In a clear sign that insurance companies are having to decide if they should continue to be marginal players in the mutual fund industry sandbox or take their pails and shovels and go home, yet another insurance company has chosen to shut down its U.S. retail mutual fund unit.

AON Advisors, the investment advisory unit of AON Corp. of Chicago, will liquidate all assets in its $1.6 billion three-fund unit on Dec. 3. AON quietly made the announcement in an Oct. 18 filing with the Securities and Exchange Commission, but gave no reason for the funds' termination. Calls to a company spokesman were not returned.

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