Canadian defined benefit pension plans remained in positive territory in the third quarter, according to RBC Investor & Treasury Services.

Statistics from the firm show plans returned 4.2% between July and September 2016, up from 2.9% in the previous quarter.

RBC’s All Plan Universe, which tracks the performance and asset allocation of over $650bn in assets under management, shows returns are up 7.3% year-to-date.

Global equities and Canadian equities performed well. Both returned 6.7% which was a marked improved on last year's losses due to weakness in the materials and energy sectors.

Long duration bonds have been the best performing fixed income segment, with the benchmark FTSE TMX Canada Long Overall index returning 2.4% in Q3 and 12.6% year-to-date.

“Canadian pension plans continue to post improved quarter-over-quarter returns this year,” said James Rausch head of client coverage, Canada and global head of transaction banking - banks, brokers & exchanges, RBC Investor & Treasury Services.

“The resources, materials and energy sectors continued to fuel the gains in Canadian equities, while global markets adapted to the post UK referendum landscape and emerging economies realized gains.

“Global volatility remains a reality as several markets, including China, experience anemic growth despite low or negative interest rate policies. Managing risk will remain a priority for the remainder of 2016.”