units subscribed and redeemed based on their respective time outstanding during such year.

For the years ended December 31, 2009, 2008, and 2007, the Fund indirectly earned income or loss through its investment in the Company (See Note 5).

The Fund has elected not to provide a Statement of Cash Flows since substantially all of the Fund’s investments are highly liquid and carried at fair value, the Fund has little or no debt and a Statement of Changes in Unitholders’ Capital is provided.

-8-

3843

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009 ~~2008~~

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting (Continued)

InConsistent ~~July~~with ~~2006,~~standard ~~the~~business ~~FASB issued~~practices ~~FASB Interpretation (“FIN”) No. 48, “Accounting for Uncertainty~~ in ~~Income~~the ~~Taxes~~normal -course ~~an interpretation~~ of ~~FASB Statement No. 109” (“FIN 48”)~~business, ~~which clarifies~~ the ~~accounting~~Fund ~~for~~has ~~uncertainty~~provided ingeneral indemnifications ~~tax~~to ~~positions. FIN 48 requires that~~ the ~~Fund~~Managing ~~recognize~~Owner, in its ~~financial~~commodity ~~statements,~~trading ~~the~~advisors ~~impact~~and ofothers awhen ~~tax~~they ~~position~~act, ifin ~~that~~good ~~position is more likely than not of being sustained on audit~~faith, ~~based~~in on the ~~technical~~best ~~merits~~interests of the ~~position~~Fund. The ~~provisions~~Fund ~~of FIN~~is 48unable ~~are~~to ~~effective~~develop ~~for~~an ~~fiscal~~estimate ~~years beginning after December 15, 2006, with the cumulative effect~~ of the ~~change~~maximum inpotential ~~accounting~~amount ~~principle recorded as an adjustment to opening retained earnings. In connection with the adoption~~ of ~~FIN~~future ~~48,~~payments ~~the Fund~~that ~~has~~could elected an accounting policy to classify interest and penalties related to unrecognized tax benefits as interest or other expense. All tax years which are statutorily open are subject to examination by the appropriate taxing authorities.potentially ~~Preferred,~~result asfrom ~~Managing~~any ~~Owner~~hypothetical offuture ~~the Fund~~claim, ~~evaluated~~but ~~the~~expects ~~impact of adopting FIN 48 on~~ the ~~Fund’s~~risk ~~financial statements. The Adoption~~ of ~~FIN~~having 48to ~~had~~make noany ~~material~~payments ~~impact~~under onthese ~~the~~general ~~Fund,~~business asindemnifications ~~the~~to ~~Fund’s~~be ~~tax position is based on established tax precedence for the tax treatment of investment partnerships as flow through tax entities~~remote.

InThe ~~September~~Fund ~~2006,~~accounts ~~the~~for ~~FASB~~financial ~~issued~~assets ~~SFAS No. 157~~and ~~(“SFAS~~liabilities ~~157”),~~using ~~“Fair Value Measurements”. SFAS 157 requires use of~~ a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels: quoted market prices in active markets for identical assets and liabilities (Level 1), inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly (Level 2), and unobservable inputs for the asset or liability (Level 3). ~~SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007.~~

The Fund ~~adopted~~considers prices for exchange traded commodity futures and options ~~SFAS~~contracts ~~157~~to be based on quoted prices in ~~the~~active ~~first~~markets ~~quarter~~for ofidentical ~~2008~~assets (Level 1). The ~~adoption~~values of ~~SFAS~~forwards, ~~157~~swaps ~~had~~and nocertain ~~impact~~options tocontracts ~~the~~for ~~items~~which ~~required~~market toquotations beare ~~carried~~not atreadily available are priced by third party data providers such as Bloomberg, Reuters, and or Super Derivatives who derive fair ~~value~~values for those assets from models with observable inputs (~~investments~~Level 2). inThere ~~these~~are ~~financial~~no ~~statements~~Level 3 investments on December 31, 2009 or 2008.

The following table summarizes the assets and liabilities measured at fair value using the fair value hierarchy ~~of SFAS 157~~:

December 31, 2009	Level 1		Level 2			Level 3			Total
Assets:
Unrealized gain on open futures contracts, net	$	72,225	$	0		$	0		$	72,225
Unrealized gain on open forward currencycontracts, net	$	0	$	6,328		$	0		$	6,328
December 31, 2008	Level 1		Level 2			Level 3			Total
Assets:
Unrealized gain on open futures contracts, net	$	215,655	$	0		$	0		$	215,655
Investment in WCM Pool LLC, at fair value	$	0	$	638,493		$	0		$	638,493
Investment in KMP Futures Fund I LLC,at fair value	$	0	$	638,493		$	0		$	638,493
Transfers in (out)	$	0	$	638,493		$	(638,493	)	$	0
Liabilities:
Unrealized loss on open forward currency contracts, net	$	0	$	(747	)	$	0		$	(747	)
Unrealized loss on open forward currencycontracts, net	$	0	$	(747	)	$	0		$	(747	)
December 31, 2007	Level 1		Level 2			Level 3			Total
Assets:
Unrealized gain on open futures contracts, net	$	229,997	$	0		$	0		$	229,997
Unrealized gain on open forward currencycontracts, net	$	0	$	4,720		$	0		$	4,720
Investment in WCM Pool LLC, at fair value	$	0	$	0		$	1,732,978		$	1,732,978
Note receivable, Managing Owner	$	0	$	0		$	1,685,193		$	1,685,193

-9-

3944

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009 ~~2008~~

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting (Continued)

~~Changes~~Investments classified as Level 2 at December 31, 2008 include the Fund’s investment in the ~~Level~~Company 3which is ~~fair~~valued monthly at the net asset value ~~category~~as ~~for~~reported by the ~~note~~Company. ~~receivable,~~The ~~Managing~~Company’s ~~Owner~~net ~~for~~asset ~~the~~value ~~year~~is ~~ended~~determined ~~December 31,~~based ~~2008~~upon ~~results~~its ~~from~~management’s ~~the~~best ~~investment~~estimate inof the ~~note~~fair value of ~~$1,685,193~~its ~~being~~underlying ~~reduced~~net byassets, asubstantially ~~pre-payment~~all of $which are investments valued using Level 1~~,100,000~~ inputs but include certain assets and aliabilities ~~transfer~~where ~~out~~the inputs into the determination of ~~Level~~fair 3value ~~and~~require ~~investments~~management judgment or estimation. The Managing Owner determined that certain of the Company’s ~~$585,193~~assets ~~bringing~~and liabilities which require management judgment or estimation were not material to the ~~balance~~Fund’s financial statements and therefore, the Fund’s investment in ~~investments~~the toCompany ~~zero~~should ~~(see~~be ~~Note~~classified ~~4).~~as Level 2 at December 31, 2008.

~~Investments classified as Level 2 and Level 3 under SFAS 157 include the Fund’s investment in the Company and are valued monthly at the net asset value as reported by the Company~~D. ~~The~~Recent ~~Company’s~~Accounting net asset value is determined based upon its management’s best estimate of the fair value of its underlying net assets, substantially all of which are investments valued using Level 1 and Level 2 inputs but include certain assets and liabilities where the inputs into the determination of fair value require management judgment or estimation. The Managing Owner determined that certain of the Company’s assets and liabilities which require management judgment or estimation were not material to the Fund’s financial statements and therefore, the Fund’s investment in the Company should be classified as Level 2 at December 31, 2008. A table presenting the changes in Level 2 and Level 3 fair value category for years ended December 31, 2008 and 2007, respectively, is provided in Note 5 of these financial statements. Of the $224,679 and $243,819 of income for the years ended December 31, 2008 and 2007, respectively, reported on Level 2 and Level 3 investments in Note 5, $(7,948) and $59,180, respectively, represent a change in unrealized gain (loss) allocated from the Company on the Fund’s statements of operations. Pronouncements

In ~~October~~April ~~2008~~2009, the ~~FASB~~Financial ~~issued~~Accounting ~~FASB~~Standards ~~Staff~~Board ~~Position FAS 157-3,~~ (“~~Determining the~~FASB”) ~~Fair~~issued ~~Value~~accounting ofguidance aclarifying ~~Financial Asset When~~ the ~~Market~~application ~~for~~of ~~That~~Accounting ~~Asset~~Standards IsCodification ~~Not Active”~~ (“~~FSP~~ASC” ~~FAS 157-3~~or “Codification”). ~~FSP~~Topic ~~FAS~~820, ~~157-3~~“Fair ~~clarified~~Value ~~the~~Measurements ~~application~~and ~~of SFAS 157~~Disclosures.” ~~FSP~~The ~~FAS~~additional ~~157-3~~guidance ~~demonstrated~~provides for how the fair value of a financial asset or liability is determined when the ~~market~~volume and level of activity for the asset or liability have significantly decreased and on identifying circumstances that ~~financial~~indicate ~~asset~~a transaction is ~~inactive~~not orderly. ~~FSP~~The ~~FAS~~guidance ~~157-3~~ was effective ~~upon~~for ~~issuance,~~interim ~~including~~and ~~prior~~annual periods ~~for~~after ~~which~~June 15, ~~financial~~2009, ~~statements~~with ~~had~~early ~~not~~adoption ~~been~~permitted ~~issued.~~for periods ~~Preferred~~ending after March 15, as2009, ~~Managing~~and ~~Owner~~is ofto ~~the~~be ~~Fund,~~applied ~~evaluated~~prospectively. ~~the~~The ~~impact~~Fund ~~of adoption~~adopted ofthe ~~FSP~~guidance ~~FAS157-3~~effective ~~and~~January 1, ~~its~~2009. ~~impact~~As onrequired, the Fund’s ~~financial~~also ~~statements~~adopted guidance relating to recognition and presentation of other-than-temporary impairments, effective January 1, 2009. The adoption of ~~this~~these ~~standard~~pronouncements did not have an impact on the Fund’s financial statements.

In ~~February~~March ~~2007~~2008, the FASB issued ~~SFAS~~accounting ~~No. 159~~guidance ~~(“SFAS~~which ~~159”),~~established ~~“The~~among ~~Fair~~other ~~Value~~things, ~~Option~~the disclosure requirements for ~~Financial~~derivative ~~Assets~~instruments and ~~Financial Liabilities”,~~for ~~including~~hedging ~~an amendment of SFAS 115~~activities. ~~This~~The guidance ~~statement~~is ~~provides~~effective ~~companies~~for ~~with an option to report selected~~ financial ~~assets~~statements ~~and~~issued ~~liabilities at fair value. This statement is effective~~ for fiscal years and interim periods beginning after November 15, ~~2007~~ ~~with early adoption permitted~~2008. ~~Preferred,~~The asFund ~~Managing~~adopted ~~Owner~~the ofguidance ~~the~~effective ~~Fund~~January 1, ~~evaluated~~2009. ~~the~~The ~~impact~~following oftable ~~adopting~~summarizes ~~SFAS~~quantitative ~~159~~information required ~~and~~by ~~its impact on~~ the ~~Fund’s financial statements~~guidance.

The ~~Fund~~fair ~~adopted~~value ~~SFAS~~of ~~159 during~~ the ~~first~~Fund’s ~~quarter~~derivatives ofby ~~2008~~instrument type, ~~and~~as itwell ~~did~~as ~~not~~the location ~~have~~of athose ~~material~~instruments ~~effect~~ on the ~~Fund’s~~statement of financial ~~statements,~~condition as ~~the~~of ~~Fund~~December 31, ~~did not~~2009, ~~elect~~are included in the ~~fair~~condensed ~~value~~schedule ~~option~~of ~~for~~investments, ~~any~~all ~~eligible~~of ~~financial~~which ~~assets~~are ordeemed ~~liabilities~~derivatives not designated as hedging instruments under ASC Topic 815, “Derivatives and Hedging.”

In April 2007, the FASB released FASB Staff Position FIN No. 39-1 “Offsetting of Amounts Related to Certain Contracts” (“FSP FIN 39-1”). FSP FIN 39-1 requires that offsetting of assets and liabilities in the balance sheet is improper except where a right of setoff exists. The application of FSP FIN 39-1 is required for fiscal years beginning after November 15, 2007 and interim period within those fiscal years. Preferred, as Managing Owner of the Fund, evaluated the impact of FSP FIN 39-1 and its impact on the Fund’s financial statements. The adoption of this standard did not have an impact on the Funds financial statements.

