Canadian defined-benefit (DB) pension plans remained in positive territory in the third quarter (Q3) as Canadian and global equities produced higher returns, according to a report from Toronto-based Royal Bank of Canada’s (RBC) investor and treasury services division.

Canadian equities returned 6.7% in Q3, up from 4% in the second quarter (Q2). Year to date, Canadian equities have produced returns of 15.9%. This is a much rosier picture than Q3 2015, when Canadian equities posted a loss of 7.8%, which was due primarily to weakness in the materials and energy sectors, according to the report released on Thursday.

Global equities also returned 6.7% in Q3, a significant jump from returns of 1.6% in Q2 and the posted loss of 2.2% in Q3 2015. They’re up by 1.8% year to date.

“The resources, materials and energy sectors continued to fuel the gains in Canadian equities, while global markets adapted to the post U.K. referendum landscape and emerging economies realized gains,” says James Rausch, head of client coverage for Canada and global head of transaction banking for banks, brokers and exchanges with RBC Investor and Treasury Services, in a statement.

“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,” he adds.

Domestic bonds continue to be a source of steady returns for Canadian DB plans, returning 1.6% in Q3 and 6.2% year to date. The ongoing low interest environment has resulted in long-duration bonds proving to be 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, the report notes.

DB pension fund investment managers have also consistently beat their benchmarks in Q3. Canadian equity returns of 6.7% outperformed the S&P/TSX composite index’s returns of 5.5% while global equity returns of 6.7% outpaced the MSCI world index’s returns of 6.1% and Canadian fixed-income returns of 1.6% outperformed the FTSE TMX universe Canadian bond index’s returns of 1.2%.

RBC Investor and Treasury Services’s all-plan universe currently tracks the performance and asset allocation of more than $650 billion in assets under management across Canadian DB pension plans.