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Threadneedle Investment Funds ICVC

VIEWS: 25 PAGES: 99

									  Simplified Prospectus (including important ISA
  Information) for investors in the United Kingdom
0 December 2010 Funds ICVC
    Threadneedle Investment




 Threadneedle
 Investment Funds ICVC
                                                                                                Threadneedle Investment Funds ICVC   1




Contents                                                       The Schedules

Background information                                    2    Schedule 1 -   UK Equity Income Fund

Investment information for the Funds                      3    Schedule 2 -   UK Monthly Income Fund

Risk factors                                              4    Schedule 3 -   UK Corporate Bond Fund

Specific risk factors relevant to the Funds               5    Schedule 4 -   Sterling Bond Fund

Economic information                                      5    Schedule 5 -   Monthly Extra Income Fund

Taxation                                                  5    Schedule 6 -   Strategic Bond Fund

Fees and charges payable by the investor                  6    Schedule 7 -   High Yield Bond Fund

Annual management charge                                  6    Schedule 8 -   UK Growth & Income Fund

                                                               Schedule 9 -   UK Fund
Dilution adjustment                                       6
                                                               Schedule 10 - UK Smaller Companies Fund
Fees and charges paid out of the scheme property of the
Fund                                                      6    Schedule 11 - UK Select Fund

Commercial information                                    7    Schedule 12 - UK Institutional Fund

Buying, selling and switching Shares                      7    Schedule 13 - UK Overseas Earnings Fund

Distributions                                             8    Schedule 14 - Dollar Bond Fund

Publication of prices                                     8    Schedule 15 - American Fund

Money laundering                                          8    Schedule 16 - American Select Fund

Privacy statement                                         8    Schedule 17 - American Smaller Companies Fund (US)

Other important information                               8    Schedule 18 - Japan Fund

Client Categorisation                                     9    Schedule 19 - Japan Smaller Companies Fund

Changes information for UK investors                      76   Schedule 20 - European Bond Fund

Section One – ISA General Terms and Conditions            90   Schedule 21 - European Corporate Bond Fund

                                                               Schedule 22 - European Fund
Section Two – Threadneedle Back-to-Back ISA               95
                                                               Schedule 23 - European Select Fund
Section Three – Threadneedle Cash Withdrawal Facility
(CWF)                                                     95   Schedule 24 - European Smaller Companies Fund

                                                               Schedule 25 - Pan European Fund

                                                               Schedule 26 - European High Yield Bond Fund

                                                               Schedule 27 - Asia Fund

                                                               Schedule 28 - Latin America Fund

                                                               Schedule 29 - Emerging Market Bond Fund

                                                               Schedule 30 - Global Bond Fund

                                                               Schedule 31 - Global Select Fund

                                                               Schedule 32 - Pan European Smaller Companies Fund

                                                               Schedule 33 - UK Cash Fund*
2   Threadneedle Investment Funds ICVC




    Important: This Simplified                  Background information
    Prospectus contains only key
    information about Threadneedle              Threadneedle Investment Funds ICVC
                                                (the “Company”)
    Investment Funds ICVC (the                  The Company is an open-ended investment company with
    “Company”) and its sub-funds and            variable capital incorporated with limited liability and registered
    is drafted in accordance with the           in England and Wales with effect from 18 June 1997 under
    Undertakings for Collective                 registered number IC000002.
    Investment in Transferable
                                                The Company has been authorised by the Financial Services
    Securities Directive 85/611/EEC as          Authority in the United Kingdom (the “FSA”) as eligible to enjoy
    amended by directives                       the rights conferred by the Directive. The FSA can be
    2001/107/EC, 2001/108 and as                contacted at 25 The North Colonnade, Canary Wharf, London
    further amended (the “Directive”).          E14 5HS, United Kingdom.
    Further information for UK
                                                The Company is structured as an umbrella company and
    investors is detailed in a UK               currently consists of 33 different sub-funds (each a “Fund”, and
    Supplement to this Simplified               together the “Funds”). Several classes (“Class”) of share
    Prospectus. This Simplified                 (“Shares”) may be issued in respect of each Fund,
    Prospectus, including its                   distinguished by their criteria for subscription and fee structure.
    schedules, is dated December                Details of the investment criteria for Class 1 Shares and Class
    2010. It does not replace the               2 Shares and Class X Shares are set out in the Prospectus in
                                                Appendix VI. Typically, Class 1 Shares are available to retail
    Prospectus dated December 2010              investors seeking income or growth (or a combination of these)
    (including any applicable                   over the medium to long-term, and Class 2 Shares are
    Addendum) and it should be read in          available to non-retail investors. Class X Shares are available
    conjunction with that Prospectus.           to eligible investors only and will accommodate an alternative
    More detailed information relating          charging structure.

    to the Company may be found in              Hedged share classes:
    the Prospectus and the annual and
    interim reports and accounts.               Definitions:
    These documents are available free
    of charge (before or after an               “Hedged Currency” is the currency in which the Hedged Share
                                                Class is denominated
    investment is made) at any time by
    contacting us on (+44) 1793 363             “Hedged Share Class”, “Hedged Share Classes” or “HSC”
    900* or 0800 068 3000* if you are           means (according to the context) share class or classes which
    calling from the UK. If you require         allow the use of currency hedging transactions to reduce the
    any additional explanation about            effect of exchange rate fluctuations between the Reference
    this Simplified Prospectus, you             Currency or Reference Currencies and the Hedged Currency

    should contact the Client Services          “Portfolio Currency” or “Portfolio Currencies” means (according
    Department of the ACD at                    to the context) the currency or currencies in which the Fund is
    P.O. Box 1331, Swindon, SN38 7TA,           invested in line with the investment objectives applicable to the
    United Kingdom, or at the                   Fund
    telephone number provided above.
                                                “Reference Currency” or “Reference Currencies” means
    If you are in any doubt about the           (according to the context) the currency or currencies against
    contents of this Simplified                 which the currency hedging transaction will be applied in order
    Prospectus you should consult               to reduce any exchange rate fluctuation with the Hedged
    your financial adviser.                     Currency

    * Please note that calls may be recorded.   HSC may be available for some Funds. HSC allow the ACD to
                                                use currency hedging transactions to reduce the effect of
                                                                                                             Threadneedle Investment Funds ICVC   3




exchange rate fluctuations between the reference currency or       The auditors of the Company are PricewaterhouseCoopers
reference currencies and the hedged currency.                      LLP of Hay’s Galleria, 1 Hay’s Lane, London SE1 2RD, United
                                                                   Kingdom.
Where undertaken, the effects of hedging will be reflected in
the value of the relevant HSC. The cost and expenses               Threadneedle Portfolio Services Limited (“TPSL”) promotes the
associated with the hedging transactions in respect of the         Company in jurisdictions outside of the United Kingdom in
relevant HSC(es) and any benefits of the hedging transactions      which the Company is registered for offer and sale to the
will accrue to Shareholders in that HSC only.                      public. These jurisdictions are identified in the Prospectus.
                                                                   TPSL is entered on the FSA register as FSA number 119174.
The ACD will aim to hedge between 95% and 105% of the
proportion of the net asset value attributable to a HSC. When      Investment information for the
assessing the hedging transactions in respect of a HSC both        Funds
the capital and income values of the relevant HSC will be taken
into account.                                                      Investment information, including historic performance, for
                                                                   Share Class 1 (or Share Class 2 where there is no Share Class
The ACD will review the relevant hedging positions daily and, if   1) of each Fund is set out in the respective schedule to this
appropriate, adjust the hedge to reflect investor in- and          Simplified Prospectus. In this respect, Share Class 1 has been
outflows.                                                          selected as a representative share class for the purposes of
                                                                   displaying investment information.
It should be noted that hedging transactions may be entered
into whether or not the currency of a HSC is declining or          Where the investment policy of a Fund contains words such as
increasing in value relative to the reference currency or          ‘primarily’, ‘principally’ or ‘mainly’ in the description of its
portfolio currency or portfolio currencies; consequently, where    investment policy, the relevant Fund will invest not less than
such hedging is undertaken, it may protect investors in the        two-thirds of the value of the property of that Fund in the
relevant class against a decrease in the value of this currency    specified kind of assets.
being hedged but it may also preclude investors from benefiting
from an increase in the value of this currency.                    Where the investment policy of a Fund contains the term
                                                                   ‘significant’ in the description of its investment policy that term
There can be no guarantee that the hedging strategy applied in     shall mean not less than two thirds.
HSC (es) will entirely eliminate the adverse effects of changes
in exchange rates between the reference currency or reference      With respect to the investment policy of the Funds listed below,
currencies and the hedged Currency.                                the term “smaller companies” shall be defined as:

For the complete list of HSC available please refer to the         For the European Smaller Companies Fund companies either
Prospectus, Appendix VII, and/or any addendum to this              headquartered in Europe (ex UK) or exercising a predominant
Appendix.                                                          part of their activity in Europe (ex UK) that, at the time of
                                                                   purchase, are not represented in the top 225 companies in the
Threadneedle Investment Services Limited is the Authorised         FTSE World Europe (ex UK) Index.
Corporate Director (the “ACD”) of the Company. The ACD is
entered on the FSA register as FSA number 190437 and is            For the Pan European Smaller Companies Fund companies
responsible for managing the Company’s affairs in compliance       either headquartered in Europe or exercising a predominant
with the FSA rules contained within the Collective Investment      part of their activity in Europe that, at the time of purchase, are
Schemes Sourcebook (“COLL”).                                       not represented in the top 300 companies in the FTSE World
                                                                   Europe Index.
Threadneedle Asset Management Limited (the “Investment
Manager”) provides investment management and advisory              Companies with a total market capitalisation available for
services to the ACD.                                               trading (free float) of Euro 1.5 billion or less for the Pan
                                                                   European Fund.
The Depositary of the Company is J.P. Morgan Trustee and
Depositary Company Limited (the “Depositary”). The                 Companies which predominantly are listed on the Hoare Govett
Depositary is responsible for the safekeeping of scheme            Smaller Companies Index and the London Stock Exchange’s
property of the Company. The Depositary can be contacted at        Alternative Investment Market for the UK Smaller Companies
Chaseside, Bournemouth BH7 7DA, United Kingdom. The                Fund.
Depositary has delegated custody services to J.P. Morgan
Chase Bank N.A. (the “Custodian”).
4   Threadneedle Investment Funds ICVC




    Companies with a market capitalisation of less than USD 5               an investment in the Company should be viewed as a long-
    billion for the American Smaller Companies Fund (US).                   term investment.

    Companies outside the top 250 stocks listed on the Tokyo                3. Valuation point
    Stock Exchange First Section by market capitalisation and all           Although the net asset value per Share of a Fund is calculated
    companies listed on Japan’s smaller and regional exchanges              at 12 noon UK time on each Dealing Day, details on the daily
    for the Japan Smaller Companies Fund.                                   creation or liquidation of Fund Shares is not available to the
                                                                            ACD until later in the day.
    Where the name of the Fund refers to investments in bonds,
    then that Fund will invest at least two thirds of its total assets in   The ACD has introduced controls to mitigate the impact of this
    straight bonds, other debt securities included in recognised            delay on the Funds, however there is a risk that during periods
    bond indices (for example, Lehmans, Merrill Lynch, iBoxx, etc)          of high market volatility a Fund may be affected if the market
    and derivatives of such constituents, a maximum of 10% of its           prices of the assets dealt in the Fund are significantly different
    assets in equities or other participation rights and a maximum          from the prices used to price the Fund. Price movements
    of 25% of its total assets in options and convertible bonds and         between the time of pricing and dealing may adversely or
    a maximum of one-third of its assets in money market                    positively impact the effective value of shares in the Fund at the
    instruments, if such investments are permitted by the                   time of investment. In normal market conditions, it is expected
    investment policy of that Fund. For further details please refer        that such price differentials would be minimal.
    to Appendix II of the Prospectus.
                                                                            4. Investments in collective investment
    The historic performance of the Funds is not an indicator of            schemes
    future performance. The value of an investment in a Fund and            The Funds are entitled to invest all or part of their assets in
    the income that is derived from it may fall as well as rise.            collective investment schemes, subject to the “FSA Rules” and
    Capital growth is not guaranteed and investors may not recoup           the “OEIC Regulations” (as these terms are defined in the
    the original amount invested. There is no assurance that the            Prospectus), and any further restrictions or limitations applied
    investment objectives of any Fund will actually be achieved.            by the ACD and set out in the Prospectus. The ACD has
                                                                            elected to limit such investment to 10%. This potential
    Potential investors should consider the risk factors applicable to      exposure to the asset classes of those underlying collective
    investing in the Company and also in respect of each Fund               investment schemes needs to be considered by an investor in
    before investing in any Fund.                                           the context of all their investments.

    For a description of the total expense ratio and the significance       5. Use of derivatives
    of portfolio turnover please refer to the section ‘Fees and             The Funds are entitled to use derivatives, subject to the FSA
    charges’. The total expense ratio and portfolio turnover rate for       Rules and the OEIC Regulations, and any further restrictions or
    the Funds for periods previous to those recorded in the                 limitations applied by the ACD and set out in the Prospectus.
    schedules to this Simplified Prospectus are available from the          The use of derivatives within the Funds may increase the risk
    ACD upon request.                                                       profile of the Funds. The potential exposure to derivatives
                                                                            needs to be considered by an investor in the context of all their
    Risk factors                                                            investments.


    A potential investor should recognise certain risk factors before       6. Investing in warrants
    investing in the Company. These risk factors are identified             When a Fund invests in warrants, the price per share of the
    below and are described in more detail in the Prospectus.               Fund may fluctuate more than if the Fund was investing in the
                                                                            underlying security(ies) because of the greater volatility of the
    1. General risk                                                         warrant price.
    The investments of the Company are subject to normal market
    fluctuations and other risks inherent in investing in securities.       7. Suspension of dealings in Shares
    There can be no assurance that any appreciation in value of             In certain circumstances a suspension of dealing may occur
    investments will occur.                                                 Further detail regarding this possibility is set out in the
                                                                            Prospectus.
    2. Effect of initial charge
    An initial charge (where one is imposed) may cause an investor          8. Currency exchange rates
    to realise less than the amount originally invested, particularly if    Depending on an investor’s currency when investing in the
    the Shares are redeemed after only a short period. Therefore,           Fund or Funds, the currency fluctuations may adversely affect
                                                                            the value of an investment and the level of income.
                                                                                                                Threadneedle Investment Funds ICVC   5




9. Hedged Share Class                                                 14. Credit Risk
There can be no guarantee that the hedging strategy applied in        The value of a Fund may be adversely affected if any of the
HSC (es) will entirely eliminate the adverse effects of changes       institutions with which the cash is invested or deposited suffers
in exchange rates between the reference currency and the              insolvency or other financial difficulties.
hedged currency. In addition, it should be noted that hedging
transactions may be entered into whether or not the currency of       Specific risk factors relevant to the
a HSC is declining or increasing in value relative to the             Funds
reference currency or portfolio currency or portfolio currencies.
Consequently, where such hedging is undertaken, it may                In addition to the risk factors set out above that should be
protect investors in the relevant class against a decrease in the     recognised before investing in the Company, additional risk
value of this currency being hedged but it may also preclude          factors apply to specific Funds. These risk factors are identified
investors from benefiting from an increase in the value of the        and described in the respective schedule to this Simplified
currency.                                                             Prospectus, and should be recognised by potential investors
                                                                      before investing in the relevant Fund. A more detailed
10. Investment objective and investment                               description of these risk factors is set out in the Prospectus.
policy
Investors should ensure that they are satisfied with the risk
profile of the investment objective and investment policy of the
                                                                      Economic information
Fund before making an investment in the Fund.
                                                                      Taxation
11. Cash concentration
Except for the American Select Fund and UK Select Fund the            The Company is currently subject to the Authorised Investment
following is applicable: Where a Fund holds at any one time a         Funds (Tax) Regulations 2006, as amended and each Fund is
substantial proportion of their assets in cash, near cash or          treated as a separate entity for UK tax purposes.
money market instruments, it might not, under such
circumstances, participate fully in a rise in market values of the    The Funds are exempt from UK tax on capital gains realised on
asset classes the Fund would otherwise invest in.                     the disposal of investments including interest paying securities
                                                                      and derivatives held within the Funds.
12. Reallocation of liabilities, expenses, costs
and charges                                                           From 1 July 2009 dividends received from UK and overseas
If the assets of a Fund are not sufficient to meet the liabilities,   companies are taxable when received by a Fund unless each
expenses, costs and charges attributable to the Fund (or share        dividend falls into one of five exemptions. The most relevant
class), the ACD may re-allocate assets, liabilities, expenses,        exemption will be that which exempts distributions in respect of
costs and charges between the Funds in a manner which is fair         portfolio holdings (holdings of 10% or less). It is anticipated that
to the shareholders of the Company generally, and normally            the majority of dividends will be exempt in the hands of the
with reference to the net asset values of the relevant Funds.         Funds. However where the availability of treaty relief on
                                                                      withholding tax on overseas dividends from certain countries is
Shareholders are not, however, liable for the debts of the            unavailable because of a “subject to tax” clause in the relevant
Company and will not be liable to make any further payment to         double tax treaty, a Fund may elect for dividends from these
the Company beyond the purchase price of the Shares,                  countries to be treated as taxable income. These dividends and
including any initial charge.                                         all other income received by a Fund will be subject to tax
                                                                      (currently at a rate of 20%), after relief for expenses. Income
The liabilities, expenses and charges directly attributable to a      and gains derived by a Fund in respect of non-UK investments
hedged share class will be charged to that specific hedged            may be subject to foreign withholding or other foreign tax in
share class.                                                          those jurisdictions. The Fund may be afforded credit for the tax
                                                                      suffered.
13. Regulatory protections
The Funds are domiciled in the United Kingdom and are                 Stamp duty reserve tax (“SDRT”) (currently at a rate of 0.5%) is
subject to the regulatory protections that apply in the United        chargeable on the value of redemptions and certain switches. A
Kingdom. These protections may be different to the protections        Fund’s exposure to SDRT will depend on the assets held by
that apply in the country of residence of non-United Kingdom          the Fund. As an example, assets other than UK equities are
resident investors.                                                   “exempt investments” and SDRT will not apply to a Fund that
                                                                      does not hold UK equities.

                                                                      No SDRT is chargeable on surrenders of Shares in the Funds
                                                                      for the period up to and including the date of the Prospectus.
6   Threadneedle Investment Funds ICVC




    The shareholders                                                     The charges applicable to each Class of Shares are set out in
    The tax treatment of the income or capital gains received by         the respective schedule to this Simplified Prospectus.
    individual investors will depend on the tax law applicable to the
    personal situation of each individual investor and/or to the         Dilution adjustment
    place where the capital is invested.
                                                                         The ACD may apply a dilution adjustment to the subscription or
    Investors should seek professional advice from a tax adviser         redemption of Shares. Any such adjustment would be payable
    before investing in the Company if they wish to clarify the tax      by the investor. Further information regarding the
    treatment that will apply to their investment in the Company.        circumstances in which a dilution adjustment may be applied is
                                                                         set out in the Prospectus.
    Fees and charges payable by the
    investor                                                             Fees and charges paid out of the
                                                                         scheme property of the Fund
    Initial, redemption and switching charges
    An initial charge of 5.0% of the gross amount invested (Class 1      General
    Shares and Class 1 Hedged Share Class) is payable by each            The Prospectus details a number of charges and expenses that
    investor that is not resident or not ordinarily resident in the UK   may be incurred by the Company and that may be paid out of
    to the ACD. UK investors will pay an initial charge of 3.75% of      the scheme property of the Fund.
    the gross amount invested. In the case of Class 1 Shares and
    Class 1 Hedged Shares the ACD is entitled to make an initial         In addition to the above, the Prospectus details a number of
    charge, which is included in the buying price of the Shares.         general expenses that are paid by the ACD on behalf of the
                                                                         Company. In return for the payment of these expenses, the
    No initial charge will be applied for investors in Class 2 and X     ACD collects a charge from the scheme property of the Fund.
    Shares or to investments in the UK Cash Fund. Please note            The charge amounts to 0.11% per annum in respect of Class 1
    that the UK Cash Fund is currently registered for public             Shares and 0.035% per annum in respect of Class 2 and Class
    offer in the UK only and it is not intended to be registered         X Shares.
    outside the UK unless otherwise decided by the ACD.
                                                                         Depositary’s fee
    The ACD may use the initial charge to remunerate                     The Depositary’s fee is payable out of the scheme property of
    intermediaries.                                                      each Fund. The fee accrues daily and is payable monthly. The
                                                                         fee is calculated on a sliding scale with reference to the value
    The ACD does not currently impose any redemption charge. If          of the scheme property of the Funds. The applicable fee rates
    a redemption charge was imposed, it would be payable by the          are set out in the Prospectus.
    investor.
                                                                         Depositary’s expenses
    The ACD reserves the right to impose a switching charge              In addition to the Depositary’s fee, the Depositary is entitled to
    where an investor switches an investment from one Fund to            the reimbursement for expenses properly incurred by it in the
    another Fund. The charge is payable by each investor, and            discharge of its duties and the exercise of the powers conferred
    cannot exceed an amount equal to the prevailing initial charge       upon it.
    for the Class of Shares into which the switch is being made.
                                                                         The Depositary has appointed the Custodian as the custodian
    Reinvestment of Income                                               of the scheme property, and is entitled to receive
    For those Funds which allow income to be reinvested, investors       reimbursement of the Custodian’s fees as an expense of each
    may elect to use their dividend income to purchase new Shares        Fund. This fee includes an amount for acting as Custodian in
    in the Fund. Where they do so investors will be entitled to a        each relevant jurisdiction, as well as transaction charges that
    discount on the initial charge for any new shares purchased          apply to individual jurisdictions.
    using this dividend income. For UK investors this will mean a
    discount of up to 2% on the charge of 3.75% listed above.            Stocklending
                                                                         The Company currently engages in stocklending arrangements
    Annual management charge                                             with the Custodian, acting as stocklending agent on behalf of
                                                                         the Depositary. Under an agreement between the Company,
    An annual management charge for each Class of Shares within          the Depositary, the Investment Manager and the Custodian, the
    each Fund is payable by the investor. The annual management          Custodian is entitled to a payment for providing stocklending
    charge accrues daily and is payable monthly, by way of               services to the Company. The ACD has delegated to the
    deduction directly from the investment of each investor.             Investment Manager the provision of oversight services
                                                                                                             Threadneedle Investment Funds ICVC   7




provided in connection with the stocklending activity and the       Department P.O. Box 1331, Swindon SN38 7TA, by faxing the
Investment Manager is entitled to receive a payment for this        application form to (+44) 1793 713609 or by telephoning the
service. The fee payable to the Custodian is calculated as a        ACD on 0800 068 3000* if the calling from the UK or
percentage of the gross income from stocklending and will be        (+44) 1793 363 900 for non-UK investors. Subsequent
15% of the income generated by the stocklending activity. The       investments can be made by telephone on this number, but
fee payable to the Investment Manager is calculated as a            written confirmation will be required.
percentage of the gross income from stocklending and will be
14% of the income generated by the stocklending activity. The       Unless indicated otherwise, all deals will be processed on
remaining amount of income that is generated by virtue of the       receipt and payment immediately becoming due.
stocklending activity is then applied to the Scheme Property of
the Company being 71%.                                              A deal placed before 12 noon (UK time, normally 1300 Central
                                                                    European Time) on a given dealing day (as the term “Dealing
The total expense ratio                                             Day” is defined in the Prospectus) will receive the price
The total expense ratio (“TER”) shows the annual operating          calculated at 12 noon (UK time, normally 1300 Central
expenses of each Class of Shares within each Fund - it does         European Time) on that dealing day.
not include transaction costs. It is disclosed to help you
compare the annual operating expenses of different Funds, and       Settlement must be received by the ACD within the timeframe
of different UCITS schemes. These annual operating expenses         specified in the Prospectus.
are paid by the Fund. They are not paid directly by the investor,
but they will affect the return on the investor’s investment.       Subject to the law of the relevant EEA state, an applicant may
                                                                    qualify for cancellation rights. The ACD will issue the right to
Certain costs are not included in the calculation of the TER.       cancel at the same time as the contract note. This will include
These costs include transaction costs applicable to the relevant    details of how to exercise the right to cancel the investment.
Fund, and costs that are paid directly by investors (as set out     The right to cancel will apply within 14 days of the applicant’s
above).                                                             receipt of the contract note. Due to market movements, an
                                                                    applicant that elects to cancel the investment may not recoup
The portfolio turnover rate for each Fund is intended to            the original amount invested. Further information on
describe the rate at which a Fund buys and sells its assets         cancellation rights for UK investors may be found in the UK
(taking into account the level of issues and redemptions of         Supplement to this Prospectus.
Shares) relative to the value of the Fund. The portfolio turnover
rate is calculated in accordance with FSA methodology. The          In certain circumstances the ACD may reject a request to buy,
portfolio turnover rate is currently calculated as follows:         sell or switch.

(A + B) – (C + D) x 100                                             * Please note that calls may be recorded.
       E
                                                                    Selling Shares
where:      A = purchases of assets;                                Subject to certain criteria, every shareholder has the right to
            B = sales of assets;                                    redeem his Shares on any dealing day.
            C = subscriptions of shares;
            D = redemptions of shares; and                          Requests to redeem Shares may be made by investors to the
            E = average Fund value over 12 months.                  ACD by telephone on (+44) 1793 363 900* or 0800 068 3000
                                                                    when calling form the UK (with written confirmation directed
The total expense ratio for each Class of Shares within each        through the post to the ACD Client Services Department
Fund together with the portfolio turnover rate for each Fund is     P.O. Box 1331 Swindon SN38 7TA), by fax (+44) 1793 713 609
recorded in the respective schedule to this Simplified              or in writing to the ACD.
Prospectus.
                                                                    * Please note that calls may be recorded.
Commercial information
                                                                    Switching Shares
Buying, selling and switching                                       A holder of Shares resident in the UK may at any time switch
                                                                    all or some of this Shares of one Class of Fund for Shares of
Shares                                                              another Class or Fund by telephoning 0800 068 3000* by fax
                                                                    on 0800 328 4540 or though the post directed to the ACD
Buying Shares
                                                                    Client Services Department, P.O. Box 1331, Swindon
Shares can be bought by investors either by sending a
                                                                    SN38 7TA.
completed application form to the ACD, Client Services
8   Threadneedle Investment Funds ICVC




    A holder of Shares resident outside of the UK may at any            Further Means of Publication
    time switch all or some of his Shares of one Class or Fund          Please note that, for reasons beyond the control of the ACD,
    for Shares of another Class or Fund by telephone on                 the published prices may not necessarily be the most recent
    (+44) 1793 363 900* (with written confirmation), by fax or in       prices.
    writing to the ACD Client Services Department P.O. Box 1457,
    Swindon SN1 1FP. Shareholder(s) may be required to                  Belgium
    complete a switching form.                                          The price of Shares of the Funds will be available for Belgian
                                                                        investors at www.beama.be and may also be published in the
    * Please note that calls may be recorded.                           De Tijd.


    Distributions                                                       Italy
                                                                        The prices of Shares in the Funds may be published in the
    Accumulation Shares                                                 Milano Finanza.
    Income will be allocated to the accumulation shares (as defined
    in the Prospectus) throughout the income allocation period and      Switzerland
    will be credited periodically to capital in accordance with the     The prices of Shares of Funds registered and authorised for
    rules of the FSA.                                                   public offer by the Swiss financial regulator will be published
                                                                        electronically on a daily basis at www.swissfunddata.ch.
    Income Shares
    Unless advised otherwise, the ACD will use income                   UK
    distributions to purchase additional income shares (as defined      The prices of Shares may be published in the Financial Times
    in the Prospectus) for the holders. In many cases this additional   newspaper.
    investment will be free of an initial charge. Where holders of
    income shares request, distribution of income will be paid          Money laundering
    directly into the holder’s bank account. Where shareholders
    request that income be paid to them but do not provide bank         Deals in the Shares and otherwise in connection with the
    account details or do not ensure that the details held by the       Company are subject to the UK money laundering regulations,
    ACD are valid, income will be retained by the ACD until valid       and further information is set out in the Prospectus.
    details are provided to the ACD.
                                                                        Investors may be asked to assist the ACD in its efforts to
    Income available for distribution or accumulation is determined     ensure compliance by the Company and the ACD with the UK
    in accordance with the rules laid down by the FSA. Income           money laundering regulations.
    comprises all sums deemed to be income in nature earned by
    the Company and attributable to the Fund in respect of the          Until satisfactory proof of identity is provided the ACD reserves
    relevant accounting period, after deducting charges and             the right to refuse to sell Shares or to delay processing and/or
    expenses paid or payable out of that income and after tax.          withhold any payments due to investors in respect of their
                                                                        investment and to discontinue any deals it is conducting on
    The frequency of distributions, including dividends and/or          behalf of those investors.
    interest distributions, applicable to each Fund is set out in the
    respective schedule to this Simplified Prospectus.                  Privacy statement
    Publication of prices                                               For the purposes of the UK Data Protection Act 1998, the data
                                                                        controller in respect of any personal information provided is the
    The most recent price of Shares will appear daily at                ACD. Investors will be afforded certain rights in respect of the
    www.threadneedle.com or can be obtained by telephone on             information provided. Further detail, including the ACD’s full
    0800 0683000 for UK investors and (+44) 1793 363900* for            privacy statement, is contained in the Prospectus.
    non UK investors. Investors will be informed of any changes in
    the method of publication of prices in accordance with the FSA      Other important information
    Rules.
                                                                        All documentation and communications by the ACD (or any
    * Please note that calls may be recorded                            company within the same group of companies, or acting on
                                                                        behalf of the ACD) in respect of the Company will be in English
                                                                        language, although it is possible that other languages will be
                                                                        used. All deals in the Shares are governed by the laws of
                                                                        England and Wales.
                                                                     Threadneedle Investment Funds ICVC   9




The distribution of this Simplified Prospectus and the offering of
Shares in certain jurisdictions may be restricted. Persons into
whose possession this Simplified Prospectus comes are
required by the Company and the ACD to inform themselves
about and to observe any such restrictions. This Simplified
Prospectus does not constitute an offer or solicitation by
anyone in any jurisdiction in which such offer or solicitation is
not authorised or to any person to whom it is unlawful to make
such offer or solicitation.

Potential investors should not treat the contents of this
Simplified Prospectus as advice relating to legal, taxation,
investment or any other matters and are recommended to
consult their own professional advisers concerning the
acquisition, holding or disposal of Shares.

Threadneedle Investment Services Limited, Authorised
Corporate Director and Unit Trust Manager, Registered No.
3701768. Registered in England & Wales. Registered Office:
60 St. Mary Axe, London EC3A 8JQ. Authorised and regulated
by the Financial Services Authority. Threadneedle is a brand
name, and both the Threadneedle name and logo are
trademarks or registered trademarks of the Threadneedle
group of companies.

www.threadneedle.com


Client Categorisation
In accordance with FSA rules, we are required to categorise
each of our clients. For these purposes, you will be categorised
as a retail client.
10   Threadneedle Investment Funds ICVC




     Schedule 1 to Simplified Prospectus for Threadneedle                                                           Cumulative performance of Class 1 Shares in GBP of the Fund
     Investment Funds ICVC, dated December 2010                                                                     from 31 October 2000 to 31 October 2010 is 54.24%.

