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:		June 30, 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:		333-08869

KENMAR GLOBAL TRUST

(Exact name of registrant as specified in its charter)


Delaware		06-6429854
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


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 (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No x

KENMAR GLOBAL TRUST

INDEX TO QUARTERLY REPORT ON FORM 10-Q

JUNE 30, 2010


		Page

PART I – FINANCIAL INFORMATION		4

Item 1.	Financial Statements	5

	Kenmar Global Trust

	Condensed Statements of Financial Condition as of June 30, 2010 (Unaudited) and December 31, 2009	6

	Condensed Schedules of Investments as of June 30, 2010 (Unaudited) and December 31, 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 Unitholders’ Capital (Unaudited) For the Six Months Ended June 30, 2010 and 2009	9

	Notes to Condensed Financial Statements (Unaudited)	10

	KMP Futures Fund I LLC (formerly known as WCM Pool LLC)

	Condensed Statements of Financial Condition as of June 30, 2010 (Unaudited) and December 31, 2009	25

	Condensed Schedules of Investments as of June 30, 2010 (Unaudited) and December 31, 2009	26

	Condensed Statements of Operations (Unaudited) For the Three Months and Six Months Ended June 30, 2010 and 2009	27

	Condensed Statements of Changes in Members’ Capital (Unaudited) For the Six Months Ended June 30, 2010 and 2009	28

	Notes to Condensed Financial Statements (Unaudited)	29

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	40

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	49

Item 4.	Controls and Procedures	49

PART II – OTHER INFORMATION		50

Item 1.	Legal Proceedings	50

Item 1.A.	Risk Factors	50

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50

Item 3.	Defaults Upon Senior Securities	50

Item 5.	Other Information	50

Item 6.	Exhibits:	50

PART I – FINANCIAL INFORMATION

Item 1.

Financial Statements

KENMAR GLOBAL TRUST

CONDENSED FINANCIAL STATEMENTS

June 30, 2010

KENMAR GLOBAL TRUST

CONDENSED STATEMENTS OF FINANCIAL CONDITION

June 30, 2010 (Unaudited) and December 31, 2009


	June 30, 2010		December 31, 2009
ASSETS
Equity in broker trading accounts:
Cash (See Note 1)	$	1,731,333	$	1,548,812
Unrealized gain on open futures contracts, net		53,238		72,225


Total equity in broker trading accounts		1,784,571		1,621,037

Cash and cash equivalents		2,028,970		2,454,265
Interest receivable, net		1,585		1,226
Note receivable, Managing Owner		585,193		585,193
Unrealized gain on open forward currency contracts, net		281		6,328


Total assets	$	4,400,600	$	4,668,049


LIABILITIES
Accounts payable and other	$	128,431	$	98,659
Managing Owner brokerage commissions and other transaction fees payable		32,966		37,210
Redemptions payable		114,286		91,171


Total liabilities		275,683		227,040


UNITHOLDERS’ CAPITAL (Net Asset Value)
Managing Owner – none and none Units outstanding at June 30, 2010 and December 31, 2009, respectively
Other Unitholders – 35,344.8319 and 36,868.1703 Units outstanding at June 30, 2010 and December 31, 2009, respectively		4,124,917		4,441,009

Total Unitholders’ capital (Net Asset Value)		4,124,917		4,441,009


Total liabilities and unitholders’ capital	$	4,400,600	$	4,668,049

Net Asset Value per Other Unitholders Unit


June 30, 2010		December 31, 2009
$	116.70	$	120.46

See accompanying notes.

-2-

KENMAR GLOBAL TRUST

CONDENSED SCHEDULES OF INVESTMENTS

June 30, 2010 (Unaudited) and December 31, 2009


	June 30, 2010					December 31, 2009
	Net Unrealized Gain (Loss) as a % of Unitholders’ Capital		Net Unrealized Gain (Loss)			Net Unrealized Gain (Loss) as a % of Unitholders’ Capital		Net Unrealized Gain (Loss)
OPEN FUTURES CONTRACTS

OPEN LONG FUTURES CONTRACTS
Description
Commodities	(0.02	)%	$	(825	)	0.38	%	$	16,964
Currency	(0.39	)%		(15,967	)	(0.38	)%		(16,696	)
Energy	(0.10	)%		(4,200	)	(0.07	)%		(3,297	)
Interest rates	2.12	%		87,351		(0.86	)%		(38,042	)
Metals	(1.17	)%		(48,212	)	1.57	%		69,632
Stock index	(0.38	)%		(15,476	)	0.84	%		37,382
Other	(0.02	)%		(917	)	0.00	%		0


Unrealized gain on open long futures contracts	0.04	%	$	1,754		1.48	%	$	65,943


OPEN SHORT FUTURES CONTRACTS

Description
Commodities	(0.15	)%	$	(6,330	)	(0.09	)%	$	(3,894	)
Currency	(0.47	)%		(19,303	)	0.87	%		38,763
Energy	0.00	%		(90	)	0.00	%		0
Interest rates	(0.17	)%		(7,097	)	0.27	%		12,135
Metals	1.80	%		74,194		(1.02	)%		(45,602	)
Stock index	0.20	%		8,310		0.10	%		4,350
Other	0.04	%		1,800		0.01	%		530


Unrealized gain on open short futures contracts	1.25	%	$	51,484		0.14	%	$	6,282


Unrealized gain on open futures contracts, net	1.29	%	$	53,238		1.62	%	$	72,225


OPEN FORWARD CURRENCY CONTRACTS

Description

Long forward currency contracts	0.02	%	$	939		(0.16	)%	$	(7,146	)
Short forward currency contracts	(0.01	)%		(658	)	0.30	%		13,474


Unrealized gain on open forward currency contracts, net	0.01	%	$	281		0.14	%	$	6,328

See accompanying notes.

-3-

KENMAR GLOBAL TRUST

CONDENSED STATEMENTS OF OPERATIONS

For the Three Months Ended June 30, 2010 and 2009 and

For the Six Months Ended June 30, 2010 and 2009

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
NET LOSS FROM TRUST OPERATIONS
TRADING GAINS (LOSSES)
Realized	$	150,943		$	(16,862	)	$	201,932		$	(5,553	)
Change in unrealized		(328,667	)		52,266			(25,034	)		(159,714	)
Brokerage commissions		(7,586	)		(8,768	)		(17,492	)		(15,428	)


Net gain (loss) from trading		(185,310	)		26,636			159,406			(180,695	)


NET INVESTMENT LOSS
INCOME
Interest income		5,188			4,863			10,057			10,350


EXPENSES
Managing Owner brokerage commissions		105,455			129,323			202,738			271,075
Operating expenses		56,513			55,009			103,490			98,738


Total expenses		161,968			184,332			306,228			369,813


Net investment loss		(156,780	)		(179,469	)		(296,171	)		(359,463	)


NET LOSS FROM TRUST OPERATIONS		(342,090	)		(152,833	)		(136,765	)		(540,158	)


NET LOSS ALLOCATED FROM KMP FUTURES FUND I LLC:
REVENUES
Realized		0			(19,445	)		0			(11,933	)
Change in unrealized		0			(208	)		0			(10,019	)
Interest income		0			0			0			36


Total losses		0			(19,653	)		0			(21,916	)


EXPENSES
Brokerage commissions and other transaction fees		0			109			0			250
Advisor profit shares		0			0			0			201
Management fees		0			1,389			0			4,163
Operating expenses		0			471			0			1,707


Total expenses		0			1,969			0			6,321


NET LOSS ALLOCATED FROM KMP FUTURES FUND I LLC		0			(21,622	)		0			(28,237	)


NET LOSS	$	(342,090	)	$	(174,455	)	$	(136,765	)	$	(568,395	)


NET LOSS PER WEIGHTED AVERAGE UNITHOLDERS UNIT
Net loss per weighted average Unitholders Unit	$	(9.46	)	$	(4.54	)	$	(3.76	)	$	(14.67	)


Weighted average number of Unitholders Units outstanding		36,147			38,435			36,417			38,734

See accompanying notes.

-4-

KENMAR GLOBAL TRUST

CONDENSED STATEMENTS OF CHANGES IN UNITHOLDERS’ CAPITAL

For the Six Months Ended June 30, 2010 and 2009

(Unaudited)


	Total Number of Units		Unitholders’ Capital
	Total Number of Units		Managing Owner			Other Unitholders			Total
Six Months Ended June 30, 2010

Balances at December 31, 2009	36,868.1703		$	0		$	4,441,009		$	4,441,009

Redemptions	(1,523.3384	)		0			(179,327	)		(179,327	)

Net loss for the six months ended June 30, 2010				0			(136,765	)		(136,765	)


Balances at June 30, 2010	35,344.8319		$	0		$	4,124,917		$	4,124,917


Six Months Ended June 30, 2009

Balances at December 31, 2008	39,218.9799		$	64,598		$	6,057,357		$	6,121,955

Redemptions	(815.3969	)		(60,418	)		(60,617	)		(121,035	)

Net loss for the six months ended June 30, 2009				(4,180	)		(564,215	)		(568,395	)


Balances at June 30, 2009	38,403.5830		$	0		$	5,432,525		$	5,432,525

See accompanying notes.

