It's not often that share prices go through a decline of 10% or more. Widespread selling is painful as a shareholder but there are lower valuations (almost) across the board for brave prospective investors.

Sell-offs give us the chance to search across the S&P/ASX 300 Index (ASX: XKO) (or smaller) to find beaten-up opportunities which could then bounce back when market confidence returns.

Assuming the investment still has a positive long-term outlook, a large decline is a great opportunity to see big returns if/when there's a recovery.

For example, if a share price drops by 50%, then returning to the previous position would be a return of 100%! Of course, it's not as easy as that to find the right opportunities. I'd only go for investments I believe can deliver higher earnings in three years from now.

Where I'm seeing exciting ASX share opportunities

In my view, there are multiple areas where the market is being too bearish on certain ASX shares.

The ASX tech share (and tech-related) space is awash with names that have been hit by AI worries, then hit again by the prospect of inflation and higher interest rates. I'm thinking of names like Siteminder Ltd (ASX: SDR), TechnologyOne Ltd (ASX: TNE), Xero Ltd (ASX: XRO), REA Group Ltd (ASX: REA) and Pro Medicus Ltd (ASX: PME).

Businesses in the funds management space are certainly feeling the pain of lower share markets, as well as a hit to market confidence. I think the businesses of Pinnacle Investment Management Group Ltd (ASX: PNI), L1 Group Ltd (ASX: L1G) and Australian Ethical Investment Ltd (ASX: AEF) are very compelling options right now.

The ASX retail share space is appealing as well because market confidence in them can be cyclical. I think growing retail businesses could be particularly good long-term investments during this period, such as Temple & Webster Group Ltd (ASX: TPW), Lovisa Holdings Ltd (ASX: LOV), Universal Store Holdings Ltd (ASX: UNI) and Nick Scali Ltd (ASX: NCK).

Finally, I want to highlight some other ASX growth shares that have been caught up in the sell-off but could be generate significantly higher profit in three to five years. I'm attracted to Breville Group Ltd (ASX: BRG), Sigma Healthcare Ltd (ASX: SIG), Tuas Ltd (ASX: TUA) and Guzman Y Gomez Ltd (ASX: GYG).

The post Why buying ASX shares in March could supercharge your wealth appeared first on The Motley Fool Australia.

I think one of the easiest ways to invest during difficult periods is to invest in growing businesses where the price/earnings (P/E) ratio has reduced but earnings are likely to climb in the medium-term.

So, let's dive into two of the most attractive S&P/ASX 300 Index (ASX: XKO) shares.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne describes itself as Australia's largest enterprise software company, with a global presence. It has more than 1,300 leading subscribers across corporations, government agencies, local councils and universities.

Since October 2025, the TechnologyOne share price has dropped around 35%, despite the company continuing to very pleasing financial growth as it expands its offering with additional modules, AI inclusions and so on.

In FY25, it reported revenue growth of 18% to $610 million and net profit after tax (NPAT) growth of 17% to $137.6 million. It also reported its research and development (R&D) investment was $153.7 million, 25% of total revenue.

The R&D spending is a key driver for the ASX share to unlock additional revenue growth from its subscribers, helping it deliver its targeted revenue growth of 15% from its existing client base each year.

It's winning new clients, with UK growth particularly exciting because of the large market and similarities to Australia.

In FY26, it's expecting to grow its profit before tax by between 18% to 20% in FY26. That's a great tailwind for sending the TechnologyOne share price higher.

According to the forecast on Commsec, the TechnologyOne share price is valued at 52x FY26's estimated earnings.

Australian Ethical Investment Ltd (ASX: AEF)

Australian Ethical describes itself as one of Australia's leading ethical investment managers. The company said it aims to provide investors with investment management products that align with their values and provide long-term returns.

With funds under management (FUM) of $14 billion, the business is exposed to share market movements. But, the 45% decline of the Australian Ethical share price over the last six months seems harsh considering the good numbers it's reporting and long-term growth tailwinds.

Historically, asset prices have climbed over the long-term, which is a tailwind for the company's earnings. Plus, it offers superannuation to Australians, so the company is experiencing regular net inflows from members.

In the FY26 half-year result, the business reported underlying revenue growth of 13% to $65.8 million, while underlying profit after tax increased 25% to $14.4 million.

I'm expecting the ASX share can continue to deliver rising profit margins because of how scalable funds management businesses are. As an example, it doesn't take 10% more staff or a 10% bigger office to manage 10% more FUM.

It's now trading at just 24x FY25's earnings, which looks like great value to me considering how fast its profit is rising.

The post These valuations are too good to ignore! I'd buy these ASX shares today appeared first on The Motley Fool Australia.

Australian Ethical provides investors with investment management products that "align with their values and provide long-term, risk-adjusted returns. It offers both managed funds and superannuation. I'm excited by the superannuation division because of the steady inflows that provides.

The business recently announced its FY26 half-year result, which included several strong numbers, giving me confidence that the business could be a strong long-term investment.

Great result

The report was for the six months to 31 December 2025.

The ASX dividend stock revealed that underlying revenue increased 13% to $65.8 million and operating expenses increased by 9% to $45.1 million.

The strength of its operating leverage meant that its profit grew at a faster pace. Underlying profit after tax climbed 25% to $14.4 million and statutory net soared 42% to $13.3 million.

Underlying earnings per share (EPS) grew by 24% to 12.54 cents per share, allowing the interim dividend to be hiked by 60% to 8 cents per share. That means the business is holding onto a significant amount of its generated profit to reinvest for future opportunities.

