Over Fifty Insurance rewards experience. In this issue

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1 + powering financial choice September 2007 Welcome to the 2007 edition of Insight. Since the successful launch of our new Over Fifty Group brand last year we have focused on developing the company behind the scenes to provide a robust platform for growth. I am pleased to advise that our Investment Bonds have again produced good results. Both our Blueprint Investment Bonds and Flexible Investment Bonds have achieved solid returns and continue to provide effective tax advantages for our members. We continue to closely monitor our Blueprint Investment Bonds following the recent changes to the investment arrangements for the underlying van Eyk Blueprint funds that were reported to members earlier this year. We have also closed our Mortgage Income Fund (MIF). In an environment of intense price competition in the commercial mortgage lending market, we considered it was in the best interests of MIF investors to wind up the fund rather than erode investment returns. In the meantime we continue to promote our Seniors Home Equity Release Loan facility (SHERL) to seniors. The reverse mortgage market continues to grow as asset-rich, cash-poor seniors look to improve their retirement lifestyles. SHERL continues to lead the industry and win awards and I recommend you read the article about a happy customer who used the equity in her home to help her live more comfortably in retirement. Finally, I encourage you to compare the benefits available to you through our Over Fifty Insurance from car; home and contents; boat; travel; and our new funeral insurance. If you would like more information about any of Over Fifty Group s products, please call our Investor Services Team on or visit our website: Managing Director s Commentary Chris Martin In this issue + Over Fifty Friendly Society Bond Performance + Changes to Bond names + Using a reverse mortgage to live comfortably in retirement. Over Fifty Insurance rewards experience. Over Fifty Insurance reward your experience with attractive insurance premiums for your: + home & contents + car + holiday + and boat. This insurance is issued by Allianz Australia Insurance Limited (Allianz) AFS Licence No ABN Over Fifty Insurance Pty Ltd ABN is a corporate authorised representative of Allianz. To decide if these products are right for you, please carefully read the Product Disclosure Statement, which is available by calling

2 Over Fifty Income Accumulation Bond Objective To provide investors with competitive taxpaid returns with the security of a capital guarantee over the medium term. Investment strategy The Over Fifty Income Accumulation Bond invests into money market and fi xed interest investments, mortgages, mortgage-backed securities, assetbacked securities, real property and property trusts and a range of Investment Grade fi xed interest and debt securities issued by Banks, overseas countries, corporations and other non-government entities. The Bond is authorised to invest in derivatives. We will not use derivatives to gear the Bond. Property 0% 20% 10% Fixed Interest 0% 95% 0% Mortgages 0% 50% 40% Cash 5% 100% 50% $394.2m Property 1.8% Mortgages 45.3% Fixed Interest 2.3% Cash 50.6% Gross asset value at 30 June 2007 $394.2m rates 30 June % % % % % Inception 01/12/1981 Over Fifty Capital Guaranteed Bond Objective To provide investors with competitive taxpaid returns with a high level of capital security over the long term. Investment strategy The Over Fifty Capital Guaranteed Bond invests into money market and fi xed interest investments, government bonds, bank backed securities, Investment Grade fi xed interest and debt securities issued by Banks and other non-government entities and Approved Unit Trusts. The Bond is authorised to invest in derivatives. We will not use derivatives to gear the Bond. Fixed Interest 0% 95% 0% Cash 5% 100% 100% Recent name changes Policyholders will be aware that recently the name of the Society was changed from Over 50s Mutual Friendly Society Limited to Over Fifty Mutual Friendly Society Limited. In addition to this change, a number of the Society s benefi t funds were renamed to refl ect the Society s recent branding changes. The relevant name and reference changes are set out in the following table: Old benefit fund names and references Over 50 s Funeral Benefi t Fund Over 50 s Education Benefi t Fund Over 50s Mutual Flexible Investment Funds OFM Capital Guaranteed Bond Fund OFM Income Accumulation Fund OFM Growth Bond Fund OFM Blueprint Balanced Fund OFM Blueprint Shares Fund OFM Blueprint High Growth Fund New benefit fund names and references Over Fifty Funeral Benefi t Fund Over Fifty Education Benefi t Fund Over Fifty Flexible Investment Funds Over Fifty Capital Guaranteed Bond Fund Over Fifty Income Accumulation Fund Over Fifty Growth Bond Fund Over Fifty Blueprint Balanced Fund Over Fifty Blueprint Shares Fund Over Fifty Blueprint High Growth Fund The rules of the Society s benefi t funds (which are set out in the appendices to the Society s constitution) were amended effective 8 December 2006 to refl ect these minor name and reference changes.

