Note 12 Financial Investments (available-for-sale)

CHF million	31.12.05	31.12.04
Money market paper	141	567
Other debt instruments
Listed	587	261
Unlisted	91	28
Total	678	289
Equity instruments
Listed	2,548	504
Unlisted	1,738	689
Total	4,286	1,193
Private equity investments	1,446	2,139
Total financial investments	6,551	4,188
thereof eligible for discount at central banks	40	86

The following tables show the unrealized gains and losses not recognized in the income statement for the years ended 2005 and 2004:

		Unrealized gains / losses not recognized in the income statement
CHF million	Fair value	Gross gains	Gross losses	Net, before tax	Tax effect	Net, after tax
31 December 2005
Money market paper	141	0	0	0	0	0
Debt securities issued by Swiss national government and agencies	3	0	0	0	0	0
Debt securities issued by Swiss local governments	0	0	0	0	0	0
Debt securities issued by US Treasury and agencies	64	0	(1)	(1)	0	(1)
Debt securities issued by foreign governments and official institutions	47	0	0	0	0	0
Corporate debt securities	421	7	(11)	(4)	0	(4)
Mortgage-backed securities	143	0	(3)	(3)	0	(3)
Other debt securities	0	0	0	0	0	0
Equity investments	4,286	738	(16)	722	(133)	589
Private equity investments	1,446	405	(15)	390	(31)	359
Total	6,551	1,150	(46)	1,104	(164)	940

		Unrealized gains / losses not recognized in the income statement
CHF million	Fair value	Gross gains	Gross losses	Net, before tax	Tax effect	Net, after tax
31 December 2004
Money market paper	567	0	0	0	0	0
Debt securities issued by Swiss national government and agencies	10	1	0	1	0	1
Debt securities issued by Swiss local governments	20	1	0	1	0	1
Debt securities issued by US Treasury and agencies	0	0	0	0	0	0
Debt securities issued by foreign governments and official institutions	40	0	0	0	0	0
Corporate debt securities	147	7	(4)	3	0	3
Mortgage-backed securities	72	0	0	0	0	0
Other debt securities	0	0	0	0	0	0
Equity investments	1,193	455	(5)	450	(83)	367
Private equity investments	2,139	577	(22)	555	(88)	467
Total	4,188	1,041	(31)	1,010	(171)	839

The unrealized losses not recognized in the income statement are considered to be temporary on the basis that the investments are intended to be held for a period of time sufficient to recover their cost, and UBS believes that the evidence indicating that the cost of the investments should be recoverable within a reasonable period of time outweighs the evidence to the contrary. This includes the nature of the investments, valuations and research undertaken by UBS, the current outlook for each investment, offers under negotiation at favourable prices and the duration of the unrealized losses.

The following table shows the duration of unrealized losses not recognized in the income statement for the year ended 2005:

	Fair value			Unrealized losses
	Investments with unrealized loss less than 12 months	Investments with unrealized loss more than 12 months	Total		Investments with unrealized loss more than 12 months	Investments with unrealized loss more than 12 months	Total

CHF million
31 December 2005
Money market paper	0	0	0		0	0	0
Debt securities issued by the Swiss national government and agencies	0	0	0		0	0	0
Debt securities issued by Swiss local governments	0	0	0		0	0	0
Debt securities issued by US Treasury and agencies	55	0	55		(1)	0	(1)
Debt securities issued by foreign governments and official institutions	0	0	0		0	0	0
Corporate debt securities	272	0	272		(11)	0	(11)
Mortgage-backed securities	0	143	143		0	(3)	(3)
Other debt securities	0	0	0		0	0	0
Equity investments	2,032	16	2,048		(13)	(3)	(16)
Private equity investments	117	34	151		(10)	(5)	(15)
Total	2,476	193	2669		(35)	(11)	(46)

Contractual maturities of the investments in debt instruments¹
	Within 1 year		1–5 years		5–10 years		Over 10 years
CHF million, except percentages	Amount	Yield (%)	Amount	Yield (%)	Amount	Yield (%)	Amount	Yield (%)
31 December 2005
Swiss national government and agencies	0	0.00	2	4.36	0	0.00	1	4.00
Swiss local governments	0	0.00	0	0.00	0	0.00	0	0.00
US Treasury and agencies	0	0.00	42	5.51	10	5.77	12	6.03
Foreign governments and official institutions	38	1.91	2	1.90	5	5.64	2	6.17
Corporate debt securities	13	3.20	239	4.25	66	5.38	103	5.66
Mortgage-backed securities	0	0.00	0	0.00	14	3.92	129	4.80
Other debt securities	0	0.00	0	0.00	0	0.00	0	0.00
Total fair value	51		285		95		247

1 Money market paper has a contractual maturity of less than one year.

Proceeds from sales and maturities of investment securities available-for-sale, excluding private equity, were as follows:


CHF million	31.12.05	31.12.04
Proceeds	298	277
Gross realized gains	60	58
Gross realized losses	1	45