-10-

4045

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009 ~~2008~~

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

CD. ~~Basis~~Recent of Accounting Pronouncements (Continued)

InThe ~~March~~trading ~~2008,~~revenue ~~the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities – an amendment~~ of ~~FASB Statement No. 133” (“SFAS 161”). SFAS 161 establishes, among other things,~~ the ~~disclosure requirements~~Fund’s ~~for~~derivatives ~~derivative~~by ~~instruments~~instrument ~~and for hedging activities. SFAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15~~type, ~~2008.~~as ~~Preferred,~~well as ~~Managing Owner of~~ the ~~Fund,~~location ~~evaluated the impact~~ of ~~adopting~~those ofgains ~~SFAS 161~~ and ~~its~~losses ~~impact~~ on the ~~Fund’s~~statement ~~financial statements. The adoption~~ of ~~this~~operations, ~~standard~~for isthe ~~not~~year ~~expected~~ended toDecember 31, ~~have~~2009 anis ~~impact~~as onfollows: ~~the Fund’s financial statements.~~

D. Cash


Type of Instrument	Trading Revenue for the Year Ended December 31, 2009
Commodities Contracts	$	(122,740	)
Currencies Contracts		(32,649	)
Energy Contracts		(395,084	)
Interest Rate Contracts		(255,116	)
Metals Contracts		36,696
Stock Indices Contracts		95,555
Other Contracts		(6,465	)
Forward Currency Contracts		65,695


Total	$	(614,108	)


Line item in Statement of Operations
Realized	$	(477,753	)
Change in unrealized		(136,355	)


Total	$	(614,108	)

~~Cash~~Effective ~~represents~~for ~~amounts~~the ~~deposited~~quarter ~~with~~ending aJune 30, ~~bank and clearing brokers~~2009, athe ~~portion~~Fund ofadopted ~~which~~ASC isTopic ~~restricted~~855, “Subsequent ~~for purposes of meeting margin requirements~~Events,” which ~~typically~~provides ~~range~~guidance ~~from 0%~~ to ~~35%~~establish ofgeneral ~~the~~standards ~~notional amounts~~ of ~~the~~accounting ~~derivatives~~for ~~traded.~~and Asdisclosures of ~~December 31,~~events ~~2008~~that ~~and~~occur ~~2007~~after ~~restricted~~the ~~cash~~balance ~~totaled $401,868~~sheet ~~and~~date ~~$573,785~~but ~~respectively.~~before ~~The~~financial ~~Fund~~statements ~~receives~~are ~~interest~~issued onor ~~all~~are ~~cash~~available ~~balances~~to ~~held~~be ~~by the bank and clearing brokers at prevailing rates~~issued. InThe adoption ~~addition,~~of ~~the~~ASC ~~Fund~~Topic is855 ~~allocated~~did ~~its~~not ~~pro-rata~~have ~~share~~a ofmaterial ~~interest~~impact ~~from~~on the ~~Company~~Fund’s ~~effective January 1,~~financial ~~2007~~statements.

E. Income Taxes

The Fund is treated as a partnership for Federal income tax purposes. As such, the Fund is not required to provide for, or pay, any Federal or state income taxes. Income tax attributes that arise from its operations are passed directly to the individual Unitholders including the Managing Owner. The Fund may be subject to other state and local taxes in jurisdictions in which it operates.

F. Investment in WCM Pool LLC

The investment in the Company is reported in the Fund’s statement of financial condition at the net asset value as reported by the Company, which the Managing Owner considers an appropriate estimate of fair value. The Fund records its proportionate share of the Company’s income or loss in the statements of operations. Through its investment in the Company, the Fund pays its pro-rata share of the 2% annual management fee (accrued and paid monthly) and a 20% incentive fee on New High Net Trading Profits (accrued monthly and paid quarterly) as defined in the advisory agreement. Valuation of futures and forwards currency contracts by the Company is discussed in the notes to the Company’s financial statements included in Section II of this report.

G. Profit and Loss Allocation, Distributions and Redemptions

The Fund allocates profits and losses for both financial and tax-reporting purposes to its Unitholders monthly on a pro rata basis based on each Unitholder’s number of Units outstanding during the month. Distributions (other than redemptions of Units) may be made at the sole discretion of the Managing Owner on a pro rata basis in accordance with the respective capital balances of the Unitholders. The Managing Owner has not made any distributions since inception and does not presently intend to make any distributions in the future.

Redemptions are permitted as of the last day of each month, on at least 10 days prior written notice. Redemptions are at the then current net asset value per Unit. Partial redemptions are permitted.

-11-

4146

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009 ~~2008~~

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

HD. ~~Foreign~~Recent ~~Currency~~Accounting ~~Transactions~~Pronouncements (Continued)

~~The~~Effective ~~Fund’s~~July 1, ~~functional currency~~2009, is the ~~U.S.~~Fund ~~dollar;~~adopted ~~however~~ASC Topic 105, it“Generally ~~transacts~~Accepted Accounting ~~business~~Principles.” inASC ~~currencies~~Topic ~~other~~105 ~~than~~establishes the ~~U.S.~~FASB ~~dollar.~~Codification ~~Assets~~as ~~and~~the ~~liabilities~~source ~~denominated~~of inauthoritative ~~currencies~~accounting ~~other~~principles ~~than~~recognized by the ~~U.S.~~FASB ~~dollar~~to ~~are~~be ~~translated~~applied ~~into~~by ~~U.S.~~non-governmental ~~dollars~~entities atin the ~~rates~~preparation inof ~~effect~~financial atstatements ~~the date of~~in ~~the~~conformity ~~statement~~with ofU.S. ~~financial condition~~GAAP. ~~Income~~Rules and ~~expense~~interpretive ~~items~~releases ~~denominated~~of inthe ~~currencies~~SEC ~~other~~under ~~than~~authority ~~the~~of ~~U.S.~~federal ~~dollar~~securities laws are ~~translated~~also ~~into~~sources of authoritative U.S. ~~dollars~~GAAP atfor ~~the~~SEC ~~rates~~registrants. inThe ~~effect~~Codification ~~during~~did ~~the~~not ~~period~~change U.S. ~~Gains~~GAAP ~~and~~but ~~losses~~reorganizes ~~resulting from~~ the ~~translation~~existing literature tointo UTopics.~~S. dollars~~ ~~are~~References ~~reported~~for inFASB ~~operations~~guidance ~~currently~~throughout inthis ~~the~~document ~~caption~~have ~~realized~~been onupdated for the ~~statements of operations~~Codification.

IOn September 30, 2009, the FASB issued Accounting Standards Update (“ASU”) No. 2009-12, ~~Interest~~Investments ~~Income~~in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent) (“ASU 2009-12”). ASU 2009-12 provides guidance on measuring the fair value of certain alternative investments, and amends ASC Topic 820 to offer investors a practical means for measuring the fair value of investments in certain entities that calculate net asset value per share and require certain disclosures. ASU 2009-12 is effective for periods ending after December 15, 2009. The adoption of ASU 2009-12 did not have an impact on the Fund’s financial statements.

~~Interest~~E. ~~income~~Cash isand ~~recorded~~Cash ~~on an accrual basis.~~ Equivalents

~~Note~~Cash 2represents amounts deposited with a bank and clearing brokers, a portion of which is restricted for purposes of meeting margin requirements, which typically range from 0% to 35% of the notional amounts of the derivatives traded. ~~MANAGING~~As ~~OWNER~~of December 31, 2009 and 2008, restricted cash totaled $493,598 and $401,868, respectively. The Fund receives interest on all cash balances held by the bank and clearing brokers at prevailing rates. In addition, the Fund was allocated its pro-rata share of interest from the Company through September 30, 2009.

~~The Managing Owner of the Fund is Preferred Investment Solutions Corp~~F., ~~which~~Income conducts and manages the business of the Fund. Effective December 1, 2008, the Fifth Amended and Restated Declaration of Trust and Trust Agreement no longer requires the Managing Owner to maintain a capital account equal to 1% of the total capital accounts of the Fund or net worth of at least $1,000,000. Taxes

The ~~Managing~~Fund ~~Owner~~ is ~~paid~~treated ~~monthly~~as ~~brokerage~~a ~~commissions~~partnership ~~(“Managing~~for ~~Owner~~Federal ~~Brokerage~~income ~~Commissions”)~~tax ~~equal~~purposes. toAs ~~1/12~~such, ~~of 10% (10% annually) of~~ the Fund’s ~~beginning~~is ofnot ~~month~~required ~~Net~~to ~~Asset~~provide ~~Value on the first $25 million of Net Asset Value and 1/12 of 9% (9% annually) of the Fund’s beginning of month Net Asset Value in excess of $25 million. The Managing Owner~~for, inor ~~turn~~pay, ~~pays~~any ~~substantially~~Federal ~~all~~or ~~actual~~state ~~costs~~income oftaxes. ~~executing~~Income ~~the~~tax ~~Fund’s~~attributes ~~consulting~~that ~~trades,~~arise ~~selling~~from its ~~commissions~~operations ~~and~~are ~~trailing~~passed ~~commissions~~directly to ~~selling~~the ~~agents,~~individual ~~and~~Unitholders ~~fees~~including to the ~~commodity trading advisors.~~ Managing Owner. ~~Brokerage~~The ~~Commissions~~Fund ~~are~~may ~~reduced~~be bysubject ~~brokerage~~to ~~commissions and~~ other ~~trading~~state ~~fees~~and ~~paid~~local ~~directly~~taxes toin ~~brokers~~jurisdictions byin ~~the~~which ~~Fund~~it ~~as well as management fees allocated from the Company~~operates. ~~Excluded from the Managing Owner broker commissions are the Transtrend or Company incentive fee payments.~~

The ~~Managing~~Fund ~~Owner~~recognizes istax ~~paid~~benefits anor ~~incentive~~expenses ~~fee~~of ~~equal~~uncertain totax 5%positions ofin ~~New~~the ~~Overall~~year ~~Appreciation~~such ~~(which~~determination is ~~defined~~made inwhen the positions ~~Declaration~~are of“more ~~Trust~~likely ~~and~~than ~~Trust~~not” ~~Agreement~~to ~~and~~be ~~excludes~~sustained ~~interest~~assuming ~~income)~~examination asby oftax ~~each~~authorities. ~~fiscal~~The ~~year-end~~Managing ~~and~~Owner ~~upon redemption~~has ofreviewed ~~Units.~~the ~~For~~Fund’s ~~the~~tax ~~year~~positions ~~ended~~for all open years (after December 31, ~~2008,~~2006) ~~the~~and ~~Managing~~concluded ~~Owner~~that ~~earned~~no anprovision for ~~incentive~~unrecognized ~~fee~~tax ofbenefits ~~$39,409~~or ofexpense ~~which~~is ~~$39,348~~required ~~remains~~in ~~payable~~these atfinancial ~~December 31, 2008~~statements. NoThe ~~incentive~~Fund ~~fees~~has ~~were~~elected ~~earned~~an byaccounting ~~the~~policy ~~Managing~~to ~~Owner~~classify ~~for~~interest ~~the~~and ~~years~~penalties ~~ended~~related to unrecognized tax benefits as interest or other expense. The 2006 through 2009 ~~December 31,~~tax ~~2007~~years generally remain subject to examination by U.S. federal and ~~2006~~most state tax authorities.

Note 3. COMMODITY TRADING ADVISORS

The Fund has or had advisory agreements with various commodity trading advisors pursuant to which the Fund pays or paid quarterly profit shares of 20% of Trading Profit (as defined in each respective advisory agreement). For the twelve months ended December 31, 2008, 2007 and 2006, incentive fees earned by various commodity trading advisors totaled $477,115, $267,326 and $103,991, respectively, of which $197,424 and $97,970 was payable at December 31, 2008 and 2007, respectively.

-12-

4247

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009 ~~2008~~

Note 41. ~~RELATED~~ORGANIZATION ~~PARTIES~~AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

~~The~~G. ~~Fund~~Investment ~~reimburses~~in ~~the~~KMP ~~Managing~~Futures ~~Owner for services it performs for the~~ Fund, ~~which~~I ~~include, but are not limited to: management, accounting, registrar, transfer and assignment functions, investor communications, printing, and other administrative services.~~ LLC

The ~~expenses~~investment ~~incurred~~in bythe Company was reported in the Fund’s ~~for~~statements ~~services~~of ~~performed~~financial condition at the net asset value as reported by the Company, which the Managing Owner ~~for~~considered an ~~the~~appropriate estimate of fair value. The Fund recorded its proportionate share of the Company’s income or loss in the statements of operations. Valuation of futures, ~~for~~forward and option contracts by the ~~years~~Company ~~ended~~is discussed in the notes to the ~~December 31,~~Company’s ~~2008~~financial statements included in Section II of this report. Through its investment in the Company, ~~2007~~the Fund paid its pro-rata share of the 2% annual management fee (accrued and ~~2006~~paid ~~were:~~monthly) and a 20% incentive fee on “New High Net Trading Profits” (accrued monthly and paid quarterly) as defined in the advisory agreement through September 30, 2009.

	2008		2007		2006
Commissions	$	509,815	$	449,909	$	713,251
General and administrative		36,219		30,220		18,654
	$	546,034	$	480,129	$	731,905

Profit and Loss Allocations, Distributions and Redemptions

~~Expenses~~The ~~payable~~Fund toallocates ~~the~~profits ~~Managing~~and ~~Owner~~losses for both financial and ~~its~~tax-reporting ~~affiliates~~purposes ~~(which~~to ~~are~~its ~~included~~Unitholders inmonthly ~~accounts~~on ~~payable~~a pro rata ~~and~~basis based on each Unitholder’s number of Units outstanding during the month. Distributions (other than redemptions of Units) may be made at the sole discretion of the Managing Owner ~~brokerage~~on ~~commission~~a ~~and~~pro ~~other~~rata ~~transactions~~basis ~~fees~~in ~~payable~~accordance onwith the ~~statement~~respective capital balances of ~~financial~~the ~~condition)~~Unitholders. asThe ofManaging ~~December 31,~~Owner ~~2008~~has ~~and~~not ~~2007~~made ~~were~~any ~~$47,462~~distributions since inception and ~~$71,935,~~does ~~respectively~~not presently intend to make any distributions in the future.

