A recovery in global equities and continued strength in domestic stocks lifted Canadian pension plan returns out of negative territory in the second quarter.

Returns averaged 2.9% between April and June compared to an average loss of 0.03% in the first quarter of 2016, according to the $650bn RBC Investor & Treasury Services All Plan Universe.

"Canadian Pension plan returns posted notably stronger results this past quarter, thanks largely to both global and Canadian equity holdings," said James Rausch, head, client coverage, Canada and head, banks, brokers and exchanges, RBC Investor & Treasury Services.

"The Canadian Material and Energy sectors outperformed in Q2 2016, largely offsetting a quarter of sustained market volatility and economic uncertainty globally, particularly in the period surrounding the UK referendum which saw the US dollar drop considerably and bond yields hit record lows.

”Global investors will be searching for clarity regarding the UK's exit process from the European Union which may contribute to sustained volatility over the foreseeable future."