Baillie Gifford has expanded its Enhanced Yield Fund — BAGEY — to Hong Kong professional investors, making its natively tokenised bond fund available in Asia's leading financial centre less than a month after the fund's UK launch.
According to Baillie Gifford's primary press release, BAGEY is available to Institutional Professional Investors and Qualified Corporate Professional Investors in Hong Kong, with subscriptions and redemptions in fiat currency or USDC. The fund offers T+0 redemptions up to 10% of net asset value — a significant liquidity feature distinguishing it from conventional bond fund structures — and an indicative NAV for secondary market trading and ecosystem use cases.
The fund currently yields 7% with a two-year duration and BBB average credit quality, investing in an actively managed portfolio of short-duration government and corporate bonds. Issued natively on both Ethereum and Solana, BAGEY's token represents the investor's direct holding in the fund — the blockchain serves as the official legal record of ownership rather than a parallel or supplementary system.
Theo Golden, Head of Digital Assets and Tokenisation at Baillie Gifford, said Hong Kong is well positioned as a leading global financial centre to drive financial innovation, and described the launch as an important step toward bringing new investment products and expanded utility to both on-chain and traditional investors. Stuart Dunbar, Partner at Baillie Gifford, said the firm believes tokenisation will become part of mainstream investment infrastructure over time and that its role is to give clients access through structures that are robust, transparent, and built to endure.