The share price of AMP Limited (ASX: AMP) took a 2.8% hit last week to close Friday’s trading session at $5.49.

While last week’s fall was greater than the 1.3% decline in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), over the past 12 months, AMP’s decline has roughly mimicked the index with both down around 17%.

Given AMP’s leverage to equity markets due to its funds management and wealth advisory businesses’ exposure to fee revenue based on funds under management and advice (FUMA), AMP’s negative performance is unsurprising.

The strain on earnings that equity market falls place on wealth management companies has seen numerous peers including BT Investment Management Ltd (ASX: BTT) and IOOF Holdings Limited (ASX: IFL) experience share price declines too.

With the banking sector expected to provide a continuing drag on the ASX, there appears little chance of any near term relief for stocks such as AMP.

However, while near term exposure to equity market levels may be a drag, the longer term outlook remains positive.

For long-term investors keen to acquire shares in blue chip stocks at reasonable prices, the opportunity to buy when a lot of the “heat” has come out of the market should be welcomed.

AMP is now trading on a trailing price-to-earnings ratio of 14.1 times and a trailing dividend yield of 5.1% (90% franked), which would appear undemanding compared to many of its blue chip peers and also relative to the market.

Although there may not be any near term catalysts to send AMP’s share price back towards its 52-week high of $6.81, the long term tailwinds for this company suggest now could be a reasonable time to add this stock to a conservative portfolio.

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Motley Fool contributor Tim McArthur has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.