KENMAR GLOBAL TRUST

                                  ANNUAL REPORT

                                December 31, 1998






                                      

<PAGE>


                               KENMAR GLOBAL TRUST


                                TABLE OF CONTENTS



                                                                           PAGE
                                                                           ----

Affirmation of the Commodity Pool Operator...............................   -ii-
 
Independent Auditor's Report.............................................  -iii-

Financial Statements

  Statements of Financial Condition
    December 31, 1998 and 1997............................................   F-1

  Statements of Operations For the Years
    Ended December 31, 1998 and 1997 and For the Period
    July 17, 1996 (inception) to December 31, 1996........................   F-2

  Statements of Cash Flows For the Years
    Ended December 31, 1998 and 1997 and For the Period
    July 17, 1996 (inception) to December 31, 1996........................   F-3

  Statements of Changes in Unitholders' Capital (Net Asset Value)
    For the Years Ended December 31, 1998 and 1997 and For the Period
    July 17, 1996 (inception) to December 31, 1996........................   F-4

  Notes to Financial Statements........................................  F-5-F-9


                                       -i-

<PAGE>


                               KENMAR GLOBAL TRUST

                   AFFIRMATION OF THE COMMODITY POOL OPERATOR

                                   ----------




To the best of the knowledge and belief of the undersigned, the information
contained in the Annual Report for the year ended December 31, 1998 is accurate
and complete.






                                          /s/MARC S. GOODMAN
                                          --------------------------
                                          Marc S. Goodman, President
                                          Kenmar Advisory Corp.
                                          KENMAR GLOBAL TRUST


                                      -ii-

<PAGE>



                    ARTHUR F. BELL, JR. & ASSOCIATES, L.L.C.

                          CERTIFIED PUBLIC ACCOUNTANTS

                                 (410) 821-8000

                               FAX (410) 321-8359

Member:

   AMERICAN INSTITUTE OF                                               Suite 200
   CERTIFIED PUBLIC ACCOUNTANTS
   SEC Practice Section                                 201 International Circle

   Maryland Association of                           Hunt Valley, Maryland 21030
   Certified Public Accountants 


                          INDEPENDENT AUDITOR'S REPORT


To the Unitholders
Kenmar Global Trust


We have audited the accompanying statements of financial condition of Kenmar
Global Trust as of December 31, 1998 and 1997, and the related statements of
operations, cash flows and changes in unitholders' capital (net asset value) for
the years ended December 31, 1998 and 1997 and for the period July 17, 1996
(inception) to December 31, 1996. These financial statements are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Kenmar Global Trust as of
December 31, 1998 and 1997, and the results of its operations, cash flows and
the changes in its net asset values for the years ended December 31, 1998 and
1997 and for the period July 17, 1996 (inception) to December 31, 1996, in
conformity with generally accepted accounting principles.


                                   /s/ Arthur F. Bell, Jr. & Associates, L.L.C.

Hunt Valley, Maryland
March 1, 1999

                                      -iii-

<PAGE>



                               KENMAR GLOBAL TRUST

                        STATEMENTS OF FINANCIAL CONDITION

                           December 31, 1998 and 1997

                                   ----------
<TABLE>
<CAPTION>
                                                                    1998         1997
                                                                -----------   -----------
<S>                                                             <C>           <C>        
ASSETS
   Equity in broker trading accounts
      Cash ..................................................   $14,288,556   $11,166,621
      Net option premiums paid ..............................             0        12,165
      Unrealized gain on open contracts .....................     1,219,956       838,321
                                                                -----------   -----------

         Deposits with brokers ..............................    15,508.512    12,017,107

   Cash .....................................................    10,582,645       588,287
   Other assets .............................................             0       177,369
                                                                -----------   -----------

         Total assets .......................................   $26,091,157   $12,782,763
                                                                ===========   ===========

