Manor Investment Funds N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-09134

Manor Investment Funds, Inc.
(Exact name of registrant as specified in charter)

15 Chester Commons, Malvern, PA 19355
(Address of principal executive offices)

Daniel A. Morris
15 Chester Commons, Malvern, PA 19355
(Name and address of agent for service)

Registrant s telephone number, including area code:  610-722-0900

Date of fiscal year end: December 31

Date of reporting period: June 30, 2012

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270-30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ( OMB ) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection if information under the clearance requirement of 44 U.S.C. 3507.

Item 1. Reports to Stockholders.

Semi-Annual Report
June 30, 2012

(Unaudited)

Fund Office:
15 Chester Commons
Malvern, PA 19355
610-722-0900     800-787-3334
www.manorfunds.com

Managed by:
Morris Capital Advisors, Inc.

MANOR FUND

GRAPHICAL ILLUSTRATION (UNAUDITED)

JUNE 30, 2012

The following chart gives a visual breakdown of the Fund by the industry sectors the underlying securities represent as a percentage of the portfolio of investments.

GROWTH FUND

GRAPHICAL ILLUSTRATION (UNAUDITED)

JUNE 30, 2012

The following chart gives a visual breakdown of the Fund by the industry sectors the underlying securities represent as a percentage of the portfolio of investments.

BOND FUND

GRAPHICAL ILLUSTRATION (UNAUDITED)

JUNE 30, 2012  

The following chart gives a visual breakdown of the Fund by the industry sectors the underlying securities represent as a percentage of the portfolio of investments.

	Manor  Fund
	Schedule of Investments
	June 30, 2012 (Unaudited)
Shares		Value
COMMON STOCKS - 96.06%
Beverages - 3.82%
2,260	Pepsico, Inc.	$          159,692
Computer & Office Equipment - 4.67%
999	International Business Machines Corp.	195,384
Construction, Mining & Materials Handling Machinery & Equipment - 2.06%
1,604	Dover Corp.	85,990
Crude Petroleum & Natural Gas - 2.92%
1,425	Occidental Petroleum Corp.	122,222
Drilling Oil & Gas Wells - 3.33%
1,100	Diamond Offshore Drilling, Inc.	65,043
2,178	Nabors Industries Ltd. *	31,363
3,378	Weatherford International Ltd. *	42,664
		139,070
Electric & Other Services Combined - 1.55%
1,717	Exelon Corp.	64,594
Electrical Work - 3.40%
5,897	Quanta Services, Inc. *	141,941
Electronic Connectors - 4.51%
3,431	Amphenol Corp. Class A	188,431
Fire, Marine & Casualty Insurance - 3.82%
2,196	Chubb Corp.	159,913
Gold & Silver Ores - 2.62%
2,260	Newmont Mining Corp.	109,633
Hospital & Medical Service Plans - 2.04%
1,334	Wellpoint, Inc.	85,096
Instruments for Measuring & Testing of Electricity - 2.54%
2,705	Agilent Technologies, Inc.	106,144
Investment Advice - 2.36%
890	Franklin Resources, Inc.	98,781
Life Insurance - 2.89%
3,921	Metlife, Inc.	120,963
Miscellaneous Industrial & Commercial Machinery & Equipment - 2.37%
2,505	Eaton Corp.	99,273
National Commercial Banks - 2.47%
2,886	JP Morgan Chase & Co.	103,117
Oil & Gas Field Machinery & Equipment - 2.48%
1,607	National Oilwell Varco, Inc.	103,555
Perfumes, Cosmetics & Other Toilet Preparations - 4.75%
1,906	Colgate Palmolive Co.	198,415
Pharmaceutical Preparations - 6.09%
3,812	Endo Pharmaceuticals Holdings, Inc. *	118,096
1,843	Watson Pharmaceuticals, Inc. *	136,364
		254,460
Public Building & Related Furniture - 3.16%
3,022	Be Aerospace, Inc. *	131,940
Railroads, Line-Haul Operating - 4.05%
2,360	Norfolk Southern Corp.	169,377
Retail-Variety Stores - 4.10%
2,460	Wal-Mart Stores, Inc.	171,511
Rubber & Plastics Footwear - 4.34%
2,069	Nike, Inc. Class B	181,617
Semiconductors & Related Devices - 3.59%
6,365	Applied Materials, Inc.	72,847
2,904	Intel Corp.	77,392
		150,239
Services-Miscellaneous Amusement & Recreation - 4.25%
3,667	Walt Disney Co. *	177,849
Services-Prepackaged Software - 3.37%
4,610	Microsoft Corp.	141,020
Steel Works, Blast Furnace Rolling Mills - 1.24%
1,367	Nucor Corp.	51,809
Telephone Communications - 3.03%
3,558	AT&T, Inc.	126,878
Wholesale - Drugs, Proprietaries & Druggists' Sundries - 4.24%
4,510	AmerisourceBergen Corp.	177,468
TOTAL FOR COMMON STOCKS (Cost $3,185,544) - 96.06%		4,016,382
SHORT TERM INVESTMENTS - 3.94%
164,659	First American Government Obligation Fund Class Y 0.02% ** (Cost $164,659)	164,659
TOTAL INVESTMENTS (Cost $3,350,203) - 100.00%		4,181,041
ASSETS IN EXCESS OF OTHER LIABILITIES   - 0.00%		206
NET ASSETS - 100.00%		$       4,181,247
* Non-income producing securities during the period.
** Variable rate security; the coupon rate shown represents the yield at June 30, 2012.
The accompanying notes are an integral part of these financial statements.
Various inputs are used in determining the value of the Fund's investments.  These inputs are summarized in the three broad levels listed below:
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
These inputs may include quoted prices for the identical instrument on an active market, price for similar instruments, interest rates,
prepayment speeds, yield curves, default rates and similar data.
Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund's own
assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best
information available.
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of inputs used as of June 30, 2012 in valuing the Fund’s investments carried at value:
	Investments in Securities	Level 1	Level 2	Level 3	Total
	Common Stocks	$     4,016,382	-	-	$ 4,016,382
	Short-Term Investments:
	First American Government Obligation Fund Class Y	164,659	-	-	164,659
		$     4,181,041	-	-	$ 4,181,041
The Fund did not hold any Level 3 assets during the six months ended June 30, 2012. The Fund did not hold any derivative instruments at any time during the six months ended June 30, 2012. There were no significant transfers into or out of Level 1 or Level 2 during the period. It is the Fund’s policy to recognize transfers into and out of Level 1 and Level 2 at the end of the reporting period.
The accompanying notes are an integral part of these financial statements.

