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, 2003
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.
Manor Investment Funds, Inc.
15 Chester Commons, Malvern, PA 19355
610-722-0900 800-787-3334
Semi-Annual Report
June 30, 2003
Fund Office:
15 Chester Commons
Malvern, PA 19355
610-722-0900 800-787-3334
www.manorfunds.com
Managed by:
Morris Capital Advisors, Inc.
Manor Investment Funds, Inc.
15 Chester Commons
Malvern, PA 19355
June 30, 2003
Dear Fellow Shareholders:
The 2nd Quarter of 2003 finally provided some good news for beleaguered
investors. It feels good to report positive returns to shareholders again.
The stock market rally, and inflows from new and existing shareholders
boosted Fund assets over $5.8 million.
Rocky 2
When I wrote to you just 3 months ago I compared the market action to
the character made famous by Silvester Stallone in the 70's. At that time
the market had just begun to rally after getting pounded early in the year,
and I said that it had the potential for a "Rocky" script.
In a comeback befitting our hero, the markets rebounded from the depths
of defeat to recoup its losses and turn sharply positive by the end of June.
At the lows in mid-March the S&P 500 was down 8.6% for the year, after a
decline of 23.4% the previous year. In just 3 months the market rallied
21.2% from the lows, recovering more than half of the decline suffered over
the prior 15 months. The markets have won an incredible victory and we can
go home, a little tired, as the music plays and the credits roll on the
screen.
But life and the financial markets are not limited to 90 minute scripts.
The question now is whether this market can defend its bull market title or
will it buckle at the knees and collapse. Rather than mangle any more movie
metaphors, a look at this market compared to the last multi-year decline in
1973-74 might be instructive.
During that decline the S&P 500 lost 42.9%. The Price to Earnings ratio
(PE) dropped to 7.3, 10-year yields were 7.4%, and inflation was 12.3%.
During the following two years the S&P rose 56.7% while Earnings per share
(EPS) rose just 4.3%.
Over the last 3 years the S&P dropped 49.2% from its peak. Now, the PE
on forward earnings is 17.5, 10-year yields are 2.5% and inflation is 2.4%.
The market has rebounded 25.6% from the lows while earnings are expected to
rise 30% over the next two years.
At this point the market has recovered less than half of the gain
recorded after the 73-74 decline. The PE is higher, but that is offset by
much lower yields and inflation. The big difference at this point is the
potential for earnings to increase much faster than 73-74. If companies are
able to achieve decent earnings growth this market rebound could easily
eclipse the gains recorded in the 70's.
The Manor Fund
The Manor Fund outperformed the S&P 500 Index and the Lipper Large-Cap
Core mutual fund index for the quarter, and trailing year. The Fund was
helped by gains in Best Buy, Kaufman & Broad Home, Citrix Systems, and MBNA
Bank.
Best Buy continued to rise steadily because it is still gaining market
share from competitors without sacrificing profitability. Kaufman & Broad
jumped sharply in late May, to an all-time high, but still trades at a
reasonable valuation. Citrix Systems continues to rebound from the lows in
mid-March as revenues and earnings respond to increased information
technology spending. MBNA Bank rebounded on the expectation of better
earnings and lower default rates as the economy improves.
The Fund was hurt by declines in Freddie Mac, and Nabors Industries, and
sluggish performance from Reebok, Fannie Mae, and General Motors. Freddie
Mac declined after announcing a management shakeup and accounting change
regarding hedged positions. This company was one of the best performers in
the Fund just last year, and was the subject of several complementary
articles in the press regarding their hedging practices. Nabors declined
late in the quarter as falling natural gas prices reduced investor
expectations for future earnings. Reebok, Fannie Mae, and General Motors all
rose during the quarter, but not enough to match the dramatic rise of the
market. Reebok and GM were both hurt by a weak retail economy, while Fannie
Mae was restrained by comparison the problems at Freddie Mac.