     UK Equity Income Fund                                                                                          Euro Performance
     Investment objective                                                                                           The annual returns of Class 1 Shares in Euro of the Fund from
     The investment objective is to achieve an above average rate                                                   31 December 1999 to 31 December 2009 have been as
     of income combined with sound prospects for capital growth.                                                    follows:


     Investment policy                                                                                                             35%
                                                                                                                                          28.2%                                                                             27.9%
                                                                                                                                   30%
     The investment policy is to invest primarily in UK equities. It                                                               25%
                                                                                                                                                                                           23.4%
                                                                                                                                                                                                   21.3%
     may, however, invest in other securities such as convertibles                                                                 20%
                                                                                                                                                                                   13.7%
                                                                                                                                   15%
     and gilts.                                                                                                                    10%
                                                                                                                                                                           8.0%

                                                                                                                                    5%            0.6%
                                                                                                                                    0%
     Investor Profile
                                                                                                                     Performance
                                                                                                                                   -5%                                                                     -1.4%
                                                                                                                                                          -3.8%
     The Fund may be suitable for investors with a long term                                                                       -10%
                                                                                                                                   -15%
     investment horizon seeking an above average income with                                                                       -20%
     sound prospects for capital growth who are prepared to tolerate                                                               -25%
                                                                                                                                                                  -24.5%
                                                                                                                                   -30%
     large price fluctuations. If investors are uncertain if the fund is                                                           -35%

     suitable for them, they are advised to contact a financial                                                                    -40%
                                                                                                                                   -45%                                                                            -41.6%
     adviser.                                                                                                                      -50%
                                                                                                                                          1999    2000    2001    2002     2003    2004    2005    2006    2007    2008     2009


     Investment information                                                                                                                                                        Date

     The performance of Class 1 Shares of the Fund is set out
     below. The performance figures exclude the effect of the initial                                               Cumulative performance of Class 1 Shares in Euro of the Fund
     charge and are calculated on the basis of the price an investor                                                from 31 October 2000 to 31 October 2010 is 3.56%.
     would get on redeeming their Shares with dividend income
     treated in the manner applicable to an individual resident in the                                              USD Performance
     United Kingdom for tax purposes. The assets of the Fund are                                                    The annual returns of Class 1 Shares in USD of the Fund from
     predominantly invested in assets denominated in GBP. Where                                                     31 December 1999 to 31 December 2009 have been as
     the performance data is not determined in this currency                                                        follows:
     investors will be exposed to fluctuation in exchange rates which
     could enhance or diminish the total return. The annual charges                                                                 40%                                                            35.6%
                                                                                                                                                                                                                            32.1%
                                                                                                                                    35%                                    29.8%
     applicable to the Fund are included in the calculation of                                                                      30%
                                                                                                                                                                                   22.5%
                                                                                                                                    25%
     performance.                                                                                                                   20%
                                                                                                                                    15%   9.4%                                                             9.3%
                                                                                                                                    10%                                                    7.1%
     GBP Performance                                                                                                                 5%
     The annual returns of Class 1 Shares in GBP of the Fund from                                                                    0%
                                                                                                                     Performance




                                                                                                                                    -5%
     31 December 1999 to 31 December 2009 have been as                                                                             -10%           -5.8%
                                                                                                                                                          -8.7%
                                                                                                                                   -15%
     follows:                                                                                                                      -20%
                                                                                                                                                                  -11.0%

                                                                                                                                   -25%
                                                                                                                                   -30%
                    25%                                                                                                            -35%
                                                                            19.8%   19.0%                                          -40%
                    20%                                     16.8%                                           17.6%
                                                                    14.2%
                                                                                                                                   -45%
                    15%     13.0%                                                                                                  -50%                                                                            -44.5%

                                                                                            7.4%
                                                                                                                                          1999    2000    2001    2002     2003    2004    2005    2006    2007     2008    2009
                    10%

                     5%                                                                                                                                                            Date
                                    1.7%
      Performance




                     0%

                    -5%
                                                                                                                    Cumulative performance of Class 1 Shares in USD of the Fund
                    - 10%                  -6.3%
                                                                                                                    from 31 October 2000 to 31 October 2010 is 69.82%.
                    - 15%

                    -20%

                    -25%
                                                   -19.5%                                                           Annual management charges
                                                                                                   -23.1%

                    -30%
                                                                                                                    An annual management charge of 1.5% (Class 1 Shares) and
                            1999    2000   2001 2002        2003    2004    2005    2006    2007   2008     2009    1.0% (Class 2 Shares) applies.
                                                                    Date
                                                                                                                    Total expense ratio
                                                                                                                    The total expense ratio from 8 March 2009 to 7 March 2010
                                                                                                                    was 1.63% (Class 1) and 1.05% (Class 2).
                                                                     Threadneedle Investment Funds ICVC   11




Portfolio turnover rate
The portfolio turnover rate for the Fund for the period 7 March
2009 to 8 March 2010 was 191%.

Distributions
Distributions are allocated on 8 March and 8 September, and
are paid on 7 May and 7 November.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:

Risk to capital growth
The investment objective of the Fund treats the generation of
income as a higher (or equivalent) priority than capital growth.
Accordingly, fees and expenses charged in respect of the Fund
may be charged against capital (instead of against income) in
order to manage the level of income paid and/or available to
shareholders. This may result in capital erosion or may
constrain capital growth.
12   Threadneedle Investment Funds ICVC




     Schedule 2 to Simplified Prospectus for Threadneedle                                                           Euro Performance
     Investment Funds ICVC, dated December 2010.                                                                    The annual returns of Class 1 Shares in Euro of the Fund from
                                                                                                                    31 December 1999 to 31 December 2009 have been as
     UK Monthly Income Fund                                                                                         follows:
     Investment objective
     The investment objective is to achieve an above average                                                                       35%
                                                                                                                                   30%    27.1%                                                                             26.0%
     income combined with sound prospects for capital growth.                                                                      25%
                                                                                                                                                                                           24.0%
                                                                                                                                                                                                   22.3%

     Income will be paid monthly.                                                                                                  20%                                             15.5%
                                                                                                                                   15%
                                                                                                                                   10%                                     6.5%
     Investment policy                                                                                                              5%            0.6%

     The investment policy is to invest primarily in UK equities. It                                                                0%




                                                                                                                     Performance
                                                                                                                                   -5%                                                                     -2.5%
     may, however, invest in other securities such as convertibles                                                                 -10%
                                                                                                                                                          -4.5%

     and gilts.                                                                                                                    -15%
                                                                                                                                   -20%
                                                                                                                                   -25%
     Investor Profile
                                                                                                                                                                  -23.7%
                                                                                                                                   -30%
                                                                                                                                   -35%
     The Fund may be suitable for investors with a long term                                                                       -40%
     investment horizon seeking an above average income with                                                                       -45%
                                                                                                                                                                                                                   -43.5%
                                                                                                                                   -50%
     sound prospects for capital growth who are prepared to tolerate                                                                      1999    2000    2001    2002     2003    2004    2005    2006    2007    2008     2009
     large price fluctuations. If investors are uncertain if the fund is                                                                                                           Date
     suitable for them, they are advised to contact a financial
     adviser.
                                                                                                                    Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                                                                    from 31 October 2000 to 31 October 2010 is -1.47%.
     Investment information
     The performance of Class 1 Shares of the Fund is set out
                                                                                                                    USD Performance
     below. The performance figures exclude the effect of the initial
                                                                                                                    The annual returns of Class 1 Shares in USD of the Fund from
     charge and are calculated on the basisof the price an investor
                                                                                                                    31 December 1999 to 31 December 2009 have been as
     would get on redeeming their Shares with dividend income
                                                                                                                    follows:
     treated in the manner applicable to an individual resident in the
     United Kingdom for tax purposes. The assets of the Fund are
                                                                                                                                   40%                                                             36.7%
     predominantly invested in assets denominated in GBP. Where                                                                    35%                                                                                      30.0%
                                                                                                                                                                           28.0%
     the performance data is not determined in this currency                                                                       30%                                             24.4%
                                                                                                                                   25%
     investors will be exposed to fluctuation in exchange rates which                                                              20%
                                                                                                                                   15%
     could enhance or diminish the total return. The annual charges                                                                10%
                                                                                                                                          8.5%                                             7.6%            8.1%

     applicable to the Fund are included in the calculation of                                                                      5%
                                                                                                                                    0%
     performance.
                                                                                                                     Performance




                                                                                                                                   -5%
                                                                                                                                   -10%           -5.8%
                                                                                                                                                          -9.5% -10.1%
     GBP Performance                                                                                                               -15%
                                                                                                                                   -20%
     The annual returns of Class 1 Shares in GBP of the Fund from                                                                  -25%
                                                                                                                                   -30%
     31 December 1999 to 31 December 2009 have been as
                                                                                                                                   -35%
     follows:                                                                                                                      -40%
                                                                                                                                   -45%
                                                                                                                                   -50%                                                                            -46.3%
                     25%                                                                                                                  1999    2000    2001    2002     2003    2004    2005    2006    2007     2008 2009
                                                                            20.3%   19.9%
                     20%
                                                            15.2%   16.0%                                   15.8%                                                                  Date
                     15%    12.0%

                     10%                                                                    6.3%

                      5%            1.7%                                                                            Cumulative performance of Class 1 Shares in USD of the Fund
       Performance




                      0%
                                                                                                                    from 31 October 2000 to 31 October 2010 is 61.58%.
                     -5%

                     -10%                  -7.1%

                     -15%                                                                                           Annual management charge
                     -20%
                                                   -18.7%
                                                                                                                    An annual management charge of 1.5% (Class 1 Shares)
                     -25%
                                                                                                   -25.6%
                                                                                                                    applies.
                     -30%
                            1999    2000   2001    2002     2003    2004    2005    2006    2007   2008     2009

                                                                    Date                                            Total expense ratio
                                                                                                                    The total expense ratio from 8 March 2009 to 7 March 2010
     Cumulative performance of Class 1 Shares in GBP of the Fund                                                    was 1.62% (Class 1).
     from 31 October 2000 to 31 October 2010 is 46.75%.
                                                                     Threadneedle Investment Funds ICVC   13




Portfolio turnover rate
The portfolio turnover rate from 8 March 2009 to 7 March 2010
was 147%.

Distributions
Distributions are allocated on the 8th of each calendar month,
and are paid on the 4th of each calendar month.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:

Risk to capital growth
The investment objective of the Fund treats the generation of
income as a higher (or equivalent) priority than capital growth.
Accordingly, fees and expenses charged in respect of the Fund
may be charged against capital (instead of against income) in
order to manage the level of income paid and/or available to
shareholders. This may result in capital erosion or may
constrain capital growth.
14   Threadneedle Investment Funds ICVC




     Schedule 3 to Simplified Prospectus for Threadneedle                                                      Euro Performance
     Investment Funds ICVC, dated December 2010                                                                The annual returns of Class 1 Shares in Euro of the Fund from
                                                                                                               31 December 1999 to 31 December 2009 have been as
     UK Corporate Bond Fund                                                                                    follows:
     Investment objective
     The investment objective is to achieve a high level of income.                                                           30%                                                                                    26.3%
                                                                                                                              25%

     Investment policy                                                                                                        20%

                                                                                                                              15%
     The investment policy is to invest primarily in fixed interest                                                                  11.8%
                                                                                                                                                                                    10.7%
                                                                                                                              10%            6.4%    7.0%
     investments in the UK and Continental Europe.                                                                                                                          4.4%
                                                                                                                               5%
                                                                                                                                                            0.8%                            0.9%




                                                                                                                Performance
                                                                                                                               0%
     Investor Profile                                                                                                         -5%
                                                                                                                                                                    -3.8%
     The Fund may be suitable for investors with a medium term                                                                -10%
                                                                                                                                                                                                    -8.8%
     investment horizon seeking a high level of income who are                                                                -15%

     prepared to tolerate moderate price fluctuations. If investors are                                                       -20%

     uncertain if the fund is suitable for them, they are advised to                                                          -25%

     contact a financial adviser.                                                                                             -30%

                                                                                                                              -35%                                                                          -32.0%
                                                                                                                                     1999    2000    2001   2002    2003    2004    2005    2006    2007    2008     2009
     Investment information                                                                                                                                                 Date
     The performance of Class 1 Shares of the Fund is set out
     below. The performance figures exclude the effect of the initial
                                                                                                               Cumulative performance of Class 1 Shares in Euro of the Fund
     charge and are calculated on the basisof the price an investor
                                                                                                               from 31 October 2000 to 31 October 2010 is 1.53%.
     would get on redeeming their Shares with dividend income
     treated in the manner applicable to an individual resident in the
                                                                                                               USD Performance
     United Kingdom for tax purposes. The assets of the Fund are
                                                                                                               The annual returns of Class 1 Shares in USD of the Fund from
     predominantly invested in assets denominated in GBP. Where
                                                                                                               31 December 1999 to 31 December 2009 have been as
     the performance data is not determined in this currency
                                                                                                               follows:
     investors will be exposed to fluctuation in exchange rates which
     could enhance or diminish the total return. The annual charges
                                                                                                                              35%
     applicable to the Fund are included in the calculation of                                                                30%
                                                                                                                                                                                                                     30.4%


     performance.                                                                                                             25%
                                                                                                                                                            18.9%
                                                                                                                              20%                                   15.6%
                                                                                                                                                                            12.5%           12.8%
     GBP Performance                                                                                                          15%
                                                                                                                              10%
     The annual returns of Class 1 Shares in GBP of the Fund from
                                                                                                                               5%                    1.5%                                           1.1%
     31 December 1999 to 31 December 2009 have been as
                                                                                                                Performance




                                                                                                                               0%
     follows:                                                                                                                 -5%
                                                                                                                                             -0.3%
                                                                                                                                                                                    -3.9%
                                                                                                                                     -4.6%
                                                                                                                              -10%
                                                                                                                              -15%
                     20%
                                                                                                                              -20%
                                                                                                       16.1%
                                                                                                                              -25%
                     15%
                                                                                                                              -30%

                     10%                                                                                                      -35%
                                    7.6%          7.5%                 7.4%
                                                                                                                                                                                                            -35.4%
                                                                4.9%
                                                                                                                              -40%
                                           4.1%          4.0%
                      5%                                                                                                             1999    2000    2001   2002    2003    2004    2005    2006    2007    2008     2009
       Performance




                                                                                                                                                                            Date
                      0%
                                                                              -1.1%   -0.6%
                            -1.5%
                     -5%
                                                                                                               Cumulative performance of Class 1 Shares in USD of the Fund
                     -10%                                                                                      from 31 October 2000 to 31 October 2010 is 66.48%.
                                                                                              -10.5%
                     -15%
                            1999    2000   2001   2002   2003   2004   2005   2006    2007    2008     2009    Annual management charges
                                                                Date                                           An annual management charge of 0.75% (Class 1 Shares) and
                                                                                                               0.5% (Class 2 Shares) applies.
     Cumulative performance of Class 1 Shares in GBP of the Fund
     from 31 October 2000 to 31 October 2010 is 51.25%.                                                        Total expense ratio
                                                                                                               The total expense ratio from 8 March 2009 to 7 March 2010
                                                                                                               was 0.94% (Class 1) and 0.55% (Class 2).
                                                                     Threadneedle Investment Funds ICVC   15




Portfolio turnover rate
The portfolio turnover rate for the Fund for the period 8 March
2009 to 7 March 2010 was 91%.

Distributions
Distributions are allocated on 8 March, 8 June, 8 September
and 8 December, and are paid on 7 May, 7 August,
7 November and 7 February.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:

Fixed income Fund risk
The interest rate on corporate bonds and most government
bonds will not increase in line with inflation. Thus, over time,
the real value of investor’s income could fall.
16   Threadneedle Investment Funds ICVC




     Schedule 4 to Simplified Prospectus for Threadneedle                   GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 December 1999 to 31 December 2009 have been as
     Sterling Bond Fund                                                     follows:
     Investment objective
     The investment objective is to achieve total return primarily by                       15%

     way of income with some capital growth.                                                                                                                           10.9%

                                                                                            10%
     Investment policy                                                                                     6.4%          6.6%
                                                                                                                                                5.9%
     The investment policy is to invest the assets of the Fund




                                                                              Performance
                                                                                            5%                                          4.1%
     primarily in UK Government Securities dominated in Sterling                                                                                               3.2%


     and Sterling denominated securities issued by Governments,                                                   0.4%          0.1%

     Government Agencies and Supranational Borrowers.                                       0%
                                                                                                                                                       -0.6%


                                                                                                                                                                                -3.1%
     If the ACD considers it desirable it may further invest up to one                      -5%
                                                                                                   -3.4%

                                                                                                   1999    2000   2001   2002   2003    2004    2005   2006    2007    2008     2009
     third of the total assets of the Fund in other securities (including
                                                                                                                                        Date
     other fixed interest securities and money market securities) For
     liquidity purposes it may invest in cash and near cash.
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     Investor Profile                                                       from 31 October 2000 to 31 October 2010 is 41.00%.
     The Fund may be suitable for investors with a medium term
     investment horizon seeking a total return primarily by way of          Euro Performance
     income with some capital growth who are prepared to tolerate           The annual returns of Class 1 Shares in Euro of the Fund from
     moderate price fluctuations. If investors are uncertain if the         31 December 1999 to 31 December 2009 have been as
     fund is suitable for them, they are advised to contact a financial     follows:
     adviser.
                                                                                            15%

     Investment information                                                                         9.6%
                                                                                                                                                9.1%
     The performance of Class 1 Shares of the Fund is set out                               10%

     below. The performance figures exclude the effect of the initial                                      5.3%                                                                 5.5%

     charge and are calculated on the basisof the price an investor                          5%
                                                                                                                  3.1%                   3.6%

                                                                                                                                                       1.4%
     would get on redeeming their Shares with dividend income                                                            0.0%
     treated in the manner applicable to an individual resident in the                       0%
                                                                             Performance




     United Kingdom for tax purposes. The assets of the Fund are
     predominantly invested in assets denominated in GBP. Where                             -5%
                                                                                                                                                               -5.3%
     the performance data is not determined in this currency                                                                    -7.4%
     investors will be exposed to fluctuation in exchange rates which                       -10%

     could enhance or diminish the total return. The annual charges
     applicable to the Fund are included in the calculation of                              -15%
                                                                                                                                                                       -15.8%
     performance.
                                                                                            -20%
                                                                                                    1999   2000   2001   2002   2003    2004    2005   2006    2007    2008     2009

                                                                                                                                        Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 October 2000 to 31 October 2010 is -5.33%.
                                                                                                                                                    Threadneedle Investment Funds ICVC   17




USD Performance                                                                                            shareholders. This may result in capital erosion or may
The annual returns of Class 1 Shares in USD of the Fund from                                               constrain capital growth.
31 December 1999 to 31 December 2009 have been as
follows:                                                                                                   2. Fixed income Fund risk
                                                                                                           The interest rate on corporate bonds and most government
               20%                            17.9%                                                        bonds will not increase in line with inflation. Thus, over time,
                                                                            13.4%
                                                                                                           the real value of investor’s income could fall.
               15%
                                                      11.3% 11.6%
                                                                                                    8.9%
               10%

                                                                                    5.0%
                5%


                0%
 Performance




                              -1.4%
                                      -2.2%
               -5%
                                                                    -5.3%
                      -6.4%
               -10%


               -15%


               -20%
                                                                                           -19.9%

               -25%
                      1999    2000    2001    2002    2003   2004   2005    2006    2007   2008     2009

                                                             Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is 55.25%.

Annual management charge
An annual management charge of 1.0% (Class 1 Shares)
applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.19% (Class 1).

Portfolio turnover rate
The portfolio turnover rate for the Fund for the period 8 March
2009 to 7 March 2010 was 655%.

Distributions
Distributions are allocated on 8 March and 8 September, and
are paid on 7 May and 7 November.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:

1. Risk to capital growth
The investment objective of the Fund treats the generation of
income as a higher (or equivalent) priority than capital growth.
Accordingly, fees and expenses charged in respect of the Fund
may be charged against capital (instead of against income) in
order to manage the level of income paid and/or available to
18   Threadneedle Investment Funds ICVC




     Schedule 5 to Simplified Prospectus for Threadneedle                                                        Euro Performance
     Investment Funds ICVC, dated December 2010                                                                  The annual returns of Class 1 Shares in Euro of the Fund from
                                                                                                                 31 December 1999 to 31 December 2009 have been as
     Monthly Extra Income Fund                                                                                   follows:
     Investment objective
     The investment objective is to achieve a high level of income                                                              35%
                                                                                                                                                                                                                        28.4%
                                                                                                                                30%
     with prospects of capital growth. Income will be paid monthly.                                                             25%                                                    20.4%
                                                                                                                                                                                               18.0%
                                                                                                                                20%
                                                                                                                                15%                                            12.0%
     Investment policy                                                                                                          10%
                                                                                                                                                                       3.6%
                                                                                                                                              1.9%
     The investment policy is to invest primarily in the Sterling                                                                5%
                                                                                                                                 0%
     denominated fixed interest securities and UK equities.




                                                                                                                  Performance
                                                                                                                                -5%                   -1.2%
                                                                                                                                                                                                       -4.0%
                                                                                                                                -10%
                                                                                                                                -15%
     Investor Profile                                                                                                           -20%                          -15.6%
                                                                                                                                -25%
     The Fund may be suitable for investors with a long term                                                                    -30%
     investment horizon seeking a high level of income with                                                                     -35%
                                                                                                                                -40%
     prospects for capital growth who are prepared to tolerate large                                                            -45%                                                                           -40.7%

     price fluctuations. If investors are uncertain if the fund is                                                              -50%
                                                                                                                                       1999   2000    2001    2002     2003    2004    2005    2006    2007    2008     2009
     suitable for them, they are advised to contact a financial
                                                                                                                                                                               Date
     adviser.

     Investment information                                                                                      Cumulative performance of Class 1 Shares in Euro of the Fund
     The performance of Class 1 Shares of the Fund is set out                                                    from 31 October 2000 to 31 October 2010 is 6.88%.
     below. The performance figures exclude the effect of the initial
                                                                                                                 USD Performance
     charge and are calculated on the basis of the price an investor
                                                                                                                 The annual returns of Class 1 Shares in USD of the Fund from
     would get on redeeming their Shares with dividend income
                                                                                                                 31 December 1999 to 31 December 2009 have been as
     treated in the manner applicable to an individual resident in the
                                                                                                                 follows:
     United Kingdom for tax purposes. The assets of the Fund are
     predominantly invested in assets denominated in GBP. Where
                                                                                                                                 40%
     the performance data is not determined in this currency                                                                     35%                                                           31.9%                    32.6%

     investors will be exposed to fluctuation in exchange rates which                                                            30%                                   24.5%
                                                                                                                                 25%                                           20.7%
     could enhance or diminish the total return. The annual charges                                                              20%
                                                                                                                                 15%
     applicable to the Fund are included in the calculation of                                                                   10%                                                                   6.5%
                                                                                                                                                                                       4.5%
     performance.                                                                                                                 5%
                                                                                                                                  0%
                                                                                                                  Performance




                                                                                                                                 -5%                          -0.5%
     GBP Performance                                                                                                            -10%          -4.5%
                                                                                                                                                      -6.3%
                                                                                                                                -15%
     The annual returns of Class 1 Shares in GBP of the Fund from                                                               -20%
                                                                                                                                -25%
     31 December 1999 to 31 December 2009 have been as                                                                          -30%
     follows:                                                                                                                   -35%
                                                                                                                                -40%
                                                                                                                                -45%
                                                                                                                                                                                                               -43.6%
                                                                                                                                -50%
                     25%
                                                                                                                                       1999   2000    2001    2002     2003    2004    2005    2006    2007    2008     2009

                     20%                                                                                 18.0%
                                                                         16.8%                                                                                                 Date
                                                                                 15.7%
                     15%                                   12.0% 12.5%

                     10%                                                                                         Cumulative performance of Class 1 Shares in USD of the Fund
                                                                                         4.7%
                      5%           3.0%                                                                          from 31 October 2000 to 31 October 2010 is 75.26%.
       Performance




                      0%

                     -5%
                                          -3.8%
                                                                                                                 Annual management charge
                     -10%
                                                                                                                 An annual management charge of 1.25% (Class 1 Shares)
                                                  -10.0%
                                                                                                                 applies.
                     -15%

                     -20%

                                                                                                -21.9%
                                                                                                                 Total expense ratio
                     -25%
                            1999   2000   2001    2002     2003   2004   2005    2006    2007   2008     2009
                                                                                                                 The total expense ratio from 8 March 2009 to 7 March 2010
                                                                  Date                                           was 1.39% (Class 1).


     Cumulative performance of Class 1 Shares in GBP of the Fund
     from 31 October 2000to 31 October 2010 is 59.18%.
                                                                     Threadneedle Investment Funds ICVC   19




Portfolio turnover rate
The portfolio turnover rate from 8 March 2009 to 7 March 2010
was 167%.

Distributions
Distributions are allocated on the 8th of each calendar month,
and are paid on the 4th of each calendar month.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:

Risk to capital growth
The investment objective of the Fund treats the generation of
income as a higher (or equivalent) priority than capital growth.
Accordingly, fees and expenses charged in respect of the Fund
may be charged against capital (instead of against income) in
order to manage the level of income paid and/or available to
shareholders. This may result in capital erosion or may
constrain capital growth.
20   Threadneedle Investment Funds ICVC




     Schedule 6 to Simplified Prospectus for Threadneedle                                  30%                                                                                     28.2%

     Investment Funds ICVC, dated December 2010                                            25%

                                                                                           20%

     Strategic Bond Fund                                                                   15%                                  11.4%

     Investment objective                                                                  10%                                           7.8%
                                                                                                                                                 6.0%




                                                                             Performance
                                                                                                                        4.4%
                                                                                            5%                                                           2.2%
     The investment objective is to achieve total return principally by
                                                                                            0%
     way of income. Income will be paid monthly.                                           -5%
                                                                                                                                                                 -0.7%

                                                                                           - 10%
     Investment policy                                                                     - 15%
     The investment policy is to primarily invest the assets of the                        -20%                                                                           -17.8%

     Fund directly or indirectly in UK and European debt securities.                       -25%
                                                                                                   1999   2000   2001 2002      2003    2004     2005    2006    2007     2008     2009
     The ACD’s strategic investment approach allocates the Fund’s
                                                                                                                                        Date
     investments between corporate investment grade and non-
     investment grade sovereign and supranational debt.
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     The ACD may invest up to one third of the assets of the Fund           from 30 November 2001 to 31 October 2010 is 54.48%.
     in money market instruments, cash or near cash and other
     securities (other than equities) including non UK and non-             Euro Performance
     European debt.                                                         The annual returns of Class 1 Shares in Euro of the Fund from
                                                                            30 November 2001 to 31 December 2009 have been as
     The ACD may invest in derivatives and forward transactions.            follows:
     The ACD may take long and short positions through
     derivatives.                                                                          45%
                                                                                                                                                                                    39.5%
                                                                                           40%
                                                                                           35%
     Where securities are non-Sterling denominated it is intended                          30%

     that they will typically be hedged back into Sterling.                                25%
                                                                                           20%
                                                                                           15%
     Investor Profile                                                                      10%                                            7.3%
                                                                                                                                                  9.2%
                                                                                                                                                          4.2%
                                                                                                                                 3.0%
                                                                             Performance




     The Fund may be suitable for investors with a medium term                              5%
                                                                                            0%
     investment horizon seeking a total return primarily by way of                          -5%                         -2.0%
     income who are prepared to tolerate moderate price                                    -10%
                                                                                                                                                                  -8.9%
     fluctuations. If investors are uncertain if the fund is suitable for                  -15%
                                                                                           -20%
     them, they are advised to contact a financial adviser.                                -25%
                                                                                           -30%

     Investment information                                                                -35%
                                                                                           -40%                                                                            -37.5%
     The performance of Class 1 Shares of the Fund is set out                                      1999   2000   2001   2002     2003     2004    2005    2006    2007      2008     2009

     below. The performance figures exclude the effect of the initial                                                                    Date
     charge and are calculated on the basis of the price an investor
     would get on redeeming their Shares with dividend income
                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
     treated in the manner applicable to an individual resident in the
                                                                            from 30 November 2001 to 31 October 2010 is 11.57%.
     United Kingdom for tax purposes. The assets of the Fund are
     predominantly invested in assets denominated in GBP. Where
     the performance data is not determined in this currency
     investors will be exposed to fluctuation in exchange rates which
     could enhance or diminish the total return. The annual charges
     applicable to the Fund are included in the calculation of
     performance.

     GBP Performance
     The annual returns of Class 1 Shares in GBP of the Fund from
     30 November 2001 to 31 December 2009 have been as
     follows:
                                                                                                                                                     Threadneedle Investment Funds ICVC   21




USD Performance                                                                                            2. Risk to capital growth
The annual returns of Class 1 Shares in USD of the Fund from                                               The investment objective of the Fund treats the generation of
30 November 2001 to 31 December 2009 have been as                                                          income as a higher (or equivalent) priority than capital growth.
follows:                                                                                                   Accordingly, fees and expenses charged in respect of the Fund
                                                                                                           may be charged against capital (instead of against income) in
               50%
                                                                                                   44.0%
                                                                                                           order to manage the level of income paid and/or available to
               45%
               40%
                                                                                                           shareholders. This may result in capital erosion or may
               35%                                                                                         constrain capital growth.
               30%
                                                   23.8%
               25%
               20%                         15.5%           15.6%           16.5%                           3. Fixed income Fund risk
               15%
               10%
                                                                                                           The interest rate on corporate bonds and most government
 Performance




                5%                                                                 1.0%                    bonds will not increase in line with inflation. Thus, over time,
                0%
                -5%
                                                                                                           the real value of investor’s income could fall.
               -10%                                                -5.3%
               -15%
               -20%
                                                                                                           4. Use of derivatives and forward
               -25%                                                                                        transactions
               -30%
               -35%
                                                                                                           The Fund uses derivatives and forward transactions for
               -40%                                                                                        both EPM and investment purposes including short selling
               -45%                                                                       -40.6%
                      1999   2000   2001   2002    2003    2004    2005    2006    2007   2008     2009    and leverage. The use of derivatives and forward
                                                           Date                                            transactions for EPM will not increase the risk profile of
                                                                                                           the Fund. The use of derivatives for investment purposes
                                                                                                           may increase the risk profile of the Fund.
Cumulative performance of Class 1 Shares in USD of the Fund
from 30 November 2001 to 31 October 2010 is 73.18%.
                                                                                                           5. Short sales and Leverage
                                                                                                           The Fund’s exposure involves short sales of securities and
Annual management charge
                                                                                                           leverage which increases the risk of the Fund. The term
An annual management charge of 1.25% (Class 1 Shares) and
                                                                                                           “short sales” refers to an exposure through derivatives to the
0.75% (Class 2 Shares) applies.
                                                                                                           selling of securities that are not owned by the seller at the time
                                                                                                           of the sale in anticipation that its value will fall. However, if the
Total expense ratio
                                                                                                           value of that security increases, it will have a negative effect on
The total expense ratio from 8 March 2009 to 7 March 2010
                                                                                                           the Fund’s value. In a rising market, leverage can enhance
was 1.45% (Class 1) and 0.80% (Class 2).
                                                                                                           returns to Shareholders but if the market falls, losses may be
                                                                                                           greater.
Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to
                                                                                                           These “Risk factors” must be understood before making an
7 March 2010 was 114%.
                                                                                                           investment in the Fund.

