Federated Investors has become one of the most prolific acquirers in the fund industry, and the Pittsburgh-based firm apparently isn't putting away its checkbook just yet. Federated CEO J. Christopher Donahue told Dow Jones' Daisy Maxey that he continues to be on the hunt for good purchases, but he also said he doesn't plan to move away from Federated's core money fund business.

Bloomberg reported last month that Federated was one of the firms that made a preliminary offer to buy Bank of America's Columbia Management. The MFWire broke the news last week on the three finalists in the bidding; the list did not include Federated.

Federated's recent purchases include equity value shop Clover Capital Management and the Prudent Bear funds. And last month Federated unveiled a deal to buy two Touchstone funds.

In three to five years, the firm aims to raise its equity and fixed income franchise up to $100 billion, Donahue said.

"Even though in the first quarter we had 70% of our revenue from money funds, it wasn't that long ago when fixed-income and equity were 60% of our revenues," he told Maxey.

As for its money funds, Federated plans to "keep, develop and enhance" that business, he said.

Low interest rates have prompted Federated and other firms to implement fee waivers to maintain positive net yields. In April, Federated said that waivers could increase.

The firm, however, will not be "waived into oblivion," Donahue said. 

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