Israeli soldiers drive a tank near the Israeli-Gaza border, in southern Israell, Wednesday, June 5, 2024. THE CANADIAN PRESS/AP-Tsafrir Abayov
TORONTO – Scotiabank’s 1832 Asset Management has further cut its holdings in Israeli arms manufacturer Elbit Systems Ltd. as the bank has faced calls to divest over the war in Gaza.
1832 Asset Management reported in its latest filings it had cut its stake by more than 40 per cent from the previous quarter to leave it holding about US$113 million in the company, making up 1.44 per cent of Elbit’s total shares.
The reduction follows on further trimmings from its peak holding in 2023 of just over five per cent of Elbit’s shares, worth some US$467 million a year ago, which had made 1832 Asset Management Elbit’s largest foreign shareholder.
The investments have prompted numerous protests against Scotiabank calling for it to divest the holdings over how the weapons are being used in the war in Gaza, which the Palestinian Health Ministry says has killed more than 39,000 Palestinians.
Scotiabank has maintained that it does not directly hold the shares, and it cannot interfere in the independent investment decisions of its portfolio managers, including at its subsidiary 1832 Asset Management.
It says individual securities are held based on their investment merit, and are not influenced by protest activity.
This report by The Canadian Press was first published Aug. 14, 2024.
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