Registration No. 33-99520
File Number: 811-09134
United States
Securities and Exchange Commission
Washington, DC 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X
Pre-Effective Amendment No.
Post-Effective Amendment No. 7 [X]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 X
Amendment No. 7 [X]
Exact name of Registrant as Specified in Charter:
Manor Investment Funds, Inc.
Address of Principal Executive Offices:
15 Chester Commons
Malvern, PA 19355
610-722-0900
Name and Address of Agent for Service:
Daniel A. Morris
15 Chester Commons
Malvern, PA 19355
Approximate Date of Proposed Public Offering:
As soon as practical after the Registration Statement becomes effective.
It is proposed that this filing will become effective:
X immediately upon filing pursuant to paragraph (b)
60 days after filing pursuant to paragraph (a)
on (date) pursuant to paragraph (a) of rule 485
Pursuant to the requirements of (the Securities Act of 1933
and) the Investment Company Act of 1940 the Registrant (certifies
that it meets all of the requirements for effectiveness of this
Registration Statement pursuant to Rule 485(b) under the
Securities Act of 1933 and) has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereto
duly authorized, in the Borough of Malvern, and State of
Pennsylvania on the 15th day of March, 1999.
Manor Investment Funds, Inc.
by Daniel A. Morris, President
Prospectus
April 30, 1999
Manor Investment Funds, Inc.
15 Chester Commons, Malvern, PA 19355
610-722-0900 800-787-3334
Manor Investment Funds, Inc.
Manor Investment Funds, Inc. (the _Fund_), an open-end
management investment company, was incorporated in
Pennsylvania on September 13, 1995. The Fund's registered
office is 15 Chester Commons, Malvern, PA 19355. The
company currently issues shares in three series, which we
call _Funds_. Each series has distinct investment
objectives and policies, and a shareholder's interest is
limited to the series in which he or she owns shares. The
series are the Manor Fund, Growth Fund, and Bond Fund. Each
is a _no-load_ fund, and there are no sales or 12b-1
charges.
Manor Fund For Conservative Growth & Income
Growth Fund For long-term Growth
Bond Fund For Intermediate-term Fixed Income
The funds are designed for long-term investors, including
those who wish to use shares of one or more series as a
funding vehicle for tax-deferred plans, including tax-
qualified retirement plans and Individual Retirement Account
(IRA) plans.
Fund Share Purchase
Shares of the Funds may only be purchased from the Fund at
net asset value as next determined after receipt of order.
The minimum initial purchase is $1,000 and the minimum
subsequent purchase is $100.
These securities have not been approved or disapproved by
the Securities and Exchange Commission, nor has it passed
upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense.
Manor Investment Funds, Inc.
Table of Contents
Investments, Risks, and
Performance
Investment Objectives 3
Principal Investment Strategies 3
Principal Risks 3
Performance Information 4
Fee Table
Fee Table 7
Investment Objectives, Principal
Investment Strategies & Related
Risks
Investment Objectives 8
Principal Investment Strategies 8
Related Risks 10
Management, Organization & Capital
Structure
Management 10
Investment Advisor 11
Capital Structure 11
Voting Rights 11
Shareholder Information
Pricing of Shares 12
Purchasing Shares 12
Dividends and Distributions 12
Redemptions 12
Taxes 13
Reports to Shareholders 13
Retirement Accounts 14
Distribution
Distribution 14
Account Application
Account Application 15
Financial Highlights
Financial Highlights 17
INVESTMENTS, RISKS, AND PERFORMANCE
Investment Objectives
The Manor Fund seeks long-term capital appreciation and a
moderate level of income.
The Growth Fund seeks long-term capital appreciation.
The Bond Fund seeks to provide current income.
Principal Investment Strategies
The Manor Fund invests primarily in the common stock of
large corporations with an average market
capitalization of approximately $50 billion, or more.
The Manor Fund generally invests in companies with
growing earnings and dividends, a high level of free
cash flow available to finance growth or repurchase
outstanding shares, and a strong financial structure
to support future growth. The portfolio manager uses
growth and earnings information from industry sources
and applies his own proprietary analysis to project
future valuations. The portfolio manager invests in
companies that he believes have the opportunity to
double in value over five years based on their current
price relative to future cash flows and the underlying
value of the firm's assets. The Manor Fund generally
holds individual investments for three to five years.
The Growth Fund invests primarily in the common stock of
large to mid-sized corporations with an average market
capitalization of approximately $2 billion, or more.
The Growth Fund generally invests in companies that
have strong growth in earnings or revenues, the
potential to maintain above average growth, and a
reasonable valuation relative to the growth potential.
The portfolio manager uses growth and earnings
information from industry sources and applies his own
proprietary analysis to project future valuations.
The portfolio manager invests in companies that he
believes have the opportunity to more than double in
value over five years based on their current price
relative to future cash flows and the underlying value
of the firm's assets. The Growth Fund generally holds
individual investments for three to five years.
The Bond Fund invests primarily in income producing
securities issued by the U.S. Government or Agencies
of the U.S. Government, such as U.S. Treasury bills,
notes and bonds, or GNMA's, FNMA's and FHLB's. The
Bond Fund generally maintains an average maturity of
three to seven years, depending upon the interest rate
and economic environment.
Principal Risks
An investor could lose money through their investment in the
funds. The Funds are intended for long-term investors who
can accept fluctuations in value and other risks associated
with seeking the investment objectives of each Fund.
Risks in the Manor Fund include:
? the possibility of a general decline in the stock
market,
? the possibility that a shift in economic conditions
will adversely impact large corporations,
? or that the Fund manager will be unsuccessful in
identifying attractive investments.
Risks in the Growth Fund include:
? the possibility of a general decline in the stock
market,
? the possibility that a shift in economic conditions
will adversely impact companies with high growth
rates,
? or that the Fund manager will be unsuccessful in
identifying attractive investments.
Risks in the Bond Fund include:
? the possibility that a rise in interest rates or
inflation expectations will result in a decline in
the value of portfolio investments,
? or that the portfolio manager will be unsuccessful in
structuring the portfolio to take advantage of shifts
in the interest rate markets.
In addition to the risks outlined above each Fund carries
the risk that, Daniel A. Morris, the portfolio manager will
be unable to perform his duties due to death or disability.
Performance Information
The bar chart and table below provide an indication of the
risk of investing in the Funds. The Bar chart shows the
performance for each fund since inception. The table shows
how the average annual returns for each Fund compare to a
broad-based securities index and an average of other Funds
in a peer group. Keep in mind that past performance does
not indicate how the Funds will perform in the future. The
calculation assumes reinvestment of all dividends and
distributions and reflects the effect of all recurring fees
but ignores individual income tax consequences to
stockholders.
Performance Information for the Manor Fund
During the period shown in the bar chart above the lowest
return for a calendar quarter for the Manor Fund was -15.5%
during the 3rd Quarter of 1998, the highest return was 16.7%
during the 4th Quarter of 1998.
Average Annual Total Returns for the Years Ended December 31, 1999
Total Return
Since
1 Year 3 Years Inception
9/25/95
Manor Fund 10.95 % 16.55 % 14.13 %
Lipper Growth & 11.28 % 17.04 % 17.15 %
Income Fund Index
S&P 500 Index 21.04 % 27.55 % 25.82 %
The primary index for comparison is the Lipper Growth &
Income Fund Index. This index, compiled by Lipper
Analytical, Inc., is comprised of other mutual funds managed
using similar investment objectives as the Manor Fund. The
S&P 500 is a broad market index of large capitalization
stocks.
Performance Information for the Growth Fund
During the period shown in the bar chart above the lowest
return for a calendar quarter for the Growth Fund was -3.3%
during the 3rd Quarter of 1999, the highest return was 21.2%
during the 4th Quarter of 1999.
Average Annual Total Returns for the Period Ended December 31, 1999
Since
3 Months Year to Inception
Date 6/30/99
Growth Fund 21.20 % 17.20 % 17.20 %
Lipper Growth Fund 19.86 % 13.58 % 13.58 %
Index
S&P Mid-Cap Index 17.19 % 7.34 % 7.34 %
The primary index for comparison is the Lipper Growth Fund
Index. This index, compiled by Lipper Analytical, Inc., is
comprised of other mutual funds managed using similar
investment objectives as the Manor Fund. The S&P Mid-Cap
index is a broad market index of mid-capitalization stocks.
Performance Information for the Bond Fund
During the period shown in the bar chart above the lowest
return for a calendar quarter for the Bond Fund was -0.7%
during the 4th Quarter of 1999, the highest return was 0.40%
during the 3rd Quarter of 1999.
Average Annual Total Returns for the Period Ended December 31, 1999
Since
3 Month Year to Inception
Date 6/30/99
Bond Fund -0.17 % 0.23 % 0.23 %
Lipper US Government -0.06 % 0.32 % 0.32 %
Fund Index
Lehman Intermediate -0.07 % 1.03 % 1.03 %
Government
The primary index for comparison is the Lipper US Government
Fund Index. This index, compiled by Lipper Analytical,
Inc., is comprised of other mutual funds managed using
similar investment objectives as the Manor Fund. The Lehman
Intermediate Government Index is an index of US Government
Notes with a maximum maturity of 10 years.
FEE TABLE
The following table describes the fees and expenses that are
incurred when you buy, hold or sell shares of the fund. The
expenses shown under Annual Fund Operating Expenses are
based upon those incurred in the fiscal year ending December
31, 1998 for the Manor Fund.
Manor Growth Bond
Fund Fund Fund
Annual Fund Operating Expenses
(expenses that are deducted from fund assets)
Management fees 1.0% 1.0% 0.5%
All other expenses 0.5% 0.5% 0.5%
Total operating expenses * 1.5% 1.5% 1.0%
* The expenses shown for the Growth Fund and the Bond Fund
are estimates based on the expected operating expenses of
those Funds for their first full year of operation.
Example
This example is intended to help you compare the cost of
investing in each Fund with the cost of investing in other
mutual funds.
The Example assumes that you invest $10,000 in the Fund for
the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and
that the Fund's operating expenses remain the same.
Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Fund 1 Year 3 Years 5 Years 10 Years
Manor Fund $ 156 $ 488 $ 843 $ 1,628
Growth Fund $ 156 $ 488 NA NA
Bond Fund $ 105 $ 327 NA NA
This example should not be considered a representation of
past or future expenses or performance. Actual expenses may
be greater or less than those shown.
The Growth Fund and the Bond Fund are new funds. It is
expected that the Growth Fund will not incur operating
expenses greater than 1.5% during its first year of
operation. It is expected that the Bond Fund will not incur
operating expenses greater than 1.0% during its first year
of operation.
INVESTMENT OBJECTIVES, PRINCIPAL INVESTMENT STRATEGIES &
RELATED RISKS
Investment Objectives
The Manor Fund seeks long-term capital appreciation and a
moderate level of income.
The Growth Fund seeks long-term capital appreciation.
The Bond Fund seeks to provide current income.
Principal Investment Strategies
The Manor Fund invests primarily in the common stock of
large corporations with an average market
capitalization of approximately $50 billion, or more.
The fund may also invest in the preferred stock or the
corporate fixed income securities of these companies
that are convertible into common stock. The primary
consideration in the selection of stock investments
for the Manor Fund is the current price of the shares
relative to the earnings and potential growth of
earnings for each company. The Manor Fund generally
invests in companies with growing earnings and
dividends, a high level of free cash flow available to
finance growth or repurchase outstanding shares, and a
strong financial structure to support future growth.
The portfolio manager uses growth and earnings
information from industry sources and applies his own
proprietary analysis to project future valuations.
The portfolio manager invests in companies that he
believes have the opportunity to double in value over
five years based on their current price relative to
future cash flows and the underlying value of the
firm's assets.
Under normal market conditions, the Manor Fund should
be fully invested. To the extent that investments
meeting a Fund's criteria for investment are not
available, or when the Advisor considers a temporary
defensive posture advisable, the Fund may invest
without limitation in high-quality corporate debt
obligations of U.S. companies, U.S. government and
agency obligations, or money market instruments.
The Manor Fund generally holds individual investments
for three to five years. The Fund will not borrow or
invest in foreign securities, and no more than 5% of
the Fund's net assets will be invested in companies
that do not have three years of continuous operations.
The Fund may also invest in exchange traded securities
that track the value of an underlying basket of
securities such as the S&P 500 Index or the S&P Mid-
Cap Index.
In seeking to achieve its investment objective, the
Manor Fund ordinarily invests on a long-term basis.
Occasionally, securities may be sold within 12 months
of purchase if circumstances of a particular company,
industry, or the general market should change. The
Fund does not propose to purchase securities for short
term trading in the ordinary course of operations.
Accordingly, it is expected that the annual turnover
rate will not exceed 50%. There may be times when
management deems it advisable to substantially alter
the composition of the portfolio, in which event, the
portfolio turnover rate might substantially exceed
50%; this would only result from special circumstances
and not from the Fund's normal operations.
