SUPPLEMENT DATED DECEMBER 26, 1995
TO
PROSPECTUS DATED JUNE 20, 1995
FOR
FLEXIBLE ASSET ALLOCATION PORTFOLIO
AND
PROSPECTUS DATED MARCH 1, 1995
FOR
MONEY MARKET PORTFOLIO
OF
AON ASSET MANAGEMENT FUND, INC.
On December 26, 1995, AON Corporation announced that it has agreed to sell all
of the common stock of Forth Financial Resources, Ltd., the parent of Forth
Financial Securities Corporation ("FFSC"), to General Electric Capital
Corporation (the "Transaction"). FFSC is the principal underwriter of the shares
of AON Asset Management Fund, Inc. (the "Fund"). The Transaction is expected to
close in the first half of 1996.
FFSC currently serves as the principal underwriter of the Fund's shares pursuant
to a distribution agreement dated April 26, 1995 (the "Distribution Agreement").
Pursuant to the terms of the Distribution Agreement, a change of control of FFSC
will result in a technical assignment and the termination of the Distribution
Agreement. The Board of Directors of the Fund will meet in the near future (and
prior to the Transaction) to consider new arrangements for the distribution of
the Fund's shares. It is currently anticipated that such arrangements would
entail entering into a new distribution agreement with a new principal
underwriter and not FFSC. The new principal underwriter may be an affiliate of
AON Corporation or AON Advisors, Inc. ("AAI"), the Fund's investment manager.
FFSC also currently provides certain administrative services to the Fund
pursuant to an administration agreement with AAI dated December 29, 1993 (the
"Administration Agreement"). Under the Administration Agreement, FFSC performs
certain administrative tasks for the Fund which AAI would otherwise be obligated
to perform under its investment management agreement with the Fund. Pursuant to
the Investment Company Act of 1940 and the terms of the Administration
Agreement, a change of control of FFSC also will result in a technical
assignment and the termination of the Administration Agreement. It is
anticipated that, after the Transaction, either AAI will perform these
administrative tasks for the Fund directly or that the Fund's Board of Directors
will approve a new arrangement for administrative services. It is also possible
that, in connection with new arrangements for administrative services, the
Fund's Board of Directors might approve a new or revised investment management
agreement for the Fund with AAI. If a new or revised investment management
agreement is approved by the directors, approval of such agreement will
also be sought from the Fund's shareholders.
