- Baillie Gifford Enhanced Yield Fund is now operational and available to eligible professional investors in the UK, Switzerland, Hong Kong, and the Cayman Islands
- Extends regulated tokenised funds beyond cash management into actively managed fixed income, with a target yield of approximately 7% in USD
- Access to the Fund is supported by regulated digital asset custodians BNY, Anchorage Digital, Archax and BitGo Bank & Trust, National Association (“BitGo Bank & Trust”).
Baillie Gifford, the independent global investment manager established in 1908, has opened the Baillie Gifford Enhanced Yield Fund (BAGEY) to eligible professional investors in the UK, Switzerland, Hong Kong, and the Cayman Islands, subject to applicable laws, regulations, and distribution restrictions. This next phase extends regulated tokenised funds beyond cash management into actively managed fixed income.
The Fund is designed for digital-market participants seeking access to an actively managed fixed-income strategy not previously available in tokenised form. We are seeing interest from investors who already have onchain capabilities, and crypto native investors, including family offices. We also expect the fund to be a good entry point for traditional clients who want to test out digital assets, such as DC pension and financial advisory platforms and wealth managers.
Money-market funds have shown that regulated investment products can operate onchain. BAGEY builds on that foundation as a US dollar-denominated, UK-regulated OEIC investing in a portfolio of government and corporate bonds. The strategy brings actively managed, short-duration fixed income onto the same infrastructure in pursuit of enhanced yield relative to its benchmark1. The portfolio offers a yield of c. 7% in USD, two-year duration and an average credit quality of BBB.
BAGEY is available exclusively as a natively issued tokenised fund. Deployment will start on Ethereum, with Solana to follow. As a fully native tokenised fund, each token represents an investor’s holding, and the blockchain is the legal record of ownership. Eligible professional investors can access and hold the Fund through regulated digital asset custodians, including BNY, Anchorage Digital, Archax and BitGo Bank & Trust.
Sandy Jones, Director, Digital Assets at Baillie Gifford, said:
“BAGEY began with a practical client requirement: a regulated way to access professionally managed fixed income without stepping outside the digital infrastructure that investors use to hold and manage assets. That is what we have built. Making the Fund operational across four markets means we can now work with a broader range of professional investors and build real evidence of where tokenisation delivers practical value through actual use rather than theory.”
Eligible professional investors can mint and redeem Fund tokens directly using stablecoins or fiat, with a minimum investment of $100. The Fund currently supports USDC, is daily-dealt with a daily official NAV, and provides an indicative NAV every 15 minutes whenever global markets are open, increasing price transparency and supporting onchain use cases.
Stuart Dunbar, Partner at Baillie Gifford, said:
“Money-market funds have played an important role in showing that regulated products can run onchain. BAGEY builds on that progress by bringing actual investment expertise onto the same infrastructure, including active bond selection, credit allocation, duration, and currency management. Tokenisation earns its place when it carries investment strategies that require skill and judgement.”