The Growth Fund
The Growth Fund also outperformed S&P 500 Index and the Lipper Large-Cap
Growth mutual fund index for the trailing year, and since inception. The
Fund was helped by gains in Cendant, Ivax, AmeriSource Bergen, Ebay, and
Monster Worldwide.
Cendant rose steadily as revenues grew in both the Real Estate and
Travel Services divisions. Ivax rose throughout the quarter on prospects of
new drug approvals and a better environment for generic drug makers.
AmeriSource Bergen rose on expectations that Medicare reforms will help the
growth of this drug distributor. Ebay continued its rise as the success of
its online auction model becomes more apparent. Monster International
rebounded from depressed levels after a corporate restructuring returned the
focus to its core business.
The Fund was hurt by declines in Cytyc, Valero Energy, United Health
Services, and Qualcomm. Cytyc declined sharply after announcing lower
earnings expectations. Valero Energy declined after performing well in the
previous quarter, as the price of oil declined. Universal Health Services
struggled as accounting and management problems at several competitors
reduced valuations throughout the sector. Qualcomm declined slightly over
concerns about competition among the competing wireless communication
technology standards.
During the quarter we purchased American International Group and
Interactive Corp. to further reduce the substantial cash reserves built
during the market decline. American International Group is an insurance and
financial services company with operations in the U.S. and abroad.
Interactive Corp. , managed by Barry Diller, facilitates direct-to-consumer
transactions for home shopping, entertainment, travel, entertainment, and
teleservices.
The Bond Fund
The Bond Fund rose 1.00% for the Quarter and 4.91% for the trailing
year. The fund portfolio is managed to preserve principal in this volatile
market so as to provide shareholders with a low risk alternative to stocks.
The fund's investment portfolio of US Treasury securities is very
conservative, with an average maturity for the entire portfolio of only 2.4
years, an average duration of 2.2 years, and an average yield to maturity of
1.55%.
The Next Round
I believe that economic growth will continue to improve as a result of
low interest rates, recent tax cuts, corporate cost cutting, and a lower
dollar. With low interest rates and low inflation, a stronger economy should
contribute to earnings growth consistent with the current estimates. In this
environment the stock market could repeat the rebound of 73-74. If so, this
remains an attractive opportunity to invest, and I urge investors that have
moved to cash or the bond market to move back to stocks. Even a moderate
rebound will outperform the returns available in either of these two
alternatives.
In the Fund portfolios, I will continue to reduce the cash reserves that
built up during the market decline by investing in companies with attractive
growth prospects trading a reasonable valuations.
Sincerely,
Daniel A. Morris
Manor Fund
June 30, 2003
Portfolio of Investments
Market
Description Shares Value
- ----------------------------- --------- ----------
Common & Preferred Stock
Consumer Staples 7.5%
Pepsico 1,560 69,420
Reebok 2,090 70,287
----------
139,707
Consumer Disc. 1.8%
AOL Time Warner 2,930 47,144
----------
47,144
Retail 7.7%
Best Buy 2,190 96,185
Cardinal Health 1,305 83,911
----------
180,096
Medical 12.3%
Anthem 800 61,720
Manor Care 2,590 64,776
