As the financial services industry takes a beating thanks to prolonged down markets, Ronald Logue aims to do more service work for mutual funds. In State Street's earnings report released Tuesday, Logue specifically described outsourced fund business as contributing to the firm's strong "business pipeline." Meanwhile, management fees at asset manager State Street Global Advisors fell 30 percent year-over-year.

"We are meeting with potential customers from very large fund complexes that are considering outsourcing their back and/or middle office to us in order to create some variable expense for their organizations," Logue stated, pointing also to hedge fund administration as another growth area.

As for SSgA, management fees fell from $297 million in Q4 2007 to $209 million in Q4 2008. AUM dropped 27 percent from $1.98 trillion to $1.44 trillion.

State Street reported quarterly earnings per share of $0.15 ($65 million in net income), down from $0.57 per share ($223 million total) in Q4 2007. And State Street's stockholders are definitely feeling the pain of that news. The Boston Globe, Boston Herald and the Wall Street Journal highlight the 59 percent drop Tuesday in State Street's stock. 

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