OnRedemptions ~~September 24,~~are ~~2007,~~permitted ~~the Fund and the Managing Owner entered into a Purchase Agreement (the “Purchase Agreement”), effective~~ as of ~~August 10,~~ ~~2007, whereby~~ the ~~Managing~~last ~~Owner~~day ~~acquired~~of ~~all~~each ~~the Fund’s rights~~month, ~~title~~on and interest to the Investment Advisory Agreement (“Advisory Agreement”) dated February 11, 2004, by and between the Fund and Sentinel Management Group, Inc. (“Sentinel”), an SEC-registered investment adviser and a CFTC-registered futures commission merchant, and to the Fund’s right, title and interest to the Fund’s deposits in an account (the “Account”) managed by Sentinel, including the Fund’s rights to the funds in the Account, including all claims related thereto against Sentinel (the “Asset”). The purchase price for the Asset was $1,685,193 (the “Purchase Price”), which represented the recorded value of the Fund’s deposit in the Account as reported to the Fund by Sentinel at ~~the~~least ~~close of business on August~~ 10, ~~2007,~~days ~~the~~prior ~~business~~written ~~day immediately preceding the day on which withdrawals from the Account were suspended by Sentinel~~notice. ~~The~~Redemptions ~~payment~~are ofat the ~~Purchase~~then ~~Price~~current bynet ~~the~~asset ~~Managing~~value ~~Owner~~per ~~to the Fund was paid by a secured Demand Promissory Note (the “Note”) made by the Managing Owner in favor of the Fund~~Unit. The interest rate on the Note is the Wall Street Journal Prime Rate (3.25% at December 31, 2008) and resets monthly. Interest is payable monthly in arrears on the first business day of the month. The Note was secured by a SecurityPartial ~~Agreement~~redemptions ~~whereby~~are ~~the Managing Owner granted the Fund a first priority interest in the Assets to secure payment of the Note~~permitted.

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 statements 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 operations currently under the caption realized on the statements of operations.

Interest Income

Interest income is recorded on an accrual basis.

Redemptions Payable

For purposes of both financial reporting and calculation of redemption value, Net Asset Value per unit is calculated by dividing Net Asset Value by the number of outstanding investors’ interests.

-13-

4348

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009 ~~2008~~

Note 42. ~~RELATED~~MANAGING ~~PARTIES (CONTINUED)~~OWNER

OnThe ~~June 23, 2008, the~~ Managing Owner ~~sold~~conducts ~~the Asset to an unrelated third party~~ and ~~applied~~manages the ~~proceeds~~business of the ~~sale of the Asset to pay down a portion of the Note~~Fund. Effective AsDecember 1, ~~part of that transaction~~2008, the ~~Fund~~Trust ~~and the Managing Owner entered into a Release and Setoff~~ Agreement ~~whereby~~no ~~(i) the~~longer ~~Fund~~requires ~~released its security interest in~~ the ~~Asset and any appreciation and (ii) the~~ Managing Owner ~~agreed~~to ~~that~~maintain ina ~~the~~capital ~~event~~account ~~the~~equal ~~Fund~~to ~~demands~~1% ~~payment~~ of ~~all or a part of~~ the ~~Note~~total ~~and~~capital ~~the~~accounts ~~Managing~~of ~~Owner fails to pay such amount,~~ the Fund. ~~shall~~As ~~have the right to set off~~ such, ~~amount demanded under~~ the ~~Note~~Managing ~~against~~Owner ~~any~~redeemed ~~and~~ all ~~amounts~~its ~~due~~Units ~~and owing then and~~ in the ~~future to the Managing Owner by the~~ Fund ~~under the Fund’s Trust Agreement, including, without limitation, the Incentive Fee (as defined~~ in the Trust Agreement) and the net portion of any brokerage commissions after payment of related expenses until all amounts outstanding under the Note are paid in full and all other obligations have been paid or discharged2009.

~~Through~~The ~~December 31,~~Managing ~~2008,~~Owner ~~the~~is paid monthly brokerage commissions (“Managing Owner ~~paid~~Brokerage Commissions”) equal to 1/12 of 10% (10% annually) of the Fund ~~principal~~’s beginning of ~~$1,100,000~~month Net Asset Value on the ~~Note,~~first ~~leaving~~ $~~585,193~~25 million of ~~note~~Net ~~receivable~~Asset ~~from~~Value and 1/12 of 9% (9% annually) of the Fund’s beginning of month Net Asset Value in excess of $25 million. The Managing Owner, ~~which~~in isturn, ~~reflected~~pays onsubstantially all actual costs of executing the ~~December 31~~Fund’s trades, ~~2008~~selling ~~statement~~commissions ofand ~~financial~~trailing ~~condition.~~commissions ~~Interest~~to ~~receivable~~selling ~~from~~agents, and fees to the commodity trading advisors. Managing Owner Brokerage onCommissions ~~the~~are ~~Note~~reduced asby ~~of December 31,~~brokerage ~~2008~~commissions and ~~2007~~other ~~was~~trading ~~$1,833~~fees ~~and~~paid ~~$10~~directly to brokers by the Fund,~~650,~~ ~~respectively~~as well as management fees allocated from the Company. Excluded from the Managing Owner Brokerage Commissions are the Transtrend or Company incentive fee payments.

~~Any~~The ~~portion~~Managing ofOwner ~~the~~is ~~principal~~paid ~~amount,~~an ~~which~~incentive isfee ~~not~~equal ~~demanded~~to by5% ~~the~~of “New ~~Fund~~Overall ~~prior~~Appreciation” to(which ~~August 31,~~is ~~2009,~~defined ~~will~~in bethe ~~due~~Trust Agreement and ~~payable~~excludes byinterest ~~the~~income) ~~Managing~~as ~~Owner,~~of ~~with~~each ~~all~~fiscal ~~accrued~~year-end and ~~unpaid~~upon ~~interest~~redemption ~~thereon,~~of onUnits. ~~August~~Incentive fees earned by the Managing Owner during the years ended December 31, 2009, 2008 ~~unless~~and ~~the~~2007 ~~Fund~~were $0, $39,409, and ~~the~~$0, ~~Managing~~respectively, ~~Owner~~of ~~agree~~which to$0 anand ~~extension~~$39,348 ofwere ~~the~~payable ~~Note.~~at ~~(See~~December 31, ~~Note~~2009 9)and 2008, respectively.

NoNote ~~default has existed or currently exists on the note receivable from the Managing Owner~~3. IfRELATED a default existed, the note receivable from the Managing Owner in the amount of $585,193 would be offset by $38,947 of brokerage commissions payable to the Managing Owner and $39,348 of incentive fees payable to the Managing Owner. PARTIES

~~Note~~The 5.Fund ~~INVESTMENT~~reimburses INthe ~~WCM~~Managing ~~POOL~~Owner ~~LLC~~for services it performs for the Fund, which include, but are not limited to: management, accounting, registrar, transfer and assignment functions, investor communications, printing, and other administrative services.

~~Effective~~The ~~January 1,~~expenses ~~2007,~~incurred by the Fund ~~invested~~for aservices ~~portion~~performed ofby ~~its~~the ~~assets~~Managing inOwner for the ~~Company. The~~ Fund’s, ~~investment~~for in the ~~Company~~years ~~represents~~ended ~~approximately 3.96% and 8.60% of the net asset value of the Company at~~ December 31, 2009, 2008 and 2007, ~~respectively.~~were: ~~The investment in the Company is subject to the Organization Agreement of the Company.~~

Summarized information for the Fund’s investment in the Company is as follows:


	2009		2008		2007
Commissions	$	499,763	$	509,815	$	449,909
General and administrative		51,707		36,219		30,220


	$	551,470	$	546,034	$	480,129

	Net Asset ValueDecember 31, 2007		Investments		Income*		Redemptions			Net Asset ValueDecember 31, 2008
WCM Pool LLC	$	1,732,978	$	0	$	224,679	$	(1,319,164	)	$	638,493
	Net Asset ValueDecember 31, 2006		Investments		Income*		Redemptions			Net Asset ValueDecember 31, 2007
WCM Pool LLC	$	0	$	2,143,975	$	243,819	$	(654,816	)	$	1,732,978

* Included in earnings and includes ($7,948) and $59,180 for 2008 and 2007, respectively, attributable to the change in unrealized gains and losses.

-14-

4449

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009 ~~2008~~

Note 53. ~~INVESTMENT~~RELATED INPARTIES ~~WCM POOL LLC~~ (CONTINUED)

~~The~~Expenses ~~Fund~~payable ~~may~~to ~~make~~the ~~additional~~Managing ~~contributions~~Owner toand orits ~~redemptions~~affiliates ~~from,~~(which ~~the~~are included ~~Company~~in accounts payable and other and Managing Owner brokerage commissions and other transaction fees payable on athe ~~monthly~~statements ~~basis~~of financial condition) as of December 31, 2009 and 2008 were $42,818 and $47,462, respectively.

On September 24, 2007, the Fund and the Managing Owner entered into a Purchase Agreement (the “Purchase Agreement”), effective as of August 10, 2007, whereby the Managing Owner acquired all the Fund’s rights, title and interest to the Investment Advisory Agreement (“Advisory Agreement”) dated February 11, 2004, by and between the Fund and Sentinel Management Group, Inc. (“Sentinel”), an SEC-registered investment adviser and a CFTC-registered futures commission merchant, and to the Fund’s right, title and interest to the Fund’s deposits in an account (the “Account”) managed by Sentinel, including the Fund’s rights to the funds in the Account, including all claims related thereto against Sentinel (the “Asset”). The purchase price for the Asset was $1,685,193 (the “Purchase Price”), which represented the recorded value of the Fund’s deposit in the Account as reported to the Fund by Sentinel at the close of business on August 10, 2007, the business day immediately preceding the day on which withdrawals from the Account were suspended by Sentinel. The payment of the Purchase Price by the Managing Owner to the Fund was paid by a secured Demand Promissory Note 6(the “Note”) made by the Managing Owner in favor of the Fund. ~~SUBSCRIPTIONS~~The interest rate on the Note is the Wall Street Journal Prime Rate (3.25% at December 31, ~~DISTRIBUTIONS~~2009) ~~AND~~and ~~REDEMPTIONS~~resets monthly. Interest is payable monthly no later than the first business day of the subsequent month. The Note was secured by a Security Agreement whereby the Managing Owner granted the Fund a first priority interest in the Asset to secure payment of the Note.

~~Investments~~On inJune 23, ~~Units~~2008, ~~were~~the ~~made~~Managing byOwner ~~subscription~~sold ~~agreement,~~the ~~subject~~Asset to ~~acceptance~~an byunrelated third party and applied the ~~Managing~~proceeds ~~Owner~~of the sale of the Asset to pay down a portion of the Note. As part of that ~~February 28~~transaction, ~~2006,~~the Fund and the Managing Owner ~~suspended~~entered ~~additional~~into ~~contributions~~a toRelease and Setoff Agreement whereby (i) the Fund. Areleased ~~Unitholder~~its ~~may request~~security interest in the Asset and ~~receive~~any ~~redemption~~appreciation ofand ~~Units~~(ii) the ~~owned,~~Managing ~~subject~~Owner toagreed ~~restrictions~~that in the ~~Declaration~~event the Fund demands payment of ~~Trust~~all ~~and~~amounts ~~Trust~~outstanding ~~Agreement.~~under ~~The~~the ~~Fund~~Note isand ~~not~~the ~~required~~Managing Owner fails to ~~make~~pay ~~distributions~~such amount, ~~but~~the ~~may~~Fund doshall sohave atthe right to set off such amount outstanding under the ~~sole~~Note ~~discretion~~against ofany and all amounts due and owing then and in the future to the Managing Owner. ~~The~~by ~~Managing~~the ~~Owner~~Fund under the Fund’s Trust Agreement, including, without limitation, the Incentive Fee (as defined in the Trust Agreement) and the net portion of any brokerage commissions after payment of related expenses ~~has~~until ~~not~~all ~~made~~amounts outstanding under the Note are paid in full and ~~does~~all ~~not~~other ~~presently~~obligations ~~intend~~have tobeen ~~make~~paid ~~any~~or ~~distributions~~discharged.

~~Units~~Through ~~purchased on or after May~~June 3130, ~~2004~~2008, ~~and redeemed prior to~~ the ~~end~~Managing ofOwner ~~the twelfth month after such Units are sold were subject to the following redemption charges~~ paid to the ~~Managing~~Fund ~~Owner:~~principal ~~3.5%~~ of ~~Net~~$1,100,000 ~~Asset Value redeemed~~ on ~~or after~~ the ~~end~~Note. ofNo ~~the~~additional ~~first~~payments ~~and~~have onbeen orreceived ~~before~~from the ~~end~~Managing ofOwner ~~the~~through ~~third~~December 31, ~~month~~2009, ~~after purchase;~~leaving ~~2.625%~~$585,193 of ~~Net~~note ~~Asset~~receivable ~~Value redeemed~~ from the Managing ~~beginning~~Owner ofwhich ~~the~~is ~~fourth~~reflected ~~and~~ on orthe ~~before~~December 31, ~~the~~2009 ~~end~~statement of ~~the~~financial ~~sixth month after purchase; 1~~condition.~~75%~~ ofInterest ~~Net~~receivable ~~Asset Value redeemed~~ from the ~~beginning~~Managing ofOwner ~~the seventh and~~ on ~~or before~~ the ~~end~~Note as of ~~the~~December 31, ~~ninth~~2009 ~~month after purchase;~~ and ~~0.875%~~2008 ofwas ~~Net~~$1,638 ~~Asset Value redeemed from the beginning of the tenth~~ and on$1,833, ~~or before the end of the twelfth month after purchase~~respectively.

