Scotiabank's fund unit halved stake in Israeli weapons maker Elbit, filing shows

By Nivedita Balu

TORONTO (Reuters) - An asset manager owned by Canadian lender Bank of Nova Scotia nearly halved its stake in Israel-based weapons manufacturer Elbit Systems in the quarter ended March from a year ago, a regulatory filing showed on Tuesday.

The investment by Scotiabank's 1832 Asset Management had triggered protests demanding the fund manager cut its exposure to the defence contractor amid the war in Gaza.

1832 Asset Management held 1.13 million shares valued at $237.6 million at the end of March 31, U.S. security exchange filings showed.

That stake represented 2.5% of Elbit's outstanding shares, according to Reuters calculation.

At the end of 2023, 1832 Asset Management owned 4.2% of Elbit's outstanding shares valued at $402.1 million, making it among the top 5 shareholders. 1832 held more than 2.2 million shares in Elbit at the end of March, 2023.

Elbit shares have fallen about 4% so far this year. The company said it March it expects this year's revenue to be boosted by higher ammunition sales to Israel for its war against Hamas militants.

Scotiabank, the parent of 1832 Asset Management, did not immediately respond to a request for comment.

1832 Asset Management's exposure to the weapons maker had sparked protests at Scotiabanks's branches in Toronto. Protesters also disrupted Canada's prestigious Giller Prize Gala last November, an award sponsored by Scotiabank.

Some students in North America and in Europe are calling for an immediate permanent ceasefire and for schools to cut financial ties with companies they say are profiting from the oppression of Palestinians.

Palestinian health authorities say Israel's ground and air campaign in Gaza has killed more than 35,000 people, mostly civilians, and driven most of the enclave's 2.3 million people from their homes since October last year.

(Reporting by Nivedita Balu in Toronto; Editing by Lincoln Feast.)