Manor Investment Funds, Inc.
15 Chester Commons, Malvern, PA 19355
610-722-0900 800-787-3334
Annual Report
December 31, 2004
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
December 31, 2004
Dear Fellow Shareholders:
I am pleased to report that combined shareholder assets in the Funds
have grown to more than $7 million on the strength of shareholder
contributions and strong investment performance. I am also pleased to report
that the Growth Fund was awarded a 5 Star rating for the trailing three years
ending September 30, 2004, from MorningStar an independent mutual fund rating
organization. The 5 Star rating is the highest rating that MorningStar awards
based on the return of a mutual fund compared to other funds in its peer
group. The Manor Fund was also awarded a 4 Star rating over the same time
period, the second highest rating that MorningStar awards.
A Years Work - - in Just Two Months
When I last wrote this report at the end of September 2004 the stock
market had given up most of the gains that it earned earlier in the year, and
it declined further during October. The battle between the bulls and bears
was a stalemate, yielding next to nothing for investors despite strong
economic growth. Investors were fixated on worries about politics, terrorism,
international events, and corporate scandals. There wasn't much to get
excited about, unless you were Elliot Spitzer. It seemed that he had a press
conference every other day to announce another indictment against some
business executive, corporation, or industry. He targeted the New York Stock
Exchange, the insurance industry, and numerous executives. On the heels of
indictments against the mutual fund industry, investors had to wonder if their
money was safe anywhere.
In this kind of environment who could blame investors for sitting on
the sidelines.
But against this backdrop the stock market took on a life of its own.
As some of the uncertainty regarding the election subsided the market began to
rally. The rally continued well past the election and into the end of the
year. The market gained 4.05% in the month of November, and 3.40% in
December, to end the year up 10.87%, as measured by the S&P 500 index. That
is a pretty good return for the stock market, especially compared to the
yields on bonds and money market funds.
The Manor Fund
The Manor Fund rose 13.06%, net of all fees and expenses, during the
quarter ending December 31, 2004, outperforming the S&P 500 index, 9.23% and
comparable mutual funds as measured by the Lipper Large-Cap Core mutual fund
index, 8.50%. The Fund also outperformed the S&P 500 and the Lipper
Large-Cap Core mutual fund index for the trailing 1-year, 3-year and 5-year
periods ending December 31, 2004, with returns of 13.55%, 5.98% and -1.65%,
compared to the S&P 500 (10.87%, 3.57%, and -2.28%), and Lipper (8.29%, 2.10%,
and -2.98%). During the 4th quarter of 2004 the Fund was helped by gains in
Wellpoint Health, Vornado Realty Trust, Kaufman & Broad Home, Cardinal Health,
and Citrix Systems.
Wellpoint Health rose after completeing the merger that conbined Anthem
and wellpoint. Vornado Realty Trust rose after the announced merger between
Kmart and Sears. Vornado has substantial holding of Sears real estate and
should benefit from the combination. Kaufman & Broad rose, despite several
interest rate hikes by the Fed, on continued strong demand in the real estate
market. The Fed rate hikes also helped Vornado Realty Trust because
longer-term interest rates declined, thereby improving the cash flow of this
real estate investment trust. Cardinal Health rebounded from weak performance
earlier in the year as earnings stabilized for this pharmacy benefits manager.
Citrix Systems also rebounded from poor performance earlier in the year after
reporting stronger revenue and earnings growth. Norfolk Southern, a recent
addition to the Fund, rose as economic growth raised the prospect of higher
revenues and earnings.
Notable laggards during the 4th quarter include Pfizer, Boeing, Alcan,
Cisco Systems, and Hewlett-Packard. Pfizer declined after a study showed
increased risk of heart attacks for patients using Celebrex. This news came
soon after Merck pulled a similar drug, Vioxx, from the market after a study
showed increased heart risk. Pfizer's risk is lower because the study was
based on usage up to 4 times the normal dosage. Boeing declined as progress
on the new 7E7 plane and customer interest waned. Alcan declined as Fed
interest rate hikes threatened economic growth and pricing for this aluminum
can producer. Cisco Systems and Hewlett-Packard declined on weakness in the
technology sector.
There were no significant purchases or sales for the Fund portfolio
during the quarter. The Fund was fully invested, with minimal cash balances,
to take advantage of the strong equity market.
