TORONTO (Reuters)—A continued rebound in global stocks and stable credit markets helped Canadian pension funds grow 7.2% in the third quarter, a survey released on Wednesday showed.

It was the second straight quarter of strong growth for pension plans, boosting year-to-date results by 14.3%, RBC Dexia Investor Services said in the survey. The firm provides custodial and other services to pension funds.

The growth of pension funds within RBC Dexia's $310 billion Canadian ($295 billion) universe was led by gains in domestic stocks, which overpowered losses from the stronger Canadian dollar.

"Two solid back-to-back quarters doesn't necessarily make a recovery, but it's good to see some positive momentum," said Don McDougall, director of advisory services for RBC Dexia.

The survey measures the performance of RBC Dexia funds, not the entire Canadian pension market, but it mimics the broader market because the funds managed by RBC Dexia are so huge.

The firm is jointly owned by Royal Bank of Canada and Belgian-French financial services group Dexia.

Pension plan managers and federal regulators have worried in recent years about the health of private pension plans. Plan shortfalls grew because of historically low interest rates and an aging population.

Domestic stocks remained the top performing asset class for Canadian pensions, growing 10.6% in the quarter and 29.6% year to date, RBC Dexia said.

The stronger Canadian dollar overshadowed foreign equity gains. The MSCI World Index was up 20.3% in local currency terms during the quarter, but pension plans only saw gains of 10.5% once converted into the Canadian currency, known colloquially as the loonie.

"The stronger loonie has held us back in 2009, but we weren't complaining last year when its weakness went a long way to soften our losses," Mr. McDougall said.

Canadian bonds also contributed to pension fund gains, advancing 3.4% in the quarter and 8.2% year-to-date.

"Pension plans easily recouped all of last year's underperformance, outpacing the DEX Universe index by a huge 2.6% over nine months, as corporate spreads narrowed even further during the quarter," said Mr. McDougall.