The Growth Fund invests primarily in the common stock of
large to mid-sized corporations with an average market
capitalization of approximately $2 billion, or more.
The Growth Fund generally invests in companies that
have strong growth in earnings or revenues, the
potential to maintain above average growth, and a
reasonable valuation relative to the growth potential.
The Growth Fund generally invests in companies with a
high level of free cash flow available to finance
growth or repurchase outstanding shares, and products
or services that provide a comparative advantage over
competitors. The portfolio manager uses growth and
earnings information from industry sources and applies
his own proprietary analysis to project future
valuations. The portfolio manager invests in
companies that he believes have the opportunity to
more than double in value over five years based on
their current price relative to future cash flows and
the underlying value of the firm's assets.
Under normal market conditions, the Growth Fund should
be fully invested. To the extent that investments
meeting a Fund's criteria for investment are not
available, or when the Advisor considers a temporary
defensive posture advisable, the Fund may invest
without limitation in high-quality corporate debt
obligations of U.S. companies, U.S. government and
agency obligations, or money market instruments.
The Growth Fund generally holds individual investments
for three to five years. The Fund will not borrow or
invest in foreign securities, and no more than 5% of
the Fund's net assets will be invested in companies
that do not have three years of continuous operations.
The Fund may also invest in exchange traded securities
that track the value of an underlying basket of
securities such as the S&P 500 Index or the S&P Mid-
Cap Index.
In seeking to achieve its investment objective, the
Growth Fund ordinarily invests on a long-term basis.
Occasionally, securities may be sold within 12 months
of purchase if circumstances of a particular company,
industry, or the general market should change. The
Fund does not propose to purchase securities for short
term trading in the ordinary course of operations.
Accordingly, it is expected that the annual turnover
rate will not exceed 50%. There may be times when
management deems it advisable to substantially alter
the composition of the portfolio, in which event, the
portfolio turnover rate might substantially exceed
50%; this would only result from special circumstances
and not from the Fund's normal operations.
The Bond Fund invests primarily in income producing
securities issued by the U.S. Government or Agencies
of the U.S. Government, such as U.S. Treasury bills,
notes and bonds, or GNMA's, FNMA's and FHLB's. The
Bond Fund generally maintains an average maturity of
three to seven years, depending upon the interest rate
and economic environment. The Bond Fund generally
maintains an overall credit rating of A or better for
portfolio securities, as measured by Moodys or S&P.
The Fund may also invest in short term securities
issued at a discount to face value such as U.S.
Treasury bills. Zero coupon securities with
maturities greater than one year will not generally
comprise more than 10% of the portfolio.
The Bond Fund will generally hold investments to
maturity; however, positions may be liquidated to
shift the interest rate sensitivity of the portfolio
in response to changing market and economic
conditions. The portfolio manager will actively
manage the average maturity of the portfolio by
reducing the maturity of portfolio securities in
anticipation of rising interest rate environments and
extending the maturity of portfolio securities in
anticipation of falling interest rate environments.
The Fund may also invest up to 35% of the portfolio in
corporate debt instruments if these investments
provide attractive return potential.
Related Risks
In addition to the risks associated with the investment
strategy for any particular fund an investor is subject to
risk from general market fluctuations, interest rate shifts,
credit risk, and the effect of inflation.
Market Risk
In the event of a general market decline the value of the
funds could decline even if the manager has moved to a
defensive position. The values of investments may change,
and possibly decrease, perhaps severely, in response to
fluctuations in the stock market generally.
Interest Rate Risk
If interest rates increase the value of portfolio
investments could decline as the market adjusts to the
reduced demand for stock and long term bond investments.
The potential for fluctuations in bond prices is primarily
due to changes in interest rates. Bonds with longer
maturities have greater interest rate risk than bonds of
shorter maturities.
Credit Risk
Credit risk could impact the value of specific stock or bond
investments, or an entire industry sector, if investors
become concerned abut the ability of creditors to continue
debt service on an ongoing basis. Credit risk is the chance
that the issuer of a bond will default on its promise to pay
interest and or principal at maturity. Credit ratings are
an attempt to assess this risk. Generally, the lower a
bond's credit rating the higher the interest the bond must
pay to attract investors and compensate them for taking
additional risk.
Inflation Risk
Inflation is the impact of rising prices over time, it has
the effect of reducing the future value of financial assets
due to decreased purchasing power. For an investor to be
better off their portfolio must increase in value faster
than the rate of inflation. Inflation, and investor's
expectation of future inflation, also effects the current
value of portfolio investments. If investors expect
inflation to rise in the future they will demand a higher
return to compensate for the increase. This will force the
price of fixed income securities lower, raising yields. The
increase in yields will increase the financing costs for
companies, thereby reducing earnings. The reduction in
earnings could then lead to lower stock prices.
MANAGEMENT, ORGANIZATION & CAPITAL STRUCTURE
Management
Shareholders meet annually to elect all members of the Board
of Directors, select an independent auditor, and vote on any
other items deemed pertinent by the incumbent Board. The
Directors supervise the operation of the Fund in accordance
with its stated objectives, policies, and investment
restrictions. The Board appoints the officers to run the
Fund and selects an Investment Adviser to provide investment
advice. It meets four times a year to review Fund progress
and status. In addition, a non-interested Director performs
an independent audit whenever requested by the Board.
Investment Adviser
Morris Capital Advisors, Inc., 15 Chester Commons, Malvern,
PA is a Pennsylvania corporation that acts as sole
Investment Adviser to the Fund. Mr. Daniel A. Morris owns
all outstanding shares of Morris Capital Advisors, Inc. He
is the director and officer of the Investment Adviser and is
also president of the Fund.
Daniel A. Morris is responsible for security analysis and
portfolio management decisions on a day-to-day basis. Mr.
Morris has been a shareholder, executive officer and
portfolio manager for investment advisors to mutual funds
and other investors since 1981.
On September 18, 1995 the shareholders of the Fund approved
a management and advisory contract with Morris Capital
Advisors, Inc., to act as Investment Adviser of the Fund,
which was unanimously approved by the Board of Directors.
This agreement will continue on a year to year basis
provided that approval is voted at least annually by a
majority of the directors of the Fund who are neither
parties to the agreement nor interested persons as defined
in the Investment Company Act of 1940.
Under the agreement, the Investment Adviser will direct the
purchase or sale of investment securities in accordance with
the stated objectives of the Fund, under the review of the
Directors of the Fund. The Agreement may be terminated at
any time, without the payment of any penalty, by the Board
of Directors or by vote of a majority of the outstanding
voting securities of the Fund on not more than 60 days'
written notice to the Investment Adviser. In the event of
its assignment, the Agreement will terminate automatically.
For these services the Fund has agreed to pay to Morris
Capital Advisors, Incorporated a fee of 1% per year on the
net assets of the Funds (0.5% for the Bond Fund). This rate
of the advisory fee is generally higher than that paid by
most mutual funds. All fees are computed on the average
daily closing net asset value of the Fund and are payable
monthly. The Investment Adviser will forego all or a
portion of its fees in order to hold the total expenses of
the Funds to no more than 1.5% of averaged assets (1.0% for
the Bond Fund).
Pursuant to its contract with the Fund, the Investment
Adviser is required to render research, statistical, and
advisory services to the Fund; and to make specific
recommendations based on the Fund's investment requirements.
Fees of the custodian, registrar, and transfer agents shall
be paid by the Fund. The Fund pays all other expenses,
including fees and expenses of directors not affiliated with
the Adviser, if any; legal and accounting fees; interest,
taxes, and brokerage commissions, record keeping and the
expense of operating its offices. The Investment Adviser
has paid the initial organizational costs of the Fund and
will reimburse the Fund for any and all losses incurred
because of rescinded purchases.
Capital Structure
The authorized capitalization of the Funds is 10,000,000
shares of common stock of $.001 par value per share. Each
Fund share has equal dividend, distribution and liquidation
rights of that Fund.
Voting Rights
Each holder of common stock has one vote for each share
held. Voting rights are non-cumulative, which means that
the holders of a majority of shares of common stock can
elect all the directors of the Fund if they so choose, and
the holders of the remaining shares will not be able to
elect any person as a director. Issues specific to a
particular Fund are voted only by shareholders of that Fund.
SHAREHOLDER INFORMATION
Pricing of Shares
The net asset value of the Fund's shares are determined as
of the close of trading (presently 4:00 p.m.) on the New
York Stock Exchange on each business day the Exchange is
open. The Exchange is closed on most national holidays.
The net asset value is not calculated if the New York Stock
Exchange is closed for trading. The price is determined by
dividing the value of its securities, plus any cash and
other assets less all liabilities, by the number of shares
outstanding. The market value of securities listed on a
national exchange is determined to be the last recent sales
price on such exchange. Listed securities that have not
recently traded and over-the-counter securities are valued
at the last bid price in such market. Short term paper
(debt obligations that mature in less than 60 days) are
valued at amortized cost which approximates market value.
Other assets are valued at fair value as determined in good
faith by the Board of Directors.
Purchasing Shares
The offering price of shares is the net asset value per
share next determined after receipt of the purchase order by
the Fund and is computed in the manner described under the
caption _PRICING OF SHARES_ in this prospectus. The Fund
reserves the right at its sole discretion to terminate the
offering of its shares made by this Prospectus at any time
and to reject purchase applications when, in the judgment of
the management such termination or rejection is in the best
interests of the Fund. The Fund will maintain an account
for each shareholder.
Initial purchase of shares of the Fund must be made by
application to the Fund. To purchase shares mail a check
payable to Manor Investment Funds, Inc., complete the
application form included in this prospectus, and mail to
Manor Investment Funds, 15 Chester Commons, Malvern, PA
19355. For additional information contact the Fund at 610-
722-0900. Subsequent purchases may be made by mail or in
person. The minimum is $100, but less may be accepted under
special circumstances. Shareholders may also authorize the
fund to automatically debit their bank account to purchase
shares by completing the necessary information on their
account application. Shareholders may also purchase shares
of any Fund by directing a transfer from another Fund by
telephone. Shares can also be purchased by automatic
payroll deduction, or by automatic deduction from an account
that you specify.
Dividends and Distributions
The Fund will automatically retain and reinvest dividends
and capital gain distributions and purchase additional
shares for the shareholder at net asset value as of the
close of business on the distribution date. A shareholder
may at any time by letter or forms supplied by the Fund
direct the fund to pay dividend and/or capital gains
distributions, if any, to such shareholder in cash.
Redemptions
The Fund will redeem all or any portion of the total amount
of the shares of any shareholder upon written request for
redemption signed by the shareholder. Proper endorsements
guaranteed either by a national bank or a member firm of the
New York Stock Exchange may be required unless management
knows the shareholder.
Shares are redeemed at the net asset value per share next
determined after notice is received by the Fund. The
proceeds received by the shareholder may be more or less
than the cost of such shares, depending upon the net asset
value per share at the time of redemption; the difference
should be treated by the shareholder as a capital gain or
loss for federal income tax purposes.
Payment by the Fund will ordinarily be made by check within
seven days after tender. The Fund may suspend the right of
redemption or postpone the date of payment if: The New York
Stock Exchange is closed for other than customary weekend or
holiday closings, or when trading on the New York Stock
Exchange is restricted as determined by the Securities and
Exchange Commission or when the Securities and Exchange
Commission has determined that an emergency exists, making
disposal of fund securities or valuation of net assets not
reasonably practicable.
To redeem shares send your written request to Manor
Investment Funds, 15 Chester Commons, Malvern, PA 19355.
For additional information contact the Fund at 610-722-0900.
Taxes
The Fund will endeavor to qualify annually for and elect tax
treatment applicable to a regulated investment company under
Subchapter M of the Internal Revenue Code (the _Code_).
Distribution of any net long-term capital gains realized by
the fund will be taxable to the shareholder as long-term
capital gains, regardless of the length of time Fund shares
have been held by the investor. All income realized by the
Fund including short-term capital gains, will be taxable to
the shareholder as ordinary income. Dividends from net
income will be made annually or more frequently at the
discretion of the Fund's Board of Directors. Dividends
received shortly after purchase of shares by an investor
will have the effect of reducing the per share net asset
value of his shares by the amount of such dividends or
distributions and, although in effect a return of capital,
are subject to federal income taxes.
The Fund is required by Federal law to withhold 31% of
reportable payments (which may include dividends, capital
gains, distributions and redemptions) paid to shareholders
who have not complied with IRS regulations. In order to
avoid this withholding requirement, you must certify on the
application form supplied by the Fund that your Social
Security or Taxpayer Identification Number provided is
correct and that you are not currently subject to back-up
withholding, or that you are exempt from back-up
withholding.
Reports to Shareholders
The Fund sends shareholders quarterly reports showing the
value of their account and the performance of the Fund.
Shareholders also receive annual reports containing
certified financial statements and other periodic reports,
at least semiannually, containing unaudited financial
statements.