	Growth Fund
	Schedule of Investments
	June 30, 2012 (Unaudited)
Shares		Value
COMMON STOCKS - 97.20%
Beverages - 2.63%
4,371	Constellation Brands, Inc. Class A *	$          118,279
Biological Products (No Diagnostic Substances) - 2.03%
1,775	Gilead Sciences, Inc. *	91,022
Calculating & Accounting Machines (No Electronic Computers) - 2.37%
3,210	Verifone Systems, Inc. *	106,219
Communications Services - 4.09%
3,764	Directv Group, Inc. Class A *	183,758
Crude Petroleum & Natural Gas - 1.61%
2,269	Southwestern Energy Co. *	72,449
Electronic Computers - 6.18%
475	Apple, Inc. *	277,400
Engines & Turbines - 4.59%
2,127	Cummins, Inc.	206,128
Fire, Marine & Casualty Insurance - 3.76%
2,278	Ace Ltd.	168,868
Iron & Steel Foundries - 4.54%
1,239	Precision Castparts Corp.	203,803
Leather & Leather Products - 3.09%
2,369	Coach, Inc.	138,539
Measuring & Controlling Devices - 3.15%
2,725	Thermo Fisher Scientific, Inc.	141,455
Oil & Gas Field Services - 1.98%
1,369	Schlumberger Ltd.	88,862
Optical Instruments & Lenses - 2.62%
2,392	KLA Tencor Corp.	117,806
Orthopedic, Prosthetic & Surgical Appliances and Supplies - 3.98%
1,728	Edwards Lifescience Corp. *	178,502
Petroleum Refining - 2.08%
2,149	Hess Corp.	93,374
Pharmaceutical Preparations - 4.62%
2,003	Abbott Laboratories	129,133
1,220	Celgene Corp. *	78,275
		207,408
Retail-Drug Stores & Proprietary Stores - 3.85%
3,095	Express Scripts, Inc. Class C *	172,794
Retail-Furniture, Furnishings & Equipment Stores - 3.18%
2,312	Bed, Bath & Beyond, Inc. *	142,882
Retail-Variety Stores - 3.98%
3,320	Dollar Tree, Inc. *	178,616
Search, Detection, Navigation, Guidance, Aeronautical Systems - 1.98%
2,119	Harris Corp.	88,680
Semiconductors & Related Devices - 7.31%
3,370	Intel Corp.	89,811
3,749	Texas Instruments, Inc.	107,559
3,892	Xilinx, Inc.	130,654
		328,024
Services-Business Services - 4.87%
508	Mastercard, Inc.	218,496
Services-Computer Programming, Data Processing, Etc. - 3.01%
233	Google, Inc. Class A *	135,156
Services-Prepackaged Software - 6.05%
3,359	Microsoft Corp.	102,752
5,681	Oracle Corp.	168,726
		271,478
Soap, Detergents, Cleaning Preparations, Perfumes, Cosmetics - 6.60%
3,152	Church & Dwight Co., Inc.	174,841
1,984	Procter & Gamble Co.	121,520
		296,361
Wholesale-Motor Vehicles & Motor Vehicle Parts & Supplies - 3.05%
4,100	LKQ Corp.*	136,797
TOTAL FOR COMMON STOCKS (Cost $3,272,203) - 97.20%		4,363,156
SHORT TERM INVESTMENTS - 2.85%
127,783	First American Government Obligation Fund Class Y 0.02% ** (Cost $127,783)	127,783
TOTAL INVESTMENTS (Cost $3,399,986) - 100.05%		4,490,939
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.05)%		(2,251)
NET ASSETS - 100.00%		$       4,488,688
* Non-income producing securities during the period.
** Variable rate security; the coupon rate shown represents the yield at June 30, 2012.
The accompanying notes are an integral part of these financial statements.
Various inputs are used in determining the value of the Fund's investments.  These inputs are summarized in the three broad levels listed below:
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
These inputs may include quoted prices for the identical instrument on an active market, price for similar instruments, interest rates,
prepayment speeds, yield curves, default rates and similar data.
Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund's own
assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best
information available.
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of inputs used as of June 30, 2012, in valuing the Fund’s investments carried at value:
	Investments in Securities	Level 1	Level 2	Level 3	Total
	Common Stocks	$     4,363,156	-	-	$ 4,363,156
	Short-Term Investments:
	First American Government Obligation Fund Class Y	127,783	-	-	127,783
		$     4,490,939	-	-	$ 4,490,939
The Fund did not hold any Level 3 assets during the six months ended June 30, 2012. The Fund did not hold any derivative instruments at any time during the six months ended June 30, 2012. There were no significant transfers into or out of Level 1 or Level 2 during the period. It is the Fund’s policy to recognize transfers into and out of Level 1 and Level 2 at the end of the reporting period.
The accompanying notes are an integral part of these financial statements.

	Bond Fund
	Schedule of Investments
	June 30, 2012 (Unaudited)
Face Amount		Value
US TREASURY NOTES - 97.30%
250,000	US Treasury Note 0.50% Due 11/15/2013	$      250,732
225,000	US Treasury Note 0.50% Due 11/30/2012	225,307
375,000	US Treasury Note 1.00% Due 03/31/2017	380,391
350,000	US Treasury Note 1.25% Due 10/31/2015	358,805
250,000	US Treasury Note 1.375% Due 11/30/2018	255,937
200,000	US Treasury Note 3.875% Due 02/15/2013	204,563
TOTAL FOR US TREASURY NOTES (Cost $1,643,947) - 97.30%		1,675,735
SHORT TERM INVESTMENTS - 2.51%
43,172	First American Treasury Obligation Class Y 0.00% ** (Cost $43,172)	43,172
TOTAL INVESTMENTS (Cost $1,687,119) - 99.81%		1,718,907
OTHER ASSETS LESS LIABILITIES - 0.19%		3,330
NET ASSETS - 100.00%		$   1,722,237
** Variable rate security; the coupon rate shown represents the yield at June 30, 2012.
The accompanying notes are an integral part of these financial statements.
Various inputs are used in determining the value of the Fund's investments.  These inputs are summarized in the three broad levels listed below:
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
These inputs may include quoted prices for the identical instrument on an active market, price for similar instruments, interest rates,
prepayment speeds, yield curves, default rates and similar data.
Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund's own
assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best
information available.
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of inputs used as of June 30, 2012 in valuing the Fund’s investments carried at value:
	Investments in Securities	Level 1	Level 2	Level 3	Total
	US Treasury Notes	$     1,675,735	-	-	$    1,675,735
	Short-Term Investments:
	First American Treasury Obligation Class Y	43,172	-	-	43,172
		$     1,718,907	-	-	$    1,718,907
The Fund did not hold any Level 3 assets during the six months ended June 30, 2012. The Fund did not hold any derivative instruments at any time during the six months ended June 30, 2012. There were no significant transfers into or out of Level 1 or Level 2 during the period. It is the Fund’s policy to recognize transfers into and out of Level 1 and Level 2 at the end of the reporting period.
The accompanying notes are an integral part of these financial statements.