3 $220.9m Cash 100.0% Gross asset value at 30 June 2007 $220.9m rates 30 June % % % % % Inception 06/08/1985 Over Fifty Growth Bond Objective To provide investors with longer term taxpaid growth. Investment strategy The Over Fifty Growth Bond invests into cash, shares, shares, real property, and international listed and unlisted property securities, and international alternative assets and a range of Investment Grade fi xed interest and debt securities issued by Banks, overseas countries, corporations and other non-government entities. This strategy results in a high exposure to growth assets. The Bond is authorised to invest in derivatives. We will not use derivatives to gear the Bond. Shares 0% 50% 30% Shares 0% 50% 25% Property * 0% 33% 20% Fixed Interest 0% 95% 5% Fixed Interest 0% 85% 5% Cash 5% 100% 10% Alternative Assets** 0% 15% 5% * This may include both listed and unlisted property investments, as well as global property securities. ** This may include and international venture and development capital and public infrastructure investments. $108.7m Shares 29.7% Shares 24.8% Property 14.6% Fixed Interest 5.1% Fixed Interest 2.4% Cash 20.5% Alternative Assets 2.9% Gross asset value at 30 June 2007 $108.7m Performance at 30 June 2007 Inception 27/06/ Year 9.86% p.a 3 Years 10.11% p.a 5 Years 6.65% p.a Comment On 27 June 2007, policyholders approved the Society s proposal to amend the rules of the Over Fifty Growth Bond primarily to broaden the defi nition of Authorised Investments in order to enable the Bond to invest in international property, venture and development capital, and public infrastructure investments. During fi scal year 2006/07, the Investment Committee increased the Fund s target allocation to Fixed Interest from 0% to 5.0%. This correspondingly reduced the Fund s exposure to Cash from 25.5% to 20.5% and brought the Fund s target Fixed Interest allocation in line with its strategic asset allocation weight.

4 + Funds closed to new applications Over Fifty Deferred Annuity Bond Over Fifty Education Benefit Fund Over Fifty Funeral Benefit Fund $2.4m $0.7m $19.7m Cash 100.0% Gross asset value at 30 June 2007 $2.4m rates 30 June % % % % % Inception 01/02/1986 Fixed Interest 4.3% Cash 95.7% Gross asset value at 30 June 2007 $0.7m rates 30 June % % % % % Inception 08/07/1992 Over Fifty Group Sudoku challenge Ove Fifty Group challenge you to keep your mind active with Sudoku. The answers can be found on the inside back page. Fixed Interest 4.3% Cash 95.7% Gross asset value at 30 June 2007 $19.7m rates 30 June % % % % % Inception 12/10/ Easy Hard

