UAW Fund: $45 Billion For Investing
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.
More Industry

RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →