UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarter ended: ~~March~~June 3130, 2010

¨	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:		0-32687

WORLD MONITOR TRUST II – SERIES E

(Exact name of registrant as specified in its charter)


Delaware		13-4058319
(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)

(914) 307-7000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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”, “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 (adas defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No x

WORLD MONITOR TRUST II – SERIES E

INDEX TO QUARTERLY REPORT ON FORM 10-Q

~~MARCH~~JUNE 3130, 2010

		Page
PART I – FINANCIAL INFORMATION		34
Item 1.	Financial Statements	45
	Condensed Statements of Financial Conditionas of March 31, 2010 (Unaudited) and December 31, 2009	5
	Condensed Statements of Financial Conditionas of June 30, 2010 (Unaudited) and December 31, 2009	6
	Condensed Schedules of Investments (Unaudited)as of March 31, 2010 and December 31, 2009	6
	Condensed Schedules of Investmentsas of June 30, 2010 (Unaudited) and December 31, 2009	7
	Condensed Statements of Operations (Unaudited)For the Three Months Ended March 31, 2010 and 2009	7
	Condensed Statements of Operations (Unaudited)For the Three Months and Six Months Ended June 30, 2010 and 2009	8
	Condensed Statements of Changes in Trust Capital (Unaudited)For the Three Months Ended March 31, 2010 and 2009	8
	Condensed Statements of Changes in Trust Capital (Unaudited)For the Six Months Ended June 30, 2010 and 2009	9
	Notes to Condensed Financial Statements (Unaudited)	910
Item 2.	Management’s Discussion and Analysis ofFinancial Condition and Results of Operations	1921
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2829
Item 4.	Controls and Procedures	2829
PART II – OTHER INFORMATION		2930
Item 1.	Legal Proceedings	2930
Item 1.A.	Risk Factors	2930
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2930
Item 3.	Defaults Upon Senior Securities	2930
Item 4.	Reserved	29
Item 5.	Other Information	30
Item 5.	Exhibits:	29
Item 6.	Exhibits:	30

PART I – FINANCIAL INFORMATION

Item 1.

Financial Statements

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK;

FINANCIAL STATEMENTS TO FOLLOW]

WORLD MONITOR TRUST II – SERIES E

CONDENSED FINANCIAL STATEMENTS

~~March~~June 3130, 2010

WORLD MONITOR TRUST II – SERIES E

CONDENSED STATEMENTS OF FINANCIAL CONDITION

~~March~~June 3130, 2010 (Unaudited) and December 31, 2009

	March 31,2010		December 31,2009
	June 30,2010		December 31,2009
ASSETS
Cash and cash equivalents (See Note 2)	$	12,~~822~~793,~~233~~253	$	14,633,636
Receivable from Managing Owner		6624,~~023~~319		57,155
Net unrealized gain on open forward contracts		~~98,010~~0		6,948
Net unrealized gain on open futures contracts		~~350,685~~0		18,196
Total assets	$	1312,~~336~~817,~~951~~572	$	14,715,935
LIABILITIES
Commissions, administrative services andother transaction fees payable	$	31,878	$	37,726
Net unrealized loss on open forward contracts	$	124,944	$	0
Accrued expenses payable		94,171		81,891
Net unrealized loss on open futures contracts		4,814		0
Management fees payable		22,018		24,794
Commissions, administrative services andother transaction fees payable		28,813		37,726
Redemptions payable		205,305		218,530
Accrued expenses payable		104,432		81,891
Total liabilities		353,372		362,941
Management fees payable		20,924		24,794
Redemptions payable		362,800		218,530
Total liabilities		646,727		362,941
TRUST CAPITAL (Net Asset Value)
Managing Owner Interests (none and none outstanding)at March 31, 2010 and December 31, 2009, respectively
Managing Owner Interests (none and none outstanding)at June 30, 2010 and December 31, 2009, respectively
Limited Interests (68,076.600 and 70,384.249 interestsoutstanding) at March 31, 2010 and December 31, 2009,respectively		12,983,579		14,352,994
Limited Interests (65,298.106 and 70,384.249 interestsoutstanding) at June 30, 2010 and December 31, 2009,respectively		12,170,845		14,352,994
Total trust capital (net asset value)		12,983,579		14,352,994
Total trust capital (Net Asset Value)		12,170,845		14,352,994
Total liabilities and trust capital	$	1312,~~336~~817,~~951~~572	$	14,715,935

Net Asset Value per Limited ~~and Managing Owner~~ Interest

March 31, 2010		December 31,2009
June 30,2010		December 31,2009
$	~~190~~186.7239	$	203.92

See accompanying notes.

-2-

WORLD MONITOR TRUST II – SERIES E

CONDENSED SCHEDULES OF INVESTMENTS

~~March~~June 3130, 2010 (Unaudited) and December 31, 2009

	March 31, 2010					December 31, 2009
	June 30, 2010					December 31, 2009
	NetUnrealizedGain (Loss)as a % ofTrust Capital		~~NetUnrealized~~NetUnrealizedGain ~~Gain~~ (Loss)			NetUnrealizedGain (Loss)as a % ofTrust Capital		NetUnrealizedGain (Loss)
Futures and Forward Contracts
Futures contracts purchased:
Commodities	(0.2601	)%	$	~~33,870~~(978	)	1.45	%	$	208,653
Currencies	0.02	%		2,664		0.00	%		0
Energy	0.00	%		0		0.08	%		12,064
Energy	0.94	%		121,723		0.08	%		12,064
Interest rates	0.00	%		0		(0.99	)%		(142,697	)
Interest rates	0.20	%		25,605		(0.99	)%		(142,697	)
Stock indices	0.00	%		0		0.20	%		28,598
Stock indices	0.95	%		123,764		0.20	%		28,598
Net unrealized gain (loss) on futures contracts purchased	(0.01	)%		(978	)	0.74	%		106,618
Net unrealized gain on futures contracts purchased	2.37	%		307,626		0.74	%		106,618
Futures contracts sold:
Commodities	(0.4803	)%		62(3,~~723~~836	)	(0.60	)%		(86,246	)
Currencies	0.00	%		0		0.00	%		(50	)
Energy	(0.1200	)%		~~(15,359~~0	)	0.03	%		3,780
Interest rates	(0.0300	)%		~~(4,305~~0	)	(0.03	)%		(4,993	)
Stock indices	0.00	%		0		(0.01	)%		(913	)
Net unrealized gain (loss) on futures contracts sold	0.33	%		43,059		(0.61	)%		(88,422	)
Net unrealized loss on futures contracts sold	(0.03	)%		(3,836	)	(0.61	)%		(88,422	)
Net unrealized gain on futures contracts	2.70	%	$	350,685		0.13	%	$	18,196
Net unrealized gain (loss) on futures contracts	(0.04	)%	$	(4,814	)	0.13	%	$	18,196
Forward currency contracts purchased:
Net unrealized gain on forward contracts purchased	1.06	%		138,582		2.92	%	$	419,500
Net unrealized gain (loss) on forward contracts purchased	(3.01	)%		(366,350	)	2.92	%	$	419,500
Forward currency contracts sold:
Net unrealized loss on forward contracts sold	(0.31	)%		(40,572	)	(2.87	)%		(412,552	)
Net unrealized gain (loss) on forward contracts sold	1.98	%		241,406		(2.87	)%		(412,552	)
Net unrealized gain on forward contracts	0.75	%	$	98,010		0.05	%	$	6,948
Net unrealized gain (loss) on forward contracts	(1.03	)%	$	(124,944	)	0.05	%	$	6,948

See accompanying notes.

-3-

WORLD MONITOR TRUST II – SERIES E

CONDENSED STATEMENTS OF OPERATIONS

For the Three Months Ended ~~March~~June 3130, 2010 and 2009 and

For the Six Months Ended June 30, 2010 and 2009

(Unaudited)

	For the ThreeMonths EndedMarch 31, 2010			For the ThreeMonths EndedMarch 31, 2009
	For the Three Months EndedJune 30,						For the Six Months EndedJune 30,
REVENUES
	2010			2009			2010			2009
Realized	$	(969,979	)	$	(590,204	)
REVENUES
Change in unrealized		423,551			(203,189	)
Realized	$	667,190		$	(927,122	)	$	(302,789	)	$	(1,517,326	)
Interest income		1,226			3,941
Change in unrealized		(578,453	)		(77,325	)		(154,902	)		(280,514	)
Total losses		(545,202	)		(789,452	)
Interest income		1,950			2,670			3,176			6,611
EXPENSES
Total revenues (losses)		90,687			(1,001,777	)		(454,515	)		(1,791,229	)
Commissions, administrative services andother transaction fees		283,627			340,565
EXPENSES
Management fees		65,370			99,926
Commission, administrative services andother transaction fees		279,944			303,266			563,571			643,831
Incentive fees		0			31
Management fees		64,283			85,108			129,653			185,034
General and administrative		51,048			65,421
Incentive fees		0			0			0			31
Total expenses		400,045			505,943
General and administrative		53,158			67,623			104,206			133,044
General and administrative expenses borneby the Managing Owner and affiliates		(8,868	)		(4,702	)
Total expenses		397,385			455,997			797,430			961,940
Net expenses		391,177			501,241
General and administrative expenses borneby the Managing Owner and affiliates		(15,451	)		(27,406	)		(24,319	)		(32,108	)
NET LOSS	$	(936,379	)	$	(1,290,693	)
Net expenses		381,934			428,591			773,111			929,832
NET LOSS PER WEIGHTEDAVERAGE LIMITED ANDMANAGING OWNER INTEREST
NET LOSS	$	(291,247	)	$	(1,430,368	)	$	(1,227,626	)	$	(2,721,061	)
Net loss per weighted averageLimited and Managing Owner Interest	$	(13.49	)	$	(14.09	)
NET LOSS PER WEIGHTEDAVERAGE LIMITED INTEREST
Weighted average number of Limited andManaging Owner Interests outstanding		69,394			91,596
Net loss per weighted averageLimited Interest	$	(4.34	)	$	(17.43	)	$	(17.98	)	$	(30.57	)
Weighted average number of LimitedInterests outstanding		67,115			82,075			68,280			89,022

See accompanying notes.

-4-

WORLD MONITOR TRUST II – SERIES E

CONDENSED STATEMENTS OF CHANGES IN TRUST CAPITAL

For the ~~Three~~Six Months Ended ~~March~~June 3130, 2010 and 2009

(Unaudited)

	Interests		LimitedInterests			Managing OwnerInterests			Total
For the three months endedMarch 31, 2010
For the Six Months EndedJune 30, 2010
Trust capital atDecember 31, 2009	70,384.249		$	14,352,994		$	0		$	14,352,994
Redemptions	(25,~~307~~086.~~649~~143	)		(~~433~~954,~~036~~523	)		0			(~~433~~954,~~036~~523	)
Net loss for the three monthsended March 31, 2010				(936,379	)		0			(936,379	)
Net loss for the six monthsended June 30, 2010				(1,227,626	)		0			(1,227,626	)
Trust capital atMarch 31, 2010	68,076.600		$	12,983,579		$	0		$	12,983,579
Trust capital atJune 30, 2010	65,298.106		$	12,170,845		$	0		$	12,170,845
For the three months endedMarch 31, 2009
For the Six Months EndedJune 30, 2009
Trust capital atDecember 31, 2008	92,471.646		$	20,731,073		$	210,613		$	20,941,686
Redemptions	(215,~~921~~956.~~463~~452	)		(~~438~~3,~~011~~108,694	)		(197,480	)		(~~635~~3,~~491~~306,174	)
Net loss for the three monthsended March 31, 2009				(1,277,560	)		(13,133	)		(1,290,693	)
Net loss for the six monthsended June 30, 2009				(2,707,928	)		(13,133	)		(2,721,061	)
Trust capital atMarch 31, 2009	89,550.183		$	19,015,502		$	0		$	19,015,502
Trust capital atJune 30, 2009	76,515.194		$	14,914,451		$	0		$	14,914,451

See accompanying notes.

-5-

WORLD MONITOR TRUST II – SERIES E

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 1.

ORGANIZATION

General Description of the Trust

World Monitor Trust II (the “Trust”) is a business trust organized under the laws of Delaware on April 22, 1999. The Trust consists of three separate and distinct series (“Series”): Series D, E and F. Series D, E and F commenced trading operations on March 13, 2000, April 6, 2000 and March 1, 2000, respectively, and each Series was to continue to exist until terminated pursuant to the provisions of Article XIII of the Sixth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). On December 31, 2009, Series D and Series F terminated under the provisions of the Trust Agreement. The assets of each Series are segregated from those of the other Series, separately valued and independently managed and separate financial statements are prepared for each Series. Each Series was formed to engage in the speculative trading of a diversified portfolio of futures, forward and options contracts, and may, from time to time, engage in cash and spot transactions. The trustee of the Trust is Wilmington Trust Company. The fiscal year end of the Trust and Series E is December 31, 2010.

In 2009, Preferred Investment Solutions Corp., the managing owner of Series D, E and F, determined that effective March 1, 2009, Interests in Series D, E and F can only be redeemed as of the last business day of each month. Through February 27, 2009, redemptions were permitted on a weekly basis. As a result, through 2008, interim period financial statements of Series D, E and F were as of the last valuation day in the last week of the period. Beginning in 2009, interim period financial statements of Series D, E and F are as of the last day of a calendar quarter.

Effective May 5, 2009, Preferred Investment Solutions Corp. changed its name to Kenmar Preferred Investments Corp. (“Kenmar Preferred” or the “Managing Owner”). Kenmar Preferred or Managing Owner refers to either Preferred Investment Solutions Corp. or Kenmar Preferred Investments Corp., depending on the applicable period discussed.

In the event that the estimated ~~net~~Net ~~asset~~Asset ~~value~~Value per Interest of a Series E at the end of any business day after adjustments for distributions and redemptions declines by 50% or more since the commencement of trading activities or the first day of a fiscal year, ~~the~~ Series E will automatically terminate. Should the Managing Owner make a determination that Series E’s aggregate net assets in relation to its operating expenses make it unreasonable or imprudent to continue the business of Series E, or, in the exercise of its reasonable discretion, if the aggregate Net Asset Value of Series E as of the close of business on any business day declines below $10 million, the Managing Owner may dissolve Series E.

Regulation

As a registrant with the Securities and Exchange Commission (“SEC”), the Trust is subject to the regulatory requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934. As a commodity pool, the Trust is subject to the regulations of the Commodity Futures Trading Commission (“CFTC”) an agency of the United States (“U.S.”) government which regulates most aspects of the commodity futures industry; rules of the National Futures Association, an industry self-regulatory organization; and the requirements of the various commodity exchanges where the Trust executes transactions. Additionally, the Trust is subject to the requirements of the futures commission merchants (brokers) and interbank market makers through which the Trust trades.