The business reported that its funds under management (FUM) reached $14.08 billion and it saw continued positive organic net flows of $0.26 billion, with superannuation net flows increasing 19% year-on-year. It also noted its funds delivered a positive investment performance of $0.16 billion.

Why I think this is a good time to invest in the ASX dividend stock

Australian Ethical noted that it has transitioned to a single administration platform, laying the groundwork for enhanced member services and ongoing cost savings.

The company's underlying cost-to-income (CTI) ratio improved from 71.4% in FY25 to 68.8% in the first half of FY26, showing that its margins are capable of increasing and could bode well for ongoing operating leverage as the years go by.

Australian Ethical is expecting to grow profit, with positive net flows expected to continue in the second half of FY26.

With the Australian Ethical share price down significantly in recent times, this looks like a compelling time to invest because the grossed-up dividend yield has been boosted to around 5%, including franking credits, at the time of writing.

Further dividend growth looks possible, meaning the business can provide even more passive income to investors.

The post 1 ASX dividend stock down 41% I'd buy right now appeared first on The Motley Fool Australia.

I'm not about to suggest that Aussies go out there and try to find a 15% dividend yield.

But, if we invest right, investors could end up generating a 15% yield on their initial investment. It will take some patience, though.

It's important to remember that some large dividend yields may not stand the test of time. A dividend cut may be on the cards for businesses that seem to have huge yields because investors have pushed the share price lower, betting that earnings and the payout are going to drop in the near future.

 I think there are two ways where we can unlock a large dividend yield of 15% (or more). Let's look at how.

Big starting dividend yield

I wouldn't expect any business to offer a sustainable starting dividend yield of 15%. But, there are some with yields of between 9% to 11% where I expect the business can maintain and slowly grow its payout in the coming years.

While it might take a while to reach 15%, I think this sort of business could deliver a big dividend yield at the start and become even larger over time.

There are some names that come to mind for large payouts such as WAM Microcap Ltd (ASX: WMI), Hearts and Minds Investments Ltd (ASX: HM1) and Shaver Shop Group Ltd (ASX: SSG).

With those sorts of dividend yields, if someone invested $10,000 then they could unlock $1,000 of annual income straight away.

Dividend growth

While huge yields may appeal to some investors, it could be a better call to look at businesses that are growing their payout at a faster pace. That could lead to stronger total shareholder returns (TSR) and eventually the yield could surpass what a higher-yielding business offers.

For example, if a 10% yielding business grows its payout by 2% per year, it becomes 15% yield in around 20 years. A business with a 5% dividend yield that's growing the payout at 10% per year becomes a 15% dividend yield on the initial investment after 12 years.

Of course, we can't know for sure what businesses are going to do with their payouts over the next decade or more.

What sort of businesses have a solid starting payout today and could deliver strong dividend growth over the longer-term?

I'd look at apparel retailer Universal Store Holdings Ltd (ASX: UNI), jewellery retailer Lovisa Holdings Ltd (ASX: LOV), investments business Pinnacle Investment Management Group Ltd (ASX: PNI) and ethical fund manager Australian Ethical Investment Ltd (ASX: AEF).

Either way, I think there are some very exciting investments out there for investors looking for a lot of passive income.

The post How to invest $10,000 to aim for a 15% dividend yield appeared first on The Motley Fool Australia.

Ideally, we don't want to trigger any capital gains tax (CGT) events if we don't need to, because that can mean handing over money to the ATO unnecessarily, disrupting the compounding potential of the portfolio.

I'm going to talk about two ASX shares that I've long-admired. I'm expecting rising profits and dividends from them over the long-term.

Australian Ethical Investment Ltd (ASX: AEF)

Australian Ethical describes itself as one of Australia's leading ethical investment managers. It aims to provide investors with investment management products that align with their values and provide long-term, risk-adjusted returns.

One of the main reasons why I think this business is such a compelling fund manager is because it provides customers with a superannuation option. This is compelling due to the consistent contributions that Aussies make to their superannuation, giving the company regular net inflows.

In the update to 31 December 2025, the company reported that it finished the period with funds under management (FUM) of $14.1 billion, with the business experiencing $0.11 billion of net inflows in its superannuation segment.

The company has been working on delivering efficiencies and scalability, which will hopefully help its margins in the coming years.

The ASX share has also pointed out that it continues to be recognised for its leadership in ethical investing, winning Money Magazine's 2026 best of the best awards for the best ESG superannuation product and best ESG pension product.

The forecast on CMC Invest suggests the business could pay an annual dividend per share in FY26, which would be a grossed-up dividend yield of 5.9%, including franking credits (at the time of writing).

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral operator in New Zealand and Australia. At the last count, it has 208 locations, including 41 cremation facilities and nine cemeteries.

One of the main tailwinds for the business is that death volumes are expected to increase in the coming years because of a growing and ageing population.

According to Propel, Australian death volumes are expected to increase by an average of 2.8% per year between 2025 to 2035 and 2.4% per year between 2036 to 2045. In New Zealand, death volumes are expected to increase by 2% per year between 2026 to 2035 and then 1.8% between 2036 to 2045.

The ASX share had a market share of 9% in 2024, compared to InvoCare's 21% market share. There is room for the company to expand its position in ANZ with both organic growth and acquisitions.

In the first quarter of FY26, the company delivered 3% growth of both revenue and operating profit (EBITDA) year-over-year. It benefited from a 2.7% rise of the average revenue per funeral and a 1% increase in funeral volumes.