Distributions
Distributions are allocated on the 8th of each calendar month,
and are paid on the 4th of each calendar month.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:

1. Investing in high yield bonds
Investing in high yield bonds may include investments in ‘below
investment grade’ securities (generally of below ‘BBB-’ grade,
with reference to leading credit rating agencies). These
securities can bring an increased risk of default on repayment
and therefore an increased risk that the income and capital
value of the Fund will be affected.
22   Threadneedle Investment Funds ICVC




     Schedule 7 to Simplified Prospectus for Threadneedle                                                        Euro Performance
     Investment Funds ICVC, dated December 2010                                                                  The annual returns of Class 1 Shares in Euro of the Fund from
                                                                                                                 to 31 December 2009 have been as follows:
     High Yield Bond Fund
     Investment objective                                                                                                        70%                                                                                    65.8%
                                                                                                                                 65%
     The investment objective is to achieve a higher level of income.                                                            60%
                                                                                                                                 55%
     Income will be paid monthly.                                                                                                50%
                                                                                                                                 45%
                                                                                                                                 40%
     Investment policy                                                                                                           35%
                                                                                                                                 30%
     The investment policy is to invest principally in higher risk UK                                                            25%
                                                                                                                                                                       16.4%
                                                                                                                                 20%
                                                                                                                                                                               12.2%
     and international fixed interest securities. It may also invest in                                                          15%                                                           11.1%




                                                                                                                  Performance
                                                                                                                                                                                       8.5%
                                                                                                                                 10%
     equities.                                                                                                                    5%                  0.8%
                                                                                                                                  0%
                                                                                                                                 -5%
                                                                                                                                              -3.3%
     Investor Profile                                                                                                           -10%
                                                                                                                                -15%                          -10.8%
                                                                                                                                                                                                       -7.8%

                                                                                                                                -20%
     The Fund may be suitable for investors with a medium to long                                                               -25%
     term investment horizon seeking a high level of income who                                                                 -30%
                                                                                                                                -35%
     are prepared to tolerate moderate to large price fluctuations. If                                                          -40%
                                                                                                                                -45%
     investors are uncertain if the fund is suitable for them, they are                                                         -50%                                                                           -45.5%
                                                                                                                                       1999   2000    2001    2002     2003    2004    2005    2006    2007    2008     2009
     advised to contact a financial adviser.
                                                                                                                                                                               Date

     Investment information
     The performance of Class 1 Shares of the Fund is set out                                                    Cumulative performance of Class 1 Shares in Euro of the Fund
     below. The performance figures exclude the effect of the initial                                            from 31 October 2000 to 31 October 2010 is 21.75%.
     charge and are calculated on the basis of the price an investor
     would get on redeeming their Shares with dividend income                                                    USD Performance
     treated in the manner applicable to an individual resident in the                                           The annual returns of Class 1 Shares in USD of the Fund from
     United Kingdom for tax purposes. The assets of the Fund are                                                 to 31 December 2009 have been as follows:
     predominantly invested in assets denominated in GBP. Where
     the performance data is not determined in this currency                                                                     75%
                                                                                                                                 70%
                                                                                                                                                                                                                        71.1%


     investors will be exposed to fluctuation in exchange rates which                                                            65%
                                                                                                                                 60%
     could enhance or diminish the total return. The annual charges                                                              55%
                                                                                                                                 50%
     applicable to the Fund are included in the calculation of                                                                   45%                                   39.9%
                                                                                                                                 40%
     performance.                                                                                                                35%
                                                                                                                                 30%                                                           24.2%
                                                                                                                                 25%                                           20.9%
     GBP Performance                                                                                                             20%
                                                                                                                                 15%
                                                                                                                  Performance




     The annual returns of Class 1 Shares in GBP of the Fund to                                                                  10%                          5.2%
                                                                                                                                                                                                       2.3%
                                                                                                                                  5%
     31 December 2009 have been as follows:                                                                                       0%
                                                                                                                                 -5%
                                                                                                                                -10%                  -4.5%                            -5.9%
                                                                                                                                -15%          -9.4%
                      55%                                                                                52.4%                  -20%
                      50%                                                                                                       -25%
                      45%                                                                                                       -30%
                      40%                                                                                                       -35%
                      35%                                                                                                       -40%
                      30%                                  25.8%                                                                -45%
                      25%                                                                                                       -50%
                      20%                                                                                                                                                                                      -48.2%
                                                                                                                                -55%
                                                                   12.8%
       Performance




                      15%                                                         9.0%                                                 1999   2000    2001    2002     2003    2004    2005    2006    2007    2008     2009
                      10%                                                  5.3%
                       5%                                                                0.5%                                                                                  Date
                       0%
                      -5%          -2.2%   -1.9%
                     -10%                          -4.9%
                     -15%                                                                                        Cumulative performance of Class 1 Shares in USD of the Fund
                     -20%
                     -25%                                                                                        from 31 October 2000 to 31 October 2010 is 99.64%.
                     -30%
                                                                                                -28.3%
                     -35%
                            1999   2000    2001    2002    2003    2004    2005   2006   2007   2008     2009
                                                                                                                 Annual management charge
                                                                   Date                                          An annual management charge of 1.25% (Class 1 Shares) and
                                                                                                                 0.75% (Class 2 Shares) applies.
     Cumulative performance of Class 1 Shares of the Fund from 31
     October 2000to 31 October 2010 is 81.32%.                                                                   Total expense ratio
                                                                                                                 The total expense ratio from 8 March 2009 to 7 March 2010
                                                                                                                 was 1.44% (Class 1) and 0.80% (Class 2).
                                                                     Threadneedle Investment Funds ICVC   23




Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to
7 March 2010 was 125%.

Distributions
Distributions are allocated on the 8th of each calendar month,
and are paid on the 4th of each calendar month.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:

1. Investing in high yield bonds
Investing in high yield bonds may include investments in ‘below
investment grade’ securities (generally of below ‘BBB-’ grade,
with reference to leading credit rating agencies). These
securities can bring an increased risk of default on repayment
and therefore an increased risk that the income and capital
value of the Fund will be affected.

2. Risk to capital growth
The investment objective of the Fund treats the generation of
income as a higher (or equivalent) priority than capital growth.
Accordingly, fees and expenses charged in respect of the Fund
may be charged against capital (instead of against income) in
order to manage the level of income paid and/or available to
shareholders. This may result in capital erosion or may
constrain capital growth.

3. Fixed income Fund risk
The interest rate on corporate bonds and most government
bonds will not increase in line with inflation. Thus, over time,
the real value of investor’s income could fall.

These “Risk factors” must be understood before making an
investment in the Fund.
24   Threadneedle Investment Funds ICVC




     Schedule 8 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                            The annual returns of Class 1 Shares in GBP of the Fund from
                                                                           31 December 1999 to 31 December 2009 have been as
     UK Growth & Income Fund                                               follows:
     Investment objective
     The investment objective is to provide long term capital growth                      25%    22.3%                                             21.7%                           21.6%

     with a reasonable and growing income.                                                20%                                      17.7%
                                                                                                                                                           16.3%

                                                                                          15%

     Investment policy                                                                    10%
                                                                                                                                           10.0%                   9.4%


     The investment policy is to invest primarily in ‘blue chip’ large                     5%
     capitalised UK companies, but including, when deemed




                                                                            Performance
                                                                                           0%
     appropriate, small and medium-sized companies,
                                                                                          -5%
     predominantly from the UK.                                                                          -5.7%
                                                                                          -10%

                                                                                                                 -12.3%
     Investor Profile                                                                     -15%

                                                                                          -20%
     The Fund may be suitable for investors with a long term
                                                                                          -25%
     investment horizon seeking a reasonable and growing income                                                           -23.2%
                                                                                                                                                                          -26.1%
     with prospects for capital growth who are prepared to tolerate                       -30%
                                                                                                 1999    2000    2001     2002     2003    2004    2005    2006    2007   2008     2009
     large price fluctuations. If investors are uncertain if the fund is
                                                                                                                                           Date
     suitable for them, they are advised to contact a financial
     adviser.
                                                                           Cumulative performance of Class 1 Shares in GBP of the Fund
                                                                           from 31 October 2000 to 31 October 2010 is 29.82%.
     Investment information
     The performance of Class 1 Shares of the Fund is set out
                                                                           Euro Performance
     below. The performance figures exclude the effect of the initial
                                                                           The annual returns of Class 1 Shares in Euro of the Fund from
     charge and are calculated on the basisof the price an investor
                                                                           31 December 1999 to 31 December 2009 have been as
     would get on redeeming their Shares with dividend income
                                                                           follows:
     treated in the manner applicable to an individual resident in the
     United Kingdom for tax purposes. The assets of the Fund are
                                                                                          45%
     predominantly invested in assets denominated in GBP. Where                           40%
                                                                                                 38.8%

     the performance data is not determined in this currency                              35%                                                                                      32.3%

                                                                                          30%                                                      25.4%
     investors will be exposed to fluctuation in exchange rates which                     25%
                                                                                                                                                           18.6%
     could enhance or diminish the total return. The annual charges                       20%
                                                                                          15%
     applicable to the Fund are included in the calculation of                            10%
                                                                                                                                   8.9%    9.4%

     performance.                                                                          5%                                                                      0.3%
                                                                            Performance




                                                                                           0%
                                                                                          -5%
                                                                                          -10%           -6.6%
                                                                                          -15%                   -9.9%

                                                                                          -20%
                                                                                          -25%
                                                                                          -30%
                                                                                                                          -27.9%
                                                                                          -35%
                                                                                          -40%
                                                                                          -45%
                                                                                                                                                                          -43.9%
                                                                                          -50%
                                                                                                 1999    2000    2001     2002     2003    2004    2005    2006    2007   2008     2009

                                                                                                                                           Date



                                                                           Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                           from 31 October 2000to 31 October 2010 is -12.83%.
                                                                                                                                                      Threadneedle Investment Funds ICVC   25




USD Performance                                                                                                Risk to capital growth
The annual returns of Class 1 Shares in USD of the Fund from                                                   The investment objective of the Fund treats the generation of
31 December 1999 to 31 December 2009 have been as                                                              income as a higher (or equivalent) priority than capital growth.
follows:                                                                                                       Accordingly, fees and expenses charged in respect of the Fund
                                                                                                               may be charged against capital (instead of against income) in
               45%                                                                                             order to manage the level of income paid and/or available to
               40%                                                                                     36.6%   shareholders. This may result in capital erosion or may
               35%
                                                       30.9%
                                                                              32.6%                            constrain capital growth.
               30%

               25%
                      18.5%                                    17.9%
               20%

               15%                                                                    11.2%
                                                                       8.8%
               10%

                5%

                0%
 Performance




               -5%

               -10%

               -15%           -12.6%
                                       -14.5% -15.1%
               -20%

               -25%

               -30%

               -35%

               -40%

               -45%

               -50%                                                                           -46.6%

               -55%
                      1999    2000     2001   2002     2003    2004    2005   2006    2007    2008     2009

                                                               Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000to 31 October 2010 is 42.93%.

Annual management charge
An annual management charge of 1.50% (Class 1 Shares) and
1.00% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.63% (Class 1) and 1.06% (Class 2).

Portfolio turnover rate
The portfolio turnover rate for the Fund for the period 7 March
2009 to 8 March 2010 was 178%.

Distributions
Distributions are allocated on 8 March and 8 September, and
are paid on 7 May and 7 November.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:
26   Threadneedle Investment Funds ICVC




     Schedule 9 to Simplified Prospectus for Threadneedle                   GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 December 1999 to 31 December 2009 have been as
     UK Fund                                                                follows:
     Investment objective
     The investment objective is to achieve capital growth.                                30%                                                                                      26.2%
                                                                                           25%
                                                                                                                                                    20.9%
                                                                                                  19.6%
     Investment policy                                                                     20%                                      16.8%
                                                                                                                                                            14.2%
     The investment policy is to invest the assets of the Fund                             15%                                              11.8%
                                                                                                                                                                    9.7%
                                                                                           10%
     principally in equities of companies domiciled in the UK or
                                                                                            5%
     which have significant UK operations. If the ACD considers it




                                                                             Performance
                                                                                            0%
     desirable, it may further invest in other securities (including
                                                                                           -5%            -2.5%
     fixed interest securities, other equities and money market
                                                                                           -10%
     securities).                                                                                                 -10.3%
                                                                                           -15%

                                                                                           -20%
     Investor Profile                                                                      -25%                            -23.0%
     The Fund may be suitable for investors with a long term                               -30%
                                                                                                                                                                           -28.7%
     investment horizon seeking capital growth who are prepared to                         -35%

     tolerate large price fluctuations. If investors are uncertain if the                         1999    2000    2001     2002     2003    2004    2005    2006    2007   2008     2009

     fund is suitable for them, they are advised to contact a financial                                                                     Date

     adviser.
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     Investment information                                                 from 31 October 2000to 31 October 2010 is 34.77%.
     The performance of Class 1 Shares of the Fund is set out
     below. The performance figures exclude the effect of the initial       Euro Performance
     charge and are calculated on the basisof the price an investor         The annual returns of Class 1 Shares in Euro of the Fund from
     would get on redeeming their Shares with dividend income               31 December 1999 to 31 December 2009 have been as
     treated in the manner applicable to an individual resident in the      follows:
     United Kingdom for tax purposes. The assets of the Fund are
     predominantly invested in assets denominated in GBP. Where                            40%    35.7%                                                                             37.4%

     the performance data is not determined in this currency                               35%
                                                                                           30%
     investors will be exposed to fluctuation in exchange rates which                                                                               24.6%
                                                                                           25%
     could enhance or diminish the total return. The annual charges                        20%                                                              16.4%
     applicable to the Fund are included in the calculation of                             15%                                              11.2%
                                                                                                                                    8.1%
     performance.                                                                          10%
                                                                                            5%                                                                      0.6%
                                                                                            0%
                                                                             Performance




                                                                                           -5%
                                                                                                          -3.6%
                                                                                           -10%                   -7.9%
                                                                                           -15%
                                                                                           -20%
                                                                                           -25%
                                                                                           -30%                            -27.8%
                                                                                           -35%
                                                                                           -40%
                                                                                           -45%
                                                                                           -50%                                                                            -45.9%
                                                                                                  1999    2000    2001     2002     2003    2004    2005    2006    2007   2008     2009

                                                                                                                                            Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 October 2000 to 31 October 2010 is -9.51%.
                                                                                                                Threadneedle Investment Funds ICVC   27




USD Performance
The annual returns of Class 1 Shares in USD of the Fund from
31 December 1999 to 31 December 2009 have been as
follows:

               45%                                                                                      41.8%
               40%
               35%
                                                        29.9%                  30.2%
               30%
               25%
                                                                19.9%
               20%    15.9%
               15%                                                                     11.6%
                                                                        8.1%
               10%
                5%
                0%
 Performance




               -5%
               -10%
                              -9.7%
               -15%                   -12.6%
                                               -14.9%
               -20%
               -25%
               -30%
               -35%
               -40%
               -45%
               -50%
                                                                                               -48.5%
               -55%
                      1999    2000    2001     2002     2003    2004    2005   2006    2007    2008     2009

                                                                Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is 48.39%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.69% (Class 1) and 1.05% (Class 2).

Portfolio turnover rate
The portfolio turnover rate from 8 March 2009 to 7 March 2010
was 110%.

Distributions
Distributions are allocated on 8 March and 8 September, and
are paid on 7 May and 7 November.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus.
28   Threadneedle Investment Funds ICVC




     Schedule 10 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 December 1999 to 31 December 2009 have been as
     UK Smaller Companies Fund                                              follows:
     Investment objective
     The investment objective is to achieve capital growth.                                 80%   74.8%
                                                                                            75%
                                                                                            70%
                                                                                            65%
     Investment policy                                                                      60%
                                                                                            55%
     The investment policy is to invest the assets of the Fund                              50%
                                                                                            45%
     primarily in the equities of smaller companies that are domiciled                      40%                                     34.9%
                                                                                                                                                                                      39.5%

                                                                                            35%                                                             30.9%
     in the UK or have significant UK operations.                                           30%                                                     23.2%
                                                                                            25%




                                                                             Performance
                                                                                                                                            19.4%
                                                                                            20%
     If the ACD considers it desirable it may further invest up to one                      15%
                                                                                            10%
     third of the total assets of the Fund in other securities (including                    5%
                                                                                             0%
     fixed interest securities, other equities and money market                             -5%
                                                                                           -10%           -5.4%
     securities). For liquidity purposes it may invest in cash and near                    -15%                   -11.9%
                                                                                                                                                                    -9.4%
                                                                                           -20%
     cash.                                                                                 -25%
                                                                                           -30%                            -25.6%
                                                                                           -35%

     Investor Profile                                                                      -40%
                                                                                                  1999    2000    2001     2002     2003    2004    2005    2006    2007
                                                                                                                                                                             -35.8%
                                                                                                                                                                             2008     2009
     The Fund may be suitable for investors with a long term                                                                                Date
     investment horizon seeking capital growth who are prepared to
     tolerate large price fluctuations. If investors are uncertain if the
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     fund is suitable for them, they are advised to contact a financial
                                                                            from 31 October 2000 to 31 October 2010 is 68.10%.
     adviser.

                                                                            Euro Performance
     Investment information
                                                                            The annual returns of Class 1 Shares in Euro of the Fund from
     The performance of Class 1 Shares of the Fund is set out
                                                                            31 December 1999 to 31 December 2009 have been as
     below. The performance figures exclude the effect of the initial
                                                                            follows:
     charge and are calculated on the basis of the price an investor
     would get on redeeming their Shares with dividend income
                                                                                           100%   98.4%
     treated in the manner applicable to an individual resident in the                      95%
                                                                                            90%
     United Kingdom for tax purposes. The assets of the Fund are                            85%
                                                                                            80%
     predominantly invested in assets denominated in GBP. Where                             75%
                                                                                            70%
     the performance data is not determined in this currency                                65%
                                                                                            60%
     investors will be exposed to fluctuation in exchange rates which                       55%
                                                                                                                                                                                      51.8%
                                                                                            50%
     could enhance or diminish the total return. The annual charges                         45%
                                                                                            40%                                                             33.5%
     applicable to the Fund are included in the calculation of                              35%
                                                                                                                                                    27.0%
                                                                                            30%                                     24.8%
     performance.
                                                                             Performance




                                                                                            25%                                             18.9%
                                                                                            20%
                                                                                            15%
                                                                                            10%
                                                                                             5%
                                                                                             0%
                                                                                            -5%
                                                                                           -10%           -6.4%
                                                                                           -15%                   -9.4%
                                                                                           -20%                                                                     -16.9%
                                                                                           -25%
                                                                                           -30%
                                                                                           -35%                            -30.1%
                                                                                           -40%
                                                                                           -45%
                                                                                           -50%
                                                                                           -55%                                                                              -51.2%
                                                                                                  1999    2000     2001     2002    2003    2004    2005    2006    2007      2008    2009

                                                                                                                                            Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 October 2000to 31 October 2010 is 12.87%.

                                                                            USD Performance
                                                                            The annual returns of Class 1 Shares in USD of the Fund from
                                                                            31 December 1999 to 31 December 2009 have been as
                                                                            follows:
                                                                                                                                                        Threadneedle Investment Funds ICVC   29




                75%   69.4%
                                                                                                                  Investing in smaller companies
                70%
                65%
                                                                                                                  The Fund invests in the securities of smaller companies.
                60%                                                                                       56.7%   Accordingly, the Fund may fluctuate in value more than other
                55%                                      50.0%                   49.2%
                50%                                                                                               Funds because of the greater volatility of share prices of
                45%
                                                                                                                  smaller companies.
                40%
                35%
                                                                 28.1%
                30%
                25%
                20%
                15%                                                      10.2%
 Performance




                10%
                 5%
                 0%
                -5%
               -10%
                                                                                         -7.8%
               -15%           -12.4%
                                       -14.1%
               -20%
                                                -17.7%
               -25%
               -30%
               -35%
               -40%
               -45%
               -50%
               -55%
                                                                                                 -53.6%
               -60%
                      1999    2000     2001     2002     2003    2004    2005    2006    2007    2008     2009

                                                                 Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is 85.08%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.71% (Class 1) and 1.07% (Class 2).

Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to
7 March 2010 was 101%.

Distributions
Distributions are allocated on 8 March and 8 September, and
are paid on 7 May and 7 November.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund.
30   Threadneedle Investment Funds ICVC




     Schedule 11 to Simplified Prospectus for Threadneedle                 GBP Performance
     Investment Funds ICVC, dated December 2010                            The annual returns of Class 1 Shares in GBP of the Fund from
                                                                           31 December 1999 to 31 December 2009 have been as
     UK Select Fund                                                        follows:
     Investment objective
     The investment objective is to achieve above average capital                         30%    28.1%

     growth.                                                                              25%                                                                                      23.3%

                                                                                                                                                          18.7%
                                                                                          20%                                                     17.7%

     Investment policy                                                                    15%                                                                     12.6%
                                                                                                                                   10.8%
     The investment policy is to invest the assets of the Fund for                        10%                                              7.0%
     growth, through a concentrated, actively managed portfolio.                           5%
     The select investment approach means that the ACD has the                             0%




                                                                            Performance
     flexibility to take significant stock and sector positions which                     -5%            -3.6%
     may lead to increased levels of volatility. The portfolio will
                                                                                          -10%
     consist primarily of equities of companies domiciled in the UK,                                             -11.6%
                                                                                          -15%
     or which have significant UK operations. If the ACD considers it
                                                                                          -20%
     desirable, it may further invest in other securities (including
                                                                                          -25%                            -21.8%
     fixed interest securities, other equities and money market
                                                                                          -30%
     securities).                                                                                                                                                         -29.6%
                                                                                          -35%
                                                                                                 1999    2000    2001     2002     2003    2004   2005    2006    2007    2008     2009
     Investor Profile                                                                                                                      Date
     The Fund may be suitable for investors with a long term
     investment horizon seeking above average capital growth who
                                                                           Cumulative performance of Class 1 Shares in GBP of the Fund
     are prepared to tolerate large price fluctuations. If investors are
                                                                           from 31 October 2000to 31 October 2010 is 18.65%.
     uncertain if the fund is suitable for them, they are advised to
     contact a financial adviser.
                                                                           Euro Performance
                                                                           The annual returns of Class 1 Shares in Euro of the Fund from
     Investment information                                                31 December 1999 to 31 December 2009 have been as
     The performance of Class 1 Shares of the Fund is set out
                                                                           follows:
     below. The performance figures exclude the effect of the initial
     charge and are calculated on the basisof the price an investor
                                                                                          50%
     would get on redeeming their Shares with dividend income                             45%
                                                                                                 45.4%


     treated in the manner applicable to an individual resident in the                    40%
                                                                                                                                                                                   34.1%
     United Kingdom for tax purposes. The assets of the Fund are                          35%
                                                                                          30%
     predominantly invested in assets denominated in GBP. Where
                                                                                          25%                                                     21.3% 21.1%
     the performance data is not determined in this currency                              20%
     investors will be exposed to fluctuation in exchange rates which                     15%

     could enhance or diminish the total return. The annual charges                       10%                                              6.5%
                                                                                                                                                                  3.3%
                                                                                           5%                                      2.5%
     applicable to the Fund are included in the calculation of
                                                                            Performance




                                                                                           0%
     performance.                                                                         -5%
                                                                                                         -4.6%
                                                                                          -10%
                                                                                                                 -9.2%
                                                                                          -15%
                                                                                          -20%
                                                                                          -25%
                                                                                          -30%                            -26.7%
                                                                                          -35%
                                                                                          -40%
                                                                                          -45%
                                                                                          -50%                                                                            -46.5%
                                                                                                 1999    2000    2001     2002     2003    2004   2005    2006    2007     2008    2009

                                                                                                                                           Date



                                                                           Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                           from 31 October 2000 to 31 October 2010 is -20.33%.
                                                                                                                                                        Threadneedle Investment Funds ICVC   31




USD Performance                                                                                                positions taken in a relatively small number of stocks). If one or
The annual returns of Class 1 Shares in USD of the Fund from                                                   more of those investments declines or is otherwise adversely
31 December 1999 to 31 December 2009 have been as                                                              affected, it may have a more pronounced effect on the Fund’s
follows:                                                                                                       value than if a larger number of investments were held or if the
                                                                                                               Fund had fewer individual positions.
               40%                                                                                     38.4%
                                                                              35.4%
               35%                                                                                             Accordingly they may carry a higher degree of risk and net
               30%
                      24.1%
                                                                                                               asset value volatility than a Fund which invests in a broad
                                                       23.2%
               25%
                                                                                                               range of companies or does not take large positions in a
               20%
                                                               14.7%                  14.5%                    relatively small number of stocks.
               15%
               10%
                                                                       5.3%
                5%
                0%
               -5%
 Performance




               -10%
                              -10.6%
               -15%
                                       -13.9% -13.6%
               -20%
               -25%
               -30%
               -35%
               -40%
               -45%
               -50%
                                                                                              -49.1%
               -55%
                      1999    2000     2001   2002     2003    2004    2005   2006    2007    2008     2009

                                                               Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000to 31 October 2010 is 30.64%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.70% (Class 1) and 1.06% (Class 2).

Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to
7 March 2010 was 334%.

Distributions
Distributions are allocated on 8 March and 8 September, and
are paid on 7 May and 7 November.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:

Concentrated portfolios
Investors should note that this Fund has a concentrated
portfolio (holds a limited number of investments and/or large
32   Threadneedle Investment Funds ICVC




     Schedule 12 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 July 2002 to 31 December 2009 have been as follows:
     UK Institutional Fund
     Investment objective                                                                  35%

     The investment objective is to achieve long term capital growth.                      30%
                                                                                                                                                                               28.7%


                                                                                           25%
                                                                                                                                              20.6%
     Investment policy                                                                     20%
                                                                                                                              15.8%
                                                                                                                                                      14.7%
     The investment policy is to invest in a wide spread of primarily                      15%
                                                                                                                                      10.7%
     UK companies, which are considered to have good potential for                         10%                                                                8.5%

     capital growth. Investment will tend to focus on large                                 5%
     companies with sound long-term prospects.


                                                                             Performance
                                                                                            0%

                                                                                            -5%
     Investor Profile                                                                      -10%
     The Fund may be suitable for investors with a long term
                                                                                           -15%
     investment horizon seeking capital growth who are prepared to
                                                                                           -20%
     tolerate large price fluctuations. If investors are uncertain if the
                                                                                           -25%
     fund is suitable for them, they are advised to contact a financial
                                                                                           -30%
     adviser.                                                                                                                                                         -30.1%
                                                                                           -35%
                                                                                                  1999   2000   2001   2002   2003    2004    2005    2006    2007    2008     2009
     Investment information                                                                                                           Date
     The performance of Class 1 Shares of the Fund is set out
     below. The performance figures exclude the effect of the initial
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     charge and are calculated on the basisof the price an investor
                                                                            from 31 July 2002 to 31 October 2010 is 77.76%
     would get on redeeming their Shares with dividend income
     treated in the manner applicable to an individual resident in the
                                                                            Euro Performance
     United Kingdom for tax purposes. The assets of the Fund are
                                                                            The annual returns of Class 1 Shares in Euro of the Fund from
     predominantly invested in assets denominated in GBP. Where
                                                                            31 July 2002 to 31 December 2009 have been as follows:
     the performance data is not determined in this currency
     investors will be exposed to fluctuation in exchange rates which
                                                                                           45%
     could enhance or diminish the total return. The annual charges                        40%
                                                                                                                                                                               40.1%


     applicable to the Fund are included in the calculation of                             35%

     performance.                                                                          30%
                                                                                                                                              24.3%
                                                                                           25%
                                                                                           20%                                                        16.9%

                                                                                           15%
                                                                                                                                      10.2%
                                                                                           10%                                7.1%

                                                                                            5%
                                                                                            0%
                                                                             Performance




                                                                                                                                                              -0.5%
                                                                                           -5%
                                                                                           -10%
                                                                                           -15%
                                                                                           -20%
                                                                                           -25%
                                                                                           -30%
                                                                                           -35%
                                                                                           -40%
                                                                                           -45%
                                                                                           -50%                                                                       -46.9%
                                                                                                  1999   2000   2001   2002   2003    2004    2005    2006    2007    2008     2009

                                                                                                                                      Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 July 2002 1999 to 31 October 2010 is 28.33%.
                                                                                                          Threadneedle Investment Funds ICVC   33




USD Performance
The annual returns of Class 1 Shares in USD of the Fund from
31 July 2002 to 31 December 2009 have been as follows:

               50%
                                                                                                  44.6%
               45%
               40%
               35%                                                       30.7%
                                                  28.8%
               30%
               25%
                                                          18.8%
               20%
               15%
                                                                                 10.3%
               10%                                                7.8%

                5%
                0%
 Performance




               -5%
               -10%
               -15%
               -20%
               -25%
               -30%
               -35%
               -40%
               -45%
               -50%
                                                                                         -49.5%
               -55%
                      1999   2000   2001   2002   2003    2004    2005   2006    2007    2008     2009

                                                          Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 July 2002 to 31 October 2010 is 81.93%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
0.75% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.68% (Class 1) and 0.79% (Class 2).

Portfolio turnover rate
The portfolio turnover rate from 8 March 2009 to 7 March 2010
was 45%.

Distributions
Distributions are allocated on 8 March and 8 September, and
are paid on 7 May and 7 November.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus.
34   Threadneedle Investment Funds ICVC




     Schedule 13 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 2 Shares in GBP of the Fund from
                                                                            31 December 1999 to 31 December 2009 have been as
     UK Overseas Earnings Fund                                              follows:
     Investment objective
     The investment objective is to achieve capital growth.                                30%    28.7%


                                                                                           25%                                                     22.2%                            22.1%
     Investment policy                                                                     20%
                                                                                                                                    19.9%

     The investment policy is to invest primarily in the shares of UK                                                                                      14.0%
                                                                                           15%
     companies deriving more than half their earnings from                                                                                  9.6%
                                                                                                                                                                   8.6%
     overseas.                                                                             10%

                                                                                            5%

     Investor Profile
                                                                             Performance
                                                                                            0%
     The Fund may be suitable for investors with a long term
                                                                                           -5%
     investment horizon seeking capital growth who are prepared to
                                                                                           -10%           -7.3%
     tolerate large price fluctuations. If investors are uncertain if the
     fund is suitable for them, they are advised to contact a financial                    -15%                   -13.5%

     adviser.                                                                              -20%

                                                                                           -25%
     Investment information                                                                -30%
                                                                                                                           -24.6%
                                                                                                                                                                           -26.3%

     The performance of Class 2 Shares of the Fund is set out                                     1999    2000    2001     2002     2003    2004   2005    2006    2007     2008    2009

     below. The performance figures exclude the effect of the initial                                                                       Date
     charge and are calculated on the basisof the price an investor
     would get on redeeming their Shares with dividend income               Cumulative performance of Class 2 Shares of the Fund from 31
     treated in the manner applicable to an individual resident in the      October 2000 to 31 October 2010 is 25.33%.
     United Kingdom for tax purposes. The assets of the Fund are
     predominantly invested in assets denominated in GBP. Where             Euro Performance
     the performance data is not determined in this currency                The annual returns of Class 2 Shares in Euro of the Fund from
     investors will be exposed to fluctuation in exchange rates which       31 December 1999 to 31 December 2009 have been as
     could enhance or diminish the total return. The annual charges         follows:
     applicable to the Fund are included in the calculation of
     performance.                                                                          50%    46.0%
                                                                                           45%
                                                                                           40%
                                                                                           35%                                                                                      32.8%

                                                                                           30%                                                     26.0%
                                                                                           25%
                                                                                           20%                                                             16.3%
                                                                                           15%                                      10.9%
                                                                                                                                            9.1%
                                                                                           10%
                                                                                            5%
                                                                             Performance




                                                                                            0%
                                                                                                                                                                   -0.4%
                                                                                           -5%
                                                                                           -10%
                                                                                                          -8.3%
                                                                                           -15%                   -11.1%

                                                                                           -20%
                                                                                           -25%
                                                                                           -30%
                                                                                                                           -29.2%
                                                                                           -35%
                                                                                           -40%
                                                                                           -45%
                                                                                                                                                                           -44.0%
                                                                                           -50%
                                                                                                  1999    2000    2001     2002     2003    2004   2005    2006    2007    2008     2009

                                                                                                                                            Date



                                                                            Cumulative performance of Class 2 Shares in Euro of the Fund
                                                                            from 31 October 2000 to 31 October 2010 is -15.85%.
                                                                                                               Threadneedle Investment Funds ICVC   35




USD Performance
The annual returns of Class 2 Shares in USD of the Fund from
31 December 1999 to 31 December 2009 have been as
follows:

               40%                                                                                     37.1%
                                                       33.3%
               35%
                                                                              30.0%
               30%
                      24.6%
               25%

               20%                                             17.6%

               15%
                                                                                      10.4%
                                                                       9.3%
               10%

                5%

                0%
 Performance




               -5%

               -10%

               -15%
                              -14.1%
                                       -15.7% -16.5%
               -20%

               -25%

               -30%

               -35%

               -40%

               -45%

               -50%                                                                           -46.8%
                      1999    2000     2001   2002     2003    2004    2005   2006    2007    2008     2009

                                                               Date



Cumulative performance of Class 2 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is 37.99%.

Annual management charge
An annual management charge of 1.5% (Class 2 Shares)
applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.56% (Class 2).

Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to
7 March 2010 was 167%.