Manor Investment Funds
Statements of Assets and Liabilities
June 30, 2012 (Unaudited)
Assets:	Manor Fund	Growth Fund	Bond Fund
Investments in Securities, at Value
(Cost $3,350,203, $3,399,986, and $1,687,119, respectively)	$    4,181,041	$    4,490,939	$     1,718,907
Receivables:
Dividends and Interest	4,112	1,507	5,039
Due from Advisor	-	-	818
Prepaid Expenses	9,484	9,613	3,828
Total Assets	4,194,637	4,502,059	1,728,592
Liabilities:
Payables:
Due to Advisor	1,053	1,114	-
Accrued Expenses	12,337	12,257	6,355
Total Liabilities	13,390	13,371	6,355
Net Assets	$    4,181,247	$    4,488,688	$     1,722,237
Net Assets Consist of:
Capital Stock	$            235	$             357	$             162
Paid In Capital	3,398,937	3,745,270	1,686,275
Undistributed Net Investment Income (Loss)	7,203	(9,631)	6,505
Accumulated Realized Loss on Investments	(55,966)	(338,261)	(2,493)
Unrealized Appreciation in Value of Investments	830,838	1,090,953	31,788
Net Assets (10,000,000 shares authorized, $0.001 par value) for 234,524,
356,918, and 161,546 shares outstanding, respectively.	$    4,181,247	$    4,488,688	$     1,722,237
Net Asset Value and Offering Price Per Share	$         17.83	$          12.58	$           10.66
The accompanying notes are an integral part of these financial statements.

Manor Investment Funds
Statements of Operations
June 30, 2012 (Unaudited)
	Manor Fund	Growth Fund	Bond Fund
Investment Income:
Dividends	$            40,118	$             24,864	$                  -
Interest	6	3	14,984
Total Investment Income	40,124	24,867	14,984
Expenses:
Advisory Fees (Note 2)	21,947	22,998	4,378
Shareholder Service Fees (Note 5)	3,901	3,884	1,213
Transfer Agent and Fund Accounting Fees	4,586	4,586	4,586
Insurance Fees	1,336	1,404	607
Audit Fees	6,239	4,989	-
Registration Fees	3,851	4,299	1,761
Custody Fees	1,866	1,638	1,406
Legal Fees	3,351	3,351	1,525
Printing and Mailing Fees	728	956	182
Quotes and Fees	615	643	247
Miscellaneous Fees	1,078	1,199	294
Total Expenses	49,498	49,947	16,199
Fees Waived and Reimbursed by the Advisor (Note 2)	(16,577)	(15,449)	(7,443)
Net Expenses	32,921	34,498	8,756
Net Investment Income (Loss)	7,203	(9,631)	6,228
Realized and Unrealized Gain (Loss) on Investments:
Realized Gain (Loss) on Investments	190,616	(20,796)	(2,514)
Net Change in Unrealized Appreciation (Depreciation) on Investments	(43,710)	356,346	(171)
Net Realized and Unrealized Gain (Loss) on Investments	146,906	335,550	(2,685)
Net Increase in Net Assets Resulting from Operations	$           154,109	$            325,919	$              3,543
The accompanying notes are an integral part of these financial statements.

Manor Investment Funds
Manor Fund
Statements of Changes in Net Assets
	(Unaudited)
	Six Months
	Ended	Year Ended
	6/30/2012	12/31/2011
Increase (Decrease) in Net Assets From Operations:
Net Investment Income	$           7,203	$         15,335
Net Realized Gain on Investments	190,616	77,590
Net Change in Unrealized Depreciation on Investments	(43,710)	(58,446)
Net Increase in Net Assets Resulting from Operations	154,109	34,479
Distributions to Shareholders from:
Net Investment Income	-	(15,335)
Realized Gains	-	-
Total Distributions	-	(15,335)
Capital Share Transactions:
Proceeds from Sold Shares	154,232	413,058
Reinvestment of Distributions	-	15,063
Cost of Shares Redeemed	(309,662)	(495,178)
Net Decrease from Capital Shares Transactions	(155,430)	(67,057)
Total Decrease	(1,321)	(47,913)
Net Assets
Beginning of Period	4,182,568	4,230,481
End of Period (Including Accumulated Undistributed Net
Investment Income of $7,203 and $0, respectively)	$     4,181,247	$    4,182,568
Share Transactions:
Shares Sold	8,361	23,636
Shares Issued on Reinvestment of Distributions	-	873
Shares Redeemed	(17,368)	(28,215)
Net Decrease in Outstanding Shares of Fund	(9,007)	(3,706)
The accompanying notes are an integral part of these financial statements.

Manor Investment Funds
Growth Fund
Statements of Changes in Net Assets
	(Unaudited)
	Six Months
	Ended	Year Ended
Increase (Decrease) in Net Assets From Operations:	6/30/2012	12/31/2011
Net Investment Loss	$         (9,631)	$    (23,556)
Net Realized Gain (Loss) on Investments	(20,796)	127,466
Net Change in Unrealized Appreciation (Depreciation) on Investments	356,346	(167,110)
Net Increase (Decrease) in Net Assets Resulting from Operations	325,919	(63,200)
Distributions to Shareholders from:
Net Investment Income	-	-
Realized Gains	-	-
Total Distributions	-	-
Capital Share Transactions:
Proceeds from Sold Shares	159,032	408,482
Reinvestment of Distributions	-	-
Cost of Shares Redeemed	(248,161)	(652,458)
Net Decrease from Capital Shares Transactions	(89,129)	(243,976)
Total Increase (Decrease)	236,790	(307,176)
Net Assets
Beginning of Period	4,251,898	4,559,074
End of Period (Including Accumulated Undistributed Net Investment
Income (Loss) of $(9,631) and $0, respectively)	$      4,488,688	$   4,251,898
Share Transactions:
Shares Sold	12,111	33,611
Shares Issued on Reinvestment of Distributions	-	-
Shares Redeemed	(19,362)	(53,401)
Net Decrease in Outstanding Shares of Fund	(7,251)	(19,790)
The accompanying notes are an integral part of these financial statements.