According to the forecast on CMC Invest, it's expected to pay an annual dividend per share of 15.5 cents in FY27, which would be a grossed-up dividend yield of 4.5%, including franking credits (at the time of writing).

The post 2 ASX shares that I rate as buys for both growth and dividends appeared first on The Motley Fool Australia.

It's not unusual for smaller businesses to trade at a much lower valuation than they would if they were larger, because so few analysts and fund managers cover them, leading to undervaluation.

The valuations of the two businesses below make them appealing, in my view, as long-term buys.

Australian Ethical Investment Ltd (ASX: AEF)

Australian Ethical is a fund manager that aims to provide investors with exposure to investments that have a high level of 'ethics' by excluding certain sectors from its investment strategy.

A key reason why I believe the company has such a good outlook is that it has a superannuation offering, which is benefiting from the ongoing contributions from members.

The ASX All Ords share's superannuation segment, which is where the significant majority of funds under management (FUM) sits, saw net inflows of $0.11 billion in the three months to 31 December 2025. Its total FUM was $14.08 billion at the end of 2025.  

Australian Ethical notes that it "continues to be recognised for its leadership in ethical investing, winning Money Magazine's 2026 best of the best awards for best ESG superannuation product and best ESG pension product, reinforcing Australian Ethical's position at the forefront of sustainable investing and highlighting the organisation's ongoing commitment to positive impact and industry best practice."

The ASX All Ord stock's Managing Director, John McMurdo, recently said:

Despite challenging investment market conditions, it's been a pleasing first half of the year. On the superannuation side, we've seen changes to our digital marketing capability delivering an increase in new member joins in Q2, and with the completion of our transition to GROW, we are realising cost efficiencies and can focus on uplifting the member experience to support continued growth. The solid pipeline we've built in our newer channels, as well as upcoming product innovation also positions us well for ongoing success and continued growth into the second half of the year.

Australian Clinical Labs Ltd (ASX: ACL)

This business describes itself as Australia's leading private provider of pathology services. Its laboratories perform a range of tests each year for clients, including doctors, specialists, patients, hospitals, and corporate clients.

The Australian Clinical Labs share price is down by around 30% since February 2025, as the chart below shows, making it much better value. It was pleasing to see that management thought the ASX All Ords share was undervalued last year and launched a share buyback to buy up to 10% of its shares on issue.

Healthcare is a good, defensive sector to be invested in, yet the business is trading on such a low price-earnings (P/E) ratio. According to the forecast on CMC Markets, the business could generate earnings per share (EPS) of 18 cents in FY26.

That means it's trading at 14x FY26's estimated earnings. Analyst projections suggest the EPS could climb to 20.5 cents in FY27 and then 22 cents in FY28. That implies earnings could climb 22% between FY26 to FY28. The dividend is also expected to grow in the next few years to 15 cents per share in FY28.

The post 2 ASX All Ords shares I'd buy today appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher on Friday are listed below. Here's why they are ending the week in the red:

Australian Ethical Investment Ltd (ASX: AEF)

The Australian Ethical share price is down 1.5% to $4.91. Investors have been selling this fund manager's shares after it released a trading update. Australian Ethical revealed that its funds under management (FUM) dropped 1% in the December quarter to $14.08 billion. This was driven by positive retail and wholesale net flows, which were offset by negative investment performance and institutional outflows during the period. The company's managing director, John McMurdo, said: "Despite challenging investment market conditions, it's been a pleasing first half of the year."

Northern Minerals Ltd (ASX: NTU)

The Northern Minerals share price is down 5.5% to 3.5 cents. This is despite the heavy rare earths company releasing an update on preliminary laboratory metallurgical test work. Northern Minerals' managing director and CEO, Shane Hartwig, said: "Achieving the positive preliminary metallurgical results for the Wolverine – Dazzler blend test work marks an important milestone in the Company's development of Dazzler as a potential additional source of heavy rare earth feed material for Browns Range."

PLS Group Ltd (ASX: PLS)

The PLS share price is down over 4% to $4.62. This may have been driven by profit taking from some investors following very strong gains over the past 12 months. Earlier this week, Morgans put a hold rating and $4.55 price target on the lithium miner's shares. It said: "We upgrade our recommendation to Hold, reflecting improving lithium market fundamentals that will materially strengthen PLS' earnings and cash flow generation." The broker sees more value in Mineral Resources Ltd (ASX: MIN) and other ASX lithium shares at current levels. You can read about its Mineral Resources recommendation here.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is down 1.5% to $23.68. Investors have been selling Woodside and other ASX energy shares on Friday. This was in response to a sharp pullback in oil prices overnight due to easing US-Iran tensions. Both Brent and WTI crude oil prices were down over 4% during Thursday night's session.

The post Why Australian Ethical, Northern Minerals, PLS, and Woodside shares are falling today appeared first on The Motley Fool Australia.

I like dividends from ASX growth shares because it's a way for us to benefit from the actual profits of the business without having to sell shares.

The two businesses below are exciting options, in my opinion.

Australian Ethical Investment Ltd (ASX: AEF)

This business describes itself as one of Australia's leading ethical investment managers. Since 1986, the company has offered investors investment management products that align with their values and deliver long-term, risk-adjusted returns.

The company states that its investments are guided by the Australian Ethical Charter, which informs its ethical approach and underpins both its culture and vision.

One of the main appealing features of the ASX growth share is that it provides superannuation products to Australians. This is attractive because superannuation money is normally locked in for many years, giving the company a long earnings runway.

