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Dynamic Funds has announced the list of mandates for which it proposes to launch a new series for investors residing in provinces not subject to a harmonized sales tax. In all, the company is offering 44 funds in the new series.

A complete list of the applicable funds is available by clicking here.

The non-HST series for each applicable fund is expected to be available for new purchases and switches by investors in the fall of 2010. The redesignation of eligible assets of the applicable funds from the current series to the new non-HST series is expected to take place in the first quarter of 2011.

Implementation of the new series is subject to regulatory approval and, where applicable, shareholder approval.

– Steven Lamb

• • •

Fed to start buying U.S. debt again

Worried about the U.S. economy, the Federal Reserve is taking a small step to bolster the sputtering recovery.

At the end of its meeting Tuesday, the Fed said it will use money from its investments in mortgage securities to buy government debt on a small scale.

That could help nudge down long term rates on mortgages and corporate debt but wouldn’t have a dramatic impact.

The Fed says economic growth will be “more modest” than it had thought just seven weeks ago.

Economists doubt the Fed can turn around the economy on its own.

Some believe additional help from Congress is needed. Others are skeptical that easier credit or even more government aid will persuade Americans to shop more and hire more.

– The Associated Press

• • •

RBC adds to U.K. emerging markets team

RBC Global Asset Management (RBC GAM) has announced that Guido Giammattei has joined its London-based emerging markets equity team.

Giammattei has been appointed a portfolio manager on the RBC emerging markets fund and will focus on the Latin American region.

“Guido’s strong track record and extensive background in the Latin American market make him an invaluable addition to our team and the RBC emerging markets fund,” says Phil Langham, head of the RBC GAM emerging market equity team. “Since the fund holds a distinct portfolio of high-quality companies with broad geographic exposure, Canadian investors will benefit greatly from Guido’s specialized expertise in that region.”

Giammattei was previously an equity analyst and then a portfolio manager at Rexiter Capital Management, where he focused on Latin American investments. He has also held positions at State Street and HSBC.

– Jody White

• • •

U.S. productivity dropped in spring

American worker productivity dropped this spring for the first time in more than a year, a sign that companies may need to step up hiring if they hope to grow.

Productivity declined at an annual rate of 0.9% in the April-to-June quarter after posting large gains throughout 2009, the Labour Department said Tuesday. Unit labour costs edged up 0.2% in the second quarter, the first increase since the spring of 2009.

Employee output rose by large amounts during the recession. Companies slashed their payrolls and pushed unemployment up to the highest levels in more than two decades. Economists said a slowing in productivity would be a welcome development if it translates into more hiring.

“Economists often tout the long-run benefits of strong productivity growth, but given the precarious state of the economy, a little more employment, even at the expense of productivity, would likely be helpful in the near term,” said Sal Guatieri, senior economist at BMO Capital Markets.

Productivity for all of 2009 rose 3.5%, the best showing in six years and a reflection of companies’ ability to produce more with fewer workers.

Output of U.S. workers is the key ingredient to boosting living standards. It allows companies to pay workers more because of the increased production without being forced to raise the cost of their goods, which sparks inflation.

– The Canadian Press

(08/10/10)