~~All~~Prior ~~redemption~~to ~~charges~~February 23, ~~are~~2009, ~~paid~~any toportion of the ~~Managing~~principal ~~Owner.~~amount ~~Such~~which ~~redemption~~was ~~charges~~not ~~are~~demanded ~~included~~by ~~in redemptions in~~ the ~~statement~~Fund ofprior ~~changes~~to August 31, 2009, inwould ~~unitholders’~~be ~~capital~~due and ~~amounted~~payable toby ~~$0,~~the $0Managing ~~and~~Owner, ~~$71~~with ~~during~~all ~~2008,~~accrued ~~2007~~ and ~~2006~~unpaid interest thereon, ~~respectively~~on August 31, 2009.

Note 7. DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

The Fund’s investment in the Company is subject to the market and credit risks of the futures contracts, options on futures contracts, forward currency contracts and other financial instruments held or sold short by the Company. The Fund bears the risk of loss only to the extent of the market value of its investments and, in certain specific circumstances, distributions and redemptions received in respect to the Fund’s investment in the Company.

In addition, the Fund has cash on deposit with financial institutions and in broker trading accounts. In the event of a financial institution’s insolvency, recovery of cash on deposit may be limited to account insurance or other protection afforded such deposits. 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.

The Fund is also exposed to various types of risks associated with the derivative instruments and related markets in which it directly invests. These risks include, but are not limited to, risk of loss from fluctuations in the value of derivative instruments held (market risk) and the inability of counterparties to perform under the terms of the Fund’s investment activities (credit risk).

-15-

4550

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009 ~~2008~~

Note 73. ~~DERIVATIVE~~RELATED ~~INSTRUMENTS~~PARTIES ~~AND ASSOCIATED RISKS~~ (CONTINUED)

On February 23, 2009, the Managing Owner and the Fund agreed to modify the terms of the Note such that the portion of the principal amount of the Note which has not been demanded by the Fund prior to August 31, 2010 shall be due and payable by the Managing Owner along with all accrued and unpaid interest on August 31, 2010, unless the Managing Owner and the Fund agree to a further extension of the Note.

No default has existed or currently exists on the note receivable from the Managing Owner. If a default existed, the note receivable from the Managing Owner in the amount of $585,193 would be offset by $28,193 of brokerage commissions payable to the Managing Owner as of December 31, 2009.

Note 4.

COMMODITY TRADING ADVISORS

The Fund has or had 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). For the years ended December 31, 2009, 2008 and 2007, incentive fees earned by various commodity trading advisors totaled $201, $477,115, and $267,326, respectively, of which $0 and $197,424 was payable at December 31, 2009 and 2008, respectively.

Note 5.

INVESTMENT IN THE COMPANY

Effective January 1, 2007, the Fund invested a portion of its assets in the Company. The Fund fully redeemed its assets from the Company as of September 30, 2009. The Fund’s investment in the Company represents 0.00% and 3.96% of the net asset value of the Company at December 31, 2009 and 2008, respectively. The investment in the Company was subject to the Organization Agreement of the Company.

Summarized information for the Fund’s investment in the Company is as follows:


	Net Asset Value December 31, 2008		Investments		Loss*			Redemptions			Net Asset Value December 31, 2009
KMP Futures Fund I LLC	$	638,493	$	0	$	(30,331	)	$	(608,162	)	$	0


	Net Asset Value December 31, 2007		Investments		Gain*			Redemptions			Net Asset Value December 31, 2008
KMP Futures Fund I LLC	$	1,732,978	$	0	$	224,679		$	(1,319,164	)	$	638,493


	Net Asset Value December 31, 2006		Investments		Gain*			Redemptions			Net Asset Value December 31, 2007
KMP Futures Fund I LLC	$	0	$	2,143,975	$	243,819		$	(654,816	)	$	1,732,978

Earnings include $(8,259), $(7,948) and $59,180 for the years ended December 31, 2009, 2008 and 2007, respectively, attributable to the change in unrealized gains and losses.

The Fund had been able to make additional contributions to, or redemptions from, the Company on a monthly basis.

-16-

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009

Note 6.

SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS

Investments in Units were made by subscription agreement, subject to acceptance by the Managing Owner. As of February 28, 2006, the Managing Owner suspended additional contributions to the Fund. A Unitholder may request and receive redemption of Units owned, subject to restrictions in the Trust Agreement. The Fund is not required to make distributions, but may do so at the sole discretion of the Managing Owner. The Managing Owner has not made and does not presently intend to make any distributions.

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

Prior to the Fund’s full redemption from the Company on September 30, 2009, the Fund’s investment in the Company was subject to the market and credit risks of the futures contracts, options on futures contracts, forward currency contracts and other financial instruments held or sold short by the Company. The Fund bore the risk of loss only to the extent of the market value of its investments and, in certain specific circumstances, distributions and redemptions received in respect to the Fund’s investment in the Company.

In addition, the Fund has cash on deposit with financial institutions and in broker trading accounts. In the event of a financial institution’s insolvency, recovery of cash on deposit may be limited to account insurance or other protection afforded such deposits. 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.

Market Risk

Trading in futures and forward contracts (including foreign exchange) involves entering into contractual commitments to purchase or sell a particular commodity at a specified date and price. The gross or face amount of the contracts, which is typically many times that of the Fund’s net assets being traded, significantly exceeds the Fund’s future cash requirements since the Fund intends to close out its open positions prior to settlement. As a result, the Fund is generally subject only to the risk of loss arising from the change in the value of the contracts. As such, the Fund considers the fair value of its derivative instruments to be the net unrealized gain or loss on the contracts. The market risk associated with the Fund’s commitments to purchase commodities is limited to the gross or face amount of the contracts held. However, when the Fund enters into a contractual commitment to sell commodities, it must make delivery of the underlying commodity at the contract price and then repurchase the contracts at prevailing market prices or settle in cash. Since the repurchase price to which a commodity can rise is unlimited, entering into commitments to sell commodities exposes the Fund to unlimited risk.

Market risk is influenced by a wide variety of factors, including government programs and policies, political and economic events, the level and volatility of interest rates, foreign currency exchange rates, the diversification effect among the derivative instruments the Fund holds and the liquidity and inherent volatility of the markets in which the Fund trades.

~~Credit~~-17- ~~Risk~~

~~When~~52 entering into futures or forward contracts (including foreign exchange), the Fund is exposed to credit risk that the counterparty to the contract will not meet its obligations. The counterparty for futures contracts traded on United States and most foreign futures exchanges is the clearinghouse associated with the particular exchange. In general, clearinghouse are backed by their corporate members who are required to share any financial burden resulting from the non-performance by one of their members and, as such, should significantly reduce this credit risk. In cases where the clearinghouse is not backed by the clearing members (i.e., some foreign exchanges), it is normally backed by a consortium of banks or other financial institutions. On the other hand, there is concentration risk on forward transactions, entered into by the Fund as the Fund’s interbank market maker, is the sole counterparty. The Fund has entered into a master netting agreement with its interbank market maker and, as a result, when applicable, presents unrealized gains and losses on open forward positions as a net amount in the statements of financial condition. The amount at risk associated with counterparty non-performance of all of the Fund’s contracts is the net unrealized gain included in the statements of financial condition; however, counterparty non-performance on only certain of the Fund’s contracts may result in greater loss than non-performance on all of the Fund’s contracts. There can be no assurance that any counterparty, clearing member or clearinghouse will meet its obligations to the Fund.

The Managing Owner attempts to minimize both credit and market risks by requiring the Fund and its commodity trading advisors to abide by various trading limitations and policies. The Managing Owner monitors compliance with these trading limitations and policies, which include, but are not limited to, executing and clearing all trades with creditworthy counterparties; limiting the amount of margin or premium required for any one commodity or all commodities combined; and generally limiting transactions to contracts which are traded in sufficient volume to permit the taking and liquidating of positions.

-16-

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009 ~~2008~~

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

Credit Risk ~~(Continued)~~

~~The Fund’s~~When entering into futures ~~commission~~or ~~merchant~~forward contracts (including foreign exchange), inthe ~~accepting~~Fund ~~orders~~is ~~for~~exposed to credit risk that the counterparty ~~purchase~~to orthe ~~sale~~contract ofwill ~~domestic~~not meet its obligations. The counterparty for futures contracts, traded on United States and most foreign futures exchanges is ~~required~~the byclearinghouse ~~CFTC~~associated ~~regulations~~with tothe ~~separately~~particular ~~account~~exchange. ~~for~~In ~~and~~general, ~~segregate~~clearinghouses are asbacked ~~belonging~~by their corporate members who are required to share any financial burden resulting from the ~~Fund~~non-performance ~~all~~by ~~assets~~one of their members and, as such, should significantly reduce this credit risk. In cases where the ~~Fund~~clearinghouse ~~relating~~is tonot ~~domestic~~backed ~~futures~~by ~~trading~~the ~~and~~clearing members (i.e., some foreign exchanges), it is ~~not~~normally ~~allowed~~backed toby ~~commingle~~a ~~such~~consortium ~~assets~~of ~~with~~banks ~~its~~or other ~~assets~~financial institutions. AtOn ~~December 31~~the other hand, ~~2008~~there ~~and~~is ~~2007~~concentration risk on forward transactions, ~~such~~entered ~~segregated~~into ~~assets~~by ~~totaled~~the $3Fund as the Fund’s interbank market maker,~~796,610~~ is the sole counterparty. The Fund has entered into a master netting agreement with its interbank market maker and, $1as a result,~~516~~ when applicable,~~901,~~ ~~respectively~~presents ~~which~~unrealized ~~are~~gains ~~included~~and inlosses ~~cash~~on ~~and~~open ~~cash~~forward positions as a ~~equivalents~~net onamount in the statements of financial condition. ~~Part~~The ~~30.7~~amount ofat ~~the~~risk ~~CFTC~~associated ~~regulations~~with ~~also~~counterparty ~~requires~~non-performance of all of the Fund’s ~~futures~~contracts ~~commission~~is ~~merchant~~the tonet ~~secure~~unrealized ~~assets~~gain included in the statements of financial condition; however, counterparty non-performance on only certain of the Fund’s ~~related~~contracts tomay ~~foreign~~result ~~futures~~in ~~trading~~greater ~~which~~loss ~~totaled~~than ~~$234,481~~non-performance ~~and~~on ~~$203,490~~all ~~at December 31,~~of ~~2008~~the ~~and~~Fund’s ~~2007, respectively~~contracts. There ~~are~~can be no ~~segregation~~assurance ~~requirements~~that ~~for~~any ~~assets~~counterparty, ~~related~~clearing member or clearinghouse will meet its obligations to ~~forward~~the ~~trading~~Fund.

AsThe ofManaging Owner attempts to minimize both credit and market risks by ~~December 31~~requiring the Fund and the Company to abide by various trading limitations and policies. The Managing Owner monitors compliance with these trading limitations and policies, ~~2008~~which include, but are not limited to, executing and clearing all oftrades with creditworthy counterparties; limiting the ~~Fund’s~~amount ~~open~~of ~~futures~~margin or premium required for any one commodity or all commodities combined; and generally limiting transactions to contracts ~~mature~~which ~~within~~are 36traded ~~months~~in sufficient volume to permit the taking and liquidating of positions.

~~-17-~~The Fund’s futures commission merchant, in accepting orders for the purchase or sale of domestic futures contracts, is required by CFTC regulations to separately account for and segregate as belonging to the Fund all assets of the Fund relating to domestic futures trading and is not allowed to commingle such assets with its other assets. At December 31, 2009 and 2008, such segregated assets totaled $1,521,992 and $3,796,610, respectively. Part 30.7 of the CFTC regulations also requires the Fund’s futures commission merchant to secure assets of the Fund related to foreign futures trading which totaled $99,045 and $234,481 at December 31, 2009 and 2008, respectively. There are no segregation requirements for assets related to forward trading.

47As of December 31, 2009, all of the Fund’s open futures contracts mature within thirty-six months.

-18-

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009 ~~2008~~

Note 8.

FINANCIAL HIGHLIGHTS

The following information presents per Unit operating performance data and other supplemental financial data for the years ended December 31, ~~2008~~2009, ~~2007~~2008 and ~~2006~~2007. This information has been derived from information presented in the financial statements.

	2008			2007			2006
	2009			2008			2007
Per Unit Performance
(for a Unit outstanding throughout the entire year)
Net asset value per Unit at beginning of year	$	~~120~~156.8310		$	~~103~~120.4383		$	97103.8643
Income from operations:
Income (loss) from operations:
Gain from trading (1), (3)		62.25			30.98			12.40
Gain (loss) from trading(1), (3)		(16.62	)		62.25			30.98
Net investment loss (1), (3), (5)		(26.98	)		(13.58	)		(6.83	)
Net investment loss(1), (3), (5)		(19.02	)		(26.98	)		(13.58	)
Total income from operations		35.27			17.40			5.57
Total income (loss) from operations		(35.64	)		35.27			17.40
Net asset value per Unit at end of year	$	~~156~~120.1046		$	~~120~~156.8310		$	~~103~~120.4383
Total Return		29(22.1983	)%		1629.8219	%		516.7082	%
Supplemental Data
Ratios to average net asset value :(3)
Ratios to average net asset value:(3)
Expenses prior to incentive fees (2)		13.03	%		12.68	%		10.76	%
Expenses prior to incentive fees(2)		13.95	%		13.03	%		12.68	%
Incentive fees (4)		9.10	%		4.95	%		1.36	%
Incentive fees(4)		0.00	%		9.10	%		4.95	%
Total expenses		~~22.~~13.95	%		1722.6313	%		1217.1263	%
Net investment loss (5)		(19.93	)%		(12.66	)%		(7.04	)%
Net investment loss(5)		(13.59	)%		(19.93	)%		(12.66	)%
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)~~Total ~~The~~returns ~~net~~are ~~investment loss per Unit is~~ calculated bybased ~~dividing~~on the ~~net~~change ~~investment~~in ~~loss~~value ~~by the average number~~ of ~~Units~~a ~~outstanding~~Unit during the year. ~~The~~An individual ~~gain~~Unitholder’s ~~from~~total ~~trading~~returns isand aratios ~~balancing~~may ~~amount~~vary ~~necessary~~from ~~to reconcile~~ the ~~change~~above intotal ~~net~~returns ~~asset~~and ~~value~~ratios ~~per~~based ~~Unit~~on ~~with~~ the ~~other~~timing ~~per~~of ~~Unit information~~redemptions.