The Growth Fund
The Growth Fund rose 11.21%, net of all fees and expenses, during the
quarter ending December 31, 2004, outperforming both the S&P 500 index,
9.23%, and comparable mutual funds as measured by the Lipper Large-Cap
Growth mutual fund index, 9.99%. The Fund also outperformed the S&P 500 and
the Lipper Large-Cap Growth mutual fund index for the trailing 1-year, and 3-
year periods ending December 31, 2004, with returns of 11.93%, and 4.86%,
compared to the S&P 500 (10.87%, 3.57%), and Lipper (7.45%, -0.65%). The Fund
was helped by gains in Coach, TXU Corporation, Ebay, Chelsea Property Trust,
and Dell.
Coach, a recent addition to the Fund, rose after reporting strong sales
in the early holiday shopping season. TXU, another recent addition to the
Fund, continued to rally as investors recognized the impact of improved
operating results. Ebay rose after reporting strong growth in revenues and
earnings. Chelsea Property Trust rallied because Fed rate hikes helped to
lower long-term interest rates, improving cash flow at this real estate
investment trust. Dell rose after reporting higher growth in revenues and
earnings.
Only three stocks in the portfolio declined during the 4th quarter; Ivax
Corp., American International Group, and Forest Labs. Ivax and Forest labs
suffered from an overall decline in the drug sector and company-specific
events. Ivax, a generic drug manufacturer, was hurt when another generic
manufacturer won approval for a competing product. Forest Labs declined
when a clinical study did not support its application for a new drug product.
Jones Apparel lagged the market as weak consumer demand hurt results at this
retailer of clothing for women.
During the quarter we sold Amerisource Bergen, Barnes & Noble, First
Data Corp., and Vishay. We used the proceeds of these sales to purchase Baker
Hughes, an oil exploration company, Coach, a retailer of accessories for
women, Etrade Financial, a discount stock broker, Golden West Financial, a
thrift bank, and News Corp., a media company. The Fund was fully invested,
with minimal cash balances, to take advantage of the strong stock market.
The Bond Fund
The Bond Fund generated a return of -0.38%, net of all fees and
expenses, for the quarter ending December 31, 2004, less than the return of
the Lehman Intermediate Treasury Index and the Lipper US Government mutual
fund index (0.72% and 0.06%, respectively). For the year ending December 31,
2004 the Fund generated a return of -0.09% less than the Lehman Intermediate
Treasury Index (3.35%) and the Lipper US Government mutual fund index (2.84%).
This poor performance was frustrating since the Fund's investment portfolio of
US Treasury securities was managed with a short maturity and duration on the
expectation of interest rate hikes by the Fed. Unfortunately, when the Fed
raised rates longer term bonds rallied, thereby improving bond market
performance. The Fund's US Treasury portfolio remains conservative with an
average yield to maturity of 3.1%, an average maturity of approximately 3.4
years, and an average duration of 2.6 years. The duration of a bond portfolio
is a measure of risk, with a lower duration indicating a lower level of risk.
The Fund is managed to provide a low-risk alternative for conservative
investors.
Next Years' Work
At year end I find it helpful to review the past year and consider the
possibilities for the one upcoming. The market action last year, especially
the 4th quarter, shows that it is highly problematic to try to pick market
tops or bottoms. It reinforces my belief that it is very difficult to "time
the market". But as I review my year end analysis, I conclude that the stock
market is not a bargain, and may be somewhat overvalued. So, at this point I
expect to reduce some holdings that have appreciated, and reinvest the
proceeds in stocks with conservative valuations.
Sincerely,
Daniel A. Morris
MANOR INVESTMENT FUNDS, INC.
Manor Fund
December 31, 2004
Top Holdings & Sectors
Top Company Holdings
Company % of Net Assets
KB Home 3.8 %
Occidental Petrol 3.7 %
Freddie Mac 3.7 %
Wellpoint Health 3.7 %
Alcan 3.3 %
Top Industry Sectors
Industry % of Net Assets
Finance 22.1 %
Medical 12.2 %
Computer 11.0 %
Oil 9.4 %
Consumer Staples 6.1 %
Fund Performance
Quarter and Annualized Total Return for Periods Ending December 31, 2004
Manor Fund S&P 500Index Lipper LCCore Funds
4th Quarter 13.06 % 9.23 % 8.50 %
1 Year 13.55 % 10.87 % 8.29 %
3 Year Annualized 5.98 % 3.57 % 2.10 %
5 Year Annualized -1.65 % -2.28 % -2.98 %
Annualized since inception 5.42 % 9.95 % 6.30 %
12/31/93
The S&P 500 Index is a capital-weighted index, representing the aggregate
market value of the common equity of 500 stocks primarily traded on the New
York Stock Exchange. The Lipper LC Core mutual fund index is an index of
mutual funds managed with a similar investment style. Both are computed on
a total return basis. The chart assumes an initial gross investment of
$10,000 on 9/25/1995 (commencement of operations). Returns shown include the
reinvestment of dividends. Past performance does not predict future
performance. Investment return and principal value will fluctuate, so your
shares at redemption may be worth more or less than the original cost.
