Capstone Unveils ESOP Fund

January 30, 2002 ( - As controversy continues to swirl around the proper role of company stock in retirement plans, a Houston fund manager unveiled a fund investing in US firms with broad-based employee stock ownership programs.

Capstone Asset Management Company said in a press release that the new fund, Capstone Employee Stock Ownership Fund, would seek long-term capital appreciation.

Target companies will have stock purchase, stock bonus, or stock option plans available to 50% or more of their employees.

The fund will normally hold 60 to 80 stocks from various sectors of the market, the company said.

According to the Capstone statement, studies of employee stock ownership by various researchers over the past ten years showed that improved corporate operating performance might translate over time into improved stock market performance as well.