LIABILITIES
   Accounts payable .........................................   $    65,017   $    24,489
   Commissions and other trading fees on open contracts .....        18,122         6,831
   Managing Owner brokerage commissions .....................       160,616        89,492
     Managing Owner incentive fee ...........................        42,368             0
   Advisor profit shares ....................................       109,106        54,575
   Reimbursable offering costs ..............................        44,975        23,058
   Redemptions payable ......................................       255,238       176,774
   Redemption charges payable to Managing Owner .............         4,897         4,503
   Subscription deposits ....................................        27,720        25,720
                                                                -----------   -----------

         Total liabilities ..................................       728,059       405,442
                                                                -----------   -----------

UNITHOLDERS' CAPITAL (NET ASSET VALUE)
   Managing Owner - 2,331.0461 and 1,258.4577 units
     outstanding at December 31, 1998 and 1997 ..............       263,850       125,970
   Other Unitholders - 221,745.5512 and 122,392.3731 units
     outstanding at December 31, 1998 and 1997 ..............    25,099,248    12,251,351
                                                                -----------   -----------

         Total unitholders' capital (Net Asset Value)........    25,363,098    12,377,321
                                                                -----------   -----------
                        
                                                                $26,091,157   $12,782,763
                                                                ===========   ===========
</TABLE>

                                              See accompanying notes.


                                                       -F-1-

<PAGE>



                               KENMAR GLOBAL TRUST

                            STATEMENTS OF OPERATIONS

               For the Years Ended December 31, 1998 and 1997 and
          For the Period July 17, 1996 (inception) to December 31, 1996

<TABLE>
<CAPTION>

                                             Year Ended     Year Ended     Period Ended
                                            December 31,   December 31,    December 31,
                                                1998           1997            1996
                                             ----------     ----------      ----------
<S>                                          <C>            <C>             <C>       
INCOME                                                                     
   Trading gains (losses)                                                  
            Realized .....................   $4,443,190     $ (162,443)     $        0
            Change in unrealized .........      381,635        838,321               0
                                             ----------     ----------      ----------
                                                                           
               Gain from trading .........    4,824,825        675,878               0
                                                                           
   Interest income .......................      750,290        293,033               0
                                             ----------     ----------      ----------
                                                                           
               Total income ..............    5,575,115        968,911               0
                                             ----------     ----------      ----------
                                                                           
EXPENSES                                                                   
   Brokerage commissions .................      147,779         45,814               0
   Managing Owner brokerage commissions ..    1,652,458        631,403               0
   Managing Owner incentive fee ..........       43,400              0               0
   Advisor profit shares .................      984,809        106,886               0
   Operating expenses ....................      134,568         58,398               0
                                             ----------     ----------      ----------
               Total expenses ............    2,963,014        842,501               0
                                             ----------     ----------      ----------
                                                                           
               NET INCOME ................   $2,612,101     $  126,410      $        0
                                             ==========     ==========      ==========
                                                                           
NET INCOME PER UNIT                                                        
   (based on weighted average number of                                    
   units outstanding during the period)...   $    16.96     $     1.24      $     0.00
                                             ==========     ==========      ==========
                                                                         
INCREASE IN NET ASSET
   VALUE PER UNIT ........................   $    13.09     $     0.10      $     0.00
                                             ==========     ==========      ==========

</TABLE>

                             See accompanying notes.


                                      -F-2-

<PAGE>



                               KENMAR GLOBAL TRUST

                            STATEMENTS OF CASH FLOWS

               For the Years Ended December 31, 1998 and 1997 and
          For the Period July 17, 1996 (inception) to December 31, 1996

                                   ----------

<TABLE>
<CAPTION>
                                                                Year Ended      Year Ended     Period Ended
                                                               December 31,    December 31,    December 31,
                                                                   1998            1997            1996
                                                               ------------    ------------    ------------
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES
   Net income ..............................................   $  2,612,101    $    126,410    $          0
      Adjustments to reconcile net income to net
      cash from (for) operating activities:
        (Increase) decrease in net option premiums paid ....         12,165         (12,165)              0
        Net change in unrealized ...........................       (381,635)       (838,321)              0
        (Increase) decrease in other assets ................        177,369        (177,369)              0
        Increase in accounts payable and accrued expenses...        219,842         175,387               0
                                                               ------------    ------------    ------------