Distributions
Distributions are allocated on 8 March and 8 September, and
are paid on 7 May and 7 November.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus.
36   Threadneedle Investment Funds ICVC




     Schedule 14 to Simplified Prospectus for Threadneedle                GBP Performance
     Investment Funds ICVC, dated December 2010                           The annual returns of Class 1 Shares in GBP of the Fund from
                                                                          31 December 1999 to 31 December 2009 have been as
     Dollar Bond Fund                                                     follows:
     Investment objective
     The investment objective is to achieve total return primarily by                    30%

     way of income with some capital growth.                                                                                                                              24.9%
                                                                                         25%


     Investment policy                                                                   20%
                                                                                                        20.2%


     The investment policy is to invest the assets of the Fund
     primarily in US Government, Securities denominated in Dollar                        15%                                                     14.0%

     and Dollar denominated securities issued by Governments,
                                                                                         10%
     Government Agencies, Corporations and Supranational                                                        8.2%



                                                                           Performance
     Borrowers.
                                                                                          5%

                                                                                                                                                                                  1.0%
     If the ACD considers it desirable it may further invest up to one                    0%

     third of the assets of the Fund in other securities (including                                                     -1.2%
                                                                                                                                                                  -0.4%
                                                                                                -2.4%
     other fixed interest securities and money market securities).                       -5%

                                                                                                                                         -6.1%
     For liquidity purposes it may invest in cash and near cash.                                                                -6.8%
                                                                                         -10%
                                                                                                                                                         -10.7%
     Investor Profile                                                                    -15%
     The Fund may be suitable for investors with a medium term                                  1999    2000    2001    2002    2003     2004    2005    2006     2007    2008    2009

     investment horizon seeking a total return primarily by way of                                                                       Date

     income with some capital growth who are prepared to tolerate
     moderate price fluctuations. If investors are uncertain if the       Cumulative performance of Class 1 Shares in GBP of the Fund
     fund is suitable for them, they are advised to contact a financial   from 31 October 2000 to 31 August 2010 is 32.88%.
     adviser.
                                                                          Euro Performance
     Investment information                                               The annual returns of Class 1 Shares in Euro of the Fund from
     The performance of Class 1 Shares of the Fund is set out             31 December 1999 to 31 December 2009 have been as
     below. The performance figures exclude the effect of the initial     follows:
     charge and are calculated on the basis of the price an investor
     would get on redeeming their Shares with dividend income                            25%

     treated in the manner applicable to an individual resident in the
     United Kingdom for tax purposes. The assets of the Fund are                         20%            19.0%
                                                                                                                                                 17.5%
     predominantly invested in assets denominated in USD. Where
     the performance data is not determined in this currency                             15%
                                                                                                                11.2%
     investors will be exposed to fluctuation in exchange rates which                           10.8%
                                                                                                                                                                                  9.9%
                                                                                         10%
     could enhance or diminish the total return. The annual charges
     applicable to the Fund are included in the calculation of
                                                                                          5%
     performance.
                                                                           Performance




                                                                                          0%



                                                                                          -5%
                                                                                                                                                                          -5.1%
                                                                                                                                         -6.5%
                                                                                                                        -7.3%
                                                                                         -10%                                                             -9.0%   -8.7%



                                                                                         -15%                                   -13.8%



                                                                                         -20%
                                                                                                1999    2000    2001    2002    2003      2004   2005     2006    2007    2008    2009

                                                                                                                                         Date



                                                                          Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                          from 31 October 2000 to 31 October 2010 is -10.78%.
                                                                                                                                                Threadneedle Investment Funds ICVC   37




USD Performance                                                                                        1. Risk to capital growth
The annual returns of Class 1 Shares in USD of the Fund from                                           The investment objective of the Fund treats the generation of
31 December 1999 to 31 December 2009 have been as                                                      income as a higher (or equivalent) priority than capital growth.
follows:                                                                                               Accordingly, fees and expenses charged in respect of the Fund
                                                                                                       may be charged against capital (instead of against income) in
               15%                                                                                     order to manage the level of income paid and/or available to
                                                                                               13.4%
                                                                                                       shareholders. This may result in capital erosion or may
                              11.4%
                                                                                                       constrain capital growth.
               10%                           9.2%


                                                                                                       2. Fixed income Fund risk
                                      5.5%                                                             The interest rate on corporate bonds and most government
                5%
                                                    3.6%                                               bonds will not increase in line with inflation. Thus, over time,
                                                                  2.0%   1.8%                          the real value of investor’s income could fall.
                                                                                1.3%
                                                           0.8%
 Performance




                0%




               -5%
                      -5.4%




               -10%
                                                                                       -9.8%




               -15%
                      1999    2000    2001   2002   2003   2004   2005   2006   2007   2008    2009

                                                           Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is 46.30%.

Annual management charge
An annual management charge of 1.0% (Class 1 Shares)
applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.23% (Class 1).

Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to
7 March 2010 was 262%.

Distributions
Distributions are allocated on 8 March and 8 September, and
are paid on 7 May and 7 November.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:
38   Threadneedle Investment Funds ICVC




     Schedule 15 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 December 1999 to 31 December 2009 have been as
     American Fund                                                          follows:
     Investment objective
     The investment objective is to achieve capital growth.                                55%
                                                                                                  49.3%
                                                                                           50%

     Investment policy                                                                     45%

                                                                                           40%
     The investment policy is to invest the assets of the Fund
                                                                                           35%
     primarily in the stock of medium to large companies domiciled                         30%
     in North America or which have significant North American                             25%                                                     21.1%
                                                                                                                                                                                  22.7%

     operations. If the ACD considers it desirable, it may further                         20%

     invest in other securities (including fixed interest securities,                      15%            11.1%                     11.4%
                                                                                                                                                                  9.6%


                                                                             Performance
                                                                                           10%
     other equities and money market securities).
                                                                                            5%                                              2.4%
                                                                                                                                                           0.5%
                                                                                            0%
     Investor Profile                                                                      -5%
     The Fund may be suitable for investors with a long term                               -10%
     investment horizon seeking capital growth who are prepared to                         -15%

     tolerate large price fluctuations. If investors are uncertain if the                  -20%                   -16.5%                                                 -17.2%

     fund is suitable for them, they are advised to contact a financial                    -25%

                                                                                           -30%
     adviser.
                                                                                           -35%                            -32.6%
                                                                                                  1999    2000    2001      2002 2003       2004   2005    2006   2007   2008     2009

     Investment information                                                                                                                 Date
     The performance of Class 1 Shares of the Fund is set out
     below. The performance figures exclude the effect of the initial
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     charge and are calculated on the of the price an investor would
                                                                            from 31 October 2000 to 31 August 2010 is -14.19%.
     get on redeeming their Shares with dividend income treated in
     the manner applicable to an individual resident in the United          Euro Performance
     Kingdom for tax purposes. The assets of the Fund are                   The annual returns of Class 1 Shares in Euro of the Fund from
     predominantly invested in assets denominated in USD. Where             31 December 1999 to 31 December 2009 have been as
     the performance data is not determined in this currency                follows:
     investors will be exposed to fluctuation in exchange rates which
     could enhance or diminish the total return. The annual charges
                                                                                           75%
                                                                                                  69.5%
     applicable to the Fund are included in the calculation of                             70%

     performance.                                                                          65%
                                                                                           60%
                                                                                           55%
                                                                                           50%
                                                                                           45%
                                                                                           40%
                                                                                                                                                                                  33.5%
                                                                                           35%
                                                                                           30%                                                     24.7%
                                                                                           25%
                                                                                           20%
                                                                             Performance




                                                                                           15%            10.0%
                                                                                           10%
                                                                                                                                    3.0%    1.9%           2.5%
                                                                                            5%                                                                    0.5%
                                                                                            0%
                                                                                           -5%
                                                                                           -10%
                                                                                           -15%
                                                                                                                  -14.2%
                                                                                           -20%
                                                                                           -25%
                                                                                           -30%
                                                                                           -35%
                                                                                           -40%                            -36.8%                                        -37.1%
                                                                                           -45%
                                                                                                  1999    2000    2001     2002     2003    2004   2005    2006   2007   2008     2009

                                                                                                                                            Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 October 2000 to 31 October 2010 is -42.38%.
                                                                                                              Threadneedle Investment Funds ICVC   39




USD Performance
The annual returns of Class 1 Shares in USD of the Fund from
31 December 1999 to 31 December 2009 have been as
follows:

               50%
                      44.7%
               45%

               40%                                                                                    37.8%

               35%

               30%
                                                       23.9%
               25%

               20%
                                                                             14.6%
               15%                                                                   11.4%
                                                               9.8%
               10%                                                    8.2%


                5%            3.0%
 Performance




                0%

               -5%

               -10%

               -15%

               -20%
                                     -18.7%

               -25%
                                              -25.5%
               -30%

               -35%

               -40%
                                                                                             -40.2%
               -45%
                      1999    2000   2001     2002     2003    2004   2005   2006    2007    2008     2009

                                                               Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is -5.52%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.68% (Class 1) and 1.04% (Class 2).

Portfolio turnover rate
The portfolio turnover rate from 8 March 2009 to 7 March 2010
was 184%.

Distributions
Distributions are allocated on 8 March, and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus.
40   Threadneedle Investment Funds ICVC




     Schedule 16 to Simplified Prospectus for Threadneedle                 GBP Performance
     Investment Funds ICVC, dated December 2010                            The annual returns of Class 1 Shares in GBP of the Fund from
                                                                           31 December 1999 to 31 December 2009 have been as
     American Select Fund                                                  follows:
     Investment objective
     The investment objective is to achieve above average capital                         100%
                                                                                                 91.5%
     growth.                                                                              90%

                                                                                          80%

     Investment policy                                                                    70%
     The investment policy is to invest the assets of the Fund in
                                                                                          60%
     companies domiciled in North America or which have
                                                                                          50%
     significant North American operations. These include smaller
                                                                                          40%
     and emerging growth companies, those with potential for

                                                                            Performance
                                                                                          30%                                                      25.5%
     merger or takeover, those with new management recovery                                                                                                                         23.1%

     situations and exploration companies. There will be no                               20%
                                                                                                                                    11.4%
                                                                                                                                                                   14.4%

     particular specialisation. The select investment approach                            10%                                               3.8%

     means that the ACD has the flexibility to take significant stock                      0%
                                                                                                          -1.4%
     and sector positions which may lead to increased levels of                           -10%
                                                                                                                                                           -3.3%

     volatility.                                                                          -20%
                                                                                                                                                                           -19.2%
                                                                                                                  -21.6%
                                                                                          -30%
     Investor Profile                                                                                                      -31.9%
                                                                                          -40%
     The Fund may be suitable for investors with a long term                                     1999     2000    2001     2002     2003    2004   2005    2006    2007     2008    2009

     investment horizon seeking above average capital growth who                                                                            Date
     are prepared to tolerate large price fluctuations. If investors are
     uncertain if the fund is suitable for them, they are advised to
                                                                           Cumulative performance of Class 1 Shares in GBP of the Fund
     contact a financial adviser.
                                                                           from 31 October 2000 to 31 August 2010 is -19.26%.

     Investment information                                                Euro Performance
     The performance of Class 1 Shares of the Fund is set out              The annual returns of Class 1 Shares in Euro of the Fund from
     below. The performance figures exclude the effect of the initial      31 December 1999 to 31 December 2009 have been as
     charge and are calculated on the basis of the price an investor       follows:
     would get on redeeming their Shares with dividend income
     treated in the manner applicable to an individual resident in the                    130%
     United Kingdom for tax purposes. The assets of the Fund are                          120%
                                                                                                 117.3%

     predominantly invested in assets denominated in USD. Where                           110%

     the performance data is not determined in this currency                              100%

     investors will be exposed to fluctuation in exchange rates which                     90%

                                                                                          80%
     could enhance or diminish the total return. The annual charges
                                                                                          70%
     applicable to the Fund are included in the calculation of
                                                                                          60%
     performance.                                                                         50%
                                                                            Performance




                                                                                          40%                                                                                       34.0%
                                                                                                                                                   29.4%
                                                                                          30%

                                                                                          20%

                                                                                          10%                                       3.1%    3.3%                   5.0%

                                                                                           0%
                                                                                                          -2.5%                                            -1.4%
                                                                                          -10%

                                                                                          -20%
                                                                                                                  -19.4%
                                                                                          -30%

                                                                                          -40%                             -36.1%
                                                                                                                                                                           -38.6%
                                                                                          -50%
                                                                                                 1999     2000    2001     2002     2003    2004   2005    2006    2007    2008     2009

                                                                                                                                            Date



                                                                           Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                           from 31 October 2000 to 31 October 2010 is -45.79%.
                                                                                                                                                    Threadneedle Investment Funds ICVC   41




USD Performance                                                                                             value than if a larger number of investments were held or if the
The annual returns of Class 1 Shares in USD of the Fund from                                                Fund had fewer individual positions.
31 December 1999 to 31 December 2009 have been as
follows:                                                                                                    Accordingly they may carry a higher degree of risk and net
                                                                                                            asset value volatility than a Fund which invests in a broad
               100%                                                                                         range of companies or does not take large positions in a
               90%    85.5%                                                                                 relatively small number of stocks.
               80%

               70%

               60%

               50%
                                                                                                    38.3%
               40%

               30%
 Performance




                                                      23.9%

               20%                                                                 16.4%
                                                              11.3% 12.3% 10.3%
               10%

                0%

               -10%
                              -8.6%
               -20%

               -30%                   -23.6% -24.7%

               -40%
                                                                                           -41.6%
               -50%
                      1999    2000    2001   2002     2003    2004   2005   2006   2007    2008     2009

                                                              Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is -11.11%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.68% (Class 1) and 1.04% (Class 2).

Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to
7 March 2010 was 274%.

Distributions
Distributions are allocated on 8 March, and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risk that is associated with investing in
the Fund:

Concentrated portfolios
Investors should note that this Fund has a concentrated
portfolio (holds a limited number of investments and/or large
positions taken in a relatively small number of stocks). If one or
more of those investments declines or is otherwise adversely
affected, it may have a more pronounced effect on the Fund’s
42   Threadneedle Investment Funds ICVC




     Schedule 17 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 December 2009 to 31 December 2009 have been as
     American Smaller Companies Fund (US)                                   follows:
     Investment objective
     The investment objective is to achieve capital growth.                                     120%
                                                                                                       106.6%
                                                                                                110%

     Investment policy                                                                          100%

                                                                                                90%
     The investment policy is to invest the assets of the Fund
                                                                                                80%
     primarily in the equities of smaller companies that are domiciled
                                                                                                70%
     in the US or have significant US operations.                                               60%

                                                                                                50%
                                                                                                                                                                                           40.0%
     If the ACD considers it desirable it may further invest up to one                          40%



                                                                                 Performance
     third of the total assets of the Fund in other securities (including                       30%                                        22.9%           21.5%
     fixed interest securities, other equities and money market                                 20%
                                                                                                                                                                           9.5%
                                                                                                                                                    5.4%
     securities). For liquidity purposes it may invest in cash and near                         10%

                                                                                                 0%
     cash.
                                                                                                                                                                   -2.0%
                                                                                                -10%             -6.0%
                                                                                                -20%
     Investor Profile                                                                           -30%
                                                                                                                                                                                  -18.9%

     The Fund may be suitable for investors with a long term                                    -40%
                                                                                                                         -28.7%
                                                                                                                                  -31.3%

     investment horizon seeking capital growth who are prepared to                              -50%
     tolerate large price fluctuations. If investors are uncertain if the                               1999     2000     2001     2002    2003     2004   2005    2006    2007   2008     2009

     fund is suitable for them, they are advised to contact a financial                                                                            Date

     adviser.
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     Investment information                                                 from 31 October 2000 to 31 October 2010 is -6.54.
     The performance of Class 1 Shares of the Fund is set out
     below. The performance figures exclude the effect of the initial       Euro Performance
     charge and are calculated on the basis of the price an investor        The annual returns of Class 1 Shares in Euro of the Fund from
     would get on redeeming their Shares with dividend income               31 December 1999 to 31 December 2009 have been as
     treated in the manner applicable to an individual resident in the      follows:
     United Kingdom for tax purposes. The assets of the Fund are
     predominantly invested in assets denominated in USD. Where                                150%
     the performance data is not determined in this currency                                   140% 134.4%
                                                                                               130%
     investors will be exposed to fluctuation in exchange rates which
                                                                                               120%
     could enhance or diminish the total return. The annual charges                            110%
     applicable to the Fund are included in the calculation of                                 100%
                                                                                               90%
     performance.
                                                                                               80%
                                                                                               70%
                                                                                               60%                                                                                         52.3%
                                                                             Performance




                                                                                               50%
                                                                                               40%
                                                                                               30%                                                         25.2%

                                                                                               20%                                         13.7%

                                                                                               10%                                                 4.9%
                                                                                                                                                                   -0.1%   0.5%
                                                                                                0%
                                                                                               -10%
                                                                                                                -7.0%
                                                                                               -20%
                                                                                               -30%
                                                                                                                         -26.8%
                                                                                               -40%                               -35.6%
                                                                                                                                                                                  -38.4%
                                                                                               -50%
                                                                                                       1999     2000     2001     2002     2003    2004    2005    2006    2007   2008     2009

                                                                                                                                                   Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 October 2000 to 31 October 2010 is -37.25%.
                                                                                                                Threadneedle Investment Funds ICVC   43




USD Performance
The annual returns of Class 1 Shares in USD of the Fund from
31 December 1999 to 31 December 2009 have been as
follows:

               110%
                      100.1%
               100%

               90%

               80%

               70%
                                                                                                        57.2%
               60%

               50%
                                                          36.7%
               40%
 Performance




               30%

               20%                                                13.1%          11.7% 11.4%
                                                                          8.6%
               10%

                0%

               -10%

               -20%            -12.9%

               -30%                              -24.1%
                                        -30.5%
               -40%
                                                                                               -41.4%
               -50%
                      1999     2000     2001     2002     2003    2004    2005   2006   2007   2008     2009

                                                                  Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is 2.90%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.70% (Class 1) and 1.07% (Class 2).

Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to
7 March 2010 was 212%.

Distributions
Distributions are allocated on 8 March, and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risk that is associated with investing in
the Fund:

Investing in smaller companies
The Fund invests in the securities of smaller companies.
Accordingly, the Fund may fluctuate in value more than other
Funds because of the greater volatility of share prices of
smaller companies.
44   Threadneedle Investment Funds ICVC




     Schedule 18 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010.                            The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 December 1999 to 31 December 2009 have been as
     Japan Fund                                                             follows:
     Investment objective
     The investment objective is to achieve capital growth.                                 140%
                                                                                            130% 121.6%

     Investment policy                                                                      120%
                                                                                            110%
     The investment policy is to invest the assets of the Fund                              100%
     primarily in the equities of companies domiciled in Japan or                           90%

     with significant Japanese operations.                                                  80%
                                                                                            70%
                                                                                            60%
     If the ACD considers it desirable it may further invest up to one                      50%



                                                                              Performance
     third of the total assets of the Fund in other securities (including                   40%
                                                                                                                                                    37.2%


     fixed interest securities, warrants and convertible bonds, other                       30%                                      21.0%
                                                                                            20%
     equities and money market securities). For liquidity purposes it
                                                                                            10%                                              3.0%
     may invest in cash and near cash.                                                       0%
                                                                                                                                                                            0.4%


                                                                                            -10%
     Investor Profile                                                                       -20%
                                                                                                                            -20.1%
                                                                                                                                                            -15.9% -16.8%
                                                                                                                                                                                     -9.7%


     The Fund may be suitable for investors with a long term                                -30%
                                                                                                                   -28.4%
                                                                                            -40%          -32.8%
     investment horizon seeking capital growth who are prepared to
                                                                                            -50%
     tolerate large price fluctuations. If investors are uncertain if the                          1999   2000     2001     2002     2003    2004   2005    2006     2007   2008     2009

     fund is suitable for them, they are advised to contact a financial                                                                      Date
     adviser.
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     Investment information                                                 from 31 October 2000 to 31 October 2010 is -45.86%.
     The performance of Class 1 Shares of the Fund is set out
     below. The performance figures exclude the effect of the initial       Euro Performance
     charge and are calculated on the basis of the price an investor        The annual returns of Class 1 Shares in Euro of the Fund from
     would get on redeeming their Shares with dividend income               31 December 1999 to 31 December 2009 have been as
     treated in the manner applicable to an individual resident in the      follows:
     United Kingdom for tax purposes. The assets of the Fund are
     predominantly invested in assets denominated in JPY. Where
                                                                                            160% 151.5%
     the performance data is not determined in this currency                                150%
     investors will be exposed to fluctuation in exchange rates which                       140%
                                                                                            130%
     could enhance or diminish the total return. The annual charges
                                                                                            120%
     applicable to the Fund are included in the calculation of                              110%
     performance.                                                                           100%
                                                                                            90%
                                                                                            80%
                                                                                            70%
                                                                              Performance




                                                                                            60%
                                                                                            50%                                                     41.4%
                                                                                            40%
                                                                                            30%
                                                                                            20%                                      12.0%
                                                                                            10%                                              2.5%
                                                                                             0%
                                                                                            -10%                                                                                     -1.7%

                                                                                            -20%                                                            -14.3%
                                                                                            -30%                                                                     -23.7% -23.7%
                                                                                                                   -26.4% -25.0%
                                                                                            -40%          -33.5%
                                                                                                   1999   2000     2001     2002     2003    2004   2005    2006     2007   2008     2009

                                                                                                                                             Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 October 2000 to 31 October 2010 is -63.65%.
                                                                                                                  Threadneedle Investment Funds ICVC   45




USD Performance
The annual returns of Class 1 Shares in USD of the Fund from
31 December 1999 to 31 December 2009 have been as
follows:

                130%
                120% 114.7%
                110%
                100%
                90%
                80%
                70%
                60%
                50%
  Performance




                40%                                      34.6%

                30%                                                      22.7%
                20%
                                                                 10.4%
                10%                                                                                        1.4%
                 0%
                -10%                                                             -4.2%
                                                -11.6%
                -20%                                                                     -15.4%
                -30%
                                                                                                  -27.5%
                                       -30.2%
                -40%
                              -37.7%
                -50%
                       1999   2000     2001     2002     2003    2004    2005    2006    2007     2008     2009

                                                                 Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is -40.39%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.71% (Class 1) and 1.06% (Class 2).

Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to
7 March 2010 was 323%.

Distributions
Distributions are allocated on 8 March, and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus.
46   Threadneedle Investment Funds ICVC




     Schedule 19 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 December 1999 to 31 December 2009 have been as
     Japan Smaller Companies Fund                                           follows:
     Investment objective
     The investment objective is to achieve capital growth.                                 220% 214.1%
                                                                                            210%
                                                                                            200%
     Investment policy                                                                      190%
                                                                                            180%
     The investment policy is to invest the assets of the Fund                              170%
                                                                                            160%
     primarily in the equities of companies domiciled in Japan or                           150%
                                                                                            140%
     with significant Japanese operations.                                                  130%
                                                                                            120%
                                                                                            110%
     If the ACD considers it desirable it may further invest up to one                      100%




                                                                              Performance
                                                                                             90%
     third of the total assets of the Fund in other securities (including                    80%
                                                                                             70%
     fixed interest securities, warrants and convertible bonds, other                        60%
                                                                                                                                        46.1%
                                                                                             50%
     equities and money market securities). For liquidity purposes it                        40%
     may invest in cash and near cash.                                                       30%                             19.9%
                                                                                             20%                                   7.7%
                                                                                             10%                                                            1.7%
                                                                                              0%
     Investor Profile                                                                       -10%                                                                                     -2.0%
                                                                                            -20%
     The Fund may be suitable for investors with a long term                                                                                         -19.7%
                                                                                            -30%               -23.4% -20.1%
     investment horizon seeking capital growth who are prepared to                          -40%                                              -32.5%
                                                                                            -50%        -42.5%
     tolerate large price fluctuations. If investors are uncertain if the                         1999 2000 2001 2002 2003 2004 2005 2006 2007 2008                                  2009

     fund is suitable for them, they are advised to contact a financial                                                                      Date
     adviser.
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     Investment information                                                 from 31 October 2000 to 31 October 2010 is -47.17%.
     The performance of Class 1 Shares of the Fund is set out
     below. The performance figures exclude the effect of the initial       Euro Performance
     charge and are calculated on the basisof the price an investor         The annual returns of Class 1 Shares in Euro of the Fund from
     would get on redeeming their Shares with dividend income               31 December 1999 to 31 December 2009 have been as
     treated in the manner applicable to an individual resident in the      follows:
     United Kingdom for tax purposes. The assets of the Fund are
     predominantly invested in assets denominated in JPY. Where                                    256.5%
     the performance data is not determined in this currency                                252%
                                                                                            242%
     investors will be exposed to fluctuation in exchange rates which                       232%
                                                                                            222%
                                                                                            212%
     could enhance or diminish the total return. The annual charges                         202%
                                                                                            192%
     applicable to the Fund are included in the calculation of                              182%
                                                                                            172%
     performance.                                                                           162%
                                                                                            152%
                                                                                            142%
                                                                                            132%
                                                                                            122%
                                                                              Performance




                                                                                            112%
                                                                                            102%
                                                                                             92%
                                                                                             82%
                                                                                             72%
                                                                                             62%                                                    50.6%
                                                                                             52%
                                                                                             42%
                                                                                             32%
                                                                                             22%                                     10.9%   7.1%                                    6.6%
                                                                                             12%
                                                                                              2%
                                                                                             -8%
                                                                                            -18%
                                                                                            -28%                     -21.3% -25.0%
                                                                                            -38%                                                                     -26.4% -22.7%
                                                                                                                                                            -31.2%
                                                                                            -48%
                                                                                                            -43.1%
                                                                                                   1999     2000     2001   2002     2003    2004   2005    2006     2007   2008     2009

                                                                                                                                             Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 October 2000 to 31 October 2010 is -64.53%.
                                                                                                                    Threadneedle Investment Funds ICVC   47




USD Performance
The annual returns of Class 1 Shares in USD of the Fund from
31 December 1999 to 31 December 2009 have been as
follows:

                220%
                210% 204.3%
                200%
                190%
                180%
                170%
                160%
                150%
                140%
                130%
                120%
                110%
                100%
  Performance




                 90%
                 80%
                 70%
                 60%
                 50%
                 40%                                     33.4%           30.7%
                 30%
                                                                 15.5%
                 20%                                                                                        10.1%
                 10%
                  0%
                -10%
                -20%                            -11.6%
                -30%                                                                      -18.4%
                                       -25.4%                                    -23.0%
                                                                                                   -26.5%
                -40%
                -50%
                              -46.7%
                      1999    2000     2001     2002     2003    2004    2005    2006     2007     2008     2009

                                                                 Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is -41.83%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.71% (Class 1) and 1.07% (Class 2).

Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to
7 March 2010 was 154%.

Distributions
Distributions are allocated on 8 March, and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risk that is associated with investing in
the Fund.

Investing in smaller companies
The Fund invests in the securities of smaller companies.
Accordingly, the Fund may fluctuate in value more than other
Funds because of the greater volatility of share prices of
smaller companies.
48   Threadneedle Investment Funds ICVC




     Schedule 20 to Simplified Prospectus for Threadneedle                GBP Performance
     Investment Funds ICVC, dated December 2010                           The annual returns of Class 1 Shares in GBP of the Fund from
                                                                          31 December 1999 to 31 December 2009 have been as
     European Bond Fund                                                   follows:
     Investment objective
     The investment objective is to achieve total return primarily by
                                                                                                                                                                             40.5%
     way of income with some capital growth.                                                  40%



     Investment policy
                                                                                              30%
     The investment policy is to invest the assets of the Fund in
     European public sector sovereign bonds and corporate bonds,
     issued by companies domiciled in Europe or with significant                              20%

     European operations, denominated in a range of European                                                                  13.5%



                                                                               Performance
     currencies. The Fund has the flexibility to invest in bonds                                                                      10.2%
                                                                                              10%
     issued by Eastern European issuers.                                                                                                       5.2%
                                                                                                                                                                     6.4%
                                                                                                               4.4%
                                                                                                                       2.0%                           1.5%

     Investor Profile                                                                          0%

     The Fund may be suitable for investors with a medium term                                                                                                                       -1.4%
                                                                                                                                                             -3.7%
     investment horizon seeking a total return primarily by way of
                                                                                             -10%
     income with some capital growth who are prepared to tolerate
     moderate price fluctuations. If investors are uncertain if the                                  -15.1%

     fund is suitable for them, they are advised to contact a financial                      -20%
                                                                                                      1999     2000    2001    2002   2003     2004   2005   2006    2007    2008    2009
     adviser.
                                                                                                                                              Date

     Investment information
     The performance of Class 1 Shares of the Fund is set out             Cumulative performance of Class 1 Shares in GBP of the Fund
     below. The performance figures exclude the effect of the initial     from 31 October 2000 to 31 October 2010 is 119.12%.
     charge and are calculated on the basisof the price an investor
     would get on redeeming their Shares with dividend income             Euro Performance
     treated in the manner applicable to an individual resident in the    The annual returns of Class 1 Shares in Euro of the Fund from
     United Kingdom for tax purposes. The assets of the Fund are          31 December 1999 to 31 December 2009 have been as
     predominantly invested in assets denominated in Euro. Where          follows:
     the performance data is not determined in this currency
     investors will be exposed to fluctuation in exchange rates which                        10%

     could enhance or diminish the total return. The annual charges
     applicable to the Fund are included in the calculation of                                                                                                                       7.3%
     performance.                                                                                                             6.5%
                                                                                                                                                                             6.7%




                                                                                                                      4.8%                    4.7%
                                                                                             5%                                                       4.5%


                                                                                                              3.3%
                                                                           Performance




                                                                                                                                      1.9%




                                                                                             0%




                                                                                                                                                             -1.8%
                                                                                                                                                                     -2.4%


                                                                                                    -3.6%

                                                                                             -5%
                                                                                                    1999      2000    2001    2002    2003    2004    2005   2006    2007    2008    2009

                                                                                                                                              Date



                                                                          Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                          from 31 October 2000 to 31 October 2010 is 47.66%.
                                                                                                                                                     Threadneedle Investment Funds ICVC   49




USD Performance                                                                                             1. Risk to capital growth
The annual returns of Class 1 Shares in USD of the Fund from                                                The investment objective of the Fund treats the generation of
31 December 1999 to 31 December 2009 have been as                                                           income as a higher (or equivalent) priority than capital growth.
follows:                                                                                                    Accordingly, fees and expenses charged in respect of the Fund
                                                                                                            may be charged against capital (instead of against income) in
               35%                                                                                          order to manage the level of income paid and/or available to
                                                                                                            shareholders. This may result in capital erosion or may
               30%
                                                                                                            constrain capital growth.
                                               25.6%
               25%
                                                       22.5%
                                                                                                            2. Fixed income Fund risk
               20%
                                                                                                            The interest rate on corporate bonds and most government
               15%
                                                                                                            bonds will not increase in line with inflation. Thus, over time,
                                                               12.8%
                                                                                                    10.7%   the real value of investor’s income could fall.
                                                                               9.8%
               10%                                                                    8.2%
 Performance




                5%
                                                                                             1.5%

                0%
                                       -0.6%

               -5%             -3.2%



               -10%
                                                                       -9.3%


               -15%


                      -17.7%
               -20%


               -25%
                      1999     2000    2001    2002    2003    2004    2005    2006   2007   2008   2009

                                                               Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is 142.14%.

Annual management charge
An annual management charge of 1.0% (Class 1 Shares)
applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.20% (Class 1).

Portfolio turnover rate
The portfolio turnover rate from 8 March 2009 to 7 March 2010
was 773%.

Distributions
Distributions are allocated on 8 March and 8 September, and
are paid on 7 May and 7 November.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:
50   Threadneedle Investment Funds ICVC




     Schedule 21 to Simplified Prospectus for Threadneedle                 GBP Performance
     Investment Funds ICVC, dated December 2010                            The annual returns of Class 1 Shares in GBP of the Fund from
                                                                           31 October 2002 to 31 December 2009 have been as follows:
     European Corporate Bond Fund
     Investment objective                                                                 20%

     The investment objective is to achieve total return.

     Investment policy                                                                                                       15.0%
                                                                                          15%
     The investment policy is to invest the assets of the Fund in a                                                                                                                13.4%
     managed portfolio of fixed interest securities which are
     primarily Euro denominated. The portfolio will consist primarily
     of a broad range of investment grade corporate fixed interest                        10%
                                                                                                                                                                          9.8%

     investments in companies domiciled in Europe or which have
     significant European operations. From time to time, it may also
     invest in securities issued by investment grade sovereign and          Performance                                               5.8%                        5.8%

     supranational borrowers. However, it is intended that the                            5%

     portfolio will not be more than 25% invested in securities rated
     AAA (Standard & Poor’s). A maximum of 10% of the portfolio
     can be invested in below investment grade securities. Where
                                                                                          0%
     securities are non-Euro denominated it is intended that they will
     typically be hedged into Euro.                                                                                                           -0.9%


                                                                                                                                                        -3.1%
     Investor Profile                                                                     -5%
     The Fund may be suitable for investors with a medium term                                   1999   2000   2001   2002   2003     2004    2005      2006      2007    2008     2009

     investment horizon seeking a total return who are prepared to                                                                   Date
     tolerate moderate price fluctuations. If investors are uncertain if
     the fund is suitable for them, they are advised to contact a          Cumulative performance of Class 1 Shares in GBP of the Fund
     financial adviser.                                                    from 31 October 2002 to 31 October 2010 is 68.62%.