⁽¹⁾

The net investment loss per Unit is calculated by dividing the net investment loss by the weighted average number of Units outstanding during the year. The gain (loss) from trading is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per Unit information.

⁽²⁾

Excludes advisor profit shares and Managing Owner incentive fees.

(3) Includes the Fund’s proportionate share of income and expenses offrom ~~WCM~~KMP ~~Pool~~Futures Fund I LLC for the nine months ended September 30, 2009 and for the years ended December 31, 2008 and 2007.

(4) Incentive fees include advisor profit shares and Managing Owner incentive fees, if applicable.

⁽⁵⁾

Represents interest income less total expenses (inclusive of incentive fees).

~~-18-~~Note 9. SUBSEQUENT EVENTS

48From January 1, 2010 through March 23, 2010, there were redemptions of $31,237.

KENMAR GLOBAL TRUST

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2008

Note 9. Subsequent Event

-19-

4954

SECTION II

5055

~~WCM~~KMP ~~POOL~~FUTURES FUND I LLC

~~FINANCIAL~~(formerly ~~STATEMENTS~~known as WCM POOL LLC)

~~December 31,~~ANNUAL ~~2008~~ REPORT

51December 31, 2009

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Members of

~~WCM~~KMP ~~Pool~~Futures ~~LLC~~Fund I LLC

We have audited the accompanying statements of financial condition, including the condensed schedules of investments, of KMP Futures Fund I LLC (formerly known as WCM Pool LLC) (the “Company”) as of December 31, ~~2008~~2009 and ~~2007~~2008, and the related statements of operations and changes in members’ capital (net asset value) and the financial highlights for each of the three years in the period ended December 31, ~~2008 and 2007~~2009. These financial statements and the financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Company is not required to have, nor were we engaged to perform, anaudits ~~audit~~ of the Company’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. 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 and financial highlights referred to above present fairly, in all material respects, the financial position of KMP Futures Fund I LLC (formerly known as WCM Pool LLC) at December 31, ~~2008~~2009 and ~~2007~~2008, and the results of its operations and changes in its members’ capital (net asset value) and the financial highlights for each of the three years in the period ended December 31, ~~2008 and 2007~~2009, in conformity with accounting principles generally accepted in the United States of America.

Eisner LLP

New York, New York

March 25 23, ~~2009~~ 2010

~~WCM~~KMP ~~POOL~~FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

STATEMENTS OF FINANCIAL CONDITION

December 31, ~~2008~~2009 and ~~2007~~2008

	2008		2007
	2009		2008
ASSETS
Cash and cash equivalents (See Note 2)	$	1923,~~431~~723,~~990~~816	$	2019,~~525~~431,~~950~~990
Interest receivable		~~479~~54		~~47,642~~479
Net unrealized gain on open futures contracts		269,887		434,983
Commodity options owned, at fair value (premiumspaid $300 and $0 at December 31, 2009and 2008, respectively)		60		0
Total assets	$	19,702,356	$	21,008,575
Net unrealized gain on open futures contracts		105,410		269,887
Total assets	$	23,829,340	$	19,702,356
LIABILITIES
Accrued expenses	$	38,738	$	33,955
Commodity options written, at fair value (premiumsreceived $600 and $0 at December 31, 2009and 2008, respectively)	$	120	$	0
Management fees payable		66,550		70,084
Accrued expenses payable		135,558		38,738
Incentive fees payable		100,116		174,235
Management fees payable		39,943		66,550
Redemptions payable		3,367,541		580,258
Incentive fees payable		0		100,116
Total liabilities		3,572,945		858,532
Redemptions payable (includes $23,047,803 to beconverted to individual membership)		23,653,719		3,367,541
Total liabilities		23,829,340		3,572,945
MEMBERS’ CAPITAL (Net Asset Value)
Member DFF LP		0		3,165,178
Member DFT I		0		11,561,900
Member DFT I		11,561,900		11,055,308
Member KGT		0		638,493
Member KGT		638,493		1,732,978
Member FST		0		3,929,018
Member FST		3,929,018		4,196,579
Total members’ capital (Net Asset Value)		0		16,129,411
Total members’ capital (Net Asset Value)		16,129,411		20,150,043
Total liabilities and members’ capital	$	23,829,340	$	19,702,356
Total liabilities and members’ capital	$	19,702,356	$	21,008,575

See accompanying notes.

-23-

5358

~~WCM~~KMP ~~POOL~~FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

CONDENSED SCHEDULES OF INVESTMENTS

December 31, ~~2008~~2009 and ~~2007~~2008

	2008					2007
	2009					2008
	NetUnrealizedGain (Loss)as a % ofMembers’ Capital		NetUnrealizedGain (Loss)			NetUnrealizedGain (Loss)as a % ofMembers’ Capital		NetUnrealizedGain (Loss)
	NetUnrealizedGain (Loss)as a % ofMembers’ Capital*		NetUnrealized Gain (Loss)			NetUnrealizedGain (Loss)as a % ofMembers’ Capital*		NetUnrealized Gain (Loss)
Futures Contracts
Futures contracts purchased:
Commodities	0.0054	%	$	32127,366		10.8200	%	$	~~367,154~~32
Currencies	(0.2036	)%		31(85,~~725~~037	)	(0.2416	)%		~~(49~~31,~~036~~725	)
Interest rates	20.3201	%		~~375~~1,~~048~~441		01.5791	%		~~115~~375,~~021~~048
Stock indices	0.00	%		0		0.09	%		17,163
Stock indicies	0.50	%		119,001		0.00	%		0
Net unrealized gain on futures contracts purchased	20.5269	%		~~406~~162,~~805~~771		2.2407	%		~~450~~406,~~302~~805
Futures contracts sold:
Commodities	(0.2723	)%		(4353,~~517~~262	)	(0.0122	)%		(143,~~873~~517	)
Currencies	(0.5802	)%		(924,~~971~~080	)	(0.0548	)%		(992,~~014~~971	)
Interest rates	0.00	%		~~(833~~1,120	)	(0.0401	)%		(~~8,288~~833	)
Stock indices	0.00	%		~~403~~(1,139	)	0.0200	%		~~3,856~~403
Net unrealized loss on futures contracts sold	(0.8525	)%		(~~136~~57,~~918~~361	)	(0.0871	)%		(15136,~~319~~918	)
Net unrealized gain on open futures contracts	10.6744	%	$	~~269~~105,~~887~~410		21.1636	%	$	~~434~~269,~~983~~887
	Fair Valueas a % ofMembers’ Capital*		FairValue			Fair Valueas a % ofMembers’ Capital*		FairValue
Purchased Options on Futures Contracts:
Fair value on options purchased	0.00	%	$	60		0.00	%	$	0
Commodity options owned, at fair value (premiumspaid $300 and $0 at December 31, 2009and 2008, respectively)	0.00	%	$	60		0.00	%	$	0
Written Options on Futures Contracts:
Fair value on options written	0.00	%	$	(120	)	0.00	%	$	0
Commodity options written, at fair value (premiumsreceived $600 and $0 at December 31, 2009and 2008, respectively)	0.00	%	$	(120	)	0.00	%	$	0

*	Includes redemptions payable at December 31, 2009 and 2008

See accompanying notes.

-34-

5459

~~WCM~~KMP ~~POOL~~FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

STATEMENTS OF OPERATIONS

For the Years Ended December 31, 2009, 2008 and 2007

	2008			2007
	2009			2008			2007
REVENUES
Realized	$	4(1,~~820~~358,~~038~~507	)	$	24,~~899~~820,~~882~~038		$	2,899,882
Change in unrealized		(~~165~~164,~~096~~237	)		~~434~~(165,~~983~~096	)		434,983
Interest income		~~241~~1,~~413~~611			~~804~~241,~~211~~413			804,211
Total revenues		4,896,355			4,139,076
Total revenues (losses)		(1,521,133	)		4,896,355			4,139,076
EXPENSES
Brokerage commissions		3137,~~212~~318			7931,~~343~~212			79,343
Management fees		~~409~~490,~~728~~573			~~414~~409,~~865~~728			414,865
Incentive fees		~~830,827~~593			~~562~~830,~~491~~827			562,491
Operating expenses		~~141~~361,~~244~~860			~~101~~141,~~748~~244			101,748
Total expenses		1890,~~413,011~~344			1,~~158~~413,~~447~~011			1,158,447
NET INCOME	$	3,483,344		$	2,980,629
NET INCOME (LOSS)	$	(2,411,477	)	$	3,483,344		$	2,980,629

See accompanying notes.

-45-

5560

~~WCM~~KMP ~~POOL~~FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL (NET ASSET VALUE)

For the Years Ended December 31, 2009, 2008 and 2007

	Members’ Capital
	MemberDFF LP			MemberDFT I			MemberKGT			MemberFST			~~Total~~MemberSeries D			MemberSeries F			Total
Balances atJanuary 1, 2007	$	0		$	0		$	0		$	0		$	0		$	0		$	0
Additions		3,636,165			12,966,087			2,143,975			5,002,950			~~23,749,177~~0			0			23,749,177
Redemptions		(888,949	)		(3,353,004	)		(654,816	)		(1,682,994	)		~~(6,579,763~~0	)		0			(6,579,763	)
Net income for the year endedDecember 31, 2007		417,962			1,442,225			243,819			876,623			2,980,629
Net income for the year ended December 31, 2007		417,962			1,442,225			243,819			876,623			0			0			2,980,629
Balances atDecember 31, 2007		3,165,178			11,055,308			1,732,978			4,196,579			~~20,150,043~~0			0			20,150,043
Redemptions		(3,720,425	)		(1,479,113	)		(1,319,164	)		(985,274	)		~~(7,503,976~~0	)		0			(7,503,976	)
Net income for the year endedDecember 31, 2008		555,247			1,985,705			224,679			717,713			3,483,344
Net income for the yearended December 31, 2008		555,247			1,985,705			224,679			717,713			0			0			3,483,344
Balances atDecember 31, 2008	$	0		$	11,561,900		$	638,493		$	3,929,018		$	~~16,129,411~~0			0			16,129,411
Additions		0			0			0			0			4,887,000			14,195,000			19,082,000
Redemptions		0			(10,687,773	)		(608,162	)		(3,637,180	)		(4,567,072	)		(13,299,747	)		(32,799,934	)
Net loss for the yearended December 31, 2009		0			(874,127	)		(30,331	)		(291,838	)		(319,928	)		(895,253	)		(2,411,477	)
Balances atDecember 31, 2009	$	0		$	0		$	0		$	0		$	0		$	0		$	0

See accompanying notes.

-56-

5661

~~WCM~~KMP ~~POOL~~FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

NOTES TO FINANCIAL STATEMENTS

December 31, ~~2008~~2009

Note 1.

ORGANIZATION

General Description of the Company

KMP Futures Fund I LLC, formerly known as WCM Pool LLC (the “Company”) prior to its change in name effective November 2, 2009, is a limited liability company organized under the laws of Delaware on November 20, 2006 ~~and~~which commenced operations on January 1, 2007. The Company will terminate on December 31, 2056 unless terminated sooner under the provisions of the Organization Agreement. The Company was formed to engage in the speculative trading of a diversified portfolio of futures contracts, options on futures contracts and forward currency contracts and may, from time to time, engage in cash and spot transactions. ~~Preferred~~The ~~Investment~~fiscal ~~Solutions Corp. (“Preferred”) has been delegated administrative authority over the operations of the Company. As of December 31, 2008, the Company consists of three~~year ~~members:~~end Diversified Futures Trust I (“Member DFT I”), Futures Strategic Trust (“Member FST”) and Kenmar Global Trust (“Member KGT”) (collectively, the “Members”). Diversified Futures Fund L.P. (“Member DFF LP”) redeemed all of ~~its membership interests in~~ the Company ~~and~~is ~~terminated its fund operations as of~~ December 31~~, 2008~~. Member DFT I, Member KGT and Member DFF LP contributed their net assets to the Company effective January 1, 2007, while Member FST invested in the Company on April 1, 2007. Preferred is also the Managing Owner of each of the Members. Upon making the initial capital contribution, each Member received Voting Membership Interests.

~~The~~Effective ~~Company~~May 5, 2009, isPreferred aInvestment Solutions Corp. changed its name to Kenmar Preferred Investments Corp. (“Preferred” or “Managing Member~~-managed~~”). ~~limited~~Preferred ~~liability~~refers ~~company~~to ~~that~~either isPreferred ~~not~~Investment ~~registered~~Solutions inCorp. ~~any~~or ~~capacity~~Kenmar ~~with~~Preferred Investments Corp., ordepending ~~subject~~on ~~directly~~the toapplicable ~~regulation~~period ~~by,~~discussed. Preferred is the ~~Commodity~~managing ~~Futures~~owner ~~Trading~~of ~~Commission~~each ~~(“CFTC”)~~of orthe Company’s members, is the ~~United~~Managing ~~States~~Member ~~Securities~~of the Company, and ~~Exchange~~has ~~Commission~~been delegated administrative authority over the operations of the Company.