-6-

910

WORLD MONITOR TRUST II – SERIES E

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1.

ORGANIZATION (CONTINUED)

The Offering

Up to $50,000,000 of limited interests in each Series (“Limited Interests”) were being offered (totaling $150,000,000) (“Subscription Maximum”) until each Series’ Subscription Maximum was met either through sale or exchange or until the Managing Owner suspended the offering of Limited Interests as discussed below. Interests were offered to investors who met certain established suitability standards, with a minimum initial subscription of $5,000 ($2,000 for an individual retirement account), although the minimum purchase for any single Series was $1,000. General Interests were also sold exclusively to the Managing Owner. Limited Interests and Managing Owner or General Interests are sometimes collectively referred to as (“Interests”).

Initially, the Limited Interests for each Series were offered for a period of up to 180 days after the date of the Prospectus (“Initial Offering Period”) at $100 per interest. The subscription minimum of $5,000,000 for each Series was reached during the Initial Offering Period permitting Series D, E and F to commence trading operations. Series E completed its initial offering on April 6, 2000 with gross proceeds of $5,157,459, which was fully allocated to commodities trading. Future redemptions in Series E will impact the amount of funds available for investment in commodity contracts in in subsequent periods.

Effective December 1, 2008, in accordance with the Fourth Amended and Restated Declaration of Trust and Trust Agreement, the Managing Owner iswas no longer required to maintain at least a 1% interest in the capital, profits and losses of each Series. As such, the Managing Owner redeemed its entire interest in each Series in 2009.

The Trading Advisor

Each Series has its own independent commodity trading advisor that makes that Series’ trading decisions. The Managing Owner, on behalf of Series E, entered into an advisory agreement with Graham Capital Management, L.P. (the “Trading Advisor”) to make the trading decisions for Series E. The advisory agreement may be terminated for various reasons, including at the discretion of the Managing Owner. The Managing Owner has allocated 100% of the assets of Series E to the Trading Advisor. Series E terminated its Advisory Agreement with the Trading Advisor effective close of business on June 30, 2010 (See Note 9).

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The condensed statements of financial condition, including the condensed schedules of investments, as of June 30, 2010, the condensed statements of operations for the three months ended June 30, 2010 (“Second Quarter 2010”), and for the six months ended June 30, 2010 (“Year-To-Date 2010”) and for the three months ended June 30, 2009 (“Second Quarter 2009”) and for the six months ended June 30, 2009 (“Year-To-Date 2009”), and the condensed statements of changes in trust capital for the Year-To-Date 2010 and Year-To-Date 2009, are unaudited. In the opinion of the Managing Owner, the condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial position of Series E as of June 30, 2010 and the results of its operations for the Second

-7-

1011

WORLD MONITOR TRUST II – SERIES E

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. Basis of Accounting (Continued)

The condensed statement of financial condition, including the condensed schedule of investments, as of March 31, 2010, the condensed statements of operations for the three months ended March 31, 2010 (“First Quarter 2010~~”) and for the three months ended March 31~~, ~~2009~~Second ~~(“First~~ Quarter 2009~~”) and the condensed statements of changes in trust capital for the First Quarter 2010 and 2009 are unaudited. In the opinion of the Managing Owner~~, ~~the~~Year-To-Date ~~financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial position of Fund as of March 31,~~ 2010 and ~~the results of its operations for the First Quarter 2010 and~~ Year-To-Date 2009. The operating results for these interim periods may not be indicative of the results expected for a full year.

Certain information and footnote disclosures normally included in annual financial statements prepared in ~~accordance~~ accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Fund’s annual report on Form 10-K filed with the SEC for the year ended December 31, 2009.

The condensed financial statements of Series E are prepared in accordance with ~~accounting principles generally accepted in the United States of America (“~~U.S. GAAP”), which requires the Managing Owner 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 condensed 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 condensed statements of financial condition on the trade date. Net unrealized gain or loss on open contracts (the difference between contract trade price and market price) are offset when reflected in the condensed financial statements since the contracts are executed with the same ~~counter~~counterparty ~~party~~ under a master netting 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 Series E 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~~ condensed statements 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.

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

Series E has elected not to provide ~~a Statement~~condensed statements of ~~Cash~~cash ~~Flows~~flows since substantially all of Series E’s investments are highly liquid and carried at fair value, Series E has little or no debt and a ~~Statement~~condensed statements of ~~Changes~~changes in ~~Trust~~trust ~~Capital~~ capital is provided.

Consistent with standard business practices in the normal course of business, Series E has provided general indemnifications to the Managing Owner, its Trading Advisor and others when they act, in good faith, in the best interests of Series E. Series E is unable to develop an estimate of the maximum potential amount of the future payments that could potentially result from any hypothetical future claim, but expects the risk of having to make any payments under these general business indemnifications to be remote.

Series E accounts for financial assets and liabilities using 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).

-8-

1112

WORLD MONITOR TRUST II – SERIES E

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting (Continued)

Series E ~~considers~~accounts ~~prices~~ for ~~exchange-traded~~financial ~~commodity~~assets ~~futures~~ and ~~options~~liabilities ~~contracts~~using toa ~~be based on quoted prices in~~fair ~~active~~value ~~markets~~hierarchy ~~for~~that ~~identical~~prioritizes ~~assets (Level 1) and reflects~~ the ~~settlement~~inputs ~~price~~to ~~for~~valuation ~~each~~techniques ~~contract~~used asto ofmeasure ~~the~~fair ~~close~~value oninto ~~the~~three ~~last~~levels: ~~business~~quoted ~~day~~market ofprices ~~the~~in ~~reporting~~active ~~period.~~markets ~~The~~for ~~market~~identical ~~values~~assets ofand ~~forward~~liabilities ~~currency~~ (~~non-exchange~~Level ~~traded~~1), ~~contracts~~inputs ~~was extrapolated~~other onthan aquoted ~~forward~~market ~~basis from the spot~~ prices ~~quoted~~that asare observable offor ~~4:00 P.M. (E.T) on~~ the ~~last~~asset ~~business~~or ~~day~~liability, ofeither ~~the~~directly ~~reporting~~or ~~period~~indirectly ~~obtained from it’s third-party data providers i.e. Bloomberg and Interactive Data Corporation~~ (~~“IDC”) (~~Level 2)., ~~There~~and ~~are~~unobservable noinputs ~~Level~~for 3the ~~investments~~asset ~~on March 31, 2010~~ or ~~December 31,~~liability ~~2009~~(Level 3).

Series E considers prices for exchange-traded commodity futures and options contracts to be based on quoted prices in active markets for identical assets (Level 1) and reflects the settlement price for each contract as of the close on the last business day of the reporting period. The market values of forward currency (non-exchange traded) contracts was extrapolated on a forward basis from the spot prices quoted as of 4:00 P.M. (EST) on the last business day of the reporting period obtained from it’s third-party data providers i.e. Bloomberg and Interactive Data Corporation (Level 2). There are no Level 3 investments on June 30, 2010 or December 31, 2009.

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

March 31, 2010	Level 1			Level 2			Level 3			Total
June 30, 2010	Level 1				Level 2				Level 3			Total
Assets:
Liabilities:
Net unrealized gain on open futures contracts	$	350,685		$	0		$	0		$	350,685
Net unrealized loss on open futures contracts	$	(4,814	)		$	0			$	0		$	(4,814	)
Net unrealized gain on open forward contracts	$	0		$	98,010		$	0		$	98,010
Net unrealized loss on open forward contracts	$	0			$	(124,944	)		$	0		$	(124,944	)
December 31, 2009	Level 1			~~Level 2~~	Level 2		~~Level 3~~		Level 3	~~Total~~		Total
Assets:
Net unrealized gain on open futures contracts	$	18,196		$	0$	0	$	0	$	$0	~~18,196~~	$	18,196
Net unrealized gain on open forward contracts	$	0		$	~~6,948~~$	6,948	$	0	$	$0	~~6,948~~	$	6,948

Recent Accounting Pronouncements

~~During~~ In January 2010, the ~~Financial~~FASB ~~Accounting~~amended ~~Standards~~the ~~Board~~existing ~~issued an Accounting Standards Update (ASU) to improve~~ disclosure ~~about~~guidance on fair value measurements, ~~requiring new~~which ~~disclosures~~was ~~about transfers into and out of Levels~~ effective January 1, ~~and~~2010, 2except ~~and~~for ~~separate~~ disclosures about purchases, sales, issuances, and settlements in the ~~reconciliation~~ ~~for~~roll forward of activity in Level 3 fair value measurements, ~~using~~which ~~significant~~is ~~unobservable~~effective ~~inputs~~January 1, ~~(Level 3)~~2011. ~~Existing~~ ~~disclosure~~Among ~~requirements were~~other ~~clarified~~things, ~~relating~~the toupdated guidance requires additional disclosure for the ~~levels~~amounts of ~~disaggregation~~significant ~~for~~transfers ~~fair~~in ~~value~~and ~~measurements~~out of Level 1 and ~~inputs~~Level 2 measurements and ~~valuation techniques~~requires ~~used~~certain toLevel ~~measure~~3 ~~fair~~disclosures ~~value.~~on ~~The guidance~~a ingross ~~the~~basis. ~~ASU is~~Additionally, ~~effective~~the ~~for~~updates ~~Series~~amend ~~E beginning January~~existing 1,guidance ~~2010 except~~to ~~for the~~require ~~disclosures~~a ~~about~~greater level ~~purchases,~~of ~~sales,~~disaggregated ~~issuances~~information and ~~settlements~~more inrobust ~~the~~disclosures ~~roll~~about ~~forward~~valuation ~~of activity~~techniques inand ~~Level~~inputs 3to fair value measurements. Since the amended guidance requires only additional disclosures, ~~which will~~the ~~be effective~~adoption ~~for Series~~of Ethe ~~beginning~~provisions effective January 1, 2011. will not impact Series E’s ~~adoption~~ financial position or results of ~~the~~ operations. The implementation of this guidance, for the provisions effective January ~~and its~~1, 2010, did not have a material impact on ~~the~~Series ~~financial~~E’s ~~statements and~~financial ~~disclosures was immaterial~~statements.

-9-

1213

WORLD MONITOR TRUST II – SERIES E

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Cash and Cash Equivalents

Cash represents 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 ~~March~~June 3130, 2010 and December 31, 2009, restricted cash totaled $568,~~104,043~~212 and $6,183,608, respectively. Series E ~~receives~~ receives interest on all cash balances held by its bank, prime and commodity brokers at prevailing rates.

Income Taxes

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

Series E 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 Owner has reviewed Series E’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 condensed financial statements. Series E 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.

Profit and Loss Allocations and Distributions

Through February 27, 2009, Series E allocated profits and losses for both financial and tax reporting purposes to its Interest holders weekly on a pro rata basis based on each owner’s Interests outstanding during the week. Subsequent to February 27, 2009, Series E allocated profits and losses for both financial and tax reporting purposes to its Interest holders monthly on a pro rata basis based on each owner’s Interests outstanding during the month. Distributions (other than redemptions of Interests) 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 Interest holders. The Managing Owner has not and does not presently intend to make any distributions.

Interest Income

Interest income is recorded on an accrual basis.

Foreign Currency Transactions

Series E’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 then the U.S. dollar are translated into U.S. dollars at the rates in effect at the date of the condensed 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 the condensed statements of operations under the caption realized.

-10-

1314

WORLD MONITOR TRUST II – SERIES E

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

F. Interest Income

Interest income is recorded on an accrual basis.

G. Foreign Currency Transactions

Series E’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 then the U.S. dollar are translated into U.S. dollars at the rates in effect at the date of the statement of financial condition. Income and expense items denominated in currencies other than 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.

Note 3.

FEES

Organizational and General and Administrative Costs

Routine legal, audit, postage, and other routine third party administrative costs are paid by Series E. To the extent that general and administrative costs incurred by Series E exceed 1.5% of Series E’s ~~net~~Net ~~asset~~Asset ~~value~~Value during the year (with a maximum of 0.5% attributable to other than legal and audit expenses) such amounts will be borne by the Managing Owner and its affiliates.

Management and Incentive Fees

Series E ~~pays~~paid its Trading Advisor a management fee at an annual rate of 2% of Series E’s ~~net~~Net ~~asset~~Asset ~~value~~Value allocated to its management. Through February 27, 2009 the management fee was determined weekly and the sum of such weekly amounts was paid monthly. Subsequent to February 27, 2009, the management fee accrues and ~~pays~~is paid monthly. Series E also pays ~~its~~ its Trading Advisor a quarterly incentive fee equal to 22% of such Trading Advisor’s “New High Net Trading Profits” (as defined in the advisory agreement). Incentive fees accrued weekly through February 27, 2009 and monthly subsequent to February 27, 2009. ~~Incentive~~No incentive fees ~~continue~~were toearned beduring ~~paid~~Second ~~quarterly in arrears. During First~~ Quarter 2010, noSecond ~~Incentive~~Quarter ~~fees~~2009 ~~were~~and ~~earned~~Year-To-Date 2010. Incentive fees of $31 were earned during ~~the~~Year-To-Date ~~First Quarter~~ 2009.

Administrative Services

Series E pays the Managing Owner administrative services fees at an annual rate of 6% of Series E’s ~~net~~Net ~~asset~~Asset ~~value~~Value excluding transaction fees which Series E pays to its commodity and prime broker. Through February 27, 2009, the fee was determined weekly and the sum of such weekly amounts was paid monthly. Subsequent to February 27, 2009, the fee is determined and paid monthly. Series E is also obligated to pay all floor brokerage expenses, give-up charges and NFA, clearing and exchange fees incurred in connection with Series E’s commodity trading activities.

Note 4.

RELATED PARTIES

Series E reimburses the Managing Owner or its affiliates for services they performed for Series E, which include, but are not limited to: brokerage services; accounting and financial management; registrar, transfer and assignment functions; investor communications; printing and other administrative services. However, to the extent that general and administrative expenses exceed 1.5% of Series E’s Net Asset Value during the year (with a maximum of 0.5% attributable to other than legal and audit expenses) such amounts are borne by the Managing Owner and its affiliates. General and administrative expenses of $15,451 during the Second Quarter 2010 and $27,406 during the Second Quarter 2009 exceeded such limitations. Because general and administrative expenses exceeded such limitations for the Second Quarter 2010 and Second Quarter 2009, a portion of the expenses related to services provided by the Managing Owner for the Second Quarter 2010 and 2009 were borne by the Managing Owner and its affiliates.

