HEDGE FUNDS | Cesar Tordesillas, Singapore

ING rebalances employee hedge portfolio

ING has bought 7,260,000 ordinary shares of its delta hedge portfolio, which is used to hedge employee options. The shares were bought on the open market at an average price of US$5.70 per share.The company does not issue new shares to cover employee options. Instead, employees receive shares from the delta hedge portfolio, which is maintained to minimise the market risks and price fluctuations that arise from the employee option programmes. The hedge position is adjusted periodically, generally on a quarterly basis, in accordance with regulatory requirements and ING's policies to prevent market manipulation.The hedge book currently holds 41.1 million ordinary ING shares, representing 2 percent of the 2,063 million shares outstanding.

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