As 2009 draws to a close, thoughts naturally turn to reflection on a year that saw continuing volatility in global markets. The year began with warnings of deep recession but by mid-year analysts were cautiously optimistic that the freefall would slow, thanks to monetary and fiscal policy by central banks and governments worldwide. While the world may not return any time soon to the boom of the mid 2000s, talk of recession soon turned to talk of recovery, and investors are now beginning to feel more confident.

In this edition of UBS Perspectives, we look at Asia as it leads the world in its economic recovery. What currencies do we favor? How do Asian equities stack up against the historical giants? And which sovereign bonds are offering the best value?

Risk remains a hot topic post-crisis. The severity of the crisis has challenged and even overturned some key investment principles that have guided the financial world for decades. In Investment Strategies, we outline five important tips for navigating investments in volatile times so you can build an effective investment strategy.

Analysts and experts agree that the economic climate, especially in Asia, is brightening. This foundation of guarded optimism is the perfect platform for investors to launch a full review of their portfolios. In the coming weeks, UBS Wealth Management will be entering into our annual review period. With guidance from your client advisor, this is an opportunity to invest time and thought into rebalancing and restructuring your portfolio of investments so that it will form a strong basis for the future. It may be a tough climb ahead, but we will be there to take every step with you.

We would like to take this opportunity to thank you for your continued partnership in 2009. Your confidence means a great deal and is our inspiration to work even harder in 2010.

On behalf of UBS, we wish you and your family a wonderful and safe holiday season, and for us all, a prosperous New Year.

Yours Sincerely