By Stef Dolan on September 18, 2025September 18, 2025 Federated Hermes asks, “What’s on the minds of our clients?” And simply put, the answer is artificial intelligence (AI). As a leader in the use of machine learning in the investment field, Federated Hermes MDT Advisers has received many questions about our thoughts on AI and its application in investment management. As Daniel Mahr, CFA, Head of MDT Group, notes in The human input, “As long-standing adopters of AI in quantitative investing, we are aware of AI’s power and limitations. What we have seen is that computers cannot yet match human insight, and humans can’t process data as quickly and comprehensively as computers. Our investment process, which relies on machine learning, gives us a great deal of control over the quality of the input and output to our portfolio construction process.” MDT’s investment process uses machine learning to forecast company returns, and we believe this has contributed to our ability to consistently deliver past outperformance. Using Big Data to Analyze Portfolios – 2Q25 Trends in Portfolio Construction Every quarter, Federated Hermes’ Portfolio Construction Solutions Team analyzes the moderate model portfolios reviewed by their team throughout the quarter. The team’s “Quarterly Trends in Portfolio Construction” offers a comprehensive analysis of the latest trends in model portfolio construction. What happened in 2Q25? Advisors: contact us to request a copy of the full report. Our contact information is below. Interested? Let’s Connect Interested in seeing how your portfolio stacks up? If you are an advisor, please reach out and we can set up a consultation for you. Federated Hermes has a deep bench of financial professionals who can connect with you locally or provide home-office level support. Justin Slomkowski – Phone: 1-888-400-7838 – Email: Justin.Slomkowski@FederatedHermes.com About Federated Hermes: Federated Hermes, Inc. is a leading global investment manager with $846 billion in assets under management as of 6/30/25. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 10,000 institutions and intermediaries worldwide. Views are as of 8/7/25 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. The value of investments and income from them may go down as well as up, and you may not get back the original amount invested. Past performance is no guarantee of future results. The quantitative models and analysis used by MDT may perform differently than expected and negatively affect performance. Federated Securities Corp. 52024 (9/25) This content of this blog post was provided by one of our 2025 Annual Sponsors, Federated Hermes. Federated Hermes is proud to partner with Great Valley Advisor Group (GVA); and GVA appreciates the continued support provided by Federated Hermes.