Corporate Center

On 1 January 2008, UBS's private equity portfolio was integrated into Corporate Center. The strategy for the portfolio remains the same as it was prior to integration: to de- emphasize and reduce exposure to this asset class, while capitalizing on orderly exit opportunities as they arise.

In first quarter 2008, UBS completed the divestment of the last fully consolidated operating investment in the private equity portfolio. This resulted in a realized gain, which is presented in discontinued operations. All relevant previous income statements have also been restated to reflect the divestment.

Unconsolidated private equity investments, including those accounted for under the equity method, generated total divestment gains of CHF 46 million in first quarter 2008, with writedowns of CHF 8 million. The level of financial investments available-for-sale fell to CHF 72 million on 31 March 2008, from CHF 92 million on 31 December 2007, due to a number of exits. During first quarter 2008, the fair value of this part of the portfolio decreased by CHF 55 million to CHF 113 million due to successful divestments and revaluations. Unfunded commitments on 31 March 2008 were CHF 61 million, down from CHF 67 million on 31 December 2007.