Going into December 31, 2009, the Company consisted of four members: Diversified Futures Trust I (“Member DFT I”), Futures Strategic Trust (“Member FST”), World Monitor Trust II Series D (“Member Series D”) and World Monitor Trust II Series F (“Member Series F”) (collectively, the “Members”). On April 1, 2009, Member Series D and Member Series F received a voting membership interest in the Company. Member DFT I and Member FST have been members of the Company since 2007. Diversified Futures Fund L.P. (“Member DFF LP”), also a member of the Company beginning in 2007, redeemed all of its membership interests in the Company and terminated its fund operations as of December 31, 2008. Kenmar Global Trust (“Member KGT”) was a member of the Company from 2007 to September 2009. Effective September 30, 2009, Member KGT fully redeemed from the Company.

On November 2, 2009, pursuant to each Member’s Trust Agreement, the managing owner of the Members determined to dissolve the Members effective close of business on December 31, 2009. Preferred also converted the Company from an aggregated trading vehicle to a direct investment vehicle and filed with the Securities Exchange Commission (“SEC”) to register the Company. Investors in the Members who elected not to redeem their Interest at December 31, 2009 will receive a pro rata distribution of their Interest in the Company on December 31, 2009 and replace it with a direct ownership Interest in the Company beginning January 1, 2010. Each Member filed with the SEC on January 5, 2010 to de-register its Interests under Section 12(g) of the Securities Exchange Act of 1934. The Members will no longer be subject to the reporting requirements of the SEC and Commodity Futures Trading Commission (“CFTC”) upon their dissolution on December 31, 2009.

-7-

KMP FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009

Note 1.

ORGANIZATION (CONTINUED)

General Description of the Company (Continued)

Upon effectiveness of its registration statement with the SEC, the Company will become a reporting company pursuant to the Securities Exchange Act of 1934. Moreover, as a commodity pool, the Company will become subject to the record keeping and reporting requirements of the CFTC and the National Futures Association (“NFA”).

The Trading Advisor

The Company ~~entered~~operates ~~into~~under an advisory agreement with Winton Capital Management Limited (the “Trading Advisor”) to make the trading decisions for the Company. The Trading Advisor manages approximately 100% of the assets of the Company pursuant to its Diversified Program Portfolio.

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America, ~~which~~(“U.S. ~~require~~GAAP”). ~~the~~Such ~~Managing~~principles ~~Member~~require Preferred to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Commodity futures and foreign exchange transactions are reflected in the accompanying ~~statement~~statements of financial condition on athe trade date ~~basis~~. Net unrealized gain or loss on open contracts (the difference between contract trade price and market price) isare offset when reflected in the financial statements insince ~~accordance~~the ~~with~~contracts ~~Financial~~are ~~Accounting~~executed ~~Standards~~with ~~Board~~the ~~(“FASB”)~~same ~~Interpretation No. 39~~counter -party ~~“Offsetting~~under ofa ~~Amounts~~master ~~Related~~netting ~~to Certain Contracts~~arrangement.” The market value of futures (exchange-traded) contracts is based upon the closing quotation on the various futures exchanges on which the contract is traded. The values which will be used by the Company for open forward and option positions will be provided by its administrator, who obtains market quotes from data vendors and third parties. Any change in net unrealized gain or loss during the current period is reported in the statement of operations. Realized gains and losses on transactions are recognized in the period in which the contracts are closed. Brokerage commissions include other trading fees and are charged to expense when incurred.

-68-

5763

~~WCM~~KMP ~~POOL~~FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, ~~2008~~2009

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting (Continued)

~~Any~~The ~~change~~Company inhas ~~net unrealized~~elected ~~gain~~not orto ~~loss~~provide ~~during~~a ~~the~~Statement ~~current~~of ~~period~~Cash isFlows ~~reported~~since insubstantially ~~the~~all ~~statement~~ of ~~operations.~~the ~~Realized~~Company’s ~~gains~~investments are ~~and~~highly ~~losses~~liquid onand ~~transactions~~carried ~~are~~at ~~recognized~~fair invalue, the ~~period~~Company inhas ~~which~~little ~~the~~or ~~contracts~~no ~~are~~debt ~~closed.~~and ~~Brokerage~~a ~~commissions~~statement ~~include~~of ~~other~~changes ~~trading~~in ~~fees and~~members’ ~~are~~capital ~~charged~~(net toasset ~~expense~~value) ~~when~~is ~~incurred~~provided.

~~The~~Consistent with standard business practices in the normal course of business, the Company has ~~elected~~provided ~~not~~general indemnifications to ~~provide~~Preferred, aits ~~Statement~~Trading ofAdvisor ~~Cash~~and ~~Flows~~others aswhen ~~permitted~~they act, byin ~~Statement~~good ~~of Financial~~faith, ~~Accounting~~in ~~Standards~~the ~~(“SFAS”)~~best Nointerests of the Company. ~~102,~~ ~~“Statement~~The ofCompany ~~Cash~~is ~~Flows~~unable -to ~~Exemption~~develop an estimate of ~~Certain~~the ~~Enterprises~~maximum ~~and~~potential ~~Classification~~amount of ~~Cash~~future ~~Flows~~payments that could potentially result from ~~Certain~~any ~~Securities~~hypothetical ~~Acquired~~future ~~for~~claim, ~~Resale~~but expects the risk of having to make any payments under these general business indemnifications to be remote.”

~~Consistent~~The ~~with~~Company ~~standard~~accounts for ~~business~~financial ~~practices~~assets inand ~~the~~liabilities ~~normal~~using ~~course~~a offair ~~business,~~value ~~the~~hierarchy ~~Company~~that ~~has~~prioritizes ~~provided~~the ~~general~~inputs ~~indemnifications~~ to ~~its~~valuation ~~Trading~~techniques ~~Advisor~~used ~~and others~~to ~~when~~measure ~~they~~fair ~~act,~~value ininto ~~good~~three ~~faith,~~levels: inquoted ~~the~~market ~~best~~prices ~~interests~~in ofactive ~~the~~markets ~~Company.~~for ~~The~~identical ~~Company~~assets isand ~~unable~~liabilities to(Level 1), ~~develop~~inputs another ~~estimate~~than ofquoted ~~the~~market ~~maximum~~prices ~~potential amount of future payments~~ that ~~could~~are ~~potentially~~observable ~~result~~for ~~from~~the ~~any~~asset ~~hypothetical~~or ~~future claim~~liability, ~~but~~either ~~expects the~~directly ~~risk~~or ofindirectly ~~having~~(Level to2), ~~make~~and ~~any~~unobservable ~~payments~~inputs ~~under~~for ~~these~~the ~~general~~asset ~~business~~or ~~indemnifications~~liability to(Level ~~be remote~~3).

InThe ~~July~~Company ~~2006,~~considers ~~the~~prices ~~FASB issued FASB Interpretation (“FIN”) No. 48, “Accounting~~ for ~~Uncertainty~~exchange intraded ~~Income~~commodity ~~Taxes~~futures -and anoptions ~~interpretation~~contracts ofto ~~FASB~~be ~~Statement~~based ~~No. 109”~~on ~~(“FIN~~quoted ~~48”),~~prices ~~which clarifies the accounting for uncertainty~~ in ~~tax~~ ~~positions.~~active ~~FIN~~markets 48for ~~requires~~identical ~~that~~assets ~~the~~(Level ~~Company~~1). ~~recognize~~The invalues ~~its financial statements, the impact~~ of ~~a tax position if that position is more likely than not of being sustained on audit~~forwards, ~~based~~swaps onand ~~the~~certain ~~technical~~options ~~merits~~contracts ~~of the position. The provisions of FIN 48 were effective~~ for ~~fiscal~~which ~~years~~market ~~beginning~~quotations ~~after~~are ~~December 15,~~not ~~2006,~~readily ~~with~~available ~~the~~are ~~cumulative~~priced ~~effect~~by ofthird-party ~~the~~data ~~change~~providers insuch ~~accounting principle recorded~~ as anBloomberg, ~~adjustment to opening retained earnings. In connection with the adoption of FIN 48~~Reuters, ~~the Company has elected an accounting policy to classify interest~~ and ~~penalties related to unrecognized tax benefits as interest~~ or ~~other~~Super Derivatives ~~expense.~~who ~~All~~derive ~~tax~~fair ~~years~~values ~~which~~for ~~are~~those ~~statutorily~~assets ~~open~~from ~~are~~models ~~subject~~with toobservable ~~examination~~inputs by(Level ~~the appropriate taxing authorities~~2). ~~Preferred,~~ ~~evaluated~~There ~~the~~are ~~impact~~no ofLevel ~~adopting~~3 ~~FIN~~investments 48 on ~~the Company’s financial statements. The adoption of FIN 48 had no material impact on the Company~~December 31, 2009 asor ~~the Company’s tax positions are based on established tax precedence for the tax treatment of investment partnerships as flow-through tax entities~~2008.

In-9- September 2006, the FASB issued SFAS No. 157 (“SFAS 157”), “Fair Value Measurements”. SFAS 157 requires use of a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels: quoted market prices in active markets for identical assets and liabilities (Level 1), inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly (Level 2), and unobservable inputs for the asset or liability (Level 3). SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007.

~~-7-~~64

~~WCM~~KMP ~~POOL~~FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, ~~2008~~2009

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting (Continued)

The ~~Company~~following ~~adopted~~table ~~SFAS 157~~summarizes in the ~~first~~assets ~~quarter~~and ofliabilities ~~2008.~~measured ~~The adoption of SFAS 157 had no impact on the investments required to be carried~~ at fair value in these financial statements. The Company considers prices for exchange traded commodity futures and options contracts to be based on quoted prices in active markets for identical assets (Level 1). The values of forwards, swaps and certain option contracts for which market quotations are not readily available are priced by third party data providers such as Bloomberg, Reuters, and or Super Derivatives who derive fair values for those assets from models with observable inputs (Level 2). There are no Level 3 investments on December 31, 2008 or 2007 using the fair value hierarchy: ~~of SFAS 157.~~

The following table summarizes the assets and liabilities measured at fair value using the fair value hierarchy of SFAS 157:


December 31, 2009	Level 1		Level 2			Level 3		Total
Assets:
Net unrealized gain on open futures contracts	$	105,410	$	0		$	0	$	105,410
Commodity options owned, at fair value	$	0	$	60		$	0	$	60
Liabilities:
Commodity options written, at fair value	$	0	$	(120	)	$	0	$	(120	)

December 31, 2008	Level 1		Level 2			Level 3		Total
Assets:
Net unrealized gain on open futures contracts	$	269,887	$	0		$	0	$	269,887

December 31, 2008	Level 1		Level 2		Level 3		Total
Assets:
Net unrealized gain on open futures contracts	$	269,887	$	0	$	0	$	269,887
December 31, 2007	Level 1		Level 2		Level 3		Total
Assets:
Net unrealized gain on open futures contracts	$	434,983	$	0	$	0	$	434,983

Recent Accounting Pronouncements

In ~~October~~April ~~2008~~2009, the ~~FASB~~Financial ~~issued~~Accounting ~~FASB~~Standards ~~Staff~~Board ~~Position FAS 157-3,~~ (“~~Determining~~FASB”) ~~the~~issued ~~Fair~~accounting ~~Value of~~guidance aclarifying ~~Financial Asset When~~ the ~~Market~~application ~~for~~of ~~That~~Accounting ~~Asset~~Standards IsCodification ~~Not Active”~~ (“~~FSP~~ASC” ~~FAS 157-3~~or “Codification”). ~~FSP~~Topic ~~FAS~~820, ~~157-3~~“Fair ~~clarified~~Value ~~the~~Measurements ~~application~~and ~~of SFAS 157~~Disclosures.” ~~FSP~~The ~~FAS~~additional ~~157-3~~guidance ~~demonstrated~~provides for how the fair value of a financial asset or liability is determined when the ~~market~~volume and level of activity for the asset or liability have significantly decreased and on identifying circumstances that ~~financial~~indicate ~~asset~~a transaction is ~~inactive~~not orderly. ~~FSP~~The ~~FAS~~guidance ~~157-3~~ was effective ~~upon~~for ~~issuance,~~interim ~~including~~and ~~prior~~annual periods after June 15, 2009, with early adoption permitted for periods ~~which~~ending ~~financial~~after ~~statements~~March 15, ~~had~~2009, ~~not~~and ~~been~~is ~~issued~~to be applied prospectively. ~~Preferred,~~The ~~evaluated~~Company adopted the ~~impact~~guidance ofeffective ~~adopting~~January 1, ~~FSP~~2009. ~~157-3~~As onrequired, the Company’s also adopted guidance relating to recognition and presentation of ~~financial~~other-than-temporary ~~statements~~impairments, effective January 1, 2009. The adoption of ~~this~~these ~~standard~~pronouncements did not have an impact on the Company’s financial statements.