MANOR INVESTMENT FUNDS, INC.
Growth Fund
December 31, 2004
Top Holdings & Sectors
Top Company Holdings
Company % of Net Assets
Ebay 4.3 %
TXU Corp. 4.2 %
Coach Inc. 3.8 %
Qualcomm 3.8 %
Dell Computer 3.8 %
Top Industry Sectors
Industry % of Net Assets
Finance 19.0 %
Computer 17.9 %
Retail 12.8 %
Medical 12.7 %
Consumer Staples 8.7 %
Fund Performance
Quarter and Annualized Total Return for Periods Ending December 31, 2004
Growth Fund S&P 500 Index Lipper LC Growth Funds
4th Quarter 11.21 % 9.23 % 9.99 %
1 Year 11.93 % 10.87 % 7.45 %
3 Year Annualized 4.86 % 3.57 % -0.65 %
5 Year Annualized -2.51 % -2.28 % -9.71 %
Annualized since inception 0.57 % -0.74 % -6.73 %
6/30/93
The S&P 500 Index is a capital-weighted index, representing the aggregate
market value of the common equity of 500 stocks primarily traded on the New
York Stock Exchange. The Lipper LC Growth mutual fund index is an index of
mutual funds managed with a similar investment style. Both are computed on a
total return basis. The chart assumes an initial gross investment of $10,000
on 6/30/1999 (commencement of operations). Returns shown include the
reinvestment of dividends. Past performance does not predict future
performance. Investment return and principal value will fluctuate, so your
shares at redemption may be worth more or less than the original cost.
MANOR INVESTMENT FUNDS, INC.
Asset Allocation
Manor Fund and Growth Fund
December 31, 2004
Manor Fund
Industry Sectors
Industry % of Net Assets
Finance 22.1 %
Medical 12.2 %
Computer 11.0 %
Oil 9.4 %
Consumer Staples 6.1 %
Multi-Industry 6.0 %
Retail 5.9 %
Index Equivalent 5.9 %
Construction 3.7 %
Basic Material 3.3 %
Transportation 3.1 %
Utility 3.0 %
Industrial Products 2.6 %
Aerospace 2.2 %
Auto 1.8 %
Cash Equivalents 1.7 %
-------
100.0 %
=======
Growth Fund
Industry Sectors
Industry % of Net Assets
Finance 19.0 %
Computer 16.1 %
Retail 12.8 %
Medical 12.7 %
Consumer Staples 8.7 %
Consumer Discretionary 7.5 %
Oil 6.3 %
Utility 4.2 %
Index Equivalent 4.2 %
Cash Equivalent 3.0 %
Transportation 2.8 %
Multi-Industry 2.7 %
-------
100.0 %
=======
MANOR INVESTMENT FUNDS, INC.
Manor Fund and Growth Fund
Expenses
December 31, 2004
As a shareholder of the Fund, you incur indirect costs, such as management
fees, and other Fund operating expenses. This example is intended to help
you understand your indirect costs, also referred to as "ongoing costs," (in
dollars) of investing in the Fund, and to compare these costs with the ongoing
costs of investing in other mutual funds.
This example is based on an investment of $1,000 invested at the beginning of
the period and held for the 6 month period of July 1, 2004 through
December 31, 2004.
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 at the beginning of the period, 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 "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 provides information about hypothetical account
values and hypothetical expense based on the Funds' actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Funds' 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 ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder
reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any direst costs, such as wire fees or
low balance fees. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these direct costs
were included, your costs would be higher.
