Scotiabank’s 1832 Asset Management Sells Last Shares In Israeli Military Supplier

Regulatory filings show that Scotiabank’s 1832 Asset Management has sold its remaining holdings in Israeli defence manufacturer Elbit Systems Ltd.

The bank faced criticism for the investment, including high-profile protests at the Giller Prize it used to sponsor, because of Elbit’s role in supplying military equipment for the war in Gaza.

Scotiabank previously said that it did not directly hold the shares, and that it cannot interfere in the independent investment decisions of its portfolio managers, including at its subsidiary 1832 Asset Management.

The asset manager’s latest filing with the U.S. Securities and Exchange Commission does not show Elbit among its holdings, while as of November, it reported owning about 165,000 shares worth some US$84 million. Last August, it had about 700,000 shares worth US$315 million.

1832 Asset Management held more than 2.2 million shares in Elbit as of the end of 2021, when the company’s shares sat below the US$175 mark on the Nasdaq.

The arms manufacturer has since seen its share price climb steeply, topping US$400 last year and spiking to over US$700 in January.