LMSMX vs. MCFIX

Last updated Jul 11, 2026

LMSMX (Western Asset SMASh Series M Fund) and MCFIX (Mercer Core Fixed Income Fund) are both Intermediate Core-Plus Bond funds. Over the past 5 years, LMSMX returned -2.11%/yr vs -0.44%/yr for MCFIX. Their correlation of 0.83 suggests significant overlap in exposure. LMSMX charges 0.00%/yr vs 0.16%/yr for MCFIX.

Performance

LMSMX vs. MCFIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Western Asset SMASh Series M Fund (LMSMX) and Mercer Core Fixed Income Fund (MCFIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LMSMX achieves a 1.21% return, which is significantly higher than MCFIX's -1.66% return.

LMSMX

• 1D: 0.25%
• 1M: 0.10%
• 6M: 0.83%
• YTD: 1.21%
• 1Y: 7.06%
• 3Y*: 5.89%
• 5Y*: -2.11%
• 10Y*: —

MCFIX

• 1D: 0.11%
• 1M: -0.57%
• 6M: -1.77%
• YTD: -1.66%
• 1Y: 1.06%
• 3Y*: 3.88%
• 5Y*: -0.44%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

LMSMX vs. MCFIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
LMSMX Western Asset SMASh Series M Fund	1.21%	12.15%	-1.72%	5.13%	-23.44%	-2.32%	12.86%	4.11%
MCFIX Mercer Core Fixed Income Fund	-1.66%	6.64%	2.02%	6.47%	-13.69%	-1.05%	4.75%	3.31%

Correlation

The correlation between LMSMX and MCFIX is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since Apr 12, 2019	0.83

The correlation between LMSMX and MCFIX shifts across timeframes, from 0.76 (1 year) to 0.88 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

LMSMX vs. MCFIX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LMSMX

LMSMX Risk / Return Rank: 43
LMSMX Sharpe Ratio Rank: 36
LMSMX Sortino Ratio Rank: 42
LMSMX Omega Ratio Rank: 39
LMSMX Calmar Ratio Rank: 62
LMSMX Martin Ratio Rank: 36

MCFIX

MCFIX Risk / Return Rank: 6
MCFIX Sharpe Ratio Rank: 6
MCFIX Sortino Ratio Rank: 6
MCFIX Omega Ratio Rank: 5
MCFIX Calmar Ratio Rank: 6
MCFIX Martin Ratio Rank: 6

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LMSMX vs. MCFIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Western Asset SMASh Series M Fund (LMSMX) and Mercer Core Fixed Income Fund (MCFIX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	LMSMX	MCFIX	Difference
Sharpe ratio: Return per unit of total volatility	1.31	0.29	+1.02
Sortino ratio: Return per unit of downside risk	2.07	0.44	+1.62
Omega ratio: Gain probability vs. loss probability	1.25	1.05	+0.20
Calmar ratio: Return relative to maximum drawdown	2.43	0.31	+2.11
Martin ratio: Return relative to average drawdown	6.34	0.76	+5.58

LMSMX vs. MCFIX - Sharpe Ratio Comparison

The current LMSMX Sharpe Ratio is 1.31, which is higher than the MCFIX Sharpe Ratio of 0.29. The chart below compares the historical Sharpe Ratios of LMSMX and MCFIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

LMSMX vs. MCFIX - Drawdown Comparison

The maximum LMSMX drawdown since its inception was -30.76%, which is greater than MCFIX's maximum drawdown of -21.68%. Use the drawdown chart below to compare losses from any high point for LMSMX and MCFIX.

Drawdown Indicators

	LMSMX	MCFIX	Difference
Max Drawdown Largest peak-to-trough decline	-30.76%	-21.68%	-9.08%
Max Drawdown (1Y) Largest decline over 1 year	-2.64%	-3.75%	+1.11%
Max Drawdown (3Y) Largest decline over 3 years	-10.50%	-6.32%	-4.18%
Max Drawdown (5Y) Largest decline over 5 years	-30.18%	-18.72%	-11.46%
Current Drawdown Current decline from peak	-12.46%	-6.61%	-5.85%
Average Drawdown Average peak-to-trough decline	-10.14%	-8.50%	-1.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.01%	1.48%	-0.47%

Volatility

LMSMX vs. MCFIX - Volatility Comparison

Western Asset SMASh Series M Fund (LMSMX) and Mercer Core Fixed Income Fund (MCFIX) have volatilities of 1.19% and 1.23%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LMSMX	MCFIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.19%	1.23%	-0.04%
Volatility (6M) Calculated over the trailing 6-month period	2.88%	2.86%	+0.02%
Volatility (1Y) Calculated over the trailing 1-year period	4.91%	4.07%	+0.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.38%	6.05%	+4.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.13%	6.09%	+2.04%

LMSMX vs. MCFIX - Expense Ratio Comparison

LMSMX has a 0.00% expense ratio, which is lower than MCFIX's 0.16% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

LMSMX vs. MCFIX - Dividend Comparison

LMSMX's dividend yield for the trailing twelve months is around 4.41%, more than MCFIX's 4.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
LMSMX Western Asset SMASh Series M Fund	4.41%	4.20%	5.24%	4.68%	3.40%	3.78%	6.84%	7.19%	3.18%	3.24%
MCFIX Mercer Core Fixed Income Fund	4.34%	3.89%	4.54%	3.68%	3.31%	2.45%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LMSMX and MCFIX in my portfolio?

LMSMX and MCFIX have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LMSMX or MCFIX?

MCFIX has higher volatility (1.23%) compared to LMSMX (1.19%). In terms of maximum drawdown, LMSMX dropped -30.76% vs MCFIX's -21.68%.

Which has better risk-adjusted returns?

LMSMX currently has the higher Sharpe Ratio (1.31 vs 0.29), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.