-11-

1415

WORLD MONITOR TRUST II – SERIES E

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 4. RELATED PARTIES (CONTINUED)

Series E reimburses the Managing Owner or its affiliates for services they performed for Series E, which include, but are not limited to: brokerage services; accounting and financial management; registrar, transfer and assignment functions; investor communications; printing and other administrative services. However, to the extent that general and administrative expenses exceed 1.5% of Series E’s net asset value during the year (with a maximum of 0.5% attributable to other than legal and audit expenses) such amounts are borne by the Managing Owner and its affiliates. General and administrative expenses of $8,868 during the First Quarter 2010 and $4,702 during the First Quarter 2009 exceeded such limitations. Because general and administrative expenses exceeded such limitations for the First Quarter 2010 and First Quarter 2009, a portion of the expenses related to services provided by the Managing Owner for the First Quarter 2010 and 2009 were borne by the Managing Owner and its affiliates.

The expenses incurred by Series E for services performed by the Managing Owner and its affiliates for Series E were:

	First Quarter2010			First Quarter2009
	Second Quarter						Year-To-Date
Administrative services	$	197,307		$	300,707
	2010			2009			2010			2009
General and administrative		15,790			13,336
Administrative services	$	194,007		$	256,810		$	391,314		$	557,517
		213,097			314,043
General and administrative		20,817			16,637			36,607			29,973
General and administrative expenses borneby the Managing Owner and its affiliates		(8,868	)		(4,702	)
		214,824			273,447			427,291			587,490
TOTAL	$	204,229		$	309,341
General and administrative expenses borneby the Managing Owner and its affiliates		(15,451	)		(27,406	)		(24,319	)		(32,108	)
TOTAL	$	199,373		$	246,041		$	403,602		$	555,382

Expenses payable to the Managing Owner and its affiliates (which are included in commissions, administrative services and other transaction fees payable and accrued expenses payable on the condensed statements of financial condition) as of ~~March~~June 3130, 2010 and December 31, 2009 were $3534,~~703~~645 and $35,174, respectively.

Note 5.

DEPOSITS WITH COMMODITY AND PRIME BROKER

Series E 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. ~~Series E earns interest income on assets deposited with the commodity broker.~~

Series E deposits funds with a prime broker. Margin requirements are satisfied by the deposit of cash with such prime broker. ~~Series E earns interest income on assets deposited with the prime broker.~~

Note 6.

INCOME TAX REPORTING

There have been no differences between the tax basis and book basis of assets, liabilities, and Interest holders’ capital since inception of the Trust.

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

The fair value of Series E’s derivatives by instrument type, as well as the location of those instruments on the condensed statements of financial condition as of June 30, 2010 and December 31, 2009 are included in the condensed schedules of investments, all of which are deemed derivatives not designated as hedging instruments.

-12-

1516

WORLD MONITOR TRUST II – SERIES E

NOTES TO ~~CONSOLIDATED~~CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7. DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

The ~~fair~~trading ~~value~~revenue of Series E’s derivatives by instrument type, as as well as the location of those ~~instruments~~gains and losses on the ~~statement~~condensed statements of ~~financial~~operations, ~~condition~~for asthe ofSecond ~~March 31,~~Quarter 2010 and ~~December 31,~~ 2009 ~~are~~and ~~included~~Year-To-Date in2010 ~~the~~and ~~condensed~~2009 ~~schedule~~is ~~of investments, all of which are deemed derivatives not designated~~ as ~~hedging~~ ~~instruments~~follows: ~~under.~~

The trading revenue of Series E’s derivatives by instrument type, as well as the location of those gains and losses on the statement of operations, for the three months ended March 31, 2010 and 2009 is as follows:


	Trading Revenue for the
Type of Instrument	Second Quarter 2010			Second Quarter 2009			Year-To-Date 2010			Year-To-Date 2009
Commodities Contracts	$	(108,641	)	$	(150,703	)	$	(350,906	)	$	(374,439	)
Currencies Contracts		20,118			(29,569	)		19,410			(93,728	)
Energy Contracts		(272,846	)		(55,680	)		(223,207	)		52,340
Interest Rate Contracts		820,035			(448,127	)		939,641			(624,807	)
Stock Indices Contracts		(264,301	)		(315,918	)		(663,032	)		(559,729	)
Forward Currency Contracts		(105,628	)		(4,450	)		(179,597	)		(197,477	)


Total	$	88,737		$	(1,004,447	)	$	(457,691	)	$	(1,797,840	)


Line item in Condensed Statements of Operations
Realized	$	667,190		$	(927,122	)	$	(302,789	)	$	(1,517,326
Change in unrealized		(578,453	)		(77,325	)		(154,902	)		(280,514	)


Total	$	88,737		$	(1,004,447	)	$	(457,691	)	$	(1,797,840	)

Type of Instrument	Trading Revenue forthe Three Months EndedMarch 31, 2010			Trading Revenue forthe Three Months EndedMarch 31, 2009
Commodities Contracts	$	(242,265	)	$	(223,736	)
Currencies Contracts		(708	)		(64,159	)
Energy Contracts		49,639			108,020
Interest Rate Contracts		119,606			(176,680	)
Stock Indices Contracts		(398,731	)		(243,811	)
Forward Currency Contracts		(73,969	)		(193,027	)
Total	$	(546,428	)	$	(793,393	)
Line item in Condensed Statements of Operations
Realized	$	(969,979	)	$	(590,204	)
Change in unrealized		423,551			(203,189	)
Total	$	(546,428	)	$	(793,393	)

As of June 30, 2010 and December 31, 2009, the total number of open futures contracts and forward contracts was approximately 2,037 and 5,779 respectively.

Series E 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 Series E’s investment activities (credit risk).

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 Series E’s net assets being traded, significantly exceeds Series E’s future cash requirements since Series E intends to close out its open positions prior to settlement. As a result, Series E is generally subject only to the risk of loss arising from the change in the value of the contracts. As such, Series E considers the “fair value” of its derivative instruments to be the net unrealized gain or loss on the contracts.

The market risk associated with Series E’s commitments to purchase commodities is limited to the gross or face amount of the contracts held. However, when Series E 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 Series E 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 effects among the derivative instruments Series E holds and the liquidity and inherent volatility of the markets in which Series E trades.

-13-

1617

WORLD MONITOR TRUST II – SERIES E

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

Market Risk (continued)

Credit Risk

When entering into futures or forward contracts, Series E is exposed to credit risk that the counterparty to the contract will not meet its obligations. The counterparty for futures contracts traded on ~~United~~U.S. ~~States~~ and most foreign futures exchanges is the clearinghouse associated with the particular exchange. In general, clearinghouses are backed by their corporate ~~members~~ 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 Series E as Series E’s commodity broker is the ~~sole~~ sole counterparty. Series E has entered into a master netting agreement with its broker and, as a result, when applicable presents unrealized gains and losses on open forward positions as a net amount in the condensed statements of financial condition. ~~The~~ The amount at risk associated with counterparty non-performance of all of Series E’s contracts is the net unrealized gain included in the condensed statements of financial condition; however, counterparty non-performance on only certain of Series E’s contracts may result in greater loss than non-performance on all of Series E’s contracts. There can be no assurance that any counterparty, clearing member or clearinghouse will meet its obligations to Series E.

The Managing Owner attempts to minimize both credit and market risks by requiring Series E and its Trading Advisor 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. Additionally, pursuant to the advisory agreement among Series E, the Managing Owner and the Trading Advisor, Series E shall automatically terminate the Trading Advisor if the ~~net~~Net ~~asset~~Asset ~~value~~Value allocated to the Trading Advisor declines by 40% from the value at the beginning of any year or since the commencement of trading activities. Furthermore, the Sixth Amended and Restated Declaration of Trust and Trust Agreement provides that Series E will liquidate its positions, and eventually dissolve, if Series E experiences a decline in the ~~net~~Net ~~asset~~Asset ~~value~~Value of 50% from the value at the beginning of any year or since the commencement of trading activities. In each case, the decline in ~~net~~Net ~~asset~~Asset ~~value~~Value is after giving effect for distributions, and redemptions. The Managing Owner may impose additional restrictions (through modifications of trading limitations and policies) upon the trading activities of the Trading Advisor as it, in good faith, deems to be in the best interest of Series E.

Series E’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 Series E all assets of Series E relating to domestic futures trading and is not allowed to commingle such assets with its other assets. At ~~March~~June 3130, 2010 ~~and~~ and December 31, 2009, such segregated assets totaled $6,~~750~~960,~~359~~883 and $6,915,834, respectively. Part 30.7 of the CFTC regulations also requires Series E’s futures commission merchant to secure assets of Series E related to foreign futures trading which totaled $~~116~~(14,~~941~~366) and $11,816 at ~~March~~June 3130, 2010 and December 31, 2009, respectively. There are no segregation requirements for assets related to forward trading.

As of June 30, 2010, Series E’s open futures and forward contracts mature within two months.

-14-

1718

WORLD MONITOR TRUST II – SERIES E

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7. DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

Credit Risk (continued)

As of March 31, 2010, Series E’s open futures and forward contracts mature within eighteen months.

Note 8.

FINANCIAL HIGHLIGHTS

The following information presents per ~~interest~~Interest operating performance data and other supplemental financial data for the ~~three~~Second ~~months~~Quarter ~~ended~~2010, ~~March 31~~Second Quarter 2009, Year-To-Date 2010 and Year-To-Date 2009. This information has been derived from information presented in the condensed financial statements.

	First Quarter2010			First Quarter2009
	Second Quarter						Year-To-Date
Per Interest Performance (for an Interest outstanding throughout the entire period)
	2010(Unaudited)			2009(Unaudited)			2010(Unaudited)			2009(Unaudited)
Net asset value per Interest at beginning of period	$	203.92		$	226.47
Per Interest Performance
Net realized loss and change in net unrealized gain(loss) on commodity transactions(1)		(7.58	)		(8.70	)
(for an Interest outstanding throughout the entire period)
Interest income(1)		0.02			0.04
Net asset value per Interest at beginning of period	$	190.72		$	212.34		$	203.92		$	226.47
Expenses(1)		(5.64	)		(5.47	)
Net realized gain (loss) and change in net unrealizedgain (loss) on commodity transactions(1)		1.33			(12.23	)		(6.26	)		(21.18	)
Net decrease for the period		(13.20	)		(14.13	)
Interest income(1)		0.03			0.03			0.05			0.07
Net asset value per Interest at end of period	$	190.72		$	212.34
Expenses(1)		(5.69	)		(5.22	)		(11.32	)		(10.44	)
Total Return(3)
Net decrease for the period		(4.33	)		(17.42	)		(17.53	)		(31.55	)
Total return before incentive fees		(6.47	)%		(6.24	)%
Net asset value per Interest at end of period	$	186.39		$	194.92		$	186.39		$	194.92
Incentive fees		0.00	%		0.00	%
Total Return(3)
Total return after incentive fees		(6.47	)%		(6.24	)%
Total return before incentive fees		(2.27	)%		(8.20	)%		(8.60	)%		(13.93	)%
Supplemental Data
Incentive fees		0.00	%		0.00	%		0.00	%		0.00	%
Ratios to average net asset value:
Total return after incentive fees		(2.27	)%		(8.20	)%		(8.60	)%		(13.93	)%
Net investment loss before incentive fees(2), (4)		(11.75	)%		(9.67	)%
Supplemental Data
Incentive fees(3)		0.00	%		0.00	%
Ratios to average Net Asset Value:
Net investment loss after incentive fees		(11.75	)%		(9.67	)%
Net investment loss before incentive fees(2), (4)		(11.94	)%		(10.10	)%		(11.84	)%		(9.41	)%
Interest income(4)		0.04	%		0.08	%
Incentive fees(3)		0.00	%		0.00	%		0.00	%		0.00	%
Incentive fees(3)		0.00	%		0.00	%
Net investment loss after incentive fees		(11.94	)%		(10.10	)%		(11.84	)%		(9.41	)%
Other expenses(4)		11.79	%		9.75	%
Interest income(4)		0.06	%		0.06	%		0.05	%		0.07	%
Total expenses		11.79	%		9.75	%
Incentive fees(3)		0.00	%		0.00	%		0.00	%		0.00	%
Other expenses(4)		12.00	%		10.16	%		11.89	%		9.48	%
Total expenses		12.00	%		10.16	%		11.89	%		9.48	%

Total returns are calculated based on the change in value of an Interest during the period. An individual Interest holder’s total returns and ratios may vary from the above total returns and ratios based on the timing of redemptions.

(1) Interest income per Interest and expenses per Interest are calculated by dividing interest income and expenses by the weighted average number of Interests outstanding during the period. Net realized gain (loss) and change in net unrealized gain (loss) on commodity transactions is a balancing amount necessary to reconcile the change in ~~net~~Net ~~asset~~Asset ~~value~~Value per Interest with the other per Interest information.

⁽²⁾

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

⁽³⁾

Not annualized.

⁽⁴⁾

Annualized.

-15-

1819

WORLD MONITOR TRUST II – SERIES E

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 9.

SUBSEQUENT EVENTS

Effective July 1, 2010, Series E will contribute all of its assets into KMP Futures Fund I LLC (“KMPFF”), a Delaware limited liability company for which Winton Capital Management Limited (“Winton”), pursuant to its Diversified Program, and the Trading Advisor, pursuant to its K4D-15V Program, which is a systematic, technical broadly diversified program, will serve as the trading advisors.

On July 30, 2010, the Board of Directors of Kenmar Preferred, determined to dissolve Series E effective as of the close of business on September 30, 2010 because Kenmar Preferred has determined that Series E’s aggregate net assets in relation to its operating expenses make it unreasonable to continue the business of Series E.

Investors in the Series E will receive a pro rata distribution of their interest in KMPFF.

Series E intends to file a Form 15 with the SEC de-registering the units of the Series E registered under Section 12(g) of the Securities Exchange Act of 1934.

-16-

Item 2.

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

This report on Form 10-Q (the “Report”) for the quarter ending ~~March~~June 3130, 2010 (“~~First~~Second Quarter 2010”) includes forward-looking statements that reflect the current expectations of Kenmar Preferred Investments Corp., the managing owner of World Monitor Trust II – Series E (“Registrant”), about the future results, performance, prospects and opportunities of Registrant. The Managing Owner has tried to identify these forward-looking statements by using words such as “may,” “will,” “expect,” “anticipate,” “believe,” “intend,” “should,” “estimate” or the negative of those terms or similar expressions. These forward-looking statements are based on information currently available to the Managing Owner and are subject to a number of risks, uncertainties and other factors, both known, such as those described in this Report, and unknown, that could cause Registrant’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

You should not place undue reliance on any forward-looking statements. Except as expressly required by the Federal securities laws, the Managing Owner undertakes no obligation to publicly update or revise any forward-looking statements or the risks, uncertainties or other factors described in this Report, as a result of new information, future events or changed circumstances or for any other reason after the date of this Report.