In ~~February~~March ~~2007~~2008, the FASB issued ~~SFAS~~accounting ~~No. 159~~guidance ~~(“SFAS~~which ~~159”),~~established ~~“The~~among ~~Fair~~other ~~Value~~things, ~~Option~~the disclosure requirements for ~~Financial~~derivative ~~Assets~~instruments and ~~Financial~~for ~~Liabilities”,~~hedging ~~including an amendment of SFAS 115~~activities. ~~This~~The guidance ~~statement~~is ~~provides~~effective ~~companies~~for ~~with an option to report selected~~ financial ~~assets~~statements ~~and~~issued ~~liabilities at fair value. This statement is effective~~ for fiscal years and interim periods beginning after November 15, ~~2007 with early adoption permitted~~2008. ~~Preferred,~~The ~~evaluated~~Company adopted the ~~impact~~guidance ofeffective ~~adopting~~January 1, ~~SFAS~~2009. ~~159~~The ~~and~~following ~~its~~table ~~impact~~summarizes onquantitative ~~Company’s~~information ~~financial~~required ~~statements~~by the guidance.

The ~~Company~~fair ~~adopted~~value ~~SFAS~~of ~~159 during~~ the ~~first~~Company’s ~~quarter~~derivatives ofby ~~2008~~instrument type, as ~~and~~well itas ~~did~~the ~~not~~location ~~have~~of athose ~~material~~instruments ~~effect~~ on the ~~Company’s~~statement of financial ~~statements,~~condition as ~~the~~of ~~Company~~December 31, ~~did~~2009 ~~not~~are ~~elect~~included in the ~~fair~~condensed ~~value~~schedule ~~option~~of ~~for~~investments, ~~any~~all ~~eligible~~of ~~financial~~which ~~assets~~are ordeemed ~~liabilities~~derivatives not designated as hedging instruments under ASC Topic 815, “Derivatives and Hedging.”

-810-

5965

~~WCM~~KMP ~~POOL~~FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, ~~2008~~2009

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

AB. ~~Basis~~Recent of Accounting Pronouncements (Continued)

InThe ~~April~~trading ~~2007,~~revenue ~~the FASB released FASB Staff Position FIN No. 39-1 “Offsetting~~ of ~~Amounts~~the ~~Related~~Company’s toderivatives ~~Certain~~by ~~Contracts”~~instrument ~~(“FSP~~type, ~~FIN~~as ~~39-1”).~~well ~~FSP~~as ~~FIN 39-1 requires that offsetting of assets and liabilities in~~ the ~~balance sheet is improper except~~ ~~where~~location ~~a right~~ of ~~setoff exists. The application of FSP FIN 39-1 is required for fiscal years beginning after November 15, 2007 and interim period within~~ those ~~fiscal~~gains ~~years. Preferred, evaluated the impact of adopting FSP FIN 39-1~~ and ~~its~~losses ~~impact~~ on the ~~Company’s~~statement ~~financial statements. The adoption~~ of ~~this~~operations, ~~standard~~for ~~did~~the ~~not~~year ~~have~~ended anDecember 31, ~~impact~~2009 onis ~~the~~as ~~Company’s~~follows: ~~financial statements.~~

In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities – an amendment of FASB Statement No. 133” (“SFAS 161”). SFAS 161 establishes, among other things, the disclosure requirements for derivative instruments and for hedging activities. SFAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. Preferred, evaluated the impact of adopting SFAS 161 on the Company’s financial statements. The adoption of this standard is not expected to have an impact on the Company’s financial statements.


Type of Instrument	Trading Revenue for the Year Ended December 31, 2009
Commodities contracts	$	(350,083	)
Currencies contracts		(253,143	)
Interest rate contracts		(409,170	)
Stock indices contracts		(517,936	)
Purchased options on futures contracts		(6,867	)
Written options on futures contracts		14,455

Total	$	(1,522,744	)


Line item in Statement of Operations
Realized	$	(1,358,507	)
Change in unrealized		(164,237	)

Total	$	(1,522,744	)

B.Effective ~~Cash~~for the quarter ending June 30, 2009, the Company adopted ASC Topic 855, “Subsequent Events” which provides guidance to establish general standards of accounting for and ~~Cash~~disclosures ~~Equivalents~~of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. The adoption of ASC Topic 855 did not have a material impact on the Company’s financial statements.

~~Cash~~-11- includes amounts deposited with a bank and clearing brokers, a portion of which is restricted for purposes of meeting margin requirements, which typically range from 0% to 35% of the notional amounts of the derivatives traded. As of December 31, 2008 and 2007 restricted cash totaled $670,420 and $1,726,651 respectively. The Company receives interest on all cash balances held by the bank and clearing brokers at prevailing interest rates.

C.66 ~~Income Taxes~~

The Company is treated as a partnership for Federal income tax purposes. As such, the Company is not required to provide for, or pay, any Federal or state income taxes. Income tax attributes that arise from its operations are passed directly to the Members. The Company may be subject to other state and local taxes in jurisdictions in which it operates.

D. Capital Accounts

The Company accounts for subscriptions, allocations and redemptions on a per member capital account basis.

The Company allocates profits and losses, prior to calculation of the incentive fee, for both financial and tax reporting purposes to its Members monthly on a pro rata basis based on each Member’s pro rata capital in the Company during the month. Each Member is then charged with the applicable incentive fee. Distributions (other than redemptions of capital) may be made at the sole discretion of the Members on a pro rata basis in accordance with the Members’ respective capital balances. The Company has not made and does not presently intend to make, any distributions.

-9-

~~WCM~~KMP ~~POOL~~FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, ~~2008~~2009

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

EB. ~~Foreign~~Recent ~~Currency~~Accounting ~~Transactions~~Pronouncements (Continued)

Effective July 1, 2009, the Company adopted ASC Topic 105, “Generally Accepted Accounting Principles.” ASC Topic 105 establishes the FASB Accounting Standards Codification as the source of authoritative accounting principles recognized by the FASB to be applied by non-governmental entities in the preparation of financial statements in conformity with U.S. GAAP. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants. The Codification did not change U.S. GAAP but reorganizes the existing literature into Topics. References for FASB guidance throughout this document have been updated for the Codification.

On September 30, 2009, the FASB issued Accounting Standards Update (“ASU”) No. 2009-12, Fair Value Measurements and Disclosures (Topic 820), Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent) (“ASU 2009-12”). ASU 2009-12 provides guidance on measuring the fair value of certain alternative investments, and amends ASC Topic 820 to offer investors a practical means for measuring the fair value of investments in certain entities that calculate net asset value per share and require certain disclosures. ASU 2009-12 is effective for periods ending after December 15, 2009, and early adoption is permitted. The adoption of ASU 2009-12 did not have an impact on the Company’s financial statements.

Cash and Cash Equivalents

Cash represents amounts deposited with a bank and clearing broker, a portion of which is restricted for purposes of meeting margin requirements, which typically range from 0% to 35% of the notional amounts of the derivatives traded. As of December 31, 2009 and 2008, restricted cash totaled $1,628,359 and $670,420, respectively. The Company receives interest at prevailing interest rates on all cash balances held by the clearing broker and bank.

-12-

KMP FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Income Taxes

The Company recognizes tax benefits or expenses of uncertain tax positions in the year such determination is made when the positions are “more likely than not” to be sustained assuming examination by tax authorities. The Managing Member has reviewed the Company’s tax positions for all open years (after December 31, 2006) and concluded that no provision for unrecognized tax benefits or expense is required in these financial statements. The Company has elected an accounting policy to classify interest and penalties related to unrecognized tax benefits as interest or other expense. The 2006 through 2009 tax years generally remain subject to examination by U.S. federal and most state tax authorities.

Capital Accounts

The Company accounts for subscriptions, allocations and redemptions on a per member capital account basis.

The Company allocates profits and losses, prior to calculation of the incentive fee, for both financial and tax reporting purposes to its Members monthly on a pro rata basis based on each Member’s pro rata capital in the Company during the month. Each Member is then charged with the applicable incentive fee. Distributions (other than redemptions of capital) may be made at the sole discretion of the Members on a pro rata basis in accordance with the Members’ respective capital balances. The Company has not and does not presently intend to make any distributions.

Foreign Currency Transactions

The Company’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 statements of financial condition. Income and expense items denominated in currencies other than U.S. dollars 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 operations currently under the caption realized in the statements of operations.

FG. Interest Income

Interest income is recorded on an accrual basis.

~~Note 3~~H. ~~FEES~~Redemptions Payable

For purposes of both financial reporting and calculation of redemption value, Net Asset Value is calculated per each member’s capital account balance after allocations of net income (loss) to such member’s account.

-13-

KMP FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009

Note 3.

FEES (SEE NOTE 10)

Operating Expenses

Operating expenses of the Company are paid for by the Company.

Management and Incentive Fees

The Company ~~accrues and~~ pays the Trading Advisor a management fee at an annual rate of 2% of the Company’s Net Assets determined as of the close of business each month. For purposes of determining the management fee, any distributions, redemptions or reallocation of assets made as of the last day of the month shall be added back to the assets and there shall be no reduction for (i) the management fees calculated or (ii) any accrued but unpaid incentive fees due the Trading Advisor.

Additionally, the Company pays the Trading Advisor a quarterly incentive fee of 20% (the “Incentive Fee”) of “New High Net Trading Profits” (as defined in the Advisory Agreement). For the years ended December 31, 2009, 2008 and 2007, the Trading Advisor earned incentive fees of $593, $830,827 and $562,491, respectively, of which $~~100,116~~0 and $~~174~~100,~~235~~116 ~~remains~~remained payable at December 31, ~~2008~~2009 and ~~2007~~2008, respectively.

Commissions

The Company is obligated to pay all floor brokerage expenses, give-up charges and National Futures Association clearing and exchange fees incurred in connection with the Company’s commodity trading activities.

Note 4.

RELATED PARTIES

The Company reimburses Preferred for services it performs for the Company, which include, but are not limited to: management, accounting, printing, and other administrative services.

The expenses incurred by the Company for services performed by Preferred for the Company for the years ended December 31, 2009, 2008 and 2007 were:

	2008		2007
	2009		2008		2007
General and administrative	$	2471,~~350~~528	$	024,350	$	0

~~-10-~~Expenses payable to Preferred and its affiliates (which are included in accrued expenses payable on the statements of financial condition) as of December 31, 2009 and 2008 were $28,601 and $7,480, respectively.

WCM POOL LLC

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2008

Note 4. RELATED PARTIES (CONTINUED)

Expenses payable to Preferred and its affiliates as of December 31, 2008 and 2007 were $7,480, and $0, respectively which are included in accrued expenses on the statement of financial condition.

Note 5.

INCOME TAXES

There have been no differences between the tax basis and book basis of assets, liabilities or members’ capital since inception of the Company.

-14-

KMP FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009

Note 6.

DEPOSITS WITH COMMODITY BROKER, PRIME BROKER AND BANK

The Company deposits funds with a commodity broker subject to CFTC regulations and various exchange and commodity broker requirements. Margin requirements are satisfied by the deposit of cash with such commodity broker. The Company earns interest income on assets deposited with the commodity broker. The Company also deposits funds with a prime broker. Margin requirements are satisfied by the deposit of cash with such prime broker. The Company earns interest income on assets deposited with its prime broker. The Company also earns interest on funds deposited with JPMorgan Chase Bank, Nassau branch.

The Company also deposits funds with a prime broker. Margin requirements are satisfied by the deposit of cash with such prime broker. The Company earns interest income on assets deposited with its prime broker. The Company also earns interest on funds deposited with JP Morgan Chase Bank Nassau branch.

Note 7.

SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS

~~Investments~~Through December 31, 2009, investments in the Company ~~are~~were made subject to the terms of the Organization Agreement.

The Company iswas not required to make distributions, but could do so at the discretion of the Members. A Member ~~can~~was able to request and receive redemption of capital, subject to the terms in the Organization Agreement.

Note 8.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

The Company has cash on deposit with financial institutions. In the event of a financial institution’s insolvency, recovery of cash on deposit may be limited to account insurance or other protection afforded such deposits.

The Company is exposed to various types of risks associated with the derivative instruments and related markets in which it invests. These risks include, but are not limited to, risk of loss from fluctuations in the value of derivative instruments held (market risk) and the inability of counterparties to perform under the terms of the Company’s investment activities (credit risk).

~~-11-~~Market Risk

62Trading in futures and forward contracts (including foreign exchange) involves entering into contractual commitments to purchase or sell a particular commodity at a specified date and price. The gross or face amount of the contracts, which is typically many times that of the Company’s net assets being traded, significantly exceeds the Company’s future cash requirements since the Company intends to close out its open positions prior to settlement. As a result, the Company is generally subject only to the risk of loss arising from the change in the value of the contracts. As such, the Company considers the “fair value” of its derivative instruments to be the net unrealized gain or loss on the contracts.