     Investment information                                                Euro Performance
     The performance of Class 1 Shares of the Fund is set out              The annual returns of Class 1 Shares in Euro of the Fund from
     below. The performance figures exclude the effect of the initial      31 October 2002 to 31 December 2009 have been as follows:
     charge and are calculated on the basis of the price an investor
     would get on redeeming their Shares with dividend income                             30%
     treated in the manner applicable to an individual resident in the
     United Kingdom for tax purposes. The assets of the Fund are                          25%                                                                                   23.4%

     predominantly invested in assets denominated in Euro. Where
     the performance data is not determined in this currency                              20%

     investors will be exposed to fluctuation in exchange rates which
                                                                                          15%
     could enhance or diminish the total return. The annual charges
     applicable to the Fund are included in the calculation of                            10%
     performance.                                                                                                            6.4%
                                                                                                                                     5.3%
                                                                            Performance




                                                                                           5%
                                                                                                                                             2.1%


                                                                                           0%

                                                                                                                                                      -1.2%
                                                                                                                                                               -2.9%
                                                                                          -5%


                                                                                          -10%


                                                                                          -15%

                                                                                                                                                                       -16.6%
                                                                                          -20%
                                                                                                 1999   2000   2001   2002   2003    2004    2005     2006      2007   2008     2009

                                                                                                                                    Date
                                                                                                                                                    Threadneedle Investment Funds ICVC   51




Cumulative performance of Class 1 Shares in Euro of the Fund                                               Fixed income Fund risk
from 31 October 2002 to 31 October 2010 is 22.78%.                                                         The interest rate on corporate bonds and most government
                                                                                                           bonds will not increase in line with inflation. Thus, over time,
USD Performance                                                                                            the real value of investor’s income could fall.
The annual returns of Class 1 Shares in USD of the Fund from
31 October 2002 to 31 December 2009 have been as follows:

               35%


               30%                                27.9%                                            27.4%

               25%


               20%


               15%                                        13.5%

                                                                           10.5%
               10%                                                                 7.7%


                5%
 Performance




                0%


               -5%


               -10%
                                                                  -11.4%
               -15%


               -20%
                                                                                          -20.7%
               -25%


               -30%
                      1999   2000   2001   2002   2003    2004    2005     2006    2007   2008     2009

                                                          Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2002 to 31 October 2010 is 72.32%.

Annual management charge
An annual management charge of 1.00% (Class 1 Shares) and
0.50% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.49% (Class 1).

Portfolio turnover rate
The portfolio turnover rate from 8 March 2009 to 7 March 2010
was 152%.

Distributions
Distributions are allocated on 8 March and 8 September, and
are paid on 7 May and 7 November.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risk that is associated with investing in
the Fund:
52   Threadneedle Investment Funds ICVC




     Schedule 22 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 December 1999 to 31 December 2009 have been as
     European Fund                                                          follows:
     Investment objective
     The investment objective is to achieve capital growth.                                35%

                                                                                                  29.3%
                                                                                           30%
     Investment policy                                                                                                             26.0%

                                                                                           25%                                                     23.6%
     The investment policy is to invest the assets of the Fund
     primarily in equities of companies domiciled in Continental                           20%                                                             18.8%
                                                                                                                                                                                    16.3%
     Europe or which have significant Continental European
                                                                                           15%
                                                                                                                                                                   12.1%
     operations with growth prospects. If the ACD considers it                                                                             11.2%

                                                                                           10%
     desirable, it may further invest in other securities (including
                                                                                                          4.9%
     fixed interest securities, other equities and money market                             5%

     securities).                                                            Performance
                                                                                            0%


     Investor Profile                                                                      -5%

     The Fund may be suitable for investors with a long term                               -10%

     investment horizon seeking capital growth who are prepared to
                                                                                           -15%
     tolerate large price fluctuations. If investors are uncertain if the
     fund is suitable for them, they are advised to contact a financial                    -20%                  -18.1%
                                                                                                                                                                           -20.2%
     adviser.                                                                              -25%                           -22.7%


                                                                                           -30%
     Investment information                                                                       1999    2000   2001     2002     2003    2004    2005    2006    2007    2008     2009
     The performance of Class 1 Shares of the Fund is set out                                                                              Date
     below. The performance figures exclude the effect of the initial
     charge and are calculated on the basis of the price an investor
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     would get on redeeming their Shares with dividend income
                                                                            from 31 October 2000 to 31 October 2010 is 49.74%.
     treated in the manner applicable to an individual resident in the
     United Kingdom for tax purposes. The assets of the Fund are            Euro Performance
     predominantly invested in assets denominated in Euro. Where            The annual returns of Class 1 Shares in Euro of the Fund from
     the performance data is not determined in this currency                31 December 1999 to 31 December 2009 have been as
     investors will be exposed to fluctuation in exchange rates which       follows:
     could enhance or diminish the total return. The annual charges
     applicable to the Fund are included in the calculation of
                                                                                           60%
     performance.
                                                                                           50%    46.8%


                                                                                           40%


                                                                                           30%                                                     27.4%                            26.5%

                                                                                                                                                           21.1%
                                                                                           20%                                     16.6%

                                                                                                                                           10.7%
                                                                                           10%
                                                                             Performance




                                                                                                          3.8%                                                     2.8%

                                                                                            0%


                                                                                           -10%


                                                                                           -20%                  -15.8%



                                                                                           -30%                           -27.5%


                                                                                           -40%
                                                                                                                                                                           -39.3%

                                                                                           -50%
                                                                                                  1999    2000   2001     2002     2003    2004    2005    2006    2007    2008     2009

                                                                                                                                           Date
                                                                                                                 Threadneedle Investment Funds ICVC   53




Cumulative performance of Class 1 Shares in Euro of the Fund
from 31 October 2000 to 31 October 2010 is 0.54%.

USD Performance
The annual returns of Class 1 Shares in USD of the Fund from
31 December 1999 to 31 December 2009 have been as
follows:

               60%


               50%

                                                        40.2%
               40%
                                                                                35.4%
                                                                                                         30.6%
               30%
                      25.3%

                                                                19.3%
               20%
                                                                                        14.0%
                                                                        10.5%
               10%
 Performance




                0%

                              -2.8%
               -10%

                                               -14.5%
               -20%
                                      -20.2%

               -30%


               -40%

                                                                                                -42.3%
               -50%
                      1999    2000    2001     2002     2003    2004    2005    2006    2007    2008     2009

                                                                Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is 64.87%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.69% (Class 1) and 1.05% (Class 2).

Portfolio turnover rate
The portfolio turnover rate from 8 March 2009 to 7 March 2010
was 165%.

Distributions
Distributions are allocated on 8 March, and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus.
54   Threadneedle Investment Funds ICVC




     Schedule 23 to Simplified Prospectus for Threadneedle                   GBP Performance
     Investment Funds ICVC, dated December 2010                              The annual returns of Class 1 Shares in GBP of the Fund from
                                                                             31 December 1999 to 31 December 2009 have been as
     European Select Fund                                                    follows:
     Investment objective
     The investment objective is to achieve above average capital                           35%
                                                                                                   31.1%
     growth.
                                                                                            30%                                     27.4%


     Investment policy                                                                      25%                                                    23.3%

     The investment policy is to invest the assets of the Fund mainly                       20%
                                                                                                                                                                                    20.1%
                                                                                                                                                           17.7%
     in a relatively concentrated portfolio of equities of companies
     domiciled in Continental Europe or which have significant                              15%
                                                                                                                                                                   11.6%
     Continental European operations. The select investment                                 10%
                                                                                                                                            9.4%
                                                                                                           6.6%
     approach means that the ACD has the flexibility to take
                                                                                             5%
     significant stock and sector positions which may lead to                 Performance

     increased levels of volatility. If the ACD considers it desirable, it                   0%
     may further invest in other securities (including fixed interest
                                                                                            -5%
     securities, other equities and money market securities).
                                                                                            -10%

     Investor Profile
                                                                                            -15%
     The Fund may be suitable for investors with a long term
     investment horizon seeking above average capital growth who                            -20%
                                                                                                                  -20.8%
     are prepared to tolerate large price fluctuations. If investors are                                                   -22.6%
                                                                                            -25%                                                                           -23.8%
     uncertain if the fund is suitable for them, they are advised to
     contact a financial adviser.                                                           -30%
                                                                                                   1999    2000   2001     2002     2003    2004   2005    2006    2007    2008     2009

                                                                                                                                            Date
     Investment information
     The performance of Class 1 Shares of the Fund is set out
     below. The performance figures exclude the effect of the initial        Cumulative performance of Class 1 Shares in GBP of the Fund
     charge and are calculated on the of the price an investor would         from 31 October 2000 to 31 October 2010 is 48.93%.
     get on redeeming their Shares with dividend income treated in
     the manner applicable to an individual resident in the United
     Kingdom for tax purposes. The assets of the Fund are
     predominantly invested in assets denominated in Euro. Where
     the performance data is not determined in this currency
     investors will be exposed to fluctuation in exchange rates which
     could enhance or diminish the total return. The annual charges
     applicable to the Fund are included in the calculation of
     performance.
                                                                                                                                                          Threadneedle Investment Funds ICVC   55




Euro Performance                                                                                                 Annual management charge
The annual returns of Class 1 Shares in Euro of the Fund from                                                    An annual management charge of 1.5% (Class 1 Shares) and
31 December 1999 to 31 December 2009 have been as                                                                1.0% (Class 2 Shares) applies.
follows:
                                                                                                                 Total expense ratio
                      48.8%
                                                                                                                 The total expense ratio from 8 March 2009 to 7 March 2010
               50%
                                                                                                                 was 1.69% (Class 1) and 1.05% (Class 2).
               40%

                                                                                                         30.7%   Portfolio turnover rate
               30%                                                      27.1%
                                                                                                                 The portfolio turnover rate for the Fund from 8 March 2009 to 7
                                                                                20.0%
               20%                                      17.9%                                                    March 2010 was 227%.
                                                                8.9%
               10%            5.5%
                                                                                        2.4%
                                                                                                                 Distributions
 Performance




                0%                                                                                               Distributions are allocated on 8 March, and are paid on 7 May.

               -10%
                                                                                                                 Risk factors
               -20%                                                                                              The risk factors that are associated with investing in
                                      -18.6%
                                                                                                                 Threadneedle Investment Funds ICVC are set out in this
               -30%                            -27.4%
                                                                                                                 Simplified Prospectus and are described in more detail in the
               -40%                                                                                              Prospectus. In addition to those risks, investors should
                                                                                                -42.1%           consider the following risks that are associated with investing in
               -50%
                      1999    2000    2001     2002     2003    2004    2005    2006    2007    2008     2009    the Fund:
                                                                Date
                                                                                                                 Concentrated portfolios
                                                                                                                 Investors should note that this Fund has a concentrated
Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                                                                 portfolio (holds a limited number of investments and/or large
from 31 October 2000 to 31 October 2010 is 0.00%.
                                                                                                                 positions taken in a relatively small number of stocks). If one or
USD Performance                                                                                                  more of those investments declines or is otherwise adversely
The annual returns of Class 1 Shares in USD of the Fund from                                                     affected, it may have a more pronounced effect on the Fund’s
31 October 2000 to 31 December 2009 have been as follows:                                                        value than if a larger number of investments were held or if the
                                                                                                                 Fund had fewer individual positions.
               50%
                                                        41.7%                                                    Accordingly they may carry a higher degree of risk and net
               40%
                                                                                34.2%                    34.9%   asset value volatility than a Fund which invests in a broad
                                                                                                                 range of companies or does not take large positions in a
               30%    27.0%
                                                                                                                 relatively small number of stocks.
               20%                                              17.4%
                                                                                        13.6%
                                                                        10.3%
               10%
 Performance




                0%
                              -1.1%

               -10%

                                               -14.4%
               -20%

                                      -22.8%
               -30%


               -40%


                                                                                                -45.0%
               -50%
                      1999    2000    2001     2002     2003    2004    2005    2006    2007    2008     2009

                                                                Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 December 1999 to 31 October 2010 is 63.97%.
56   Threadneedle Investment Funds ICVC




     Schedule 24 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from 31
                                                                            December 1999 to 31 December 2009 have been as follows:
     European Smaller Companies Fund
     Investment objective                                                                  80%
                                                                                                  73.9%
                                                                                           75%
     The investment objective is to achieve capital growth.
                                                                                           70%
                                                                                           65%
     Investment policy                                                                     60%

     The investment policy is to invest the assets of the Fund                             55%
                                                                                           50%
     primarily in the equities of smaller companies domiciled in                           45%
                                                                                                                                    43.1%

     Continental Europe or with significant Continental European                           40%
                                                                                                                                                    32.5% 33.7%
     operations. If the ACD considers it desirable it may further                          35%
                                                                                                                                            28.9%
                                                                                           30%                                                                                     26.6%
     invest in other securities (including fixed interest securities,                      25%


                                                                             Performance
     other equities and money market securities).                                          20%
                                                                                           15%                                                                    12.0%


     Investor Profile                                                                      10%
                                                                                            5%
     The Fund may be suitable for investors with a long term                                0%
                                                                                                          -0.6%
     investment horizon seeking capital growth who are prepared to                         -5%
                                                                                           -10%                            -6.9%
     tolerate large price fluctuations. If investors are uncertain if the                  -15%
     fund is suitable for them, they are advised to contact a financial                    -20%

     adviser.                                                                              -25%
                                                                                                                                                                          -24.3%
                                                                                           -30%
                                                                                                                  -29.7%
                                                                                           -35%
     Investment information                                                                       1999    2000    2001     2002     2003    2004    2005   2006   2007    2008     2009

     The performance of Class 1 Shares of the Fund is set out                                                                               Date
     below. The performance figures exclude the effect of the initial
     charge and are calculated on the basis of the price an investor        Cumulative performance of Class 1 Shares in GBP of the Fund
     would get on redeeming their Shares with dividend income               from 31 October 2000 to 31 October 2010 is 150.73%.
     treated in the manner applicable to an individual resident in the
     United Kingdom for tax purposes. The assets of the Fund are            Euro Performance
     predominantly invested in assets denominated in Euro. Where            The annual returns of Class 1 Shares in Euro of the Fund from
     the performance data is not determined in this currency                31 December 1999 to 31 December 2009 have been as follows:
     investors will be exposed to fluctuation in exchange rates which
     could enhance or diminish the total return.. The annual charges                       100%   97.3%

     applicable to the Fund are included in the calculation of                              95%
                                                                                            90%
     performance.                                                                           85%
                                                                                            80%
                                                                                            75%
                                                                                            70%
                                                                                            65%
                                                                                            60%
                                                                                            55%
                                                                                            50%
                                                                                            45%
                                                                                                                                                    36.5% 36.4%                    37.8%
                                                                                            40%
                                                                                                                                    32.3%
                                                                                            35%
                                                                                                                                            28.3%
                                                                                            30%
                                                                             Performance




                                                                                            25%
                                                                                            20%
                                                                                            15%
                                                                                            10%
                                                                                                                                                                  2.8%
                                                                                             5%
                                                                                             0%
                                                                                            -5%           -1.7%
                                                                                           -10%
                                                                                           -15%
                                                                                                                           -12.6%
                                                                                           -20%
                                                                                           -25%
                                                                                           -30%
                                                                                                                  -27.8%
                                                                                           -35%
                                                                                           -40%
                                                                                           -45%                                                                           -42.5%
                                                                                                  1999    2000     2001    2002     2003    2004    2005   2006   2007    2008     2009

                                                                                                                                            Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 October 2000 to 31 October 2010 is 68.35%.
                                                                                                                                                    Threadneedle Investment Funds ICVC   57




USD Performance                                                                                               Investing in smaller companies
The annual returns of Class 1 Shares in USD of the Fund from                                                  The Fund invests in the securities of smaller companies.
31 December 1999 to 31 December 2009 have been as                                                             Accordingly, the Fund may fluctuate in value more than other
follows:                                                                                                      Funds because of the greater volatility of share prices of
                                                                                                              smaller companies.
               70%    68.4%
               65%
                                                     59.1%
               60%
               55%                                                           52.4%

               50%
               45%                                                                                    42.2%
                                                             38.2%
               40%
               35%                    31.5%
               30%
               25%
                                                                     18.5%
               20%
                                                                                     13.9%
               15%
 Performance




               10%
                                              3.0%
                5%
                0%
               -5%
               -10%           -7.9%
               -15%
               -20%
               -25%
               -30%
               -35%
               -40%
               -45%
               -50%                                                                          -45.3%

                      1999    2000    2001    2002   2003    2004    2005    2006    2007    2008     2009

                                                             Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is 176.06%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.69% (Class 1) and 1.05% (Class 2).

Portfolio turnover rate
The portfolio turnover rate from 8 March 2009 to 7 March 2010
was 199%.

Distributions
Distributions are allocated on 8 March, and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:
58   Threadneedle Investment Funds ICVC




     Schedule 25 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 December 1999 to 31 December 2009 have been as
     Pan European Fund                                                      follows:
     Investment objective
     The investment objective is to achieve capital growth.                                35%

                                                                                           30%

     Investment policy                                                                     25%                                    23.3%
                                                                                                                                                 21.4%                           21.7%

     The investment policy is to invest the assets of the Fund                             20%
                                                                                                                                                         16.2% 15.3%

     primarily in the equity of large companies domiciled in                               15%

     Continental Europe or the UK or with significant Continental                          10%
                                                                                                                                          5.8%

     European or UK activities. The ACD may, however, invest in                             5%           1.8%

     the equity of smaller companies.                                                       0%



                                                                             Performance
                                                                                           -5%


     Investor Profile                                                                      -10%

                                                                                           -15%
     The Fund may be suitable for investors with a long term
                                                                                           -20%
     investment horizon seeking capital growth who are prepared to                                              -18.7%
                                                                                                                                                                        -20.5%
                                                                                           -25%                          -21.7%
     tolerate large price fluctuations. If investors are uncertain if the
                                                                                           -30%
     fund is suitable for them, they are advised to contact a financial
                                                                                           -35%
     adviser.
                                                                                           -40%

                                                                                           -45%
     Investment information                                                                       1999   2000   2001     2002     2003    2004   2005    2006    2007   2008     2009

     The performance of Class 1 Shares of the Fund is set out                                                                             Date
     below. The performance figures exclude the effect of the initial
     charge and are calculated on the basis of the price an investor
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     would get on redeeming their Shares with dividend income
                                                                            from 31 October 2000 to 31 October 2010 is 52.47%.
     treated in the manner applicable to an individual resident in the
     United Kingdom for tax purposes. The assets of the Fund are            Euro Performance
     predominantly invested in assets denominated in Euro. Where            The annual returns of Class 1 Shares in Euro of the Fund from
     the performance data is not determined in this currency                31 December 1999 to 31 December 2009 have been as
     investors will be exposed to fluctuation in exchange rates which       follows:
     could enhance or diminish the total return.. The annual charges
     applicable to the Fund are included in the calculation of                             35%                                                                                   32.4%
     performance.                                                                          30%
                                                                                                                                                 25.1%
                                                                                           25%
                                                                                                                                                         18.5%
                                                                                           20%
                                                                                                                                  14.0%
                                                                                           15%

                                                                                           10%
                                                                                                                                          5.3%                   5.8%
                                                                                            5%
                                                                                                         0.7%
                                                                                            0%
                                                                             Performance




                                                                                           -5%

                                                                                           -10%

                                                                                           -15%

                                                                                           -20%                 -16.5%

                                                                                           -25%

                                                                                           -30%                          -26.5%

                                                                                           -35%

                                                                                           -40%
                                                                                                                                                                        -39.6%
                                                                                           -45%
                                                                                                  1999   2000   2001     2002     2003    2004   2005    2006    2007   2008     2009

                                                                                                                                          Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 October 2000 to 31 October 2010 is 2.37%.
                                                                                                              Threadneedle Investment Funds ICVC   59




USD Performance
The annual returns of Class 1 Shares in USD of the Fund from
31 December 1999 to 31 December 2009 have been as
follows:

               40%                                    37.1%                                           36.7%

               35%                                                           32.5%

               30%

               25%                   20.8%
               20%                                                                   17.2%
                                                              13.5%
               15%
                                                                      8.6%
               10%

                5%

                0%
 Performance




               -5%
                             -5.7%
               -10%

               -15%
                                             -13.4%
               -20%

               -25%

               -30%

               -35%

               -40%

               -45%                                                                          -42.6%
               -50%
                      1999   2000    2001    2002     2003    2004    2005   2006    2007    2008     2009

                                                              Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is 67.87%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.72% (Class 1) and 1.08% (Class 2).

Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to
7 March 2010 was 230%.

Distributions
Distributions are allocated on 8 March, and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus.
60   Threadneedle Investment Funds ICVC




     Schedule 26 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 March 2000 to 31 December 2009 have been as follows:
     European High Yield Bond Fund
     Investment objective                                                                  45%
                                                                                                                                                                               41.4%
     The investment objective is to achieve total return. Over time
                                                                                           40%
     this will be predominantly by way of income.
                                                                                           35%
                                                                                                                                31.5%
     Investment policy                                                                     30%
     The investment policy is to invest the assets of the Fund
                                                                                           25%
     primarily in corporate fixed interest securities of corporates with
     higher risk (that is non-investment grade credit) issued                              20%




                                                                             Performance
     predominantly in Euro or Sterling. Where securities are non-
                                                                                           15%
     Euro denominated it is intended they will typically be hedged                                                                      11.4%

     into Euro. The ACD will invest predominantly in issues issued                         10%
                                                                                                                                                              6.7%
                                                                                                                                                       5.7%
     by companies domiciled in Europe, or with significant European                         5%
     operations. If the ACD considers it desirable it may further                                                       1.5%                    0.9%
                                                                                            0%
     invest in other securities (including fixed interest securities,
     other equities and money market securities).                                          -5%
                                                                                                                -5.3%                                                 -6.0%
                                                                                           -10%
     Investor Profile                                                                             1999   2000   2001    2002    2003    2004    2005   2006   2007    2008     2009

     The Fund may be suitable for investors with a medium to long                                                                       Date
     term investment horizon seeking a total return primarily by way
     of income who are prepared to tolerate moderate to large price
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     fluctuations. If investors are uncertain if the fund is suitable for
                                                                            from 31 March 2000 to 31 October 2010 is 143.18%.
     them, they are advised to contact a financial adviser.
                                                                            Euro Performance
     Investment information                                                 The annual returns of Class 1 Shares in Euro of the Fund from
     The performance of Class 1 Shares of the Fund is set out               31 March 2000 to 31 December 2009 have been as follows:
     below. The performance figures exclude the effect of the initial
     charge and are calculated on the basisof the price an investor                        55%                                                                                 53.8%
     would get on redeeming their Shares with dividend income                              50%
     treated in the manner applicable to an individual resident in the                     45%
     United Kingdom for tax purposes. The assets of the Fund are                           40%
     predominantly invested in assets denominated in Euro. Where                           35%
     the performance data is not determined in this currency                               30%

     investors will be exposed to fluctuation in exchange rates which                      25%                                  21.7%
     could enhance or diminish the total return. The annual charges                        20%

     applicable to the Fund are included in the calculation of                             15%
                                                                                                                                        10.9%
     performance.
                                                                             Performance




                                                                                           10%                                                         7.8%
                                                                                                                                                4.0%
                                                                                            5%

                                                                                            0%

                                                                                           -5%                  -2.8%                                         -2.1%
                                                                                                                        -4.7%
                                                                                           -10%

                                                                                           -15%

                                                                                           -20%

                                                                                           -25%

                                                                                           -30%
                                                                                                                                                                      -28.6%
                                                                                           -35%
                                                                                                  1999   2000   2001    2002    2003    2004    2005   2006   2007    2008     2009

                                                                                                                                        Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 March 2000 to 31 October 2010 is 63.28%.
                                                                                                                                                     Threadneedle Investment Funds ICVC   61




USD Performance                                                                                             securities can bring an increased risk of default on repayment
The annual returns of Class 1 Shares in USD of the Fund from                                                and therefore an increased risk that the income and capital
31 March 2000 to 31 December 2009 have been as follows:                                                     value of the Fund will be affected.

               65%                                                                                          2. Fixed income Fund risk
                                                                                                    58.8%
               60%                                                                                          The interest rate on corporate bonds and most government
               55%
                                                                                                            bonds will not increase in line with inflation. Thus, over time,
               50%                                  46.2%
                                                                                                            the real value of investor’s income could fall.
               45%

               40%

               35%

               30%

               25%
                                                            19.5%           20.5%
               20%
 Performance




               15%                          12.3%
                                                                                    8.6%
               10%

                5%

                0%

               -5%

               -10%                 -7.8%
                                                                    -9.8%
               -15%

               -20%

               -25%

               -30%

               -35%                                                                        -32.1%
                      1999   2000   2001    2002    2003    2004    2005    2006    2007   2008     2009

                                                            Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 March 2000 to 31 October 2010 is 167.75%.

Annual management charge
An annual management charge of 1.25% (Class 1 Shares) and
0.75 (Class 2) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.44% (Class 1) and 0.81% (Class 2).

Portfolio turnover rate
The portfolio turnover rate from 8 March 2009 to 7 March 2010
was 4%.

Distributions
Distributions are allocated on 8 March, and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:

1. Investing in high yield bonds
Investing in high yield bonds may include investments in ‘below
investment grade’ securities (generally of below ‘BBB-’ grade,
with reference to leading credit rating agencies). These
62   Threadneedle Investment Funds ICVC




     Schedule 27 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 December 1999 to 31 December 2009 have been as
     Asia Fund                                                              follows:
     Investment objective
     The investment objective is to achieve capital growth.                                70%
                                                                                                  63.7%
                                                                                           65%
                                                                                           60%
     Investment policy                                                                     55%                                                                                     52.5%

                                                                                           50%                                                                    46.4%
     The investment policy is to invest the assets of the Fund                             45%
     primarily in the equity of companies domiciled in Asia (with the                      40%                                     34.9%          35.5%
                                                                                           35%
     exclusion of Japan) or with significant Asian (excluding Japan)
                                                                                           30%
     operations. It may further invest in other securities including                       25%
                                                                                                                                                          22.9%

                                                                                           20%
     fixed interest securities, other equities and money market

                                                                             Performance
                                                                                           15%
     securities.                                                                           10%                                             7.0%

                                                                                            5%                     0.4%
                                                                                            0%
     Investor Profile                                                                      -5%

     The Fund may be suitable for investors with a long term                               -10%
                                                                                           -15%
     investment horizon seeking capital growth who are prepared to                         -20%                           -16.6%
                                                                                                          -19.7%
     tolerate large price fluctuations. If investors are uncertain if the                  -25%
                                                                                           -30%
     fund is suitable for them, they are advised to contact a financial                    -35%
     adviser.                                                                              -40%                                                                           -36.5%
                                                                                           -45%
                                                                                                  1999    2000     2001   2002     2003    2004   2005    2006    2007    2008     2009

     Investment information                                                                                                                Date
     The performance of Class 1 Shares of the Fund is set out
     below. The performance figures exclude the effect of the initial
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     charge and are calculated on the of the price an investor would
                                                                            from 31 October 2000 to 31 October 2010 is 203.70%.
     get on redeeming their Shares with dividend income treated in
     the manner applicable to an individual resident in the United          Euro Performance
     Kingdom for tax purposes. The assets of the Fund are                   The annual returns of Class 1 Shares in Euro of the Fund from
     predominantly invested in assets denominated in USD. Where             31 December 1999 to 31 December 2009 have been as
     the performance data is not determined in this currency                follows:
     investors will be exposed to fluctuation in exchange rates which
     could enhance or diminish the total return. The annual charges                         90%   85.7%
     applicable to the Fund are included in the calculation of                              85%
                                                                                            80%
     performance.                                                                           75%
                                                                                            70%                                                                                    66.0%
                                                                                            65%
                                                                                            60%
                                                                                            55%
                                                                                            50%
                                                                                            45%                                                   39.6%
                                                                                            40%                                                                   34.3%
                                                                                            35%
                                                                                            30%                                    24.8%                  25.4%
                                                                                            25%
                                                                             Performance




                                                                                            20%
                                                                                            15%
                                                                                            10%                                            6.5%
                                                                                                                   3.2%
                                                                                             5%
                                                                                             0%
                                                                                            -5%
                                                                                           -10%
                                                                                           -15%
                                                                                           -20%
                                                                                           -25%           -20.6%          -21.8%
                                                                                           -30%
                                                                                           -35%
                                                                                           -40%
                                                                                           -45%
                                                                                           -50%
                                                                                           -55%                                                                           -51.8%
                                                                                                  1999    2000     2001   2002     2003    2004   2005    2006    2007    2008     2009

                                                                                                                                           Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 October 2000 to 31 October 2010 is 103.92%.
                                                                                                                                                        Threadneedle Investment Funds ICVC   63




USD Performance                                                                                                 established counterparts. Investments in emerging markets
The annual returns of Class 1 Shares in USD of the Fund from                                                    may involve a higher than average risk.
31 December 1999 to 31 December 2009 have been as
follows:                                                                                                        2. Taxation
                                                                                                                Tax, levies, duties and other fees or charges may apply to the
                75%                                                                                     71.3%   proceeds of sale of securities or the receipt of dividends or
                70%
                65%                                                                                             other income in some markets. It is also possible that the
                      58.5%
                60%
                55%
                                                                                                                current interpretation of the law or understanding of local
                                                       50.0%                           48.9%
                50%                                                                                             practice might change, or that the law might be changed with
                45%                                                            40.1%
                40%                                                                                             retrospective effect. It is therefore possible that the Company
                35%
                30%
                                                                                                                could become subject to additional taxation in such countries
                25%                                                    21.2%                                    that is not anticipated either at the date of the Prospectus or
                20%                                            14.8%
                15%                                                                                             when investments are made, valued or disposed of.
 Performance




                10%
                 5%
                 0%
                -5%                    -2.2%
               -10%
                                               -7.8%
               -15%
               -20%
               -25%
               -30%           -25.6%
               -35%
               -40%
               -45%
               -50%
               -55%
               -60%                                                                            -54.2%

                      1999    2000     2001    2002    2003    2004    2005    2006    2007    2008     2009

                                                               Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is 234.38%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.69% (Class 1) and 1.06% (Class 2).

Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to 7
March 2010 was 14%.