Introduction

General

World Monitor Trust II (the “Trust”) is a business trust organized under the laws of Delaware on April 22, 1999. The Trust consists of three separate and distinct series (“Series”): Series D, Series E and Series F. Series D, E and F commenced trading operations on March 13, 2000, April 6, 2000 and March 1, 2000, respectively, and each Series will continue to exist until terminated pursuant to the provisions of Article XIII of the Sixth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). On December 31, 2009, Series D and F terminated under the provisions of the Trust Agreement. The assets of each Series are segregated from those of the other Series, separately valued and independently managed. Each Series was formed to engage in the speculative trading of a diversified portfolio of futures, forward and options contracts, and may, from time to time, engage in cash and spot transactions. The trustee of the Trust is Wilmington Trust Company. The Managing Owner serves as the managing owner of the Trust and each Series, including Registrant. Registrant ~~was formed to engage in the speculative trading of commodity futures, forwards and option contracts. Registrant~~’s fiscal year for book and tax purposes ends on December 31.

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

Managing Owner and its Affiliates

Kenmar Preferred has been the managing owner of Registrant since October 1, 2004.

Effective December 1, 2008, in accordance with the Fourth Amended and Restated Declaration of Trust and Trust Agreement, the Managing Owner is no longer required to maintain at least a 1% interest in Registrant. As such, the Managing Owner redeemed its entire Interest in each Series in 2009.

The Trading Advisor

Registrant has entered into an advisory agreement (the “Advisory Agreement”) with Graham Capital Management, L.P. (the “Trading Advisor” or “Graham”) to make the trading decisions for Registrant. Graham trades 100% of Registrant’s assets pursuant to Graham’s ~~Global~~K4D-15V ~~Diversified~~ Program. ~~The~~ The Advisory Agreement may be terminated for various reasons, including at the discretion of Registrant. Through February 27, 2009, Registrant, accrued weekly and paid monthly a management fee equal to a weekly rate of approximately 0.038% (2% annually) of the assets allocated to the Trading Advisor. Subsequent to February 27, 2009, Registrant accrues and pays monthly a management fee equal to 1/12th of 2% (2% annually) of the assets allocated to the Trading Advisor. Registrant also pays the Trading Advisor an incentive fee of 22% of New High Net Trading Profits (as defined in the Advisory Agreement) generated by Registrant. Through February 27, 2009, incentive fees accrued weekly and were paid quarterly in arrears. Subsequent to February 27, 2009, incentive fees are accrued monthly and are ultimately determined as of the last business day of each calendar quarter.

1921

~~fees~~Effective ~~accrued~~July 1, ~~weekly~~2010, ~~and~~Registrant ~~were~~will ~~paid~~contribute ~~quarterly~~all inof ~~arrears.~~its ~~Subsequent~~assets into toKMP ~~February 27~~Futures Fund I LLC (“KMPFF”), ~~2009~~a Delaware limited liability company that serves as a trading vehicle for which Winton Capital Management Limited (“Winton”), ~~incentive~~a ~~fees~~company ~~are~~registered ~~accrued~~in ~~monthly~~England and ~~are~~Wales, ~~ultimately~~and Graham ~~determined~~currently serve as of the ~~last~~trading ~~business~~advisors. ~~day~~Registrant terminated its Advisory Agreement with Graham effective close of ~~each calendar~~business ~~quarter~~June 30, 2010.

Competition

The Managing Owner and its affiliates have formed, and may continue to form, various entities to engage in the speculative trading of futures, forwards and 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 the 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 to Registrant’s 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 to Registrant’s Form 10-K for the fiscal year ended December 31, 2009.

Critical Accounting Policies

General

Preparation of the financial statements and related disclosures in compliance with accounting principles generally accepted in the United States of America (“USU.S. GAAP”) 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 Managing Owner has evaluated Registrant’s financial statements and related disclosures and has determined that the policies discussed below are critical accounting policies because they involve estimates, judgments and assumptions that are particularly complex, subjective or uncertain. For further discussion of Registrant’s significant accounting policies, see Note 2 to Registrant’s financial statements for the year ended December 31, 2009, which is filed as an exhibit to Registrant’s annual report on Form 10-K for the fiscal year ended December 31, 2009.

The valuation of Registrant’s investments that are not traded on a United States (“USU.S.”) 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 Interestholders.

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 Trading Profits (Losses) 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 Super Derivatives, Bloomberg, Reuters and or other 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.~~

2022

Of derived ~~the~~through ~~Registrant’s~~extrapolation ~~unrealized gains at March 31, 2010, $350,685~~ or ~~78.16%~~interpolation of ~~the~~observable ~~Registrant’s~~market ~~unrealized gains at March 31, 2010 are classified as Level 1 and $98,010 or 21~~data.~~84%~~ ~~as Level 2. Of the unrealized gains at December 31, 2009, $18,196 or 72.37% of the~~ Registrant’s ~~unrealized gains~~does atnot ~~December 31,~~currently ~~2009~~have ~~are~~any ~~classified~~investments asvalued ~~Level~~using ~~1 and $6,948 or 27.63% as~~ Level ~~2. There are no Level~~ 3 ~~investments on March 31, 2010 or December 31, 2009~~inputs.

~~During January 2010,~~Of the ~~Financial~~Registrant’s ~~Accounting~~unrealized ~~Standards~~losses ~~Board~~at ~~issued~~June an30, ~~Accounting Standards Update~~ 2010, $(~~ASU~~4,814) toor ~~improve~~3.71% ~~disclosure~~of ~~about~~Registrant’s ~~fair~~unrealized losses ~~value~~at ~~measurements~~June 30, ~~requiring new~~2010 ~~disclosures~~are ~~about~~classified ~~transfers~~as ~~into~~Level ~~and out of Levels~~ 1 and ~~2 and separate disclosures about purchases~~$(124,944) ~~sales,~~or ~~issuances~~96.29% ~~and~~as ~~settlements in the reconciliation for fair value measurements using significant unobservable inputs (~~Level 3)2. ~~Existing~~ ~~disclosure~~Of ~~requirements were clarified relating to~~ the ~~levels~~unrealized ofgains ~~disaggregation~~at ~~for~~December 31, ~~fair~~2009, ~~value~~$18,196 ~~measurements~~or ~~and inputs and valuation techniques used to measure fair value~~72.37% ~~The guidance~~of in the ~~ASU is~~Registrant’s ~~effective~~unrealized ~~for Series~~gains ~~E beginning January~~at ~~1, 2010~~December ~~except for the disclosures about purchases~~31, ~~sales,~~2009 ~~issuances~~are ~~and~~classified ~~settlements in the roll forward of~~as ~~activity in~~ Level 31 ~~fair~~and ~~value measurements~~$6,948 ~~which will~~or ~~be effective~~27.63% ~~for Series~~as ELevel ~~beginning January 1, 2011~~2. ~~Series~~There ~~E’s adoption~~are ~~of the~~no ~~guidance and its~~Level ~~impact~~3 investments on ~~the~~June 30, ~~financial~~2010 ~~statements~~or ~~and disclosures~~December ~~was~~31, ~~immaterial~~2009.

In January 2010, the FASB amended the existing disclosure guidance on fair value measurements, which was effective January 1, 2010, except for disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements, which is effective January 1, 2011. Among other things, the updated guidance requires additional disclosure for the amounts of significant transfers in and out of Level 1 and Level 2 measurements and requires certain Level 3 disclosures on a gross basis. Additionally, the updates amend existing guidance to require a greater level of disaggregated information and more robust disclosures about valuation techniques and inputs to fair value measurements. Since the amended guidance requires only additional disclosures, the adoption of the provisions effective January 1, 2011 will not impact the Registrants financial position or results of operations. The implementation of this guidance, for the provisions effective January 1, 2010, did not have a material impact on the Registrants financial statements.

Liquidity and Capital Resources

Registrant commenced operations on April 6, 2000. Additional contributions raised through the continuous offering of limited interests (“Limited Interests”) and general interests (“General Interests” and, together with the Limited Interests, “Interests”) of beneficial ownership in Registrant were offered until it substantially achieved its subscription maximum of $50,000,000 Limited Interests in June 2003.

In 2009, the Managing Owner of Registrant determined that, effective March 1, 2009, Interests in Registrant can only be redeemed as of the last business day of each month. Through February 27, 2009, Investors were able to redeem their Interest on a weekly basis on the Friday of each week.

Subscriptions and Redemptions

~~First~~Second Quarter 2010

Subscriptions of Limited Interests and General Interests for the ~~First~~Second Quarter 2010 were $0 and $0, respectively. Redemptions of Limited Interests and General Interests for the ~~First~~Second Quarter 2010 were $~~433~~521,~~036~~487 and $0, respectively.

~~First~~Second Quarter 2009

Subscriptions of Limited Interests and General Interests for the ~~quarter~~Second ~~ended March 31, 2009 (“First~~ Quarter 2009”) were $0 and $0, respectively. Redemptions of Limited Interests and General Interests for the ~~First~~Second Quarter 2009 were $~~438~~2,~~011~~670,683 and $~~197~~0,~~480,~~ respectively.

Liquidity

At ~~March~~June 3130, 2010, 100% of Registrant’s investable net assets were allocated to commodities trading. A significant portion of Registrant’s net assets are 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 limit for several consecutive days with little or no trading. Such market conditions could prevent Registrant from promptly liquidating its commodity futures 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

2123

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 financial statements for the year ended December 31, 2009, which is filed as an exhibit to Registrant’s annual report on Form 10-K for the fiscal year ended December 31, 2009.

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

Market Overview

Following is a market overview for ~~First~~Second Quarter 2010 and ~~First~~Second Quarter 2009:

~~First~~Second Quarter 2010

The ~~first~~Second ~~quarter~~Quarter of 2010 ~~ushered~~jolted inthe ~~increasing evidence that a~~ global ~~economy~~financial ~~recovery was gaining ground~~markets. The ~~fourth-quarter~~ USeconomy ~~Gross~~took ~~Domestic~~a ~~Product~~backseat ~~data,~~as ~~which~~the ~~was~~escalating ~~released~~sovereign debt ~~early~~problems in ~~the~~some ~~first~~Eurozone ~~quarter~~countries, ~~showed~~questions about the ~~economy~~European ~~growing~~banking atsystem anand ~~annual~~renewed ~~rate~~misgivings ofabout ~~5.6%,~~ the ~~highest~~ultimate ~~rate~~fate ~~since~~of the ~~third~~euro ~~quarter~~dominated ofthe ~~2003~~financial markets. ~~The~~Economic ~~momentum~~data ~~appears~~was tosimply ~~have~~not ~~continued~~strong inenough to overcome the ~~first~~negative ~~quarter~~influence of ~~2010~~European developments. ~~While~~The ~~inventory~~tone ~~swings~~of ~~provided~~economic ~~the~~data ~~biggest~~deteriorated ~~boost~~during ~~to growth in~~ the ~~fourth~~ quarter,. ~~consumer~~Consumer spending ~~appears~~failed to ~~have~~follow ~~gained~~up ~~strength~~on inthat of the robust first quarter. ~~Most~~After ~~importantly,~~starting the ~~labor~~quarter ~~market~~on ~~gave~~a ~~some~~bright ~~signs~~note, ofprivate ~~hope.~~payroll ~~Payroll~~ employment ~~actually~~slipped back ~~showed~~to a ~~gain~~disappointing ~~in the first quarter, albeit modest and partly boosted by the temporary hiring of US Census workers~~pace. ~~The~~Other ~~job~~labor market ~~appears~~indicators also appeared to be ~~stabilizing, although the pace of improvement has been glacial~~stalling.

~~Notwithstanding~~Commodities ~~growing~~had ~~confidence in the US economic recovery and increasing signs of acceleration in global growth, US~~a ~~Treasuries~~mixed ~~held steady during the~~ quarter., ~~The~~which ~~10-year~~was ~~yield~~surprising ~~ended~~given the ~~quarter~~broad atbased 3risk aversion.~~8%.~~ ~~The~~While USindustrial ~~Federal~~commodities ~~Reserve (the “Fed”) kept the Fed Funds rate unchanged and there~~ were nohurt ~~indications~~by ~~of imminent change in interest rate policy. However,~~ the ~~Fed~~fears ~~hiked~~surrounding ~~the~~global ~~lending~~growth ~~rate on its discount window in February~~prospects, ~~signaling~~agricultural ~~the~~commodities ~~diminishing~~rallied ~~need~~thanks ~~for~~to ~~various~~strong ~~discount~~emerging ~~window~~market demand and ~~other extraordinary lending programs that began in 2008. The European Central Bank,~~ the ~~Bank of England and~~ ~~the~~unusually ~~Bank~~hot, ofdry ~~Japan kept key rates unchanged through the quarter as well~~weather. ~~The Reserve Bank of Australia continued its rate hike cycle that began late in 2009 as the Australian economy and labor markets strengthened on the back of strong demand for commodities.~~

~~Currencies~~Interest Rates: ~~The~~With USall ~~dollar~~the ~~rally~~stars ~~that~~lining ~~began~~up, inglobal ~~December~~financial turmoil, ~~2009~~disappointing ~~accelerated~~U.S. ~~through~~growth and the ~~first quarter~~renewed threat of ~~2010~~deflation, ~~largely~~U.S. ~~because~~Treasury ofbonds ~~troubles~~had ~~surrounding~~their ~~the~~best ~~euro~~quarter assince ~~well~~ the ~~strong~~fourth ~~outperformance~~quarter of ~~the~~2008. USYields ~~economy~~dropped inbelow ~~comparison~~the to3% ~~its~~level ~~major~~for ~~developed~~the ~~market~~first ~~counterparts.~~time ~~The~~since ~~Dollar~~April ~~Index gained approximately 4~~2009.~~0%.~~ The USFederal ~~dollar~~Reserve ~~appreciated~~kept ~~against~~policy ~~the~~unchanged ~~euro~~throughout as the ~~swirling~~quarter ~~storm clouds of the PIGS crisis darkened~~ and ~~doubts~~there ~~about~~were ~~the~~no ~~future~~indications of ~~the~~imminent ~~European~~change ~~Monetary~~in ~~Union~~interest ~~gained~~rate ~~credibility~~policy. The ~~euro~~major ~~finished~~Federal Reserve actions during the quarter ~~down~~were ~~approximately~~the ~~5.6%~~reestablishment ~~against~~of the temporary dollar. ~~The~~liquidity ~~British~~swaps ~~pound~~with various ~~fared~~central ~~worse~~banks asin ~~the~~order ~~lack~~to ofcontain ~~economic~~the ~~recovery,~~fallout ~~coupled~~from ~~with~~the ~~uncomfortably~~Eurozone ~~high~~crisis. ~~inflation,~~The ~~created~~European aCentral ~~difficult~~Bank, ~~environment in~~ the ~~United~~Bank ~~Kingdom~~of asEngland and the ~~pound~~Bank ~~declined~~of ~~6.1%.~~Japan ~~The~~kept ~~Japanese~~key ~~yen~~rates ~~held~~unchanged ~~stable~~throughout ~~and ended~~ the quarter ~~down~~as 0well.3% ~~to the US dollar.~~ The ~~Australian~~Reserve ~~and~~Bank ~~Canadian~~of ~~dollars~~Australia continued ~~their~~its ~~upward~~rate hike ~~trajectories~~cycle asthat ~~both~~began ~~economies~~late ~~have~~in ~~significant~~2009 ~~commodity~~as ~~industries~~the economy and ~~solid~~labor ~~economic~~markets ~~growth.~~strengthened ~~The~~on ~~Australian~~the ~~and~~back ~~Canadian~~of ~~dollars~~strong ~~climbed~~demand ~~2.1%~~for ~~and~~commodities ~~2.9%,~~from ~~respectively,~~its ~~against~~Asian ~~the~~trading ~~US dollar~~partners.