           Net cash (for) operating activities .............      2,639,842        (726,058)              0
                                                               ------------    ------------    ------------
<S>                                                              <C>             <C>                  <C>  
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES
   Addition of units .......................................     13,497,520      12,847,562           2,000
   Increase in subscription deposits .......................          2,000          25,720               0
   Offering costs paid .....................................       (700,862)       (124,706)              0
   Redemption of units .....................................     (2,322,207)       (269,610)              0
                                                               ------------    ------------    ------------

           Net cash from financing activities ..............     10,476,451      12,478,966           2,000
                                                               ------------    ------------    ------------

Net increase in cash .......................................     13,116,293      11,752,908           2,000
CASH
   Beginning of period .....................................     11,754,908           2,000               0
                                                               ------------    ------------    ------------

   End of period ...........................................   $ 24,871,201    $ 11,754,908    $      2,000
                                                               ============    ============    ============

END OF PERIOD CASH CONSISTS OF:
   Cash in broker trading accounts .........................   $ 14,288,556    $ 11,166,621    $          0
   Cash ....................................................     10,582,645         588,287           2,000
                                                               ------------    ------------    ------------

           Total end of period cash ........................   $ 24,871,201    $ 11,754,908    $      2,000
                                                               ============    ============    ============
</TABLE>


                                              See accompanying notes.


                                                       -F-3-

<PAGE>



                               KENMAR GLOBAL TRUST

         STATEMENTS OF CHANGES IN UNITHOLDERS' CAPITAL (NET ASSET VALUE)

               For the Years Ended December 31, 1998 and 1997 and
          For the Period July 17, 1996 (inception) to December 31, 1996

                                   ----------

<TABLE>
<CAPTION>
                                                            Unitholders' Capital
                                                 --------------------------------------------
                                      Total
                                    Number of       Managing        Other
                                      Units          Owner       Unitholders        Total
                                 ------------    ------------    ------------    ------------
<S>                               <C>            <C>             <C>             <C>         
Balances at
   July 17, 1996 (inception) ..        0.0000    $          0    $          0    $          0
Additions .....................       20.0000             400           1,600           2,000
                                 ------------    ------------    ------------    ------------
Balances at
   December 31, 1996 ..........       20.0000             400           1,600           2,000
Additions .....................  128,219.1639         125,800      12,721,762      12,847,562
Net income for the year
   ended December 31, 1997 ....                         1,279         125,131         126,410
Redemptions ...................   (4,588.3331)              0        (450,887)       (450,887)
Offering costs ................                        (1,509)       (146,255)       (147,764)
                                 ------------    ------------    ------------    ------------
Balances at
   December 31, 1997 ..........  123,650.8308    $    125,970    $ 12,251,351    $ 12,377,321

Net income for the year .......                        26,933       2,585,168       2,612,101
   ended December 31, 1998
Additions .....................  123,109.1508         118,400      13,379,120      13,497,520
Redemptions ...................  (22,683.3843)              0      (2,401,065)     (2,401,065)
Offering costs ................                        (7,435)       (715,326)       (722,779)
                                 ------------    ------------    ------------    ------------

Balances at
   December 31, 1998 ..........  224,076.5973    $    263,850    $ 25,099,248    $ 25,363,098
                                 ============    ============    ============    ============
<CAPTION>

                                                              Net Asset Value Per Unit
                                                    ----------------------------------------
                                                                    December 31,
                                                    ----------------------------------------
                                                      1998              1997           1996
                                                    -------           -------        -------
<S>                                                 <C>               <C>            <C>    
                                                    $113.19           $100.10        $100.00
                                                    =======           =======        =======
</TABLE>


                             See accompanying notes.