Additionally, due to the mandatory and tax-advantaged nature of superannuation contributions, Australian Ethical's funds under management (FUM) is regularly growing (aside from the volatility from the share market).

In the three months to September 2025, it finished with FUM of $14.28 billion, which benefited from $120 million of FUM inflows related to superannuation, as well as rises in share markets.

The company looks much better value after the Australian Ethical share price's decline of almost 40% since August, as the chart below shows.

The dividend yield looks much more appealing. In FY25, the business paid a full-year dividend of 14 cents per share (up 56% year over year). That translates into a grossed-up dividend yield of close to 4%, including franking credits.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a global retailer of affordable jewellery in numerous countries, including the US, Australia, the UK, South Africa, France, Germany, Spain, New Zealand, Canada, and plenty more.

The ASX growth share is rapidly growing thanks to both its store network expansion and positive like for like sales growth. In the first 20 weeks of FY26, it grew its total sales by 26.2% year over year, with global comparable store sales growth of 3.5%. In the financial year to date, the business added another 44 net new stores as it steadily climbs towards 1,100 global stores.

With the business now in more than 50 markets, it has numerous opportunities to expand its store network, and it can choose the destinations that will add the most profit growth.

Forecasts on CMC Markets suggest that by FY27, the business could grow its earnings per share (EPS) to $1.155, and the dividend could be hiked to $1.05 per share.

At the time of writing, that suggests the Lovisa share price is valued at 26x FY27's estimated earnings with a potential dividend yield of 3.8%, excluding any potential franking credits.

The post 2 ASX growth shares I'd buy today for growth and income appeared first on The Motley Fool Australia.

This business describes itself as one of Australia's leading ethical investment managers. It provides investment management products that align with its values and provide long-term, risk-adjusted returns. Its investments are guided by the Australian Ethical Charter, which influences its ethical approach and underpins its culture and vision.

As a business that provides investment funds, its success is heavily linked to its funds under management (FUM). So, recent share market volatility has also led to shareholders being uncertain in the short term. But this makes the ASX small-cap stock seem like a bargain for a few reasons.

Superannuation inflows

Australian Ethical is a provider of superannuation as well as normal investment products.

Aussies regularly contribute to their superannuation, whether that's through the mandatory employee contribution of 12% of their wage, or other non-mandatory contributions.

Australian Ethical sees positive superannuation contributions each quarter – in the three months to 30 September 2025, it saw $0.12 billion of superannuation net inflows. This helped the FUM grow from $13.94 billion at June 2025 to $14.28 billion at September 2025.

I'm expecting the company to continue seeing superannuation net inflows for the long term, which is positive for its future earnings potential.

Investment returns by the ASX small-cap stock

FUM growth is key for the business because of how it generates management fees for Australian Ethical.

Investment markets are not guaranteed to rise every quarter or every year. But, the fund manager can benefit from increasing FUM thanks to the rise of share markets as profits grow over time.

In the first quarter of FY26, the business reported a $0.28 billion boost to FUM over the three months, thanks to investment returns. If Australian Ethical's investment team performs adequately, the investment returns could deliver a majority of the FUM growth, so it's essential.

During FY25, its FUM benefited from $593 million of organic net flows and $1.05 billion from investment performance.

Better valuation with rising earnings

A number of the company's financial metrics are going in the right direction at a good pace.

In FY25, revenue grew by 19% to $119.4 million, and operating expenses only increased by 14% to $84.5 million, leading to 29% growth of underlying net profit after tax (NPAT) to $23.8 million.

Pleasingly, as this fund manager grows, it doesn't necessarily need to see expenses grow at the same pace. If FUM rises 15%, it doesn't need 15% more people or 15% more office space to manage that money. In FY25, the cost-to-income (CTI) ratio improved to 71.4%, compared to 73.7% in FY24.

If the company continues growing its FUM, then its margins could continue rising, helping accelerate its bottom line.

Following its 25% decline, I think the ASX small-cap stock looks much better value.

The post Why I think this ASX small-cap stock is a bargain at $6.11 appeared first on The Motley Fool Australia.

In August, shares in the healthcare titan tumbled by more than 21% after the company released its FY25 results.

In particular, an underperformance in its core plasma therapies business known as Berhing appeared to spook investors.

And another crunching blow followed this week.

On Tuesday, CSL shares dipped by 15% after it downgraded its earnings and revenue forecasts, whilst also halting plans to spin off its vaccines division.

Overall, shares in the company have now fallen by 36% since the start of the year to $179.56 per share at Thursday's close.

This compares with a solid 10% rise for the All Ordinaries Index (ASX: XAO) across the same period.

But where do CSL shares go from here?

Below we present the views of three portfolio managers from renowned Aussie investment firms, as reported in the Financial Review.

DNR Capital sees opportunity following sell down

Chief investment officer at DNR Capital, Jamie Nicol, believes that this week's sell-off was "disproportionate".

He also appeared to see the recent dip in CSL shares as a buying opportunity.

Nicol noted that the selldown was mainly related to CSL's flu business, which he considers to be a fairly small proportion of the company's overall value.

He commented:

 There's been a big overreaction for something that's a small part of the business.

Adding that:

These are the sorts of opportunities you look for in markets.

Reportedly, CSL is one of DNR Capital's largest holdings.

Australian Ethical points to favourable valuation

Head of Australian equities at Australian Ethical Investment Ltd (ASX: AEF), Nathan Parkin, believes the fundamentals of the business remain sound, whilst recognising the market's reaction.

