Briefly:

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Goodman & Company, Investment Counsel is seeking the approval of unitholders in respect to a proposed change the Dynamic Equity Income Fund’s investment objective.

The fund’s current investment objective is “to achieve high income and long-term growth of capital through investment primarily in business, resource, real estate, utility and other investment trusts and interest bearing securities”.

Beginning January 2011, income trusts will generally be taxed at the same rate as corporations, and as a result, many income trusts have converted to corporations.

In response, the fund proposes to change its investment objective so as to allow greater flexibility to invest in other forms of issuers, such as corporations, in pursuing its original mandate.

Unitholders of record as of the close of business on September 1, 2010 will receive a notice of special meeting (to be held on or about October 13, 2010), proxy and management information circular describing the proposed change to the investment objective. The proposed change is subject to the fund obtaining all necessary approvals, including unitholder approval.

– John Powell

• • •

Raymond James welcomes new faces

Raymond James Ltd. is adding three new members to its investment banking mining team, adding a managing director and two associates to its Toronto offices.

John Willett takes on the role of managing director, with Kevin Carter and Christian Kargl-Simard named as associates.

“The Canadian mining sector is a priority for the firm and we are committed to ensuring we have the people and capabilities to execute on behalf of our Canadian mining clients,” said Jason Holtby, senior managing director and head of investment banking.

Willett has more than 20 years of senior experience in mining finance and advisory work. Carter has focused on the Canadian investment banking in the resource sector where he has assisted on several mining-related M&A deals, sponsorships and financing transactions. Kargl-Simard is a professional engineer and has worked on both technical and finance roles with a focus on mining finance and M&A.

– John Powell

• • •

Jobs engines stall, employment plunges

A key engine of Canada’s remarkable recovery stalled last month as the economy shed a massive 139,000 full-time jobs and the unemployment rate rose for the first time in almost a year.

The overall news wasn’t as bleak, as most of those jobs were not altogether lost but instead transferred into part-time work. But the reversal was enough to hike the unemployment rate back to 8%.

Statistics Canada said the net job losses for the month was a more modest 9,300.

Economists had expected a weak July, particularly as the economy had been churning out jobs at a far faster clip than appeared justified by the growth rate — adding 227,000 in the previous three months alone.

StatsCan offered little explanation for such a reversal from what had been one of the world’s most robust employment records since the recession, other than a large 65,000 jobs loss in the education sector had historical precedence during the summer.

Aside from education workers — which included teachers, assistants, administrators and custodial staff — there were setbacks in the finance, insurance, real estate and leasing services.

Some positive news in the weak report was that the goods producing sector continued to grow, picking up 42,000 workers, including 28,500 in the still depressed factories sector.

Still, it noted that over the past year, Canada’s jobs picture remains bright, just not as bright as it had been just a month ago when the agency reported almost all of the jobs shed during the 2008-2009 downturn had been recouped.

The tally now stands at 394,000 jobs created since last July, about 20,000 shy of the recession losses.

– The Canadian Press

• • •

U.S. unemployment unchanged at 9.5%

Private U.S. employers added new workers at a weak pace for the third straight month, making it more likely economic growth will slow in the coming months. The U.S. jobless rate was unchanged at 9.5%.

The Labor Department said Friday that companies added a net total of 71,000 jobs in July, far below the roughly 200,000 needed each month to reduce the unemployment rate.

Overall, the economy lost a net total of 131,000 jobs last month, but that was mostly because 143,000 temporary census jobs ended.

The department also said that businesses hired fewer workers in June than it had previously estimated. June’s private-sector job gains were revised down to 31,000 from 83,000. May was revised up slightly to show 51,000 net new jobs, from 33,000.

The “underemployment” rate was the same as in June, at 16.5%. That includes those working part time who would prefer full-time work and unemployed workers who’ve given up on their job hunts.

All told, there were 14.6 million people looking for work in July. That’s roughly double the figure in December 2007, when the recession began.

Even if hiring picks up, it will take years to regain all the jobs lost during the recession. The economy lost 8.4 million jobs in 2008 and 2009. This year, private employers have added only 559,000 jobs.

– The Associated Press

• • •

Dollar parity seen as hollow victory

The Canadian dollar is taking yet another run at parity, but this time reaching that benchmark would not be much of a victory. Analysts note that the current manifestation of a muscular loonie is more illusion than reality.

The currency has been generally on a winning streak relative to the U.S. dollar since it traded as low as 93.65 cents US a month ago, backed by rising commodity prices.

It’s been on the move again this week, gaining more than a quarter of a cent to 98.57 cents U.S. on Thursday, after rising more than a cent the previous two days.

Analysts caution that that’s against the U.S. dollar — against all major currencies, the loonie is flying well under the radar.

Royal Bank currency strategist David Watt says the Canadian dollar has been the worst performing of the world’s major currencies since mid-June, with the exception of the greenback.

Watt says while the loonie is doing well against the U.S. dollar, the euro, and the currencies of Sweden, Britain, Switzerland, Japan, Australia and New Zealand are doing much better — a difference ranging between five and seven per cent.

The reason, he says, is that as the U.S. economy has shown signs of slowing, suggesting that the global economic recovery will come from elsewhere, the Canadian dollar has suffered from close association to its main trading partner.

As well, better news out of Europe following the sovereign debt crisis that surfaced during the spring has lifted the euro from the depths.

– The Canadian Press

(08/06/10)