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Index Services
Northern Trust's Index Services group specializes in developing custom index solutions for sophisticated clients.
LATEST UPDATES FROM INDEX SERVICES AT NORTHERN TRUST
September 2026
The following index rule changes have been approved for the Northern Trust High Yield Value-Scored US Corporate Bond Index, with the planned implementation to occur during the forward index construction period for the month of December, with the rules becoming effective on the December 1, 2026 market open.
- The existing liquidity score constraint, which restricted new issuances that fall in the bottom 5% of liquidity within each sector using “quantitative ranking of security characteristics obtained from company filings with the SEC”, will now also include the use of market prices and characteristics data for each issue for the purpose of quantitatively determining the liquidity rankings. With the addition of these datasets, we expect the liquidity flag may identify additional issues beyond the current “bottom 5% of liquidity in each sector” methodology language and as a result are removing that reference from the methodology.
- A new distressed private issue constraint will be added to the index construction to restrict adding new issues, or increasing the weight of existing issues, at each reconstitution if they have been flagged as distressed. Northern Trust Investments Quantitative Research team will be supplying a list of all the issues being flagged as distressed prior to the monthly construction of the index’s forward file for use in this constraint. In general, the distressed flag should identify issues being flagged as facing severe financial trouble, near-default or bankruptcy.
For more information on these updates or to see the updated index methodology document, please reach out to Northern Trust Index Services at nt_index_services@ntrs.com.
Mike Deverall
Manager, Index Services
Mike Deverall is Senior Vice President and Manager of the Index Services Group, which creates, manages, and licenses indices under the Northern Trust brand. Prior to founding the Index Services team in 2012, Mike held several roles within the Global Equity Group, with his responsibilities spanning portfolio management, investment research and portfolio operations. He earned an M.B.A., with distinction, from DePaul University's Kellstadt Graduate School of Business, and a B.S. from Miami University.
INDEX SERVICES - DISCLAIMERS
IMPORTANT INFORMATION
Northern Trust Corporation is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in North America, Europe, the Middle East and the Asia-Pacific region.
Northern Trust is the owner of any trademarks, service marks and copyrights related to its respective indexes. Index Data is provided by LSEG Data & Analytics, ICE Data Services, and Northern Trust Index Services. Performance returns displayed on this page are shown as Total Return or Net Total Return depending on whether the index universe is inclusive of US or non-US securities. Northern Trust's publication of the Northern Trust Indexes in no way suggests or implies an opinion by Northern Trust as to the attractiveness or appropriateness of investments in any or all securities upon which the Northern Trust Indexes are based.
All information presented prior to the index inception date is backtested. Backtested performance is not actual performance. The backtest represents a reasonable attempt to replicate how the index would have performed at each point in history. Returns produced by backtested results should be considered approximate to what the index would have returned had it actually been live, while trading/transaction costs, data availability, etc are not factored into the return. Past performance of the Indices is not an indication of future results. Prospective application of the methodology used to construct the Indices may not result in performance similar to the back-test returns shown. The backtest period does not necessarily correspond to the entire available history of the Index. For more details about the indices, including the manner in which they are rebalanced, the timing of such rebalancing, criteria for additions and deletions, as well as all index calculations, please refer to the methodology documents.
Another limitation of backtested information is that generally the backtested calculation is prepared with the benefit of hindsight. Backtested data reflect the application of the index methodology and selection of index constituents in hindsight. No backtested record can completely account for the impact of financial risk in actual trading. For example, there are numerous factors related to the equities (or fixed income, or commodities) markets in general which cannot be, and have not been accounted for in the preparation of the index information set forth, all of which can affect actual performance.
Indexes and/or benchmarks are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.
Northern Trust Asset Management (NTAM) may utilize an environmental, social, and governance (ESG) framework in certain investment strategies. Considering ESG factors may result in reduced or increased exposure to certain companies or industries, which may cause the applicable strategy’s performance to be lower than that of strategies that do not consider ESG factors. In addition, the added cost of ESG-related diligence in assessing the ESG parameters of an investment may also reduce the profitability of an applicable strategy’s investments. There may also be different views of what it means for an issuer to have positive or negative ESG characteristics. There can be no guarantee that an NTAM’s determinations regarding an issuer’s ESG characteristics will be accurate, including whether any such ESG characteristics are financially material or immaterial; any such inaccuracies could adversely affect a strategy’s performance.
Northern Trust Asset Management is composed of Northern Trust Investments, Inc. Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K, NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Northern Trust Asset Management Australia Pty Ltd, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.
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