-5-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General Description of the Fund

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

Effective January 1, 2007, the Fund contributed a portion of its net assets to KMP Futures Fund I LLC (formerly known as WCM Pool LLC) (the “Company”) and received a voting membership interest in the Company. The Company was formed to function as an aggregate trading vehicle and engages in the speculative trading of futures, forward and option contracts. Effective September 30, 2009, the Fund fully redeemed its membership interest from the Company.

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. As the Fund’s Managing Owner, Kenmar Preferred conducts and manages the business of the Fund. Kenmar Preferred also had been delegated administrative authority over the operations of the Company. The financial statements of the Company, including the condensed schedules of investments, are included in Section II of these financial statements and should be read in conjunction with the Fund’s financial statements.

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

Regulation

As a registrant with the Securities and Exchange Commission (“SEC”), the Fund is subject to the regulatory requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934. As a commodity pool, the Fund is subject to the regulations of the Commodity Futures Trading Commission (“CFTC”), an agency of the U.S. government which regulates most aspects of the commodity futures industry; rules of the National Futures Association (“NFA”), an industry self-regulatory organization; and the requirements of the various commodity exchanges where the Fund and Company execute or executed transactions. Additionally, the Fund and Company are subject to the requirements of the Futures Commission Merchants and interbank market makers through which the Fund and Company trade or traded.

-6-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 unitholders’ 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 condensed statements of financial position of the Fund as of June 30, 2010 and the results of its operations for the Second Quarter 2010, Second Quarter 2009, Year-To-Date 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 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 condensed 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 the Fund are prepared in accordance with U.S. GAAP. Such principles require Kenmar Preferred to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Commodity futures and forward 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) is offset when reflected in the financial statements since the contracts are executed with the same counter party under a master netting arrangement. The market value of each contract is based upon the closing quotation on the exchange, clearing firm or bank on, or through, which the contract is traded. Any change in net unrealized gain or loss during the current period is reported in the statement of operations. Realized gains and losses on commodity transactions are recognized in the period in which the contracts are closed. Brokerage commissions paid directly to brokers are reflected as “brokerage commissions” in the condensed statements of operations, include exchange and other trading fees, and are charged to expense when incurred.

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

For the Second Quarter ended June 30, 2009, the Fund indirectly earned income or loss through its investment in the Company (see Note 5).

-7-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting (Continued)

The Fund has elected not to provide a condensed statements of cash flows since substantially all of the Fund’s investments are highly liquid and carried at fair value, the Fund has little or no debt and a condensed statements of changes in unitholders’ capital is provided.

Consistent with standard business practices in the normal course of business, the Fund has provided general indemnifications to the Managing Owner, its commodity trading advisors and others when they act, in good faith, in the best interests of the Fund. The Fund is unable to develop an estimate of the maximum potential amount of 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.

The Fund 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).

The Fund 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 third-party data providers such as 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 measured at fair value using the fair value hierarchy:


June 30, 2010	Level 1		Level 2		Level 3		Total
Assets:
Unrealized gain on open futures contracts, net	$	53,238	$	0	$	0	$	53,238
Unrealized gain on open forward currency contracts, net	$	0	$	281	$	0	$	281

December 31, 2009	Level 1		Level 2		Level 3		Total
Assets:
Unrealized gain on open futures contracts, net	$	72,225	$	0	$	0	$	72,225
Unrealized gain on open forward currency contracts, net	$	0	$	6,328	$	0	$	6,328

-8-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Recent Accounting Pronouncements

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 Fund’s 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 Fund’s financial statements.

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 June 30, 2010 and December 31, 2009, restricted cash totaled $346,971 and $493,598, respectively. The Fund receives interest on all cash balances held by the bank and clearing brokers at prevailing rates. In addition, the Fund was allocated its pro-rata share of interest from the Company for the Second Quarter 2009 and Year-to-Date 2009.

Income Taxes

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

The Fund 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 the Fund’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. The Fund 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.

-9-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 1.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Investment in KMP Futures Fund I LLC

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

Profit and Loss Allocations, Distributions and Redemptions

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

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

Foreign Currency Transactions

The Fund’s functional currency is the U.S. dollar; however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect at the date of the condensed statements of financial condition. Income and expense items denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect during the period. Gains and losses resulting from the translation to U.S. dollars are reported in the condensed statements of operations under the caption realized.

Interest Income

Interest income is recorded on an accrual basis.

Redemptions Payable

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

-10-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2.

MANAGING OWNER

The Managing Owner conducts and manages the business of the Fund. Effective December 1, 2008, the Trust Agreement no longer requires the Managing Owner to maintain a capital account equal to 1% of the total capital accounts of the Fund. As such, the Managing Owner redeemed all its Units in the Fund in 2009.

The Managing Owner is paid monthly brokerage commissions (“Managing Owner Brokerage Commissions”) equal to 1/12 of 10% (10% annually) of the Fund’s beginning of month Net Asset Value on the first $25 million of Net Asset Value and 1/12 of 9% (9% annually) of the Fund’s beginning of month Net Asset Value in excess of $25 million. The Managing Owner, in turn, pays substantially all actual costs of executing the Fund’s trades, selling commissions and trailing commissions to selling agents, and fees to the commodity trading advisors. Managing Owner Brokerage Commissions are reduced by brokerage commissions and other trading fees paid directly to brokers by the Fund, as well as management fees allocated from the Company. Excluded from the Managing Owner Brokerage Commissions are the Transtrend or Company incentive fee payments.

The Managing Owner is paid an incentive fee equal to 5% of “New Overall Appreciation” (which is defined in the Trust Agreement and excludes interest income) as of each fiscal year-end and upon redemption of Units. The Managing Owner earned no incentive fees during the Second Quarter 2010 and 2009 and Year-to-Date 2010 and 2009.

Note 3.

RELATED PARTIES

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

The expenses incurred by the Fund for services performed by the Managing Owner for the Fund were:


	Three Months Ended June 30,				Six Months Ended June 30,
	2010		2009		2010		2009
Commissions	$	105,455	$	129,323	$	202,738	$	271,075
General and administrative		14,004		12,735		30,779		22,240


Total	$	119,459	$	142,058	$	233,517	$	293,315

Expenses payable to the Managing Owner and its affiliates (which are included in accounts payable and other and Managing Owner brokerage commissions and other transaction fees payable on the condensed statements of financial condition) as of June 30, 2010 and December 31, 2009 were $36,259 and $42,818, respectively.

-11-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 3.

RELATED PARTIES (CONTINUED)

On September 24, 2007, the Fund and the Managing Owner entered into a Purchase Agreement (the “Purchase Agreement”), effective as of August 10, 2007, whereby the Managing Owner acquired all the Fund’s rights, title and interest to the Investment Advisory Agreement (“Advisory Agreement”) dated February 11, 2004, by and between the Fund and Sentinel Management Group, Inc. (“Sentinel”), an SEC-registered investment adviser and a CFTC-registered futures commission merchant, and to the Fund’s right, title and interest to the Fund’s deposits in an account (the “Account”) managed by Sentinel, including the Fund’s rights to the funds in the Account, including all claims related thereto against Sentinel (the “Asset”). The purchase price for the Asset was $1,685,193 (the “Purchase Price”), which represented the recorded value of the Fund’s deposit in the Account as reported to the Fund by Sentinel at the close of business on August 10, 2007, the business day immediately preceding the day on which withdrawals from the Account were suspended by Sentinel. The payment of the Purchase Price by the Managing Owner to the Fund was paid by a secured Demand Promissory Note (the “Note”) made by the Managing Owner in favor of the Fund. The interest rate on the Note is the Wall Street Journal Prime Rate (3.25% at June 30, 2010) and resets monthly. Interest is payable monthly no later than the first business day of the subsequent month. The Note was secured by a Security Agreement whereby the Managing Owner granted the Fund a first priority interest in the Asset to secure payment of the Note.

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

Through June 30, 2008, the Managing Owner paid the Fund principal of $1,100,000 on the Note. No additional payments have been received from the Managing Owner through June 30, 2010, leaving $585,193 of note receivable from the Managing Owner which is reflected on the June 30, 2010 condensed statement of financial condition. Interest receivable from the Managing Owner on the Note as of June 30, 2010 was $1,585.

Prior to February 23, 2009, any portion of the principal amount which was not demanded by the Fund prior to August 31, 2009, would be due and payable by the Managing Owner, with all accrued and unpaid interest thereon, on August 31, 2009.

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

-12-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 3.

RELATED PARTIES (CONTINUED)

Effective April 30, 2010, the Managing Owner and the Fund agreed to modify the terms of the Note, such that fifty percent (50%) of the outstanding principal amount of the Note, along with all accrued and unpaid interest therein, shall be due and payable by the Managing Owner on December 31, 2010 and fifty percent (50%) of the outstanding principal amount of the Note, along with all accrued and unpaid interest therein, shall be due and payable by the Managing Owner on December 31, 2011.

In addition, the Fund and Kenmar Preferred (the “Pledgor”) entered into a pledge agreement dated April 30, 2010 whereby Kenmar Preferred pledged to the Fund, and granted the Fund a continuing security interest in, all right, title, claim and interest of the Pledgor in and to (a) the management fee payable by World Monitor Trust III Series J to Kenmar Preferred pursuant to Section 4.9 of the Second Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust III Series J, dated March 31, 2010 (the “WMT-III Management Fee”) and (b) all rights, powers and privileges of Kenmar Preferred under or with respect to the WMT-III Management Fee.

