1.3 Activity Weights

To identify how many companies to include from each sector, we compute a proxy for sector/activity weights within each country. Using data from the Bureau of Economic Analysis (BEA, 2024) and Eurostat (Eurostat, 2024), we obtain cross-country sectoral GDP contribution data for each year and use that to split the GDP across PECCS™ activity classes. We also perform adjustments to the sectoral share to account for industry definitions and the tangibility of companies in each sector, all of which affect the capital structure choices and, hence, the institutional investability of these indices. The results of such sectoral attribution are shown in the figure below for the year 2023, aggregated by regions for readability.

Note the proposed weights below are indicative and not the final weights used in the index as for the flagship indices we further exclude activities that are not considered typical private equity investments such as banks, insurance companies, and infrastructure companies. After excluding those sectors, the weights are redistributed among the remaining activities.

_{BEA (2024). Bureau of Economic Analysis. Gross Output by Industry. U.S. Department of Commerce. Accessed July 12, 2024. https://www.bea.gov/data/industries/gross-output-by-industry.}

_{Eurostat (2024). Statistics Explained. European Commission. Accessed July 12, 2024. https://ec.europa.eu/eurostat/statistics-explained/index.php.}