The latest news in investment offerings, financial products and other services relevant to wealth advisors and their clients.

Baillie Gifford
Baillie Gifford has welcomed authorisation from the Securities and Futures Commission (SFC) for what it says is Hong Kong's first fully-native tokenized investment fund for professional investors.

The Baillie Gifford Enhanced Yield Fund (BAGEY), which was developed with BNY, is an actively managed portfolio of short-duration government and corporate bonds. The fund will expand Hong Kong's tokenized investment market into fixed income, Baillie Gifford said in a statement. 

Contrasting with tokenized funds that rely on intermediaries or Special Purpose Vehicle (SPV) structures, BAGEY is issued natively on public blockchain infrastructure, the firm said.

Under this structure, the token itself represents the investor's holding and the blockchain serves as the official record of ownership. By eliminating the need for parallel records, this approach creates a simpler, more transparent, and legally robust framework built from the ground up for digital markets, while fully maintaining the standards of a regulated investment fund, the firm said.

Eligible professional investors can subscribe and redeem fund tokens using fiat currency or stablecoins. The fund, which is denominated in dollars, is available on Ethereum and Solana. Using these stablecoin rails, BAGEY will also enable T+0 redemptions of up to 10 per cent of net asset value and it will feature an indicative NAV for secondary market trading and ecosystem use cases.