No default has existed or currently exists on the note receivable from the Managing Owner. If a default existed, the note receivable from the Managing Owner in the amount of $585,193 would be offset by $25,884 of brokerage commissions payable to the Managing Owner as of June 30, 2010.

Note 4.

COMMODITY TRADING ADVISORS

The Fund has or had advisory agreements with various commodity trading advisors pursuant to which the Fund pays quarterly profit shares of 20% of Trading Profit (as defined in each respective advisory agreement). For the six months ended June 30, 2010 and 2009, incentive fees earned by various commodity trading advisors totaled $0 and $201, respectively, of which $0 and $0 was payable at June 30, 2010 and 2009.

Note 5.

INVESTMENT IN THE COMPANY

Effective January 1, 2007, the Fund invested a portion of its assets in the Company. The Fund fully redeemed its assets from the Company as of September 30, 2009. The investment in the Company was subject to the Organization Agreement of the Company.

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


	Net Asset Value December 31, 2008		Loss*			Redemptions			Net Asset Value June 30, 2009
KMP Futures Fund I LLC	$	638,493	$	(28,237	)	$	(451,607	)	$	158,649

Earnings include $(10,019) for the six months ended June 30, 2009, attributable to the change in unrealized losses.

-13-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 6.

SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS

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

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

The fair value of the Fund’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.

The trading revenue of the Fund’s derivatives by instrument type, as well as the location of those gains and losses on the condensed statements of operations, for the Second Quarter 2010 and 2009 and Year-to-Date 2010 and 2009 is as follows:


	Trading Revenue Second Quarter 2010			Trading Revenue Second Quarter 2009*			Trading Revenue Year-to-Date 2010			Trading Revenue Year-to-Date 2009*
Type of Instrument

Commodities Contracts	$	(68,276	)	$	71,641		$	(59,851	)	$	(36,675	)
Currencies Contracts		(61,324	)		116,633			90,911			74,846
Energy Contracts		(152,013	)		(100,172	)		(68,629	)		(21,594	)
Equity Contracts		417			0			2,516			0
Interest Rate Contracts		274,939			(65,438	)		377,981			(130,050	)
Metals Contracts		19,557			(30,053	)		17,122			(61,168	)
Stock Indices Contracts		(165,285	)		34,427			(159,958	)		5,551
Other Contracts		(1,750	)		(3,845	)		(5,772	)		(3,845	)
Forward Currency Contracts		(23,989	)		12,211			(17,422	)		7,668

Total	$	(177,724	)	$	35,404		$	176,898		$	(165,267	)


Line item in Condensed Statements of Operations

Realized	$	150,943		$	(16,862	)	$	201,932		$	(5,553	)
Change in unrealized		(328,667	)		52,266			(25,034	)		(159,714	)


Total	$	(177,724	)	$	35,404		$	176,898		$	(165,267	)

Excludes income from the Company.

As of June 30, 2010 and December 31, 2009, the total number of open futures contracts and forward contract was approximately 280 and 289 respectively.

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

-14-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

In addition, the Fund has cash on deposit with financial institutions and in broker trading accounts. In the event of a financial institution’s insolvency, recovery of cash on deposit may be limited to account insurance or other protection afforded such deposits. The Managing Owner has established procedures to actively monitor market risk and minimize credit risk, although there can be no assurance that it will, in fact, succeed in doing so. The Unitholders bear the risk of loss only to the extent of the market value of their respective investments and, in certain specific circumstances, distributions and redemptions received.

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

Market Risk

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

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

Credit Risk

When entering into futures or forward contracts (including foreign exchange), the Fund is exposed to credit risk that the counterparty to the contract will not meet its obligations. The counterparty for futures contracts traded on U.S. and most foreign futures exchanges is the clearinghouse associated with the particular exchange. In general, clearinghouses are backed by their corporate members who are required to share any financial burden resulting from the non-performance by one of their members and, as such, should significantly reduce this credit risk. In cases where the clearinghouse is not backed by the clearing members (i.e., some foreign exchanges), it is normally backed by a consortium of banks or other financial institutions. On the other hand, there is concentration risk on forward transactions, entered into by the Fund as the Fund’s interbank market maker, is the sole counterparty. The Fund has entered into a master netting agreement with its interbank market maker and, as a result, when applicable, presents unrealized gains and losses on open forward positions as a net amount in the condensed statements of financial condition.

-15-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

Credit Risk (Continued)

The amount at risk associated with counterparty non-performance of all of the Fund’s contracts is the net unrealized gain included in the condensed statements of financial condition; however, counterparty non-performance on only certain of the Fund’s contracts may result in greater loss than non-performance on all of the Fund’s contracts. There can be no assurance that any counterparty, clearing member or clearinghouse will meet its obligations to the Fund.

The Managing Owner attempts to minimize both credit and market risks by requiring the Fund and the Company 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.

The Fund’s futures commission merchant, in accepting orders for the purchase or sale of domestic futures contracts, is required by CFTC regulations to separately account for and segregate as belonging to the Fund all assets of the Fund relating to domestic futures trading and is not allowed to commingle such assets with its other assets. At June 30, 2010 and December 31, 2009, such segregated assets totaled $1,634,247 and $1,521,992, respectively. Part 30.7 of the CFTC regulations also requires the Fund’s futures commission merchant to secure assets of the Fund related to foreign futures trading which totaled $150,324 and $99,045 at June 30, 2010 and December 31, 2009, respectively. There are no segregation requirements for assets related to forward trading.

As of June 30, 2010, all of the Fund’s open futures contracts mature within thirty-three months.

-16-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 8.

FINANCIAL HIGHLIGHTS

The following information presents per unit operating performance data and other supplemental financial data for the three months and six months ended June 30, 2010 and 2009. This information has been derived from information presented in the financial statements.


	Three Month Ended June 30,						Six Months Ended June 30,
	2010 (Unaudited)			2009 (Unaudited)			2010 (Unaudited)			2009 (Unaudited)
Per Unit Performance
(for a Unit outstanding throughout the entire period)

Net asset value per Unit at beginning of period	$	126.11		$	146.00		$	120.46		$	156.10


Income (loss) from operations:⁽⁵⁾
Gain (loss) from trading⁽¹⁾		(4.86	)		0.41			4.85			(4.80	)
Net investment loss^{(1), (6), (7)}		(4.55	)		(4.95	)		(8.61	)		(9.84	)


Total loss from operations		(9.41	)		(4.54	)		(3.76	)		(14.64	)


Net asset value per Unit at end of period	$	116.70		$	141.46		$	116.70		$	141.46


Total Return⁽²⁾		(7.46	)%		(3.11	)%		(3.12	)%		(9.38	)%


Supplemental Data

Ratios to average net asset value:⁽⁵⁾
Expenses prior to incentive fees⁽³⁾		15.34	%		14.08	%		14.83	%		13.59	%
Incentive fees^{(2), (6)}		0.00	%		0.00	%		0.00	%		0.00	%


Total expenses		15.34	%		14.08	%		14.83	%		13.59	%


Net investment loss^{(3), (4)}		(14.87	)%		(13.73	)%		(14.37	)%		(13.23	)%

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

⁽¹⁾

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

⁽²⁾

Not annualized.

⁽³⁾

Annualized.

⁽⁴⁾

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

⁽⁵⁾

Includes the Fund’s proportionate share of income and expenses from KMP Futures Fund I LLC, for the period ending June 30, 2009.

⁽⁶⁾

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

⁽⁷⁾

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

-17-

KENMAR GLOBAL TRUST

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 9.

SUBSEQUENT EVENT

From July 1, 2010 through August 10, 2010, there were redemptions of $9,144.

-18-

SECTION II

KMP FUTURES FUND I LLC

CONDENSED FINANCIAL STATEMENTS

June 30, 2010

KMP FUTURES FUND I LLC

CONDENSED STATEMENTS OF FINANCIAL CONDITION

June 30, 2010 (Unaudited) and December 31, 2009


	June 30, 2010		December 31, 2009
ASSETS
Cash and cash equivalents (See Note 2)	$	22,033,314	$	23,723,816
Interest receivable		0		54
Receivable from Managing Owner		57,282		0
Commodity options owned, at fair value (premiums paid $165 and $300 at June 30, 2010 and December 31, 2009, respectively)		825		60
Net unrealized gain on open futures contracts		267,116		105,410


Total assets	$	22,358,537	$	23,829,340


LIABILITIES
Commodity options written, at fair value (premiums received $335 and $600 at June 30, 2010 and December 31, 2009, respectively)	$	1,795	$	120
Accrued expenses payable		183,184		135,558
Management fees payable		37,004		39,943
Redemptions payable (December 31, 2009 includes $23,047,803 to be converted to individual membership)		203,155		23,653,719


Total liabilities		425,138		23,829,340


MEMBERS’ CAPITAL (Net Asset Value)		21,933,399		0


Total liabilities and members’ capital	$	22,358,537	$	23,829,340

See accompanying notes.