~~Indices~~Currencies: ~~Global~~The ~~equities~~U.S. ~~suffered~~dollar arally ~~hiccup~~that began in ~~January~~December ~~triggered~~2009 byreached ~~the~~a ~~PIGS~~crescendo ~~crisis~~in ~~but~~the ~~easily~~second quarter. In ~~overcame~~addition to the ~~poor~~euro’s ~~quarterly~~weakness, ~~start~~the ondollar ~~the~~was ~~back~~buoyed ofby ~~robust~~global ~~earnings~~risk ~~data~~aversion and ~~signs~~flight ofto aquality ~~broadening~~in ~~recovery~~the second quarter. ~~Financials~~The ~~continued~~U.S. Dollar ~~their~~Index ~~strength~~gained inapproximately ~~earnings~~6.2%, ~~into~~and climbed above 86 for the first ~~quarter~~time since April 2009. The dollar ~~Dow~~appreciated ~~Jones~~smartly ~~Industrial~~against ~~Average,~~the ~~S&P~~euro ~~500~~as ~~and~~the ~~NASDAQ~~storm ~~rose approximately~~clouds ~~4.1%,~~quickly ~~4.9%~~spread ~~and~~from ~~5.7%,~~Greece ~~respectively.~~to ~~European~~engulf ~~equities~~Portugal, ~~weighed~~Spain ~~down~~and byIreland ~~problems~~and inthreatened ~~Greece,~~the ~~lagged~~very USfuture ~~equities.~~of ~~The~~the ~~STOXX~~European ~~600,~~Monetary aUnion. ~~broad~~The ~~measure~~euro offinished ~~European~~the ~~equities,~~second ~~rose~~quarter ~~approximately~~down 4approximately 9.1% against the dollar. The ~~CAC,~~British ~~FTSE~~pound ~~and~~fared ~~DAX~~better, ~~closed~~declining 1.6% in the second quarter ~~with gains~~against ofthe ~~approximately 1~~greenback.~~0%,~~ ~~4.9%~~The ~~and~~Japanese ~~3.3%,~~yen ~~respectively.~~not ~~Asian~~surprisingly ~~markets~~rallied ~~were~~with ~~mixed.~~the ~~Japan’s~~rising ~~Nikkei~~global ~~surged~~risk aversion, gaining 5.28%, against the ~~Korean~~dollar. ~~Kospi~~The ~~edged~~two upcurrencies heavily ~~slightly~~influenced ~~but~~by commodities, the ~~Hang~~Australian ~~Seng~~and ~~declined~~Canadian 2dollars, fell sharply despite solid economic data.~~9%.~~ The Australian ~~All~~and ~~Ordinaries~~Canadian ~~Index~~dollars ~~posted~~dropped a7.5% ~~modest~~and 04.24%, ~~gain~~respectively, against the U. S. dollar.

~~Energies~~Indices: ~~During~~The strongest equity rally since the ~~quarter,~~1930s ~~industrial~~hit ~~commodities~~a ~~benefited~~brick ~~from~~wall in the ~~global~~second ~~industrial~~quarter ~~recovery~~as ~~and~~stock prices ~~inventory~~suffered ~~building;~~their ~~however,~~first ~~agricultural~~quarterly ~~commodities~~decline ~~declined~~since onthe ~~unexpectedly~~first ~~strong~~quarter ~~crop~~of ~~reports~~2009. ~~Crude~~Unlike ~~continued~~in tothe ~~increase~~first ~~and~~quarter, ~~gained~~robust ~~5.5%~~earnings onwere ~~the~~not ~~back~~enough ofto ~~rising~~overcome ~~international~~the ~~trade~~Eurozone jitters and ~~stabilizing~~growing ~~transportation~~fears ~~demand~~of insovereign debt crisis around the developed ~~countries~~ world. ~~Natural~~The ~~gas~~losses were ~~plunged~~broad-based 30across most sectors.6% asThe ~~rig~~Dow ~~counts~~Jones ~~surged~~Industrial Average, S&P 500 and ~~production~~NASDAQ ~~escalated~~fell approximately 9.9%, ~~Heating~~11.9% ~~oil~~and ~~ended~~12.0%, respectively, for the quarter. ~~with~~European anstocks, ~~approximate~~weighed 2down by problems in Greece, lagged U.2%S. ~~gain~~equities, although ~~and~~the ~~reformulated~~German ~~gasoline~~markets ~~had~~were an exception. The STOXX 600, a ~~solid~~broad ~~quarter~~measure of European equities, ~~rising~~declined approximately 1216.64%., ~~Part~~in ofdollar ~~the~~terms, ~~strength~~although in ~~refined~~ ~~products~~euro isterms ~~contributable~~it toshowed ~~fact~~a ~~that~~smaller ~~Venezuela~~loss ~~appears~~of to7.7%. ~~have~~The ~~become~~CAC, aFTSE ~~net~~100 ~~importer~~and DAX closed the quarter with losses of ~~gasoline~~approximately 13.4%, 13.4% and ~~its~~3.1%, ~~exports~~respectively. ofAsian ~~other~~markets ~~refined~~were ~~products~~more ~~recently~~mixed as the Nikkei fell 15.4% and the Hang Seng declined 5.2%, the Korean Kospi edged up 0.3%. The Australian All Ordinaries Index posted an 11.6% decline.

~~Metals:~~24 Gold posted a 1.6% gain during the quarter, although the US dollar remained the preferred safe haven. With the tailwind of rising industrial demand, silver gained 4.2%. With the exception of zinc, base metals advanced during the quarter as global

~~industrial~~Energies: ~~production,~~Crude ~~especially~~oil ~~auto~~fell ~~production,~~10.9% ~~accelerated~~on the back of macro risk aversion and softening freight data. ~~Copper~~Natural gas soared 13.0%, ~~aluminum~~reflecting ~~and~~the ~~nickel~~fact that at current prices it is an attractive substitute for other energy products. Heating oil ended the quarter with ~~gains~~an ofapproximate 610.6%, 4loss.2% Reformulated gasoline followed crude and 34heating oil and declined 11.93%, ~~respectively~~in the quarter.

~~Agricultural/Softs and Livestock~~Metals: ~~Agricultural~~Gold ~~commodities~~registered ~~experienced~~ a ~~sell-off~~solid 10.7% gain during the quarter. ~~Except~~Although ~~for coffee~~the ~~and~~dollar ~~cotton~~remains ~~which~~the ~~benefited~~preferred ~~from~~safe ~~global economic conditions~~haven, the ~~agricultural~~euro’s ~~commodities~~troubles ~~were~~appear ~~adversely~~to ~~affected~~have bysupported ~~fundamentals~~gold. ~~such~~The asinternational ~~unexpectedly~~community’s ~~strong~~desire ~~reports~~to ofdiversify ~~harvest,~~their ~~storage~~reserves ~~and~~may ~~planting.~~be Ashelping gold given the ~~fears~~euro ofand the ~~damage~~sterling’s toweakness. ~~harvests~~Silver ~~from~~lagged gold, rising 4.4%, but the ~~unusually~~ ~~cold~~performance ~~weather~~was ~~abated,~~surprising ~~grains~~given ~~sold~~that ~~off~~base ~~swiftly.~~metals, ~~Sugar~~which ~~plummeted~~often ~~over~~have ~~38%~~a ~~from~~strong ~~near~~correlation ~~30-year~~to ~~highs~~silver, ~~reflecting~~fell ~~large~~steeply. ~~speculative~~Copper, ~~positioning~~aluminum and ~~better-than-expected~~nickel ~~yields~~ended inthe ~~India~~quarter with declines of 17.9%, 15.9%, and ~~Brazil~~21.2%, respectively.

~~First~~Agriculturals ~~Quarter~~/Softs ~~2009~~and Grains: Agricultural commodities generally gained during the quarter. Coffee led the way with a 19.5% surge on the back of weak harvests in Vietnam and Central America. Sugar rebounded back from a steep plunge in the previous quarter, rising 8.0%. Grains managed modest gains as the macro environment weighed against generally supportive fundamentals.

~~Many~~Second ofQuarter ~~the same economic problems that faced the US economy in the last months of 2008 were still apparent in the first three months of~~ 2009 as President Obama was inaugurated. However, as the quarter progressed, there was at least a glimmer of hope, particularly in March. The “fear factor” was still very much in place, but to a somewhat lesser degree than at the start of the year. The major feature of the first quarter was a series of massive liquidity additions from the Federal Reserve (the “Fed”) as they spent, lent or guaranteed $12.8 trillion. Also, the Fed announced they would buy significant quantities of Treasury paper going forward, resulting in the worst quarter for US Treasuries since 1996, as the Merrill Lynch Master Index plunged.

USThe ~~economic~~Second ~~data~~Quarter ~~during~~of ~~the~~2009 ~~first~~displayed ~~quarter~~snippets ~~can~~of ~~only~~evidence bethat ~~described~~the asU.S. ~~bleak,~~economy ashad ~~neither~~bottomed ~~housing~~but ~~nor~~the ~~employment showed signs~~problem ofremained ~~imminent~~that ~~improvement.~~two ~~The~~key ~~Unemployment~~areas, ~~Rate~~housing ~~rose~~and toemployment, ~~over~~showed ~~8.1%~~only atmodest ~~the~~indications ~~end~~ of ~~the~~a ~~quarter~~turnaround. ~~and~~U.S. ~~payroll~~economic ~~fell~~metrics bywere anfar ~~additional~~from ~~650,000~~optimistic induring ~~March~~the quarter as the ~~economy~~unemployment ~~lost~~rate ~~over~~rose to 9.5 ~~million~~%, ~~jobs~~and ~~since~~many ~~the~~market USparticipants ~~recession~~believe ~~began.~~it ~~Housing Starts showed~~is ~~improvement~~possible inthat ~~February,~~it ~~rising~~will ~~over~~climb ~~20%~~above ~~after~~the itdouble-digit ~~dropped~~mark ~~nearly~~during ~~40% in~~ the ~~three~~second-half ~~preceding~~of ~~months~~2009. ~~Industrial~~Since ~~production~~December ~~recorded~~2007, ~~consecutive months of decline through~~ the ~~first quarter~~U.S. ~~The~~lost ~~latest~~approximately ~~fourth~~6.5 million ~~quarter~~jobs, ~~Gross~~of ~~Domestic~~which ~~Product (“GDP”)~~1.3 million ~~revision~~were ~~came~~lost in atthe -6past quarter.~~3%,~~ ~~which~~As isfor the ~~worst~~stimulus inpackages, they ~~nearly~~are ~~three~~making ~~decades.~~their ~~The~~way ~~consumer~~into ~~held~~the ~~retrenched~~economy, asbut ~~Retail~~at ~~Sales~~a ~~fell~~snail’s 1pace.1% inThe ~~March,~~third ~~were off 1.2% for the~~ quarter ~~and~~could ~~down~~see ~~9.4%~~a inlarger ~~the~~macro ~~past twelve months~~impact.

~~Europe~~Interest ~~and~~Rates: ~~Asia~~U.S. ~~experienced~~Treasury ayields ~~quarter~~steepened ~~similar~~through tomost of the USquarter. In May, ~~with~~a ~~the~~downward less-than-expected ~~exception~~revision of ~~China.~~the ~~China’s~~first quarter GDP ~~projections, however,~~encouraged ~~were~~risk ~~downgraded~~taking byand ~~almost~~the ~~2%.~~yield Ascurve inhinted the ~~US,~~economy ~~foreign~~was ~~central~~in ~~banks~~a ~~engaged~~recovery incycle. ~~massive~~The ~~liquidity~~June ~~additions~~Federal ~~and~~Open ~~bank~~Market ~~bailout~~Committee ~~initiatives.~~meeting ~~The~~indicated UKthat ~~was~~the ~~particularly~~Fed ~~aggressive~~would asmaintain ~~the~~an ~~Bank~~accommodative ofpolicy through ~~England~~year ~~cut~~end ~~its~~and ~~key~~they ~~lending~~expressed ~~rate~~little toconcern aon ~~record~~inflation. ~~low~~While ~~0.5% and~~the ~~announced~~yield ancurve ~~unprecedented~~still ~~plan~~indicates tothe ~~buy~~economy 75is ~~billion~~in ~~pounds~~recovery ofmode, ~~commercial~~it ~~paper.~~does ~~The~~not ~~European~~foreshadow ~~Central~~a ~~Bank~~quick ~~cut~~“V” ~~rates~~shaped ~~consistently~~recovery ~~throughout~~but ~~the~~rather ~~quarter~~an ~~but~~extended “U” pattern. The Federal Reserve kept rates at a0 ~~less~~to ~~aggressive~~25 ~~pace,~~basis ~~despite~~points ~~anemic~~through ~~economic~~the ~~conditions~~quarter. ~~Concerns~~The ~~surrounding~~Bank of England and the ~~health~~ Bank of ~~the~~Japan ~~Eastern~~(“BOJ”) ~~European~~kept ~~banking~~key ~~sector~~rates ~~lingered~~unchanged asthrough the quarter ~~concluded~~as well. Japan’s ~~recession~~continued ~~worsened~~in ~~materially~~a recession during the ~~first~~ quarter, ~~even~~ but, as in the ~~Bank~~U.S. ofand ~~Japan~~Eurozone, ~~engaged~~the inworst ~~three~~appears ~~liquidity-adding~~to ~~measures~~be over. ~~Japan~~After ~~appears~~being tocriticized befor ~~behind both~~lowering ~~the~~rates USonly 25 basis points in April, UKthe ~~and~~European ~~Western~~Central ~~Europe~~Bank in(“ECB”) ~~its~~cut ~~economic~~rates ~~recovery~~by ~~mode~~another 25 basis points to 1.00% ~~Australia~~in ~~and~~May. ~~New~~Jean ~~Zealand~~Claude Trichet, ~~suffered~~ECB aspresident, ~~the~~made ~~leading~~it ~~economic~~apparent ~~index~~they ~~for~~were ~~Australia~~likely ~~hit~~finished acutting ~~26-year~~rates ~~low~~for inthe ~~February~~near future.