-15-

~~WCM~~KMP ~~POOL~~FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, ~~2008~~2009

Note 8.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

Market Risk (Continued)

~~Trading~~The ~~in futures~~market ~~and~~risk ~~forward~~associated ~~contracts~~with ~~(including~~the ~~foreign~~Company’s ~~exchange)~~commitments ~~involves~~to ~~entering~~purchase ~~into~~commodities ~~contractual~~is ~~commitments~~limited to ~~purchase~~the gross or ~~sell~~face amount aof ~~particular~~the ~~commodity~~contract atheld. However, when the Company enters into a ~~specified~~contractual ~~date~~commitment ~~and~~to ~~price.~~sell ~~The~~commodities, ~~gross~~it ormust ~~face~~make ~~amount~~delivery of the ~~contracts,~~underlying ~~which~~commodity isat ~~typically~~the ~~many times~~contract ~~that~~price ofand then repurchase the ~~Company’s~~contract ~~net~~at ~~assets~~prevailing ~~being~~market ~~traded,~~prices ~~significantly~~or settle ~~exceeds~~in cash. Since the ~~Company’s~~repurchase ~~future~~price ~~cash~~to ~~requirements~~which ~~since~~a ~~the~~commodity ~~Company~~can ~~intends~~rise tois ~~close~~unlimited, ~~out~~entering ~~its~~into ~~open~~commitments ~~positions~~to ~~prior~~sell commodities exposes the Company to ~~settlement~~unlimited risk. AsIn addition, as both a ~~result~~buyer and seller of options, the Company ispays ~~generally subject~~or ~~only~~receives toa premium at the outset and then bears the risk of ~~loss~~unfavorable ~~arising~~changes ~~from~~in the ~~change~~price inof the ~~value~~contract ofunderlying the ~~contracts~~option. AsWritten ~~such,~~options expose the Company ~~considers~~to ~~the~~potentially ~~“fair~~unlimited ~~value”~~liability, ofand ~~its~~purchased ~~derivative~~options ~~instruments~~expose ~~to be~~ the ~~net~~Company ~~unrealized~~to ~~gain~~a risk orof loss onlimited to the ~~contracts~~premiums paid.

The market risk associated with the Company’s commitments to purchase commodities is limited to the gross or face amount of the contract held. However, when the Company enters into a contractual commitment to sell commodities, it must make delivery of the underlying commodity at the contract price and then repurchase the contract at prevailing market prices or settle in cash. Since the repurchase price to which a commodity can rise is unlimited, entering into commitments to sell commodities exposes the Company to unlimited risk.

Market risk is influenced by a wide variety of factors, including government programs and policies, political and economic events, the level and volatility of interest rates, foreign currency exchange rates, the diversification effect among the derivative instruments the Company holds and the liquidity and inherent volatility of the markets in which the Company trades.

Credit Risk

When entering into futures, or forward and option contracts, the Company is exposed to credit risk that the counterparty to ~~the~~ the contract will not meet its obligations. The counterparty for futures contracts traded on United States and most foreign futures exchanges is the clearinghouse associated with the particular exchange. In general, aclearinghouses ~~clearinghouse~~are is backed by its corporate members who are required to share any financial burden resulting from the non-performance by one of their members and, as such, should significantly reduce this credit risk. In cases where the clearinghouse is not backed by the clearing members (i.e., some foreign exchanges), it is normally backed by a consortium of banks or other financial institutions. On the other hand, there is concentration risk on forward transactions entered into by the Company, as the Company’s forward broker is the sole counterparty. The Company has entered into a master netting agreement with its forward broker and, as a result, when applicable, presents unrealized gains and losses on open forward positions as a net amount in the statements of financial condition. The amount at risk associated with counterparty non-performance of all of the Company’s contracts is the net unrealized gain or loss included in the statements of financial condition; however, counterparty non-performance on only certain of the Company’s contracts may result in greater loss than non-performance on all of the Company’s contracts. There can be no assurance that any counterparty, clearing member or clearinghouse will meet its obligations to the Company.

Preferred attempts to minimize both credit and market risks by requiring the Company and its Trading Advisor to abide by various trading limitations and policies. Preferred monitors compliance with these trading limitations and policies, which include, but are not limited to, executing and clearing all trades with creditworthy counterparties; limiting the amount of margin or premium required for any one commodity or all commodities combined; and generally limiting transactions to contracts which are traded in sufficient volume to permit the taking and liquidating of positions.

-1216-

6371

~~WCM~~KMP ~~POOL~~FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, ~~2008~~2009

Note 8.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

Credit Risk (Continued)

Additionally, pursuant to the Advisory Agreement among the Company, Preferred and the Trading Advisor, the Company shall automatically terminate the Trading Agreement, if the net asset value allocated to the Trading Advisor declines by 40% from the value at the beginning of any year or since the effective date of the Advisory Agreement. The decline in net asset value is after giving effect for distributions, subscriptions and redemptions.

The Company’s futures commission merchant, in accepting orders for the purchase or sale of domestic futures contracts, is required by CFTC regulations to separately account for and segregate as belonging to the Company all assets of the Company relating to domestic futures trading and is not allowed to commingle such assets with its other assets. At December 31, ~~2008~~2009 and ~~2007~~2008, such segregated assets totaled $1219,~~595~~213,~~893~~546 and $1712,~~941~~595,~~562~~893, respectively, which are included in cash and cash equivalents on the statements of financial condition. Part 30.7 of the CFTC regulations also requires the Company’s futures commission merchant to secure assets of the Company related to foreign futures trading which totaled $1163,~~274,591~~718 and $481,~~961~~274,591 at December 31, ~~2008~~2009 and ~~2007~~2008, respectively. There are no segregation requirements for assets related to forward trading.

As of December 31, ~~2008~~2009, all open futures contracts mature within ~~eighteen~~twenty-four months.

-1317-

6472

~~WCM~~KMP ~~POOL~~FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, ~~2008~~2009

Note 9.

FINANCIAL HIGHLIGHTS

The following information presents the financial highlights of the Company for the years ended December 31, 2009, 2008 and 2007. This information has been derived from information presented in the financial statements.

	December 31, 2008								December 31, 2007
	December 31, 2009										December 31, 2008
	MemberDFF LP		MemberDFT I		MemberKGT		MemberFST		MemberDFF LP		MemberDFT I		MemberKGT		MemberFST(5)
	Member DFT I(5)		Member KGT(6)		Member FST(5)		MemberSeries D(5), (7)		MemberSeries F(5), (7)		Member DFF LP(5)		Member DFT I		Member KGT		Member FST
Total return (1), (4)
Total return(1), (4)
Total return beforeincentive fee	23(8.4403	)%	23(7.4478	)%	23(8.4403	)%	23(6.4453	)%	15(6.8453	)%	1523.8444	%	1523.8444	%	2623.1244	%	23.44	%
Incentive fee	(40.6901	)%	(40.6901	)%	(40.6901	)%	(40.6900	)%	(20.4300	)%	(24.4269	)%	(24.5169	)%	(4.9269	)%	(4.69	)%
Total return afterincentive fee	18(8.7502	)%	18(7.7577	)%	18(8.7502	)%	18(6.7553	)%	13(6.4153	)%	1318.4275	%	1318.3375	%	2118.2075	%	18.75	%
Ratios to averagenet asset values(6):
Ratios to averagenet asset values:
Expenses prior toincentive fee(2)	23.9261	%	23.9127	%	3.0660	%	23.9280	%	23.9379	%	2.92	%	2.9291	%	23.9706	%	2.92	%
Incentive fee(1)	40.1500	%	40.0907	%	40.9201	%	40.1800	%	20.2100	%	24.1815	%	24.3009	%	4.2692	%	4.18	%
Total expenses andincentive fee	73.0761	%	73.0034	%	73.9861	%	73.1080	%	53.1479	%	57.1007	%	57.2200	%	7.2398	%	7.10	%
Net investmentincome (loss) (2), (3)	(1.71	)%	(1.72	)%	(1.66	)%	(1.71	)%	1.00	%	1.01	%	1.07	%	1.05	%
Net investmentloss(2), (3)	(3.60	)%	(3.26	)%	(3.59	)%	(3.79	)%	(3.79	)%	(1.71	)%	(1.72	)%	(1.66	)%	(1.71	)%

Total returns are calculated based on the change in the value of ~~Members~~Member’ s capital during the ~~period~~ year. An individual Member’s total returns and ratios may vary from the above total returns and ratios based on the timing of additions and redemptions.

⁽¹⁾

Not annualized.

⁽²⁾

Annualized.

⁽³⁾

Represents interest income less total expenses (exclusive of incentive fee).

⁽⁴⁾

Includes realized and unrealized gains (losses) on securities transactions.

⁽⁵⁾

Member DFF LP’s ratios to average net asset values for the year ended December 31, 2008, and Members DFT I, FST, Series D and Series F’s ratios to average net asset values for the year ended December 31, 2009 were calculated prior to their liquidating redemptions from the Company.

⁽⁶⁾

Member KGT redeemed all of its membership interest in the Company as of September 30, 2009 and calculated all its ratios to average net asset values prior to its liquidating redemptions from the Company.

⁽⁷⁾

Member Series D and Member Series F contributed their net assets to the Company effective April 1, 2009.

-18-

KMP FUTURES FUND I LLC

(formerly known as WCM POOL LLC)

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2009

Note 9.

FINANCIAL HIGHLIGHTS (CONTINUED)


	December 31, 2007
	Member DFF LP		Member DFT I		Member KGT		Member FST⁽⁵⁾

Total return⁽¹⁾^{, (4)}

Total return before incentive fee	15.84	%	15.84	%	15.84	%	26.12	%
Incentive fee	(2.43	)%	(2.42	)%	(2.51	)%	(4.92	)%


Total return after incentive fee	13.41	%	13.42	%	13.33	%	21.20	%


Ratios to average net asset values:
Expenses prior to incentive fee⁽²⁾	2.93	%	2.92	%	2.92	%	2.97	%
Incentive fee⁽¹⁾	2.21	%	2.18	%	2.30	%	4.26	%


Total expenses and incentive fee	5.14	%	5.10	%	5.22	%	7.23	%


Net investment income^(2),⁽³⁾	1.00	%	1.01	%	1.07	%	1.05	%

Total returns are calculated based on the change in value of Members’ capital during the period. An individual Member’s total returns and ratios may vary from the above total returns and ratios based on the timing of additions and redemptions.

⁽¹⁾

Not annualized.

⁽²⁾

Annualized.

⁽³⁾

Represents interest income less total expenses (exclusive of incentive fee).

⁽⁴⁾

Includes realized and unrealized gains on securities transactions.

⁽⁵⁾

Member FST contributed its net assets to the Company effective April 1, 2007.

~~(6)~~-19- ~~Member DFF LP, ratios to average net asset values for the year ended December 31, 2008, were calculated prior to its liquidating redemptions from the Company.~~

~~Note~~74 ~~10. SUBSEQUENT EVENT~~

Effective April 1, 2009, World Monitor Trust II Series D and F will contribute their net assets to the Company and receive Voting Membership Interests as new Members of the Company.

-14-

~~SIGNATURES~~KMP FUTURES FUND I LLC

~~Pursuant~~(formerly toknown ~~the~~as ~~requirements~~WCM ofPOOL ~~Section 13 or 15(d~~LLC) ~~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 26th day of March, 2009.~~

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

~~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 in the capacities indicated on March~~December 2631, 2009.

KENMAR GLOBAL TRUST
By:	Preferred Investment Solutions Corp.
	Managing Owner
By:	/s/ Kenneth A. Shewer	Date: March 26, 2009
	Kenneth A. Shewer
	Co-Chief Executive Officer
	(Principal Executive Officer)
By:	/s/ David K. Spohr	Date: March 26, 2009
	David K. Spohr
	Senior Vice President and Director of Fund Administration
	(Principal Financial/Accounting Officer)

Note 10.

SUBSEQUENT EVENTS

66In connection with the change of name and change to a direct investment vehicle (See Note 1A), management and incentive fees will continue to be calculated by the Company once it converts to a direct investment vehicle. In addition, administrative services fees payable to Preferred and any expense caps, if applicable, that were previously computed by each of the Members will be calculated by the Company beginning January 1, 2010. The Company’s management fees to Preferred (previously administrative services fees) and expense cap will both be calculated on the net assets of the Company at rates of 6.00% and 1.50% per annum, respectively. Investors will continue to be able to redeem their units on a monthly basis with the proper redemption notification.

From January 1, 2010 through March 23, 2010, the Company had subscriptions received of $23,047,803 and paid redemptions of $513,870.

-20-

~~OTHER~~SIGNATURES ~~INFORMATION~~

~~The~~Pursuant ~~actual~~to ~~round~~the ~~turn~~requirements ~~equivalent~~of Section 13 or 15(d) of ~~brokerage~~the ~~commissions~~Securities ~~paid~~Exchange ~~per~~Act ~~trade~~of ~~for~~1934, the ~~year~~Registrant ~~ended~~has ~~December 31~~duly caused this report to be signed on its behalf by the undersigned, ~~2008~~thereunto ~~was~~duly $3authorized, on the 25th day of March, 2010.~~75.~~

The Trust’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission is available to Unitholders without charge upon written request to:


	KENMAR GLOBAL TRUST

By:	Kenmar Preferred Investments Corp. Managing Owner

	By: /s/ David K. Spohr	Date: March 25, 2010
	David K. Spohr
	Senior Vice President and Director of Fund Administration
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 in the capacities indicated on March 25, 2010.
	KENMAR GLOBAL TRUST

By:	Kenmar Preferred Investments Corp. Managing Owner

	By: /s/ Kenneth A. Shewer	Date: March 25, 2010
	Kenneth A. Shewer
	Co-Chief Executive Officer
	(Principal Executive Officer)

	By: /s/ David K. Spohr	Date: March 25, 2010
	David K. Spohr
	Senior Vice President and Director of Fund Administration
	(Principal Financial/Accounting Officer)

~~Kenmar~~76 ~~Global Trust~~

c/o Preferred Investment Solutions Corp

900 King Street, Suite 100

Rye Brook, NY 10573

KENMAR GLOBAL TRUST

Preferred Investment Solutions Corp.

Managing Owner

/s/ David K. Spohr

Date: March 26, 2009

David K. Spohr

Senior Vice President and Director of Fund Administration

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