Manor
Investment
Funds, Inc.
1st Quarter Report
1998
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
March 31,1998
Dear Fellow Shareholders:
"A year's worth of return in only three months." That
is how the Wall Street Journal described the performance of
the stock market for the 1st Quarter of 1998, and I agree.
Before the year began I counseled clients not to expect much
more than a 10% return for the year, slightly below the
average annual return of 12.5% in the stock market since
1925. We exceeded both figures for the quarter, despite
slowing corporate profits and some high profile earnings
disappointments.
I am pleased to report that your Fund appreciated 13.0%
during the quarter, outperforming the Lipper Growth and
Income Mutual Fund average by 1.6%. This was the best
quarter in our history as we outperformed all but 6 of the
23 managed stock funds at Vanguard, including Prime Cap and
the Windsor Funds.
I continue to believe that our patient investing style
serves the best interests of our shareholders over the long-
term. We look for good companies at attractive prices, with
the potential to grow. Among our top performers during the
quarter were McDonalds, Pfizer, Sears, and Merck. McDonalds
and Sears rebounded after underperforming last year when
investors focused on their problems, rather than the value
of their underlying business. Pfizer and Merck were
purchased at attractive levels during the market decline
last Fall.
I am pleased to report that the Manor Fund continued to
grow during this recent quarter, and now has $1.9 million in
total assets. This growth is the result of new shareholder
contributions and appreciation of your existing shares. I
thank each of you for contributing to our success.
Sincerely,
Daniel A. Morris
Manor Investment Funds, Inc
Portfolio of Investments
March 31, 1998
Common and 94.9 % Market
Preferred Value
Stock
Consumer Staples 7.4 %
750 Coca Cola $ 58,078
680 Gillette 80,707
138,785
Retail 9.1 %
850 Kmart Preferred 53,337
Class T
1,340 McDonalds 80,400
660 Sears, Roebuck & 37,909
171,646
Medical 7.2 %
430 Merck 55,121
810 Pfizer 80,747
135,868
Automobile 10.2 %
1,500 Chrysler 62,437
930 General Motors 63,007
880 Goodyear Tire 66,660
192,104
Basic Materials 3.6 %
1,000 DuPont 68,000
68,000
Construction 4.6%
1,460 Masco 86,870
86,870
Multi-Industry 10.3 %
1,860 Allied Signal 78,120
1,330 General Electric 114,629
192,749
Computer 10.6 %
980 Hewlett-Packard 62,108
700 Int. Bus. Machines 72,712
830 Intel 64,792
199,612
Aerospace 0.2 %
59 Raytheon 3,356
3,356
Oils 2.9 %
680 Chevron 54,613
54,613
Finance 25.7 %
1,070 Allstate Insurance 98,373
1,560 Conseco 88,335
3,450 MBNA Corp. 123,553
1,970 Travelers, Inc. 118,200
2,150 US F&G Corp. 53,616
482,077
Transportation 2.9 %
460 Delta Airlines 54,395
54,395
Total Common 1,780,075
& Preferred Stock
Cash and Cash Equivalents 5.1 %
FNB West Chester 19,597
Demand Deposit
FNB West Chester 76,420
Investor's Choice
96,017
Total Portfolio $ 1,876,092
Top Five Holdings Top Five Industries
March 31, 1998 March 31, 1998
% of % of
Company Industry Net Industry Net
Assets Assets
MBNA Corp. Finance 6.4 % Finance 25.7%
Travelers Finance 6.4 % Computer 10.6%
General Multi- 6.1 % Multi- 10.3%
Electric Industry Industry
Allstate Finance 5.3 % Automobile 10.2%
Conseco Finance 4.7 % Retail 9.0 %%
Total Total Total
Return Return Return
3 6 Since
Months Months Inception
Manor Investment 13.00 % 13.60 % 20.35 %
Funds
Lipper Growth & 11.40 % 12.49 % 25.10 %
Income Fund Index
S&P 500 Index 13.95 % 17.10 % 31.45 %