Beginning Ending Expenses Paid
Account Value Account Value During Period *
July 1, 2004 December 31, 2004 January 1, 2004 -
December 31, 2004
Manor Fund
Actual Manor Fund $1,000.00 $1,122.20 $7.92
Hypothetical 1,000.00 1,017.35 7.65
(5% return before expenses)
Growth Fund
Actual Growth Fund 1,000.00 1,053.10 7.70
Hypothetical 1,000.00 1,017.35 7.65
(5% return before expenses)
* Expenses are equal to the Funds' annualized expense ratios, capped at
1.5%, which is net of any expenses paid indirectly, multiplied by the average
account value over the period. The ending account value for each Fund in the
table is based on its actual total return for the 6 month period of July 1,
2004 to December 31, 2004, 11.22% for the Manor Fund, and 5.31% for the
Growth Fund.
MANOR INVESTMENT FUNDS, INC.
Bond Fund
December 31, 2004
Top Holdings
Security % of Net Assets
US Treasury 1.875% due 11/30/05 19.5 %
US Treasury 3.250% due 8/15/07 13.1 %
US Treasury 1.500% due 2/28/05 13.1 %
US Treasury 3.500% due 12/15/09 13.0 %
US Treasury 3.125% due 10/15/08 12.9 %
Fund Performance
Quarter and Annualized Total Return for Periods Ending December 31, 2004
Lipper Lehman
US Gov't Intermediate
Bond Fund Fund Index Gov't Index
4th Quarter -0.38 % 0.72 % 0.06 %
1 Year -0.09 % 3.35 % 2.84 %
3 Year Annualized 2.25 % 4.95 % 4.73 %
5 Year Annualized 4.27 % 6.64 % 6.45 %
Annualized since inception 3.92 % 6.08 % 6.04 %
6/30/99
The Lehman Intermediate Government Index is represents the aggregate market
value of the US Government securities with a maximum maturity of 10 years.
The Lipper US Government mutual fund index is an index of mutual funds
managed using US Government securities. Both are computed on a total return
basis. The chart assumes an initial gross investment of $10,000 on 6/30/1999
(commencement of operations). Returns shown include the reinvestment of
dividends. Past performance does not predict future performance. Investment
return and principal value will fluctuate, so your shares at redemption may be
worth more or less than the original cost.
MANOR INVESTMENT FUNDS, INC.
Bond Fund
Expenses
December 31, 2004
As a shareholder of the Fund, you incur indirect costs, such as management
fees, and other Fund operating expenses. This example is intended to help you
understand your indirect costs, also referred to as "ongoing costs," (in
dollars) of investing in the Fund, and to compare these costs with the ongoing
costs of investing in other mutual funds.
This example is based on an investment of $1,000 invested at the beginning of
the period and held for the entire 6 month period of July 1, 2004 through
December 31, 2004.
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 at the beginning of the period, 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 "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 provides information about hypothetical account
values and hypothetical expense based on the 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 ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder
reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any direst costs, such as wire fees or
low balance fees. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these direct costs
were included, your costs would be higher.
Beginning Ending Expenses Paid
Account Value Account Value During Period *
July 1, 2004 December 31, 2004 January 1, 2004 -
December 31, 2004
Bond Fund
Actual Bond Fund $1,000.00 $999.55 $5.00
Hypothetical 1,000.00 1,019.80 5.20
(5% return before expenses)
* Expenses are equal to the Fund's annualized expense ratio, capped at 1.0%,
which is net of any expenses paid indirectly, multiplied by the average
account value over the period. The ending account value for the Fund in the
table is based on its actual total return for the 6 month period of
July 1, 2004 to December 31, 2004, of -0.09%.
Manor Investment Funds, Inc.
Financial Statements
December 31, 2004
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors
of the Manor Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities
of Manor Fund, Growth Fund and Bond Fund (collectively the "Funds"), the funds
comprising the Manor Investment Funds, Inc., including the
schedules of investments, as of December 31, 2004 and the related statements
of operations, for the year then ended, and the statements of changes in net
assets and the financial highlights for each of the two years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements based on our audit. The financial
highlights for each of the three years in the period then ended, were audited
by other auditors whose report dated January 28, 2003 expressed an unqualified
opinion on this information.
We conducted our audit in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of December 31, 2004,
by correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
positions of the Funds as of December 31, 2004, the results of its operations
for the year then ended, the changes in its net assets and the financial
highlights for the period indicated therein, in conformity with accounting
principles generally accepted in the United States of America.
Abington, Pennsylvania /s/ Sanville & Company
February 1, 2005 Certified Public Accountants
MANOR INVESTMENT FUNDS, Inc.
