Depending on clients' needs, themed funds are implemented via either
- Screening - White or Blacklists excluding significant parts of the investment universe - e.g. Christian values or shariah compliant investments
- Screening and Integration - e.g. for environmentally themed funds.
For example, for an environmentally themed fund screening would disallow investments in companies with controversies regarding environmental issues, having a high carbon intensity in their production process or business model and a high level of stranded assets. During the integration step in portfolio construction (see LEI 10) the portfolio would be tilted towards better performance in environmental KPIs.