Industry funds Auscoal Super and Maritime Super have decided not to merge after nearly eight months of discussions.
After studying the synergies of the merger, the funds said they had more to gain from establishing alliances in selected areas.
"At this time we have found there are greater savings to be made through alliances," Auscoal chief executive Bruce Watson said yesterday.
"Over the past three years we've found various synergies and cost savings in investments, for instance, we've worked together on Investec Global Aircraft Fund and Wilshire Private Markets Asia Number 2, and we have a member education alliance where both funds collaborate to develop and source relevant and timely material," Watson said.
The funds are now looking to extend their alliances to clearing house facilities and financial advice.
"Our two organisations have always enjoyed looking for ways to work together," Maritime Super chief executive Peter Robertson said.
"Currently, we are exploring if building and sharing financial advice and clearing house capabilities will bring greater value to our members and employers."
The merger of the two funds would have created an $8 billion fund, and was originally instigated because of the "longstanding synergies" between the maritime and mining industries, the funds said last year.
