As we look back on the quarter, we continued to see the impact of COVID-19 on both our lifestyles and businesses throughout the globe. With supply-chain interruptions, and COVID-19 restrictions, North American inflation continued to rise, and investors became sensitized to central banks’ unwinding of stimulus measures. Equity markets continued on their streak as earnings data remained positive and renewed expectations of continued low interest rates overcame any negative sentiment spurred by COVID-19 infections globally.
The back half of the third quarter was a decidedly mixed bag for investors as we saw more volatility in equity markets globally. The historically volatile month of September was true to form, and we anticipate continued volatility as investors grapple with the Federal Reserve’s potential tapering of bond purchases in November and higher future interest rates.
In addition to our investment team, Gluskin Sheff and Onex have been busy over the summer months working to bring our clients a product and service offering that sets us apart from the competition.
We were very excited to announce that our Onex Falcon direct lending strategy is now available to Canadian accredited investors. This strategy delivers a high income, utilizing private, senior secured loans to lower middle market companies in North America, as well as selectively in Europe and non-North American companies. Onex Falcon targets to deliver a 9-10% net return, including an expected cash distribution of 8% paid quarterly.
And as part of our expanded wealth planning offering, I’m delighted to announce the launch of the Gluskin Sheff Foundation for Philanthropy (GSFFP), which is a registered charity providing donor advised funds and other philanthropic services to our clients.
Through the GSFFP, Canadian investors will have a simplified avenue to consolidate their charitable giving in one place. With a minimum initial contribution of C$100,000, Gluskin Sheff clients can work with their Gluskin Sheff representative to establish and personalize a donor advised fund within their overall wealth plan. The GSFFP provides a charitable tax receipt for the value of the gift and enables donors to increase and sustain their giving to registered charities across Canada.
These initiatives were driven by our pursuit of bringing our clients a differentiated offering that complements our unwavering commitment to client service.
Our teams have slowly started to return to the office on a hybrid model that allows us to collaborate effectively while maintaining public health guidance. I can’t tell you how amazing it has been to see our team brainstorming and sharing ideas in real time. While we continue to invest in our digital transformation, there is no substitute for the energy that comes from engaging with our clients and employees in person.
We thank you for your continued patronage and I look forward to seeing all of you in person soon.
President & Chief Executive Office