5 + Funds closed to new applications Savings Bond Fund 1 $3.1m Savings Bond Fund 2 $0.4m Property and Mortgage Bond Property 0% 33% 25% Fixed Interest 0% 85% 25% Mortgages 0% 50% 0% Cash 15% 100% 50% Hybrid Securities 0% 2.5% 0% Fixed Interest 4.3% Cash 95.7% Fixed Interest 4.2% Cash 95.8% $8.3m Gross asset value at 30 June 2007 $3.1m rates 30 June % % % % % Inception 01/10/1996 Gross asset value at 30 June 2007 $0.4m rates 30 June % % % % % Inception 02/01/2003 Property 24.3% Fixed Interest 24.3% Cash 51.4% Gross asset value at 30 June 2007 $8.3m Performance to 30 June Year 6.62% p.a 3 Years 5.64% p.a 5 Years 4.32% p.a Inception 28/11/1988 Do your investments still suit your financial situation? Lifetime Planning (an Over Fifty Group company) specialises in fi nding fi nancial solutions for people preparing for and living in retirement. With over 20 years experience in providing fi nancial advice to the over 50 community, Lifetime Planning understand the fi nancial implications of your investments. Make sure you are getting the most out of your Over Fifty Investment Bonds, contact Lifetime Planning for a free consultation (Melbourne residents only):

6 + Funds closed to new applications Property and Mortgage Bond Over Fifty Blueprint Balanced Bond Over Fifty Blueprint High Growth Bond Comment On 27 June 2007, policyholders approved the Society s proposal to amend the rules of Property & Mortgage Bond to broaden the defi nition of Authorised Investments in order to enable investment in established investment products (e.g. Unit Trusts), where, although the product may be Investment Grade, a proportion of the underlying assets may not be. Also approved by policyholders was the Society s proposal to extend the range of allowable investments that the Bond could invest into to include Hybrid Securities, which is subject to a minimum allocation of 0% and a maximum allocation of 2.5%. During fi scal year 2006/07, the Investment Committee increased the Fund s target allocation to Fixed Interest from 0% to 25.0%. This correspondingly reduced the Fund s exposure to Cash from 75.0% to 50.0% and brought the Fund s target Fixed Interest allocation in line with its strategic asset allocation weight. Shares 20% 55% 35% Shares 10% 40% 25% Property Securities 0% 20% 10% Fixed Interest 0% 35% 17% Fixed Interest 0% 25% 8% Cash 0% 15% 5% Alternative Assets * 0% 15% 0% * Such as venture and development capital and public infrastructure $15.6m Shares 40.3% Shares 29.5% Property 6.1% Fixed Interest 7.8% Fixed Interest 8.0% Cash 2.6% Alternative Assets 5.7% Gross asset value at 30 June 2007 $15.6m Performance to 30 June Year 8.12% p.a 2 Years 11.20% p.a Since Inception (22/03/2004) 11.02% p.a Shares 30% 70% 50% Shares 20% 60% 40% Property Securities 0% 25% 10% Alternative Assets* 0% 15% 0% Cash 0% 15% 0% * Such as venture and development capital and public infrastructure $7.1m Shares 50.9% Shares 44.2% Property 1.9% Cash 0.2% Alternative Assets 2.8% Gross asset value at 30 June 2007 $7.1m Performance to 30 June Year 9.91% p.a 2 Years 12.84% p.a Since Inception (22/03/2004) 13.13% p.a

7 + Funds closed to new applications Over Fifty Blueprint Shares Bond Shares 85% 100% 100% Cash 0% 15% 0% $10.8m Shares 99.9% Cash 0.1% Gross asset value at 30 June 2007 $10.8m Performance to 30 June Year 17.73% p.a 2 Years 16.83% p.a Since Inception (22/03/2004) 16.34% p.a Note: Past performance is not a reliable indicator of future performance. Sudoku answers Easy: Simply Funeral Insurance: simply makes sense. People insure their cars, even though they may never have an accident, they insure their houses, even though they may never burn down. Yet everyone will have a funeral eventually, so why not insure to help cover the cost? Even a modest funeral costs several thousands of dollars. Most funerals need to be fi nanced up front and standard life insurance policies often take months to settle. Trying to fi nance a funeral can increase the stress and grief on family members. Simplicity Funerals and Over Fifty Insurance now provide you access to an affordable insurance solution. Simply Funeral Insurance provides you with $10,000 cover from as little as $10.00 a month*. For an obligation-free quote, please call Over Fifty Insurance on Hard: * Premiums based on $10,000 cover for a 50 year old, female non-smoker on the Simply Funeral Insurance Plan. This insurance is issued by Allianz Australia Life Insurance Limited ABN AFSL (Allianz). Over Fifty Insurance Pty Limited ABN (Over Fifty Insurance) and InvoCare Australia Pty Limited ABN trading as Simplicity Funerals ( Simplicity Funerals) act as referrers only. They are not Financial Services Licensees or representatives of Allianz and do not (and are not able to) deal in or provide advice on this product. Over Fifty Insurance receive a commission of which Simplicity Funerals may share in that commission from Allianz for their services which is a percentage of (and incorporated in) the premium. This product is not a pre paid funeral plan.

