Canadian pension plans generated modestly stronger returns in 2016 thanks to the performance of domestic stock markets, according to a new report from Royal Bank of Canada’s (RBC) investor and treasury services division.

Defined-benefit (DB) pension plans recorded an overall annual return of 6.8% in 2016, up from 5.4% in 2015, the RBC report notes. Canadian equities helped drive the stronger return performance as they produced a 21.9% annual return on the year.

“Canada’s three largest sectors — energy, materials and financial services — posted strong results during 2016, helping lift returns,” the RBC report states.

This strength in domestic equities helped offset weaker returns in global equities, which produced just a 4.4% return in 2016, down from 18.9% in 2015, and Canadian fixed-income, which squeaked out a 2.4% annual return last year.

Looking ahead, continued uncertainty, including the potential for interest rate hikes, may impact returns in 2017, the RBC report says: “Financial markets will need to monitor and adjust to the new U.S. administration as economic policies are unveiled throughout the year, in addition to the developments stemming from the post U.K. referendum and uncertainty surrounding the Chinese economy.”