The ASX share market sell-off because of tariffs has opened up a number of interesting potential buys. I've already written about some of the ideas I've seen over the past few days.
The two possibilities I'm going to discuss in this article have seen a heavier sell-off than many others. But they could be particularly appealing ideas because of the longer-term outlook and how they could bounce back if/when markets regain confidence about the global share market.
I've long been a fan of the two businesses below, and this sell-off could be the right time to buy them.
Image source: Getty Images
Pinnacle Investment Management Group Ltd (ASX: PNI)
Pinnacle is an investment business – it takes stakes in fund managers (affiliates) and helps them grow by offering various services, including seeding funds under management (FUM) and working capital, distribution and client services, middle office and fund administration, compliance, finance, legal, technology and other fund manager infrastructure.
As the chart above shows, the Pinnacle share price has fallen 31% since 5 February 2025.
Share market declines hurt fund managers' FUM, so they can typically fall further than the overall market.
I believe this decline is an excellent time to invest because of the lower valuation and the potential to benefit when there's a potential rebound in the future.
In the company's FY25 first-half result, the business reported total affiliate FUM reached $155.4 billion, with net inflows of $6.7 billion for the period. Domestic retail net inflows were $3.7 billion, domestic institutional net inflows were $2.2 billion, and offshore net inflows were $0.8 billion. The inflows are signs of healthy underlying growth for the business, in my view, and show the business' FUM could keep rising even if there's market volatility.
I think this ASX share looks great for a long-term investment at the current value.
Australian Ethical Investment Ltd (ASX: AEF)
Australian Ethical is also a fund manager – it's focused on providing investment products that align with investors' ethics.
The above chart shows the ASX share has fallen 14% since 3 March 2025. That's not as much as Pinnacle, which is why I've mentioned it second in this article.
The Australian Ethical share price rallied after the release of its FY25 half-year result, but this has largely been reversed amid the global volatility
Australian Ethical reported total revenue growth of 21%, underlying operating expense growth of 14%, underlying net profit after tax (NPAT) growth of 35% and statutory net profit growth of 50%.
Pleasingly, the underlying cost-to-income ratio improved to 72%, down from 74% in FY24. This shows that the business is becoming increasingly profitable, which bodes well for future earnings to grow faster than revenue.
The business also reported no debt and a 67% jump in the interim dividend.
One of the main benefits of this business is that it provides superannuation, which means members typically receive regular superannuation contributions. This provides net inflows and a boost to FUM for Australian Ethical.
