# Unaudited Information
- the CSSF Circular 14/585, transposing the ESMA Guidelines 2013/606 on remuneration policies and practices (MiFID ESMA Guidelines).

and on the other hand, to comply with the UBS AG Remuneration policy framework. The Policy is meant not to encourage excessive risk taking, to contain mea- sures to avoid conflicts of interest, to be consistent with, and promote, sound and effective risk manage- ment and to be consistent with the UBS Group busi- ness strategy, objectives and values.
Further information in relation to UBS AG Remunera- tion Policy is available in the UBS Group AG Annual Report and in the Compensation report.
More details about the remuneration policy of the Management Company, which describes, but not limited to, how remuneration and benefits are deter- mined, are available at http://www.ubs.com/lu/en/ asset_management/investor_information.html.
The Policy is subject to an annual review by the control functions of the Management Company after review and update by the Human Resources department; and is approved by the Board of Directors. Last approval by the Board of Directors took place on 20 September 2019. No material changes were made to the Policy.

## Application of the requirements and remuneration disclosure
In accordance with the Article 151 of the UCITS Law, the Management Company is required to disclose at least annually certain information concerning its remuneration policy and the practices for its identified staff.
The Management Company complies with the afore- mentioned regulatory provisions in a way and to the extent that is appropriate to its size, internal organization and the nature, scope and complexity of its activities.
Considering the total size of funds under management, both UCITS and AIFs although a significant portion is not complex or risky investment, UBS Fund Management (Luxembourg) S.A. judges that the proportionality prin- ciple may not be applicable at the level of the company but at the level of the Identified staff.
By application of the proportionality principle for the Identified staff, the following requirements on pay-out processes for Identified staff are not applied:
- The payment of variable remuneration in instruments related mainly to the funds in relation to which they perform their activities;
- Deferral requirements;
- Retention periods;
- Incorporation of ex-post risk factors (i.e. malus or clawback arrangements).

The deferral requirements remain however applicable when the employee’s total annual compensation is exceeding the threshold defined under the UBS Group Compensation Framework; the variable compensation will be treated in line with the plan rules defined under the UBS Group Compensation Framework.

## Remuneration disclosure
Due to the roles of Management Company staff, the below disclosed remuneration was calculated in propor- tion of the net assets of the Fund out of the net assets of all the funds under the governance of UBS Fund Manage- ment (Luxembourg) S.A. (including both AIF and UCITS funds).
For the fiscal year ending 31 December 2019, the pro- portional remuneration (fixed and variable) paid by UBS Fund Management (Luxembourg) S.A. to its entire staff amounted the variable remuneration. The Management Company employed an average of 45.1 staff (full time equivalent) during this period.
The proportional remuneration (fixed and variable) paid by the Management Company to its Identified Staff amoun- ted to EUR 187 026, of which EUR 13 506 represented the variable remuneration (20 beneficiaries).

## Remuneration disclosure of delegates
For the year ending 31 December 2019, the aggregate total remuneration paid by all Investment Managers to their Identified Staff in relation to the Fund amounted to EUR 2 689 978, of which EUR 2 023 637 represented the variable remuneration (47 beneficiaries).
UBS (Lux) Equity SICAV
Annual report and audited financial statements as of 31 May 2020

Translation (ENDE, 2020-05-31):
# Ungeprüfle Informationen
- 
## Gesamtengagement

Risikomanagement
Das Risikomanagement gemäss Commitment-Ansatz und Value-at-Risk-Ansatz erfolgt entsprechend den geltenden Gesetzen und aufsichtsbehördlichen Bestimmungen.
Hebelwirkung
Die Hebelwirkung wird gemäss den geltenden ESMA-Richtlinien als Gesamtbetrag der Nennwerte der Derivative definiert, die vom jeweiligen Subfonds verwendet werden. Gemäss dieser Definition kann die Hebelwirkung zu einer künstlich erhöhten Fremdkapitalquote führen, da bestimmte Derivate, die zu Absicherungszwecken eingesetzt werden können, unter Umständen in die Berechnung einfliessen. Daher spiegeln diese Informationen nicht notwen- digerweise das genaue tatsächliche Risiko der Hebelwirkung wider, dem der Anleger ausgesetzt ist.
| UBS (Lux) Equity SICAV | Berechnungs- methode für das globale Risiko | Verwendetes Modell | Min VaR (%) Auslastung | Max VaR (%) Auslastung | Avg VaR (%) Auslastung | Durchschnittlicher Hebel 31.5.2020 (%) | Bezugs- portfolio (Benchmark) |
| --- | --- | --- | --- | --- | --- | --- | --- |
| – All China (USD) | Commitment-Ansatz |  |  |  |  |  |  |
| – Asian Smaller Companies (USD) | Commitment-Ansatz |  |  |  |  |  |  |
| – Emerging Markets Sustainable (USD) | Commitment-Ansatz |  |  |  |  |  |  |
| – Euro Countries Income (EUR) | Relativer Value-at-Risk |  |  |  |  |  |  |
|  | Ansatz | Historischer | 34.0% | 59.7% | 42.0% | 19.4% | Das Referenz-Portfolio |
|  |  | VaR |  |  |  |  | reflektiert |
|  |  |  |  |  |  |  | die Eigenschaften |
|  |  |  |  |  |  |  | eines breit |
|  |  |  |  |  |  |  | gefächerten Portfolios |
|  |  |  |  |  |  |  | bestehend aus Aktien |
|  |  |  |  |  |  |  | aus der Europäischen |
|  |  |  |  |  |  |  | Währungsunion (EWU). |
| – European High Dividend (EUR) | Commitment-Ansatz |  |  |  |  |  |  |
| – European Opportunity | Relativer Value-at-Risk |  |  |  |  |  |  |
| Unconstrained (EUR) | Ansatz | Historischer | 38.5% | 61.6% | 55.0% | 105.3% | Das Referenz-Portfolio |
|  |  | VaR |  |  |  |  | reflektiert die |
|  |  |  |  |  |  |  | Eigenschaften eines |
|  |  |  |  |  |  |  | breit gefächerten |
|  |  |  |  |  |  |  | Portfolios bestehend |
|  |  |  |  |  |  |  | aus Europäischen |
|  |  |  |  |  |  |  | Neben- und |
|  |  |  |  |  |  |  | Standardwerten |
|  |  |  |  |  |  |  | (Medium and |
|  |  |  |  |  |  |  | Large Caps). |
| – German High Dividend (EUR) | Commitment-Ansatz |  |  |  |  |  |  |
| – Global Emerging Markets |  |  |  |  |  |  |  |
| Opportunity (USD) | Commitment-Ansatz |  |  |  |  |  |  |
| – Global High Dividend (USD) | Commitment-Ansatz |  |  |  |  |  |  |
| – Global Impact (USD) | Commitment-Ansatz |  |  |  |  |  |  |
| – Global Income (USD) | Relativer Value-at-Risk |  |  |  |  |  |  |
|  | Ansatz | Historischer | 32.4% | 53.4% | 39.2% | 91.6% | Das Referenz-Portfolio |
|  |  | VaR |  |  |  |  | reflektiert die |
|  |  |  |  |  |  |  | Eigenschaften eines |
|  |  |  |  |  |  |  | breit gefächerten |
|  |  |  |  |  |  |  | Portfolios bestehend |
|  |  |  |  |  |  |  | aus weltweiten |
|  |  |  |  |  |  |  | Aktien. |

UBS (Lux) Equity SICAV Jahresbericht und geprüfter Jahresabschluss per 31. Mai 2020