Distributions
Distributions are allocated on 8 March, and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:

1. Emerging market risk
The Fund invests in emerging markets, which may carry risks
associated with failed or delayed settlements of market
transactions and with registration and custody of securities.
Emerging markets are generally less well regulated than their
64   Threadneedle Investment Funds ICVC




     Schedule 28 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 December 1999 to 31 December 2009 have been as
     Latin America Fund                                                     follows:
     Investment objective
     The investment objective is to achieve capital growth.                                 90%
                                                                                                                                                                                    83.6%
                                                                                            85%
                                                                                            80%

     Investment policy                                                                      75%
                                                                                            70%
                                                                                                  68.9%
                                                                                                                                                   65.8%
     The investment policy is to invest the assets of the Fund mainly                       65%
                                                                                            60%
     in equities of companies domiciled in Latin America or which                           55%                                    50.7%

     have significant Latin American operations and it may further                          50%
                                                                                            45%
                                                                                                                                                                   37.8%
     invest in fixed income securities such as sovereign and                                40%
                                                                                            35%                                            29.4%
     corporate Latin American debt, other equities and money                                30%                                                            27.2%



                                                                             Performance
     market securities.                                                                     25%
                                                                                            20%
                                                                                            15%                   9.2%

     Investor Profile                                                                       10%
                                                                                             5%

     The Fund may be suitable for investors with a long term                                 0%
                                                                                            -5%
                                                                                                          -3.6%
     investment horizon seeking capital growth who are prepared to                         -10%
                                                                                           -15%
     tolerate large price fluctuations. If investors are uncertain if the                  -20%
     fund is suitable for them, they are advised to contact a financial                    -25%
                                                                                           -30%
     adviser.                                                                              -35%                           -29.0%

                                                                                           -40%                                                                            -36.5%
                                                                                                  1999    2000    2001    2002     2003    2004    2005    2006    2007    2008     2009
     Investment information                                                                                                                Date
     The performance of Class 1 Shares of the Fund is set out
     below. The performance figures exclude the effect of the initial
                                                                            Cumulative performance of Class 1 Shares in GBP of the Fund
     charge and are calculated on the basisof the price an investor
                                                                            from 31 October 2000 to 31 October 2010 is 464.06%.
     would get on redeeming their Shares with dividend income
     treated in the manner applicable to an individual resident in the
                                                                            Euro Performance
     United Kingdom for tax purposes. The assets of the Fund are
                                                                            The annual returns of Class 1 Shares in Euro of the Fund from
     predominantly invested in assets denominated in USD. Where
                                                                            31 December 1999 to 31 December 2009 have been as
     the performance data is not determined in this currency
                                                                            follows:
     investors will be exposed to fluctuation in exchange rates which
     could enhance or diminish the total return. The annual charges
                                                                                           105%                                                                                     99.8%
     applicable to the Fund are included in the calculation of                             100%
                                                                                                  91.7%
                                                                                            95%
     performance.                                                                           90%
                                                                                            85%
                                                                                            80%
                                                                                            75%                                                    70.8%
                                                                                            70%
                                                                                            65%
                                                                                            60%
                                                                                            55%
                                                                                            50%
                                                                                            45%                                    39.4%
                                                                                            40%
                                                                                            35%                                            28.8%           29.7%
                                                                                            30%                                                                    26.4%
                                                                             Performance




                                                                                            25%
                                                                                            20%
                                                                                                                  12.2%
                                                                                            15%
                                                                                            10%
                                                                                             5%
                                                                                             0%
                                                                                            -5%
                                                                                           -10%           -4.6%
                                                                                           -15%
                                                                                           -20%
                                                                                           -25%
                                                                                           -30%
                                                                                           -35%
                                                                                           -40%                           -33.4%
                                                                                           -45%
                                                                                           -50%
                                                                                           -55%                                                                            -51.8%
                                                                                                  1999    2000    2001     2002    2003    2004    2005    2006    2007    2008     2009

                                                                                                                                           Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 October 2000 to 31 October 2010 is 278.73%.
                                                                                                                                                         Threadneedle Investment Funds ICVC   65




USD Performance                                                                                                  1. Emerging market risk
The annual returns of Class 1 Shares in USD of the Fund from                                                     The Fund invests in emerging markets, which may carry risks
31 December 1999 to 31 December 2009 have been as                                                                associated with failed or delayed settlements of market
follows:                                                                                                         transactions and with registration and custody of securities.
                                                                                                                 Emerging markets are generally less well regulated than their
               110%                                                                                     106.2%   established counterparts. Investments in emerging markets
               105%
               100%                                                                                              may involve a higher than average risk.
                95%
                90%
                85%
                80%                                                                                              2. Taxation
                75%
                70%   63.6%
                                                       67.6%
                                                                                                                 Tax, levies, duties and other fees or charges may apply to the
                65%
                60%                                                                                              proceeds of sale of securities or the receipt of dividends or
                55%
                50%
                                                                       48.2%
                                                                               45.0%                             other income in some markets. It is also possible that the
                45%                                                                    40.2%
                40%
                                                               38.7%
                                                                                                                 current interpretation of the law or understanding of local
                35%
                30%                                                                                              practice might change, or that the law might be changed with
 Performance




                25%
                20%                                                                                              retrospective effect. It is therefore possible that the Company
                15%
                10%                    6.4%                                                                      could become subject to additional taxation in such countries
                 5%
                 0%
                                                                                                                 that is not anticipated either at the date of the Prospectus or
                -5%
               -10%
                                                                                                                 when investments are made, valued or disposed of.
               -15%           -10.6%
               -20%
               -25%                           -21.5%
               -30%
               -35%
               -40%
               -45%
               -50%
               -55%
               -60%                                                                            -54.1%
                      1999    2000     2001   2002     2003    2004    2005    2006    2007    2008     2009

                                                               Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 October 2000 to 31 October 2010 is 521.04%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2008 to 7 March 2009
was 1.74% (Class 1) and 1.10% (Class 2).

Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to 7
March 2010 was 89%.

Distributions
Distributions are allocated on 8 March, and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:
66   Threadneedle Investment Funds ICVC




     Schedule 29 to Simplified Prospectus for Threadneedle               GBP Performance
     Investment Funds ICVC, dated December 2010.                         The annual returns of Class 1 Shares in GBP of the Fund from
                                                                         31 December 1999 to 31 December 2009 have been as
     Emerging Market Bond Fund                                           follows:
     Investment objective
     The investment objective is to achieve a total return primarily                    25%                                                    23.5%

     by way of income with some capital growth.                                                                                                                        21.5%

                                                                                               19.4%
                                                                                        20%
     Investment policy                                                                                                          17.7%

                                                                                                       15.5%
     The investment policy is to invest the assets of the Fund                                                 14.2%
                                                                                        15%
                                                                                                                                                                               13.3%
     primarily in high yielding public sector sovereign and corporate
     bonds issued by emerging market borrowers. Emerging Market
                                                                                        10%
     countries are those characterised as developing or emerging

                                                                          Performance
     either by the World Bank, the United Nations or the JPMorgan
     Global Diversified Emerging Market Bond Index.                                      5%
                                                                                                                                        2.8%
                                                                                                                                                               2.2%


     If the ACD considers it desirable it may further invest in other                    0%

     fixed interest securities, including bonds issued by countries
                                                                                                                                                       -1.9%
     making up the G7, deposits, cash and near cash. Additionally,                      -5%
                                                                                                                       -4.5%
     it may use derivatives (including currency, interest rate and
     credit default swaps) and forward transactions for purposes
                                                                                        -10%
     that are limited to efficient portfolio management techniques.                            1999    2000    2001    2002     2003    2004   2005    2006    2007    2008    2009

                                                                                                                                        Date
     The use of derivatives within the Fund for efficient portfolio
     management techniques is described in the Prospectus.
                                                                         Cumulative performance of Class 1 Shares in GBP of the Fund
                                                                         from 31 October 2000 to 31 October 2010 is 153.32%
     Investor Profile
     The Fund may be suitable for investors with a medium to long
                                                                         Euro Performance
     term investment horizon seeking a total return primarily by way
                                                                         The annual returns of Class 1 Shares in Euro of the Fund from
     of income with some capital growth who are prepared to
                                                                         31 December 1999 to 31 December 2009 have been as
     tolerate moderate to large price fluctuations. If investors are
                                                                         follows:
     uncertain if the fund is suitable for them, they are advised to
     contact a financial adviser.
                                                                                        40%
                                                                                               35.5%
     Investment information                                                             35%

     The performance of Class 1 Shares of the Fund is set out                           30%
                                                                                                                                               27.2%
     below. The performance figures exclude the effect of the initial
     charge and are calculated on the basisof the price an investor                     25%                                                                                    23.3%


     would get on redeeming their Shares with dividend income                           20%
                                                                                                               17.3%
     treated in the manner applicable to an individual resident in the                                 14.3%
                                                                                        15%
     United Kingdom for tax purposes. The assets of the Fund are
                                                                          Performance




     predominantly invested in assets denominated in USD. Where                         10%                                     8.9%


     the performance data is not determined in this currency
                                                                                         5%
                                                                                                                                        2.3%
     investors will be exposed to fluctuation in exchange rates which                                                                                  0.1%
     could enhance or diminish the total return. The annual charges                      0%

     applicable to the Fund are included in the calculation of                          -5%
     performance.                                                                                                                                              -6.3%
                                                                                        -10%                                                                           -7.7%
                                                                                                                       -10.4%

                                                                                        -15%
                                                                                               1999    2000    2001    2002     2003    2004   2005    2006    2007    2008    2009

                                                                                                                                        Date



                                                                         Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                         from 31 October 2000 to 31 October 2010 is 70.09%.
                                                                                                                                                   Threadneedle Investment Funds ICVC   67




USD Performance                                                                                           may be charged against capital (instead of against income) in
The annual returns of Class 1 Shares in USD of the Fund from                                              order to manage the level of income paid and/or available to
31 December 1999 to 31 December 2009 have been as                                                         shareholders. This may result in capital erosion or may
follows:                                                                                                  constrain capital growth.

               35%                                                                                        2. Emerging market risk
                                                    30.8%
                                                                                                          The Fund invests in emerging markets, which may carry risks
               30%
                                                                                                  27.2%   associated with failed or delayed settlements of market
               25%                                                                                        transactions and with registration and custody of securities.
                                                                                                          Emerging markets are generally less well regulated than their
               20%
                                                                                                          established counterparts. Investments in emerging markets
                      15.7%
               15%
                                                                                                          may involve a higher than average risk.
                                                                          11.9%
                                     11.2%
                                                            10.2% 10.4%
                                                                                                          3. Taxation
 Performance




               10%
                              7.1%
                                             5.6%                                                         Tax, levies, duties and other fees or charges may apply to the
                5%                                                                3.9%
                                                                                                          proceeds of sale of securities or the receipt of dividends or
                0%                                                                                        other income in some markets. It is also possible that the
                                                                                                          current interpretation of the law or understanding of local
               -5%
                                                                                                          practice might change, or that the law might be changed with
                                                                                                          retrospective effect. It is therefore possible that the Company
               -10%
                                                                                                          could become subject to additional taxation in such countries
                                                                                         -12.3%
               -15%                                                                                       that is not anticipated either at the date of the Prospectus or
                      1999    2000   2001    2002   2003    2004   2005   2006    2007   2008     2009
                                                                                                          when investments are made, valued or disposed of.
                                                            Date

                                                                                                          4. Investing in high yield bonds
Cumulative performance of Class 1 Shares in USD of the Fund                                               Investing in high yield bonds may include investments in ‘below
from 31 October 2000 to 31 October 2010 is 178.91%.                                                       investment grade’ securities (generally of below ‘BBB-’ grade,
                                                                                                          with reference to leading credit rating agencies). These
Annual management charge                                                                                  securities can bring an increased risk of default on repayment
An annual management charge of 1.5% (Class 1 Shares) and                                                  and therefore an increased risk that the income and capital
1.0% (Class 2) applies.                                                                                   value of the Fund will be affected.

Total expense ratio                                                                                       5. Fixed income Fund
The total expense ratio from 8 March 2009 to 7 March 2010                                                 The interest rate on corporate bonds and most government
was 1.71% (Class 1) and 1.06% (Class 2).                                                                  bonds will not increase in line with inflation. Thus, over time,
                                                                                                          the real value of investor’s income could fall.
Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to 7
March 2010 was 71%.

Distributions
Distributions are allocated on 8 March and 8 September, and
are paid on 7 May and 7 November.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:

1. Risk to capital growth
The investment objective of the Fund treats the generation of
income as a higher (or equivalent) priority than capital growth.
Accordingly, fees and expenses charged in respect of the Fund
68   Threadneedle Investment Funds ICVC




     Schedule 30 to Simplified Prospectus for Threadneedle                GBP Performance
     Investment Funds ICVC, dated December 2010                           The annual returns of Class 1 Shares in GBP of the Fund from
                                                                          31 December 1999 to 31 December 2009 have been as
     Global Bond Fund                                                     follows:
     Investment objective
     The investment objective is to achieve a total return comprising                    55%
                                                                                                                                                                    51.2%
     primarily income with some capital growth.                                          50%

                                                                                         45%
     Investment policy                                                                   40%
     The investment policy is to invest the assets of the Fund in a
                                                                                         35%
     managed portfolio of fixed income securities worldwide.
                                                                                         30%


     Investor Profile                                                                    25%




                                                                           Performance
     The Fund may be suitable for investors with a medium term                           20%


     investment horizon seeking a total return primarily by way of                       15%

     income with some capital growth who are prepared to tolerate                        10%
                                                                                                        8.8%
                                                                                                                      6.7%   5.9%            5.2%           4.8%
     moderate price fluctuations. If investors are uncertain if the                       5%                   3.1%
                                                                                                                                      1.3%
     fund is suitable for them, they are advised to contact a financial                   0%
     adviser.                                                                            -5%
                                                                                                -6.2%                                               -6.1%
                                                                                         -10%
     Investment information                                                                                                                                                 -10.6%
                                                                                         -15%
     The performance of Class 1 Shares of the Fund is set out                                   1999    2000   2001   2002   2003     2004   2005   2006    2007    2008    2009

     below. The performance figures exclude the effect of the initial                                                                Date
     charge and are calculated on the basisof the price an investor
     would get on redeeming their Shares with dividend income
                                                                          Cumulative performance of Class 1 Shares in GBP of the Fund
     treated in the manner applicable to an individual resident in the
                                                                          from 31 October 2000 to 31 October 2010 is 84.34%.
     United Kingdom for tax purposes. The assets of the Fund are
     predominantly invested in assets denominated in USD. Where           Euro Performance
     the performance data is not determined in this currency              The annual returns of Class 1 Shares in Euro of the Fund from
     investors will be exposed to fluctuation in exchange rates which     31 December 1999 to 31 December 2009 have been as
     could enhance or diminish the total return. The annual charges       follows:
     applicable to the Fund are included in the calculation of
     performance.                                                                        15%                                                                        14.8%




                                                                                         10%
                                                                                                                                             8.4%
                                                                                                        7.6%

                                                                                                6.4%
                                                                                                               5.9%
                                                                           Performance




                                                                                         5%




                                                                                                                                     0.8%
                                                                                                                      0.2%
                                                                                         0%




                                                                                                                             -2.1%
                                                                                                                                                                            -2.7%

                                                                                                                                                            -3.9%
                                                                                         -5%                                                        -4.3%
                                                                                                1999    2000   2001   2002   2003    2004    2005   2006    2007    2008    2009

                                                                                                                                     Date



                                                                          Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                          from 31 December 1999 to 31 October 2010 is 23.77%.
                                                                                                                                                Threadneedle Investment Funds ICVC   69




USD Performance                                                                                        1. Risk to capital growth
The annual returns of Class 1 Shares in USD of the Fund from                                           The investment objective of the Fund treats the generation of
31 December 1999 to 31 December 2009 have been as                                                      income as a higher (or equivalent) priority than capital growth.
follows:                                                                                               Accordingly, fees and expenses charged in respect of the Fund
                                                                                                       may be charged against capital (instead of against income) in
               20%                                                                                     order to manage the level of income paid and/or available to
                                            18.1%
                                                    17.7%
                                                                                                       shareholders. This may result in capital erosion or may
                                                                                                       constrain capital growth.
               15%

                                                                                                       2. Fixed income Fund
                                                                                                       The interest rate on corporate bonds and most government
               10%
                                                            8.7%
                                                                                         9.2%
                                                                                                       bonds will not increase in line with inflation. Thus, over time,
                                                                           7.0%
                                                                                  6.6%
                                                                                                       the real value of investor’s income could fall.
 Performance




                5%



                              0.8%   0.5%                                                       0.5%

                0%




               -5%

                                                                   -5.9%



               -10%   -9.2%
                      1999    2000   2001   2002    2003    2004   2005    2006   2007   2008   2009

                                                            Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 December 1999 to 31 October 2010 is 102.96%.

Annual management charge
An annual management charge of 1.25% (Class 1 Shares) and
0.75% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.44% (Class 1) and 0.80% (Class 2).

Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to 7
March 2010 was 620%.

Distributions
Distributions are allocated on 8 March and 8 September, and
are paid on 7 May and 7 November.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:
70   Threadneedle Investment Funds ICVC




     Schedule 31 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            31 December 1999 to 31 December 2009 have been as
     Global Select Fund                                                     follows:
     Investment objective
     The investment objective is to achieve above average capital                          55%
                                                                                                  48.5%
     growth.                                                                               50%

                                                                                           45%

                                                                                           40%
     Investment policy                                                                     35%                                                      32.7%
     The investment policy is to invest the assets of the Fund                             30%
     primarily in equities issued by companies worldwide. The                              25%

     portfolio may be concentrated geographically or with respect to                       20%                                      16.5%
                                                                                                                                                                                    18.6%
                                                                                                                                                                   14.5%
     stock and sector positions, which may lead to increased levels                        15%                                              11.4%



                                                                             Performance
     of volatility. If the ACD considers it desirable, it may further                      10%
                                                                                                                                                            5.3%
                                                                                            5%
     invest in other securities (including fixed interest securities,
                                                                                            0%
     other equities and money market securities).                                          -5%
                                                                                                          -5.7%
                                                                                           -10%
     Investor Profile                                                                      -15%
                                                                                                                  -15.8%
     The Fund may be suitable for investors with a long term                               -20%
                                                                                                                                                                           -20.2%
     investment horizon seeking capital growth who are prepared to                         -25%

                                                                                           -30%
     tolerate large price fluctuations. If investors are uncertain if the                                                  -28.4%
                                                                                           -35%
     fund is suitable for them, they are advised to contact a financial                           1999    2000    2001     2002     2003    2004    2005    2006   2007    2008     2009

     adviser.                                                                                                                               Date


     Investment information                                                 Cumulative performance of Class 1 Shares in GBP of the Fund
     The performance of Class 1 Shares of the Fund is set out
                                                                            from 31 October 2000 to 31 October 2010 is 23.35%.
     below. The performance figures exclude the effect of the initial
     charge and are calculated on the basisof the price an investor         Euro Performance
     would get on redeeming their Shares with dividend income               The annual returns of Class 1 Shares in Euro of the Fund from
     treated in the manner applicable to an individual resident in the      31 December 1999 to 31 December 2009 have been as
     United Kingdom for tax purposes. The assets of the Fund are            follows:
     predominantly invested in assets denominated in USD. Where
     the performance data is not determined in this currency                               75%
                                                                                                  68.5%
     investors will be exposed to fluctuation in exchange rates which                      70%
                                                                                           65%
     could enhance or diminish the total return. The annual charges                        60%
     applicable to the Fund are included in the calculation of                             55%
                                                                                           50%
     performance.                                                                          45%
                                                                                           40%                                                      36.7%
                                                                                           35%
                                                                                                                                                                                    29.0%
                                                                                           30%
                                                                                           25%
                                                                                           20%
                                                                             Performance




                                                                                           15%                                              10.9%
                                                                                                                                    7.8%                    7.3%
                                                                                           10%                                                                     5.0%
                                                                                            5%
                                                                                            0%
                                                                                           -5%
                                                                                           -10%           -6.7%
                                                                                           -15%
                                                                                                                  -13.5%
                                                                                           -20%
                                                                                           -25%
                                                                                           -30%
                                                                                           -35%
                                                                                                                           -32.8%
                                                                                           -40%
                                                                                                                                                                           -39.3%
                                                                                           -45%
                                                                                                  1999    2000    2001     2002     2003    2004    2005    2006   2007    2008     2009

                                                                                                                                            Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 31 October 2000 to 31 October 2010 is -17.18%.
                                                                                                                                                        Threadneedle Investment Funds ICVC   71




USD Performance                                                                                                1. Concentrated portfolios
The annual returns of Class 1 Shares in USD of the Fund from                                                   Investors should note that this Fund has a concentrated
31 December 1999 to 31 December 2009 have been as                                                              portfolio (holds a limited number of investments and/or large
follows:                                                                                                       positions taken in a relatively small number of stocks). If one or
                                                                                                               more of those investments declines or is otherwise adversely
               50%                                                                                             affected, it may have a more pronounced effect on the Fund’s
                      43.8%
               45%                                                                                             value than if a larger number of investments were held or if the
               40%
                                                                                                               Fund had fewer individual positions.
               35%                                                                                     33.2%
                                                         29.5%
               30%
                                                                                                               Accordingly they may carry a higher degree of risk and net
               25%
                                                                 19.5% 18.6% 20.0%                             asset value volatility than a Fund which invests in a broad
               20%                                                                    16.5%
                                                                                                               range of companies or does not take large positions in a
               15%

               10%
                                                                                                               relatively small number of stocks.
                5%
 Performance




                0%                                                                                             2. Emerging market risk
               -5%                                                                                             The Fund invests in emerging markets, which may carry risks
               -10%                                                                                            associated with failed or delayed settlements of market
               -15%           -12.6%                                                                           transactions and with registration and custody of securities.
               -20%                    -18.0%                                                                  Emerging markets are generally less well regulated than their
                                                -20.8%
               -25%
                                                                                                               established counterparts. Investments in emerging markets
               -30%
                                                                                                               may involve a higher than average risk.
               -35%

               -40%

               -45%                                                                           -42.3%
                                                                                                               3. Taxation
                      1999    2000     2001     2002     2003    2004   2005   2006   2007    2008     2009    Tax, levies, duties and other fees or charges may apply to the
                                                                 Date                                          proceeds of sale of securities or the receipt of dividends or
                                                                                                               other income in some markets. It is also possible that the
Cumulative performance of Class 1 Shares in USD of the Fund                                                    current interpretation of the law or understanding of local
from 31 October 2000 to 31 October 2010 is 35.81%.                                                             practice might change, or that the law might be changed with
                                                                                                               retrospective effect. It is therefore possible that the Company
Annual management charge                                                                                       could become subject to additional taxation in such countries
An annual management charge of 1.5% (Class 1 Shares) and                                                       that is not anticipated either at the date of the Prospectus or
1.0% (Class 2 Shares) applies.                                                                                 when investments are made, valued or disposed of.


Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.69% (Class 1) and 1.05% (Class 2).

Portfolio turnover rate
The portfolio turnover rate for the Fund from 8 March 2009 to 7
March 2010 was 143%.

Distributions
Distributions are allocated on 8 March, and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:
72   Threadneedle Investment Funds ICVC




     Schedule 32 to Simplified Prospectus for Threadneedle                  GBP Performance
     Investment Funds ICVC, dated December 2010                             The annual returns of Class 1 Shares in GBP of the Fund from
                                                                            30 November 2005 to 31 December 2009 have been as
     Pan European Smaller Companies Fund                                    follows:
     Investment objective
     The investment objective is to achieve capital growth.                                45%                                                     43.5%

                                                                                           40%

     Investment policy                                                                     35%                                                                              31.6%

     The investment policy is to invest the assets of the Fund                             30%

     primarily in the equities of smaller companies domiciled in                           25%

     Continental Europe and the UK, or, with significant Continental                       20%
                                                                                                                                                           16.3%
     European or UK operations. If the ACD considers it desirable it                       15%

     may further invest in other securities (including fixed interest                      10%
     securities, other equities and money market securities).
                                                                             Performance
                                                                                            5%

                                                                                            0%
     Investor Profile                                                                      -5%
     The Fund may be suitable for investors with a long term                               -10%
     investment horizon seeking capital growth who are prepared to                         -15%
     tolerate large price fluctuations. If investors are uncertain if the
                                                                                           -20%
     fund is suitable for them, they are advised to contact a financial
                                                                                           -25%
     adviser.
                                                                                           -30%
                                                                                                                                                                   -30.8%
                                                                                           -35%
     Investment information                                                                       1999   2000   2001   2002   2003   2004   2005   2006    2007    2008     2009

     The performance of Class 1 Shares of the Fund is set out                                                                        Date
     below. The performance figures exclude the effect of the initial
     charge and are calculated on theof the price an investor would         Cumulative performance of Class 1 Shares in GBP from 30
     get on redeeming their Shares with dividend income treated in          November 2005 to 31 October 2010 is 99.94%.
     the manner applicable to an individual resident in the United
     Kingdom for tax purposes. The assets of the Fund are                   Euro Performance
     predominantly invested in assets denominated in Euro. Where            The annual returns of Class 1 Shares in Euro of the Fund from
     the performance data is not determined in this currency                30 November 2005 to 31 December 2009 have been as follows
     investors will be exposed to fluctuation in exchange rates which
     could enhance or diminish the total return. The annual charges                        50%                                                     46.4%
     applicable to the Fund are included in the calculation of                             45%
                                                                                                                                                                            43.2%

     performance.                                                                          40%
                                                                                           35%
                                                                                           30%

                                                                                           25%
                                                                                           20%
                                                                                           15%
                                                                                           10%                                                             6.7%

                                                                                            5%
                                                                             Performance




                                                                                            0%
                                                                                           -5%

                                                                                           -10%
                                                                                           -15%
                                                                                           -20%

                                                                                           -25%
                                                                                           -30%
                                                                                           -35%
                                                                                           -40%

                                                                                           -45%
                                                                                           -50%                                                                    -47.5%
                                                                                                  1999   2000   2001   2002   2003   2004   2005   2006    2007    2008     2009

                                                                                                                                     Date



                                                                            Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                            from 30 November 2005 to 31 October 2010 is 56.70%.
                                                                                                                                              Threadneedle Investment Funds ICVC   73




USD Performance                                                                                         Investing in smaller companies
The annual returns of Class 1 Shares in USD of the Fund from                                            The Fund invests in the securities of smaller companies.
30 November 2005 to 31 December 2009 have been as                                                       Accordingly, the Fund may fluctuate in value more than other
follows:                                                                                                Funds because of the greater volatility of share prices of
                                                                                                        smaller companies.
               70%
                                                                       63.6%
               65%
               60%
               55%
                                                                                                47.8%
               50%
               45%
               40%
               35%
               30%
               25%
                                                                               18.3%
               20%
               15%
               10%
 Performance




                5%
                0%
               -5%
               -10%
               -15%
               -20%
               -25%
               -30%
               -35%
               -40%
               -45%
               -50%
               -55%                                                                    -50.1%

                      1999   2000   2001   2002   2003   2004   2005   2006    2007    2008     2009

                                                         Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 30 November 2005 to 31 October 2010 is 84.74%.

Annual management charge
An annual management charge of 1.5% (Class 1 Shares) and
1.0% (Class 2 Shares) applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 1.70% (Class 1) and 1.07% (Class 2)

Portfolio turnover rate
The portfolio turnover rate from 8 March 2009 to 7 March 2010
was 49%.

Distributions
Distributions are allocated on 8 March and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:
74   Threadneedle Investment Funds ICVC




     Schedule 33 to Simplified Prospectus for Threadneedle                   GBP Performance
     Investment Funds ICVC, dated December 2010                              The annual returns of Class 1 Shares in GBP of the Fund from
                                                                             31 January 2008 to 31 December 2009 have been as follows:
     UK Cash Fund*
     Investment objective                                                                   2%

     The investment objective is to achieve a high level of capital
     security and provide income.

     Investment policy                                                                                                                                                  1.3%


     The investment policy is to invest primarily in Sterling
     denominated cash deposits and certificates of deposit. The                             1%

     ACD may also invest up to 50% of the total assets of the Fund
     in commercial paper. The investment policy is subject to the

                                                                              Performance
     following credit rating restrictions:

     (i)     Bank deposits shall be held with and certificates of
                                                                                            0%
             deposit shall be issued by a deposit taking institution with
             a minimum long term credit rating of either (a) Standard
             & Poor’s: AA-, or (b) Moody’s AA3;

     (ii)    Commercial paper issued by institutions with a minimum
             short term credit rating either (a) Standard & Poor’s: A1,                     -1%
             or (b) Moody’s P1, and with a maximum term to maturity                               1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009

             of 184 days.                                                                                                            Date


     Investor Profile                                                        Cumulative performance of Class 1 Shares in GBP of the Fund
     The Fund may be suitable for investors with a short term                from 31 January 2008 to 31 October 2010 is 2.21%.
     investment horizon seeking income and a high level of capital
     security. Please note that the Fund may not be suitable if              Euro Performance
     interest rates are very low given that investment returns may           The annual returns of Class 1 Shares in Euro of the Fund from
     not exceed the liabilities/payments of the Fund which could             31 January 2008 to 31 December 2009 have been as follows:
     result in negative returns. If investors are uncertain if the fund is
     suitable for them, they are advised to contact a financial                             15%
     adviser.

     Investment information
     The performance of Class 1 Shares of the Fund is set out                                                                                                           10.2%
                                                                                            10%
     below. The performance figures exclude the effect of the initial
     charge and are calculated on theof the price an investor would
     get on redeeming their Shares with dividend income treated in
     the manner applicable to an individual resident in the United
                                                                              Performance




     Kingdom for tax purposes. The assets of the Fund are                                   5%

     predominantly invested in assets denominated in GBP. Where
     the performance data is not determined in this currency
     investors will be exposed to fluctuation in exchange rates which
     could enhance or diminish the total return. The annual charges                         0%
     applicable to the Fund are included in the calculation of
     performance.


                                                                                            -5%
                                                                                                  1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009

                                                                                                                                     Date



                                                                             Cumulative performance of Class 1 Shares in Euro of the Fund
                                                                             from 31 January 2008 to 31 October 2010 is -12.44%.
                                                                                                                                           Threadneedle Investment Funds ICVC   75




USD Performance                                                                                    2. Liquidity Risk
The annual returns of Class 1 Shares in USD of the Fund from                                       In extreme market conditions it may be difficult for a Fund to
31 January 2008 to 31 December 2009 have been as follows:                                          realise an investment at short notice without suffering a
                                                                                                   discount to market value. In such circumstances the investor
               15%                                                                                 may suffer a delay in realising his investment or may incur a
                                                                                           13.8%
                                                                                                   dilution adjustment.

                                                                                                   3. Risk to capital growth
               10%
                                                                                                   The investment objective of the Fund treats the generation of
                                                                                                   income as a higher (or equivalent) priority than capital growth.
                                                                                                   Accordingly, fees and expenses charged in respect of the Fund
                                                                                                   may be charged against capital (instead of against income) in
                                                                                                   order to manage the level of income paid and/or available to
 Performance




               5%
                                                                                                   shareholders. This may result in capital erosion or may
                                                                                                   constrain capital growth.

                                                                                                   *Please note that the Fund UK Cash Fund is currently
               0%                                                                                  registered for public offer in the UK only and it is not
                                                                                                   intended to be registered outside the UK unless otherwise
                                                                                                   decided by the ACD.


               -5%
                     1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009

                                                        Date



Cumulative performance of Class 1 Shares in USD of the Fund
from 31 January 2008 to 31 October 2010 is -17.80%.

Annual management charge
An annual management charge of 0.5% (Class 1 Shares)
applies.

Total expense ratio
The total expense ratio from 8 March 2009 to 7 March 2010
was 0.30% (Class 1).

Portfolio turnover rate
The portfolio turnover rate from 8 March 2009 to 7 March 2010
was -261%

Distributions
Distributions are allocated on 8 March and are paid on 7 May.

Risk factors
The risk factors that are associated with investing in
Threadneedle Investment Funds ICVC are set out in this
Simplified Prospectus and are described in more detail in the
Prospectus. In addition to those risks, investors should
consider the following risks that are associated with investing in
the Fund:

1. No guarantee of capital
Investors should note that the Funds do not offer any form of
guarantee with respect to investment performance and no form
of capital protection will apply.
76   Threadneedle Investment Funds ICVC




     Changes information for UK                                         detailed on the following pages. The estimated effect of these
     investors                                                          fees is included in the Total expense ratio; this is also taken
                                                                        into account in the daily calculation of the share price of the
     This Supplement forms part of the Prospectus (the                  Funds.
     “Prospectus”) dated December 2010 from the
     Threadneedle Investment Funds ICVC (the “Company”).                For Threadneedle Investment Funds, the ACD (Authorised
     This Supplement should be read in the context of and               Corporate Director – the manager of the funds) pays a number
     together with the full Threadneedle Investment Funds ICVC          of expenses and costs of the funds relating to, for example,
     Prospectus.                                                        maintaining the register, publication of prices, and printing and
                                                                        distributing Reports and Accounts and the Prospectus. In return
                                                                        for this the ACD receives a payment of 0.175% per annum
     Your investment
                                                                        If the expenses of a fund exceed its income the excess may be
     You invest in the fund by subscribing for Class 1 or Class 2
                                                                        taken from capital.
     shares. Class 1 shares can be held within a Threadneedle ISA.
     Initial investments into Class 1 shares must be for a minimum
     of £2,000. Subsequent investments must be £1,000 and a
                                                                        How much will any advice cost?
     minimum of £500 must be maintained in each fund in which
     you have invested.                                                 Your financial adviser will give you details about the cost of any
                                                                        advice provided. The amount will depend on the size of your
     Please refer to the section below entitled “what is an ISA” for    investment. The cost of this advice will normally be paid for out
     details of the maximum amount you can invest in a                  of the charges we receive. Some financial advisers may,
     Threadneedle ISA in each tax year                                  instead, charge you a fee for their services.


