Canadian defined benefit pension plans posted strong returns for the first quarter of 2019 as domestic and global equities rallied, RBC Investor & Treasury Services announced Tuesday.

According to the RBC Investor & Treasury Services All Plan Universe, quarterly returns were 7.2% (up from Q4 2018 returns of -3.5%).

“Canadian defined benefit pension plans started 2019 in positive territory as the TSX reached an all-time high, reversing many of the 2018 losses, but asset managers will need to remain vigilant as we head toward the mid-year mark,” David Linds, managing director, head of Canadian Asset Servicing, RBC Investor & Treasury Services, said in a statement.

“Many of the underlying concerns, including trade wars, slowing global economic growth as well as ongoing geopolitical unrest are still very relevant and will force asset managers to re-examine their portfolios and risk exposure.”

In the first quarter, Canadian equities bounced back, led by a rebound in oil, and posted a return of 12.4%, RBC said (compared to a -10.6% return in Q4 2018). All 11 sectors of the TSX posted gains in the quarter.

Global equities returned 10% in Q1 2019, and Canadian fixed income posted a 5.6% return, RBC said.