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074 V010600 11.34
074 V020600 0.00
074 W000600 0.0000
074 X000600 121
074 Y000600 0
075 A000600 0
075 B000600 43769
076 000600 0.00
SIGNATURE BRIAN LAWRENCE
TITLE CONTROLLER
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> MONEY MARKET FUND
<MULTIPLIER> 1,000
<S> <C>
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<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
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<INVESTMENTS-AT-VALUE> 768265
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<SHARES-COMMON-PRIOR> 395104
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<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 32972
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<NET-INVESTMENT-INCOME> 31683
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<NET-CHANGE-FROM-OPS> 31683
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<NUMBER-OF-SHARES-SOLD> 6575729
<NUMBER-OF-SHARES-REDEEMED> 6217231
<SHARES-REINVESTED> 12754
<NET-CHANGE-IN-ASSETS> 371252
<ACCUMULATED-NII-PRIOR> 0
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<OVERDIST-NET-GAINS-PRIOR> 0
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<GROSS-EXPENSE> 2362
<AVERAGE-NET-ASSETS> 593423
<PER-SHARE-NAV-BEGIN> 1.00
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<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.22
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> ASSET ALLOCATION FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 125624
<INVESTMENTS-AT-VALUE> 164251
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 166324
<PAYABLE-FOR-SECURITIES> 1351
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<OTHER-ITEMS-LIABILITIES> 88
<TOTAL-LIABILITIES> 1439
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 119700
<SHARES-COMMON-STOCK> 9934
<SHARES-COMMON-PRIOR> 6925
<ACCUMULATED-NII-CURRENT> 271
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6179
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 38735
<NET-ASSETS> 164885
<DIVIDEND-INCOME> 1326
<INTEREST-INCOME> 1971
<OTHER-INCOME> 0
<EXPENSES-NET> 752
<NET-INVESTMENT-INCOME> 2545
<REALIZED-GAINS-CURRENT> 6331
<APPREC-INCREASE-CURRENT> 29245
<NET-CHANGE-FROM-OPS> 38121
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2279
<DISTRIBUTIONS-OF-GAINS> 290
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5318
<NUMBER-OF-SHARES-REDEEMED> 2686
<SHARES-REINVESTED> 377
<NET-CHANGE-IN-ASSETS> 76605
<ACCUMULATED-NII-PRIOR> 5
<ACCUMULATED-GAINS-PRIOR> 138
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 870
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1047
<AVERAGE-NET-ASSETS> 134112
<PER-SHARE-NAV-BEGIN> 12.75
<PER-SHARE-NII> 0.27
<PER-SHARE-GAIN-APPREC> 3.85
<PER-SHARE-DIVIDEND> 0.24
<PER-SHARE-DISTRIBUTIONS> 0.03
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.60
<EXPENSE-RATIO> 0.56
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> GOVERNMENT SECURITIES FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 99913
<INVESTMENTS-AT-VALUE> 102975
<RECEIVABLES> 1920
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 104895
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 510
<TOTAL-LIABILITIES> 510
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 101757
<SHARES-COMMON-STOCK> 9954
<SHARES-COMMON-PRIOR> 3966
<ACCUMULATED-NII-CURRENT> 9
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (443)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3062
<NET-ASSETS> 104385
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4697
<OTHER-INCOME> 0
<EXPENSES-NET> 340
<NET-INVESTMENT-INCOME> 4357
<REALIZED-GAINS-CURRENT> (412)
<APPREC-INCREASE-CURRENT> 2580
<NET-CHANGE-FROM-OPS> 6525
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4350)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5890
<NUMBER-OF-SHARES-REDEEMED> 344
<SHARES-REINVESTED> 442
<NET-CHANGE-IN-ASSETS> 63880
<ACCUMULATED-NII-PRIOR> 2
<ACCUMULATED-GAINS-PRIOR> (31)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 330
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 477
<AVERAGE-NET-ASSETS> 73573
<PER-SHARE-NAV-BEGIN> 10.21
<PER-SHARE-NII> 0.59
<PER-SHARE-GAIN-APPREC> 0.28
<PER-SHARE-DIVIDEND> 0.59
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.49
<EXPENSE-RATIO> 0.46
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> S&P 500 INDEX FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 98165
<INVESTMENTS-AT-VALUE> 118508
<RECEIVABLES> 954
<ASSETS-OTHER> 3
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 119465
<PAYABLE-FOR-SECURITIES> 796
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 57
<TOTAL-LIABILITIES> 853
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 92534
<SHARES-COMMON-STOCK> 8382
<SHARES-COMMON-PRIOR> 2400
<ACCUMULATED-NII-CURRENT> 1582
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4249
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 20247
<NET-ASSETS> 118612
<DIVIDEND-INCOME> 1740
<INTEREST-INCOME> 366
<OTHER-INCOME> 0
<EXPENSES-NET> 381
<NET-INVESTMENT-INCOME> 1725
<REALIZED-GAINS-CURRENT> 4249
<APPREC-INCREASE-CURRENT> 19397