Manor Investment Funds
Bond Fund
Statements of Changes in Net Assets
	(Unaudited)
	Six Months
	Ended	Year Ended
Increase (Decrease) in Net Assets From Operations:	6/30/2012	12/31/2011
Net Investment Income	$            6,228	$         4,037
Net Realized Gain (Loss) on Investments	(2,514)	16,263
Net Change in Unrealized Appreciation (Depreciation) on Investments	(171)	(6,578)
Net Increase in Net Assets Resulting from Operations	3,543	13,722
Distributions to Shareholders from:
Net Investment Income	-	(3,760)
Realized Gains	-	(16,242)
Total Distributions	-	(20,002)
Capital Share Transactions:
Proceeds from Sold Shares	6,514	529,231
Shares Issued on Reinvestment of Distributions	-	20,002
Cost of Shares Redeemed	(109,548)	(1,136,744)
Net Decrease from Capital Share Transactions	(103,034)	(587,511)
Total Decrease	(99,491)	(593,791)
Net Assets
Beginning of Period	1,821,728	2,415,519
End of Period (Including Accumulated Undistributed Net
Investment Income of $6,505 and $277, respectively)	$      1,722,237	$   1,821,728
Share Transactions:
Shares Sold	612	49,700
Shares Issued on Reinvestment of Distributions	-	1,882
Shares Redeemed	(10,316)	(106,714)
Net Decrease in Outstanding Shares of Fund	(9,704)	(55,132)
The accompanying notes are an integral part of these financial statements.

Manor Investment Funds
Manor Fund
Financial Highlights
Selected data for a share outstanding throughout the period.
	(Unaudited)
	Six Months
	Ended		Years Ended
	6/30/2012		12/31/2011	12/31/2010	12/31/2009	12/31/2008	12/31/2007
Net Asset Value, at Beginning of Period	$          17.18		$          17.11	$        15.14	$        12.01	$         17.58	$        17.54
Income From Investment Operations:
Net Investment Income *	0.03		0.06	0.04	0.10	0.04	0.05
Net Gain (Loss) on Securities (Realized and Unrealized)	0.62		0.07	1.97	3.12	(5.57)	0.72
Total from Investment Operations	0.65		0.13	2.01	3.22	(5.53)	0.77
Distributions:
Net Investment Income	-		(0.06)	(0.04)	(0.09)	(0.04)	(0.08)
Realized Gains	-		-	-	-	-	(0.65)
Total from Distributions	-		(0.06)	(0.04)	(0.09)	(0.04)	(0.73)
Net Asset Value, at End of Period	$          17.83		$          17.18	$        17.11	$        15.14	$         12.01	$        17.58
Total Return **	3.78%		0.78%	13.29%	26.83%	(31.42)%	4.24%
Ratios/Supplemental Data:
Net Assets at End of Period (Thousands)	$          4,181		$          4,183	$        4,230	$        3,800	$         2,970	$        4,376
Before Waivers
Ratio of Expenses to Average Net Assets	2.26%	***	1.92%	1.72%	1.86%	1.95%	1.58%
After Waivers
Ratio of Expenses to Average Net Assets	1.50%	***	1.50%	1.50%	1.50%	1.50%	1.50%
�� Ratio of Net Investment Income to Average Net Assets	0.33%	***	0.36%	0.27%	0.74%	0.26%	0.25%
Portfolio Turnover	6.65%		11.87%	3.20%	9.59%	15.68%	12.09%
* Per share net investment income has been determined on the basis of average shares outstanding during the period.
** Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.
*** Annualized
The accompanying notes are an integral part of these financial statements.

Manor Investment Funds
Growth Fund
Financial Highlights
Selected data for a share outstanding throughout the period.
	(Unaudited)
	Six Months
	Ended		Years Ended
	6/30/2012		12/31/2011	12/31/2010	12/31/2009	12/31/2008	12/31/2007
Net Asset Value, at Beginning of Period	$         11.68		$       11.87	$         9.96	$         7.16	$         12.16	$       11.78
Income From Investment Operations:
Net Investment Loss *	(0.03)		(0.06)	(0.06)	(0.03)	(0.07)	(0.09)
Net Gain (Loss) on Securities (Realized and Unrealized)	0.93		(0.13)	1.97	2.83	(4.93)	0.84
Total from Investment Operations	0.90		(0.19)	1.91	2.80	(5.00)	0.75
Distributions:
Net Investment Income	-		-	-	-	-	-
Realized Gains	-		-	-	-	-	(0.37)
Total from Distributions	-		-	-	-	-	(0.37)
Net Asset Value, at End of Period	$         12.58		$       11.68	$       11.87	$         9.96	$           7.16	$       12.16
Total Return **	7.71%		(1.60)%	19.18%	39.11%	(41.12)%	6.28%
Ratios/Supplemental Data:
Net Assets at End of Period (Thousands)	$         4,489		$       4,252	$       4,559	$       3,801	$         2,759	$       5,587
Before Waivers
Ratio of Expenses to Average Net Assets	2.18%	***	1.91%	1.76%	1.85%	1.82%	1.59%
After Waivers and Reimbursements
Ratio of Expenses to Average Net Assets	1.50%	***	1.50%	1.50%	1.50%	1.50%	1.50%
Ratio of Net Investment Loss to Average Net Assets	(0.42)%	***	(0.52)%	(0.58)%	(0.44)%	(0.68)%	(0.73)%
Portfolio Turnover	9.84%		10.01%	9.86%	19.01%	28.66%	25.76%
* Per share net investment loss has been determined on the basis of average shares outstanding during the period.
** Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.
*** Annualized
The accompanying notes are an integral part of these financial statements.

