Barclays Africa has expanded its exchange traded fund (ETF) offering in Mauritius with the listing of its eRAFI Overall SA Index ETF (eRAFI Overall SA ETF) on the Stock Exchange of Mauritius (SEM).

The eRAFI Overall SA ETF, an enhanced fundamental index ETF, provides investors in Mauritius with the opportunity to invest in a listed security tracking the performance of the 40 highest quality shares on the Johannesburg Stock Exchange (JSE) in Mauritian rupees, and marks the first time that Barclays Africa has listed an equity-linked ETF outside South Africa.

Vladimir Nedeljkovic, Head of Exchange Traded Products at the Corporate and Investment Banking division of Barclays Africa, said: “By listing the eRAFI Overall SA ETF in Mauritius, Barclays Africa is giving investors a unique opportunity to gain direct exposure to the performance of the 40 highest quality shares on the largest exchange in Africa, while simultaneously increasing the liquidity of the SEM and deepening financial markets.”

The eRAFI methodology weights shares based on fundamental valuation metrics, rather than traditional market capitalisation. In most global capital markets, including South Africa, fundamental valuation strategies such as eRAFI over time significantly outperform market benchmarks such as market capitalisation-weighted indices.

The shares that make up the eRAFI Overall SA Index ETF are selected from the 100 largest JSE listed companies, subject to those companies meeting certain liquidity requirements and are ranked by their fundamental value (book value, cash flow, sales and gross dividends).

“ETFs remain among the fastest growing investment funds in major markets across the world, and we are delighted, as the largest issuer of exchange traded products on the continent, to list our third ETF on the SEM and help investors realise their ambitions,” added Nedeljkovic.

Barclays Africa first the listed the NewGold ETF on the SEM in July 2013 and then the NewPlat ETF in February 2014.

NewPlat is the largest ETF in Africa, and the largest platinum ETF in the world.

The eRAFI Overall SA ETF was first listed in the JSE on in June 2008 and made its debut on the SEM on  October 6, 2014.