                                      -F-4-

<PAGE>


                               KENMAR GLOBAL TRUST

                          NOTES TO FINANCIAL STATEMENTS

                                   ----------

Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

        A.  General Description of the Fund

            Kenmar Global Trust (the "Fund") is a Delaware business trust. The
            Fund is a multi-advisor, multi-strategy commodity pool which trades
            in United States (U.S.) and foreign futures, options, forwards and
            related markets. The Fund was formed on July 17, 1996 and commenced
            trading on May 22, 1997.

        B.  Regulation

            As a registrant with the Securities and Exchange Commission, the
            Fund is subject to the regulatory requirements under the Securities
            Act of 1933 and the Securities Exchange Act of 1934. As a commodity
            pool, the Fund is subject to the regulations of the Commodity
            Futures Trading Commission, an agency of the U.S. government which
            regulates most aspects of the commodity futures industry, rules of
            the National Futures Association, an industry self-regulatory
            organization, and the requirements of the various commodity
            exchanges where the Fund executes transactions. Additionally, the
            Fund is subject to the requirements of the Futures Commission
            Merchants (FCMs) and interbank market makers (collectively,
            "brokers") through which the Fund trades.

        C.  Method of Reporting

            The Fund's financial statements are presented in accordance with
            generally accepted accounting principles, which require the use of
            certain estimates made by the Fund's management. Gains or losses are
            realized when contracts are liquidated. Net unrealized gain or loss
            on open contracts (the difference between contract purchase prices
            and market prices) is reported in the statement of financial
            condition in accordance with Financial Accounting Standards Board
            Interpretation No. 39 - "Offsetting of Amounts Related to Certain
            Contracts." Any change in net unrealized gain or loss from the
            preceding period is reported in the statement of operations.
            Brokerage commissions paid directly to brokers include other trading
            fees and are charged to expense when contracts are opened.

        D.  Income Taxes

            The Fund prepares calendar year U.S. and state information tax
            returns and reports to the Unitholders their allocable shares of the
            Fund's income, expenses and trading gains or losses.

        E.  Organizational and Offering Costs

            Organizational and initial offering costs (exclusive of selling
            commissions) of approximately $540,000 were advanced to the Fund by
            the Managing Owner. Such costs are charged to unitholders' capital
            and reimbursed to the Managing Owner at a monthly rate of 0.2% of
            the Fund's beginning of month Net Asset Value. As of December 31,
            1998, all such organizational and initial offering costs advanced by
            the Managing Owner have been charged to unitholders' capital.

            Ongoing offering costs are borne by the Fund and are charged
            directly to unitholders' capital as incurred.


                                      -F-5-

<PAGE>


                               KENMAR GLOBAL TRUST

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)


Note. 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


        F.  Foreign Currency Transactions

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

Note 2. MANAGING OWNER

        The Managing Owner of the Fund is Kenmar Advisory Corp., which conducts
        and manages the business of the Fund. The Declaration of Trust and Trust
        Agreement requires the Managing Owner to maintain a capital account
        equal to 1% of the total capital accounts of the Fund.

        The Managing Owner is paid monthly brokerage commissions equal to 1/12
        of 11% (11% annually) of the Fund's beginning of month Net Asset Value.
        The Managing Owner, in turn, pays substantially all actual costs of
        executing the Fund's trades, selling commissions and trailing
        commissions to selling agents, and consulting fees to the Advisors. The
        amount paid to the Managing Owner is reduced by brokerage commissions
        and other trading fees paid directly by the Fund. For the year ended
        December 31, 1998 and for the period May 22, 1997 (commencement of
        trading) to December 31, 1997, brokerage commissions equated to an
        approximate round-turn equivalent rate of $84 and $92, respectively.
        Such approximate round-turn equivalent brokerage commission rate will
        vary depending on the frequency of trading by the Fund's commodity
        trading advisors.

