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A decline in North American fixed income markets and seasonal cash outflows cause net assets of the CPP Fund to dip below $300 billion.

The fund, which had assets of $300.5 billion at the close of the second quarter, ended the third quarter on Dec. 31 with assets of $298.1 billion.

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The investment portfolio delivered a net investment return of $1.7 billion, or 0.56 per cent after all costs, while Canada Pension Plan cash outflows in the quarter were $4.1 billion.

“The Fund’s modest return this quarter reflects the largest quarterly decline in North American fixed income markets since CPPIB’s inception coupled with the Canadian dollar strengthening against most major currencies except for the U.S. dollar,” said Mark Machin, chief executive of the Canada Pension Plan Investment Board.

He said those factors partially offset gains in the public equity portfolio.

In an interview, Machin said the CPP Investment Board is watching the bond market to try to gauge what the ultimate impact will be of the election of Donald Trump as president of the United States.