Manor
Investment Funds, Inc.
3rd Quarter Report
1997
Fund Office:
15 Chester Commons
Malvern, PA 19355
610-722-0900 800-787-3334
Managed By:
Morris Capital Advisors, Inc.
Manor Investment Funds, Inc.
15 Chester Commons
Malvern, PA 19355
September 30, 1997
Dear Fellow Shareholders:
I am pleased to report that the Manor Fund has grown to over $1
million during this most recent quarter. This growth in assets is the
result of new shareholder contributions and market performance. I
thank each of you for contributing to our success.
In addition to the growth of the Fund as a whole, the market
value of each share increased by 7.67% for the quarter and 24.89%,
year-to-date. Our investment success is due to our philosophy of
buying good companies and sticking with them despite market
fluctuations. We will continue to invest new cash in the market as we
identify appropriate opportunities.
We recently booked some profits by selling one of our largest
holdings: Sunbeam Corp. We felt that the market already recognized the
benefits of the corporate restructuring that prompted us to make our
original purchase. We decided that it was prudent to take our profits
now rather risk an unpleasant surprise in upcoming earnings.
The 4th quarter is always a time of concern for investors, and
this year is no exception, especially considering the recent market
advance. I remain positive for the near-term, however, because I feel
that the positive influence of low inflation, moderate growth and
declining interest rates outweigh the negative effects of the strong
dollar and some high profile corporate earnings disappointments.
For the longer term, I believe that the globalization of
economies will increase growth, while keeping prices down. With the
help of low interest rates and the savings of baby boomers, funds
should continue to flow into the stock market. This will help to
create opportunities for disciplined investors.
Sincerely,
Daniel A. Morris
Manor Investment Funds, Inc.
Portfolio of Investments September 30, 1997
Market Value
Common and Preferred Stock 85.6 %
Consumer Staples 2.7 %
500 Coca Cola $ 30,500
30,500
Retail 9.6 %
680 Kmart Preferred Class T 39,780
940 McDonalds 44,768
460 Sears, Roebuck & Co. 26,191
110,739
Medical 1.0 %
2,850 Integra Life Sciences 11,934
11,934
Automobile 11.0 %
1,100 Chrysler 36,812
660 General Motors 44,179
660 Goodyear Tire 45,375
126,366
Basic Materials 4.9 %
580 Cyprus Amax Minerals 13,920
700 duPont 43,094
57,014
Construction 4.4 %
1000 Masco 50,394
50,394
Multi-Industry 10.6 %
1,460 Allied Signal 62,050
880 General Electric 59,895
121,945
Computer 11.8 %
620 Hewlett-Packard 43,129
530 Int. Bus. Machines 56,180
400 Intel 36,925
136,234
Oils 4.0 %
550 Chevron 45,684
45,684
Finance 19.2 %
710 Allstate Insurance 56,889
1,500 MBNA Corp. 60,750
880 Travelers, Inc. 60,138
1,900 US F&G Corp. 43,581
221,358
Transportation 2.9 %
360 Delta Airlines 33,907
33,907
Other 3.5 %
430 S&P 500 Dep. Rct. 40,581
40,581
Total Common and Preferred Stock 986,657
Cash and Cash Equivalents 14.4 %
FNB West Chester Money Market 166,543
166,543
Total Portfolio $ 1,153,199
Top Five Holdings September 30, 1997
% of
Company Industry Net Assets
Allied Signal Multi-Industry 5.4 %
MBNA Corp. Finance 5.3 %
Travelers Finance 5.2 %
General Electric Multi-Industry 5.2 %
Allstate Ins. Finance 4.9 %
Top Five Industries September 30, 1997
% of
Industry Net Assets
Finance 19.2 %
Computer 11.8 %
Automobile 11.0 %
Multi-Industry 10.6 %
Retail 9.6 %
Total Return Total Return Total Return
3 Months 6 Months Since Inception
Manor Investment Funds 7.67 % 20.66 % 18.27 %
S&P 500 Index 7.50 % 26.26 % 30.07 %
Lipper Growth & Income 8.37 % 23.56 % 24.74 %
Fund Index
