Global investment manager Baillie Gifford has opened its tokenized fixed income fund to eligible accredited investors in Singapore.
With the expansion of the Baillie Gifford Enhanced Yield Fund ( Bagey ), Singapore-based investors gain access to an actively managed short-duration bond strategy through a fully native tokenized fund.
Unlike structures that place a digital token or wrapper around an existing fund, Bagey issues tokens directly as the investor's holding in the fund, with the blockchain forming the legal source of truth for ownership.
This architecture takes tokenization beyond the money-market products that have defined the market to date, bringing actively managed fixed income onchain, the firm says.
The fund is designed to make the investment more useful in digital financial markets by enabling features such as stablecoin subscriptions and redemptions, faster settlement, and greater interoperability.
Bagey is a US dollar-denominated, UK-regulated open-ended investment company ( OEIC ) investing in government and corporate bonds. It currently offers a yield of about 7% in US dollars, with around two years’ duration and an average credit quality of BBB, while seeing enhanced yield relative to its benchmark.
The fund’s benchmark is a composite index comprising 50% ICE BofA 1-3 Year US Treasury Index and 50% ICE BofA 1-3 Year US Corporate Index.
Onchain investment
Bagey is designed for investors already operating onchain, as well as professional investors looking to access traditional investment strategies through digital infrastructure.
"Singapore is a natural market for the Bagey fund. Investors here are sophisticated, internationally minded and already thinking seriously about how tokenization can be used in investment markets,” says Calvin Liew, Baillie Gifford’s client director in Singapore.
"Bagey gives investors access to something different: an actively managed fixed income strategy, targeting an attractive yield, through an investment built natively onchain from the outset.”
The fund is issued exclusively in tokenized form, with deployment beginning on Ethereum and Solana to follow.
Eligible investors can mint and redeem fund tokens using stablecoins or fiat currency, with a minimum investment of US$100. The fund currently supports USDC and is dealt daily.