Retirement Accounts
The Fund maintains Individual Retirement Accounts that allow
you to invest in a Regular IRA, Roth IRA or SIMPLE IRA on a
tax deferred basis. You may also _roll over_ or transfer a
lump sum distribution from a qualified pension or profit-
sharing plan to your IRA, thereby postponing federal income
tax on the distribution. If your employer has a Simplified
Employee Pension Plan (SEP), you may establish a Regular IRA
with the Fund to which your employer may contribute, subject
to special rules designed to avoid discrimination.
There is no charge to open and maintain an IRA account with
Manor Investment Funds. The Board of Directors may change
this policy if they deem it to be in the best interests of
all shareholders. All IRA's may be revoked within 7 days of
their establishment with no penalty. A Disclosure Statement
describing the general provisions of the retirement account
is provided for all prospective account holders, as required
by U.S. Treasury Regulations.
DISTRIBUTION
The Fund acts as transfer agent for its own shares. First
National Bank of Chester County acts as trustee for the
Fund.
Manor Investment Funds, Inc.
New Account Application
Use this form for individual, custodial, trust, profit
sharing or pension plan accounts. For any additional
information please contact the Fund at 610-722-0900 or 800-
787-3334.
1. Investments Fund Selection:
(must total 100%)
Manor Fund _____ %
Growth Fund _____ %
Bond Fund _____ %
Initial Investment: $ ______________________
(Minimum initial investment $1,000)
Make your check payable to:
Manor Investment Funds, Inc.
15 Chester Commons, Malvern, PA 19355
2. Registration (please print)
Individual ____________________________________________________
First Name MI Last Name SocialSecurity # Birthdate
Joint Owner* __________________________________________________
First Name MI Last Name SocialSecurity # Birthdate
* Registration will be Joint Tenancy with Rights of
survivorship (JTWROS) unless otherwise specified.
Gift to Minors ________________________________________________
Custodian's First Name MI Last Name
________________________________________________
Minor's First Name MI Last Name
________________________________________________
Minor's SocialSecurity # Birthdate State of Residence
Corporation ___________________________________________________
Trust, Estate Name of Trustees(If to be included in
registration)
Pension Plan
Partnership ___________________________________________________
Name
Other Entity _________________________________________________
Social Security # or Tax ID # Date of Agreement
**Corporate Resolution is required.
*** Additional documentation and certification may be required.
3. Mailing Address (please print)
_____________________________________________________________
Street Apt./Suite
________________________________ _______ ______________
City State Zip
______________________________ __________________________
Daytime Phone # Evening Phone #
Application continued on next page.
4. Distribution Options
Dividends and capital gains will be reinvested if no
option is selected.
___Pay all income in cash.____Pay all capital gains in cash.
5. Signature and Certification required by the Internal
Revenue Service
Neither the Fund nor its transfer agent will be
responsible for the authenticity of transaction
instructions received by telephone, provided that
reasonable security procedures have been followed.
Under the penalty of perjury, I certify that (1) the
Social Security Number or Taxpayer Identification
Number shown on this form is my correct Taxpayer
Identification Number, and (2) I am not subject to
backup withholding either as a result of a failure to
report all interest or dividends, or the IRS has
notified me that I am no longer subject to backup
withholding. The IRS does not require your consent to
any provision of the document other than the
certifications required to avoid backup withholding.
_________________________________________________
Signature of Owner or Custodian Date
_________________________________________________
Signature of Co-owner Date
If shares are to be registered in (1) joint names, both
persons should sign, (2) a custodian for a minor, the
custodian should sign, (3) a trust, the trustee(s)
should sign, or (4) a corporation or other entity, an
officer should sign and print name and title on the
space provided below.
Print name and title of officer signing for a
corporation or other entity
6. Automatic Deposit Authorization
I authorize Manor Investment Funds, Inc. to instruct my
bank/savings institution to make withdrawals from the
account listed below to be deposited in my account with
the Fund. I understand this authorization may be
revoked by me at any time by providing Manor Investment
Funds, Inc. with a written notice to discontinue my
automatic payments.
Amount: ___________________
Monthly Quarterly
15th day of the Month Last business day of the month
Financial Institution: ______________________
Bank phone number:____________________
Your Account Number: ____________________
Bank routing number:____________________
Signature:________________________________________
Date:____________________
Signature:________________________________________
Date:____________________
Please include a voided check.
FINANCIAL HIGHLIGHTS INFORMATION
The financial highlights table is intended to help you
understand the Fund's financial performance since inception.
Certain information reflects financial results for a single
Fund share. The total returns in the table represent the
rate that an investor would have earned on an investment in
the Fund (assuming reinvestment of all dividends and
distributions). This information has been audited by Claude
B. Granese, CPA, whose report, along with the Fund's
financial statements, are included in the Statement of
Additional Information and the Annual Report, which is
available upon request.
Manor Fund
Year Year Year Year Since
Ending Ending Ending Ending Incepton
1999 1998 1997 1996 9/30/95
PER SHARE OPERATING
PERFORMANCE:
Net Asset Value, $ 15.46 $13.77 $11.13 $ 9.97 $ 10.00
beginning
Net Investment Income 0.07 0.03 0.06 0.03 0.02
(loss)
Net Realized & 1.62 1.85 2.78 1.16 -0.02
Unrealized Gain(loss) ---- ---- ---- ---- -----
Total from Operations 1.69 1.88 2.84 1.19 0.00
Dividends from net 0.07 0.03 0.04 0.03 0.03
investment income
Dividends from net -0- 0.16 0.16 -0- -0-
realized gains ---- ---- ---- ---- ----
0.07 0.19 0.20 0.03 0.03
---- ---- ---- ---- ----
Net Asset Value, ending $17.08 $15.46 $13.77 $11.13 $9.97
===== ===== ===== ===== ====
Total Investment Return 10.95% 13.65% 25.52% 11.98% -0.3%
===== ===== ===== ===== ====
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of year $2,956 $2,659 $1,499 $ 395 $ 111
(000's)
Ratio of expenses to 1.50 % 1.50 % 1.42 % 1.50 % 0.38 %*
average net assets
Ratio of Net Investment Income
to Average Assets 0.44 % 0.22 % 0.50 % 0.67 % 0.34 %*
Portfolio Turnover rate 19 % 23 % 27 % 14 % - 0 -
* 1.24% and 1.50%, respectively when annualized
Bond Fund
Since Inception
9/30/95
PER SHARE OPERATING PEFORMANCE:
Net Asset Value, $10.00
beginning
Net Investment Income (loss) - 0 -
Net Realized & Unrealized Gain(loss) 1.72
-----
Total from Operations 1.72
Dividends from net investment income - 0 -
Dividends from net realized gains - 0 -
-----
- 0 -
-----
Net Asset Value, ending $11.72
======
Total Investment Return 17.20%
======
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of year (000's) $1,137
Ratio of expenses to average net assets 1.49 %
Ratio of Net Investment Income
to Average Assets 0.01 %
Portfolio Turnover rate 4 %
Bond Fund
Since Inception
6/30/99
PER SHARE OPERATING PERFORMANCE:
Net Asset Value, beginning $10.00
Net Investment Income (loss) 0.18
Net Realized & Unrealized Gain(loss) -0.20
-----
Total from Operations 0.02
Dividends from net investment income 0.12
Dividends from net realized gains - 0 -
-----
0.12
Net Asset Value, ending $ 9.90
======
Total Investment Return 0.23 %
======
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of year (000's) $ 427
Ratio of expenses to average net assets 1.00 %
Ratio of Net Investment Income 3.58 %
to Average Assets
Portfolio Turnover rate - 0 -
PROSPECTUS
Manor Investment Funds, Inc.
15 Chester Commons, Malvern, PA 19355
610-722-0900 800-787-3334
A no-load open-end management investment company issuing
shares in three series,
the Manor Fund, Growth Fund, and Bond Fund. The Funds are
designed for long-term investors.
Additional Information
Additional information about the Fund's investments is
available in the Fund's annual and semi-annual reports to
shareholders. In the Fund's annual report you will find a
discussion of the market conditions and investment
strategies that significantly affected the Fund's
performance during its last fiscal year.
This Prospectus, which should be retained for future
reference, is designed to set forth concisely the
information that you should know before you invest. A
Statement of Additional Information (SAI), dated April 30,
1999, is incorporated by reference into this prospectus.
This means that it is legally part of this Prospectus. A
copy of the SAI may be obtained without charge by writing or
calling the Fund directly at 800-787-3334. Annual and Semi-
annual reports are also available upon request.
Information about the Fund (including the SAI) can be
reviewed and copied at the Commission's Public Reference
Room in Washington, D.C. Information on the operation of
the public reference room may be obtained by calling the
Commission at 1-800-SEC-0330. Reports and other information
about the Fund are available on the Commission's Internet
site at http:\\www.sec.gov. Copies may be obtained, upon
payment of a duplicating fee, by writing the Public
Reference Section of the SEC, Washington, DC 20549-6009.
Investment Company Act File No. 811-09134
FORM N-1A
PART B
STATEMENT OF ADDITIONAL INFORMATION
April 30, 1999
Manor Investment Funds, Inc.
Malvern, PA 19355
610-722-0900
800-787-3334
This Statement of Additional Information is not a Prospectus, and
should be read in conjunction with the Fund's current Prospectus
(dated April 30, 1999). To obtain the Prospectus, please write
the Fund or call either of the telephone numbers that are shown
above.
TABLE OF CONTENTS
Fund History 1
Description of the Fund and its 2
Investments & Risks
Management of the Fund 5
Control Persons and Principal 6
Holders of Securities
Investment Advisory and Other 6
Services
Brokerage Allocation and Other 6
Practices
Capital Stock and Other 7
Securities
Purchase, Redemption and Pricing 7
of Shares
Taxation of the Fund 8
Underwriters 9
Calculation of Performance Data 9
Financial Statements _ Manor 10
Fund
Financial Statements _ Growth 22
Fund
Financial Statements _ Bond Fund 32
No person has been authorized to give any information or to make
any representations other than those contained in this Statement
of Additional Information and the Prospectus dated April 30, 1999
and, if given or made, such information or representations may
not be relied upon as having been authorized by Manor Investment
Funds, Inc.
This Statement of Additional Information does not constitute an
offer to sell securities.
FUND HISTORY
Manor Investment Funds, Inc. (the "Fund") is an open-end
management investment company. The Fund was incorporated in
Pennsylvania on September 13, 1995. The Fund's registered office
is 15 Chester Commons, Malvern, PA 19355. The company currently
issues shares in three series, which we call _Funds_. Each
series has distinct investment objectives and policies, and a
shareholder's interest is limited to the series in which he or
she owns shares. The series are the Manor Fund, Growth Fund, and
Bond Fund. Each is a "no-load" fund, and there are no sales or
12b-1 charges.
DESCRIPTION OF THE FUNDS AND ITS INVESTMENTS AND RISKS
The mutual funds offered are the Manor Fund, Growth Fund, and
Bond Fund. Each of the Funds is a no-load "mutual fund." There
is no commission or charge when shares are purchased, and no 12b-
1 charges. The Funds are a series of Manor Investment Funds,
Inc., and each Fund is a separate portfolio of securities and
other assets, with its own investment objective and policies.
Morris Capital Advisors, Inc. provides investment advisory and
administrative services to the Funds.
Investment Objectives
The Manor Fund seeks long-term capital appreciation and a
moderate level of income.
The Growth Fund seeks long-term capital appreciation.
The Bond Fund seeks to provide current income.
Principal Investment Strategies
The Manor Fund invests primarily in the common stock of large
corporations with an average market capitalization of
approximately $50 billion, or more. The fund may also
invest in the preferred stock or the corporate fixed income
securities of these companies that are convertible into
common stock. The primary consideration in the selection of
stock investments for the Manor Fund is the current price
of the shares relative to the earnings and potential growth
of earnings for each company. The Manor Fund generally
invests in companies with growing earnings and dividends, a
high level of free cash flow available to finance growth or
repurchase outstanding shares, and a strong financial
structure to support future growth. The portfolio manager
uses growth and earnings information from industry sources
and applies his own proprietary analysis to project future
valuations. The portfolio manager invests in companies
that he believes have the opportunity to double in value
over five years based on their current price relative to
future cash flows and the underlying value of the firm's
assets.
Under normal market conditions, the Manor Fund should be
fully invested. To the extent that investments meeting a
Fund's criteria for investment are not available, or when
the Advisor considers a temporary defensive posture
advisable, the Fund may invest without limitation in high-
quality corporate debt obligations of U.S. companies, U.S.
government and agency obligations, or money market
instruments.
The Manor Fund generally holds individual investments for
three to five years. The Fund will not borrow or invest in
foreign securities, and no more than 5% of the Fund's net
assets will be invested in companies that do not have three
years of continuous operations. The Fund may also invest in
exchange traded securities that track the value of an
underlying basket of securities such as the S&P 500 Index
or the S&P Mid-Cap Index.