Currencies: The U.S. Dollar Index ended ~~March down overall. However,~~ the ~~dollar~~quarter ~~continued~~with asa ~~the~~loss ~~currency~~ of ~~choice~~approximately ~~on a~~5%. ~~flight-to-safety~~The ~~basis,~~U.S. ~~despite~~currency survived ~~noises~~calls from ~~China~~Russia and ~~Russia~~the ~~regarding~~other aBRIC ~~proposed~~nations ~~new~~for ~~global~~a so-called “supranational” currency. ~~The~~An ~~Obama~~increased ~~administration~~appetite ~~quickly~~for ~~emphasized~~risk aweighed ~~continued~~on ~~policy~~the dollar for amuch ~~strong~~of ~~dollar. During~~ the quarter, ~~the~~although ~~euro~~that ~~gained~~appeared ~~ground~~ to ~~the~~lessen ~~pound, while~~toward the USend ~~dollar~~of ~~advanced versus both~~June. AtAfter being ~~one~~annihilated ~~point,~~in ~~sterling was under $1.38 before ending~~ the ~~quarter~~first ~~at approximately $1.44~~quarter, as the UKpound ~~economy~~managed ~~holds~~ a ~~basket~~solid ~~case,~~recovery ~~led~~on byindications ~~plunging house prices. The yen periodically attracted flight-to-safety demand but~~ that ~~steadily~~UK ~~lessened~~housing asmay ~~the~~have ~~quarter developed~~bottomed. ~~Japanese~~The ~~GDP~~euro ~~continued~~finished tothe ~~retract~~second ~~and~~quarter ~~there~~up ~~were~~approximately ~~few~~6% ~~apparent~~on ~~inflationary~~the ~~pressures,~~dollar. ~~while~~The ~~technical~~Japanese ~~indicators~~yen ~~pointed~~ended ~~to modest additional weakness for~~ the ~~yen~~quarter ~~vs.~~up ~~the~~overall ~~dollar~~ and ~~euro.~~ ~~The~~the ~~Australian~~BOJ ~~and~~continued ~~New Zealand dollars scored gains~~ to ~~both~~engage ~~the~~in ~~yen~~heavy ~~and~~stimulus ~~dollar to cap the quarter~~activity.

~~Energies~~Indices: ~~Crude~~It ~~ended~~was ~~the~~a positive overall quarter atfor ~~almost~~global ~~$50~~equities, ~~per barrel~~however, anU.S. ~~11%~~equities ~~overall~~lost ~~gain,~~some asground ~~the~~in ~~market~~June in what appeared to ~~run into~~be ~~resistance~~a atcorrection ~~that~~due ~~level~~to concerns surrounding consumers, housing and employment. AtEnergy ~~one~~and ~~point~~financial instocks ~~early~~led ~~February~~the U.S. rally as the Dow Jones Industrial Average, ~~crude~~S&P ~~was~~500 ~~down~~and ~~over~~NASDAQ ~~23%~~all ~~year-to-date~~gained ~~before~~approximately ~~rallying~~11%, 1215% inand ~~the~~20%, ~~final~~respectively, ~~week~~for of the ~~month~~quarter. ~~Crude~~A ~~closed~~similar ~~March~~pattern unfolded in Europe with modest losses in June within solid quarterly performance. The STOXX 600, a ~~double-digit~~broad ~~gain~~measure of European equities, ~~clearly~~rose ~~aided~~approximately by16% during the ~~global~~quarter. ~~equity~~The ~~rally.~~CAC ~~Demand destruction~~and isthe ~~still~~DAX ~~apparent~~closed the quarter with gains as well. In Asia, the ~~latest~~Nikkei ~~data~~jumped ~~showing~~over ~~declines~~22% inas ~~consumption.~~concerns ~~OPEC~~surrounding North Korea’s ~~member~~nuclear ~~compliance~~program ~~appeared~~served toas ~~hold,~~only ~~although~~brief interruptions. ~~there~~The ~~were~~particularly ~~rumblings~~volatile ofHang ~~possible~~Seng ~~erosion.~~rose ~~Reformulated~~approximately ~~gasoline~~23%, ~~prices~~while ~~edged~~the upAustralian inAll ~~March~~Ordinaries Index and Korea’s Kospi rallied as ~~gasoline~~well. atRussian stocks recovered as the ~~pump~~ ~~rose.~~quarter ~~Natural~~progressed ~~gas~~in ~~inventories~~a ~~remained~~rally ~~well~~that ~~above~~began ~~5-year~~at ~~averages,~~the ~~which~~end ~~drove~~March. Improved oil prices ~~lower~~were toa ~~close~~primary motivator of the ~~quarter~~turnaround.

~~Indices~~Energies: ~~March~~Crude ~~proved~~followed movements toof be the ~~best~~equity ~~month~~markets, ~~for~~offsetting USongoing ~~equities~~demand ~~since 2002. However~~destruction, ~~the~~which ~~overall~~seems ~~quarterly~~to ~~result~~have ~~was not~~been ~~pretty~~discounted asby the ~~Dow~~market. ~~Jones~~In ~~fell~~addition, anthe ~~overall~~weakening ~~approximate 13~~U.3%S. ~~Only~~dollar, ~~three~~“economic ofoptimism” ~~thirty~~based ~~components~~on ~~ended~~Asian ~~the~~and ~~period~~U.S. ~~with higher prices; IBM~~data, ~~Home~~continued ~~Depot~~disruption ~~and~~of output ~~Intel.~~by ~~The~~rebel ~~NASDAQ~~groups ~~lost~~in ~~over~~Nigeria 3%and ~~for~~Chinese ~~the~~stockpiling ~~quarter~~fueled ~~and~~crude’s ~~the~~rally ~~broad~~as ~~based~~it ~~S&P~~surged ~~500~~approximately ~~fell over 11~~44%~~. After~~ ~~being~~within ~~a severe drag on~~ the ~~market~~Dow ~~for~~Jones-UBS ~~months,~~Commodity ~~financial~~Index ~~and~~(“DJUBS”) ~~banking~~during ~~issues~~the ~~led a late first~~ quarter ~~rally~~. ~~Asian~~For ~~and~~natural ~~European~~gas, ~~equities~~temperatures ~~experienced~~ran ancool ~~overall positive March but, as~~ in ~~the~~key consuming USregions, ~~lost~~keeping ~~ground~~demand ~~for~~in ~~the quarter~~check. ~~The~~Heating ~~key~~oil ~~European markets, FTSE, DAX and CAC~~ ended the quarter ~~down~~with ~~overall~~an ~~10%,~~approximate 1728% ~~and~~gain ~~15%,~~within ~~respectively. The leading Asian equity indices,~~ the ~~Nikkei~~DJUBS. ~~and~~Reformulated ~~Hang~~gasoline ~~Seng,~~had ~~ended~~a ~~the~~strong quarter ~~down~~as ~~14%~~gasoline ~~and~~at ~~6%, respectively. Korea’s Kospi ended~~ the ~~period~~pump ~~with~~continued ~~an overall~~to 5%rise ~~gain~~but ~~as buyers were~~ demand

2325

~~encouraged~~still byran ~~liquidity~~down ~~measures~~2.5% tofrom ~~aid~~last ~~the Korean economy~~year. ~~Australia~~With ~~and~~supplies ~~New~~more ~~Zealand~~than ~~both~~22% ~~scored~~ahead ~~gains~~of inlast ~~March,~~year ~~however~~and ~~they~~storage ~~suffered~~facilities ~~quarterly~~full, ~~losses.~~natural ~~Russia~~gas ~~broke~~finished athe ~~six~~quarter ~~month~~up ~~losing~~only ~~streak with an approximate 27~~4% ~~surge~~within ~~to cap~~ the ~~quarter~~DJUBS.

~~Agriculturals~~Metals: ~~Compared~~Reduced toglobal ~~the~~financial ~~year-end~~market ~~rally~~fears ~~seen in~~diminished ~~December~~flight-to-safety ~~2008,~~demand for gold during the ~~first~~ second quarter ofas ~~2009,~~gold finished relatively flat for the ~~agricultural~~quarter. ~~markets~~Silver ~~saw~~closed ~~both~~out ~~price~~the ~~and~~period ~~participation~~with ~~decline.~~an ~~The~~approximate ~~drop~~5% ingain ~~Open~~as ~~Interest~~jewelry demand was ~~the~~quiet, ~~most~~although ~~notable,~~there ~~especially~~was ~~given~~a ~~its~~slight ~~relative~~increase ~~levels,~~in asIndia’s ~~compared~~purchases. toChina ~~historical~~was ~~pricing.~~a Inperiodic ~~all~~buyer. ofBase metals ~~the~~witnessed ~~four~~overall ~~major~~gains ~~markets,~~across ~~corn,~~the ~~soybeans,~~board ~~wheat~~in ~~and~~the ~~cotton~~quarter, ~~the~~mainly ~~Open~~attributable ~~Interest fell~~ to ~~the~~China’s ~~lowest~~strategic ~~levels~~commodity ~~seen~~re-stocking, ~~since~~the ~~2005~~weaker U.S. ~~Prices~~dollar, ~~however,~~investment ~~remained~~demand ~~well~~and ~~above~~economic ~~both~~optimism. ~~comparative~~Profits ~~and~~of ~~historical~~over ~~norms~~52%, 22%, 18% and ~~only~~17% ~~the~~for ~~cotton~~nickel, ~~market~~copper, zinc ~~showed~~and aaluminum, ~~resemblance~~respectively, towithin ~~its historic~~the ~~norm~~DJUBS, ~~during~~were showcased through the quarter.

~~Metals~~Agriculturals /Softs and Grains: ~~Copper~~Fear ~~rebounded~~that inthe ~~January~~H1N1 ~~despite~~Influenza a(Swine ~~huge~~Flu) ~~rise~~would ~~in inventories.~~somehow ~~Aluminum~~be ~~did~~spread ~~not~~overseas ~~fare~~from aspork ~~well,~~products ~~losing~~originating ~~over~~in ~~10%~~the ~~following~~U.S. ~~evidence~~led ofto ~~increased~~bans ~~Chinese~~on ~~exports~~U.S. ~~Zinc~~pork ~~and~~products, ~~nickel~~resulting ~~experienced~~in ~~losses~~an ~~within~~approximate ~~the~~2% DJloss ~~AIG~~within ~~Index~~the asDJUBS ~~both~~during ~~saw~~the ~~huge increases~~quarter. For ~~Gold~~the ~~continued~~first ~~upwards~~half ~~through~~of ~~February~~the asquarter, acotton ~~steady pattern~~prices ofreacted ~~flight-to-safety~~bullishly ~~demand continued~~ to ~~emanate~~the ~~from~~uncertain ~~plunging~~weather ~~global~~conditions ~~equity values~~ and the ~~severe~~quarter ~~global~~ended ~~banking~~up ~~crisis.~~approximately ~~Silver~~15% ~~followed~~within ~~gold’s~~the ~~pattern~~DJUBS. ~~and~~Planting ~~realized~~time afears ~~positive~~saw ~~overall~~grain ~~February.~~prices ~~Platinum~~rally in April and ~~palladium~~May, ~~posted~~hitting ~~gains~~a ~~for~~nine month ~~February~~high asdue ~~well.~~to Asthe ~~for~~overly ~~base~~wet ~~metals~~conditions, ~~increased~~which ~~Chinese~~kept ~~demand~~farmers ~~drove~~from ~~prices~~getting ~~higher~~their ~~for~~steel ~~copper~~in ~~and~~the ~~zinc~~field. However, ~~sluggish~~once ~~global~~conditions ~~steel~~dried ~~demand~~out ~~persists~~and forecasts for ~~nickel~~more ~~with~~spring-like ~~few~~weather ~~indications~~were ofpredicted, ~~imminent~~all ~~improvement.~~the ~~Following~~upside ~~four~~gains ~~consecutive~~were ~~monthly~~given ~~gains,~~back during the month of ~~gold~~June ~~fell~~as ~~slightly~~the inUSDA ~~March.~~Planting ~~The~~Acreage ~~metal~~Report ~~was~~rattled ~~hurt~~the ~~toward~~agricultural ~~month-end~~markets. byThe adownside ~~firmer~~effect USon ~~dollar~~soybeans aswas ~~well~~not quite as ~~reduced~~pronounced, ~~flight-to-quality~~however, ~~demand.~~as Athis ~~rally~~crop incan ~~global~~be ~~equities~~planted ~~and~~later ~~benign~~in ~~global~~the ~~inflation~~season ~~data~~with ~~also~~much ~~contributed~~less toattributable ~~lower~~yield ~~performance~~loss. ~~Physical~~Sugar ~~demand~~ended the ~~outside~~quarter ofwith ~~jewelry~~profits ~~remained~~of ~~strong,~~over ~~with~~32% within the ~~notable~~DJUBS ~~exception~~as prices were driven higher by steady demand patterns out of India, ~~where~~the ~~imports~~world’s ~~were~~biggest ~~flat~~consumer; inchanging ~~March.~~global ~~Silver~~weather ~~traded~~patterns which threatened production in aBrazil, ~~volatile~~the ~~pattern~~world’s largest ~~and~~producer; ~~ended~~investment ~~March~~interest ~~with~~and ~~overall~~a ~~losses~~weak U.S. ~~Copper~~dollar. ~~staged~~Coffee afinished ~~limited~~the ~~rally~~quarter inup ~~March~~approximately ~~and~~2% ~~posted~~within ~~overall~~the ~~gains~~DJUBS, attributable to ~~China’s~~a ~~inventory~~weak ~~stockpiling. Aluminum~~dollar, ~~zinc~~solid technicals and ~~lead~~the ~~posted~~relief ~~gains~~from ina ~~March~~treat asof ~~nickel~~adverse ~~prices fell modestly~~weather.

Softs and Livestock: In January, coffee rose over 8% within the DJ AIG Index, despite some end-of-month producer selling. Crop concerns surrounding Colombia and Central America were among the supportive factors. Coffee and cocoa prices both edged up in March. In January, sugar turned in solid performance, gaining over 6.5% within the DJ AIG Index and extended its rally into February. Cattle prices fell seven consecutive months within the DJ AIG Index on poor US demand and weak exports but rose finally in March. Live hogs rose over 3% in January on rumors of increased Russian purchases but fell again in February and March due to high corn prices and weak demand.

Sector Performance

Due to the nature of Registrant’s trading activities, a period-to-period comparison of its trading results is not meaningful. However, set forth below are the following:

(a) the major sectors to which Registrant’s assets were allocated as of ~~March~~June 3130, 2010 and ~~March~~June 3130, 2009, 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 quarter ended ~~March~~June 3130, 2010 and the quarter ended ~~March~~June 3130, 2009.