<NET-CHANGE-FROM-OPS> 25371
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 145
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7854
<NUMBER-OF-SHARES-REDEEMED> 1888
<SHARES-REINVESTED> 16
<NET-CHANGE-IN-ASSETS> 92760
<ACCUMULATED-NII-PRIOR> 2
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 310
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 509
<AVERAGE-NET-ASSETS> 103618
<PER-SHARE-NAV-BEGIN> 10.77
<PER-SHARE-NII> 0.21
<PER-SHARE-GAIN-APPREC> 3.19
<PER-SHARE-DIVIDEND> 0.02
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.15
<EXPENSE-RATIO> 0.37
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> REIT INDEX FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 86555
<INVESTMENTS-AT-VALUE> 99753
<RECEIVABLES> 184
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 99937
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 38
<TOTAL-LIABILITIES> 38
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 83785
<SHARES-COMMON-STOCK> 7299
<SHARES-COMMON-PRIOR> 2460
<ACCUMULATED-NII-CURRENT> 2322
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 594
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 13198
<NET-ASSETS> 99899
<DIVIDEND-INCOME> 3122
<INTEREST-INCOME> 33
<OTHER-INCOME> 0
<EXPENSES-NET> 330
<NET-INVESTMENT-INCOME> 2825
<REALIZED-GAINS-CURRENT> 598
<APPREC-INCREASE-CURRENT> 12744
<NET-CHANGE-FROM-OPS> 16167
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 639
<DISTRIBUTIONS-OF-GAINS> 4
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5486
<NUMBER-OF-SHARES-REDEEMED> 700
<SHARES-REINVESTED> 53
<NET-CHANGE-IN-ASSETS> 74209
<ACCUMULATED-NII-PRIOR> 136
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 382
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 526
<AVERAGE-NET-ASSETS> 63921
<PER-SHARE-NAV-BEGIN> 10.44
<PER-SHARE-NII> 0.41
<PER-SHARE-GAIN-APPREC> 2.99
<PER-SHARE-DIVIDEND> 0.15
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.69
<EXPENSE-RATIO> 0.51
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> INTERNATIONAL EQUITY FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 51255
<INVESTMENTS-AT-VALUE> 52514
<RECEIVABLES> 134
<ASSETS-OTHER> 636
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 53284
<PAYABLE-FOR-SECURITIES> 62
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 79
<TOTAL-LIABILITIES> 141
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 49636
<SHARES-COMMON-STOCK> 4687
<SHARES-COMMON-PRIOR> 2469
<ACCUMULATED-NII-CURRENT> 471
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1670
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1366
<NET-ASSETS> 53143
<DIVIDEND-INCOME> 953
<INTEREST-INCOME> 171
<OTHER-INCOME> 0
<EXPENSES-NET> 618
<NET-INVESTMENT-INCOME> 506
<REALIZED-GAINS-CURRENT> 1691
<APPREC-INCREASE-CURRENT> 1188
<NET-CHANGE-FROM-OPS> 3385
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 55
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2493
<NUMBER-OF-SHARES-REDEEMED> 288
<SHARES-REINVESTED> 13
<NET-CHANGE-IN-ASSETS> 27966
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 1
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 419
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 711
<AVERAGE-NET-ASSETS> 44182
<PER-SHARE-NAV-BEGIN> 10.20
<PER-SHARE-NII> 0.11
<PER-SHARE-GAIN-APPREC> 1.05
<PER-SHARE-DIVIDEND> 0.02
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.34
<EXPENSE-RATIO> 1.40
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Report of Independent Auditors
The Board of Trustees
Aon Funds
In planning and performing our audit of the financial statements of each of
the Aon Funds (consisting of the Money Market Fund, Government Securities
Fund, Asset Allocation Fund, S&P 500 Index Fund, International Equity Fund and
REIT Index Fund) for the year ended October 31, 1997, we considered their
internal control, including control activities for safeguarding securities, in
order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the requirements of
Form N-SAR, not to provide assurance on the internal control.
The management of the Aon Funds is responsible for establishing and
maintaining internal control. In fulfilling this responsibility, estimates
and judgements by management are required to assess the expected benefits and
related costs of controls. Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial statements for
external purposes that are fairly presented in conformity with generally
accepted accounting principals. Those controls include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors of irregularities
may occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control would not necessarily disclose all
matters in the internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control and its operation, including controls for
safeguarding securities, that we consider to be material weaknesses as defined
above at October 31, 1997.
This report is intended solely for the information and use of the board of
trustees and management of the Aon Funds and the Securities and Exchange
Commission.
/s/ ERNST & YOUNG LLP
Chicago, Illinois
December 12, 1997