Manor Investment Funds
Bond Fund
Financial Highlights
Selected data for a share outstanding throughout the period.
	(Unaudited)
	Six Months
	Ended		Years Ended
	6/30/2012		12/31/2011	12/31/2010	12/31/2009	12/31/2008	12/31/2007
Net Asset Value, at Beginning of Period	$         10.64		$       10.67	$       10.65	$         10.89	$         10.54	$        10.17
Income From Investment Operations:
Net Investment Income *	0.04		0.02	0.06	0.14	0.23	0.27
Net Gain (Loss) on Securities (Realized and Unrealized)	(0.02)		0.07	0.03	(0.23)	0.32	0.38
Total from Investment Operations	0.02		0.09	0.09	(0.09)	0.55	0.65
Distributions:
Net Investment Income	-		(0.02)	(0.06)	(0.15)	(0.20)	(0.28)
Realized Gains	-		(0.10)	(0.01)	-	-	-
Total from Distributions	-		(0.12)	(0.07)	(0.15)	(0.20)	(0.28)
Net Asset Value, at End of Period	$         10.66		$       10.64	$       10.67	$         10.65	$         10.89	$        10.54
Total Return **	0.19%		0.83%	0.85%	(0.80)%	5.20%	6.50%
Ratios/Supplemental Data:
Net Assets at End of Period (Thousands)	$         1,722		$       1,822	$       2,416	$         2,035	$         2,295	$        1,884
Before Waivers
Ratio of Expenses to Average Net Assets	1.86%	***	1.74%	1.35%	1.46%	2.02%	1.03%
After Waivers and Reimbursements
Ratio of Expenses to Average Net Assets	1.00%	***	1.00%	1.00%	1.00%	1.00%	1.00%
Ratio of Net Investment Income (Loss) to Average Net Assets	0.71%	***	0.21%	0.53%	1.26%	2.08%	2.71%
Portfolio Turnover	21.97%		49.95%	41.12%	29.87%	13.55%	0.00%
* Per share net investment income (loss) has been determined on the basis of average shares outstanding during the period.
** Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends.
*** Annualized
The accompanying notes are an integral part of these financial statements.

MANOR INVESTMENT FUNDS

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2012 (UNAUDITED)

1.   ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Organization: Manor Investment Funds, Inc. (the “Company”) is a non-diversified regulated investment company and was incorporated in the Commonwealth of Pennsylvania on September 13, 1995. Effective,  January 1, 2012, the Manor Investment Funds, Inc. were reorganized as a Delaware Business Trust, as Manor Investment Funds (the “Trust”); comprising of Manor Fund, Growth Fund and Bond Fund (collectively “the Funds”).  Effective January 3, 2012 Manor Investment Funds, Inc. was dissolved by domestication in Pennsylvania. The primary investment objective of each of the Funds follows: Manor Fund - conservative capital appreciation and current income, investing primarily in common stocks of large corporations in the United States; Growth Fund - long-term capital appreciation, investing primarily in common stocks of U.S. corporations; Bond Fund - intermediate-term fixed income, investing primarily in U.S. Government obligations.

The following is a summary of the significant accounting policies followed by the Company in the preparation of its financial statements.  These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

Security Valuations: Equity securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Advisor believes such prices accurately reflect the fair market value of such securities. Securities that are traded on any stock exchange or on the NASDAQ over-the-counter market are generally valued by the pricing service at the last quoted sale price. Lacking a last sale price, an equity security is generally valued by the pricing service at its last bid price. When market quotations are not readily available, when the Advisor determines that the market quotation or the price provided by the pricing service does not accurately reflect the current market value, or when restricted or illiquid securities are being valued, such securities are valued as determined in good faith by the Board of Directors. The Board has adopted guidelines for good faith pricing, and has delegated to the Advisor the responsibility for determining fair value prices, subject to review by the Board of Directors.

Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Advisor believes such prices accurately reflect the fair market value of such securities. A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices. If the Advisor decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities, when prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the Advisor, subject to review by the Board of Directors. Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value.

Federal Income Taxes: The Funds policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute all its taxable income to its shareholders. Therefore, no federal income tax provision is required.

In addition, GAAP requires management of the Funds to analyze all open tax years, fiscal years 2009-2012, as defined by IRS statue of limitations for all major industries, including federal tax authorities and certain state tax authorities.  As of and during the six months ended June 30, 2012, the Funds did not have a liability for any unrecognized tax benefits.  The Funds have no examination in progress and are not aware of any tax positions for which it is reasonably possible that the total tax amounts of unrecognized tax benefits will significantly change in the next twelve months.  

Distributions to Shareholders: The Funds intend to distribute to its shareholders substantially all of its net realized capital gains and net investment income, if any, at year-end. Distributions will be recorded on ex-dividend date.

Other: The Funds follow industry practice and record security transactions on the trade date. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Discounts and premiums are amortized over the useful lives of the respective securities when determined to be material. Withholding taxes on foreign dividends will be provided for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates.

Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from these estimates.

Subsequent Events: Management has evaluated the impact of all subsequent events through the date the financial statements were issued and has determined that there were no subsequent events requiring recognition or disclosure in these financial statements.

2.   INVESTMENT ADVISORY AGREEMENT

The Company has an investment advisory agreement (the “agreement”) with Morris Capital Advisors, Inc. (the “Advisor”), with whom certain officers and directors of the Funds are affiliated, to furnish investment management services to the Funds. Under the terms of the agreement, the Funds will pay the Advisor a monthly fee based on the Funds’ average daily net assets at the annual rate of 1.00% for Manor Fund and Growth Fund and 0.5% for Bond Fund. For the six months ended June 30, 2012, the Advisor earned advisory fees from the Manor, Growth and Bond Funds of $21,947, $22,998 and $4,378, respectively.

Under the terms of the agreement if the aggregate expenses of the Funds are equal to or greater than 1.50% for Manor Fund and Growth Fund and 1.00% for Bond Fund of the Funds’ net assets the Advisor will reimburse the Funds for these expenses. The reimbursements from the Advisor for the Manor, Growth and Bond Funds for the six months ended June 30, 2012 were, $16,577, $15,449, and $7,443, respectively.  As of June 30, 2012, the Fund owed the Advisor $1,053 for the Manor Fund, $1,114 for the Growth Fund. As of June 30, 2012, the Advisor owed the Bond Fund $818.  

MANOR INVESTMENT FUNDS

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2012 (UNAUDITED)

3.   INVESTMENT TRANSACTIONS

Investment transactions, excluding short-term investments, for the six months ended June 30, 2012, were as follows:

	Manor Fund	Growth Fund	Bond Fund
Purchases	$282,731	$443,216	$378,301
Sales	$459,176	$598,960	$500,250

4.   FEDERAL INCOME TAXES

As of June 30, 2012, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

	Manor Fund	Growth Fund	Bond Fund
Federal tax cost of investments,     including short-term investments	$  3,350,203	$  3,399,986	$ 1,687,119
Gross tax appreciation of investments	$  1,067,501	$  1,302,371	$      32,209
Gross tax depreciation of investments	$(  236,663)	$(  211,418)	$(        421)
Net tax appreciation	$     830,838	$  1,090,953	$      31,788

The Funds tax basis capital gains and losses are determined only at the end of each fiscal year.  For tax purposes, at December 31, 2011, the following represents the tax basis capital gains and losses:

	Manor Fund	Growth Fund	Bond Fund
Capital loss carry-forwards +	$  (246,582)	$  (317,465)	$            —
2016	$              —	$  (  72,463)	$            —
2017	$  (246,582)	$  (183,541)	$            —
2018	$              —	$  (  61,461)	$            —
Distributable Earnings	$       15,335	$              —	$       4,134
Accumulated Realized Gains	$              —	$              —	$     16,166

+ The capital loss carry-forwards will be used to offset any capital gains realized by the Funds in future years through the expiration dates.  The Funds will not make distributions from capital gains while a capital loss carry-forward remains.

The Regulated Investment Company Modernization Act of 2010 generally allows capital losses incurred in a taxable year beginning after December 22, 2010 (post-enactment year) to be carried forward for an unlimited period to the extent not utilized.  However, any capital loss carry-forward generated in a post-enactment year must be carried forward to offset subsequent year net capital gains before any capital loss carry-forward from a pre-enactment year can be used.  This may increase the risk that a capital loss generated in a pre-enactment year will expire unutilized.

Income and long-term capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States

The tax character of distributions paid during the six months ended June 30, 2012 and year ended December 31, 2011 were as follows:

	Manor Fund		Growth Fund		Bond Fund
	6/30/12	12/31/11	6/30/12	12/31/11	6/30/12	12/31/11
Ordinary Income (Loss)	$   —	$15,335	$   —	$   —	$   —	$  3,760
Short-term Gain (Loss)	$   —	$   —	$   —	$   —	$   —	$      76
Long-term Gain (Loss)	$   —	$   —	$   —	$   —	$   —	$16,166

5.   SHAREHOLDER SERVICES PLAN

The shareholders and Board of Trustees of the Company approved a “Shareholder Services Plan” (the “Plan”) at a meeting held on September 15, 2011.  The Company adopted this Plan to enable the Company to bear, directly or indirectly, expenses relating to the provision of certain shareholder services each of the respective funds of the Company.  The Company will pay Service Providers a fee of .25% of the average daily net assets of each of the Manor, Growth and Bond Fund assets with whom the Service Provider has a service relationship for shareholder services. Services for which this fee may be paid include, but are not limited to, (i) maintaining accounts relating to Clients that invest in Shares; (ii) arranging for bank wires; (iii) responding to Client inquiries relating to the services performed by Service Providers; (iv) responding to inquiries from Clients concerning their investment in Shares; (v) assisting Clients in changing dividend options, account designations and addresses; (vi) providing information periodically to Clients showing their position in Shares; (vii) forwarding shareholder communications from the Funds such as proxies, shareholder reports, annual reports, and dividend distribution and tax notices to Clients; (viii) processing purchase, exchange and redemption requests from Clients and placing orders with the Funds or their service providers; (ix) providing sub-accounting with respect to Shares beneficially owned by Clients; and (x) processing dividend payments from the Funds on behalf of Clients.  Service Providers may also use this fee for payments to financial institutions and intermediaries such as banks, savings and loan associations, insurance companies, investment counselors, broker-dealers, mutual fund supermarkets, and the Service Providers’ affiliates and subsidiaries as compensation for such services as are described herein. For the six months ended June 30, 2012, the Manor Fund, Growth Fund, and Bond Fund incurred shareholder service fees of $3,901, $3,884, and $1,213, respectively.

Manor Investment Funds
Expense Illustration
June 30, 2012 (Unaudited)
Expense Example
As a shareholder of Manor Investment Funds, you incur ongoing costs which consist of management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2012 through June 30, 2012.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may
use the information in this line, together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid
During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical
expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may use this information to compare
the ongoing costs of investing in these Funds and other funds. To do so, compare this 5% hypothetical example with
the 5% hypothetical examples that appear in the shareholder reports of the other funds.
		Manor Fund
	Beginning Account Value	Ending Account Value	Expenses Paid During the Period*
	January 1, 2012	June 30, 2012	January 1, 2012 to June 30, 2012
Actual	$1,000.00	$1,037.83	$7.60
Hypothetical
(5% Annual Return before expenses)	$1,000.00	$1,017.40	$7.52
* Expenses are equal to the Fund's annualized expense ratio of 1.50%, multiplied by the average account value over
the period, multiplied by 182/366 (to reflect the one-half year period).
		Growth Fund
	Beginning Account Value	Ending Account Value	Expenses Paid During the Period*
	January 1, 2012	June 30, 2012	January 1, 2012 to June 30, 2012
Actual	$1,000.00	$1,077.05	$7.75
Hypothetical
(5% Annual Return before expenses)	$1,000.00	$1,017.40	$7.52
* Expenses are equal to the Fund's annualized expense ratio of 1.50%, multiplied by the average account value over
the period, multiplied by 182/366 (to reflect the one-half year period).
		Bond Fund
	Beginning Account Value	Ending Account Value	Expenses Paid During the Period*
	January 1, 2012	June 30, 2012	January 1, 2012 to June 30, 2012
Actual	$1,000.00	$1,001.88	$4.98
Hypothetical
(5% Annual Return before expenses)	$1,000.00	$1,019.89	$5.02
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, multiplied by the average account value over
the period, multiplied by 182/366 (to reflect the one-half year period).

MANOR INVESTMENT FUNDS

DIRECTORS AND OFFICERS

JUNE 30, 2012 (UNAUDITED)

DIRECTORS AND OFFICERS

The following table provides information regarding each Director who is not an “interested person” of the Trust, as defined in the Investment Company Act of 1940.  Each Director serves a one year term, and stands for re-election annually.  

Name, Address and Age	Position & Length of Time Served with the Fund	Principal Occupations During Past 5 Years and Current Directorships
James Klucar 15 Chester Commons Malvern, PA 19355 70	Director since 2008	Mr. Klucar is a Nuclear Engineer with Int, Inc. (Retired)
Bruce Laverty 15 Chester Commons Malvern, PA 19355 51	Director since 1995	Mr. Laverty is a Partner of the law firm Laverty Law Offices LLC.
John McGinn 15 Chester Commons Malvern, PA 19355 67	Director since 2002	Mr. McGinn is an independent real estate sales consultant.
Fred Myers 15 Chester Commons Malvern, PA 19355 61	Director since 1995	Mr. Myers is founding Partner of the accounting firm of Myers & Associates, CPA’s.
Edward Szkudlapski 15 Chester Commons Malvern, PA 19355 54	Director since 2000	Mr. Szkudlapski is President of Eclipse Business Solutions, Inc.
Alan Weintraub 15 Chester Commons Malvern, PA 19355 58	Director since 1995	Mr. Weintraub is a Chief Technical Officer with Perficient, Austin, TX.
Howard Weisz 15 Chester Commons Malvern, PA 19355 70	Director since 2008	Mr. Weisz is an Independent Management Consultant.

MANOR INVESTMENT FUNDS

DIRECTORS AND OFFICERS

JUNE 30, 2012 (UNAUDITED)

The following table provides information regarding each Director who is an “interested person” of the Fund, as defined in the Investment Company Act of 1940, and each officer of the Fund.  Each Director serves a one year term, and stands for re-election annually.

Name, Address, and Age	Position and Length of Time Served with the Fund	Principal Occupations During Past 5 Years and Current Directorships
Daniel A. Morris 15 Chester Commons Malvern, PA 19355 57	Director, President, Advisor Since 1995	Prior to founding Morris Capital Advisors, LLC, he was Senior Vice President of Consistent Asset Management Company, an investment adviser for separate accounts and registered investment companies.
John R. Giles 15 Chester Commons Malvern, PA 19355 56	Director, Vice-President, Advisor, Secretary Since 2005	Prior to joining Morris Capital Advisors, LLC, he was Senior Vice President of the Wilmington Trust Company and Senior Vice President of Consistent Asset Management Company, an investment adviser for separate accounts and registered investment companies.

MANOR INVESTMENT FUNDS

ADDITIONAL INFORMATION

JUNE 30, 2012 (UNAUDITED)

Proxy Voting Procedures

The Company’s Board of Directors has approved proxy voting procedures for the voting of proxies relating to securities held by the Fund.  Records of the Fund’s proxy voting records are maintained and are available for inspection.  The Board is responsible for overseeing the implementation of the procedures.  The proxy voting record of the Fund can be reviewed on the web site of the Fund at www.ManorFunds.com.  The Proxy voting history is located under Fund Information, Proxy Voting.

Quarterly Portfolio Schedule

The Company now files a complete schedule of investments with the SEC for the first and third quarters of each fiscal year on Form N-Q.  These forms are available on the SEC’S website at http://www.sec.gov.  They may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.  Information on the operation of the Public Reference Room may be obtained by calling 1-800-723-0330.

Compensation of Board of Directors

The members of the Board of Directors serve without compensation.  Daniel A. Morris, President of Manor Investment Funds, Inc. (“the Funds”), and President of Morris Capital Advisors, LLC, adviser to the Funds, and an Interested Director of the Funds, receives no compensation directly from the Funds.  He is compensated through the management fee paid to the adviser by the Funds.  The business and affairs of the Fund are managed under the direction of the Funds’ Board of Directors.  Information pertaining to the Directors of the Fund are set forth below.  The Statement of Additional Information includes additional information about the Funds’ Directors, and is available without charge, by calling 1-800-787-3334.   Each director may be contacted by writing to the director c/o Manor Investment Funds, Inc., 15 Chester Commons, Malvern, PA  19355.

Renewal of Management Agreement

Agreement made this 13^th day of  June,  2012 by and between Morris Capital Advisors, LLC, having an office at 15 Chester Commons, Malvern, PA 19355, (the "Investment Manager") and (the "Client"):      

The approval of the Amended and Restated Management Agreement (the “Agreement”) for the Fund was considered by the Board, including a majority of Trustees who are not interested persons of the Trust or interested parties to the Agreement (collectively the “Trustees,” each a “Trustee”) at an in-person meeting.

The Board has had the opportunity to review the following information: (i) executed copies of the management agreement, and expense cap side letter, if any; (ii) the Advisor’s most current Form ADV Parts I and II and accompanying schedules, (iii) current financial statements for the Advisor; (iv) performance information illustrating the Funds’ returns for various periods ended December 31, 2011, and comparisons to its benchmark and peer group for the same periods, and (v) an analysis of each Fund’s advisory fee and total expense ratio (after fee waivers and reimbursements) compared to those of its peer group. The Board discussed this information with representatives of each Fund’s Advisor and asked the questions from the Board’s standard 15(c) checklist, including but not limited to a request for the Advisor’s current market outlook, a description of any changes in the Advisor’s personnel or operations, and an attribution analysis of the Fund’s performance during the prior year.

The Trustees confirmed that they had received and evaluated such information as they deemed necessary to make their decision. They also noted that they had taken into account a number of factors that they believed to be relevant. They noted that this included information that had been provided by the Advisor to the Board throughout the year at regular quarterly meetings, as well as information that was specifically furnished to the Committee in connection with its review of the management agreements.

MANOR INVESTMENT FUNDS

ADDITIONAL INFORMATION

JUNE 30, 2012 (UNAUDITED)

After further discussion, the Trustees confirmed the factors they considered during their review of these Advisors as follows:

(i) The Nature, Extent and Quality of Services – The Board reviewed the resources provided to each of the Funds by Morris Capital Advisors, LLC, the Fund’s Advisor, and considered the adequacy of such resources in light of the expected growth in the levels of the Fund’s assets, and whether the resources are sufficient to achieve performance, compliance and other needs. The Board noted that the Advisor provides the support of various administrative and professional staff, including portfolio managers, administrative support, and the Advisor’s chief compliance and chief financial officers, which appear to be satisfactory. They recalled the Advisor’s report that its portfolio managers and analyst spend all of their time on the Fund. They also noted that the Advisor was not proposing any changes to the level of services provided to the Fund. The Board noted that various compliance reports had been made available by the Advisor the Board throughout the year. The Board reviewed the Advisor’s compliance program and discussed compliance issues that had arisen during the year, if any, and the Advisor’s efforts to enhance compliance. The Board determined that the Advisor’s compliance policies and procedures appear reasonably designed to prevent violation of federal securities laws.

