In our investment policy we aim at an optimum risk-return profile. Our criterion in this regard is the Real Surplus at Risk, which indicates the size of the risk that evaporates our capital surplus due to trends in the financial markets. This risk has roughly halved over the past five years, without affecting the expected return on investments. The resources we used to facilitate this change are based on the four pillars of our strategic investment policy:

1. Diversification of the asset mix

2. Reduction in exchange risks
Investment in foreign currency assets involves exchange risks. By hedging these exchange risks, Progress‟ invested capital becomes less vulnerable to currency fluctuations with the euro.

3. Reduction in interest rate exposure and inflation exposure
The market value of the liabilities is subject to interest rate trends and inflation trends. This interest rate exposure and inflation exposure is only compensated in our capital to a small degree by investment in fixed-interest securities. As a result, the surplus of the pension fund remains sensitive to changes in interest rate and inflation. By transacting interest rate derivatives and inflation derivatives, we bring the interest rate exposure and inflation exposure more in balance with the liabilities.

4. Dynamic investment policy
In order to support the stability of our real coverage ratio, we started a dynamic investment policy in 2011. Through this fourth pillar of our strategy, we make the organisation of the investment policy dependent on changes in the real coverage ratio. If the real coverage ratio increases, the investment policy will focus on reducing downward risks; if the real coverage ratio declines, we will take advantage of the situation.

Progress uses 'responsible investment' as an additional criterion in its investment strategy.