Scotiabank’s subsidiary 1832 Asset Management has fully exited its investment in Israeli defense contractor Elbit Systems Ltd. (ESLT). Recent U.S. Securities and Exchange Commission filings confirm the asset manager holds no remaining shares in the company.
This marks a complete divestment from a position that stood at about 165,000 shares, valued at roughly US$84 million, as reported in November. Holdings had previously included around 700,000 shares worth US$315 million last August.
Historical Investment Overview
1832 Asset Management once maintained a substantial stake in Elbit, owning more than 2.2 million shares by the end of 2021 when the stock traded below US$175 on Nasdaq. The firm progressively reduced its exposure over subsequent years amid market changes and other factors.
Context of Activist Criticism
The move comes after ongoing backlash directed at Scotiabank over the investment. Critics highlighted Elbit’s supply of military equipment to Israel during the Gaza conflict, leading to protests at bank branches in 2023 and disruptions at sponsored events such as the Giller Prize gala. Scotiabank ended its sponsorship of the literary award in February 2025.
Bank’s Position on Investments
Scotiabank has consistently stated that it does not directly own the shares in question. The bank emphasizes it cannot intervene in the independent investment choices made by portfolio managers at 1832 Asset Management.