        The Managing Owner is paid an incentive fee equal to 5% of New Overall
        Appreciation (which is defined in the Declaration of Trust and Trust
        Agreement and excludes interest income) as of each fiscal year-end and
        upon redemption of Units.

Note 3. COMMODITY TRADING ADVISORS

        The Fund has advisory agreements with various commodity trading advisors
        pursuant to which the Fund pays quarterly profit shares of 15% to 20% of
        Trading Profit (as defined in each advisory agreement).

Note 4. DEPOSITS WITH BROKERS

        The Fund deposits cash with brokers subject to Commodity Futures Trading
        Commission regulations and various exchange and broker requirements.
        Margin requirements are satisfied by the deposit of cash with such
        brokers. The Fund earns interest income on its cash deposited with the
        brokers.

Note 5. SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS

        Investments in Units of Beneficial Interest are made by subscription
        agreement, subject to acceptance by the Managing Owner.

        The Fund is not required to make distributions, but may do so at the
        sole discretion of the Managing Owner. A Unitholder may request and
        receive redemption of Units owned, beginning with the end of the sixth
        month after

                                      -F-6-

<PAGE>


                               KENMAR GLOBAL TRUST

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)


Note 5. SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS (CONTINUED)

        such Units are sold, subject to restrictions in the Declaration of Trust
        and Trust Agreement. Units redeemed on or before the end of the twelfth
        full calendar month and after the end of the twelfth full month but on
        or before the end of the eighteenth full calendar month after the date
        such Units begin to participate in the profits and losses of the Fund
        are subject to early redemption charges of 3% and 2%, respectively, of
        the Net Asset Value redeemed. All redemption charges are paid to the
        Managing Owner. Such redemption charges are included in redemptions of
        unitholders' capital and amounted to $51,752 and $12,592 during 1998 and
        1997, respectively.

Note 6. TRADING ACTIVITIES AND RELATED RISKS

        The Fund engages in the speculative trading of U.S. and foreign futures
        contracts, options on U.S. and foreign futures contracts and forward
        contracts (collectively, "derivatives"). These derivatives include both
        financial and non-financial contracts held as part of a diversified
        trading strategy. The Fund is exposed to both market risk, the risk
        arising from changes in the market value of the contracts, and credit
        risk, the risk of failure by another party to perform according to the
        terms of a contract.

        Purchases and sales of futures and options on futures contracts require
        margin deposits with the FCMs. Additional deposits may be necessary for
        any loss of contract value. The Commodity Exchange Act requires an FCM
        to segregate all customer transactions and assets from such FCM's
        proprietary activities. A customer's cash and other property (for
        example, U.S. Treasury bills) deposited with an FCM are considered
        commingled with all other customer funds subject to the FCM's
        segregation requirements. In the event of an FCM's insolvency, recovery
        may be limited to a pro rata share of segregated funds available. It is
        possible that the recovered amount could be less than total cash and
        other property deposited.

        The Fund has cash on deposit with interbank market makers and other
        financial institutions in connection with its trading of forward
        contracts and its cash management activities. In the event of a
        financial institution's insolvency, recovery of Fund assets on deposit
        may be limited to account insurance or other protection afforded such
        deposits. In the normal course of business, the Fund does not require
        collateral from such financial institutions. Since forward contracts are
        traded in unregulated markets between principals, the Fund also assumes
        the risk of loss from counterparty nonperformance.

        For derivatives, risks arise from changes in the market value of the
        contracts. Theoretically, the Fund is exposed to a market risk equal to
        the value of futures and forward contracts purchased and unlimited
        liability on such contracts sold short. As both a buyer and seller of
        options, the Fund pays or receives a premium at the outset and then
        bears the risk of unfavorable changes in the price of the contract
        underlying the option. Written options expose the Fund to potentially
        unlimited liability, and purchased options expose the Fund to a risk of
        loss limited to the premiums paid.