     There is no maximum amount you can invest outside an ISA.          How will charges and expenses
                                                                        affect my investment?
     You may of course redeem your investment for cash at any
     time. Threadneedle may at its discretion accept lower              The following figures illustrate the effect of charges and
     subscriptions and balances than the minimum amounts noted          expenses on an investment of £2,000 over a period of 1, 3, 5
     above.                                                             and 10 years. The amount you get back is not guaranteed and
                                                                        will depend on how your investment grows and on the tax
     What are the current charges?                                      treatment of your investment. This means that you could get
                                                                        back less than you invest. The figures are for illustrative
     Initial Charge                                                     purposes only. These figures do not take into account any
     An initial charge is payable when you invest in a fund. The        payments from the Cash Withdrawal Facility.
     initial charge is 3.75% of the amount invested. For all ISA
     Transfers, the initial charge is reduced by 0.75% to 3.00%         We have assumed a growth rate of 6.0% a year (including
                                                                        Back-to-Back Accounts) for direct investments into the Fund
     Annual Charge                                                      (4% for the UK Cash Fund). This is a standard growth rate
     There is an annual management charge made to cover the             used by all managers for comparison. However, charges may
     day-to-day expenses of managing the investments of the funds.      vary.
     The annual management charges applying to shares in each
     fund are set out in the charges tables on the following pages.     In the case of Class 1 shares and Class 1 Hedged Shares the
                                                                        ACD is entitled to make an initial charge, which is included in
     These management fees are normally taken from any income           the buying price of the shares of the creation price of the
     the funds may receive. However, in circumstances where the         shares.
     provision of income is of a higher or equal priority to the
     provision of capital growth, the annual management charge          Reinvestment of Income
     may be taken from capital instead of income. This may erode        For those Funds which allow income to be reinvested, investors
     capital or constrain the potential for capital growth (the funds   may elect to use their dividend income to purchase new Shares
     affected are listed in the previous section: Simplified            in the Fund. Where they do so they will be entitled to a discount
     Prospectus).                                                       on the initial charge for any new shares purchased using this
                                                                        dividend income. For UK investors this will mean a discount of
     Other costs payable out of the funds include auditors’ fees, the   up to 2% on the initial charge of 3.75%.
     depositary’s fees, fees of the Financial Services Authority and
     other taxation and duties. The total of these for each fund is
                                                                                                                 Threadneedle Investment Funds ICVC   77




Threadneedle UK Fund                                                    Threadneedle European Bond Fund
Available in the Threadneedle ISA                                       Available in the Threadneedle ISA


                                                 Income reinvested                                                    Income reinvested
                                                            What you                                                            What you
                                                            might get                                                           might get
                                                 Effect of    back at                                                Effect of    back at
 At the end     Investment   Income           deductions        6.0%     At the end     Investment   Income       deductions        6.0%
 of year            to date Taken (£)          to date (£) growth (£)    of year            to date Taken (£)      to date (£) growth (£)
 1                  £2,000               62           112      2,008     1                  £2,000          55              103          2,017
 3                  £2,000           188              197      2,185     3                  £2,000        168               166          2,216
 5                  £2,000           314              299      2,377     5                  £2,000        286               243          2,434
 10                 £2,000           631              646      2,936     10                 £2,000        603               505          3,077


The last lines of these tables show that over 10 years the effect       The last lines of these tables show that over 10 years the effect
of total charges and expenses could amount to £646 if income            of total charges and expenses could amount to £505 if income
is reinvested. Putting it another way, this would have the same         is reinvested. Putting it another way, this would have the same
effect as bringing investment growth from 6.0% a year down to           effect as bringing investment growth from 6.0% a year down to
3.91% a year where income is reinvested.                                4.40% a year where income is reinvested.

Threadneedle UK Equity Income Fund                                      Threadneedle American Fund
Available in the Threadneedle ISA                                       Available in the Threadneedle ISA


                                                 Income reinvested                                                    Income reinvested
                                                            What you                                                            What you
                                                            might get                                                           might get
                                                 Effect of    back at                                                Effect of    back at
 At the end     Investment   Income           deductions        6.0%     At the end     Investment   Income       deductions        6.0%
 of year            to date Taken (£)          to date (£) growth (£)    of year            to date Taken (£)      to date (£) growth (£)
 1                  £2,000          75                111      2,009     1                  £2,000          55              112          2,008
 3                  £2,000        226                 193      2,189     3                  £2,000        168               197          2,185
 5                  £2,000        378                 292      2,384     5                  £2,000        286               298          2,378
 10                 £2,000        765                 628      2,954     10                 £2,000        603               644          2,398


The last lines of these tables show that over 10 years the effect       The last lines of these tables show that over 10 years the effect
of total charges and expenses could amount to £628 if income            of total charges and expenses could amount to £644 if income
is reinvested. Putting it another way, this would have the same         is reinvested. Putting it another way, this would have the same
effect as bringing illustrated investment growth from 6.0% a            effect as bringing investment growth from 6.0% a year down to
year down to 3.98% a year where income is reinvested.                   3.92% a year where income is reinvested.
78   Threadneedle Investment Funds ICVC




     Threadneedle American Select Fund                                      Threadneedle Asia Fund
     Available in the Threadneedle ISA                                      Available in the Threadneedle ISA


                                                     Income reinvested                                                  Income reinvested
                                                                What you                                                           What you
                                                                might get                                                          might get
                                                     Effect of    back at                                               Effect of    back at
       At the end         Investment   Income     deductions        6.0%     At the end     Investment   Income      deductions        6.0%
       of year                to date Taken (£)    to date (£) growth (£)    of year            to date Taken (£)     to date (£) growth (£)
       1                        £2,000      55            112      2,008     1                  £2,000          55           112      2,008
       3                        £2,000     168            197      2,185     3                  £2,000        168            198      2,184
       5                        £2,000     286            298      2,378     5                  £2,000        286            300      2,377
       10                       £2,000     603            644      2,398     10                 £2,000        603            647      2,934


     The last lines of these tables show that over 10 years the effect      The last lines of these tables show that over 10 years the effect
     of total charges and expenses could amount to £644 if income           of total charges and expenses could amount to £647 if income
     is reinvested. Putting it another way, this would have the same        is reinvested. Putting it another way, this would have the same
     effect as bringing investment growth from 6.0% a year down to          effect as bringing investment growth from 6.0% a year down to
     3.92% a year where income is reinvested.                               3.91% a year where income is reinvested.

     Threadneedle American Smaller Companies                                Threadneedle Dollar Bond Fund
     Fund                                                                   Available in the Threadneedle ISA
     Available in the Threadneedle ISA
                                                                                                                        Income reinvested
                                                     Income reinvested                                                             What you
                                                                What you                                                           might get
                                                                might get                                               Effect of    back at
                                                     Effect of    back at    At the end     Investment   Income      deductions        6.0%
       At the end         Investment   Income     deductions        6.0%     of year            to date Taken (£)     to date (£) growth (£)
       of year                to date Taken (£)    to date (£) growth (£)    1                  £2,000          55           103      2,017
       1                        £2,000      55            112      2,008     3                  £2,000        168            168      2,214
       3                        £2,000     168            198      2,184     5                  £2,000        286            247      2,430
       5                        £2,000     286            301      2,376     10                 £2,000        603            515      3,067
       10                       £2,000     603            650      2,932
                                                                            The last lines of these tables show that over 10 years the effect
     The last lines of these tables show that over 10 years the effect      of total charges and expenses could amount to £515 if income
     of total charges and expenses could amount to £650 if income           is reinvested. Putting it another way, this would have the same
     is reinvested. Putting it another way, this would have the same        effect as bringing investment growth from 6.0% a year down to
     effect as bringing investment growth from 6.0% a year down to          4.37% a year where income is reinvested.
     3.90% a year where income is reinvested.
                                                                                                             Threadneedle Investment Funds ICVC   79




Threadneedle Emerging Market Bond Fund                              Threadneedle European Fund
Available in the Threadneedle ISA                                   Available in the Threadneedle ISA


                                            Income reinvested                                                     Income reinvested
                                                       What you                                                             What you
                                                       might get                                                            might get
                                            Effect of    back at                                                 Effect of    back at
 At the end     Investment   Income      deductions        6.0%      At the end     Investment   Income       deductions        6.0%
 of year            to date Taken (£)     to date (£) growth (£)     of year            to date Taken (£)      to date (£) growth (£)
 1                  £2,000          55           112      2,008      1                  £2,000          55              112          2,008
 3                  £2,000        168            198      2,184      3                  £2,000        168               197          2,185
 5                  £2,000        286            301      2,375      5                  £2,000        286               300          2,377
 10                 £2,000        603            651      2,931      10                 £2,000        603               647          2,934


The last lines of these tables show that over 10 years the effect   The last lines of these tables show that over 10 years the effect
of total charges and expenses could amount to £651 if income        of total charges and expenses could amount to £647 if income
is reinvested. Putting it another way, this would have the same     is reinvested. Putting it another way, this would have the same
effect as bringing investment growth from 6.0% a year down to       effect as bringing investment growth from 6.0% a year down to
3.90% a year where income is reinvested.                            3.91% a year where income is reinvested.

Threadneedle European Corporate Fund                                Threadneedle European High Yield Bond
Available outside Threadneedle ISA                                  Fund
                                                                    Available outside Threadneedle ISA
                                            Income reinvested
                                                       What you                                                   Income reinvested
                                                       might get                                                            What you
                                            Effect of    back at                                                            might get
 At the end     Investment   Income      deductions        6.0%                                                  Effect of    back at
 of year            to date Taken (£)     to date (£) growth (£)     At the end     Investment   Income       deductions        6.0%
 1                  £2,000          55           108      2,012      of year            to date Taken (£)      to date (£) growth (£)

 3                  £2,000        168            185      2,197      1                  £2,000          55              107          2,221

 5                  £2,000        286            277      2,400      3                  £2,000        168               181          2,201

 10                 £2,000        603            591      2,991      5                  £2,000        286               270          2,406
                                                                     10                 £2,000        603               574          3,008
The last lines of these tables show that over 10 years the effect
of total charges and expenses could amount to £591 if income        The last lines of these tables show that over 10 years the effect
is reinvested. Putting it another way, this would have the same     of total charges and expenses could amount to £574 if income
effect as bringing investment growth from 6.0% a year down to       is reinvested. Putting it another way, this would have the same
4.11% a year where income is reinvested.                            effect as bringing investment growth from 6.0% a year down to
                                                                    4.16% a year where income is reinvested.
80   Threadneedle Investment Funds ICVC




     Threadneedle European Select Fund                                      Threadneedle Global Bond Fund
     Available in theThreadneedle ISA                                       Available in the Threadneedle ISA


                                                     Income reinvested                                                  Income reinvested
                                                                What you                                                           What you
                                                                might get                                                          might get
                                                     Effect of    back at                                               Effect of    back at
       At the end         Investment   Income     deductions        6.0%     At the end     Investment   Income      deductions        6.0%
       of year                to date Taken (£)    to date (£) growth (£)    of year            to date Taken (£)     to date (£) growth (£)
       1                        £2,000      55            112      2,008     1                  £2,000          55           107      2,013
       3                        £2,000     168            197      2,185     3                  £2,000        168            181      2,201
       5                        £2,000     286            299      2,377     5                  £2,000        286            271      2,406
       10                       £2,000     603            646      2,936     10                 £2,000        603            575      3,007


     The last lines of these tables show that over 10 years the effect      The last lines of these tables show that over 10 years the effect
     of total charges and expenses could amount to £646 if income           of total charges and expenses could amount to £575 if income
     is reinvested. Putting it another way, this would have the same        is reinvested. Putting it another way, this would have the same
     effect as bringing investment growth from 6.0% a year down to          effect as bringing investment growth from 6.0% a year down to
     3.91% a year where income is reinvested.                               4.16% a year where income is reinvested.

     Threadneedle European Smaller Companies                                Threadneedle Global Select Fund
     Fund                                                                   Available in the Threadneedle ISA
     Available in the Threadneedle ISA
                                                                                                                        Income reinvested
                                                     Income reinvested                                                             What you
                                                                What you                                                           might get
                                                                might get                                               Effect of    back at
                                                     Effect of    back at    At the end     Investment   Income      deductions        6.0%
       At the end         Investment   Income     deductions        6.0%     of year            to date Taken (£)     to date (£) growth (£)
       of year                to date Taken (£)    to date (£) growth (£)    1                  £2,000          55           112      2,008
       1                        £2,000      55            112      2,008     3                  £2,000        168            197      2,185
       3                        £2,000     168            197      2,185     5                  £2,000        286            299      2,377
       5                        £2,000     286            299      2,377     10                 £2,000        603            646      2,936
       10                       £2,000     603            646      2,936
                                                                            The last lines of these tables show that over 10 years the effect
     The last lines of these tables show that over 10 years the effect      of total charges and expenses could amount to £646 if income
     of total charges and expenses could amount to £646 if income           is reinvested. Putting it another way, this would have the same
     is reinvested. Putting it another way, this would have the same        effect as bringing investment growth from 6.0% a year down to
     effect as bringing investment growth from 6.0% a year down to          3.91% a year where income is reinvested.
     3.91% a year where income is reinvested.
                                                                                                             Threadneedle Investment Funds ICVC   81




Threadneedle High Yield Bond Fund                                   Threadneedle Japan Smaller Companies
Available outside Threadneedle ISA                                  Fund
                                                                    Available in the Threadneedle ISA
                                            Income reinvested
                                                       What you                                                   Income reinvested
                                                       might get                                                            What you
                                            Effect of    back at                                                            might get
 At the end     Investment   Income      deductions        6.0%                                                  Effect of    back at
 of year            to date Taken (£)     to date (£) growth (£)     At the end     Investment   Income       deductions        6.0%
 1                  £2,000          55           107      2,013      of year            to date Taken (£)      to date (£) growth (£)

 3                  £2,000         168           182      2,201      1                  £2,000          55              112          2,008

 5                  £2,000         286           271      2,406      3                  £2,000        168               199          2,183

 10                 £2,000         603           575      3,007      5                  £2,000        286               302          2,374
                                                                     10                 £2,000        603               653          2,929
The last lines of these tables show that over 10 years the effect
of total charges and expenses could amount to £575 if income        The last lines of these tables show that over 10 years the effect
is reinvested. Putting it another way, this would have the same     of total charges and expenses could amount to £653 if income
effect as bringing investment growth from 6.0% a year down to       is reinvested. Putting it another way, this would have the same
4.16% a year where income is reinvested.                            effect as bringing investment growth from 6.0% a year down to
                                                                    3.89% a year where income is reinvested.
Threadneedle Japan Fund
Availablein the Threadneedle ISA                                    Threadneedle Latin American Fund
                                                                    Available in the Threadneedle ISA
                                            Income reinvested
                                                       What you                                                   Income reinvested
                                                       might get                                                            What you
                                            Effect of    back at                                                            might get
 At the end     Investment   Income      deductions        6.0%                                                  Effect of    back at
 of year            to date Taken (£)     to date (£) growth (£)     At the end     Investment   Income       deductions        6.0%
 1                  £2,000          55           112      2,008      of year            to date Taken (£)      to date (£) growth (£)

 3                  £2,000         168           198      2,184      1                  £2,000          55              113          2,007

 5                  £2,000         286           301      2,375      3                  £2,000        168               201          2,181

 10                 £2,000         603           651      2,931      5                  £2,000        286               305          2,371
                                                                     10                 £2,000        603               661          2,921
The last lines of these tables show that over 10 years the effect
of total charges and expenses could amount to £651 if income        The last lines of these tables show that over 10 years the effect
is reinvested. Putting it another way, this would have the same     of total charges and expenses could amount to £661 if income
effect as bringing investment growth from 6.0% a year down to       is reinvested. Putting it another way, this would have the same
3.90% a year where income is reinvested.                            effect as bringing investment growth from 6.0% a year down to
                                                                    3.86% a year where income is reinvested.
82   Threadneedle Investment Funds ICVC




     Threadneedle Monthly Extra Income Fund                                 Threadneedle Pan European Smaller
     Available in the Threadneedle ISA                                      Companies Fund
                                                                            Available in the Threadneedle ISA
                                                     Income reinvested
                                                                What you                                                Income reinvested
                                                                might get                                                          What you
                                                     Effect of    back at                                                          might get
       At the end         Investment   Income     deductions        6.0%                                                Effect of    back at
       of year                to date Taken (£)    to date (£) growth (£)    At the end     Investment   Income      deductions        6.0%
       1                        £2,000      55            106      2,014     of year            to date Taken (£)     to date (£) growth (£)

       3                        £2,000     168            178      2,204     1                  £2,000          55           112      2,008

       5                        £2,000     286            265      2,411     3                  £2,000        168            198      2,184

       10                       £2,000     603            561      3,021     5                  £2,000        286            301      2,376
                                                                             10                 £2,000        603            650      2,932
     The last lines of these tables show that over 10 years the effect
     of total charges and expenses could amount to £561 if income           The last lines of these tables show that over 10 years the effect
     is reinvested. Putting it another way, this would have the same        of total charges and expenses could amount to £650 if income
     effect as bringing investment growth from 6.0% a year down to          is reinvested. Putting it another way, this would have the same
     4.21% a year where income is reinvested.                               effect as bringing investment growth from 6.0% a year down to
                                                                            3.90% a year where income is reinvested.
     Threadneedle Pan European Fund
     Available in the Threadneedle ISA                                      Threadneedle Sterling Bond Fund
                                                                            Available in the Threadneedle ISA
                                                     Income reinvested
                                                                What you                                                Income reinvested
                                                                might get                                                          What you
                                                     Effect of    back at                                                          might get
       At the end         Investment   Income     deductions        6.0%                                                Effect of    back at
       of year                to date Taken (£)    to date (£) growth (£)    At the end     Investment   Income      deductions        6.0%
       1                        £2,000      55            113      2,007     of year            to date Taken (£)     to date (£) growth (£)

       3                        £2,000     168            199      2,183     1                  £2,000          55           102      2,018

       5                        £2,000     286            303      2,373     3                  £2,000        168            166      2,216

       10                       £2,000     603            655      2,926     5                  £2,000        286            242      2,434
                                                                             10                 £2,000        603            504      3,078
     The last lines of these tables show that over 10 years the effect
     of total charges and expenses could amount to £655 if income           The last lines of these tables show that over 10 years the effect
     is reinvested. Putting it another way, this would have the same        of total charges and expenses could amount to £504 if income
     effect as bringing investment growth from 6.0% a year down to          is reinvested. Putting it another way, this would have the same
     3.88% a year where income is reinvested.                               effect as bringing investment growth from 6.0% a year down to
                                                                            4.41% a year where income is reinvested.
                                                                                                             Threadneedle Investment Funds ICVC   83




Threadneedle Strategic Bond Fund                                    Threadneedle UK Corporate Bond Fund
Available in the Threadneedle ISA                                   Available in the Threadneedle ISA


                                            Income reinvested                                                     Income reinvested
                                                       What you                                                             What you
                                                       might get                                                            might get
                                            Effect of    back at                                                 Effect of    back at
 At the end     Investment   Income      deductions        6.0%      At the end     Investment   Income       deductions        6.0%
 of year            to date Taken (£)     to date (£) growth (£)     of year            to date Taken (£)      to date (£) growth (£)
 1                  £2,000          55           107      2,013      1                  £2,000          55                98         2,022
 3                  £2,000        168            182      2,200      3                  £2,000        168               150          2,232
 5                  £2,000        286            271      2,405      5                  £2,000        286               212          2,464
 10                 £2,000        603            577      3,005      10                 £2,000        603               428          3,154


The last lines of these tables show that over 10 years the effect   The last lines of these tables show that over 10 years the effect
of total charges and expenses could amount to £577 if income        of total charges and expenses could amount to £428 if income
is reinvested. Putting it another way, this would have the same     is reinvested. Putting it another way, this would have the same
effect as bringing investment growth from 6.0% a year down to       effect as bringing investment growth from 6.0% a year down to
4.16% a year where income is reinvested.                            4.66% a year where income is reinvested.

Threadneedle UK Cash Fund                                           Threadneedle UK Growth and Income Fund
Available outside Threadneedle ISA                                  Available in the Threadneedle ISA


                                            Income reinvested                                                     Income reinvested
                                                       What you                                                             What you
                                                       might get                                                            might get
                                            Effect of    back at                                                 Effect of    back at
 At the end     Investment   Income      deductions        6.0%      At the end     Investment   Income       deductions        6.0%
 of year            to date Taken (£)     to date (£) growth (£)     of year            to date Taken (£)      to date (£) growth (£)
 1                  £2,000          55            85      2,035      1                  £2,000          55              111          2,009
 3                  £2,000        168            109      2,273      3                  £2,000        168               194          2,188
 5                  £2,000        286            137      2,540      5                  £2,000        286               293          2,384
 10                 £2,000        603            230      3,351      10                 £2,000        603               630          2,952


The last lines of these tables show that over 10 years the effect   The last lines of these tables show that over 10 years the effect
of total charges and expenses could amount to £230 if income        of total charges and expenses could amount to £630 if income
is reinvested. Putting it another way, this would have the same     is reinvested. Putting it another way, this would have the same
effect as bringing investment growth from 6.0% a year down to       effect as bringing investment growth from 6.0% a year down to
5.30% a year where income is reinvested.                            3.97% a year where income is reinvested.
84   Threadneedle Investment Funds ICVC




     Threadneedle UK Institutional Fund                                     Threadneedle UK Smaller Companies Fund
     Available in the Threadneedle ISA                                      Available in the Threadneedle ISA


                                                     Income reinvested                                                  Income reinvested
                                                                What you                                                           What you
                                                                might get                                                          might get
                                                     Effect of    back at                                               Effect of    back at
       At the end         Investment   Income     deductions        6.0%     At the end     Investment   Income      deductions        6.0%
       of year                to date Taken (£)    to date (£) growth (£)    of year            to date Taken (£)     to date (£) growth (£)
       1                        £2,000      55            112      2,008     1                  £2,000          55           112      2,008
       3                        £2,000     168            197      2,185     3                  £2,000        168            199      2,184
       5                        £2,000     286            298      2,378     5                  £2,000        286            302      2,375
       10                       £2,000     603            644      2,938     10                 £2,000        603            652      2,930


     The last lines of these tables show that over 10 years the effect      The last lines of these tables show that over 10 years the effect
     of total charges and expenses could amount to £644 if income           of total charges and expenses could amount to £652 if income
     is reinvested. Putting it another way, this would have the same        is reinvested. Putting it another way, this would have the same
     effect as bringing investment growth from 6.0% a year down to          effect as bringing investment growth from 6.0% a year down to
     3.92% a year where income is reinvested.                               3.89% a year where income is reinvested.

     Threadneedle UK Select Fund                                            Threadneedle UK Monthly Income Fund
     Available in the Threadneedle ISA                                      Available in the Threadneedle ISA


                                                     Income reinvested                                                  Income reinvested
                                                                What you                                                           What you
                                                                might get                                                          might get
                                                     Effect of    back at                                               Effect of    back at
       At the end         Investment   Income     deductions        6.0%     At the end     Investment   Income      deductions        6.0%
       of year                to date Taken (£)    to date (£) growth (£)    of year            to date Taken (£)     to date (£) growth (£)
       1                        £2,000      55            112      2,008     1                  £2,000          55           111      2,009
       3                        £2,000     168            198      2,184     3                  £2,000        168            193      2,189
       5                        £2,000     286            300      2,376     5                  £2,000        286            291      2,385
       10                       £2,000     603            649      2,933     10                 £2,000        603            626      2,956


     The last lines of these tables show that over 10 years the effect      The last lines of these tables show that over 10 years the effect
     of total charges and expenses could amount to £649 if income           of total charges and expenses could amount to £626 if income
     is reinvested. Putting it another way, this would have the same        is reinvested. Putting it another way, this would have the same
     effect as bringing investment growth from 6.0% a year down to          effect as bringing investment growth from 6.0% a year down to
     3.90% a year where income is reinvested.                               3.98% a year where income is reinvested.
                                                                                                               Threadneedle Investment Funds ICVC   85




What is an ISA?                                                      What is the Back-to-Back ISA and
                                                                     how does it work?
ISAs are available to all UK residents over the age of 18 and
allow you to invest in the following components in a tax-free        You may choose to invest now for the current tax year and,
environment:                                                         through the Back-to-Back ISA, also invest at the same time for
                                                                     an ISA for the next and future tax years. Alternatively, if you
   Cash including qualifying insurance products treated as           have already invested in an ISA for the current tax year, you
   cash (not available through the Threadneedle ISA).                can invest in an ISA for the following tax year and for the
                                                                     following tax years thereafter.
   Stocks and shares (including unit trusts, Open-Ended
   Investment Companies (OEICs), investment trusts and               Any investment for the current tax year will be made straight
   qualifying insurance products treated as stocks and shares).      away. Any ISA investment for the subsequent tax year will be
                                                                     held in the fund in a Back-to Back Account outside the ISA until
Cash ISAs are also available to 16 and 17 year olds, although        the new tax year.
not available through the Threadneedle ISA because
Threadneedle only offers a stocks and shares ISA.                    During the first few days of the new tax year, the maximum
                                                                     allowance (where available) will be transferred from being an
Since 6 April 2008 the terms “Mini ISA” and “Maxi ISA” are no        ordinary fund investment into an investment in the fund held
longer applicable and you are now able to subscribe to one           within an ISA.
Cash ISA and to one Stocks and Shares ISA in each tax year.
                                                                     If, following conversion into the new ISA, a residual amount is
For the 2010/2011 tax year the maximum overall investment in         left in your original chosen fund(s) we will not automatically
ISA accounts for all investors is £10,200. The full £10,200 may      convert this into an ISA in the following tax year. The residual
be invested in a Stocks and Shares ISA or alternatively a            amount will remain invested in your chosen fund(s). If this
maximum amount of £5,100 can be invested in a Cash ISA and           amount is less than £500, we reserve the right to sell the
the balance i.e. the remaining £5,100, may be invested in a          shares and send you a cheque for the proceeds.
Stocks and Shares ISA.
                                                                     If the value of your Back-to-Back investment falls, the amount
The funds that are available through the Threadneedle ISA are        subscribed to the ISA on the conversion date will be less than
indicated in the Prospectus.                                         your original investment.

Taxation – Investing within an ISA                                   If you invest more than the current maximum overall investment
                                                                     (as detailed above) the application form allows you to request
All income and capital growth generated within your ISA is free      that we continue to automatically convert your investment into
of UK income tax and Capital Gains Tax. Income allocation will       an ISA beyond the current tax year (see section D on the ISA
be in the form of dividend distributions or, in the case of bond     application form).
funds, interest distributions. Interest distributions are received
net of 20% income tax that is fully reclaimable by the ISA           If your investment is in more than one Threadneedle fund then
Manager without time limit. Threadneedle will make any               at the time of conversion in the new tax year, the amount that
necessary claims to the HM Revenue & Customs and you do              will be converted will be in proportion to the current value of
not have to declare this income on your tax return. Please note      those investments at the time (not the original investment).
that the favourable tax treatment for ISAs may not be
maintained.                                                          Where it appears that there will be insufficient investment to
                                                                     utilise the full ISA allowance in the following tax year you will be
How do I invest in an ISA?                                           notified of this.


You must make your investment using a Threadneedle ISA,              You can instruct us to cease future Back-to-Back ISA
ISA Transfer or Fund application form. Your application must         conversions at any time by giving us two weeks notice in
be returned directly to us with your cheque. If you wish to top      writing.
up your ISA to the maximum amount allowed within the current
tax year (as detailed above) we need to receive your request in      There will be no initial charge for converting Threadneedle
writing and your cheque by 5 April 2011.                             Investment Funds into an ISA.
86   Threadneedle Investment Funds ICVC




     What documents will I receive after                                  What is the Threadneedle Cash
     I invest?                                                            Withdrawal Facility?
     You will be sent a Contract Note(s), the next Business Day           Threadneedle offers the facility when investing in any fund to
     after your investment is made. This will give details of the         choose a level of regular Cash Withdrawal you would like to
     number and price of shares purchased and will include details        receive (maximum 7.5% p.a. of your investment). Simply
     of your cancellation rights. Please keep this in a safe place as     specify the amount you want to receive, as either a fixed
     no certificate will be issued.                                       amount or a percentage of your investment value, and decide
                                                                          how frequently you want to be paid: monthly, quarterly, half
     At least once a year you will receive a review of your               yearly or annually.
     investments and a statement and valuation of your investments
     by post. If you invest in an ISA, you may also receive an annual     You select the start date of your first payment. The payment
     notice.                                                              will be made on or around the first of the month at the
                                                                          frequency you have selected. We will write to you before the
     Twice a year you will receive, by post, a copy of the short-form     first payment is made to confirm your payment instructions.
     Report and Accounts. This gives details of current investments
     and a commentary from the fund manager.                              We will sell shares or units to meet the required payment
                                                                          amount at each payment date. You should be aware that the
     If you invest in the Back-to-Back ISA we will write to you before    normal distributions (reinvested or accumulated) together with
     the beginning of the next tax year and remind you how your           any market growth in the fund might not be sufficient to cover
     new ISA will be set up. If you are happy to remain in the same       the total withdrawals from capital over the course of a year.
     funds, you need do nothing. If not, you can contact us to            This can lead to capital erosion or may constrain capital
     change your fund allocation.                                         growth. The payments are taken from capital and may
                                                                          therefore be liable to Capital Gains Tax (if held outside an ISA).
     Can I change my mind about my                                        Please speak to a tax adviser if you have any queries about
     application?                                                         this.


     If you are given advice on a face-to face basis about                Payments will be made directly into your selected Bank or
     purchasing shares in the fund, you have the right to cancel your     Building Society Account. No payments by any other method
     application. If you have purchased shares with advice, but on a      are permitted.
     non face-to-face basis, the regulations may not give you the
     right to cancel your application. However, Threadneedle will         You can instruct us to change or cease your Cash Withdrawal
     allow you the right to cancel your application.                      Facility at any time by giving us eight weeks notice in writing.


     We will send you a Cancellation Notice with your Contract            If you invest in an income fund and elect to use the Cash
     Note. If you want to cancel your application please return the       Withdrawal Facility, the fund’s income distributions will be
     completed Cancellation Notice by post to Threadneedle                reinvested to purchase extra shares or units in the same fund
     Investment Services Limited, P.O. Box 1331, Swindon SN38             You will be subject to an initial charge on this fee but a 2.0%
     7TA within 14 days of receiving it.                                  discount will be applied.


     You should be aware that if markets have moved adversely             What happens to my ISA
     and the value of your investment has fallen, you might not get       investment if I die before taking the
     back the full amount you invested. If you do not exercise this       proceeds?
     right to cancel, your investment in the fund will remain.
                                                                          Shares in the fund will only form part of the estate of
     If you invest in the Back-to-Back ISA, you will not be entitled to   Inheritance Tax purposes if the person beneficially entitled to
     any further cancellation rights when conversion to the Stocks        them is an individual domiciled in the UK. Ownership will be
     and Shares ISA takes place each tax year.                            transferred in accordance with the instructions in your will or
                                                                          the intestacy rules. Your ISA will lose its tax-free status from
                                                                          the date of your death and the investments held in your ISA will
                                                                          be taxed as non-ISA investments from that point in the same
                                                                          way as shares are held outside an ISA. Please note that your
                                                                          investment will continue to be actively managed by
                                                                          Threadneedle and that the value of your fund(s) may fall as
                                                                          well as rise.
                                                                                                           Threadneedle Investment Funds ICVC   87




How can I sell my ISA investments?                                 It is possible for you to transfer out part of your Threadneedle
                                                                   ISA, subject to a minimum of £500 being maintained in each
You can sell your investments by contacting your financial         selected fund and to the fact that a current tax year ISA must
adviser or, between 9 a.m. and 5 p.m. Monday to Friday             be transferred in whole.
(except for bank Holidays in England and normally the last
Business Day before Christmas), by telephoning us on 0800          Further information
068 3000 (calls may be recorded), or by writing to
Threadneedle Investment Services Limited, P.O. Box 1331,           The Threadneedle Investment Funds ICVC is incorporated and
Swindon SN38 7TA.                                                  authorised in the U.K.

You will be sent a contract note giving details of the number      “Threadneedle” is a brand name of the Threadneedle group of
and price of investments sold the Business Day after the           companies, and the term “Threadneedle” is used in this
transaction, together with a form of renunciation to be            document to refer to any entity within the Threadneedle group
completed and executed by you.                                     of companies.

Payment will be initiated after four business days from the        The ISA Manager is Threadneedle Investment Services Limited
receipt of a completed Form of Renunciation or your written        (TISL). The registered office is at 60 St Mary Axe, London
instruction to sell along with acceptable confirmation of your     EC3A 8JQ. TISL is authorised and regulated by the Financial
Bank or Building Society Account details and any required          Services Authority and entered on the FSA register, FSA
identification documents as requested at the time of               Number 190437. The Authorised Corporate Director for
repurchase. Please note that payments will be made by Direct       Threadneedle Investment Funds is Threadneedle Investment
Credit (BACS) Transfer rather than by cheque whenever              Services Limited (TISL).
possible.
                                                                   The Depositary for Threadneedle Investment Funds ICVC is
You must sell a minimum of £500 per fund worth of                  J.P. Morgan Trustee & Depositary Company Limited (MTDL) of
investments on each redemption. If you sell all of the             1 Chaseside, Bournemouth BH7 7DB. MTDL is regulated by
investments in your ISA, your account will be closed.              the Financial Services Authority.