Merck 810 49,045
Pfizer 2,130 72,739
----------
248,281
Automobile 2.3%
General Motors 1,190 42,840
----------
42,840
Basic Materials 3.1%
Alcan 1,940 60,702
----------
60,702
Industrial Products 1.7%
Tyco Intl Ltd. 2,240 42,515
----------
42,515
Construction 3.4%
Kaufman & Broad 1,310 81,194
----------
81,194
Multi-Industry 3.3%
General Electric 2,270 65,104
----------
65,104
Computer 11.6%
Cisco 2,350 39,456
Citrix Systems 2,570 52,325
Hewlett-Packard 1,960 41,748
Intel 2,020 42,036
IBM 950 78,375
----------
253,941
Aerospace 1.8%
Boeing 1,230 42,213
----------
42,213
Oil 8.8%
Devon Energy 1,220 65,148
Nabors 1,010 39,925
Occidental Pet. 1,820 61,061
----------
166,134
Finance 15.2%
Allstate Insurance 1,480 52,762
Citigroup 1,769 75,713
Fed Nat Mtg Assoc 920 62,045
Freddie Mac 920 46,708
MBNA Corp. 3,070 63,979
----------
301,207
Utilities 2.8%
Exelon 970 58,016
----------
58,016
Other Assets 3.4%
S&P 500 SPDR 690 67,365
----------
67,365
Cash and Equiv. 13.4%
1st Am. Gov't Obl. 181,684
FNBCC Inv. Ch. 42,546
----------
224,230
----------
Total Portfolio 2,020,689
==========
Top Five Holdings
Company Industry % of Net Assets
- ------------------- ------------ ---------------
Kaufman & Broad Construction 5.5 %
General Motors Automobile 5.1 %
Chevron Texaco Oils 5.0 %
Fed Nat'l Mtg Assoc Medical 4.6 %
Cardinal Health Retail 4.5 %
Top Five Industries
Industry % of Net Assets
- ----------------- ---------------
Finance 13.6 %
Computer 13.6 %
Medical 12.0 %
Oil 10.3 %
Construction 5.5 %
Fund Performance
Trailing Annualized
Total Return 3 Months Year Since Inception
- --------------------------- --------- --------- ----------------
Manor Fund -14.24 % -26.23 % 2.09 %
Lipper Large-Cap Core Index -12.41 % -17.23 % 5.65 %
S&P 500 Index -13.39 % -17.98 % 9.81 %
Growth Fund
June 30, 2003
Portfolio of Investments
Market
Description Shares Value
- ------------------------------ -------- ----------
Common & Preferred Stock
Consumer Staples 2.1%
Jones New York 1,270 37,160
----------
37,160
Consumer Disc. 6.8%
Barnes & Noble 1,480 34,114
Cendant Corp. 3,910 71,631
Mohawk Inc. 720 39,982
Interactive Corp. 1,570 61,748
----------
207,475
Retail 9.7 %
Amerisource Berg. 900 62,415
Bed, Bath, Beyond 1,400 54,348
Ebay 760 79.040
----------
195,803
Medical 17.1%
Andrx Group 1,120 22,344
Cytyc Corp 3,230 34,077
Express Scripts 980 67,042
Forest labs 940 51,465
Ivac Corp 2,843 50,747
Quest Diagnostics 700 44,660
Universal Health 1,120 44,374
----------
314,709
Computer 21.3%
Cisco 620 10,410
Concord EFS 1,740 25,613
Dell Computer 2,130 67,819
Intel 2,500 52,025
Microsoft Corp. 2,060 52,818
Qualcomm 1,320 47,441
Sun Microsystems 2,080 9,672
Vishay 4,170 55,044
Waters Corp. 1,110 32,334
Xilinx 2,550 64,515
----------
417,691
Oil 5.7%
GlobalSanteFe 1,835 42,829
Valero Energy 1,380 50,136
----------
92,965
Finance 7.9%
American Int. Group 1,160 64,009
Greenpoint Fin. 1,020 51,959
T. Rowe Price 790 29,838
Washington Mutual 1,800 74,340
----------
220,146
Transportation 1.4%
Tidewater 830 24,377
----------
24,377
Business Services 0.6%
Hudson Highland 75 1,416
Monster Worldwide 1,000 19,730
----------
21,146
Other Assets 3.4%
S&P 500 SPDR 660 64,436
----------
64,436
Cash and Equiv. 24.0%
1st Am. Gov't Obl. 227,619
FNBCC Inv. Choice 108,569
----------
336,188
----------
Total Portfolio 1,932,096
==========
Top Five Holdings
Company Industry % of Net Assets
- -------------- ------------ ---------------
S&P 500 SPDR Other Assets 4.3 %
Amerisource Bergen Retail 3.7 %
Washington Mutual Finance 3.5 %
