BlackRock [see profile] and State Street [see profile] beat out six other asset managers to split a $6 billion global equity index mandate for the UAW's Retiree Medical Benefits Trust, reports the Wall Street Journal. The paper adds that the three-year-old VEBA (that stands for Voluntary Employee Beneficiary Association), awarded the mandate for global equity index funds.

Eric Henry, the trust's chief investment officer, told the paper that the fund is shifting to more conservative investments after starting by awarding $2 billion of mandates to five hedge funds. It invested another $380 million in equity real estate and $375 million in private equity.

The VEBA terminated a $500 million mandate with hedge fund Promark Global Advisors Inc. and expects to receive the assets back next month.

Ford, Chrysler and GM pitched a total of $45.4 billion into the VEBA to cover healthcare payments for 800,000 retired auto workers and their spouses. The trust now also holds securities issued by GM and Chrysler.

Henry told the paper that the VEBA is planning to place half of its assets in global stocks, with another quarter going to core fixed income and one-eighth each to TIPS and long-duration bonds. 

Edited by: Sean Hanna, Editor in Chief


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