In seeking to achieve its investment objective, the Manor
Fund ordinarily invests on a long-term basis.
Occasionally, securities may be sold within 12 months of
purchase if circumstances of a particular company,
industry, or the general market should change. The Fund
does not propose to purchase securities for short term
trading in the ordinary course of operations. Accordingly,
it is expected that the annual turnover rate will not
exceed 50%. There may be times when management deems it
advisable to substantially alter the composition of the
portfolio, in which event, the portfolio turnover rate
might substantially exceed 50%; this would only result from
special circumstances and not from the Fund's normal
operations.
The Growth Fund invests primarily in the common stock of large
to mid-sized corporations with an average market
capitalization of approximately $2 billion, or more. The
Growth Fund generally invests in companies that have strong
growth in earnings or revenues, the potential to maintain
above average growth, and a reasonable valuation relative
to the growth potential. The Growth Fund generally invests
in companies with a high level of free cash flow available
to finance growth or repurchase outstanding shares, and
products or services that provide a comparative advantage
over competitors. The portfolio manager uses growth and
earnings information from industry sources and applies his
own proprietary analysis to project future valuations. The
portfolio manager invests in companies that he believes
have the opportunity to more than double in value over five
years based on their current price relative to future cash
flows and the underlying value of the firm's assets.
Under normal market conditions, the Growth Fund should be
fully invested. To the extent that investments meeting a
Fund's criteria for investment are not available, or when
the Advisor considers a temporary defensive posture
advisable, the Fund may invest without limitation in high-
quality corporate debt obligations of U.S. companies, U.S.
government and agency obligations, or money market
instruments.
The Growth Fund generally holds individual investments for
three to five years. The Fund will not borrow or invest in
foreign securities, and no more than 5% of the Fund's net
assets will be invested in companies that do not have three
years of continuous operations. The Fund may also invest in
exchange traded securities that track the value of an
underlying basket of securities such as the S&P 500 Index
or the S&P Mid-Cap Index.
In seeking to achieve its investment objective, the Growth
Fund ordinarily invests on a long-term basis.
Occasionally, securities may be sold within 12 months of
purchase if circumstances of a particular company,
industry, or the general market should change. The Fund
does not propose to purchase securities for short term
trading in the ordinary course of operations. Accordingly,
it is expected that the annual turnover rate will not
exceed 50%. There may be times when management deems it
advisable to substantially alter the composition of the
portfolio, in which event, the portfolio turnover rate
might substantially exceed 50%; this would only result from
special circumstances and not from the Fund's normal
operations.
The Bond Fund invests primarily in income producing securities
issued by the U.S. Government or Agencies of the U.S.
Government, such as U.S. Treasury bills, notes and bonds,
or GNMA's, FNMA's and FHLB's. The Bond Fund generally
maintains an average maturity of three to seven years,
depending upon the interest rate and economic environment.
The Bond Fund generally maintains an overall credit rating
of A or better for portfolio securities, as measured by
Moodys or S&P. The Fund may also invest in short term
securities issued at a discount to face value such as U.S.
Treasury bills. Zero coupon securities with maturities
greater than one year will not generally comprise more than
10% of the portfolio.
The Bond Fund will generally hold investments to maturity;
however, positions may be liquidated to shift the interest
rate sensitivity of the portfolio in response to changing
market and economic conditions. The portfolio manager will
actively manage the average maturity of the portfolio by
reducing the maturity of portfolio securities in
anticipation of rising interest rate environments and
extending the maturity of portfolio securities in
anticipation of falling interest rate environments. The
Fund may also invest up to 35% of the portfolio in
corporate debt instruments if these investments provide
attractive return potential.
Related Risks
In addition to the risks associated with the investment strategy
for any particular fund an investor is subject to risk from
general market fluctuations, interest rate shifts, credit risk,
and the effect of inflation.
Market Risk
In the event of a general market decline the value of the funds
could decline even if the manager has moved to a defensive
position. The values of investments may change, and possibly
decrease, perhaps severely, in response to fluctuations in the
stock market generally.
Interest Rate Risk
If interest rates increase the value of portfolio investments
could decline as the market adjusts to the reduced demand for
stock and long term bond investments. The potential for
fluctuations in bond prices is primarily due to changes in
interest rates. Bonds with longer maturities have greater
interest rate risk than bonds of shorter maturities.
Credit Risk
Credit risk could impact the value of specific stock or bond
investments, or an entire industry sector, if investors become
concerned abut the ability of creditors to continue debt service
on an ongoing basis. Credit risk is the chance that the issuer
of a bond will default on its promise to pay interest and or
principal at maturity. Credit ratings are an attempt to assess
this risk. Generally, the lower a bond's credit rating the
higher the interest the bond must pay to attract investors and
compensate them for taking additional risk.
Inflation Risk
Inflation is the impact of rising prices over time, it has the
effect of reducing the future value of financial assets due to
decreased purchasing power. For an investor to be better off
their portfolio must increase in value faster than the rate of
inflation. Inflation, and investor's expectation of future
inflation, also effects the current value of portfolio
investments. If investors expect inflation to rise in the future
they will demand a higher return to compensate for the increase.
This will force the price of fixed income securities lower,
raising yields. The increase in yields will increase the
financing costs for companies, thereby reducing earnings. The
reduction in earnings could then lead to lower stock prices.
Other Strategies
Under normal market conditions, each Fund should be fully
invested in the types of securities described above. Within the
limitations described in this prospectus, the percentages of Fund
assets invested will vary in accordance with the judgment of the
Advisor. To the extent that investments meeting a Fund's
criteria for investment are not available, or when the Advisor
considers a temporary defensive posture advisable, the Fund may
invest without limitation in high-quality corporate debt
obligations of U.S. companies, U.S. government and agency
obligations, or money market instruments.
In seeking to achieve its investment objective, each Fund
ordinarily invests on a long-term basis. Occasionally,
securities purchased on a long-term basis may be sold within 12
months of purchase if circumstances of a particular company,
industry, or the general market should change.
Portfolio Turnover Policy
The Fund does not propose to purchase securities for short term
trading in the ordinary course of operations. Accordingly, it is
expected that the annual turnover rate will not exceed 50%, as
computed by dividing the lesser of the Fund's total purchases or
sales of securities within the period by the average monthly
portfolio value of the Fund during such period. There may be
times when management deems it advisable to substantially alter
the composition of the portfolio, in which event, the portfolio
turnover rate might substantially exceed 50%; this would only
result from special circumstances and not from the Fund's normal
operations.
Policies
The By-Laws of the Fund provide the following fundamental
investment restrictions; the Fund may not, except by the approval
of a majority of the outstanding shares:
(a) Act as underwriter for securities of other issuers except
insofar as the Fund may be deemed an underwriter in disposing
of its own portfolio.
(b) Issue senior securities, borrow money, or purchase securities
on margin, but may obtain such short term credit as may be
necessary for clearance of purchases and sales of securities
for temporary or emergency purposes in an amount not exceeding
5% of the value of its total assets.
(c) Sell securities short.
(d) Invest in securities of other investment companies except as
part of a merger, consolidation, or purchase of assets approved
by the Fund's shareholders or by purchases with no more that
10% of the Fund's assets in the open market involving only
customary brokers commissions.
(e) Invest more that 25% of its assets at the time of purchase in
any one industry.
(f) Make investments in commodities, commodity contracts or real
estate although the Fund may purchase and sell securities of
companies which deal in real estate or interests therein.
(g) Make loans. The purchase of a portion of a readily
marketable issue of publicly distributed bonds, debentures or
other debt securities will not be considered the making of a
loan.
(h) Acquire more than 10% of the securities of any class of
another issuer, treating all preferred securities of an issuer
as a single class and all debt securities as a single class, or
acquire more than 10% of the voting securities of another
issuer.
(i) Invest in companies for the purpose of acquiring control.
(j) Purchase or retain securities of any issuer if the officers
and directors of the Fund or its Investment Adviser owning
individually more than 1/2 of 1% of any class of security,
collectively own more than 5% of such class of securities of
such issuer.
(k) Pledge, mortgage or hypothecate any of its assets.
(l) Invest in securities which may be subject to registration
under the Securities Act of 1933 prior to sale to the public or
which are not at the time of purchase readily salable.
(m) Invest more than 5% of the total Fund assets, taken at market
value at the time of purchase, in securities of companies with
less than three years' continuous operation, including the
operations of any predecessor.
MANAGEMENT OF THE FUND
Board of Directors
The Officers and Directors of the Fund have agreed to serve
without compensation, their addresses, principal occupations
during the past five years are:
DANIEL A. MORRIS
Mr. Morris is President of the Fund and President of
Morris Capital Advisors, Inc., investment adviser to
the Fund. Prior to founding Morris Capital Advisors,
Inc., he was Senior Vice President of Consistent Asset
Management Company, an investment adviser for separate
accounts and registered investment companies. Mr.
Morris resides at 304 Albermarle Grove, West Chester,
PA. As President of the Fund, he is considered an
Interested Director.
BRUCE LAVERTY
Mr. Laverty is a Partner of the law firm Laverty, Muth
& Miller, legal counsel to the Fund. Mr. Laverty
resides at 568 Spring Oaks Road, West Chester, PA. As
Legal Counsel to the Fund, he is considered an
Interested Director.
ALAN WEINTRAUB
Mr. Weintraub is a Senior Consultant with The Gartner
Group, Stanford, CT. Mr. Weintraub resides at 305
Albermarle Grove, West Chester, PA.
JAMES MCFADDEN
Mr. McFadden is Vice President of Marketing for MBNA
Corporation. Mr. McFadden resides at 461 Crescent
Drive, West Chester, PA.
FRED MYERS
Mr. Myers is founding Partner of the accounting firm of
Myers & Associates, CPA's. Mr. Myers resides at 302
Albermarle Grove, West Chester, PA.
RICHARD KUND, JR.
Mr. Kund is marketing manager of Professional
Detailing, Inc. Mr. Kund resides at 304 Hidden Creek
Drive, Hatboro, PA.
EDWARD ERLICHMAN
Mr. Erlichman is President of Kara Aerospace. Mr.
Erlichman resides at P.O. Box 513, Bedford, PA.
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES
As of December 31, 1999, Daniel A. Morris owned or beneficially
owned 8.7% of the value of Fund shares outstanding. As of December 31,
1999, two other shareholders, owned or beneficially owned more than 5%
of the value of the Fund shares outstanding. Bradley Allen and Lance
DeFrancisco owned or beneficially owned 8.8% and 6.1%, respectively,
of the value of the Fund shares outstanding. The Officers and
Directors owned or beneficially owned as a group 17.4% of the value of
the Fund shares outstanding. Other than the foregoing, the Fund was
not aware of any person who, as of December 31, 1998,owned or
beneficially owned more than 5% of the value of the Fund shares
outstanding.
As of December 31, 1998, four shareholders, in addition to Mr. Morris,
owned or beneficially owned more than 5% of the then outstanding shares
of the Fund. Daniel K Schafer owned 22, 129, or 12.9% of the Fund,
Marvin Tavel owned 9,213 shares, or 5.4%, Bradley J. Allen owned 9,143,
or 5.3% and William P Becker owned 9,142.5 shares, or 5.3%. Other than
the foregoing, the Fund was not aware of any person who, as of
December 31, 1998, owned or beneficially owned more than 5% of the shares
of the Fund.
INVESTMENT ADVISORY AND OTHER SERVICES
Morris Capital Advisors, Inc., 15 Chester Commons Street,
Malvern, PA, is a Pennsylvania corporation that acts as sole
Investment Adviser to the Fund. Mr. Daniel A. Morris is the sole
owner, director and officer of the Investment Adviser and is also
president of the Fund. Mr. Morris owns all outstanding shares of
Morris Capital Advisors, Inc. and he is the largest shareholder
of Manor Investment Funds. Mr. Morris has been a shareholder,
executive officer and portfolio manager for investment advisers
to mutual funds and other investors since 1981.
On September 18, 1995 the shareholders of the Fund approved a
management and advisory contract with Morris Capital Advisors,
Inc., to act as Investment Adviser of the Fund, which was
unanimously approved by the Board of Directors. This agreement
will continue on a year to year basis provided that approval is
voted at least annually by a majority of the directors of the
Fund who are neither parties to the agreement nor interested
persons as defined in the Investment Company Act of 1940.
Under the agreement, the Investment Adviser will direct the
purchase or sale of investment securities in accordance with the
stated objectives of the Fund, under the review of the Directors
of the Fund. The Agreement may be terminated at any time,
without the payment of any penalty, by the Board of Directors or
by vote of a majority of the outstanding voting securities of the
Fund on not more than 60 days' written notice to the Investment
Adviser. In the event of its assignment, the Agreement will
terminate automatically. For these services the Fund has agreed
to pay to Morris Capital Advisors, Incorporated a fee of 1% per
year on the net assets of the Funds (0.5% for the Bond Fund).
This rate is generally higher than that paid by most mutual
funds. All fees are computed on the average daily closing net
asset value of the Fund and are payable monthly. The Investment
Adviser will forego all or a portion of its fees in order to hold
the total expenses of the Fund to no more than 1.5% of averaged
assets (1.0% for the Bond Fund).
Pursuant to its contract with the Fund, the Investment Adviser is
required to render research, statistical, and advisory services
to the Fund; and to make specific recommendations based on the
Fund's investment requirements. Fees of the custodian,
registrar, and transfer agents shall be paid by the Fund. The
Fund pays all other expenses, including fees and expenses of
directors not affiliated with the Adviser, if any; legal and
accounting fees; interest, taxes, and brokerage commissions,
record-keeping and the expense of operating its offices. The
Investment Adviser has paid the initial organizational costs of
the Fund and will reimburse the Fund for any and all losses
incurred because of rescinded purchases.
BROKERAGE ALLOCATION AND OTHER PRACTICES
The Fund requires all brokers to effect transactions in portfolio
securities in such a manner as to get prompt execution of the
orders at the most favorable price. Where consistent with best
price and execution and in light of its limited resources, the
Fund will deal with primary market makers in placing over-the-
counter portfolio orders.
The Fund places all orders for purchase and sale of its portfolio
securities through the Fund President who is answerable to the
Fund Board of Directors. He may select brokers who, in addition
to meeting the primary requirements of execution and price, have
furnished statistical or other factual information and services,
which, in the opinion of management, are helpful or necessary to
the Fund's normal operations. Those services may include
economic studies, industry studies, security analysis and
reports, sales literature and statistical services furnished
either directly to the Fund or to the Adviser. No effort is made
in any given circumstance to determine the value of these
materials or services or the amount by which they might have
reduced expenses of the Adviser.
Brokerage commissions for the year ended December 31, 1999 was
$3,629. Other than set forth above, the Fund has no fixed
policy, formula, method or criteria which it uses in allocating
brokerage business to brokers furnishing materials and services.
The Board of Directors evaluates and reviews the reasonableness
of brokerage commissions paid semiannually.
CAPITAL STOCK AND OTHER SECURITIES
The authorized capitalization of the Funds is 10,000,000 shares
of common stock of $.001 par value per share. Each Fund share
has equal dividend, distribution and liquidation rights of that
Fund.
Voting Rights
Each holder of common stock has one vote for each share held.
Voting rights are non-cumulative, which means that the holders of
a majority of shares of common stock can elect all the directors
of the Fund if they so choose, and the holders of the remaining
shares will not be able to elect any person as a director.
Issues specific to a particular Fund are voted only by
shareholders of that Fund.
PURCHASE, REDEMPTION AND PRICING OF SHARES
Purchasing Shares
The offering price of shares is the net asset value per share
next determined after receipt of the purchase order by the Fund
and is computed in the manner described under the caption
"PRICING OF SHARES" in this prospectus. The Fund reserves the
right at its sole discretion to terminate the offering of its
shares made by this Prospectus at any time and to reject purchase
applications when, in the judgment of the management such
termination or rejection is in the best interests of the Fund.
The Fund will maintain an account for each shareholder.
Initial purchase of shares of the Fund must be made by
application to the Fund. To purchase shares mail a check payable
to Manor Investment Funds, Inc., complete the application form
included in this prospectus, and mail to Manor Investment Funds,
15 Chester Commons, Malvern, PA 19355. For additional
information contact the Fund at 610-722-0900. Subsequent
purchases may be made by mail or in person. The minimum is $100,
but less may be accepted under special circumstances.
Shareholders may also authorize the fund to automatically debit
their bank account to purchase shares by completing the necessary
information on their account application. Shareholders may also
purchase shares of any Fund by directing a transfer from another
Fund by telephone. Shares can also be purchased by automatic
payroll deduction, or by automatic deduction from an account that
you specify.
Dividends and Distributions
The Fund will automatically retain and reinvest dividends and
capital gain distributions and purchase additional shares for the
shareholder at net asset value as of the close of business on the
distribution date. A shareholder may at any time by letter or
forms supplied by the Fund direct the fund to pay dividend and/or
capital gains distributions, if any, to such shareholder in cash.
Redemptions
The Fund will redeem all or any portion of the total amount of
the shares of any shareholder upon written request for redemption
signed by the shareholder. Proper endorsements guaranteed either
by a national bank or a member firm of the New York Stock
Exchange may be required unless management knows the shareholder.
Shares are redeemed at the net asset value per share next
determined after notice is received by the Fund. The proceeds
received by the shareholder may be more or less than the cost of
such shares, depending upon the net asset value per share at the
time of redemption; the difference should be treated by the
shareholder as a capital gain or loss for federal income tax
purposes.
Payment by the Fund will ordinarily be made by check within seven
days after tender. The Fund may suspend the right of redemption
or postpone the date of payment if: The New York Stock Exchange
is closed for other than customary weekend or holiday closings,
or when trading on the New York Stock Exchange is restricted as
determined by the Securities and Exchange Commission or when the
Securities and Exchange Commission has determined that an
emergency exists, making disposal of fund securities or valuation
of net assets not reasonably practicable.
To redeem shares send your written request to Manor Investment
Funds, 15 Chester Commons, Malvern, PA 19355. For additional
information contact the Fund at 610-722-0900.
Pricing of Shares
The net asset value of the Fund's shares are determined as of the
close of trading on the New York Stock Exchange on each business
day the Exchange is open (presently 4:00 p.m.). The net asset
value is not calculated if the New York Stock Exchange is closed
for trading. The price is determined by dividing the value of
its securities, plus any cash and other assets less all
liabilities, by the number of shares outstanding. The market
value of securities listed on a national exchange is determined
to be the last recent sales price on such exchange. Listed
securities that have not recently traded and over-the-counter
securities are valued at the last bid price in such market.
Short term paper (debt obligations that mature in less than 60
days) are valued at amortized cost which approximates market
value. Other assets are valued at fair value as determined in
good faith by the Board of Directors.
TAXATION OF THE FUND
The Fund will endeavor to qualify annually for and elect tax
treatment applicable to a regulated investment company under
Subchapter M of the Internal Revenue Code (the "Code"). To
qualify as a "regulated investment company" under Subchapter M,
at least 90% of the Fund's income must be derived from dividends,
interest and gains form securities transactions, and no more than
50% of the Fund's assets may be in security holdings of any
issuer that exceed 5% of the total assets of the Fund at the time
of purchase.
Distribution of any net long-term capital gains realized by the
fund will be taxable to the shareholder as long-term capital
gains, regardless of the length of time Fund shares have been
held by the investor. All income realized by the Fund including
short-term capital gains, will be taxable to the shareholder as
ordinary income. Dividends from net income will be made annually
or more frequently at the discretion of the Fund's Board of
Directors. Dividends received shortly after purchase of shares
by an investor will have the effect of reducing the per share net
asset value of his shares by the amount of such dividends or
distributions and, although in effect a return of capital, are
subject to federal income taxes.
The Fund is required by Federal law to withhold 31% of reportable
payments (which may include dividends, capital gains,
distributions and redemptions) paid to shareholders who have not
complied with IRS regulations. In order to avoid this
withholding requirement, you must certify on the application form
supplied by the Fund that your Social Security or Taxpayer
Identification Number provided is correct and that you are not
currently subject to back-up withholding, or that you are exempt
from back-up withholding.
UNDERWRITERS
The Fund acts as its own underwriter.
CALCULATION OF PERFORMANCE DATA
Any total rate of return quotation for the Fund will be for a
period of three or more months and will assume the reinvestment
of all dividends and capital gains distributions which were made
by the Fund during that period. Any period total rate of return
quotation of the fund will be calculated by dividing the net
change in value of a hypothetical shareholder account established
by an initial payment of $1,000 at the beginning of the period by
1,000. The net change in the value of a shareholder account is
determined by subtracting $1,000 from the product obtained by
multiplying the net asset value per share at the end of the
period by the sum obtained by adding (A) the number of shares
purchased at the beginning of the period plus (B) the number of
shares purchased during the period with reinvested dividends and
distributions. Any average annual compounded total rate of
return quotation of the Fund will be calculated by dividing the
redeemable value at the end of the period (i.e., the product
referred to in the preceding sentence) by $1,000. A root equal
to the period, measured in years, in question is then determined
and 1 is subtracted from such root to determine the average
annual compounded total rate of return.
The foregoing computation may also be expressed by the following
formula:
P(1+T)^n = ERV
P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value of a
hypothetical $1,000 payment made at the
beginning of the stated periods at the end
of the stated periods.
MANOR INVESTMENT FUNDS, INC.
MALVERN, PENNSYLVANIA
MANOR FUND
Financial Statements
For the Year Ended
December 31, 1999
and
Independent Auditor's Report
Independent Auditor's Report
To the Shareholders and
Board of Directors
Manor Investment Funds, Inc.
I have audited the accompanying statement of assets and
liabilities of Manor Fund (the Fund), including the schedule of
investments, as of December 31, 1999, and the related statement
of operations for the year then ended, the statements of changes
in net assets for each of the two years in the period then ended,
and the financial highlights for the years ended December 31,
1999, 1998, 1997 and 1996 and for the period ended December 31,
1995. These financial statements and financial highlights
(hereafter referred to collectively as "financial statements")
are the responsibility of the Fund's management. My
responsibility is to express an opinion on these financial
statements based on my audits.
I conducted my audits in accordance with generally accepted
auditing standards. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. My
procedures included confirmation of securities owned as of
December 31, 1999, by correspondence with the custodian and
broker. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
I believe that my audits provide a reasonable basis for my
opinion.
In my opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Manor
Fund as of December 31, 1999, the results of its operations for
the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial
highlights for the years ended December 31, 1999, 1998, 1997 and
1996, and the period ended December 31, 1995, in conformity with
generally accepted accounting principles.
Claude B. Granese, CPA
Spring House, Pennsylvania
January 19, 2000
MANOR INVESTMENT FUNDS, INC.
MANOR FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
ASSETS
Investments at market value
(identified cost $2,224,274)
(Notes 2 and 5)
$ 2,912,783
Cash 44,173
Dividends and interest receivable 1,605
Total Assets 2,958,516
LIABILITIES
Accrued Expenses 2,550
Total Liabilities 2,550
NET ASSETS
Net Assets applicable to Fund shares $ 2,955,966
outstanding
Fund Shares outstanding (Note 4) 173,040.552
PRICING OF SHARES
Net asset value per share $ 17.08
The accompanying notes are an integral part of the financial statements.
MANOR INVESTMENT FUNDS, INC.
MANOR FUND
SCHEDULE OF INVESTMENTS
December 31, 1999
Market
COMMON STOCK (Shares) % Cost Value
Automobile
1,690 General Motors 4.2% $ 93,448 $ 122,842
1,181 Delphi Automotive 0.6% 18,489 18,601
4.8% 111,938 141,443
Basic Materials
2,050 DuPont 4.6% 123,938 135,044
Computer
1,660 America Online 4.3% 105,044 125,952
2,470 Cisco Systems 9.1% 76,096 264,599
980 Hewlett-Packard 3.8% 55,083 111,475
2,160 Intel 6.1% 99,894 177,795
1,980 International 7.3% 96,750 213,593
Business Machines
30.7% 432,867 893,414
Construction
4,210 Masco 3.7% 96,704 106,829
Consumer Staples
1,710 Tribune Co 3.2% 89,826 94,157
3,560 PepsiCo 4.3% 140,965 125,490
7.5% 230,791 219,647
Finance
2,720 Allstate Insurance 2.2% 103,852 65,450
2,100 Citigroup 4.0% 84,531 116,944
9,630 Elder Trust 2.0% 77,618 58,382
3,560 Mellon Bank 4.2% 130,071 121,262
12.4% 396,072 362,038
Industrial Products
2,240 Tyco Intl. Ltd. 3.0% 99,677 87,360
Schedule continued on next page.
MANOR INVESTMENT FUNDS, INC.
MANOR FUND
SCHEDULE OF INVESTMENTS (continued)
December 31, 1999
Market
COMMON STOCK (Shares) % Cost Value
Medical
1,600 Merck 3.7% $ 96,479 107,500
2,970 Pfizer 3.3% 77,962 96,339
7.0% 174,441 203,839
Multi-Industry
1,550 General Electric 8.2% 112,769 239,863
2,610 Honeywell 5.2% 103,267 150,564
International
13.4% 216,036 390,427
Oil
1,600 Chevron 4.8% 126,422 138,600
Retail
3,030 McDonalds 4.2% 83,927 122,147
1,000 Tandy Corp 1.7% 70,092 49,187
5.9% 154,019 171,334
Schedule continued on next page.
MANOR INVESTMENT FUNDS, INC.
MANOR FUND
SCHEDULE OF INVESTMENTS (continued)
December 31, 1999
Market
% Cost Value
Transportation
1,260 Delta Airlines 2.2% 61,369 62,763
TOTAL COMMON STOCK 100% 2,224,274 2,912,738
TOTAL INVESTMENTS IN SECURITIES 100% $2,224,274 $2,912,738
The accompanying notes are an integral part of the financial
statements.
MANOR INVESTMENT FUNDS, INC.
STATEMENT OF OPERATIONS
MANOR FUND
Year Ended December 31, 1999
Investment Income
Dividends $ 51,768.58
Interest 6,782.02
Accrued Income change (332.26)
Total investment income $ 58,218.34
Expenses
Advisory and management fee
(Note 6) 29,629.35
Custodian fee (Note 7) 1,819.55
Misc. Fee 17,630.92
Accrued Expense change (4,4146.66)
Net expenses 44,933.16
Net Investment Income 13,285.18
Realized and Unrealized Gain on
Investments (Note 5)
Realized gain on securities
transactions:
Proceeds from sales 577,90.36
Cost of securities sold 621,611.96
(43,703.60)
Unrealized Appreciation
(Depreciation) of Investments
Beginning of Period 356,149,27
End of Period 688,464.09
332,314.82
Net Realized and Unrealized Gain on 288,611.22
Investments
Net Increase in Net Assets
Resulting from Operations $301,896.40
The accompanying notes are an integral part of the
financial statements.
MANOR INVESTMENT FUNDS, INC.
MANOR FUND
STATEMENTS OF CHANGES IN NET ASSETS
Years Ended December 31, 1999, 1998 and 1997
1999 1998 1997
Increase in Net Assets from Operations
Investment income-net $13,285.18 $ 4,738 $ 4,196
Net realized gain on
investments (43,703.60) 26,880 17,520
Change in unrealized
appreciation 332,314.82 198,891 138,193
Net increase in net assets
resulting from operations 301,869.40 230,509 159,909
Distributions to Shareholders
from
Investment income-net (12,478.54) (4,738) (3,942)
Net realized gain on
investments - (26,880) (17,520)
Capital Share Transactions
(Note 4) 14,221.98 954,033 966,285
Total Increase 303,639.84 1,152,924 1,104,732
Net Assets
Beginning of year 2,652,325.93 1,499,402 394,670
End of year 2,955,965.77 $2,652,326 $1,499,402
The accompanying notes are an integral part of the financial statements.
MANOR INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS
MANOR FUND
Years Ended December 31, 1999, 1998, 1997 and 1996
Period Ended December 31, 1995
PER SHARE DATA (1) 1999 1998 1997 1996 1995
Investment income $ 0.32 $ 0.26 $ 0.25 $ 0.22 $ 0.07
Expenses 0.25 0.23 0.19 0.15 0.04
Investment income-net 0.07 0.03 0.06 0.07 0.03
Dividends from net
Investment income (0.07) (0.03) (0.06) (0.07) (0.03)
Distributions from
realized capital
gains - (0.19) (0.26) - -
Initial capitalization of - - - - 10.00
Fund
Net increase in net asset 1.62 1.69 2.64 1.16 9.97
Value
Net asset value
Beginning of period 15.46 13.77 11.13 9.97 -
End of period $17.08 $15.46 $13.77 $11.13 $9.97
(1) Selected data based on weighted average shares
outstanding.
TOTAL INVESTMENT RETURN $10.95 13.65% 25.52% 11.98% -0.30%
RATIOS (to Average Net
Assets)
(2)
Investment income-net 0.44% 0.22% 0.50% 0.67% 0.34%
Expenses 1.50% 1.50% 1.42% 1.50% 0.38%
(2) 1.24 % and 1.50 %, respectively when annualized.
PORTFOLIO TURNOVER RATE 19% 23% 27% 15% 0%
The accompanying notes are an integral part of the financial
statements
MANOR INVESTMENT FUNDS, INC.
MANOR FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
Note 1-Organization
Manor Investment Funds, Inc. (the Company) was incorporated in
Pennsylvania on September 13, 1995. The Company was in the
initial stages of development until January 27, 1996 when it
began to sell shares of its stock for investment in the Manor
Fund, to the public. It is an open-end, non-diversified
management investment company that is registered under the
Investment Company Act of 1940. The Company consists of three
portfolios including Manor Fund (the Fund), Manor Growth Fund,
and Manor Bond Fund.
The Fund's primary investment objective is conservative capital
appreciation and current income. It invests primarily in common
stock of large U. S. corporations. The Manor Growth Fund seeks to
provide long-term capital appreciation. The Manor Bond Fund seeks
to provide intermediate-term fixed income.
Note 2-Significant Accounting Policies
These financial statements reflect only the financial position,
results of operations, changes in its net assets and financial
highlights including selected per share data, total investment
return, ratios and turnover of Manor Fund. The financial
statements of the other two funds are presented separately.
The following significant accounting policies are in conformity
with generally accepted accounting principles for investment
companies:
Security Valuation and Accounting-Investments in securities
traded on a national securities exchange (or reported on the
NASDAQ national market) are stated at the last reported sales
price on the day of valuation.
The Fund follows industry practice and records security
transactions on the trade date.
Cash-Cash consists of checking and money market accounts with the
custodian. As financial instruments, such accounts potentially
subject the Fund to concentration of credit risk. The carrying
value of these accounts approximates market value due to their
short-term nature.
Federal Income Taxes-The Fund intends to continue to qualify as a
regulated investment company and distribute substantially all of
its taxable income. Accordingly, no provision for federal income
taxes is required in the financial statements.
Distributions-Distributions to shareholders, which are determined
in accordance with income tax regulations, are recorded on the
ex-dividend date.
MANOR INVESTMENT FUNDS, INC.
MANOR FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1999
Development Stage-During its development stage there was
virtually no change in Fund net assets from net investment income
and unrealized securities losses.
Accounting Estimates-The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
Other- Dividend income is recognized on the ex-dividend date, and
interest income is recognized on the accrual basis. When
applicable, discounts on short-term U. S. government obligations
are accreted over the life of the obligation.
Professional fees include nonrecurring expenses of $6,300 for
consulting on a shareholder accounting system.
Certain reclassifications have been made to the financial
highlights for 1995 through 1998 to conform with current period
presentation.
As a mutual fund, the Fund's portfolio of investments is subject
to stock market risk and inflation risk.
Note 3-Distributions to Shareholders
On December 27, 1999, a distribution of $.073 per share,
aggregating $12,479, was declared from net investment income. The
dividend was paid on December 27, 1999 to shareholders of record
on December 24, 1999.
On December 28, 1998, a distribution of $.19 per share,
aggregating $31,618 was declared from net investment income and
realized gains. The dividend was paid on December 28, 1998 to
shareholders of record on December 24, 1998.
Note 4-Capital Share Transactions
At December 31, 1999, there were 10,000,000 shares of $.001 par
value capital stock authorized. Paid-in capital of Manor Fund
totaled $2,268,447. Daniel A. Morris (see note 6), President of
the Manor Investment Funds, Inc., and his wife own 11,931 shares
of the Fund's outstanding stock with a value of $203,785.
Directors own 12,939 shares of Manor Fund stock with a value of
$220,998.
MANOR INVESTMENT FUNDS, INC.
MANOR FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1999
Note 4-Capital Share Transactions (Continued)
Transactions in capital stock were as follows:
Shares Amount
1999 1998 1999 1998
Shares sold 68,784 96,232 $1,124,979 $1,468,246
Shares issued in
reinvestment of
dividends 737 2,044 12,479 31,618
69,521 98,276 1,137,458 1,499,864
Shares redeemed 68,003 35,680 1,123,225 545,831
Net increase 1,518 62,596 $ 14,223 $ 954,033
Note 5-Investment Transactions
Purchases of investment securities aggregated $822,401 in 1999;
sales aggregated $577,909. Net gain on investments for the year
ended December 31, 1999 was $288,611, after realizing capital
losses aggregating $43,704. For tax purposes, such capital losses
will be carried forward to offset future realized capital gains.
If not used in eight years, such capital losses will expire in
2007.
At December 31, 1999, net unrealized appreciation of investment
securities for financial reporting and federal income tax
reporting was $688,464, consisting of unrealized gains of
$803,608 on securities that had risen in value since their
purchase, and $115,144 in unrealized losses on securities that
had fallen in value since their purchase.
Note 6-Investment Advisory Fee
The Fund has an investment management and advisory services
agreement (the Agreement) with Morris Capital Advisors, Inc.
(Morris). Morris' sole shareholder, officer and director is
Daniel A. Morris.
Monthly, the Fund is required to pay Morris a fee (aggregating
$29,629 in 1999) equivalent to one percent per annum of the daily
average net assets of the Fund. The Fund bears expenses necessary
and incidental to the conduct of its business.
The Agreement must be approved annually by a majority vote of the
Fund's non-interested Board of Directors.
MANOR INVESTMENT FUNDS, INC.
MANOR FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1999
Note 7-Custody Agreement
Under an agreement, The First National Bank of West Chester (FNB)
acts as the Fund's custodian. FNB's fees are charged in
accordance with its standard rates for such services, payable
monthly. Such fees were $1,820 for the year ended December 31,
1999.
MANOR INVESTMENT FUNDS, INC.
MALVERN, PENNSYLVANIA
GROWTH FUND
Financial Statements
For the Six Months Ended
December 31, 1999
and
Independent Auditor's Report
Independent Auditor's Report
To the Shareholders and
Board of Directors
Manor Investment Funds, Inc.
I have audited the accompanying statement of assets and
liabilities of Manor Growth Fund (the Growth Fund), including the
schedule of investments, as of December 31, 1999, and the related
statements of operations and changes in net assets, and the
financial highlights for the six months then ended. These
financial statements and financial highlights (hereafter referred
to collectively as "financial statements") are the responsibility
of the Growth Fund's management. My responsibility is to express
an opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted
auditing standards. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. My
procedures included confirmation of securities owned as of
December 31, 1999, by correspondence with the custodian and
broker. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
I believe that my audit provides a reasonable basis for my
opinion.
In my opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Manor
Growth Fund as of December 31, 1999, the results of its
operations and the changes in its net assets, and the financial
highlights for the six months then ended, in conformity with
generally accepted accounting principles.
Claude B. Granese, CPA
Spring House, Pennsylvania
January 19, 2000
MANOR INVESTMENT FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
GROWTH FUND
Six Months Ended December 31, 1999
ASSETS
Investments at market value
(identified cost $947,634) $1,068,943
(Notes 2 and 5)
Cash 367,825
Interest receivable 112
Total Assets 1,436,880
LIABILITIES
Payable for investment securities
purchased 299,090
Accrued Expenses 338
Total Liabilities 299,428
NET ASSETS
Net assets (equivalent to $11.72 per share
Based on 97,023 shares of capital stock
Outstanding) (Note 4) $ 1,137,452
The accompanying notes are an integral part of the
financial statements.
MANOR INVESTMENT FUNDS, INC.
GROWTH FUND
SCHEDULE OF INVESTMENTS
Six Months Ended December 31, 1999
Market
COMMON STOCK (Shares) % Cost Value
Consumer Staples
470 Jones New York 1.2% 14,956 12,749
Consumer Discretionary
220 Cablevision 1.6% 16,608 16,610
Retail
1,900 Bergen Brunswig 1.5% 25,201 15,794
2,730 Charming Shoppes 1.7% 18,340 18,086
3.2% 43,541 33,880
Medical
580 Biogen 4.6% 44,622 49,010
1,890 Ivax Corp 4.6% 42,155 48,667
9.1% 86,777 97,677
Automobile
360 Lear Corp 1.1% 13,693 11,520
Industrial Products
1,420 Allied Waste 1.2% 19,670 12,514
2.500 Sensormatic 4.1% 39,422 43,594
Electronics
5.2% 59,092 56,108
Computer
920 BMC Software 6.9% 59,364 73,542
310 Cisco Systems 3.1% 31,924 33,209
1,370 Dell Computer 6.5% 61,641 69,870
820 Intel 6.3% 64,144 67,496
490 Microsoft 5.4% 49,188 57,208
380 Oracle Corp. 4.0% 32,619 42,584
980 Sun Microsystems 7.1% 48,021 75,889
1,400 Xilinx 6.0% 53,749 63,656
45.2% 400,650 483,454
Schedule continued on next page.
MANOR INVESTMENT FUNDS, INC.
GROWTH FUND
SCHEDULE OF INVESTMENTS (continued)
December 31, 1999
Market
COMMON STOCK (Shares) % Cost Value
Oils
1,470 Global Marine 2.3% 23,565 24,439
550 Ultramar Dia. 1.2% 13,519 12,478
Shamrock
3.5% 37,084 36,917
Finance
670 Bear Stearns 2.7% 28,588 28,642
2,190 Elder Trust 1.2% 17,568 13,277
790 T Rowe Price 2.7% 28,905 29,181
6.7% 75,061 71,100
Utilities
1,240 CTC Communications 4.5% 24,666 48,379
1,470 Global Crossing Ltd. 6.9% 46,904 73,500
720 MCI Worldcom, Inc. 3.6% 40,250 38,205
15.0% 111,820 160,084
Transportation
300 Tidewater 1.0% 10,263 10,800
410 Trinity 1.1% 12,882 11,659
2.1% 23,145 22,459
TOTAL COMMON STOCK 93.8% 882,427 1,002,558
INDEXED SECURITIES
420 Mid Cap SPDR Trust 3.2% 33,633 34,072
220 S&P 500 Dep. Receipt 3.0% 31,574 32,313
TOTAL INDEXED SECURITIES 6.2% 65,209 66,385
TOTAL INVESTMENTS IN SECURITIES 100% 947,634 $1,068,943
The accompanying notes are an integral part of the Financial
statements.