-2-

KMP FUTURES FUND I LLC

CONDENSED SCHEDULES OF INVESTMENTS

June 30, 2010 (Unaudited) and December 31, 2009


	June 30, 2010					December 31, 2009
	Net Unrealized Gain (Loss) as a % of Members’ Capital		Net Unrealized Gain (Loss)			Net Unrealized Gain (Loss) as a % of Members’ Capital*		Net Unrealized Gain (Loss)
Futures Contracts

Futures contracts purchased:
Commodities	(1.00	)%	$	(220,392	)	0.54	%	$	127,366
Currencies	0.23	%		50,238		(0.36	)%		(85,037	)
Interest rates	2.62	%		575,027		0.01	%		1,441
Stock indices	(0.21	)%		(45,595	)	0.50	%		119,001


Net unrealized gain on futures contracts purchased	1.64	%		359,278		0.69	%		162,771


Futures contracts sold:
Commodities	0.28	%		61,306		(0.23	)%		(53,262	)
Currencies	(0.88	)%		(193,537	)	(0.02	)%		(4,080	)
Interest rates	(0.01	)%		(1,396	)	0.00	%		1,120
Stock indices	0.19	%		41,465		0.00	%		(1,139	)


Net unrealized loss on futures contracts sold	(0.42	)%		(92,162	)	(0.25	)%		(57,361	)


Net unrealized gain on open futures contracts	1.22	%	$	267,116		0.44	%	$	105,410


	Fair Value as a % of Members’ Capital		Fair Value			Fair Value as a % of Members’ Capital*		Fair Value
Purchased Options on Futures Contracts:

Fair value of options purchased	0.00	%	$	825		0.00	%	$	60


Commodity options owned, at fair value (premiums paid $165 and $300 at June 30, 2010 and December 31, 2009, respectively)	0.00.	%	$	825		0.00	%	$	60


Written Options on Futures Contracts:

Fair value of options written	(0.01	)%	$	(1,795	)	0.00	%	$	(120	)


Commodity options written, at fair value (premiums received $335 and $600 at June 30, 2010 and December 31, 2009, respectively)	(0.01	)%	$	(1,795	)	0.00	%	$	(120	)

*	Includes redemptions payable at December 31, 2009

See accompanying notes.

-3-

KMP FUTURES FUND I LLC

CONDENSED STATEMENTS OF OPERATIONS

For the Three Months and Six Months Ended June 30, 2010 and 2009

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
REVENUES
Realized	$	1,251,459		$	(2,214,038	)	$	1,531,912		$	(2,039,238	)
Change in unrealized		(640,737	)		134,831			160,666			(169,124	)
Interest income		3,259			103			3,630			1,096


Total revenues (losses)		613,981			(2,079,104	)		1,696,208			(2,207,266	)


EXPENSES
Brokerage commissions fees		7,630			12,330			18,003			16,507
Management fees		334,128			0			672,050			0
Trading Advisor Management fees		111,697			154,014			226,048			233,798
Incentive fees		0			0			0			593
Operating expenses		133,180			52,913			207,292			88,301


Total expenses		586,635			219,257			1,123,393			339,199

General and administrative expenses borne by the Managing Owner and affiliates		(57,279	)		0			(57,279	)		0


Net expenses		529,356			219,257			1,066,114			339,199


NET INCOME (LOSS)	$	84,625		$	(2,298,361	)	$	630,094		$	(2,546,465	)

See accompanying notes.

-4-

KMP FUTURES FUND I LLC

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

For the Six Months Ended June 30, 2010 and 2009

(Unaudited)


	Members’ Capital
Six months ended June 30, 2010
Members’ capital at December 31, 2009	$	0
Additions		23,047,803
Redemptions		(1,744,498	)
Net income for the six months ended June 30, 2010		630,094

Members’ capital at June 30, 2010	$	21,933,399


	Members’ Capital
	Member DFT I			Member KGT			Member FST			Member Series D			Member Series F			Total
Six months ended June 30, 2009

Members’ capital at December 31, 2008	$	11,561,900		$	638,493		$	3,929,018		$	0		$	0		$	16,129,411

Additions		0			0			0			4,887,000			14,195,000			19,082,000

Redemptions		(1,198,094	)		(451,607	)		(475,167	)		(624,093	)		(2,483,600	)		(5,232,561	)

Net loss for the six months ended June 30, 2009		(927,599	)		(28,237	)		(308,085	)		(335,128	)		(947,416	)		(2,546,465	)


Members’ capital June 30, 2009	$	9,436,207		$	158,649		$	3,145,766		$	3,927,779		$	10,763,984		$	27,432,385

See accompanying notes.

-5-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

Note 1.

ORGANIZATION

General Description of the Company

KMP Futures Fund I LLC, formerly known as WCM Pool LLC (the “Company”) is a limited liability company organized under the laws of Delaware on November 20, 2006 which commenced operations on January 1, 2007. The Company will terminate on December 31, 2056 unless terminated sooner under the provisions of the Organization Agreement. The Company was formed to engage in the speculative trading of a diversified portfolio of futures contracts, options on futures contracts and forward currency contracts and may, from time to time, engage in cash and spot transactions. The fiscal year end of the Company is December 31.

Effective May 5, 2009, Preferred Investment Solutions Corp. changed its name to Kenmar Preferred Investments Corp. (“Kenmar Preferred” or “Managing Member”). Kenmar Preferred refers to either Preferred Investment Solutions Corp. or Kenmar Preferred Investments Corp., depending on the applicable period discussed. Kenmar Preferred is the managing owner of each of the Company’s members, is the Managing Member of the Company, and has been delegated administrative authority over the operations of the Company.

As of January 1, 2009, the Company consisted of three members: Diversified Futures Trust I (“Member DFT I”) Futures Strategic Trust (“Member FST”), and Kenmar Global Trust (“Member KGT”). On April 1, 2009 World Monitor Trust II Series D (“Member Series D”) and World Monitor Trust II Series F (“Member Series F”) received a voting membership interest in the Company. Member DFT I, Member FST, Member KGT, Member Series D and Member Series F are collectively (the “Members”). Effective September 30, 2009, Member KGT fully redeemed from the Company (See Note 9).

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

Effective November 12, 2009, the Company became a reporting company pursuant to the Securities Exchange Act of 1934. Moreover, as a commodity pool, the Company became subject to the record keeping and reporting requirements of the CFTC and the National Futures Association (“NFA”).

The Trading Advisor

The Company operates under an advisory agreement with Winton Capital Management Limited (the “Trading Advisor”) to make the trading decisions for the Company. The Trading Advisor manages approximately 100% of the assets of the Company pursuant to its Diversified Program Portfolio (See Note 9).

-6-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

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 members’ capital for the Year-To-Date 2010 and Year-To-Date 2009, are unaudited. In the opinion of the Managing Member, the condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to state fairly the financial position of the Company as of June 30, 2010 and the results of its operations for the Second Quarter 2010, Second Quarter 2009, Year-To-Date 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.

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

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with a 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 Company’s annual report on Form 10-K filed with the SEC for the year ended December 31, 2009.

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 counterparty 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 the Company for open forward and option positions will be provided by its administrator, who obtains market quotes from data vendors and third parties.

Any change in net unrealized gain or loss during the current period is reported in the 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 Company has elected not to provide a statement of cash flows since substantially all of the Company’s investments are highly liquid and carried at fair value, the Company has little or no debt and a condensed statement of changes in members’ capital (net asset value) is provided.

Consistent with standard business practices in the normal course of business, the Company has provided general indemnifications to Kenmar Preferred, its Trading Advisor and others when they act, in good faith, in the best interests of the Company. The Company is unable to develop an estimate of the maximum potential amount of 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.

The Company 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).

-7-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting (Continued)

The Company considers prices for exchange traded commodity futures and options contracts to be based on quoted prices in active markets for identical assets (Level 1) and reflects the settlement price for each contract as of the close on the last business day of the reporting period. The values of forwards, swaps and certain options contracts for which market quotations are not readily available are priced by third-party data providers such as Bloomberg, Reuters, and or Super Derivatives who derive fair values for those assets from models with observable inputs (Level 2).

The market values of forward currency (non-exchange traded) contracts (Level 2) 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 from third party data providers i.e. Bloomberg and Interactive Data Corporation (Level 2).

The market value of option (non-exchange traded) (Level 2) contracts is calculated by applying an industry-standard adaptation of the Black-Scholes options valuation model to foreign currency options, using as input, the spot prices, interest rates and option implied volatilities quoted as of 4:00 P.M. (EST) on the last business day of the reporting period from its third-party data provider, Super Derivates. Any change in net unrealized gain or loss from the preceding period is reported in the condensed statements of operations. When the Company writes an option, an amount equal to the premium received by the Company is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of option written.

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:


June 30, 2010	Level 1		Level 2			Level 3		Total
Assets:
Net unrealized gain on open futures contracts	$	267,116	$	0		$	0	$	267,116
Commodity options owned, at fair value	$	0	$	825		$	0	$	825

Liabilities:
Commodity options written, at fair value	$	0	$	(1,795	)	$	0	$	(1,795	)

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

Liabilities:
Commodity options written, at fair value	$	0	$	(120	)	$	0	$	(120	)

-8-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Recent Accounting Pronouncements

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 Company’s 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 Company’s financial statements.

Cash and Cash Equivalents

Cash represents amounts deposited with a bank and clearing broker, a portion of which is restricted for purposes of meeting margin requirements, which typically range from 0% to 35% of the notional amounts of the derivatives traded. As of June 30, 2010 and December 31, 2009, restricted cash totaled $1,599,808 and $1,628,359, respectively. The Company receives interest at prevailing interest rates on all cash balances held by the clearing broker and bank.

Income Taxes

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

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

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

Capital Accounts

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

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

-9-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Foreign Currency Transactions

The Company’s functional currency is the U.S. dollar; however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the rates in effect at the date of the 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.

Interest Income

Interest income is recorded on an accrual basis

Redemptions Payable

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

Note 3.

FEES

Operating Expenses

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

Management and Incentive Fees

The Company pays the Trading Advisor a base fee at an annual rate of 2% of the Company’s Net Assets determined as of the close of business each month. For purposes of determining the management fee, any distributions, redemptions or reallocation of assets made as of the last day of the month were added back to the assets and there was no reduction for (i) the management fees calculated or (ii) any accrued but unpaid incentive fees due the Trading Advisor (See Note 9).

Effective January 1, 2010, the Company’s management fees to Kenmar Preferred (previously administrative services fees paid to the Members) and expense cap are both calculated on the Net Assets of the Company at rates of 6.00% and 1.50% per annum, respectively. Investors continue to be able to redeem their capital on a monthly basis with the proper redemption notification.

Additionally, the Company pays the Trading Advisor a quarterly incentive fee of 20% (the “Incentive Fee”) of “New High Net Trading Profits” (as defined in the Advisory Agreement). No incentive fees were earned during Second Quarter 2010, Second Quarter 2009 and Year-To-Date 2010. Incentive fees of $593 were earned during Year-To-Date 2009 (See Note 9).

Commissions

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

-10-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 4.

RELATED PARTIES

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

The expenses incurred by the Company for services performed by Kenmar Preferred for the Company were:


	Three Months Ended June 30,				Six Months Ended June 30,
	2010		2009		2010		2009
General and administrative	$	27,502	$	8,810	$	58,668	$	17,080

Expenses payable to Kenmar Preferred and its affiliates (which are included in accrued expenses payable on the condensed statements of financial condition) as of June 30, 2010 and December 31, 2009 were $14,250 and $28,601, respectively.

Note 5.

DEPOSITS WITH COMMODITY BROKER AND PRIME BROKER

The Company deposits funds with a commodity broker subject to CFTC regulations and various exchange and commodity broker requirements. Margin requirements are satisfied by the deposit of cash with such commodity broker.

The Company also deposits funds with a prime broker. Margin requirements are satisfied by the deposit of cash with such prime broker.

Note 6.

SUBSCRIPTIONS AND REDEMPTIONS

Investments in the Company are made subject to the terms of the Organization Agreement.

A Member is able to request and receive redemption of capital, subject to the terms in the Organization Agreement.

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS

The fair value of the Company’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.

-11-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

The trading revenue of the Company’s derivatives by instrument type, as well as the location of those gains and losses on the condensed statements of operations, for the Second Quarter 2010 and 2009 and Year-To-Date 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	$	(316,217	)	$	(506,311	)	$	(47,513	)	$	(441,467	)
Currencies Contracts		435,093			(371,611	)		772,386			(572,748	)
Interest Rate Contracts		1,144,819			(764,593	)		1,483,390			(840,419	)
Stock Indices Contracts		(654,123	)		(437,330	)		(517,770	)		(354,366	)
Purchased Options on Futures Contracts		(1,470	)		(500	)		(2,320	)		(500	)
Written Options on Futures Contracts		2,620			1,138			4,405			1,138


Total	$	610,722		$	(2,079,207	)	$	1,692,578		$	(2,208,362	)


Line item in Condensed Statements of Operations

Realized	$	1,251,459		$	(2,214,038	)	$	1,531,912		$	(2,039,238	)
Change in unrealized		(640,737	)		134,831			160,666			(169,124	)


Total	$	610,722		$	(2,079,207	)	$	1,692,578		$	(2,208,362	)

As of June 30, 2010 and December 31, 2009, the total number of futures contracts and option contracts was approximately 837 and 683 respectively.

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

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

Market Risk

Trading in futures and forward contracts (including foreign exchange) involves entering into contractual commitments to purchase or sell a particular commodity at a specified date and price. The gross or face amount of the contracts, which is typically many times that of the Company’s net assets being traded, significantly exceeds the Company’s future cash requirements since the Company intends to close out its open positions prior to settlement. As a result, the Company is generally subject only to the risk of loss arising from the change in the value of the contracts. As such, the Company considers the “fair value” of its derivative instruments to be the net unrealized gain or loss on the contracts. Market risk is influenced by a wide variety of factors, including government programs and policies, political and economic events, the level and volatility of interest rates, foreign currency exchange rates, the diversification effect among the derivative instruments the Company holds and the liquidity and inherent volatility of the markets in which the Company trades.

-12-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 7.

DERIVATIVE INSTRUMENTS AND ASSOCIATED RISKS (CONTINUED)

Credit Risk

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

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

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

The Company’s futures commission merchant, in accepting orders for the purchase or sale of domestic futures contracts, is required by CFTC regulations to separately account for and segregate as belonging to the Company all assets of the Company relating to domestic futures trading and is not allowed to commingle such assets with its other assets. At June 30, 2010 and December 31, 2009, such segregated assets totaled $3,747,330 and $19,213,546, respectively, which are included in cash and cash equivalents on the condensed statements of financial condition. Part 30.7 of the CFTC regulations also requires the Company’s futures commission merchant to secure assets of the Company related to foreign futures trading which totaled $59,010 and $163,718 at June 30, 2010 and December 31, 2009, respectively. There are no segregation requirements for assets related to forward trading.

As of June 30, 2010, all open futures contracts mature within twenty-seven months.

-13-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 8.

FINANCIAL HIGHLIGHTS

The following information presents the financial highlights of the Company for the three months and six months ended June 30, 2010 and 2009. This information has been derived from information presented in the condensed financial statements.


	Three Months Ended June 30, 2010 (Unaudited)		Six Months Ended June 30, 2010 (Unaudited)
	Member		Member
Total return:^{(1), (4)}

Total return before incentive fee	0.38	%	2.85	%
Incentive fee	0.00	%	0.00	%


Total return after incentive fee	0.38	%	2.85	%


Ratios to average net asset values:

Expenses prior to incentive fee⁽²⁾	9.55	%	9.55	%
Incentive fee⁽¹⁾	0.00	%	0.00	%


Total expenses and incentive fee	9.55	%	9.55	%


Net investment loss^{(2), (3)}	(9.49	)%	(9.52	)%

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

⁽¹⁾

Not annualized.

⁽²⁾

Annualized.

⁽³⁾

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

⁽⁴⁾

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

-14-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 8.

FINANCIAL HIGHLIGHTS (CONTINUED)


	Three Months Ended June 30, 2009 (Unaudited)										Six Months Ended June 30, 2009 (Unaudited)
	Member DFT I		Member KGT		Member FST		Member Series D		Member Series F		Member DFT I		Member KGT		Member FST		Member Series D⁽⁵⁾		Member Series F⁽⁵⁾
Total return:^{(1), (4)}

Total return before incentive fee	(7.06	)%	(7.06	)%	(7.06	)%	(7.06	)%	(7.06	)%	(8.56	)%	(8.56	)%	(8.56	)%	(7.06	)%	(7.06	)%
Incentive fee	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%	0.01	%	0.01	%	0.01	%	0.00	%	0.00	%


Total return after incentive fee	(7.06	)%	(7.06	)%	(7.06	)%	(7.06	)%	(7.06	)%	(8.55	)%	(8.55	)%	(8.55	)%	(7.06	)%	(7.06	)%


Ratios to average net asset values:

Expenses prior to incentive fee⁽²⁾	2.87	%	3.14	%	2.87	%	2.91	%	2.92	%	2.97	%	3.22	%	2.97	%	2.91	%	2.92	%
Incentive fee⁽¹⁾	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%	0.05	%	0.01	%	0.00	%	0.00	%


Total expenses and incentive fee	2.87	%	3.14	%	2.87	%	2.91	%	2.92	%	2.97	%	3.27	%	2.98	%	2.91	%	2.92	%


Net investment loss^{(2), (3)}	(2.87	)%	(3.14	)%	(2.87	)%	(2.91	)%	(2.92	)%	(2.95	)%	(3.20	)%	(2.95	)%	(2.91	)%	(2.92	)%

⁽¹⁾

Not annualized.

⁽²⁾

Annualized.

⁽³⁾

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

⁽⁴⁾

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

⁽⁵⁾

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

-15-

KMP FUTURES FUND I LLC

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

(Unaudited)

Note 9.

SUBSEQUENT EVENTS

From July 1, 2010 through August 10, 2010, there were redemptions of $371,012.

The Company has entered into a Trading Advisor Agreement with Graham Capital Management, L.P. (“Graham”), whereby, beginning July 1, 2010 Graham will manage a portion of the Company’s assets pursuant to its K4D-15V Program.

The Company will pay Graham a base fee at an annual rate of 2% of the Company’s Net Assets determined as of the close of business each month as defined in the Advisory Agreement. Additionally, the Company will pay Graham an incentive fee accrued monthly and paid quarterly of 22% for achieving “New High Net Trading Profits” (as defined in the Advisory Agreement).