He commented:

It's been the second downgrade in a short period, but it doesn't really concern us in terms of the strength of Behring, the main business, which remains solid.

Meanwhile, this week's selldown appears to have created a valuation that Australian Ethical finds more favourable.

Parkin added:

Australian Ethical didn't hold CSL for more than a decade because they thought it was too expensive. Now we're seeing the flip side, the valuation looks appealing, and we think it's a good opportunity.

TenCap throws caution to the wind

However, portfolio manager at TenCap, Jun Bei Liu, appeared to take a more cautionary tone, stating:

For a growth company to start having those issues, it's really difficult to say to investors, 'trust me', when you have faltered so many times.

She added:

I wouldn't be surprised if management has to change as well when you disappoint that many times.

The post Can CSL shares bounce back? 3 experts share their views after brutal 36% sell-off appeared first on The Motley Fool Australia.

Typically, earnings growth leads to stock price growth. 

One ASX growth stock that has done just that is Australian Ethical Investment Ltd (ASX: AEF). 

Growth stock overview

Australian Ethical Investment is a funds management company that specialises in environmentally and socially responsible investments. 

For those who aren't familiar, many companies and exchange-traded funds (ETFs) market themselves as aligning with specific ethical, environmental, or social standards. 

However, sometimes this can be more talk than action. This is sometimes called "greenwashing".

However, Australian Ethical Investment Ltd touts itself as going beyond standard environmental, social, and governance (ESG) criteria to actively seek to invest in companies that "do good".

According to AEF, it aims to make a difference by "directing investment towards businesses doing better in the areas that matter most."

A big 2025 

It seems the ethos of the company is resonating with investors, as this ASX growth stock has seen its share price surge 44.62% higher since the start of the year. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up about 9% in the same period. 

This was likely driven by positive FY25 results, which included: 

• Underlying Profit After Tax (UPAT) of $23.8 million, up 29% on FY24.
• Net Profit After Tax (NPAT) attributable to shareholders of $19.9 million, up 68% on FY24.
• The ethical investment manager reached a new funds under management (FUM) record of $13.94 billion (up 34% on 30 June 2024).

If you had invested $10,000 in January in this ASX growth stock at $5.20 each, you would have purchased approximately 1,923 shares. 

Since then, the share price has risen by 44.62%, closing yesterday at $7.52 per share. 

As a result, your initial investment would now be worth roughly $14,458, representing a gain of about $4,458.

This is before taking into account any dividends or reinvestment plans.

The post A $10,000 stake in this ASX growth stock bought in January is now worth… appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are pushing higher:

Auckland International Airport Ltd (ASX: AIA)

The Auckland International Airport share price is up 4.5% to $7.09. Investors have been buying the airport operator's shares after it released an update. According to the release, the Ministry of Business Innovation and Employment (MBIE) has advised that it is not considering legislative change in respect to "the effectiveness of the economic regulation of airport services under Part 4 of the Commerce Act 1986."

Australian Ethical Investment Ltd (ASX: AEF)

The Australian Ethical share price is up 3% to $6.42. This follows the release of a fourth quarter and full year update from the fund manager. Australian Ethical revealed that it achieved a 34% increase in funds under management (FUM) to a record high of $13.94 billion in FY 2025. Commenting on its performance, the company's CEO, John McMurdo, said: "Our strong fourth quarter result, and our full year FUM growth of 34% reflects the ongoing disciplined execution of our strategy as well as the resilience of our ethical investment approach in the face of challenging economic and geo-political cycles."

Breville Group Ltd (ASX: BRG)

The Breville Group share price is up 3% to $30.65. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has upgraded this appliance manufacturer's shares to a buy rating with an improved price target of $35.50. UBS made the move after looking at the global coffee machine market. It feels that the stage is set for Breville to grow its sales materially over the next decade. Especially given its significant opportunity in new markets.

Clarity Pharmaceuticals Ltd (ASX: CU6)

The Clarity Pharmaceuticals share price is up 4% to $3.55. This morning, this radiopharmaceutical company announced that the Co-PSMA (NCT06907641) Investigator-Initiated Trial (IIT) led by Prof Louise Emmett at St Vincent's Hospital Sydney has now completed its study enrolment and all participants have been imaged. Clarity's executive chair, Dr Alan Taylor, said: "We are excited about this important milestone in the Co-PSMA trial and the development program of 64Cu-SAR-bisPSMA. With mounting data of the benefits that 64Cu-SAR-bisPSMA could offer compared to SOC diagnostic imaging, demonstrated in the PROPELLER and COBRA trials, we eagerly anticipate the results from this head-to-head trial against 68Ga-PSMA-11."

The post Why Auckland Airport, Australian Ethical, Breville, and Clarity shares are charging higher appeared first on The Motley Fool Australia.

The article highlighted how the Fortescue share price had plunged around 40% over the past year and could now represent a good buying opportunity.

But the investor had concerns beyond the company's ability to deliver returns.

She questioned: "How can I invest in a mining company when I don't approve of their impact on the environment?"

The answer could be simple: 'You can't, so don't invest in Fortescue shares'.

However, the question deserves a better answer than that and opens the door to exploring ethical investment options on the ASX.

Can mining shares offer ethical investments?

I've been to numerous mine sites around the country and have often been appalled by their impact on the environment.

And every investor should approach investing with diligence. Research is critical, and you should invest in companies that align with your values.

But if you do your research and dig a little deeper, you may be surprised by what you find.