~~[Remainder~~Second ofQuarter ~~page~~2010 ~~intentionally left blank]~~

24As of June 30, 2010, the allocation of Registrant’s assets to major sectors was as follows:


Sector	Allocation
Currencies	100.00	%

TOTAL	100.00	%

Trading results for the major sectors in which Registrant traded for the Second Quarter 2010 were as follows:

Currencies: (-) Registrant experienced the majority of its gains in the Dollar Index, euro and Swiss franc. Losses were experienced in the Australian and Canadian dollars, Japanese yen, Mexican peso and South African rand.

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

Grains: (-) Registrant experienced gains in soybean meal and cotton. Losses were experienced in bean oil, soybeans, corn and wheat

Indices: (-) Registrant experienced the majority of its gains in the S&P 500 and Nasdaq. Losses were experienced in the DAX, CAC, DJ STOXX, FTSE, Nikkei and the IBEX Plus.

~~First~~Interest ~~Quarter~~Rates: ~~2010~~(+) Registrant experienced the majority of its gains in the Euribor, German Bond and Bobl, US Treasuries, Japanese Government Bonds and Short Sterling. Losses were experienced in Australian and Canadian Bonds.

As of March 31, 2010, the allocation of Registrant’s assets to major sectors was as follows:

Sector	Allocation
Currencies	32.92	%
Energies	15.52	%
Grains	3.73	%
Interest Rates	10.97	%
Meats	0.31	%
Metals	2.82	%
Indices	32.99	%
Tropicals	0.74	%
TOTAL	100.00	%

Trading results for the major sectors in which Registrant traded for the First Quarter 2010 were as follows:

Currencies: (-) Registrant experienced the majority of its gains in the Australian and Canadian dollars, British pound and Mexican peso. Losses were experienced in Chilean peso, euro, Japanese yen, Norwegian krona and Swiss franc.

Energies: (+) Registrant experienced gains natural gas and reformulated gasoline. Losses were experienced in Brent crude, crude oil and heating oil.

Grains: (+) Registrant experienced gains in corn and wheat. Losses were experienced in bean oil, cotton, soybeans and soybean meal.

Indices: (-) Registrant experienced a majority of its gains in the Nikkei, Russell 2000 and the S&P 500. Losses were experienced in the DAX, CAC, DJ Stoxx, FTSE and the IBEX Plus.

Interest Rates: (+) Registrant experienced a majority of its gains in the Euribor, German Bond and Bobl and Short Sterling. Losses were experienced in the US Treasuries, London Gilt and Japanese Government Bonds.

Meats: (+) Registrant experienced gains in live cattle.

Metals: (-) Registrant experienced gains in gold and silver. Losses were ~~made~~incurred in copper, zinc, lead, ~~aluminum~~ and ~~silver~~aluminum.

Softs: (-) Registrant experienced losses in coffee, cocoa and sugar.

~~[Remainder~~Second ofQuarter ~~page~~2009 ~~intentionally left blank]~~

25As of June 30, 2009, the allocation of Registrant’s assets to major sectors was as follows:


Sector	Allocation
Currencies	35.02	%
Energies	10.34	%
Grains	1.09	%
Indices	37.07	%
Interest Rates	12.61	%
Metals	2.84	%
Tropicals	1.03	%

TOTAL	100.00	%

~~First~~Trading results for the major sectors in which Registrant traded for the Second Quarter 2009 were as follows:

AsCurrencies: (-) Registrant experienced the majority of ~~March 31,~~its ~~2009,~~gains in the ~~allocation~~Australian dollar, South African rand and Hungarian forint. The majority of ~~Registrant’s~~the ~~assets~~losses towere ~~major~~realized ~~sectors~~in ~~was~~the asCanadian ~~follows:~~dollar, euro, Japanese yen and Mexican peso.

Sector	Allocation
Currencies	28.27	%
Energies	4.22	%
Grains	2.92	%
Interest Rates	21.27	%
Meats	0.35	%
Metals	1.97	%
Indices	38.52	%
Tropicals	2.48	%
TOTAL	100.00	%

Energies: (-) Registrant experienced gains in reformulated gasoline, Brent crude and crude. Losses were experienced in gas oil, heating oil and natural gas.

~~Trading~~Grains: ~~results~~(+) Registrant ~~for~~experienced ~~the~~gains ~~major sectors~~ in ~~which~~soybeans. ~~Registrant~~Losses ~~traded~~were ~~for~~experienced ~~the~~in ~~First~~corn, ~~Quarter~~cotton ~~2009~~and ~~were~~wheat. ~~as follows:~~

~~Currencies~~Indices: (-) Registrant experienced ~~the~~a majority of its gains in the ~~Japanese~~Hang ~~yen~~Seng, ~~New~~Nasdaq ~~Zealand dollar~~ and ~~Israeli sheckel~~Nikkei. ~~The majority~~Losses ~~of the losses~~ were ~~realized~~experienced in the ~~Australian~~DJ Stoxx ~~dollar~~50, ~~Canadian dollar~~DAX, ~~euro~~CAC and ~~South~~S&P ~~African rand~~500.

~~Energies~~Interest Rates: (+-) Registrant experienced ina ~~the~~majority ~~natural~~of ~~gas~~its ~~sector~~gains in U.S. Treasury Notes. Losses were ~~experienced~~made in ~~Brent~~the ~~crude~~Euribor, Eurodollar, 2-year German Bond, Bund, 3-month short sterling and ~~crude~~Japanese ~~oil~~Government Bonds.

~~Grains~~Meats: (-) Registrant experienced losses in ~~corn,~~live ~~cotton, wheat and soybeans~~cattle.

~~Indices~~Metals: (-) Registrant experienced ~~a majority of its~~ gains in ~~the DJ Stoxx 50, IBEX and Dow Jones Industrial Average~~copper. Losses were ~~experienced~~made in ~~the DAX~~gold, ~~Nasdax~~zinc, aluminum and ~~Nikkei~~silver.

~~Interest Rates~~Softs: (-) Registrant experienced ~~a majority of its~~ gains in ~~the Euribor, Eurodollar, 2-year German Bond and short sterling~~sugar. Losses were ~~made~~experienced in ~~the~~coffee ~~Euroyen, Japanese Government Bonds, London Gilts~~ and ~~US Treasury Notes~~cocoa.

Meats: (+) Registrant experienced gains in live cattle.

Metals: (-) Registrant experienced gains in aluminum. Losses were made in gold, zinc and silver.

Softs: (-) Registrant experienced losses in coffee, cocoa and sugar.

Results of Operations

~~First~~Second Quarter 2010

The Net Asset Value per Interest as of ~~March~~June 3130, 2010 was $~~190~~186.7239, a decrease of $134.2033 from the ~~December~~March 31, ~~2009~~ 2010 Net Asset Value per Interest of $~~203~~190.9272. Registrant’s average net asset level during the ~~First~~Second Quarter 2010 was approximately $1312,~~276~~735,000. Registrant’s average net assets decreased during the ~~First~~Second Quarter 2010 in comparison to the ~~First~~Second Quarter 2009 ~~decreased~~ by approximately $74,~~291~~125,000 primarily due to the effect of redemptions and negative trading performance.

Registrant’s performance for the First Quarter 2010 was (6.47)%. 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 losses before commissions and related fees for the First Quarter 2010 were approximately $(546,000).

Commissions, administrative services and other transaction fees for the First Quarter 2010 were approximately $284,000, a decrease of approximately $57,000 as compared to the First Quarter 2009, primarily due to reduced average net asset levels discussed above as the fees are primarily determined based a fixed percentage of the monthly net asset value.

Management fees for the First Quarter 2010 were approximately $65,000, a decrease of approximately $35,000 as compared to the First Quarter 2009, primarily due to reduced average net asset levels discussed above as the fee is determined based on a fixed percentage of the monthly net asset value.

During the First Quarter 2010 no incentive fees were earned, as the fund’s incentive fee calculation did not exceed the previous high water mark on which the trading advisor was paid an incentive fee.

General and administrative expenses for the First Quarter 2010 were approximately $51,000. To the extent that general and administrative expenses exceed 1.5% of Registrant’s Net Asset Value during the year (with a maximum of 0.5% attributable to other than legal and audit expenses) such amounts are borne by the Managing Owner and its affiliates. General and administrative expenses of approximately $8,900 exceeded such limitations during the First Quarter 2010. Because general and administrative expenses exceeded such limitations during the First Quarter 2010, a portion of the expenses related to services provided by the Managing Owner for Registrant during First Quarter 2010 were borne by the Managing Owner and its affiliates.

First Quarter 2009

The Net Asset Value per Interest as of March 31, 2009, was $212.34, a decrease of $14.13 from the December 31, 2008 Net Asset Value per Interest of $226.47. Registrant’s average net asset level during the First Quarter 2009 was approximately $20,567,000. Registrant’s average net assets increased during the First Quarter 2009 in comparison to the First Quarter 2008 by approximately $1,412,000 primarily due positive trading performance during 2008 which more than offset the effect of redemptions.

Registrant’s performance for the First Quarter 2009 was (6.24)%. 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 and related fees for the First Quarter 2009 were approximately $(793,000).

Interest income is earned on the average daily equity maintained with the clearing broker and bank at competitive interest rates and, therefore, varies weekly according to interest rates, trading performance, and redemptions. Interest income for the First Quarter 2009 was approximately $4,000, a decrease of approximately $91,000 from the First Quarter 2008 primarily due to declining interest rates which more than offset the effects of the increase in average net assets levels discussed above.

Administrative services are calculated on Registrant’s Net Asset Value at the end of each week and therefore, vary according to weekly 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. Administrative services and other transaction fees for the First Quarter 2009 were approximately $341,000, an increase of approximately $21,000 as compared to the First Quarter 2008 primarily due to increased average net asset levels discussed above.

Management fees are calculated on Registrant’s Net Asset Value at the end of each week, and therefore, are affected by weekly trading performance and redemptions. Management fees for the First Quarter 2009 were approximately $100,000, an increase of approximately $7,000 as compared to the First Quarter 2008 primarily due to a increased average net asset levels discussed above.

Incentive fees are based on the “New High Net Trading Profits” (as defined in the Advisory Agreement) generated by the Trading Advisor, accrued weekly and are ultimately determined as of the close of business on the last Friday of each calendar quarter. Incentive fees for the First Quarter 2009 were $31.

General and administrative expenses for the First Quarter 2009 were approximately $65,000. These expenses include accounting, audit, tax, and legal fees, as well as printing and postage costs related to reports sent to limited owners and are before reimbursement of costs incurred by the Managing Owner on behalf of Registrant. To the extent that general and administrative expenses exceed 1.5% of Registrant’s Net Asset Value during the year (with a maximum of 0.5% attributable to

~~other~~Registrant’s ~~than~~performance ~~legal~~for ~~and audit expenses) such amounts are borne by~~ the ~~Managing~~Second ~~Owner~~Quarter ~~and~~2010 ~~its~~was ~~affiliates~~(2.27)%. Performance ~~General~~includes ~~and~~the ~~administrative~~percentage ~~expenses~~change ofin ~~approximately~~Registrant’s ~~$4,700~~Net ~~exceeded~~Asset ~~such~~Value ~~limitations~~excluding ~~for~~ the ~~First~~ ~~Quarter~~effect ~~2009.~~of ~~Because~~any ~~general~~redemptions and ~~administrative~~includes ~~expenses exceeded such limitations during~~ the ~~First~~percentage ~~Quarter~~impact ~~2009, a portion~~ of ~~the~~trading ~~expenses~~gains/(losses) ~~related~~less toany ~~services~~commissions ~~provided~~and byrelated ~~the~~fees ~~Managing~~and ~~Owner~~expenses. ~~for~~Past ~~Registrant during the First Quarter 2009 were~~performance ~~borne~~is bynot ~~the~~necessarily ~~Managing~~indicative ~~Owner~~of ~~and~~future ~~its affiliates~~results.

Registrant’s trading gains before commissions and related fees for the Second Quarter 2010 were approximately $89,000.

Commissions, administrative services and other transaction fees for the Second Quarter 2010 were approximately $280,000, a decrease of approximately $23,000 as compared to the Second Quarter 2009, primarily due to reduced average net asset levels discussed above.

Management Fees for the Second Quarter 2010 were approximately $64,000, a decrease of approximately $21,000 as compared to the Second Quarter 2009, primarily due to reduced average net asset levels discussed above.

During the Second Quarter 2010 no incentive fees were earned, as the fund’s incentive fee calculation did not exceed the previous high water mark on which the Trading Advisor was paid an incentive fee.

General and administrative expenses for the Second Quarter 2010 were approximately $53,000. To the extent that general and administrative expenses exceed 1.5% of Registrant’s Net Asset Value during the year (with a maximum of 0.5% attributable to other than legal and audit expenses) such amounts are borne by the Managing Owner and its affiliates. General and administrative expenses of approximately $15,000 exceeded such limitations during the Second Quarter 2010. Because general and administrative expenses exceeded such limitations during the Second Quarter 2010, a portion of the expenses related to services provided by the Managing Owner for Registrant during Second Quarter 2010 were borne by the Managing Owner and its affiliates.

Second Quarter 2009

The Net Asset Value per Interest as of June 30, 2009 was $194.92, a decrease of $17.42 from the March 31, 2009 Net Asset Value per Interest of $212.34. Registrant’s average net asset level during the Second Quarter 2009 was approximately $16,860,000. Registrant’s average net assets decreased during the Second Quarter 2009 in comparison to the Second Quarter 2008 by approximately $2,916,000 primarily due to the effect of redemptions and negative trading performance.

Registrant’s performance for the Second Quarter 2009 was (8.20)%. 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 losses before commissions and related fees for the Second Quarter 2009 were approximately $(1,004,000).

Commissions, administrative services and other transaction fees for the Second Quarter 2009 were approximately $303,000, a decrease of approximately $30,000 as compared to the Second Quarter 2008, primarily due to reduced average net asset levels discussed above.

Management Fees for the Second Quarter 2009 were approximately $85,000, a decrease of approximately $14,000, as compared to the Second Quarter 2008, primarily due to reduced average net asset levels discussed above.

During the Second Quarter 2009 no incentive fees were earned, as the fund’s incentive fee calculation did not exceed the previous high water mark on which the Trading Advisor was paid an incentive fee.

General and administrative expenses for the Second Quarter 2009 were approximately $68,000. To the extent that general and administrative expenses exceed 1.5% of Registrant’s Net Asset Value during the year (with a maximum of 0.5% attributable to other than legal and audit expenses) such amounts are borne by the Managing Owner and its affiliates. General and administrative expenses of approximately $27,000 exceeded such limitations during the Second Quarter 2009. Because general and administrative expenses exceeded such limitations during the Second Quarter 2009, a portion of the expenses related to services provided by the Managing Owner for Registrant during Second Quarter 2009 were borne by the Managing Owner and its affiliates.

