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AMP back below $5

Shares in fund manager, financial planner and insurer AMP  (ASX: AMP) are back below $5 on Monday after bouncing back last Friday. The shares have lost 10% in the past month, falling from a 12-month high of $5.79 and slightly outpacing the decline in the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO), which is down 8%.

Given their exposure to stock markets it is not unusual from funds management companies to underperform in a falling market. Leading fund managers Perpetual (ASX: PPT) and BT Investment Management (ASX: BTT) have also both underperformed the index over the past 30 days, falling 11.5% and 19% respectively.

Foolish takeaway

The long-term outlook for financial service providers and particularly the superannuation industry participants in Australia is compelling. The step-up from 9% to 12% contributions to superannuation should provide a significant tailwind for industry participants. Short term weakness in prices may lead to opportunities to purchase quality financial service companies below conservative estimates of their value.

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Motley Fool contributor Tim McArthur owns shares in Perpetual and BT Investment Management.

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