Universal Health Svcs Medical 3.5 %
Microsoft Corp. Computer 3.4 %
Top Five Industries
Industry % of Net Assets
- ------------------------ ---------------
Computer 16.8 %
Medical 16.0 %
Other Assets 8.8 %
Finance 8.4 %
Consumer Discretionary 8.1 %
Fund Performance
Trailing Annualized
Total Return 3 Months Year Since Inception
- ----------------------------- -------- -------- ---------------
Growth Fund -11.80 % -16.13 % -7.75 %
Lipper Large-Cap Growth Index -15.73 % -24.99 % -17.04 %
S&P 500 Index -13.39 % -17.98 % -9.13 %
Bond Fund
June 30, 2003
Portfolio of Investments
Market
Description Par Value Value
- ------------------------------------ ---------- -----------
Government Bonds 91.8 %
Less than 1 year to maturity
U.S. Treasury 3.875% Due 07-31-03 100,000 100,250
U.S. Treasury 2.750% Due 10-31-03 250,000 251,562
1 to 3 years to maturity
U.S. Treasury 5.250% Due 05-15-04 80,000 82,925
U.S. Treasury 6.000% Due 08-15-04 100,000 105,500
U.S. Treasury 2.000% Due 11-30-04 300,000 303,562
U.S. Treasury 1.500% Due 02-28-05 200,000 200,938
U.S. Treasury 5.875% Due 11-15-05 50,000 55,172
U.S. Treasury 5.625% Due 02-15-06 100,000 110,594
3 to 5 years to maturity
U.S. Treasury 4.625% Due 05-15-06 50,000 54,204
U.S. Treasury 3.250% Due 08-15-07 200,000 208,812
5 to 10 years to maturity
U.S. Treasury 5.500% Due 05-15-09 100,000 115,281
U.S. Treasury 6.000% Due 08-15-09 100,000 117,969
U.S. Treasury 5.000% Due 02-15-11 50,000 56,125
Accrued Interest 16,198
-----------
1,779,092
Cash and Equiv. 8.2 %
1st American Treasury Obligations 38,029
FNBCC Inv. Choice 27,536
-----------
65,565
-----------
Total Portfolio 1,844,657
===========
Top Five Holdings
Security % of Net Assets
- -------------------------------------- ---------------
US Treasury 4.625% due 2/28/2003 13.2 %
US Treasury 6.0% due 8/15/2009 9.4 %
US Treasury 5.625 % due 2/15/2006 9.2 %
US Treasury 6.0% due 8/15/2004 9.2 %
US Treasury 5.50 % due 5/15/2009 9.1 %
Fund Performance
Trailing Annualized
Total Return 3 Months Year Since Inception
- -------------------------- --------- --------- ---------------
Bond Fund 2.93 % 6.01 % 5.83 %
Lipper US Government 3.81 % 8.43 % 7.48 %
Lehman Inter. Gov't Index 3.93 % 8.09 % 7.48 %
Manor Investment Funds, Inc.
Statement of Assets and Liabilities
June 30, 2003
Six Months Ended June 30, 2002
Manor Growth Bond
Fund Fund Fund
----------- ----------- -----------
ASSETS
Investments in Securities $ 1,796,228 $ 1,596,121 $ 1,762,915
Cash 224,230 336,188 65,565
Dividends & Interest Receivable 548 971 16,223
----------- ----------- -----------
Total Assets 2,021,006 1,933,280 1,844,704
LIABILITIES
Expenses Payable (1,933) (1,990) (2,948)
----------- ----------- -----------
Total Liabilities (1,933) (1,990) (2,948)
----------- ----------- -----------
NET ASSETS $ 2,022,939 $ 1,935,270 $ 1,847,651
=========== =========== ===========
NET ASSETS CONSIST OF:
Capital Stock
(par value and paid-in capital) $ 2,221,411 $ 2,453,588 $ 1,735,246
Accumulated net investment income(loss)
(13,061) (32,510) 25,435
Accumulated net realized (loss)
(127,206) (248,454) 67
Net unrealized appreciation (depreciation)
(58,205) (237,354) 86,903
----------- ----------- -----------
NET ASSETS $ 2,022,939 $ 1,935,270 $ 1,847,651
=========== =========== ===========
CAPITAL SHARES OUTSTANDING
(10,000,000 authorized shares;
$.001 par value) 168,110 243,475 166,007
=========== =========== ===========
NET ASSET VALUE PER SHARE
$ 12.03 $ 7.95 $ 11.13
=========== =========== ===========
Manor Investment Funds, Inc.
Statement of Operations
June 30, 2003
Six Months Ending June 30, 2002
Manor Growth Bond
Fund Fund Fund
----------- ----------- -----------
Investment Income
Dividends
$ 10,684 $ 3,095 $ - 0 -
Interest 1,771 3,065 31,962
----------- ----------- -----------
Total Investment Income 12,455 6,160 31,962
Expenses
Management Fees 8,913 8,349 4,734
Professional Fees 5,894 5,058 6,216
Trustee Fees 1,244 1,312 1,795
Registration Fees 375 100 460
Taxes 150 150 377
Miscellaneous Fees (3,138) (2,120) (3,892)
----------- ----------- -----------
Total Expenses 13,438 12,859 9,691
----------- ----------- -----------
Net Investment Income (Loss) (983) (6,689) 22,270
Realized & Unrealized Gain (Loss) on Investments
Net Realized gain (loss)
on Investments -0- -0- (633)
Net Change in Unrealized Appreciation/Depreciation on Investments
256,819 210,077 4,461
----------- ----------- -----------
Net realized and Unrealized Gain (Loss) on Investments
256,819 210,077 3,828
----------- ----------- -----------
Net Increase (Decrease) in Net Assets Resulting from Operations
$ 255,836 $ 203,388 $ 26,098
=========== =========== ===========
Manor Investment Funds, Inc.
Statement of Changes in Net Assets
June 30, 2003
Six Months Ending June 30, 2002
Manor Growth Bond
Fund Fund Fund
----------- ----------- -----------
Increase (Decrease) in Net Assets from Operations
Net Investment (Loss) Income
$ (216) $ 21,067 $ 24,243
Net realized gain (Loss) on investments
30,250 (13,070) 7,381
Net Change in Unrealized Appreciation/Depreciation on Investments
(373,852) (218,679) (2,923)
----------- ----------- -----------
Net increase/decrease in net assets resulting from operations
(343,818) (210,682) 28,701
Distributions to Shareholders from
Net Investment Income - 0 - - 0 - - 0 -
Net Realized Gain - 0 - - 0 - - 0 -
----------- ----------- -----------
Total Distributions - 0 - - 0 - - 0 -
Capital Share Transactions
Proceeds from shares sold 173,229 337,934 380,867
Proceeds From Reinvestment
of Distributions - 0 - - 0 - - 0 -
Payments for shares redeemed (127,945) (80,132) (725,667)
----------- ----------- -----------
Net Increase in Net Assets From
Capital Share Transactions 45,284 257,802 (344,800)
----------- ----------- -----------
Total Increase in Net Assets (298,534) 47,120 (316,099)
Net Assets:
Beginning of Year 2,086,893 1,522,153 1,476,423
----------- ----------- -----------
End of Year $ 1,788,359 $ 1,569,273 $ 1,160,324
=========== =========== ===========
Transactions in Shares of Fund
Sold 13,521 38,993 35,452
Issued in reinvestment
of distributions - 0 - - 0 - - 0 -
Redeemed (10,172) (9,051) (67,846)
----------- ----------- -----------
Net increase/decrease in
outstanding-shares of the Fund 3,349 29,942 (32,394)
=========== =========== ===========
Manor Investment Funds, Inc.
Notes to Financial Statements
June 30, 2003
Note 1-Organization
Incorporated in Pennsylvania on September 13, 1995, Manor Investment Funds,
Inc. (the Company) was in the initial stages of development until January 27,
1996 when it began to sell shares of its stock to the public. The Company is
an open-end, non-diversified management investment company, registered under
the Investment Company Act of 1940. Manor Fund, Growth Fund, and Bond Fund
(collectively referred to as the Funds) presently constitute Manor Investment
Funds, Inc. The primary investment objectives of each of these Funds follow:
Manor Fund:
Conservative capital appreciation and current income, investing primarily in
common stock of large corporations in the United States.
Growth Fund:
Long-term capital appreciation, investing primarily in common stock of U.S.
corporations.
Bond Fund:
Intermediate-term fixed income, investing primarily in U. S. Government
obligations.
Note 2-Significant Accounting Policies
Following is a summary of the Funds' significant accounting policies which
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 Funds follow industry practice and record 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 Funds to
concentration of credit risk. The carrying value of these accounts
approximates market value due to their short-term nature.
Federal Income Taxes:
The Funds intend to continue to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of their taxable income. Accordingly, no provision for
federal income tax or excise tax is required in these financial statements.
Distributions:
Each Fund generally pays, or intends to pay dividends from net investment
income and to distribute net capital gains that it realizes. Distributions to
shareholders are recorded on the ex-dividend date.
Realized Gains and Losses on Investment Transactions:
Gains or losses realized on investment transactions are determined by
comparing the identified cost of the security lot sold with the net sales
proceeds.
Accounting Estimates:
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. When applicable, premiums
and discounts on purchased U. S. government obligations are amortized or
accreted to interest income over the life of the obligation.
As mutual funds, the Funds' investments are subject to stock market risk,
bond market risk and inflation risk. Manor Fund and Growth Fund will have
higher exposure to stock market risk because of their significant investments
in stocks. Bond Fund will have higher exposure to bond market risk and
inflation risk because of its significant investments in U.S. Treasury Notes.
Note 3-Related Party Transactions
Daniel A. Morris, President of Manor Investment Funds, Inc., is also the sole
shareholder, officer and director of Morris Capital Advisors, Inc. (Morris).
Mr. Morris (and his wife) and other directors, own shares in the Funds. Each
of the Funds has an investment management and advisory services agreement
(the Agreements) with Morris.
Monthly, the Funds pay Morris Capital Advisors a fee equivalent to one
percent per annum of the daily average net assets of the Manor and Growth
Funds (.5 percent for Bond Fund). Each of the Funds bears expenses necessary
and incidental to the conduct of its business.
The Agreements must be approved annually by a majority vote of the Funds'
non-interested Board of Directors.
Note 4-Investment Transactions
Purchases of investment securities for Manor, Growth and Bond aggregated
$372,712, $284,009 and $654,523, respectively in 2002; sales aggregated
$451,921, $194,964, and $408,078 for Manor, Growth, and Bond, respectively.
For income tax purposes, Manor Fund has capital loss carryovers of $127,207.
Growth Fund capital losses total $248,454. Such losses were generally
realized from 1999 through 2002 and will be carried forward to offset future
realized capital gains. If not used, they will expire in 2007 through 2010.
Each Fund portfolio consists of securities that have risen in value since
their purchase (called unrealized gain), or securities that have fallen in
value (unrealized loss) since their purchase. At December 31, 2002, net
unrealized appreciation and depreciation of investment securities for
financial reporting and federal income tax reporting were as follows:
Manor Fund:
Net unrealized depreciation of $315,025 consisted of unrealized gains of
$56,548 and unrealized losses of $371,573.
Growth Fund:
Net unrealized depreciation of $447,431 consisted of unrealized gains of
$71,60 and unrealized losses of $519,031.
Bond Fund:
Net unrealized appreciation of $82,442 consists solely of unrealized gains on
U.S. Government obligations.
Note 5-Custody Agreement
Under an agreement, The First National Bank of Chester County (FNB) acts as
the custodian for each of the Funds. FNB charges fees in accordance with its
standard rates for such services, payable monthly.
Manor Investment Funds, Inc.
Fund Office:
15 Chester County Commons
Malvern, PA 19355
610-722-0900 800-787-3334
www.manorfunds.com