ANN ARBOR, Mich.—The United Auto Workers union is gathering in Detroit this week to elect a union president. But a new center of the labor power is emerging 45 miles to the west, reported The Wall Street Journal.

Here, a newly independent fund born out of the remaking of the Detroit auto business three years ago is busy figuring out where to place its roughly $45 billion in assets. That doesn't include ownership stakes in two of the three U.S. auto makers.

The new pool is sure to tantalize money managers across the country, some of which, like BlackRock Inc., have already gotten business from the fund, called the UAW Retiree Medical Benefits Trust. The trust has put out requests for proposals to manage parts of its global stocks and fixed-income portfolios.

Known as a VEBA, for voluntary employee beneficiary association, in January the trust became one of the world's largest such funds after accepting large stakes in General Motors Co., Ford Motor Co. and Chrysler Group LLC as part of a cost-cutting deal with the auto makers.

The VEBA relieves the car companies of responsibility of lifelong health-care benefits for 800,000 retired auto workers and their spouses.

It also means a small group of 11 trustees, five of whom are UAW appointees, is signing off on the best way to invest the money. Eric Henry, the fund's chief investment officer, assumed the UAW trust post after resigning in August as executive director and chief investment officer of the $15.6 billion Texas Municipal Retirement System.

Here, a newly independent fund born out of the remaking of the Detroit auto business three years ago is busy figuring out where to place its roughly $45 billion in assets. That doesn't include ownership stakes in two of the three U.S. auto makers.

The new pool is sure to tantalize money managers across the country, some of which, like BlackRock Inc., have already gotten business from the fund, called the UAW Retiree Medical Benefits Trust. The trust has put out requests for proposals to manage parts of its global stocks and fixed-income portfolios.

Known as a VEBA, for voluntary employee beneficiary association, in January the trust became one of the world's largest such funds after accepting large stakes in General Motors Co., Ford Motor Co. and Chrysler Group LLC as part of a cost-cutting deal with the auto makers.

The VEBA relieves the car companies of responsibility of lifelong health-care benefits for 800,000 retired auto workers and their spouses.

It also means a small group of 11 trustees, five of whom are UAW appointees, is signing off on the best way to invest the money. Eric Henry, the fund's chief investment officer, assumed the UAW trust post after resigning in August as executive director and chief investment officer of the $15.6 billion Texas Municipal Retirement System.