In Memoriam: Federated's Founder
A press release entitled, "Federated Investors, Inc. Founder John F. Donahue Dies at Age 92" said Friday, "With deep sadness, Federated Investors, Inc. today announced the passing of John F. Donahue, who founded the company in 1955 and served as chairman emeritus until his death at age 92 on May 11, 2017. Donahue served Federated for more than 60 years, playing a pivotal role in shaping the company and the investment management industry as a tireless advocate for the value of mutual funds to everyday investors. Federated's position as a leader in innovative investment management solutions and services reflects Donahue’s entrepreneurial spirit." Federated President & CEO J. Christopher Donahue, "My father was a remarkable business leader and a man of tremendous faith who dedicated his life to building Federated and his community. He was also a wonderful husband, father, grandfather and great-grandfather who made faith the center of our family. While he will be deeply missed by all who knew him, his entrepreneurial spirit will continue to encourage and inspire us all." Jack Donahue's Obituary says, "The late 1970s brought a new and innovative product to Federated, the money market mutual fund, which led to fast and enormous growth. Thanks to money funds and Mr. Donahue's leadership, Federated by the early 1980s had grown to become the second-largest mutual fund company in the country as it focused sales efforts on bank trust departments using mutual funds to manage their cash assets. Today, Federated manages more than $360 billion in equity, fixed-income and cash products for investors in the U.S., Canada, Latin American, Great Britain, Ireland, Germany and Asia." The Pittsburgh Post Gazette wrote the article, "Federated Investors co-founder John 'Jack' Donahue dies; firm pioneered money market funds." They say, "John F. "Jack" Donahue, co-founder of Federated Investors, philanthropist, and energetic believer in the Catholic faith, died at his Naples, Fla., home Thursday. He was 92. Mr. Donahue, a United States Military Academy graduate and former pilot for the Strategic Air Command, founded Federated Investors in 1955 with Central Catholic High School graduates Richard B. Fisher and the late Thomas J. Donnelly. The Downtown firm pioneered offerings of money market funds and today manages $362 billion from offices in the United States, Canada, Latin America, Great Britain, Ireland, Germany and Asia. Federated began offering money market mutual funds in the 1970s as a way for banks to manage their cash more effectively. The innovation spurred growth that attracted the attention of Aetna Life & Casualty, which acquired Federated in 1982 for about $256 million. Federated's managers bought controlling interest in the company back in 1989, with Aetna retaining a 25 percent that Federated subsequently bought out in 1996. Federated became a publicly traded company in 1998 and today has a market value of $2.6 billion."
