# Unaudited Information
- 
## Remuneration Policy and quantitative disclosure

The Board of Directors of UBS Fund Management (Luxembourg) S.A. has adopted a remuneration policy (the “Policy”) whose objectives are on one hand to ensure that the remuneration framework is in line with the applicable laws and regulations, and more specifically with provisions defined under:
- the Luxembourg Law of 17 December 2010 on Undertakings for Collective Investment in Trans- ferable Securities as amended from time to time (the "UCITS Law") transposing the UCITS Directive 2009/65/EC (the "UCITS Directive") as amended by Directive 2014/91/EU (the "UCITS V Directive");
- the Alternative Investment Fund Managers Direc- tive ("AIFMD") 2011/61/EU, transposed into the Luxembourg AIFM Law dated from 12 July 2013, as amended from time to time;
- the ESMA’s guidelines on sound remuneration poli- cies under the UCITS Directive - ESMA/2016/575 and ESMA’s guidelines on sound remuneration poli- cies under the AIFMD - ESMA/2016/579 both pub- lished on 14 October 2016 and;
- the CSSF Circular 10/437 on Guidelines concern- ing the remuneration policies in the financial sector issued on 1 February 2010;
- the Directive 2014/65/EU on markets in financial instruments (MiFID II);
- the Commission Delegated Regulation 2017/565/EC of 25 April 2016 supplementing Directive 2014/65/ EU (MiFID II Level 2);
- 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 measures to avoid conflicts of interest, to be consistent with, and promote, sound and effective risk management and to be consistent with the UBS Group business strategy, objectives and values.
Further information in relation to UBS AG Remuneration 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 Management (Luxembourg) S.A. (including both AIF and UCITS funds).
UBS (Lux) Strategy SICAV Annual report and audited financial statements as of 31 May 2020

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

Risikomanagement
Das Risikomanagement gemäss Verpflichtungsansatz 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 Nominalwerte 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 wer- den können, unter Umständen in die Berechnung einfliessen. Daher spiegeln diese Informationen nicht notwendiger- weise das genaue tatsächliche Risiko der Hebelwirkung wider, dem der Anleger ausgesetzt ist.
Subfonds		Berechnungs-	Verwendetes		Min		Max		Avg Durchschnitt-			Bezugs- methode für das		Modell	VaR (%)	VaR (%)	VaR (%)	licher Hebel		portfolio globale Risiko			Auslastung Auslastung Auslastung 31.5.2020 (%)	(Benchmark)
| – Dynamic Income (USD) | Relativer VaR Ansatz | Historischer VaR | 34.20% | 59.00% | 44.11% | 30.25% | Das Referenzportfolio |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  | reflektiert die |
|  |  |  |  |  |  |  | Eigenschaften |
|  |  |  |  |  |  |  | eines breit |
|  |  |  |  |  |  |  | gefächerten |
|  |  |  |  |  |  |  | Portfolios |
|  |  |  |  |  |  |  | bestehend aus |
|  |  |  |  |  |  |  | weltweiten Aktien |
|  |  |  |  |  |  |  | und festverzinslichen |
|  |  |  |  |  |  |  | Wertpapieren. |
| – Fixed Income (CHF) | Commitment-Ansatz |  |  |  |  |  |  |
| – Fixed Income (EUR) | Commitment-Ansatz |  |  |  |  |  |  |
| – Fixed Income (USD) | Commitment-Ansatz |  |  |  |  |  |  |
| – Income (CHF) | Commitment-Ansatz |  |  |  |  |  |  |
| – Income (EUR) | Commitment-Ansatz |  |  |  |  |  |  |
| – Income (USD) | Commitment-Ansatz |  |  |  |  |  |  |
| – Systematic Allocation |  |  |  |  |  |  |  |
| Portfolio Defensive (USD) | Relativer VaR Ansatz | Historischer VaR | 5.86% | 54.70% | 39.03% | 36.89% | Das Referenzportfolio |
|  |  |  |  |  |  |  | reflektiert die |
|  |  |  |  |  |  |  | Eigenschaften eines |
|  |  |  |  |  |  |  | breit gefächerten |
|  |  |  |  |  |  |  | Portfolios bestehend |
|  |  |  |  |  |  |  | aus weltweiten |
|  |  |  |  |  |  |  | Aktien und Anleihen in |
|  |  |  |  |  |  |  | variablem Verhältnis, |
|  |  |  |  |  |  |  | wobei der Anteil an |
|  |  |  |  |  |  |  | Anleihen üblicherweise |
|  |  |  |  |  |  |  | überwiegt. |
| – Systematic Allocation |  |  |  |  |  |  |  |
| Portfolio Dynamic (USD) | Relativer VaR Ansatz | Historischer VaR | 10.39% | 53.75% | 37.40% | 68.10% | Das Referenzportfolio |
|  | reflektiert die |
| Eigenschaften eines |
| breit gefächerten |
| Portfolios bestehend |
| aus weltweiten |
| Aktien und Anleihen |
| in variablem |
| Verhältnis, wobei der |
| Anteil an Aktien |
| üblicherweise höher ist als |
| beim Subfonds |
| Systematic Allocation |
| Portfolio Medium (USD). |

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