-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 June 30, 2010 (“Second Quarter 2010”) includes forward-looking statements that reflect the current expectations of Kenmar Preferred Investments Corp., the managing owner of Kenmar Global Trust (“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

Registrant, a Delaware business trust, was organized under the Delaware Statutory Trust Act on July 17, 1996. Registrant’s trustee is Wilmington Trust Company. Registrant will terminate on December 31, 2026 unless terminated sooner as provided in the Fifth Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”). 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

Effective December 1, 2008, in accordance with the Trust Agreement, the Managing Owner is no longer required to maintain a capital account equal to 1% of the total capital accounts of the Registrant. As such, the Managing Owner redeemed its entire interest in the Registrant in 2009.

On September 24, 2007, the Registrant and the Managing Owner entered into a Purchase Agreement (the “Purchase Agreement”), effective as of August 10, 2007, whereby the Managing Owner acquired all the Registrant’s rights, title and interest to the Investment Advisory Agreement (“Advisory Agreement”) dated February 11, 2004, by and between the Registrant and Sentinel Management Group, Inc. (“Sentinel”), an SEC-registered investment adviser and a CFTC-registered futures commission merchant, and to the Registrant’s right, title and interest to the Registrant’s deposits in an account (the “Account”) managed by Sentinel, including the Registrant’s rights to the funds in the Account, including all claims related thereto against Sentinel (the “Asset”). The purchase price for the Asset was $1,685,193 (the “Purchase Price”), which represented the recorded value of the Registrant’s deposit in the Account as reported to the Registrant by Sentinel at the close of business on August 10, 2007, the business day immediately preceding the day on which withdrawals from the Account were suspended by Sentinel. The payment of the Purchase Price by the Managing Owner to the Registrant was paid by a secured Demand Promissory Note (the “Note”) made by the Managing Owner in favor of the Registrant. The interest rate on the Note is the Wall Street Journal Prime Rate 3.25% at June 30, 2010 and resets monthly. Interest is payable monthly no later than the first business day of the subsequent month. The Note was secured by a Security Agreement whereby the Managing Owner granted the Registrant a first priority interest in the Asset to secure payment of the Note.

any and all amounts due and owing then and in the future to the Managing Owner by the Registrant under the Registrant’s Trust Agreement, including, without limitation, the incentive fee (as defined in the Trust Agreement) and the net portion of any brokerage commissions after payment of related expenses until all amounts outstanding under the Note are paid in full and all other obligations have been paid or discharged.

Registrant entered into Amendment No. 2 dated April 30, 2010 to its Note with Kenmar Preferred to reflect that (i) fifty percent (50%) of the outstanding principal amount of the Note, along with all accrued and unpaid interest thereon, will be due and payable by Kenmar Preferred on December 31, 2010; and (ii) fifty percent (50%) of the outstanding principal amount of the Note, along with all accrued and unpaid interest thereon, will be due and payable by Kenmar Preferred on December 31, 2011.

In addition, Registrant and Kenmar Preferred entered into a Pledge Agreement dated April 30, 2010 whereby Kenmar Preferred pledged to Registrant, and granted Registrant a continuing security interest in, all right, title, claim and interest of the Pledgor in and to (a) the management fee payable by World Monitor Trust III - Series J to Kenmar Preferred pursuant to Section 4.9 of the Second Amended and Restated Declaration of Trust and Trust Agreement of World Monitor Trust III - Series J, dated March 31, 2010 (the “WMT-III Management Fee”) and (b) all rights, powers and privileges of Kenmar Preferred under or with respect to the WMT-III Management Fee.

Through June 30, 2010, the Managing Owner paid the Registrant principal of $1,100,000 on the Note, leaving $585,193 of note receivable from the Managing Owner which is reflected on the Registrant’s June 30, 2010 statement of financial condition. Interest receivable from the Managing Owner on the Note as of June 30, 2010 was $1,585.

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

The Trading Advisor and the Trading Vehicle

Through Second Quarter 2010, Registrant’s net assets were managed by Transtrend, B.V. (“Transtrend”).

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

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

The Trading Vehicle has entered into an advisory agreement (the “Trading Vehicle Advisory Agreement”) with Winton, whereby Winton makes the trading decisions for the Trading Vehicle and, in turn, Registrant, pursuant to Winton’s Diversified Program. The Advisory Agreement may be terminated for various reasons, including at the discretion of the Trading Vehicle. Registrant has allocated 0.00% of its net asset value to the Trading Vehicle as of June 30, 2010 after fully redeeming from the Trading Vehicle effective September 30, 2009. Registrant, through its prior investment in the Trading Vehicle, accrued and paid a monthly management fee equal to 0.16667% (2% annually) of the assets allocated to the Trading Advisor. Registrant, through its prior investment in the Trading Vehicle, paid the Trading Advisor an incentive fee of 20% of New High Net Trading Profits (as defined in the Advisory Agreement) generated by the Trading Vehicle. Incentive fees accrued monthly and were paid quarterly in arrears.

The term “Trading Advisor”, as used herein, refers either to Transtrend or Winton, depending upon the applicable period or context discussed. The term “Trading Advisory Agreement”, as used herein, refers to the Transtrend Advisory Agreement or Trading Vehicle Advisory Agreement, depending upon the applicable period or context discussed. Since the Registrant fully redeemed from the Trading Vehicle as detailed above, all references to Registrant’s investment in the Trading Vehicle are through September 30, 2009, the date of redemption.

Competition

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

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

Employees

Registrant has no employees. Management and administrative services for Registrant are performed by the Managing Owner or third parties pursuant to the Trust Agreement, as further discussed in Notes 3 and 4 of the Registrant’s 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 (“U.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 1 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 (“U.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. (EST) on the last business day of the reporting period. All values assigned by the administrator and confirmed by the Managing Owner are final and conclusive as to all of Registrant’s Unitholders. As such, if actual results vary from estimates used, they are not anticipated to have a material impact on the financial statements and related disclosures.

Registrant records all investments at fair value in its financial statements, with changes in fair value reported as a component of trading profits (losses) in the condensed 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. Registrant does not currently have any investments valued using Level 3 inputs.

Of the Registrant’s unrealized gains at June 30, 2010, $53,238 or 99.47% of Registrant’s unrealized gains at June 30, 2010 are classified as Level 1 and $281 or 0.53% as Level 2. $72,225 or 91.94% of the Registrant’s unrealized gains at December 31, 2009 are classified as Level 1 and $6,328 or 8.06% as Level 2. There are no Level 3 investments at June 30, 2010 or December 31, 2009.

guidance requires only additional disclosures, the adoption of the provisions effective January 1, 2011 will not impact the Registrant’s 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 Registrant’s financial statements.

Liquidity and Capital Resources

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

Subscriptions and Redemptions

Second Quarter 2010

Subscriptions of Limited Interests and General Interests for the Second Quarter 2010 were $0 and $0, respectively. Redemptions of Limited Interests and General Interests for the Second Quarter 2010 were $137,090 and $0, respectively.

Second Quarter 2009

Subscriptions of Limited Interests and General Interests for the quarter ended June 30, 2009 (“Second Quarter 2009”) were $0 and $0, respectively. Redemptions of Limited Interests and General Interests for the Second Quarter 2009 were $9,137 and $0, respectively.

Liquidity

At June 30, 2010, 100% of Registrant’s net investable assets were allocated to commodities trading. A significant portion of Registrant’s net assets is held in cash, which is used as margin for trading in commodities. In as much as the sole business of Registrant is to trade in commodities, Registrant continues to own such liquid assets to be used as margin. The clearing broker and bank credit Registrant with interest income on 100% of its average daily equity maintained in its accounts with the clearing broker and bank during each month at competitive interest rates.

The commodities contracts may be subject to periods of illiquidity because of market conditions, regulatory considerations and other reasons. For example, commodity exchanges limit fluctuations in certain commodity futures contract prices during a single day by regulations referred to as “daily limits.” During a single day, no trades may be executed at prices beyond the daily limit. Once the price of a futures contract for a particular commodity has increased or decreased by an amount equal to the daily limit, positions in the commodity can neither be taken nor liquidated unless traders are willing to effect trades at or within the limit. Commodity futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. Such market conditions could prevent the 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 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 and forward 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 10K 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 Second Quarter 2010 and Second Quarter 2009:

Second Quarter 2010

The Second Quarter of 2010 jolted the global financial markets. The economy took a backseat as the escalating sovereign debt problems in some Eurozone countries, questions about the European banking system and renewed misgivings about the ultimate fate of the euro dominated the financial markets. Economic data was simply not strong enough to overcome the negative influence of European developments. The tone of economic data deteriorated during the quarter. Consumer spending failed to follow up on that of the robust first quarter. After starting the quarter on a bright note, private payroll employment slipped back to a disappointing pace. Other labor market indicators also appeared to be stalling.

Commodities had a mixed quarter, which was surprising given the broad based risk aversion. While industrial commodities were hurt by the fears surrounding global growth prospects, agricultural commodities rallied thanks to strong emerging market demand and the unusually hot, dry weather.

Interest Rates: With all the stars lining up, global financial turmoil, disappointing U.S. growth and the renewed threat of deflation, U.S. Treasury bonds had their best quarter since the fourth quarter of 2008. Yields dropped below the 3% level for the first time since April 2009. The Federal Reserve kept policy unchanged throughout the quarter and there were no indications of imminent change in interest rate policy. The major Federal Reserve actions during the quarter were the reestablishment of the temporary dollar liquidity swaps with various central banks in order to contain the fallout from the Eurozone crisis. The European Central Bank, the Bank of England and the Bank of Japan kept key rates unchanged throughout the quarter as well. The Reserve Bank of Australia continued its rate hike cycle that began late in 2009 as the economy and labor markets strengthened on the back of strong demand for commodities from its Asian trading partners.