MANOR INVESTMENT FUNDS, INC.
STATEMENT OF OPERATIONS
GROWTH FUND
Six Months Ended December 31, 1999
Investment Income
Dividends $1,560
Interest 1,872
Accrued Income change 112
Total investment income $ 3,545
Expenses
Advisory and management fee 1,721
(Note 6)
Custodian fee (Note 7) 1,352
Other 446
Total expenses 3,519
Net Investment Income 26
Realized and Unrealized Gain on Investments (Note 5)
Net realized (loss) on investments (3,668)
Change in unrealized appreciation
Of investments for the period 121,309
Net gain on investments 117,667
Net Increase in Net Assets Resulting from $117,667
Operations
The accompanying notes are an integral part of the financial statements.
MANOR INVESTMENT FUNDS, INC.
GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended December 31, 1999
1999
Increase in Net Assets from Operations
Investment income-net $26
Net realized (loss) on (3668)
investments
Change in unrealized 121,309
appreciation
Net increase in net assets resulting 117,667
from operations
Capital Share Transactions 1,019,785
(Note 4)
Total Increase 1,137,452
Net Assets
June 30, 1999 -
December 31, 1999 1,137,452
The accompanying notes are an integral part of the financial
statements.
MANOR INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS
GROWTH FUND
Six Months Ended December 31, 1999
PER SHARE DATA (1) 1999
Investment income $ 0.08
Expenses 0.08
Investment income-net -
Net realized and unrealized 1.72
gain (loss) on investments
Net increase in net asset 1.72
value
Net asset value
Beginning of period 10.00
End of period $11.72
(1) Selected data based on weighted average shares
outstanding.
TOTAL INVESTMENT RETURN 17.20%
RATIOS (2) (to Average Net Assets)
Investment income-net 0.01%
Expenses 1.49%
PORTFOLIO TURNOVER RATE (2) 4.04%
(2) Annualized
The accompanying notes are an integral part of the financial
statements
MANOR INVESTMENT FUNDS, INC.
GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
Note 1-Organization
Manor Investment Funds, Inc. (the Company) was incorporated in
Pennsylvania on September 13, 1995. The Company was in the
initial stages of development until January 27, 1996 when it
began to sell shares of its stock for investment in the Manor
Fund, to the public. It is an open-end, non-diversified
management investment company that is registered under the
Investment Company Act of 1940. The Company consists of three
portfolios including Manor Growth Fund (the Growth Fund), Manor
Fund and Manor Bond Fund.
The Growth Fund began investment activity on July 1, 1999. Its
primary investment objective is long-term capital appreciation.
It invests primarily in common stock of U. S. corporations. The
Manor Fund seeks to provide conservative capital appreciation and
current income. The Manor Bond Fund seeks to provide
intermediate-term fixed income.
Note 2-Significant Accounting Policies
These financial statements reflect only the financial position,
results of operations, changes in its net assets and financial
highlights including selected per share data, total investment
return, ratios and turnover of Manor Growth Fund. The financial
statements of the other two funds are presented separately.
The following significant accounting policies are in conformity
with generally accepted accounting principles for investment
companies:
Security Valuation and Accounting-Investments in securities
traded on a national securities exchange (or reported on the
NASDAQ national market) are stated at the last reported sales
price on the day of valuation.
The Growth Fund follows industry practice and records security
transactions on the trade date.
Cash-Cash consists of checking and money market accounts with the
custodian. As financial instruments, such accounts potentially
subject the Growth Fund to concentration of credit risk. The
carrying value of these accounts approximates market value due to
their short-term nature.
Federal Income Taxes-The Growth Fund intends to continue to
qualify as a regulated investment company and distribute all of
its taxable income. Accordingly, no provision for federal income
taxes is required in the financial statements.
MANOR INVESTMENT FUNDS, INC.
GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1999
Distributions-When applicable, distributions to shareholders,
which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
Accounting Estimates-The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
Other- Dividend income is recognized on the ex-dividend date, and
interest income is recognized on the accrual basis.
As a mutual fund, the Growth Fund's portfolio of investments is
subject to stock market risk and inflation risk.
MANOR INVESTMENT FUNDS, INC.
GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1999
Note 3-Distributions to Shareholders
Net investment income was $26 for the six months of 1999, so
there were no distributions declared.
Note 4-Capital Share Transactions
At December 31, 1999, there were 10,000,000 shares of $.001 par
value capital stock authorized for Manor Investment Funds, Inc.
Paid-in capital of Manor Growth Fund totaled $1,019,785.
Daniel A. Morris (see note 6), President of the Manor Investment
Funds, Inc., and his wife own 9,600 shares of the Growth Fund's
outstanding stock with a value of $112,512. Directors own 9,070
shares of Growth Fund stock with a value of $106,300.
In 1999, 98,159 of Growth Fund shares were sold for $1,030,745;
1,136 shares were redeemed for $10,960.
Note 5-Investment Transactions
Purchases of investment securities aggregated $960,835 in 1999;
sales aggregated $13,201. Net gain on investments for the six
months ended December 31, 1999 was $117,641, after realizing
capital losses aggregating $3,668. For tax purposes, such capital
losses will be carried forward to offset future realized capital
gains. If not used in eight years, these capital losses will
expire in 2007.
At December 31, 1999, net unrealized appreciation of investment
securities for financial reporting and federal income tax
reporting was $121,309, consisting of unrealized gains of
$151,106 on securities that had risen in value since their
purchase, and $29,797 in unrealized losses on securities that had
fallen in value since their purchase.
Note 6-Investment Advisory Fee
The Growth Fund has an investment management and advisory
services agreement (the Agreement) with Morris Capital Advisors,
Inc. (Morris). Morris' sole shareholder, officer and director is
Daniel A. Morris.
Monthly, the Growth Fund is required to pay Morris a fee
(aggregating $1,721 in 1999) equivalent to one percent per annum
of the daily average net assets of the Growth Fund. The Growth
Fund bears expenses necessary and incidental to the conduct of
its business.
MANOR INVESTMENT FUNDS, INC.
GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1999
The Agreement must be approved annually by a majority vote of the
Company's non-interested Board of Directors.
Note 7-Custody Agreement
Under an agreement, The First National Bank of West Chester (FNB)
acts as the Growth Fund's custodian. FNB's fees are charged in
accordance with its standard rates for such services, payable
monthly. Such fees were $1,352 for the six months ended December
31, 1999.
MANOR INVESTMENT FUNDS, INC.
MALVERN, PENNSYLVANIA
BOND FUND
Financial Statements
For the Six Months Ended
December 31, 1999
and
Independent Auditor's Report
Independent Auditor's Report
To the Shareholders and
Board of Directors
Manor Investment Funds, Inc.
I have audited the accompanying statement of assets and
liabilities of Manor Bond Fund (the Bond Fund), including the
schedule of investments, as of December 31, 1999, and the related
statement of operations and changes in net assets, and the
financial highlights for the six months then ended. These
financial statements and financial highlights (hereafter referred
to collectively as _financial statements_) are the responsibility
of the Bond Fund's management. My responsibility is to express an
opinion on these financial statements based on my audits.
I conducted my audits in accordance with generally accepted
auditing standards. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. My
procedures included confirmation of securities owned as of
December 31, 1999, by correspondence with the custodian and
broker. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
I believe that my audits provide a reasonable basis for my
opinion.
In my opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Manor
Bond Fund as of December 31, 1999, the results of its operations
and the changes in its net assets, and the financial highlights
for the six months then ended, in conformity with generally
accepted accounting principles.
Claude B. Granese, CPA
Spring House, Pennsylvania
January 19, 2000
MANOR INVESTMENT FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
BOND FUND
Six Months Ended December 31, 1999
ASSETS
Investments in securities,at fair value
(identified cost $287,076) $ 283,552
(Notes 2 and 5)
Cash 140,763
Interest Receivable 3,588
Total Assets 427,903
LIABILITIES
Accrued Expenses 484
Total Liabilities 484
NET ASSETS
Net assets (equivalent to $9.90 per share
Based on 43,176 shares of capital stock
Outstanding) (Note 4) 427,419
The accompanying notes are an integral part of the
financial statements.
MANOR INVESTMENT FUNDS, INC.
BOND FUND
SCHEDULE OF INVESTMENTS
Six Months Ended December 31, 1999
% of Face Market
US GOVERNMENT OBLIGATIONS Market Value Amount Cost Value
US Treasury Notes
30,000 5.25% Due 5/31/2001 10.4% $ 30,000 29,910 29,616
100,000 5.50% Due 7/31/2001 34.9% 100,000 99,719 98,938
30,000 5.25% Due 5/15/2004 10.1% 30,000 29,568 28,716
100,000 5.875%Due 11/15/2005 34.2% 100,000 99,234 97,062
Total US Treasury Notes 89.7% 260,000 258,431 254,332
US Treasury Bill
30,000 4.83% Due 6/22/2000 10.3% 30,000 28,645 29,220
6/22/2000
TOTAL US GOVERNMENT OBLIGATIONS 100.0% 290,000 287,076 283,552
TOTAL INVESTMENTS IN SECURITIES 100.0% 290,000 287,076 283,552
MANOR INVESTMENT FUNDS, INC.
STATEMENT OF OPERATIONS
BOND FUND
Six Months Ended December 31, 1999
Investment Income
Interest 5,945
Total investment income $ 5,945
Expenses
Advisory and management fee
(Note 6) 496
Custodian fee (Note 7) 316
Other 485
Net Investment Income 1,297
Unrealized Loss on
Investments (Note 5)
Change in unrealized (depreciation)
of investments for the period (3,524)
Net (loss) on investments (3,524)
Net Increase in Net Assets
Resulting from Operations $ 1,124
The accompanying notes are an integral part of the
financial statements.
MANOR INVESTMENT FUNDS, INC.
BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Ended December 31, 1999
1999
Increase (Decrease)in Net Assets
From Operations
Investment income-net $ 4,648
Change in unrealized (depreciation) (3,524)
Net increase in net assets
Resulting from operations $ 1,124
Distributions to Shareholders from
Investment income-net (4,407)
Capital Share Transactions 430,702
(Note 4)
Total Increase 427,419
Net Assets
June 30, 1999 -
December 31, 1999 $ 427,419
The accompanying notes are an integral part of the financial
statements.
MANOR INVESTMENT FUNDS, INC.
FINANCIAL HIGHLIGHTS
BOND FUND
Six Months Ended December 31, 1999
PER SHARE DATA (1) 1999
Investment income $ 0.23
Expenses 0.05
Investment income-net 0.18
Distribution of net (0.17)
investment income
Net unrealized (loss) on (0.11)
investments
Net decrease in net asset (0.10)
value
Net asset value
Beginning of period 10.00
End of period $9.90
(1) Selected data based on weighted average shares
outstanding.
TOTAL INVESTMENT RETURN 0.70%
RATIOS (2) (to Average Net Assets)
Investment income-net 3.58%
Expenses 1.00%
PORTFOLIO TURNOVER RATE (2) 0.00%
(2) Annualized
The accompanying notes are an integral part of the financial statements
MANOR INVESTMENT FUNDS, INC.
BOND FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
Note 1-Organization
Manor Investment Funds, Inc. (the Company) was incorporated in
Pennsylvania on September 13, 1995. The Company was in the
initial stages of development until January 27, 1996 when it
began to sell shares of its stock for investment in the Manor
Fund, to the public. It is an open-end, non-diversified
management investment company that is registered under the
Investment Company Act of 1940. The Company consists of three
portfolios including Manor Bond Fund (the Bond Fund), Manor
Growth Fund and Manor Fund.
The Bond Fund began investment activity on July 1, 1999. Its
primary investment objective is intermediate-term fixed income.
It invests primarily in U. S. Government obligations. The Manor
Growth Fund seeks to provide long-term capital appreciation. The
Manor Fund seeks to provide conservative capital appreciation and
current income.
Note 2-Significant Accounting Policies
These financial statements reflect only the financial position,
results of operations, changes in its net assets and financial
highlights including selected per share data, total investment
return, ratios and turnover of Manor Bond Fund. The financial
statements of the other two funds are presented separately.
The following significant accounting policies are in conformity
with generally accepted accounting principles for investment
companies:
Security Valuation and Accounting-Investments in securities
traded on a national securities exchange (or reported on the
NASDAQ national market) are stated at the last reported sales
price on the day of valuation.