When I was conducting due diligence research for institutional investors, I noticed over the years that those investors were increasingly interested in ethical, social, and governance (ESG) issues, which, for some, formed part of their evaluation criteria.

But it's hard to argue that investing should be more about the financials, as ESG issues can have a material effect on the bottom line. Think costly cleanups and legal implications resulting from environmental disasters, to list one extreme example.   

Ethical investment options on the ASX

Funds, such as the Australian Ethical Investment Ltd (ASX: AEF), that claim to place ethical concerns at the forefront of their strategy, have been around for decades.

And Australian Ethical Investment has delivered more than warm fuzzies for investors, with the fund's share price rising more than 20% over the past year.

Australian Ethical Investment holds positions in numerous ASX companies, including National Australia Bank (ASX: NAB), Westpac Banking Corporation (ASX: WBC), Bank of Queensland Ltd (ASX: BOQ), and Macquarie Group Ltd (ASX: MQG).

Clearly, Australian Ethical Investment has targeted banking as a sector on the ASX that can deliver returns for ethically minded investors.

Australian Ethical Investment also holds positions in numerous ASX healthcare companies, including CSL Limited (ASX: CSL), ResMed Inc (ASX: RMD), and Cochlear Ltd (ASX: COH).

Perhaps more controversially, Australian Ethical Investment holds stock in miner Pilbara Minerals Ltd (ASX: PLS).

On one hand, Pilbara Minerals' mining operations can be viewed as having a direct and devasting impact on the natural environment as it harvests the raw materials to produce lithium.

On the other hand, the company can offer an ethical investment opportunity as it claims to operate a sustainable business and plays "a leading role in the world's rapidly growing battery materials supply chain".

Is investing in Fortescue shares ethical?

Fortescue, one of Australia's biggest mining companies, is often described as a pure iron ore play.

To some extent, that is true, as Fortescue's mining operations are centred on mining and shipping iron ore.

But there is certainly more to it than that.

Fortescue describes itself as a 'global green technology, energy and metals company' which claims it's on a path to eliminating fossil fuels from its operations with a target to achieve zero emissions without carbon offsets by 2030.     

Income generated by the mining company also bankrolls various philanthropic endeavours through the Minderoo Foundation, including Walk Free, an international human rights group focused on eradicating modern slavery.

Clearly, mining companies can have positive impacts beyond delivering profits to shareholders.

It's not for me to say whether or not a mining company can represent an ethical investment.

In the end, you will need to do your own research, reach your own conclusions, and invest in companies that align with your goals and values.

The more research you do, the better placed you will be to make informed decisions.

The post Impact investing with Fortescue shares appeared first on The Motley Fool Australia.

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.

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.

The post 2 great ASX shares to buy after the tariff sell-off appeared first on The Motley Fool Australia.

In fact, we've seen a few go the other way, and mint fresh new 52-week highs. Let's check out the lucky ASX All Ords shares that are making hay while the rain pours.

Three ASX All Ords shares hitting new 52-week highs this Friday

Medibank Private Ltd (ASX: MPL)

First up, we have ASX All Ords private health insurance share Medibank Private. Medibank stock closed at $4.42 yesterday evening, and opened at that same price this morning. But soon after, the company rose up to $4.47, its new 52-week high.

There's been no fresh news out of Medibank today. Saying that, the company did deliver its latest half-year earnings report just yesterday, which looks like it is feeding into the momentum we are seeing with this ASX All Ords share this Friday.

As we covered at the time, these earnings were rather pleasant to read. Medibank reported a 6.1% uptick in revenues to $4.27 billion over the six months to 31 December, as well as a 13.8% rise in underlying net profits after tax to $298.7 million. That helped the company raise its interim dividend by 8.3% to 7.8 cents per share.

Investors can probably thank these earnings for today's new high.

Harvey Norman Holdings Ltd (ASX: HVN)

Next up, we have ASX All Ords retail share Harvey Norman. Harvey Norman stock finished yesterday's session at $5.09 a share. But today, those same shares are currently up 1.96% at $5.18 each after shooting as high as $5.37 in morning trade. That's, you guessed it, Harvey Norman's new 52-week high.

Once again, it looks as though we have earnings to thank here.

Harvey Norman dropped its own earnings report this morning, just before market open. As my Fool colleague dove into today, this report showed Harvey Norman unveiling a 6.6% rise in revenues to $2.29 billion over the six months to 31 December.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at $581 million, up 22.9%. Although underlying profits before tax were up 2.2% to $311 million, the ASX 200 retail share boosted its next dividend by 20% to 12 cents per share.

Again, investors seem stoked with these numbers, and have sent Harvey Norman stock to a new high as a result.

Australian Ethical Investments Ltd (ASX: AEF)

Finally, let's take a look at ASX All Ords financial share Australian Ethical. Australia Ethical stock closed at $6.20 yesterday, and opened at $6.17 this morning. But soon after, the company climbed up to $6.28, its new 52-week high.

Once more, it seems an earnings report is the culprit here.

In addition to Medibank Private, yesterday also saw the latest numbers released from Australian Ethical.

As we discussed yesterday, this report showed Australian Ethical increasing its revenues by 21.2% to $58.8 million over the six months to 31 December. That was helped by a 22% rise in funds under management over the period.

Underlying profit after tax galloped 35.3% higher to a record of $11.5 million. That helped this ASX All Ords share to boost its next dividend by 67% to 5 cents per share.

Again, it's not hard to see why investors might be bidding Australian Ethical shares higher as a result.

