Volatility hampered returns for Canadian pension funds in this year’s first quarter, according to stats from RBC Investor & Treasury Services.

Latest RBC data on Canadian defined benefit pension plans shows growth has been negative in three out of the last four quarters.

Returns fell 0.03% between January and March following a 3.1% return in the fourth quarter of last year and 5.4% for the whole of 2015.

“Global uncertainty created a volatile start to the year for markets around the world before stabilizing somewhat as the year progressed,” said David Heisz, chief executive officer, RBC Investor Services Trust, RBC Investor & Treasury Services.

“The TSX Composite Index posted a 4.5% gain in Q1 after one of the worst starts to a year, while commodities, particularly gold and oil, ended the quarter on a strong run and boosted the performance of Canadian companies in the energy and materials sectors.”

Despite posting strong results, equity markets in Europe, Japan and China all experienced weakness in their respective currencies and overall global equity returns of -6.2% weighed on Canadian defined benefit plans.

“Investors were buffeted by global market volatility in early 2016,” said Craig Wright, senior vice-president and chief economist, RBC.

“Concerns with respect to the Chinese economy, commodity prices and central bank actions nudged markets in a negative direction before anxiety eased and markets rebounded in mid-February. 

"Meanwhile, economic data during this period pointed to the global economy experiencing modest growth.”