8 Mary needed a new car, but decided she deserved a Mercedes With a Seniors Home Equity Release Loan, you don t repay the loan until you decide to sell, or pass on the home*. You can access the money tied to the value of the home to use for whatever you choose....access the money tied to the value of the home to use for whatever you choose. Mary really needed a new car. The car she had for 15 years was unreliable and costing her money she couldn t afford in maintenance. As a single retiree, Mary didn t have access to the money to buy a new car. However, by owning her home, Mary did have the money it was just trapped in the equity of her home. She wanted to stay in her home and didn t want to have to sell it that s when she found out about a Seniors Home Equity Release Loan. Over Fifty Group helped Mary by letting her use the money trapped in her home to enjoy retirement. Mary found that she was able to borrow $50,000 against the value of her home and decided to splash out on a car she had always wanted*. Not only was she able to go to the shops and to see her friends and family easily, she could enjoy one of her life s dreams: driving a Mercedes. Mary is now planning to renovate her house to improve her kitchen and bathroom while improving the value of her home, confi dent that there will still be money left over for her children s inheritance. If you re over 60 and own your home you could benefi t from a reverse mortgage. Seniors are using reverse mortgages for a number of different uses. A Seniors Home Equity Release Loan gives you a fi nancial choice to enjoy your retirement, so what s stopping you? If you would like to know more or want to arrange a home visit, please call Over Fifty Group on * There may be Centrelink consequences which should be discussed with a fi nancial planner or Centrelink Financial Information Service (FIS) Offi cer. Terms and conditions apply and are available on application to Over Fifty Seniors Equity Release Pty Ltd. Mary s name has been changed to protect her privacy. Important This newsletter contains general information only and does not take into consideration any person s objectives, fi nancial situation or needs. These should be considered before any investment decision is made. We recommend that you speak with a licensed fi nancial adviser. A Product Disclosure Statement for the Over Fifty Flexible Investment Bonds is available on request, please call The Product Disclosure Statement should be considered before making an investment decision. Information in this newsletter is issued by the following Over Fifty Group entities who together are referred to as OFG. Information about Lifetime Planning is issued by Lifetime Planning Pty Ltd, AFSL Information about the SHERL product is issued by Over Fifty Seniors Equity Release Pty Ltd ABN All other information not otherwise noted in the document is issued by Over Fifty Mutual Friendly Society Ltd AFSL , ABN OFG believes that the information contained in this newsletter is accurate, but makes no representation as to its accuracy or completeness. To the maximum extent permitted by law OFG excludes liability for any loss or damage arising from use of the information contained in the newsletter. Unless otherwise stated, performance and asset allocation data in this newsletter is current as at 30 June, Keeping up to date Over Fifty Group aims to ensure that the information we retain about you is accurate, complete and up to date. If there are any changes to the details you have previously provided to us (i.e. change of address, name, telephone number) please send the new details in writing to: Over Fifty Mutual Friendly Society Reply Paid 5471, Melbourne Vic, 8060 (no stamp required). Alternatively, you can contact our Investor Services Team on and we will send you a form to complete and return. Complaints Process Any complaints received are handled in accordance with our procedures for disputes resolution. If you wish to make a complaint, please contact our Investor Services Team. Over Fifty Group values your privacy A summary of Over Fifty Group s personal information handling practices can be found at fty.com.au