Currencies: The U.S. dollar rally that began in December 2009 reached a crescendo in the second quarter. In addition to the euro’s weakness, the dollar was buoyed by global risk aversion and flight to quality in the second quarter. The U.S. Dollar Index gained approximately 6.2%, and climbed above 86 for the first time since April 2009. The dollar appreciated smartly against the euro as the storm clouds quickly spread from Greece to engulf Portugal, Spain and Ireland and threatened the very future of the European Monetary Union. The euro finished the second quarter down approximately 9.1% against the dollar. The British pound fared better, declining 1.6% in the second quarter against the greenback. The Japanese yen not surprisingly rallied with the rising global risk aversion, gaining 5.8% against the dollar. The two currencies heavily influenced by commodities, the Australian and Canadian dollars, fell sharply despite solid economic data. The Australian and Canadian dollars dropped 7.5% and 4.4%, respectively, against the U.S. dollar.

Indices: The strongest equity rally since the 1930s hit a brick wall in the second quarter as stock prices suffered their first quarterly decline since the first quarter of 2009. Unlike in the first quarter, robust earnings were not enough to overcome the Eurozone jitters and growing fears of sovereign debt crisis around the developed world. The losses were broad-based across most sectors. The Dow Jones Industrial Average, S&P 500 and NASDAQ fell approximately 9.9%, 11.9% and 12.0%, respectively, for the quarter. European stocks, weighed down by problems in Greece, lagged U.S. equities, although the German markets were an exception. The STOXX 600, a broad measure of European equities, declined approximately 16.4%, in dollar terms, although in euro terms it showed a smaller loss of 7.7%. The CAC, FTSE 100 and DAX closed the quarter with losses of approximately 13.4%, 13.4% and 3.1%, respectively. Asian markets were more 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.

Energies: Crude oil fell 10.9% on the back of macro risk aversion and softening freight data. Natural gas soared 13.0%, reflecting the fact that at current prices it is an attractive substitute for other energy products. Heating oil ended the quarter with an approximate 10.6% loss. Reformulated gasoline followed crude and heating oil and declined 11.3% in the quarter.

Metals: Gold registered a solid 10.7% gain during the quarter. Although the dollar remains the preferred safe haven, the euro’s troubles appear to have supported gold. The international community’s desire to diversify their reserves may be helping gold given the euro and the sterling’s weakness. Silver lagged gold, rising 4.4%, but the performance was surprising given that base metals, which often have a strong correlation to silver, fell steeply. Copper, aluminum and nickel ended the quarter with declines of 17.9%, 15.9%, and 21.2%, respectively.

Agriculturals /Softs 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.

Second Quarter 2009

The Second Quarter of 2009 displayed snippets of evidence that the U.S. economy had bottomed but the problem remained that two key areas, housing and employment, showed only modest indications of a turnaround. U.S. economic metrics were far from optimistic during the quarter as the unemployment rate rose to 9.5%, and many market participants believe it is possible that it will climb above the double-digit mark during the second-half of 2009. Since December 2007, the U.S. lost approximately 6.5 million jobs, of which 1.3 million were lost in the past quarter. As for the stimulus packages, they are making their way into the economy, but at a snail’s pace. The third quarter could see a larger macro impact.

Interest Rates: U.S. Treasury yields steepened through most of the quarter. In May, a downward less-than-expected revision of the first quarter GDP encouraged risk taking and the yield curve hinted the economy was in a recovery cycle. The June Federal Open Market Committee meeting indicated that the Fed would maintain an accommodative policy through year end and they expressed little concern on inflation. While the yield curve still indicates the economy is in recovery mode, it does not foreshadow a quick “V” shaped recovery but rather an extended “U” pattern. The Federal Reserve kept rates at 0 to 25 basis points through the quarter. The Bank of England and the Bank of Japan (“BOJ”) kept key rates unchanged through the quarter as well. Japan continued in a recession during the quarter but, as in the U.S. and Eurozone, the worst appears to be over. After being criticized for lowering rates only 25 basis points in April, the European Central Bank (“ECB”) cut rates by another 25 basis points to 1.00% in May. Jean Claude Trichet, ECB president, made it apparent they were likely finished cutting rates for the near future.

Currencies: The U.S. Dollar Index ended the quarter with a loss of approximately 5%. The U.S. currency survived calls from Russia and the other BRIC nations for a so-called “supranational” currency. An increased appetite for risk weighed on the dollar for much of the quarter, although that appeared to lessen toward the end of June. After being annihilated in the first quarter, the pound managed a solid recovery on indications that UK housing may have bottomed. The euro finished the second quarter up approximately 6% on the dollar. The Japanese yen ended the quarter up overall and the BOJ continued to engage in heavy stimulus activity.

Indices: It was a positive overall quarter for global equities, however, U.S. equities lost some ground in June in what appeared to be a correction due to concerns surrounding consumers, housing and employment. Energy and financial stocks led the U.S. rally as the Dow Jones Industrial Average, S&P 500 and NASDAQ all gained approximately 11%, 15% and 20%, respectively, for the quarter. A similar pattern unfolded in Europe with modest losses in June within solid quarterly performance. The STOXX 600, a broad measure of European equities, rose approximately 16% during the quarter. The CAC and the DAX closed the quarter with gains as well. In Asia, the Nikkei jumped over 22% as concerns surrounding North Korea’s nuclear program served as only brief interruptions. The particularly volatile Hang Seng rose approximately 23%, while the Australian All Ordinaries Index and Korea’s Kospi rallied as well. Russian stocks recovered as the quarter progressed in a rally that began at the end March. Improved oil prices were a primary motivator of the turnaround.

Energies: Crude followed movements of the equity markets, offsetting ongoing demand destruction, which seems to have been discounted by the market. In addition, the weakening U.S. dollar, “economic optimism” based on Asian and U.S. data, continued disruption of output by rebel groups in Nigeria and Chinese stockpiling fueled crude’s rally as it surged approximately 44% within the Dow Jones-UBS Commodity Index (“DJUBS”) during the quarter. For natural gas, temperatures ran cool in key consuming regions, keeping demand in check. Heating oil ended the quarter with an approximate 28% gain within the DJUBS. Reformulated gasoline had a strong quarter as gasoline at the pump continued to rise but demand still ran down 2.5% from last year. With supplies more than 22% ahead of last year and storage facilities full, natural gas finished the quarter up only 4% within the DJUBS.

Metals: Reduced global financial market fears diminished flight-to-safety demand for gold during the second quarter as gold finished relatively flat for the quarter. Silver closed out the period with an approximate 5% gain as jewelry demand was quiet, although there was a slight increase in India’s purchases. China was a periodic buyer. Base metals witnessed overall gains across the board in the quarter, mainly attributable to China’s strategic commodity re-stocking, the weaker U.S. dollar, investment demand and economic optimism. Profits of over 52%, 22%, 18% and 17% for nickel, copper, zinc and aluminum, respectively, within the DJUBS, were showcased through the quarter.

Agriculturals /Softs and Grains: Fear that the H1N1 Influenza (Swine Flu) would somehow be spread overseas from pork products originating in the U.S. led to bans on U.S. pork products, resulting in an approximate 2% loss within the DJUBS during the quarter. For the first half of the quarter, cotton prices reacted bullishly to the uncertain weather conditions and the

quarter ended up approximately 15% within the DJUBS. Planting time fears saw grain prices rally in April and May, hitting a nine month high due to the overly wet conditions, which kept farmers from getting their steel in the field. However, once conditions dried out and forecasts for more spring-like weather were predicted, all the upside gains were given back during the month of June as the USDA Planting Acreage Report rattled the agricultural markets. The downside effect on soybeans was not quite as pronounced, however, as this crop can be planted later in the season with much less attributable yield loss. Sugar ended the quarter with profits of over 32% within the DJUBS as prices were driven higher by steady demand patterns out of India, the world’s biggest consumer; changing global weather patterns which threatened production in Brazil, the world’s largest producer; investment interest and a weak U.S. dollar. Coffee finished the quarter up approximately 2% within the DJUBS, attributable to a weak dollar, solid technicals and the relief from a treat of adverse weather.

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 June 30, 2010 and June 30, 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 quarters ended June 30, 2010 and 2009.

Second Quarter 2010

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


Sector	Allocation
Currencies	37.34	%

Energies	3.80	%

Grains	8.82	%

Interest Rates	27.81	%

Meats	2.60	%

Metals	6.39	%

Indices	10.33	%

Tropicals	2.91	%


TOTAL	100.00	%

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

Currencies: (-) Registrant experienced a majority of its gains in the euro. The majority of losses were experienced in Australian and Canadian dollars, Japanese yen, Mexican peso, Polish zloty and the South African rand.

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

Grains: (-) Registrant experienced gains in bean oil and rape seed. Losses were incurred in corn, wheat, soybeans, cotton and soymeal.

Indices: (-) Registrant experienced a majority of its losses in the All Ordinaries Index, CAC, DJ STOXX, Dow Jones Industrial Average Index, S&P and the Hang Seng.