Inflation

Inflation has had no material impact on the operations or on the financial condition of Registrant from inception through ~~March~~June 3130, 2010.

Off-Balance Sheet Arrangements and Contractual Obligations

The Registrant does not have any off-balance-sheet arrangements (as defined in Regulation S-K 303(a)(4)(ii)) that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Registrant’s contractual obligations are with the Managing Owner, the Advisor and its commodity broker. Management fees payable by Registrant to the Trading Advisor and administrative services and other transaction fees payable to the Managing Owner are calculated as a fixed percentage of Registrant’s Net Asset Value. Incentive fees payable by the Registrant to the Trading Advisor are at a fixed rate, calculated as a percentage of Registrant’s “New High Net Trading Profits” (as defined in the 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 Registrant’s commodity 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. Additionally, since the Registrant does not enter into other long-term debt obligations, capital lease obligations, operating lease obligations or other long-term liabilities that would otherwise be reflected on the Registrant’s Statement of Financial Condition, a table of contractual obligations has not been presented. For a further discussion of Registrant’s contractual obligations, see Notes 1, 3 and 4 to Registrant’s financial statements for the year ended December 31, 2009, which is filed as an exhibit to Registrant’s annual report on Form 10-K for the fiscal year ended December 31, 2009.

Item 3.

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 4.

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, 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.

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 June 30, 2010. Based upon such evaluation, the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration have concluded that, as of June 30, 2010, Registrant’s disclosure controls and procedures were effective.

2829

effectiveness of Registrant’s disclosure controls and procedures as of March 31, 2010. Based upon such evaluation, the Managing Owner’s Co-Chief Executive Officers and Director of Fund Administration have concluded that, as of March 31, 2010, Registrant’s disclosure controls and procedures were effective.

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 ~~first~~Second ~~quarter~~Quarter of 2010 that have materially affected, or are reasonably likely to materially affect, Registrant’s internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1.

Legal Proceedings

There are no material legal proceedings pending, on appeal, or concluded to which Registrant is a party or to which any of its assets are subject.

Item 1.A.

Risk Factors

There have been no changes from risk factors as previously disclosed in Registrant’s Form 10-K for the fiscal year ended December 31, 2009.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3.

Defaults Upon Senior Securities

None

Item 45. ~~(Removed~~Other ~~and Reserved)~~Information

~~None~~On July 30, 2010, pursuant to Section 13.1(h) of Registrant’s Trust Agreement, the Board of Directors of Kenmar Preferred, in its capacity as managing owner of Registrant, determined to dissolve Registrant effective as of the close of business on September 30, 2010 because Kenmar Preferred has determined that Registrant’s aggregate net assets in relation to its operating expenses make it unreasonable to continue the business of Registrant.

~~Item~~Investors 5in the Registrant will receive a pro rata distribution of their interest in KMPFF. ~~Exhibits:~~

2.1		Plan and Agreement of Merger of Preferred Investment Solutions Corp. (a Connecticut corporation) and Preferred Investment Solutions Corp. (a Delaware corporation) (incorporated by reference to Exhibit 2.1 to Form 8-K, File No. 000-32687, filed on January 3, 2006)
3.1		First Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust II dated as of May 15, 1999 (incorporated by reference to Exhibit 3.1 and 4.1 to Registrant’s Registration Statement on Form S-1, File No. 333-83015, filed on September 17, 1999)
3.2		Second Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust II dated as of March 28, 2002 (incorporated by reference to Exhibit 3.1 and 4.1 to Post-Effective Amendment No. 4 to Registrant’s Registration Statement on Form S-1, File No. 333-83015, filed on April 2, 2002)
3.3		Third Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust II dated as of October 1, 2004 (incorporated by reference to Exhibit 4.1 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2004)
3.4		Certificate of Incorporation of Preferred Investment Solutions Corp. (a Delaware corporation) (incorporated by reference to Exhibit 3.1 to Form 8-K, File No. 000-32687, filed on January 3, 2006)
3.5		By-Laws of Preferred Investment Solutions Corp. (a Delaware corporation) (incorporated by reference to Exhibit 3.2 to Form 8-K, File No. 000-32687, filed on January 3, 2006)

Registrant intends to file a Form 15 with the Securities and Exchange Commission de-registering the units of the Registrant registered under Section 12(g) of the Securities Exchange Act of 1934.

29Item 6. Exhibits:



2.1		Plan and Agreement of Merger of Preferred Investment Solutions Corp. (a Connecticut corporation) and Preferred Investment Solutions Corp. (a Delaware corporation) (incorporated by reference to Exhibit 2.1 to Form 8-K, File No. 000-32687, filed on January 3, 2006)

3.1		First Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust II dated as of May 15, 1999 (incorporated by reference to Exhibit 3.1 and 4.1 to Registrant’s Registration Statement on Form S-1, File No. 333-83015, filed on September 17, 1999)

3.2		Second Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust II dated as of March 28, 2002 (incorporated by reference to Exhibit 3.1 and 4.1 to Post-Effective Amendment No. 4 to Registrant’s Registration Statement on Form S-1, File No. 333-83015, filed on April 2, 2002)

3.3		Third Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust II dated as of October 1, 2004 (incorporated by reference to Exhibit 4.1 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2004)

3.4		Certificate of Incorporation of Preferred Investment Solutions Corp. (a Delaware corporation) (incorporated by reference to Exhibit 3.1 to Form 8-K, File No. 000-32687, filed on January 3, 2006)

3.6		Fourth Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust II dated as of December 1, 2008 (incorporated by reference to Exhibit 3.1 to Form 8-K, File No. 000-32687, filed on December 3, 2008)
3.7		Fifth Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust II dated as of January 21, 2009 (incorporated by reference to Exhibit 3.4 to Form 8-K, File No. 000-32687, filed on January 21, 2009)
3.8		Sixth Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust II dated as of March 1, 2009 (incorporated by reference to Exhibit 4.1 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2009)
4.1		Form of Request for Redemption (incorporated by reference to Exhibit 4.2 to Post Effective Amendment No. 4 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
4.2		Form of Exchange Request (incorporated by reference to Exhibit 4.3 to Post Effective Amendment No. 4 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
4.3		Form of Subscription Agreement (incorporated by reference to Exhibit 4.4 to Post-Effective Amendment No. 4 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
4.4		Form of Request for Redemption (incorporated by reference to Exhibit 4.2 to Post-Effective Amendment No. 4 to the Registrant’s Registration Statement on Form S-1, File No. 333-83015, filed on April 2, 2002)
4.5		Form of Exchange Request (incorporated by reference to Exhibit 4.3 to Post-Effective Amendment No. 4 to the Registrant’s Registration Statement on Form S-1, File No. 333-83015, filed on April 2, 2002)
4.6		Form of Subscription Agreement (incorporated by reference to Exhibit 4.4 to Post-Effective Amendment No. 4 to the Registrant’s Registration Statement on Form S-1, File No. 333-83015, filed on April 2, 2002)
4.7		The Privacy Notice of the Managing Owner dated July 2009 (incorporated by reference to Exhibit 4.5 to Registrant’s Form 10-K for the year ended December 31, 2009)
10.1		Form of Escrow Agreement among the Trust, Managing Owner, PSI and the Chase Manhattan Bank (incorporated by reference to Exhibit 10.1 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
10.2		Form of Brokerage Agreement among the Trust and PSI (incorporated by reference to Exhibit 10.2 to Registrant’s Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
10.3		Form of Advisory Agreement among Registrant, Managing Owner, and the Trading Advisor (incorporated by reference to Exhibit 10.3 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on July 16, 1999)
10.4		Form of Representation Agreement Concerning the Registration Statement and the Prospectus among Registrant, Managing Owner, PSI, Wilmington Trust Company and the Trading Advisor (incorporated by reference to Exhibit 10.4 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
10.5		Form of Net Worth Agreement between the Managing Owner and Prudential Securities Group, Inc. (incorporated by reference to Exhibit 10.5 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
10.6		Service Agreement among Registrant, Prudential Securities Futures Management Inc. and Wachovia Securities, LLC dated as of July 1, 2003 (incorporated by reference to Exhibit 10.6 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2003)
10.7		Consent to Assignment of Brokerage Agreement dated March 30, 2004 among World Monitor Trust II, Prudential Equity Group, LLC and Prudential Financial Derivatives, LLC (incorporated by reference to Exhibit 10.7 to Form 10-K for the year ended December 31, 2004)

10.8		Novation letter among the Trust, Trading Advisor and Managing Owner dated September 14, 2004 (incorporated by reference to Exhibit 10.7 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2004)
3.5		By-Laws of Preferred Investment Solutions Corp. (a Delaware corporation) (incorporated by reference to Exhibit 3.2 to Form 8-K, File No. 000-32687, filed on January 3, 2006)
10.9		Letter Agreement Amending and Restating Brokerage Agreements between the Managing Owner and Prudential Financial Derivatives, LLC dated October 1, 2004 (incorporated by reference to Exhibit 10.7 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2004)
3.6		Fourth Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust II dated as of December 1, 2008 (incorporated by reference to Exhibit 3.1 to Form 8-K, File No. 000-32687, filed on December 3, 2008)
10.10		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)
3.7		Fifth Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust II dated as of January 21, 2009 (incorporated by reference to Exhibit 3.4 to Form 8-K, File No. 000-32687, filed on January 21, 2009)
10.11		Amendment No. 2 to the Services Agreement between Spectrum Global Fund Administration, L.L.C. and Registrant dated February 28, 2009 (incorporated by reference to Exhibit 10.1 to Form 8-K, File No. 000-32687, filed on March 2, 2009)
3.8		Sixth Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust II dated as of March 1, 2009 (incorporated by reference to Exhibit 4.1 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2009)
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 (incorporated by reference to Exhibit 14.1 to Registrant’s Form 10-K for the year ended December 31, 2009)
4.1		Form of Request for Redemption (incorporated by reference to Exhibit 4.2 to Post Effective Amendment No. 4 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
31.1		Certification pursuant to Exchange Act Rules 13a-14 and 15d-14 (filed herewith)
4.2		Form of Exchange Request (incorporated by reference to Exhibit 4.3 to Post Effective Amendment No. 4 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
31.2		Certification pursuant to Exchange Act Rules 13a-14 and 15d-14 (filed herewith)
4.3		Form of Subscription Agreement (incorporated by reference to Exhibit 4.4 to Post-Effective Amendment No. 4 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
32.1		Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley
4.4		Form of Request for Redemption (incorporated by reference to Exhibit 4.2 to Post-Effective Amendment No. 4 to the Registrant’s Registration Statement on Form S-1, File No. 333-83015, filed on April 2, 2002)
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)
4.5		Form of Exchange Request (incorporated by reference to Exhibit 4.3 to Post-Effective Amendment No. 4 to the Registrant’s Registration Statement on Form S-1, File No. 333-83015, filed on April 2, 2002)
4.6		Form of Subscription Agreement (incorporated by reference to Exhibit 4.4 to Post-Effective Amendment No. 4 to the Registrant’s Registration Statement on Form S-1, File No. 333-83015, filed on April 2, 2002)
4.7		The Privacy Notice of the Managing Owner dated July 2009 (incorporated by reference to Exhibit 4.5 to Registrant’s Form 10-K for the year ended December 31, 2009)
10.1		Form of Escrow Agreement among the Trust, Managing Owner, PSI and the Chase Manhattan Bank (incorporated by reference to Exhibit 10.1 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
10.2		Form of Brokerage Agreement among the Trust and PSI (incorporated by reference to Exhibit 10.2 to Registrant’s Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
10.3		Form of Advisory Agreement among Registrant, Managing Owner, and the Trading Advisor (incorporated by reference to Exhibit 10.3 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on July 16, 1999)
10.4		Form of Representation Agreement Concerning the Registration Statement and the Prospectus among Registrant, Managing Owner, PSI, Wilmington Trust Company and the Trading Advisor (incorporated by reference to Exhibit 10.4 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
10.5		Form of Net Worth Agreement between the Managing Owner and Prudential Securities Group, Inc. (incorporated by reference to Exhibit 10.5 to Registrant’s Registration Statement on Form S-1, File No. 333-83011, filed on September 17, 1999)
10.6		Service Agreement among Registrant, Prudential Securities Futures Management Inc. and Wachovia Securities, LLC dated as of July 1, 2003 (incorporated by reference to Exhibit 10.6 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2003)

[Remainder of page intentionally left blank]



10.7		Consent to Assignment of Brokerage Agreement dated March 30, 2004 among World Monitor Trust II, Prudential Equity Group, LLC and Prudential Financial Derivatives, LLC (incorporated by reference to Exhibit 10.7 to Form 10-K for the year ended December 31, 2004)

10.8		Novation letter among the Trust, Trading Advisor and Managing Owner dated September 14, 2004 (incorporated by reference to Exhibit 10.7 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2004)

10.9		Letter Agreement Amending and Restating Brokerage Agreements between the Managing Owner and Prudential Financial Derivatives, LLC dated October 1, 2004 (incorporated by reference to Exhibit 10.7 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2004)

10.10		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)

10.11		Amendment No. 2 to the Services Agreement between Spectrum Global Fund Administration, L.L.C. and Registrant dated (incorporated by reference to Exhibit 10.1 to Form 8-K, File No. 000-32687, filed on March 2, 2009)

13.1		Registrant’s 2009 Annual Report (with the exception of the information and data incorporated by reference in Items 5, 7 and 8 of this Annual Report on Form 10-K, no other information or data appearing in Registrant’s 2008 Annual Report is to be deemed filed as part of this report) (incorporated by reference to Exhibit 13.1 to Registrant’s Form 10-K for the year ended December 31, 2009)

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 (incorporated by reference to Exhibit 14.1 to Registrant’s Form 10-K for the year ended December 31, 2009)

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

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)

[Remainder of page intentionally left blank]

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

WORLD MONITOR TRUST II – SERIES E
By:	Kenmar Preferred Investments Corp., ~~its Managing Owner~~
	By:	/s/ Kenneth A. Shewer		Date: May 13, 2010
	its Managing Owner
	By:	/s/ Kenneth A. Shewer		Date: August 10, 2010
		Name:	Kenneth A. Shewer
		Title:	Co-Chief Executive Officer ~~(Principal Executive Officer)~~
	By:	/s/ David K. Spohr		Date: May 13, 2010
			(Principal Executive Officer)
	By:	/s/ David K. Spohr		Date: August 10, 2010
		Name:	David K. Spohr
		Title:	Senior Vice President and Director of Fund Administration ~~(Principal Financial/Accounting Officer)~~
			(Principal Financial/Accounting Officer)

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Filing Compare · WORLD MONITOR TRUST II SERIES E