                                      -F-7-

<PAGE>


                               KENMAR GLOBAL TRUST

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)


Note 6. TRADING ACTIVITIES AND RELATED RISKS (CONTINUED)

        The fair value of derivatives represents unrealized gains and losses on
        open futures and forward contracts and long and short options at market
        value. The average fair value of derivatives for the year ended December
        31, 1998 and for the period May 22, 1997 (commencement of trading) to
        December 31, 1997 and the related fair values as of December 31, 1998
        and 1997, are as follows:

<TABLE>
<CAPTION>
                                                1998                          1997
                                     -------------------------      -------------------------
                                       Average       Year End        Average       Period End
                                     Fair Value     Fair Value      Fair Value     Fair value
                                     ----------     ----------      ----------     ----------
<S>                                  <C>            <C>             <C>             <C>     
Exchange traded futures and
  options on futures contracts       $1,050,000     $1,240,000      $440,000        $847,000
  Forward contracts                      20,000        (20,000)       30,000           3,000

</TABLE>

        Net trading results from derivatives for the years ended December 31,
        1998 and 1997, are reflected in the statement of operations and consist
        of the gain from trading less brokerage commissions and the portion of
        the Managing Owner brokerage commissions that is payable to the brokers.
        For the years ended December 31, 1998 and 1997, the net trading gain
        from derivatives was approximately $4,564,000 and $595,000,
        respectively. Such trading results reflect the net gain arising from the
        Fund's speculative trading of futures contracts, options on futures
        contracts and forward contracts.

        Open contracts generally mature within one year; however, the Fund
        intends to close all contracts prior to maturity. The latest maturity
        date for open contracts at December 31, 1998 and 1997 is September 1999
        and June 1998, respectively. At December 31, 1998 and 1997, the notional
        amount of open contracts is as follows:

<TABLE>
<CAPTION>
                                                         1998                          1997
                                              ---------------------------   ---------------------------
                                              Contracts to   Contracts to   Contracts to   Contracts to
                                                Purchase         Sell         Purchase         Sell
                                              ------------   ------------   ------------   ------------
<S>                                           <C>            <C>            <C>            <C>         

Exchange traded futures contracts
  and written options thereon:
     - Financial instruments ..............   $ 96,900,000   $ 99,000,000   $ 44,900,000   $ 16,300,000
     - Metals .............................      4,200,000     11,100,000      1,800,000      3,700,000
     - Energy .............................              0      1,800,000              0      1,100,000
     - Agricultural .......................        900,000      9,300,000      1,500,000      2,800,000
     - Currencies .........................      6,800,000      6,400,000     15,300,000     18,800,000

Forward Contracts:
      - Currencies ........................      4,600,000      2,600,000              0        700,000
                                              ------------   ------------   ------------   ------------

                                              $113,400,000   $130,200,000   $ 63,500,000   $ 43,400,000
                                              ============   ============   ============   ============
Exchange traded purchased options
  on futures contracts:
      - Financial instruments .............              0              0   $  3,400,000   $          0
      - Currencies ........................              0              0              0      1,400,000
                                              ------------   ------------   ------------   ------------

                                              $          0   $          0   $  3,400,000   $  1,400,000
                                              ============   ============   ============   ============
</TABLE>


                                                       -F-8-

<PAGE>


                               KENMAR GLOBAL TRUST

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Note 6. TRADING ACTIVITIES AND RELATED RISKS (CONTINUED)

        The above amounts do not represent the Fund's risk of loss due to market
        and credit risk, but rather represent the Fund's extent of involvement
        in derivatives at the date of the statement of financial condition.

        The Managing Owner has established procedures to actively monitor market
        risks and minimize credit risk. The Unitholders bear the risk of loss
        only to the extent of the market value of their respective investments
        and, in certain specific circumstances, distributions and redemptions
        received.

                                      -F-9-