With self-managed super funds having average assets of $913,129, it is perhaps easy to overlook that a quarter of funds have assets of $200,000 or less, according to ATO statistics.

By the time that fund assets of $200,000 (or less) are divided between members, it is clear that a sizeable number of SMSF members have relatively modest super savings – particularly for those who are late in their working lives or in early retirement.

Further, 7% of SMSFs had assets under $50,000 in June 2009 while 13% had assets under $100,000.

On a positive side, other ATO statistics show that seven years ago, more than 42% of SMSFs had assets of less than $200,000 against 25.5% by June 2009 (the latest figure available).

But the contribution caps introduced three years ago and later halved mean that it is now difficult, depending upon the circumstances of the members, to rapidly build up the assets of a self-managed fund that had begun life with a low asset value.

And another point to keep in mind is that almost 40% of SMSFs have at least one member in the pension phase. And, on the face of it, the ability of these funds to accumulate more assets may be restricted – or no longer possible, again determining upon the circumstances.

Of course, numerous SMSFs paying pensions have younger members still in the accumulation phase, and many would include members taking transition-to-retirement pensions while simultaneously making salary-sacrifice contributions as part of a carefully-planned strategy.

The final report of the Cooper superannuation review stated that its statistical summary of SMSFs, published earlier, had presented a “less than optimal picture” of funds with $200,000 or less in assets. “It showed on, average, they lacked investment diversification, suffered higher relative costs and underperformed larger-size funds,” states the Cooper review.

It is worth keeping in mind whenever figures are published showing the high average asset values of SMSFs that, in reality, many funds have much lower asset values than the average. And anyone thinking about establishing a fund with a low total balance should understand the possible limitations.

This is an often overlooked side of SMSFs.