Interest Rates: (+) Registrant experienced a majority of its gains in US Treasuries, Euribor, Eurodollar, German Bobl, German Bund, Japanese Government Bonds and Short Sterling. The majority of losses were experienced in Australian and Canadian Bonds.

Meats: (-) Registrant experienced losses in live cattle and live hogs.

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

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

Second Quarter 2009

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


Sector	Allocation
Currencies	27.15	%

Energies	12.47	%

Grains	10.80	%

Interest Rates	35.95	%

Meats	1.39	%

Metals	1.35	%

Indices	8.87	%

Tropicals	2.02	%


TOTAL	100.00	%

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

Currencies: (+) Registrant experienced a majority of its gains in the Australian and New Zealand dollars, Columbian peso, South African rand and Russian ruble. Losses were incurred in Canadian dollar, Israeli shekel, Japanese yen and euro.

Energies: (-) Registrant experienced gains in unleaded gas. Losses were incurred in Brent crude, gas oil and natural gas.

Grains: (+) Registrant experienced a majority of its gains in corn and soybeans. Losses were incurred in wheat and cotton.

Indices: (+) Registrant experienced gains in the Kospi, Hang Seng, Nasdaq and Taiwan Stock Exchange. Losses were incurred in DJ STOXX, CAC and FTSE.

Interest Rates: (-) Registrant experienced a majority of its gains in the 10-year Australian Bond, Eurodollar and German Bobl. Losses were incurred in the Canadian Bond, Euribor, 2-year German Bond, 3-month short sterling and U.S. Treasury Notes.

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

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

Softs: (+) Registrant experienced gains in dairy, coffee and sugar. Losses were incurred in cocoa and citrus.

Results of Operations

Second Quarter 2010

The Net Asset Value per Interest as of June 30, 2010 was $116.70, a decrease of $9.41 from the March 31, 2010 Net Asset Value per Interest of $126.11. Registrant’s average net asset level during the Second Quarter 2010 was approximately $4,422,000. Registrant’s average net assets decreased during the Second Quarter 2010 in comparison to the Second Quarter 2009 by approximately $1,121,000 primarily due to the effect of redemptions and negative trading performance.

Registrant’s performance for the Second Quarter 2010 was (7.46)%. Performance includes the percentage change in Registrant’s Net Asset Value excluding the effect of redemptions and includes the percentage impact of trading gains(losses) less any commissions and related fees and expenses. Past performance is not necessarily indicative of future results.

Registrant’s trading losses before commissions for the Second Quarter 2010 were approximately ($178,000).

Commissions and other transaction fees for the Second Quarter 2010 were approximately $113,000, a decrease of approximately $25,000 as compared to the Second Quarter 2009, primarily due to reduced average net asset levels discussed above.

Management fees allocated from the Trading Vehicle for the Second Quarter 2010 were approximately $0, a decrease of approximately $1,000 as compared to the Second Quarter 2009, primarily due to the Registrant fully redeeming its investment in the Trading Vehicle as of September 30, 2009.

Pursuant to the Trading Advisory Agreements, Registrant pays quarterly profit shares of 20% of Trading Profit (as defined in each respective Trading Advisory Agreement). Trading Advisor profit shares for the Second Quarter 2010 were $0.

Pursuant to the Declaration of Trust and Trust Agreement, Registrant pays an incentive fee to the Managing Owner equal to 5% of New Overall Appreciation (as defined) as of each fiscal year end and upon redemption of Interests. Managing Owner incentive fees for the Second Quarter 2010 were $0.

Operating expenses include accounting, audit, tax, and legal fees, as well as printing and postage costs related to reports sent to limited owners. Operating expenses for the Second Quarter 2010 were approximately $57,000.

Second Quarter 2009

The Net Asset Value per Interest as of June 30, 2009 was $141.46, a decrease of $4.54 from the March 31, 2009 Net Asset Value per Interest of $146.00. Registrant’s average net asset level during the Second Quarter 2009 was approximately $5,543,000. Registrant’s average net assets decreased during the Second Quarter 2009 in comparison to the Second Quarter 2008 by approximately $200,000 primarily due to the effect of redemptions and negative trading performance.

Registrant’s performance for the Second Quarter 2009 was (3.11)%. Performance includes the percentage change in Registrant’s Net Asset Value excluding the effect of redemptions and includes the percentage impact of trading gains(losses) less any commissions and related fees and expenses. Past performance is not necessarily indicative of future results.

Registrant’s trading gains before commissions for the Second Quarter 2009 were approximately $35,000.

Commissions and other transaction fees for the Second Quarter 2009 were approximately $138,000, an increase of approximately $1,000 as compared to the Second Quarter 2008, primarily due to the lingering effects of positive trading performance during the Fourth Quarter 2008 leading into 2009 which offset the effects and timing of redemptions.

Management fees allocated from the Trading Vehicle for the Second Quarter 2009 were approximately $1,000, a decrease of approximately $7,000 as compared to the Second Quarter 2008, primarily due to redemptions.

Inflation

Inflation has had no material impact on the operations or on the financial condition of Registrant from inception through June 30, 2010.

Off-Balance Sheet Arrangements and Contractual Obligations

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 Trading Advisor and its commodity broker. Management fees payable by Registrant to the Trading Advisor and brokerage commissions 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 Trading Advisory Agreement). As such, the Managing Owner cannot anticipate the amounts to be paid for future periods as Net Asset Values and “New High Net Trading Profits” are not known until a future date. Commissions payable to 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 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 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 2 and 3 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.

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 Second 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 5.

Other Information

None

Item 6.

Exhibits:



3.1		Certificate of Formation of the Registrant. (Incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).

3.2		Declaration of Trust and Trust Agreement of the Registrant. (Incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).

3.3		Amended and Restated Declaration of Trust and Trust Agreement of the Registrant (incorporated by reference to Exhibit 3.3 to Registrant’s Form 10-K for the year ended December 31, 2009).

3.4		Fifth Amended and Restated Declaration of Trust and Trust Agreement of the Registrant dated as of December 1, 2008 (incorporated by reference to Exhibit 3.3 to Registrant’s Form 10-K for the year ended December 31, 2008).

4.5		Form of the Privacy Notices 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 Advisory Agreement. (Incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).

10.2		Form of Customer Agreement between the Trust and the Commodity Brokers. (Incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).

10.3		Form of Escrow Agreement. (Incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).

10.4		Subscription Agreement and Power of Attorney. (Incorporated by reference to the Trust’s Registration Statement on Form S-1, Registration No. 333-8869, dated July 25, 1996).

10.5		Advisory Agreement among the Managing Owner, WCM Pool LLC and Winton Capital Management Limited dated November 20, 2006 (incorporated by reference to Exhibit 10.5 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)

10.6		WCM Pool LLC Organization Agreement dated November 20, 2006 (incorporated by reference to Exhibit 10.6 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)

10.7		Administrative Service Agreement between WCM Pool LLC and Preferred Investment Solutions Corp. dated November 20, 2006 (incorporated by reference to Exhibit 10.7 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)

10.8		Amendment No. 1 to WCM Pool LLC Organization Agreement dated March 30, 2007 (incorporated by reference to Exhibit 10.8 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)



10.9		Services Agreement between Spectrum Global Fund Administration, L.L.C. and Registrant dated May 23, 2007 (incorporated by reference to Exhibit 10.9 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)

10.10		Administrative Service Agreement between WCM Pool LLC and Preferred Investment Solutions Corp. dated November 20, 2006 (incorporated by reference to Exhibit 10.7 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)

10.11		Amendment No. 1 to WCM Pool LLC Organization Agreement dated March 30, 2007 (incorporated by reference to Exhibit 10.8 to Registrant’s Annual Report on Form 10-K for the year ended December 31, 2007)

10.12		Purchase Agreement dated September 24, 2007, effective August 10, 2007 by and between Registrant and Preferred Investment Solutions Corp. (incorporated by reference to Exhibit 10.1 to Form 8-K, file No. 333-08869, filed on September 28, 2007)

10.13		Security Agreement dated September 24, 2007, effective August 10, 2007 by and between Registrant and Preferred Investment Solutions Corp. (incorporated by reference to Exhibit 10.2 to Form 8-K, file No. 333-08869, filed on September 28, 2007)

10.14		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)

10.15		Amendment No. 2 dated April 30, 2010 to Demand Promissory Note by Kenmar Preferred Investments Corp. to Kenmar Global Trust (incorporated by reference to Exhibit 10.13 to Form 8-K, file No. 333-08869, filed on May 3, 2010)

10.16		Pledge Agreement dated April 30, 2010 by and between Registrant and Preferred Investment Solutions Corp. (incorporated by reference to Exhibit 10.14 to Form 8-K, file No. 333-08869, filed on May 3, 2010)

13.1		Registrant’s 2009 Annual Report (with the exception of the information and data incorporated by reference in Item 8 of this Annual Report on Form 10-K, no other information or data appearing in the Registrant’s 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 Act of 2002 (furnished herewith)

32.2		Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

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.


KENMAR GLOBAL TRUST

By:	Kenmar Preferred Investments Corp., 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: August 10, 2010
		Name:	David K. Spohr
		Title:	Senior Vice President and Director of Fund Administration (Principal Financial/Accounting Officer)

KENMAR GLOBAL TRUST 10-Q