Global market volatility took its toll on the returns of Canadian defined-benefit (DB) pension plans in the first quarter (Q1) of 2016, as they were virtually flat, dropping by 0.03%, according to a new report from Toronto-based Royal Bank of Canada’s (RBC) investor and treasury services division.

This slight drop comes on the heels of a return of 3.1% for DB pension plans in Q4 2015 and 5.4% for the full year of 2015, states the quarterly “all plan universe” report, which studies the performance of Canadian DB pension plans.

Global equities ended Q1 with a drop of 6.2% in Q1, reversing gains of 8.9% in Q4 2015. The report notes that the global equities portion of DB pension plans still slightly outperformed the MSCI world index benchmark, which fell by 7.2%.

“Investors were buffeted by global market volatility in early 2016,” says Craig Wright, senior vice president and chief economist with RBC in a statement released on Thursday. “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.”

The jump in Canadian equities, which posted a return of 4.6% in Q1, helped offset the potential of a greater loss for DB pension plans. This result is up from a drop of 0.5% that took place in Q4 2015.

“The S&P/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,” says David Heisz, CEO and RBC Investor Services Trust and RBC Investor and Treasury Services, in a statement.

Canadian bonds also posted positive results with returns landing at 1.8% in Q1 vs 1.1% in Q4 2015 — and slightly better than returns produced by FTSE TMX universe Canadian bond index. This occurred as concerns eased about the possible tightening of Canadian monetary policy in the near future.

In addition, the loonie has recently experienced a rebound and appreciated 7% against the U.S. dollar by the end of March.

“Interest rate expectations, appreciating oil prices, improved financial conditions and stronger than expected Canadian economic growth helped fuel the rally,” according to the report.

RBC Investor and Treasury Services’ report tracks the performance and asset allocation of more than $650 billion in assets under management across Canadian DB pension plans.