If you are sending us instructions to process a change of          The auditor of Threadneedle Investment Funds is
ownership along with a repurchase, we will initiate the            PricewaterhouseCoopers of Hay’s Galleria, 1 Hay’s Lane,
repurchase only when the change of ownership has been fully        London SE1 2RD.
registered and that will be the date used for the pricing of the
repurchase/fund switch.                                            Documentation
Can I transfer my ISAs between                                     The Financial Services Authority can be contacted at 25 The
plan managers?                                                     North Colonnade, Canary Wharf, London, E14 5HS.


You can normally transfer your ISAs between ISA managers           You may obtain copies of the following documents free of
without losing the tax benefits.                                   charge and any additional information by contacting
                                                                   Threadneedle Investment Services Limited, P.O. Box 1331,
You are able to transfer some or all of the investments you hold   Swindon, SN38 7TA:
from a previous tax year’s Threadneedle ISA to another ISA
manager provided it is into another Stocks and Shares ISA . An        The Prospectuses for Threadneedle Investment Funds
ISA taken out in the current tax year can only be transferred in      ICVC,
its entirety to an ISA of the same type – in the case of a
Threadneedle ISA, to another Stocks and Shares ISA.                   The most recent annual or half-yearly reports of
                                                                      Threadneedle
You should bear in mind that transferring your investment
between managers may involve additional charges that would            The Instrument of Incorporation and the material contracts
not be incurred if the investment was not being transferred.          into which Threadneedle Investment Funds ICVC has
                                                                      entered.
If markets rise during the period in which a transfer remains
pending, this may lead to a potential loss of income or capital
growth.
88   Threadneedle Investment Funds ICVC




     Savings Directive                                                    or regulatory requirements; and to identify you when you
                                                                          contact us. We may use external third parties to process your
     This section applies only to investors who are resident outside      personal information on our behalf in accordance with these
     the United Kingdom for tax purposes.                                 purposes.


     Under the terms of the regulations that implement the                Sharing of your personal information
     European Savings Directive, we are required to obtain your tax       Where you have notified us of your adviser, the personal
     identification number (if you have one) or the place of your birth   information provided may be shared with such adviser. You
     and the country of your birth. In addition we must obtain your       must notify us in writing if you no longer wish us to share your
     country of residence for tax purposes. Please note that              personal information with your adviser or of any change to your
     Guernsey, Jersey and the Isle of Man are all treated as              adviser. Your adviser should have its own arrangements with
     separate from the UK for tax purposes. The requirement to            you about its use of your personal information. The personal
     obtain this additional personal information is effective from 1      information provided may also be shared with other
     January 2004.                                                        organisations in order for us to comply with any legal or
                                                                          regulatory requirements. In addition, we may share your
     Under regulations that came into effect from mid 2005, we are        personal information with the companies within the
     required to report details of your investment to HM Revenue          Threadneedle group for the purposes set out in this privacy
     and Customs (“HMRC”). If you invest in a fixed interest fund, a      statement.
     cash fund, or a managed fund with a fixed interest or cash
     content which is greater than 15%, then Threadneedle will be         Business changes
     required to provide your name and address, the additional            If we or the Threadneedle group undergoes a group
     personal information and details of your investment, to HMRC         reorganisation or is sold to a third party, the personal
     at the end of each tax year. If you are resident in another EU       information provided to us may be transferred to that
     state, HMRC will then be required to pass this information to        reorganised entity or third party and used for the purposes
     the tax authorities in that EU state.                                highlighted above.


     Although the additional information is not required if you invest    Overseas transfers
     in an equity fund, we would recommend that you do provide            We may transfer your personal information to countries located
     this information on the application form so that if you ever         outside of the European Economic Area (the EEA); this may
     wanted to switch into a fixed interest fund, a cash fund, or a       happen when our servers, suppliers and/or, service providers
     mixed asset fund with a fixed interest or cash content of more       are based outside of the EEA. The data protection laws and
     than 15%, we can process the switch promptly, without having         other laws of these countries may not be as comprehensive as
     first to collect the additional information.                         those that apply within the EEA – in these instances we will
                                                                          take steps to ensure that your privacy rights are respected.
     Privacy Statement                                                    Details of the countries relevant to you will be provided upon
                                                                          request.
     Your data controller
     For all investors except investors for whom Threadneedle             Access to/correction of your information
     Portfolio Services Limited is the Manager (see below) for the        With limited exceptions, you have the right to ask for a copy of
     purposes of the UK Data Protection Act 1998, the data                the information that we hold on you. There may be a charge for
     controller in respect of any personal information provided is        this (if a charge is permitted). If any of the information that we
     Threadneedle Investment Services Limited. Where                      hold about you is wrong, please tell us and we will put it right.
     Threadneedle Portfolio Services Limited is the Manager then it       You can write to us at Threadneedle Investment Services
     is the data controller. In this privacy statement “we”, “us” and     Limited/ Threadneedle Portfolio Services Limited, P.O. Box
     “our” means Threadneedle Investment Services Limited or              1331, Swindon SN38 7TA.
     Threadneedle Portfolio Services Limited as necessary.
                                                                          Investors with special needs
     Uses made of your personal information                               Do you have difficulty in reading information in print because of
     The personal information that you provide to us and we collect       a disability? If so, we can help. We are able to produce
     store and process, will be used for a number of different            information for our clients in large print and Braille, or through
     purposes including: to manage and administer your account; to        Minicom, or on audiotape or computer disk. If you would like to
     offer you investment products and services (except where you         discuss your particular requirements, please contact our Client
     have asked us not to do so) and to help us develop new ones;         Services Department at the Swindon address given under
     to contact you with details of changes to the products you have      ‘Documentation’.
     bought; for internal analysis and research; to comply with legal
                                                                   Threadneedle Investment Funds ICVC   89




Queries or Complaints
If you have an issue you would like to take up with us, please
do not hesitate to write to Threadneedle Investment Services
Limited at the address given in the ‘Documentation’ section. If
you have a complaint we will do all we can to resolve it. A copy
of our complaint handling procedures is available on request.

You may also complain directly, without giving up any rights
you may have, to the Financial Ombudsman Service, South
Quay Plaza, 183 Marsh Wall, London E14 9SR (Telephone
0845 080 1800), for complaints about how the investment is
managed or about how the investment was sold to you by us.

You are protected by the Financial Services Compensation
Scheme. Further information is available on request from the
Financial Services Authority and the Financial Services
Compensation Scheme.
90   Threadneedle Investment Funds ICVC




     Section One – ISA General Terms                                   ‘Prospectus’ means the prospectus of the Threadneedle
     and Conditions                                                    Investment Funds ICVC Funds as amended from time to time.
                                                                       Those provisions are modified by these terms and conditions
     1.      Definitions
     ‘ACD’ Threadneedle Investment Services Limited, the               ‘Qualifying Investments’ means Funds qualifying as ISA
     authorised corporate director of the Company                      investments under the Regulations


     ‘Application Form’ means a Threadneedle ISA application form      ‘Regulations’ means the Individual Savings Account
                                                                       Regulations 1998 as amended from time to time
     ‘Associate’ means any holding company of the Manager or a
     subsidiary of any such holding company (as defined in the         ‘Shares’ means shares in the Threadneedle Investment Funds
     Companies Act 2006)                                               ICVC,


     ‘Back-to-Back ISA’ means a Threadneedle Share and                 ‘Stocks and Shares ISA’ means an ISA that is designated as a
     investment with an automatic annual sale and reinvestment into    stocks and shares ISA under the Regulations
     a Threadneedle Stocks and Shares ISA
                                                                       ‘Terms’ means these terms and conditions (together with the
     ‘Dealing Day’ Monday to Friday excluding public and bank          relevant Application Form and Simplified Prospectus)
     holidays in England and Wales and other days at the ACD’s
     discretion                                                        ‘we’ or ‘us’ or ‘our’ means the Manager and/or the Manager’s
                                                                       nominee
     ‘CWF’ means the cash withdrawal facility by means of regular
     redemption of Shares from an ISA                                  ‘you’ or ‘your’ means the investor named on the relevant
                                                                       Application Form and/or the investors’ personal representatives
     ‘CWF Amount’ means the amount selected by you for payment
     to you on the Pay Date under the CWF                              Unless you originally held a Personal Equity Plan with
                                                                       Threadneedle Portfolio Services Limited , the manager of your
     ‘Cash ISA’ means an ISA that is designated as a cash ISA          ISA is Threadneedle Investment Services Limited which is
     under the Regulations                                             authorised and regulated by the Financial Services Authority,
                                                                       with firm reference number 190437. Its main business is acting
     ‘Client Account’ means a bank account held by us in the UK in     as an ISA Manager and as an Authorised Corporate Director.
     accordance with FSA rules                                         Its registered Office is 60 St Mary Axe, London EC3A 8JQ. If
                                                                       you originally held a Personal Equity Plan with Threadneedle
     ‘FSA’ means the UK Financial Services Authority                   Portfolio Services Limited it is the manager of your ISA and is
                                                                       authorised and regulated by the Financial Services Authority,
     ‘Fund’ means a fund of Threadneedle Investment Funds ICVC         with firm reference number 119174. Its registered Office is 60
     an open ended investment company                                  St Mary Axe, London EC3A 8BA


     ‘HMRC’ means Her Majesty’s Revenue and Customs                    When we use the words “we”, “our” and “us” in these Terms
                                                                       and conditions, we mean the Manager.
     ‘Investments’ means Shares held in an ISA
                                                                       These Terms, the Simplified Prospectus and the Application
     ‘ISA’ means an Individual Savings Account governed by these       Form are to be construed as one document constituting the
     Terms (which may be a stocks and shares ISA or a Cash ISA)        terms of the agreement between you and us.


     ‘Manager’ means Threadneedle Investment Services Limited,         You should read these Terms carefully to understand how they
     or Threadneedle Portfolio Services Limited as appropriate or      work and your and our rights and obligations under them. We
     such other company as they may respectively appoint in            also draw your attention to the specific risk factors that may
     accordance with clause 14.2                                       apply to your investment, as set out in the Simplified
                                                                       Prospectus.
     ‘Pay Date’ means the date on which payments from
     investments in a Fund are made to you, the investor, by us, the
     Manager
                                                                                                                Threadneedle Investment Funds ICVC   91




2.    Subscription                                                    We are not permitted to lend any Investments, documents of
Your ISA will come into force, subject to any rights you have to      title or other property belonging to you to a third party, commit
withdraw, once your correctly completed relevant Application          you to pay further sums of money into the ISA, or borrow
Form and subscription monies are received and accepted                money on your behalf against the security of the Investments or
by us.                                                                documents.

It is our normal practice to effect investment as soon as             6.    Client money
practicable, but if there should be a reason upon which we are        The Client Account will be held in the UK with an authorised
unable to process it we will send the investment back to you on       bank in accordance with the FSA’s Client Assets rules. The
the same day.                                                         bank will hold the cash on our behalf in sterling in a trust
                                                                      account separate to any account used to hold money belonging
The minimum initial investment is as specified in the relevant        to us in our own right. We will not, however, be responsible for
Application Form. Additional lump sum contributions are               any acts or omissions of the bank.
subject to the minimum and maximum specified in the relevant
Application Form.                                                     If the bank should become insolvent, we will have a claim on
                                                                      behalf of you and other clients against the bank. If, however,
We accept partial transfers from ISAs managed by other ISA            the bank cannot repay all of its creditors, any shortfall may
managers subject to the Regulations and acceptance by us of           have to be shared pro rata between you and other clients.
a correctly completed Application form and your subscription
monies.                                                               7.    Distributions and Income Payments
                                                                      If you wish to take an income from your ISA you must provide
3.    Switching                                                       full details of your bank or building society account in the
You may at any time instruct us either in writing or by telephone     ‘income payments’ section of the Application Form. Otherwise,
to switch Shares in your ISA from one Fund to another Fund.           any income payable in relation to your ISA will be automatically
Switching is effected by selling Shares and reinvesting the           reinvested. Where you are adding to an existing holding in a
proceeds into other Shares. We will normally effect the               particular Fund, your instructions to take the income or reinvest
transactions as soon as possible after receiving the instruction.     will apply to your entire holding in that Fund. It is not possible to
                                                                      both reinvest and take the income from the same Fund within
There is currently no fee charged on a switch from one share          the same account.
class in a Fund to another Class in the same Fund. However,
you may be charged a fee on the switching of Shares between           We can only accept one set of bank or building Society account
Funds on the terms set out in the then current Prospectus. The        details to cover all holdings within the same account for
general provisions on procedures relating to the subscriptions        distribution payments.
and withdrawals set out in these Terms will also apply.
                                                                      We will pay with each income distribution and/or interest
Please note that if you switch Shares in one Fund for Shares in       distribution (as paid on our bond Funds) an amount equivalent
any other Fund, you will not have any right to withdraw from or       to any tax due on the distribution. Such amounts will be a loan
cancel the transaction.                                               by us to you, interest free but repayable on demand, and you
                                                                      will authorise us to deduct an equivalent amount, to repay this
4.    Classification and our obligations to you                       loan, from the tax reclaim when it is received from the HM
You are classified as a ‘retail client’ as defined in the FSA rules   Revenue and Customs.
unless we notify you in writing to the contrary.
                                                                      For net accumulation Shares and income Shares with
We will act with reasonable skill, care and diligence as required     reinvestment instructions, the tax reclaim obtained from the
by the rules of the FSA.                                              HMRC will be used to purchase such additional Shares in the
                                                                      Fund in question.
5.    Ownership of Investments
Investments are beneficially owned by you and will be                 If you wish to reinvest income but invest into your ISA
registered jointly in your name and our name (or the name of a        immediately prior to the ex-dividend date, registration may take
UK-based nominee company appointed by us). Any documents              place too late to enable the distribution to be reinvested in
evidencing title to an Investment will be held by us or as we         additional Shares. In this case, the distribution will be paid out
may direct. Any other nominee appointed by us may act on our          to you rather than reinvested.
instructions about an ISA or its income which appear to be in
accordance with these Terms.
92   Threadneedle Investment Funds ICVC




     If you terminate or transfer your ISA then any income due to          accordance with the Regulations or if you are in breach of the
     you will normally be paid within four Dealing Days of                 Regulations.
     termination or transfer.
                                                                           The ISA will terminate automatically with immediate effect if it
     8.      Withdrawals                                                   becomes void under the Regulations because of any failure to
     On your written instructions and within the time stipulated by        satisfy their provisions. We will notify you in writing if this occurs
     you (which must be at least four Dealing Days) we will transfer       as soon as we become aware of it. Should this occur, we shall
     or pay to you all or part of the investments held in your ISA and     return to you the then current market value of your ISA.
     the proceeds arising from those investments.
                                                                           The ISA will be terminated without prejudice to any transactions
     The minimum withdrawal you may make at any one time is                already initiated for you and we shall be entitled to retain such
     £500.                                                                 proceeds as are necessary to settle any outstanding fees and
                                                                           any transactions which have been commenced for you. The
     You hereby authorise us to act on your behalf for the purpose         proceeds of the ISA will normally be paid to you within four
     of approving, delivering and signing all and any documentation        Dealing Days of their sale.
     and doing all such acts and things as we may consider
     appropriate in connection with the following matters:                 When the ISA is terminated in accordance with this Section we
                                                                           reserve the right to reclaim any tax reclaims already paid to
     (a)     the sale of Investments in accordance with your               you.
             instructions; and
                                                                           If we wish to stop managing the ISA, we may terminate the ISA
     (b)     the transfer of the Investments into the joint names of you   on a minimum of 2 months’ written notice. This will give you
             and us or a nominee.                                          time to transfer the ISA to another manager.

     9.      Charges                                                       Termination on death
     The Manager shall be entitled to charge for its services at the       The ISA will terminate automatically in the event of your death
     rates set out in the Threadneedle Investments Funds ICVC              and all your rights under these Terms will vest in your personal
     Prospectus issued by the Manager which is current at the date         representatives or any other person entitled to them. Such
     you apply for your ISA. We shall give you the notice period as        persons should inform us promptly in the event of your death.
     required by the Regulations and the FSA Rules in relation to
     any changes that are important to your investment which may           We will stop collecting monthly investments (where applicable)
     apply from time to time.                                              and the ISA’s tax exempt status will end.


     10. Income                                                            Your personal representative or any other person entitled to
     The Manager will automatically reinvest all income in respect of      your ISA may, subject to our receipt of evidence of your death,
     Investments and all related tax reclaims, net of any tax liability,   ask us to sell your Investments or register them in the name of
     unless you elect to be paid the income from your ISA by               another person or persons. We will do this after selling
     completing the relevant section on the relevant Application           sufficient Shares to reimburse us or the HMRC for any money
     Form or notifying the Manager.                                        owed to either of us.


     You must inform the Manager if you wish to cancel a previous          Repairing an invalid ISA
     election to receive income.                                           In certain circumstances, as set out in the Regulations and
                                                                           following a direction from the HMRC, it may be possible for us
     11. Termination and invalid ISAs                                      to repair (rather than void) an invalid ISA. This will allow you to
     Termination by you                                                    have the benefit of tax relief for the future but you will lose tax
     You may terminate the ISA by giving us written notice to sell         relief up to the date of the repair and hence you should be
     the Investments on your behalf. Termination of the ISA will not       aware of the income and capital gains tax implications of this.
     take effect, even if no Investments remain, until any
     outstanding tax claims have been received from the HMRC.              The HMRC will send us a notice of discovery stating which
     We shall be entitled to retain such proceeds as are necessary         ISAs can be repaired and to what extent. We will only act on
     to settle any outstanding fees or any transactions that have          receipt of this notice. The HMRC will also send you a letter to
     been commenced for you.                                               inform you of the situation.

     Termination by us                                                     Where we are required to remove excess subscriptions
     We shall be entitled to terminate the ISA immediately if we           (including allowance for income or tax reclaims) from your ISA
     believe it is no longer possible to manage the ISA in                 you hereby authorise us to transfer into your name or redeem
                                                                                                             Threadneedle Investment Funds ICVC   93




any of the Funds held in your ISA to the extent required under      since the previous statement. We may produce a consolidated
the Regulations. This will be as close to the original investment   statement if you have more than one ISA.
split as possible. Where this amount is above the minimum
holding for investment outside an ISA we will contact you to        15. Reports and Accounts
confirm whether you wish these investments to be held directly      You will automatically receive a copy of the annual short form
in the Funds outside of your ISA or returned to you (this may be    report and accounts issued in respect of the Fund held in your
less than your original subscription). We will also inform you of   ISA. Subject to clause 16, if you so elect, we will arrange for
the original cost price of investments, the date of acquisition,    you to receive other information issued to investors in any
the sale price and any incidental costs of acquisition of           Funds in your ISA.
investments purchased with invalid subscriptions.
                                                                    16. Contact Details, Notices and Instructions
12. Taxation                                                        You can contact Threadneedle’s Client Services Team at P.O.
You authorise us to make the necessary claims in respect of         Box 1331, Swindon SN38 7TA or by telephone on 0800 068
tax deductions in respect of Investments and income from them       3000 or, if you have any doubts about the suitability of the
in accordance with the Regulations and otherwise. When we           investment and would like advice, contact your financial
believe it to be appropriate, we shall provide the HMRC with all    adviser.
relevant information and documentation that may be required
by the HMRC under the Regulations or otherwise.                     Please note that we only accept written instructions in relation
                                                                    to your ISA by letter or fax. We do not accept instructions by e
You will supply us with all information that we reasonably          mail. Other than in the case of switch instructions, we do not
require in respect of the ISA.                                      accept instructions over the telephone.

You will inform us, as soon as practicable, if any of the           For your security and to improve the quality of our service, we
information given or statements made in your Application Form       may record and monitor telephone calls. We or our agents may
become untrue.                                                      contact you in order to obtain instructions in relation to your
                                                                    ISA. Where such contact is by telephone, these calls may also
You should note that your tax treatment in relation to any          be recorded.
investments made under these Terms will depend on your
individual circumstances and may be subject to change in            Any document or cheque to be sent or any notice to be given
future.                                                             by us in writing in accordance with these Terms will be sent, at
                                                                    your risk, to the address last notified to us and will be deemed
13. Alteration of these Terms                                       to have been received by you on the second day from the day it
We may vary these Terms if we give at least one month’s             is posted.
written notice, provided that the changes do not materially
affect your interests or alter the fundamental basis of your        You should write to us straight away (at the address set out in
investment.                                                         paragraph 16.1 above) if you change your name or your
                                                                    address. If you have not told us about a change of address and
We reserve the right to vary these Terms without notice if          we send a notice to the latest address you have given us, it will
required by a change in the rules of the FSA, the rules and         be effective.
regulations of the HMRC but provided we notify you in writing
as soon as practicable thereafter of any material changes.          17. Liability
                                                                    You agree to indemnify us against all liabilities incurred by us in
Please note that, if you do not like any variations that we         connection with the management of your ISA, other than
propose, you have a right under section 11 to end this              liabilities caused as a direct result of our negligence, wilful
agreement at any time.                                              default, or breach of the rules of the FSA, the rules and
                                                                    regulations of the HMRC or of these Terms.
We may appoint another company to act as your Manager in
our place, but any new Manager will be an Associate of ours         We are liable for our negligence, wilful default and for any
and will also be approved to act as a Manager under the             breaches of the rules of the FSA, the rules and regulations of
Regulations.                                                        the HMRC or of these Terms. We are not liable for any loss
                                                                    caused through a fall in the value of Investments unless that fall
14. Statements                                                      was due to our negligence or wilful default.
We will send you a statement every six months showing details
of your investments and details of all transactions in your ISA
94   Threadneedle Investment Funds ICVC




     We accept no responsibilities for your ISA until cleared funds          In accordance with the FSA rules, we have a written conflicts
     are received, nor for any loss or delay caused in the payment           policy that sets out the types of conflicts or potential conflicts of
     of funds to us.                                                         interest that affect our business and provides details of how
                                                                             these conflicts are managed. A summary of the conflicts policy
     For the purposes of this section, references to you include your        is available on request. If any conflict of interest arises in
     personal representatives and references to us include our               relation to this Agreement where we are not able to ensure that
     nominee(s).                                                             risks of damage to the interests of each investor will be
                                                                             prevented, we will disclose appropriate information to the
     If we cannot perform any of our obligations under these Terms           relevant investors on the conflict.
     due to circumstances beyond our reasonable control, then we
     will take all reasonable steps to bring those circumstances to          20. Cancellation
     an end, but we will not be liable for our non-performance               In certain circumstances you will have the right to cancel your
     except to the extent required by the FSA rules.                         ISA within fourteen days after receiving your contract note from
                                                                             us. If you exercise your right to cancel, any money paid to us
     We will not be liable for any loss arising directly or indirectly       will be repaid (subject to deduction of the amount, if any, by
     from the late collection of a direct debit payment that is not due      which the value of your ISA investments has fallen).
     to our fault, including any loss of investment opportunity or loss
     of tax relief.                                                          If you cancel your ISA where you have transferred an ISA to us
                                                                             from another Manager, we will refund the value to you and you
     18. Complaints and Compensation                                         will lose the tax status of your investment.
     We have established procedures in accordance with the
     requirements of the FSA for the consideration of complaints.            21. General
     Details of those procedures and your rights to compensation if          Dealing in the Shares will be in accordance with the
     we are unable to meet our liabilities to you are available from         Regulations and the FSA rules. Your transactions may be
     us on request. If you are dissatisfied with our response, you           aggregated with those of other investors to be carried out on
     have the right to complain directly to the Financial Ombudsman          the same day, and this may work to your advantage or
     Service, whose address is South Quay Plaza, 183 Marsh Wall,             disadvantage in relation to a particular order, compared with
     London, E14 9SR.                                                        the price you would have received if your order had been dealt
                                                                             separately.
     We are covered by the Financial Services Compensation
     Scheme, whose address is 5th Floor, Lloyds Chambers,                    We may employ agents in connection with the services we
     Portsoken Street, London E1 8BN. You may be entitled to                 provide and we may delegate all or any of our functions or
     compensation from the scheme if we cannot meet our                      responsibilities to any person we believe is competent to carry
     obligations. From 1 January 2010, certain types of investment           out such functions or responsibilities.
     business are covered for 100% of £50,000. Further information
     about compensation arrangements is available on request from            If these Terms conflict with the FSA rules, the Regulations or
     us or the Financial Services Compensation Scheme itself.                any of the rules and regulations of the HMRC, these will prevail
                                                                             over the Terms. We will notify you if by reason of any failure to
     19. Material interests and conflicts of duty                            satisfy the provisions of Regulations an account has or will
     We and any of our Associates may effect transactions in which           become void.
     we or an Associate or another client of ours or our Associates
     has, directly or indirectly, a material interest or a relationship of   You agree to notify us immediately if you cease to be resident
     any description with another party that may involve a potential         and ordinarily resident in the United Kingdom.
     conflict with our or our Associate’s duty to an investor.
                                                                             These Terms are governed by the laws of England and Wales.
     Neither we nor any of our Associates shall be liable to account
     to any investor for any profit, commission or remuneration              No interest payments will be made on money held by the
     made or received from or by reason of such transactions                 Manager, prior to investment in the Funds.
     described in the paragraph above or any connected
     transactions nor will our fees, unless otherwise provided, be           There is no minimum duration to the agreement between us, as
     abated by reason of any such profit, commission or                      set out in these Terms.
     remuneration. We will ensure that such transactions are
     effected on terms that are not materially less favourable to            All documentation and communications by us in respect of
     each investor than if the potential conflict had not existed.           these Terms will be in English.
                                                                                                             Threadneedle Investment Funds ICVC   95




Section Two – Threadneedle Back-                                     based on the Funds in your Threadneedle Back-to-Back ISA
to-Back ISA                                                          with the exception of the Funds that are not available through
                                                                     the Threadneedle ISA. The list of Funds which are currently
The Terms set out in Section One above apply to the                  managed to be available in an ISA is contained in the most up
Threadneedle Back-to-Back ISA unless stated otherwise. The           to-date prospectus for the Threadneedle Funds.
Terms set out below are in addition to those set out in Section
One above.                                                           23. Charges
                                                                     There is currently no initial charge and no fee for the annual
22. Subscription                                                     sale and reinvestment into your ISA from any Funds.
With the Threadneedle Back-to-Back ISA, you are only entitled
to subscribe for a Stocks and Shares ISA in the next or              We reserve the right to charge a fee, should circumstances
subsequent tax years.                                                change in the future. We will give you notice in writing of any
                                                                     change.
You may submit either cash or an existing Investment to the
Threadneedle Back-to-Back ISA, or a combination of both cash         24. Statements
and existing Investments.                                            We shall send you a statement each tax year setting out the
                                                                     current balance on your Threadneedle Back-to-Back ISA.
The sale and reinvestment into your ISA from your
Threadneedle Back-to-Back account, outside the ISA, will             Within six months of this statement, we shall send you a
occur automatically as soon after the beginning of the next tax      statement showing details of all transactions in relation to your
year as possible. Any residual amount will not automatically be      account since the previous statement.
sold and reinvested into an ISA after the next tax year. You will
need to inform Threadneedle in writing if you want to sell and       Section Three – Threadneedle Cash
reinvest any residual amount into an ISA in subsequent tax           Withdrawal Facility (CWF)
years or tick the box on the Application Form.
                                                                     25. Cash Withdrawal Facility
If you have not ticked the box on the Application Form, you will     These Terms relating to the CWF are supplementary to the
need to send written instructions to continue to sell from your      Prospectus of the relevant Threadneedle Funds, as may be
Threadneedle Back-to-Back account outside the ISA, and to            amended from time to time and as summarised in the relevant
reinvest into your ISA automatically in subsequent tax years.        Key Features (incorporating the Simplified Prospectus). All the
For Threadneedle Back-to-Back ISAs previously also known as          Terms applying to an Investment in a Fund or Funds, as stated
ISA Conversion Plan and taken out before 30 September 2000,          in the current Prospectus, shall apply to the CWF, except as
the annual sale and reinvestment into an ISA (up to the              amended by these Terms.
maximum amount legally permitted) will continue unless and
until we receive your signed written instructions to cease the       26. Share/Unit Renunciation
sale and reinvestment.                                               You authorise us to redeem Shares required to provide the
                                                                     CWF Amount. Such redemption will take place at the selling
Some Threadneedle retail Funds are not available through the         price then ruling five Dealing Days (or at such other time as the
Threadneedle ISA. The list of Funds which are currently              Manager may in its absolute discretion determine) before
managed to be available in an ISA is contained in the most up        payment of the CWF Amount. If there are insufficient Shares
to-date prospectus for the Threadneedle Funds. Back-to-Back          available to meet the CWF Amount the CWF Amount will not
ISAs previously known as ISA Conversion Plan and taken out           be paid.
before 30 September 2000 may invest in these Funds, but will
not be included in those Funds that are sold and reinvested into     27. Settlement
your ISA in the next tax year.                                       Payments of the CWF Amount shall be made by direct credit
                                                                     (BACS) transfer to your bank or building society account, the
The sale and reinvestment into your ISA from your                    details of which you will notify to Us. No payments by any other
Threadneedle Back-to-Back account, outside the ISA, will be          method will be permitted. You will receive payment of the CWF
made based on the Funds in your Threadneedle Back-to-Back            Amount five Dealing Days (or at such other time as the
account at the time. The Funds will be sold and reinvested into      Manager may in its absolute discretion determine) after the
your ISA in proportion to their value at the time, up to the legal   date of the renunciation of Shares, regardless of the type of
limit for a Stocks and Shares ISA applicable at the time of          Fund or Funds in which you have invested.
reinvestment. For Threadneedle Back-to-Back ISAs previously
known as ISA Conversion Plan and taken out before 30
September 2000, the sale and reinvestment will be made
96   Threadneedle Investment Funds ICVC




     All payments of the CWF Amount must be made to one bank or          33. Termination
     building society account. We are not able to make payments of       You may terminate this CWF at any time upon giving eight
     the CWF Amount to two or more separate accounts.                    weeks’ notice to us. If you terminate the CWF, but continue to
                                                                         invest with us through your ISA, the provisions in this Section
     28. Income Distributing Funds                                       Three shall be suspended as regards your Investment, which
     Where a Fund distributes income, such distributions will be         will be governed by Section One of these Terms and by the
     reinvested in your ISA. There is currently a 1.75% charge for       Terms of the current Prospectus for the relevant Threadneedle
     such reinvestments of distributions. However, there is a charge     Funds.
     for reinvestment if you discontinue your CWF.
                                                                         We may discontinue the CWF at any time, upon the giving of at
     29. Frequency of Payments of the CWF                                least eight weeks’ notice of our intention to do so.
     Amount
     You may elect to receive payments of the CWF Amount                 34. Instructions
     monthly, quarterly, half-yearly or yearly. No other frequencies     We or our agents may contact you by telephone or by some
     of payments of the CWF Amount will be permitted.                    other means in order to obtain instructions in relation to your
                                                                         CWF. Telephone calls may be recorded.
     Payments of the CWF Amount will always be made on the first
     day of each calendar month or, if this is not a Dealing Days, the
     payment of CWF Amount shall be made on the nearest
     previous Dealing Day.

     Payments of the CWF Amount can only be made on the same
     date and at the same frequency for any Fund within your
     account. Thus, if you have elected to use the CWF in respect of
     two or more Funds, you will be paid the CWF Amount on the
     same Pay Date for all Funds within your account.

     You may choose the month in which you would like to begin
     using the CWF.

     30. Choice of Fixed or Variable Payments
     You may choose to receive your CWF Amount as either a fixed
     sum, or alternatively, you may elect to receive a percentage of
     the current valuation of your Investment.

     31. Communications
     After we have received your Application Form in respect of the
     CWF, we shall write to you confirming your requirements. We
     reserve the right to decline any application, without giving any
     reason.

     Contract notes are usually required to be sent in respect of
     each payment of a CWF Amount. However, in our offering the
     CWF, you agree to our sending you a summary transaction
     statement every six months outlining all CWF Amounts paid to
     you during that period and containing information that would
     have appeared in separate contract notes.

     32. Alterations of the CWF Amount
     You may alter the CWF Amount at any time on the giving of
     eight weeks’ notice to the Manager. If such notice is given less
     than three weeks before the Pay Date of the CWF Amount it
     may not take effect until after the next Pay Date.
Threadneedle Investment Funds ICVC   97
Important Information
Threadneedle Investment Services Limited, ISA Manager, Authorised Corporate Director and Unit Trust Manager. Registered No. 3701768. Registered in England and Wales. Registered
Office: 60 St Mary Axe, London EC3A 8JQ. Authorised and regulated by the Financial Services Authority. Threadneedle Investments is a brand name, and both the Threadneedle name
and logo are trademarks or registered trademarks of the Threadneedle group of companies. www.threadneedle.com

								
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