The post 3 ASX All Ords shares at new 52-week highs this Friday appeared first on The Motley Fool Australia.

In morning trade, the ASX 300 financial stock is up 22% to a 52-week high of $6.19.

This follows the release of the company's half year results, which revealed a record performance.

ASX 300 financial stock jumps on record half year results

• Operating revenue up 21.2% to $58.8 million
• Funds under management (FUM) revenue up 22% to $54.7 million
• Underlying profit after tax up 35.3% to a record of $11.5 million
• Interim dividend up 67% to 5 cents per share

What happened during the half?

For the six months ended 31 December, the ASX 300 financial stock reported a 21% increase in total revenue to $58.8 million. Management advised that this was driven by average FUM growth which was underpinned by continued positive net flows, positive investment performance, and the acquisition of the Altius business.

With operating expenses growing slower than revenue at 14%, things were even better on the bottom line. Australian Ethical reported a 35% increase in underlying profit after tax to a record of $11.5 million and underlying earnings per share lifted 34% to 10.11 cents.

This allowed the company's board to increase its fully franked interim dividend by 67% to 5 cents per share.

'Strong momentum'

The ASX 300 financial stock's CEO, John McMurdo, is confident that the strong momentum experienced in the first half will continue into the second half. He said:

We are seeing strong momentum which I expect to continue into the second half of the year, as we bed down our new super administration platform, and retain focus on our strategic priorities. I anticipate continued growth in brand awareness and superannuation net flows post transition to GROW as we recommence our marketing activity.

McMurdo also spoke about its revenue margins, expenses, and the future. He adds:

During the second half, revenue margins are expected to stabilise, and employment expenses are moderating following the completion of the acquisition of the Altius business in late September 2024. We will also benefit from the full run rate of the improved commercial rate cards following our superannuation administration and custody transitions.

I'm excited about the period ahead of us. We are well positioned with a strong balance sheet, highly capable team, enhanced business platform, unique brand and deep ethical pedigree.

No earnings guidance has been provided for FY 2025.

The post This ASX 300 financial stock is rocketing 22% on record results appeared first on The Motley Fool Australia.

As Albert Einstein once supposedly said:

Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn't……pays it.

In the shortmterm, a high valuation can seem expensive. But over time, they can deliver significant earnings growth and more than justify the current valuation. Further earnings success can send share prices higher at a pleasing speed.

After a recent dip, I believe both of the below investments are compelling options.

Australian Ethical Investment Ltd (ASX: AEF)

The Australian Ethical share price has fallen 5% since 20 February 2025 and is down close to 10% since 12 December 2024, as the chart below shows.

While that's not a big decline, I think it's even more appealing considering the business has continued growing in the last few months.

This business provides investment products that aim to have a high level of 'ethics', such as avoiding investing in certain industries.

One of this business' big advantages is that it offers superannuation for members. This means that funds under management (FUM) are locked in for decades, and it regularly receives superannuation contributions, helping net inflows.

The latest quarterly update from the company showed its FUM rose from $12.95 billion at September 2024 to $13.26 billion at December 2024. This was helped by net inflows of $110 million for the quarter.

The growth of FUM can help net profit, and the ASX growth share recently highlighted how it's making choices to unlock efficiencies and improve costs. Australian Ethical managing director John McMurdo said:

We completed the successful transition of our custody services to State Street on 1 November 2024, and completed the transition of our Mercer superannuation administration services to GROW in late October 2024. Together, these transformational programs will deliver the strengthened business platform, improved efficiencies and unit cost savings that will underpin our continued growth, and further future profit and operating leverage improvement in the medium term.

Global X Fang+ ETF (ASX: FANG)

This fund has delivered big returns since it was created a few years ago, but it has dropped 7.7% from 18 February 2025. That's a sizeable decline for an exchange-traded fund (ETF), considering it represents a portfolio of businesses.

However, as far as ETFs go, this one has a very concentrated portfolio.

It has ten US-listed positions, all with a heavy technology focus, even if they're not specifically counted as being in the technology sector. That's why I'd like it as an ASX growth share (as it trades on the ASX).

Currently, the ten positions are: Crowdstrike, Meta Platforms, Netflix, Nvidia, Apple, Amazon, Alphabet, Broadcom, Microsoft, and ServiceNow.

ETF returns are decided by the returns of the underlying holdings. Since 18 February 2025, this fund has declined 7.8%. I think it's a good time to 'buy the dip' because these are some of the world's strongest businesses with great brands, excellent economics, and rock-solid balance sheets.

Of all the large businesses that we could own, these could be some of the best businesses to hold for the next decade with how involved they are in technological advances such as artificial intelligence, cloud computing, and so on. I think Aussies should have at least some exposure to these great businesses one way or another.

The post Looking for ASX growth shares? I rate these 2 as buys appeared first on The Motley Fool Australia.

I often like to write about quality ASX shares, but it's impossible to know which companies will drop the most in a bear market.

Some sectors seem to fall further than others, perhaps because investors are worried about how their profit could be impacted in a downturn. However, because of their lower share prices, these businesses could be among the most promising opportunities at the time.

The next time a heavy market decline comes along, I'll look at the two stocks below.

Australian Ethical Investment Ltd (ASX: AEF)

Australian Ethical describes itself as one of Australia's leading ethical investment managers, providing investors with investment products that "align with their values and provide long-term, risk-adjusted returns".

Fund management businesses can be some of the most volatile in a declining market because share price drops directly impact their profitability — think lower funds under management (FUM) and lower revenue. That's on top of investors not being willing to pay as high a price/earnings (P/E) ratio for many businesses, compared to before the market dropped.

