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

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 defense 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, US security exchange filings showed.

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

At the end of 2023, 1832 Asset Management owned 4.2 percent 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% percent so far this year. The company said in 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.

Reuters