The Bond Fund follows industry practice and records security
transactions on the trade date.
Cash-Cash consists of checking and money market accounts with the
custodian. As financial instruments, such accounts potentially
subject the Bond Fund to concentration of credit risk. The
carrying value of these accounts approximates market value due to
their short-term nature.
Federal Income Taxes-The Bond Fund intends to continue to qualify
as a regulated investment company and distribute substantially
all of its taxable income. Accordingly, no provision for federal
income taxes is required in the financial statements.
MANOR INVESTMENT FUNDS, INC.
BOND FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1999
Distributions-Distributions to shareholders, which are determined
in accordance with income tax regulations, are recorded on the
ex-dividend date.
Accounting Estimates-The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
Other- Interest income is recognized on the accrual basis.
Premiums and discounts on bonds are amortized and accreted,
respectively, to interest income over the lives of the respective
bond.
As a mutual fund, the Bond Fund's portfolio of investments is
subject to bond market risk and inflation risk.
Note 3-Distributions to Shareholders
On December 27, 1999, a distribution of $.123 per share,
aggregating $4,407, was declared from net investment income. The
dividend was paid on December 27, 1999 to shareholders of record
on December 24, 1999.
Note 4-Capital Share Transactions
At December 31, 1999, there were 10,000,000 shares of $.001 par
value capital stock authorized for Manor Investment Funds, Inc.
Paid-in capital of Manor Bond Fund totaled $430,702.
Daniel A. Morris (see note 6), President of the Manor Investment
Funds, Inc., and his wife own 4,542 shares of the Bond Fund's
outstanding stock with a value of $44,966. Directors own 1,027
shares of Bond Fund stock with a value of $10,167.
In 1999, 45,768 of Bond Fund shares were sold for $456,567; 445
shares were sold through reinvested dividends of $4,407; 3,037
shares were redeemed for $30,272.
Note 5-Investment Transactions
Purchases of investment securities aggregated $287,076 in 1999;
there were no sales. Net loss on investments for the six months
ended December 31, 1999 was $3,524, consisting entirely of
unrealized losses on U.S. Government obligations that had fallen
in value since their purchase.
MANOR INVESTMENT FUNDS, INC.
BOND FUND
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1999
Note 6-Investment Advisory Fee
The Bond Fund has an investment management and advisory services
agreement (the Agreement) with Morris Capital Advisors, Inc.
(Morris). Morris' sole shareholder, officer and director is
Daniel A. Morris.
Monthly, the Bond Fund is required to pay Morris a fee
(aggregating $496 in 1999) equivalent to one-half percent per
annum of the daily average net assets of the Bond Fund. The Bond
Fund bears expenses necessary and incidental to the conduct of
its business.
The Agreement must be approved annually by a majority vote of the
Company's non-interested Board of Directors.
Note 7-Custody Agreement
Under an agreement, The First National Bank of West Chester (FNB)
acts as the Bond Fund's custodian. FNB's fees are charged in
accordance with its standard rates for such services, payable
monthly. Such fees were $316 for the six months ended December
31, 1999
CONSENT OF CERTIFIED PUBLIC ACCOUNTANT
I consent to the inclusion of my reports, dated January 19, 2000,
on my audits of the financial statements of each of the three
funds (Manor Fund, Manor Growth Fund and Manor Bond Fund) of
Manor Investment Funds, Inc. (the Company), in the registration
statement Form N-1A, Amendment Number 5 of the Company. I also
consent to the reference of my firm in such registration
statement.
Claude B. Granese, CPA
Spring House, Pennsylvania
January 19, 2000
To the Shareholders and
Board of Directors
Manor Investment Funds, Inc.
In planning and performing my audits of the financial statements
and financial highlights (hereafter referred to collectively as
the "financial statements") of each of the three funds (Manor
Fund, Manor Growth Fund and Manor Bond Fund) of Manor Investment
Funds, Inc. (the Company), for the year ended December 31, 1999,
I considered its internal control, including control activities
for safeguarding securities. I did so to determine my auditing
procedures for the purpose of expressing my opinion on the
financial statements, and to comply with the requirements of Form
N-SAR, not to provide assurance on internal control.
The management of the Company is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external purposes
that are fairly presented in conformity with generally accepted
accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, error or
fraud may occur and not be detected. Also, projection of any
evaluation of internal control to future periods is subject to
the risk that it may become inadequate because of changes in
conditions or that the effectiveness of the design and operation
may deteriorate.
My consideration of internal control would not necessarily
disclose all matters in internal control that might be material
weaknesses, under standards established by the American Institute
of Certified Public Accountants. A material weakness is a
condition in which the design or operation of the specific
internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud in
amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing
their assigned functions. However, I noted no matters involving
internal control and its operation, including controls for
safeguarding securities, that I consider to be a material
weakness as defined above as of December 31, 1999.
This report is intended solely for the information and use of
management and the Board of Directors of the Company and the
Securities and Exchange Commission.
Claude B. Granese, CPA
Spring House, Pennsylvania
January 19, 2000
FORM N-1A
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
a. Financial Statements - Financial highlights are
included in Part A and all other financial statements
are presented in Part B.
Manor Investment Funds, Inc.
Statement of Net Assets as of December 31, 1999
Statement of Operations for the Year Ended December 31,1999
Statement of Changes in Net Assets for the Years Ended
December 31, 1997, 1998 and 1999
Financial Highlights for the Years Ended December 31, 1995,
1996, 1997, 1998 and 1999
Notes to Financial Statements
b. Exhibits
(a) Registrant's Articles of Incorporation , Exhibit
1 to Registrant's Registration Statement of Form N-1A
is incorporated by reference pursuant to Rule 411
under the Securities Act of 1933.
(b) Registrant's By-Laws; Exhibit 2 to Registrant's
Registration Statement of Form N-1A is incorporated
by reference pursuant to Rule 411 under the
Securities Act of 1933.
(c) Voting Trust Agreement (None)
(d) Stock Certificate; Exhibit 4 to Registrant's
Registration Statement of Form N-1A is incorporated
by reference pursuant to Rule 411 under the
Securities Act of 1933.
(e) Investment Advisory Contract; Exhibit 5 to
Registrant's Registration Statement of Form N-1A is
incorporated by reference pursuant to Rule 411 under
the Securities Act of 1933.
(f) Underwriting Agreements (None)
(g) Reimbursement Agreements with Officers and/or
Directors; Exhibit 7 to Registrant's Registration
Statement of Form N-1A is incorporated by reference
pursuant to Rule 411 under the Securities Act of
1933.
(h) Custodian Agreement; with First National Bank of
West Chester; Exhibit 8 to Registrant's Registration
Statement of Form N-1A is incorporated by reference
pursuant to Rule 411 under the Securities Act of
1933.
(i) Other Contracts (None)
(j) Opinion of Counsel Concerning Fund Securities;
Exhibit 10 to Registrant's Registration Statement of
Form N-1A is incorporated by reference pursuant to
Rule 411 under the Securities Act of 1933.
(k) Consent of Claude B. Granese, CPA
(l) Other Financial Statements (None)
(13) Powers of Attorney (None)
(14) Initial Capital Arrangement Agreements (None)
(15) Code of Ethics; Exhibit 15 to Registrant's
Registration Statement of Form N-1A is incorporated
by reference pursuant to Rule 411 under the
Securities Act of 1933.
2. Control Persons
Mr. Daniel A. Morris is the sole owner, director and
officer of the Investment Adviser and is also
president of the Fund. As of December 31, 1999 Mr.
Morris and his wife Anne own 8.7% of the
outstanding shares of the Fund.
3. Number of Shareholders
There were 144 shareholders of the Manor Investment
Funds; Manor Fund as of December 31, 1999. There were 53
shareholders of the Growth Fund as of December 31, 1999.
There were 26 shareholders of the Bond Fund as of December 31, 1999.
4. Indemnification
The registrant has been advised that, in the opinion of
the Securities and Exchange Commission,
indemnification for liability arising under the
Securities Act of 1933 for directors, officers and
controlling persons of the registrant is against
public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a
claim for indemnification against such liabilities
(other than the payment by the registrant of
expenses paid by a director, officer or controlling
person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by
such director, officer or controlling person in
connection with the securities being registered,
the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling
precedent, submit to a court of appropriate
jurisdiction the question whether such
indemnification by it is against public policy as
expressed in the Act and will be governed by the
final adjudication of such issue.
5. Activities of Investment Adviser
The activity of Morris Capital Advisors, Inc., at the
present time is performance of the Investment
Advisory Contract with the Manor Investment Funds
and for individual and corporate clients on an
individual account basis.
6. Principal Underwriter
The Fund acts as its own underwriter.
7. Location of Accounts & Records
All Fund records are held in corporate headquarters, 15
Chester Commons, Malvern, PA 19355.
8. Management Services
Not Applicable.
9. Distribution Expenses
The Fund currently bears no distribution expenses.
10. Undertakings
None.
CONSENT OF CERTIFIED PUBLIC ACCOUNTANT
I consent to the inclusion of my report, dated January 15,
1999 on my audit of the financial statements of Manor
Investment Funds, Inc. (the Fund), in the registration
statement Form N-1A, Amendment Number 7 of the Fund. I also
consent to the reference of my firm in such registration
statement.
Claude B. Granese, CPA
Spring House, Pennsylvania
January 15, 1999
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933
and the Investment Company Act of 1940, Manor Investment
Funds, Inc. certifies that it meets all of the requirements
for effectiveness of this Registration Statement and has
duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in
Malvern, Pennsylvania, on the 31st day March.
Manor Investment Funds, Inc.
By: _________________________________
Daniel A. Morris, President
Pursuant to the requirements of the Securities Act of 1933,
this Registration Statement has been signed below by the
following persons in the capacities and on the dates indicated.
Signature Title Date
__________________________ President, Chief 4/30/99
Daniel A. Morris Executive Officer
and Director
__________________________ Secretary 4/30/99
Bruce Laverty
__________________________ Director 4/30/99
James McFadden
__________________________ Director 4/30/99
Edward Erlichman
__________________________ Director 4/30/99
Richard A. Kund, Jr.
__________________________ Director 4/30/99
Fred Myers
__________________________ Director 4/30/99
Alan Weintraub
EXHIBIT INDEX
(1) Registrant's Articles of Incorporation *
(2) Registrant's By-Laws *
(3) Voting Trust Agreement (None)
(4) Stock Certificate *
(5) Investment Advisory Contract *
(6) Underwriting Agreements (None)
(7) Reimbursement Agreements with Officers and/or Directors *
(8) Custodian Agreement *
(9) Other Contracts (None)
(10) Opinion of Counsel Concerning Fund Securities *
(11) Consent of Claude B. Granese, CPA
(12) Other Financial Statements (None)
(13) Powers of Attorney (None)
(14) Initial Capital Arrangement Agreements (None)
(15) Code of Ethics *
* Incorporated by reference.
CONSENT OF CERTIFIED PUBLIC ACCOUNTANT
I consent to the inclusion of my report, dated January 15,
1999 on my audit of the financial statements of Manor
Investment Funds, Inc. (the Fund), in the registration
statement Form N-1A, Amendment Number 7 of the Fund. I also
consent to the reference of my firm in such registration
statement.
Claude B. Granese, CPA
Spring House, Pennsylvania
January 15, 1999
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933
and the Investment Company Act of 1940, Manor Investment
Funds, Inc. certifies that it meets all of the requirements
for effectiveness of this Registration Statement and has
duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in
Malvern, Pennsylvania, on the 31st day March.
Manor Investment Funds, Inc.
By: _________________________________
Daniel A. Morris, President
Pursuant to the requirements of the Securities Act of 1933,
this Registration Statement has been signed below by the
following persons in the capacities and on the dates indicated.
Signature Title Date
__________________________ President, Chief 4/30/99
Daniel A. Morris Executive Officer
and Director
__________________________ Secretary 4/30/99
Bruce Laverty
__________________________ Director 4/30/99
James McFadden
__________________________ Director 4/30/99
Edward Erlichman
__________________________ Director 4/30/99
Richard A. Kund, Jr.
__________________________ Director 4/30/99
Fred Myers
__________________________ Director 4/30/99
Alan Weintraub
EXHIBIT INDEX
(1) Registrant's Articles of Incorporation *
(2) Registrant's By-Laws *
(3) Voting Trust Agreement (None)
(4) Stock Certificate *
(5) Investment Advisory Contract *
(6) Underwriting Agreements (None)
(7) Reimbursement Agreements with Officers and/or Directors *
(8) Custodian Agreement *
(9) Other Contracts (None)
(10) Opinion of Counsel Concerning Fund Securities *
(11) Consent of Claude B. Granese, CPA
(12) Other Financial Statements (None)
(13) Powers of Attorney (None)
(14) Initial Capital Arrangement Agreements (None)
(15) Code of Ethics *
* Incorporated by reference.