However, the opposite is true when markets are rising – fund managers get a helpful boost from rising markets.

Australian Ethical is benefiting from consistent contributions to its superannuation segment (due to its mandatory nature for employees). In the three months to December 2024, this ASX share saw the superannuation division experience $0.1 billion of net inflows.

Overall, the business had $13.26 billion of FUM at the end of 2024. I think this can keep rising in the long term, and any volatility in the short term is likely to be a buying opportunity.

Nick Scali Limited (ASX: NCK)

This ASX retail share sells a significant amount of furniture in Australia and New Zealand each year. Furniture retailing isn't exactly the most defensive sector, so I'd understand if investors became worried about the company's performance during the next downturn.

But I think Nick Scali is a top ASX share with quality and aligned management (with Anthony Scali at the helm), a high underlying return on equity (ROE), and an appealing growth plan.

It plans to open more Nick Scali stores in Australia and New Zealand, many more Plush stores in Australia, and build a growing presence in the UK. Online sales growth could also be a bonus for the company.

I think a sell-off for this business would be a useful time to jump on the shares, partly because it has a fairly high dividend payout ratio, which can translate into a large dividend yield when the Nick Scali share price falls. At the moment, it has a trailing grossed-up dividend yield of 6.2%, including franking credits.

The post 2 top ASX shares to buy on a pullback appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Australian Ethical Investment Ltd (ASX: AEF)

The Australian Ethical share price is down 2.5% to $5.17. This follows the release of the fund manager's quarterly update. Investors have been selling shares despite Australian Ethical continuing to see growth in funds under management (FUM) with another quarter of positive net flows and investment performance. This led to the company reaching the milestone of $13 billion FUM during the quarter. Managing Director, John McMurdo, said: "I'm delighted that our continued commitment to our growth strategy has enabled us to achieve new milestones over the period, with $13.26 billion in FUM reflecting 27% growth for the financial year to date." It seems that some investors were expecting even stronger growth from the fund manager.

PYC Therapeutics Ltd (ASX: PYC)

The PYC Therapeutics share price is down 3.5% to $1.12. This morning, this clinical-stage biotechnology company revealed that the US Food and Drug Administration (FDA) has granted it a Rare Pediatric Disease (RPD) designation for its VP-001 drug development program. This program aims to address the underlying cause of a blinding eye disease in childhood known as Retinitis Pigmentosa type 11 (RP11). This development may have already been priced in by the market.

Resolute Mining Ltd (ASX: RSG)

The Resolute Mining share price is down over 3% to 39.2 cents. This appears to have been driven by a pullback in the gold price on Friday night. It isn't just Resolute Mining that is falling today. A number of gold miners are starting the week in the red. As a result, the S&P/ASX All Ords Gold index is down over 1% at the time of writing.

Star Entertainment Group Ltd (ASX: SGR)

The Star Entertainment share price is down almost 6% to 13.2 cents. Investors have been selling this struggling casino and resorts operator's shares following the release of its quarterly update. Star revealed that revenue was down 15% quarter on quarter in the second quarter to $299 million. And while EBITDA was negative at $8 million for the second quarter excluding significant items, this was an improvement on the $18 million EBITDA loss it recorded in the first quarter.

The post Why Australian Ethical, PYC, Resolute, and Star shares are falling today appeared first on The Motley Fool Australia.

Despite reporting strong growth across core metrics, the Australian Ethical share price is currently down 0.5% at $4.13.

For some context, the All Ordinaries Index (ASX: XAO) is down 0.7% at this same time.

Here's what happened over the three months to 30 September.

ASX All Ords share boosts FUM by $1.9 billion

Investors are bidding down the Australian Ethical share price today despite the company reporting a 24% quarter on quarter increase in Funds under Management (FUM) to $12.95 billion.

The ASX All Ords share completed its Altius transaction in September, which added $1.93 billion in FUM.

Positive organic net flows and strong investment performance also helped lift FUM, with organic growth of $96 million in net flows over the quarter.

The company noted that superannuation net flows were lower in the September quarter due to Australian Ethical Super's administration transition to GROW Inc., which commenced in mid-September. This transition led to a period of limited-service delivery that should be concluded in early November. These flows will then be reported in the December quarter.

As for those investment returns, the ASX All Ords share credited its strengthening investment expertise and active management for growing FUM by $487 million over the quarter.

What did management say?

Commenting on the results that have yet to boost the ASX All Ords share today, Australian Ethical managing director John McMurdo said, "We continue to see organic and inorganic growth across out business."

On the Altius acquisition, he said, "The acquisition of the Altius Asset Management business not only adds to FUM, it strengthens our position as one of Australia's leading ethical fund managers and aligns with our strategy to further build our investment team capability."

McMurdo added that Australian Ethical's transformation initiatives are progressing well.

According to McMurdo:

The transition of our custody administration to State Street is on track to be completed by 1 November 2024, and the transition to the GROW Inc superannuation administration platform from Mercer is set to complete in November, with the second tranche of members transitioning from Link to GROW Inc by the end of the financial year.

Together these changes will deliver a strengthened business platform, as well as improved efficiencies and unit-cost savings, as we head into our next phase of growth supported by the increasing demand for our style of investing.

Australian Ethical share price snapshot

The ASX All Ords share has had a tough year, down 25% in 2024 and 2% over the past 12 months.

The post This ASX All Ords share just reported a 24% leap in a key metric appeared first on The Motley Fool Australia.