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Previous: HARRIS INSIGHT FUNDS TRUST, 485BPOS, 1999-05-03 |
Next: CONSTELLATION ENERGY GROUP INC, 424B3, 1999-05-03 |
Manor
Investment
Funds, Inc.
1st Quarter Report
1999
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, 1999
Dear Fellow Shareholders:
I am pleased to report that the Manor Fund returned 7.24% for the
quarter ending March 31, 1999, outperforming the market and other mutual
funds in our peer group. We outperformed the S&P 500 by 2.40%, and the
Lipper Growth and Income Fund average by 5.47% (our peer group). We also
outperformed many of our "mega fund" competitors. Our return ranks us
above all but 2 of the 32 managed stock funds at Vanguard, beating Windsor
II by 5.23%, and U.S. Growth by 3.44%
Our performance was due, in part, to excellent returns from some of
our long-term holdings, and the fact that our laggards did not under
perform the market by much. Top performers this quarter included Delta
Airlines and Citigroup, two of our longest holdings, Gillette and
McDonalds, two "old time" growth stocks, and Cisco Systems, a recent
addition to the Fund.
We made some portfolio changes during the quarter, also. We sold
Goodyear Tire and Sears Roebuck, booking some profits in these long-term
holdings. Despite their low valuations, these stocks do not seem to have
a catalyst to get their price higher. We purchased ElderTrust and
AmericaOnline. ElderTrust holds properties in the health care and
retirement industries, distributing the majority of its income to
shareholders in the form of dividends. The yield alone provides an
attractive return, and the market should begin to recognize the value of
its strong cash flow. AmericaOnline is one of the premier internet
providers and has begun to generate bottom line earnings. Its recent
combination with Netscape unites two of the most recognized names on the
Internet.
I continue to believe that the Fund is well positioned for the
future. Cash inflows to the market, low inflation and low interest rates
provide a strong foundation, but I caution against undue optimism. The
recent rally to Dow 10,000 has been generated by a narrow group of large
companies. At some point the major indices could go through a period of
adjustment while this imbalance is corrected.
Sincerely,
Daniel A. Morris
Manor Investment Funds, Inc
Portfolio of Investments
March 31, 1999
Common and Preferred Stock
Consumer Staples 8.8 %
1870 Gillette 111,148
3560 Pepsico 139,507
-------
250,655
Retail 9.0 %
1,660 Kmart Preferred Class T 100,430
3,480 McDonalds 157,687
-------
258,117
Medical 7.4 %
1,360 Merck 108,970
990 Pfizer 137,363
-------
246,333
Automobile 5.2 %
1,690 General Motors 147,030
-------
147,030
Basic Materials 3.7 %
2,050 DuPont 119,028
-------
119,028
Construction 4.2%
4,210 Masco 118,933
-------
118,933
Multi-Industry 11.3 %
2,610 Allied Signal 128,379
1,750 General Electric 193,594
-------
321,973
Computer 21.6 %
670 America Online 98,490
1,335 Cisco Systems 146,266
980 Hewlett-Packard 66,456
1,080 Intel 128,385
990 Intl. Bus. Machines 175,478
-------
615,075
Oils 7.5 %
1,770 Ashland Oil 72,459
1,600 Chevron 142,000
-------
214,459
Finance 13.6 %
2,720 Allstate Insurance 100,810
1,150 Citigroup 73,456
9,630 Elder Trust 86,670
1,780 Mellon Bank 125,268
-------
386,204
Transportation 3.1 %
1,260 Delta Airlines 87,570
-------
87,570
Other 1.1 %
250 S&P 500 Depository Receipt 32,094
-------
32,094
---------
Total Common and Preferred Stock 2,797,471
Cash and Cash Equivalents 1.8 %
FNB West Chester Demand Deposit -9,166
FNB West Chester Investor's Choice 59,612
-------
50,446
---------
Total Portfolio 2,847,917
=========
Top Five Holdings March 31, 1999 Top Five Industries March 31, 1999
% of Net Industry % of Net
Company Industry Assets Assets
General Elec Multi-Industry 6.8 % Computer 21.6 %
Intl. Bus. Mach Computer 6.2 % Finance 13.6 %
McDonalds Retail 5.5 % Multi-Industry 11.3 %
General Motors Automobile 5.2 % Retail 9.0 %
Cisco Sytstems Computer 5.1 % Consumer Staples 8.8 %
Total Total
Return Return Total Return
3 Months 6 Months Since Inception
Manor Investment Funds 7.24 % 25.16 % 16.64 %
Lipper Growth & Income Fund Index 1.77 % 18.31 % 18.59 %
S&P 500 Index 4.98 % 27.33 % 27.59 %
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