(ii) Fund Performance – The Board discussed the performance of each Fund and reviewed other materials provided by the Advisor and the Administrator.

a)

They noted that the Manor Fund underperformed its peer group’s average and benchmark (the S&P 500 Index) for the three month period ending December 31, 2011, but outperformed both the peer group during the trailing 1-year, 3-year, 5-year and 10-year periods, and outperformed the benchmark (the S&P 500 index) during the trailing 5-year and 10-year periods ending December 31, 2011.

b)

They noted that the Manor Growth Fund underperformed the benchmark (the S&P 500 index) and its peer group during the quarter ending December 31, 2011, but outperformed both the benchmark (the S&P 500 index) during the trailing 3-year, 5-year, and 10-year periods, and outperformed its peer group during the trailing 1-year, 3-year, and 10-year periods ending December 31, 2011.  The fund also outperformed both indices since inception.  

c)

They noted that the Manor Bond Fund underperformed both the benchmark (the Barclays Intermediate Government index) and its peer group during the quarter ending December 31, 2011.  They noted that the Fund underperformed both of these indices during the trailing 1-year, 3-year, and 5-year periods ending December 31, 2011.  The Board recognized that this performance was consistent with the very short maturity profile of the Fund, designed to protect principal in a rising interest rate environment.

(iii) Fee Rates and Profitability – The Board discussed fee rates and the profitability of each Fund and reviewed other materials provided by the Advisor and the Administrator.

a)

The Board noted that the gross operating expense ratio of the Manor Fund, including the fee for the investment adviser, and adjusted for the expense ratio cap, was just slightly below the average of the peer group’s average fee, but confirmed that they believe that the advisory fee is justified due to the Advisor’s labor-intensive stock selection process, which includes constant monitoring of thousands of public companies and the Advisor’s efforts to increase visibility of the Fund and attract additional assets.  The Board noted that the Advisor had complied with the expense cap for the Fund at 1.50% by waiving a portion of their management fee, and absorbing certain administrative functions of the Fund for the year ending December 31, 2011.  

b)

The Board noted that the gross operating expense ratio of the Manor Growth, including the fee for the investment adviser, and adjusted for the expense ratio cap, but confirmed that they believe that the advisory fee is justified due to the Advisor’s labor-intensive stock selection process, which includes constant monitoring of thousands of public companies and the Advisor’s efforts to increase visibility of the Fund and attract additional assets.  The Board noted that the Advisor had complied with the expense cap for the Fund at 1.50% by waiving a portion of their management fee, and absorbing certain administrative functions of the Fund for the year ending December 31, 2011.  

MANOR INVESTMENT FUNDS

ADDITIONAL INFORMATION

JUNE 30, 2012 (UNAUDITED)

c)

The Board noted that the gross operating expense ratio of the Manor Bond Fund, including the fee for the investment adviser, and adjusted for the expense ratio cap, was just slightly above the average of the peer group’s average fee, but confirmed that they believe that the higher advisory fee is justified due to the Advisor’s efforts to increase visibility.  The Board noted that the Advisor had complied with the expense cap for the Fund at 1.00% by waiving a portion of their management fee, and absorbing certain administrative functions of the Fund for the year ending December 31, 2011.    

d)

The Board noted that the Advisor appeared profitable for the period despite the fact that the Advisor waived certain management fees and provided administrative functions for the Funds over and above their role as investment advisor.  Finally, the Board recalled that the Advisor reported it had not entered into any soft dollar arrangements and did not have a 12b-1 plan in effect for the year ending December 31, 2011.

(iv) Economies of Scale – In determining the reasonableness of the advisory fees, the Board also considered whether economies of scale will be realized as the Fund grows larger, and the extent to which this is reflected in the advisory fees. The Board concluded that it did not appear the Advisor has not yet begun to realize any significant economies of scale from managing the Fund.

After review and discussion and upon motion duly made and seconded, the Board unanimously approved the continuation for an additional year of the Management Agreement whereby Morris Capital Advisors, LLC serves as the investment Advisor to Manor Investment Funds, Inc.

After further review and discussion and upon motion duly made and seconded, the Board unanimously approved Morris Capital Advisor, LLC’s compliance program, including its Code of Ethics and proxy voting policy as summarized by the Chief Compliance Officer.

ITEM 2. CODE OF ETHICS.

The Registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal account officer or controller, or persons performing similar functions. The registrant has not made any amendments to its code of ethics during the covered period. The registrant has not granted any waivers from any provisions of the code of ethics during the covered period.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Registrant’s audit committee consists of two independent directors, Chaired by John McGinn. The Board of Directors has determined that the Registrant has at least three financial experts serving on its Board.
Mr. Daniel Morris, Mr. John Giles, and Mr. Fred Myers are the Board’s financial experts. Mr. Morris and Mr. Giles are “interested” directors, and Mr. Myers is an “independent” director.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The registrant has engaged its principal accountant to perform audit services. “Audit services” refer to performing an audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. “Audit related services” refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit. “Tax Services” refer to professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. The following table details the aggregate fees billed for each of the last two fiscal years for audit fees, audit-related fees, tax fees and other fees by the principal accountant.

Each year, the registrant’s Board of Directors recommend a principal accountant to perform audit services for the registrant. At the registrant’s Annual Meeting, the shareholders vote to approve or disapprove the principal accountant recommended by the Board.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to open-end investment companies.

ITEM 6. SCHEDULE OF INVESTMENTS

Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form.

ITEM 7.	DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable.
ITEM 8.	[RESERVED.]

ITEM 9.		CONTROLS AND PROCEDURES.
	a)		The registrant’s president and chief financial officer has concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13-a-15(b) under the Securities Exchange Act of 1934.
	b)		There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act that occurred during the registrant’s second fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 10.		EXHIBITS.
	(a)(1)		Code of Ethics — For annual reports.
	(a)(2)		Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
	(b)		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Manor Investment Funds, Inc.
By /s/ Daniel A. Morris
     President
Date 08/28/2012