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Previous: UBS PRIVATE INVESTOR FUNDS INC, N-30D, 1997-03-05 |
Next: ITT HARTFORD MUTUAL FUNDS INC, 497, 1997-03-05 |
Manor
Investment Funds, Inc.
Semi-Annual Report
December 31, 1996
Fund Office:
15 Chester Commons
Malvern, PA 19355
610-722-0900 800-787-3334
Managed By:
Morris Investment
Management Services, Inc.
Manor Investment Funds, Inc.
15 Chester Commons
Malvern, PA 19355
December 31, 1996
Dear Fellow Shareholders:
The words "irrational exuberance" are now familiar to all investors.
Alan Greenspan uttered (or muttered) them in a speech before the American
Enterprise Institute in mid-December. Before the attendees finished their
dessert, stocks in Japan sold off sharply, a pattern that was repeated
throughout the world when other markets opened. While we can speculate on
the real meaning of Mr. Greenspan's comment, the immediate effect was
measurable.
Despite Mr. G's remark, the stock market recovered somewhat over the
balance of the month. I think that the markets are looking at continued
moderate economic growth and low inflation versus a bond yield of 6.5%.
With lackluster year-end retail sales, slow automobile sales, and only
moderate growth in home sales, it is unlikely that we will experience a
resurgence in sustained economic growth and inflation. As a result bond
yields could decline, supporting the stock market. If corporate earnings
are strong the market should do well through the first half of the year.
Your fund was up approximately 6.6% for the fourth quarter and 12% for
the year. Performance improved during the 4th quarter as the fund grew
through new contributions. This growth benefits all shareholders because
it reduces the impact of expenses and improves my ability to manage the
individual investments in the fund. This growth from new contributions
should continue to benefit shareholders during 1997.
I expect that 1997 will be more difficult for investors than the past
two years. Moderate economic growth and low inflation should enable the
stock market to outperform the 5.2% yield of money markets, and the 6.1%
yield of intermediate term bonds. I think that your fund will continue to
do well because it invests in well established companies with the potential
to grow.
Sincerely,
Daniel A. Morris
Top Five Holdings December 31, 1996
Company Industry % of Net
Assets
General Multi-Industry 5.0 %
Electric
Chevron Oil 4.9 %
Mc Donalds Retail 4.8 %
MBNA Corp. Finance 4.7 %
Hewlett-Packard Computer 4.5 %
Top Five Industries December 31, 1996
Industry % of Net
Assets
Finance 15.5 %
Retail 12.9 %
Multi-Industry 8.4 %
Automobile 8.1 %
Basic Material 6.3 %
Annualized
Total Total Total
Return Return Return
3 1996 Since
Months Inception
Manor Investment 6.63 % 11.90 % 9.50 %
Funds
Lipper Growth & 7.80 % 20.69 % 18.67 %
Income Fund Index
S&P 500 Index 8.34 % 22.96 % 24.07 %
Portfolio of Investments
Manor Investment Funds, Inc.
December 31, 1996
Market
Value
Common 76.1%
Stock
Consumer Staples
3.7%
280 Coca Cola $
14,735
14,735
Consumer
Discretionary
3.5%
540 Sunbeam 13,770
13,770
Retail
12.9%
320 Kmart Preferred 15,600
Class T
420 McDonalds 19,056
360 Sears, Roebuck & 16,560
Co.
51,216
Medical 1.2%
1,000 Integra Life 4,625
Sciences
4,625
Automobile
8.1%
300 General Motors 16,725
300 Goodyear Tire 15,413
32,138
Basic Materials
6.3%
580 Cyprus Amax 13,630
Minerals
120 DuPont 11,295
24,925
Construction
3.5%
380 Masco 13,680
13,680
Multi-Industry
8.4%
200 Allied Signal 13,400
200 General Electric 19,775
33,175
Computer 4.5%
350 Hewlett-Packard 17,588
17,588
Oils
4.9%
300 Chevron 19,500
19,500
Finance 15.5%
220 Allstate Insurance 12,733
450 MBNA Corp. 18,731
333 Travelers, Inc. 15,121
700 US F&G Corp. 14,613
61,198
Transportation
3.6%
200 Delta Airlines 14,175
14,175
Total Common Stock 300,72
5
Cash and Cash 23.9%
Equivalents
FNB West Chester 94,468
Money Market
94,468
Total Portfolio $
395,19
3
Statement of Assets & Liabilities
Manor Investment Funds, Inc.
December 31, 1996
Assets
Investments at market value $
(cost: $376,128.55) 395,193.
42
Receivable for:
Dividends - 0 -
Interest 76.94
76.94
395,270.
36
Liabilities and Net Assets
Payable for:
Expenses 403.62
Payable to 195.55
shareholders
600.17
$
394,670.
19
Fund Shares outstanding 35,466
Pricing of Shares
Net Asset Value per share $
11.13
Statement of Operations
Manor Investment Funds, Inc.
December 31, 1996
Investment Income
Dividends $
2,616.72
Interest 1,018.64
Accrued 18.29
Income change
$
3,653.65
Expenses
Trustee Fee 1,248.96
Misc. Fee 1,020.46
Accrued 205.01
Expense change
2,474.43
Net Investment Income 1,179.22
Realized and unrealized gain
on investments:
Realized gain on securities
transactions:
Proceeds 58,674.1
from sales 8
Cost of 58,685.0
securities sold 0
(10.82)
Unrealized
appreciation(depreciation)
of investments:
Beginning (302.50)
of period
End of 19,064.8
period 7
19,367.3
7
Net realized and unrealized 19,356.5
gain on investments 5
Net increase in net assets $
from operations 20,535.7
7
Statement of Changes in Net Assets
Manor Investment Funds, Inc.
December 31, 1996
From Operations:
Net Investment $
income 1,179.22
Net realized gain (10.82)
from security sales
Net change in 19,367.3
unrealized appreciation 7
Net increase in net assets from 20,535.7
operations 7
Deductions to shareholders from:
Net investment 1,179.19
income
Net realized short (10.82)
term gain
Net realized long - 0 -
term gain
1,168.37
From Fund share transactions:
Reinvestment of 1,168.37
dividends and gain distributions
Proceeds form shares 263,260.
sold 31
Payments from shares - 0 -
redeemed
Residual cash change (188.53)
Net increase in net assets from Fund 264,240.
share transactions 15
Total increase in net assets 283,607.
55
Net assets:
Beginning of period 111,062.
64
End of period $
394,670.
19
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