MANOR FUND
Schedule of Investments
December 31, 2004
Description Shares Market Value
COMMON STOCKS 92.5%
Consumer Staples 6.1%
Pepsico Inc. 1,560 $81,432
Reebok Int'l Ltd. 2,090 91,960
-----------
173,392
-----------
Retail 5.9%
Best Buy Co., Inc. 1,550 92,101
Cardinal Health Inc 1,305 75,886
-----------
167,987
-----------
Medical 12.2%
Johnson & Johnson 1,350 85,617
Manor Care, Inc. 2,590 91,764
Pfizer, Inc. 2,350 63,192
Wellpoint Inc.* 920 105,800
-----------
346,373
-----------
Automobile 1.8%
Paccar, Inc. 630 50,702
-----------
50,702
-----------
Basic Materials 3.3%
Alcan Inc. 1,940 95,138
-----------
95,138
-----------
Industrial Products 2.6%
Deere & Co. 980 72,912
-----------
72,912
-----------
Construction 3.8%
KB Home 1,020 106,488
-----------
106,488
-----------
Multi-Industry 6.0%
General Electric 2,270 82,855
Tyco Int'l Ltd 2,440 87,206
-----------
170,061
-----------
Computer 11.0%
Cisco Systems* 2,350 45,402
Citrix Systems* 2,570 62,862
Hewlett-Packard 1,960 41,101
Intel 2,980 69,702
International Business Machines 950 93,651
-----------
312,718
-----------
Aerospace 2.2%
Boeing 1,230 63,677
-----------
63,677
-----------
Oil 9.4%
Devon Energy 2,440 94,965
Nabors Industries* 1,310 67,190
Occidental Pet. 1,820 106,215
-----------
268,370
-----------
Finance 22.1%
Allstate Corp. 1,830 94,648
Citigroup Inc. 1,969 94,866
Fannie Mae 1,120 79,755
Freddie Mac 1,440 106,128
MBNA Corp. 3,070 86,543
Shurguard Storage 2,060 90,661
Vornado Realty Tr. 1,010 76,891
-----------
629,492
-----------
Utilities 3.0%
Exelon Corp. 1,940 85,496
-----------
85,496
-----------
Transportation 3.1%
Norfolk So. Corp 2,410 87,218
-----------
87,218
-----------
Total Common Stocks
(cost $2,005,326) 2,630,024
INDEX SECURTIES - 5.9%
ishares S&P 500
Barra Value Index 1,340 84,259
SPDR Trust Series 1 690 83,400
-----------
TOTAL INDEX SECURITIES
(Cost $126,877) 167,659
-----------
SHORT-TERM INVESTMENTS - 1.2%
1st Amer. Gov't Obligation Fund 33,144 33,144
-----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $33,144) 33,144
-----------
TOTAL INVESTMENTS - 99.6%
(Cost $2,165,347) 2,830,827
Other Assets less Liabilities -
Net - 0.4% 11,998
-----------
NET ASSETS - 100% $2,842,825
===========
*Non-income producing during the year
The accompanying notes are an integral part of these financial statements.
MANOR INVESTMENT FUNDS, Inc.
GROWTH FUND
Schedule of Investments
December 31, 2004
Description Shares Market Value
Common Stocks - 94.6%
Consumer Staples 8.7%
Coach* 1,990 $112,236
Jones Apparel Group 1,270 46,444
News Corp., Inc.* 5,030 96,576
-----------
255,256
-----------
Consumer Disc. 7.5%
Cendent Corp 3,910 91,416
InterActive Corp* 1,570 43,363
Mohawk Industries* 920 83,950
-----------
218,729
-----------
Retail 12.9%
Bed, Bath, Beyond 1,700 67,711
Ebay, Inc.* 1,080 125,647
Gap, Inc. 4,020 84,902
Staples* 2,890 97,422
-----------
375,682
-----------
Medical 12.7%
Cytyc Corp* 3,230 89,051
Express Scripts* 1,230 94,021
Forest Labs* 940 42,169
Ivax Corp 3,553 56,208
Quest Diagnostics* 950 90,773
-----------
372,222
-----------
Multi-Industry 2.7%
Fortune Brands Inc. 1,030 79,496
-----------
79,496
-----------
Computer 17.9%
Dell Inc. 2,630 110,828
Intel Corp. 3,200 74,848
Microsoft Corp. 3,260 87,107
Qualcomm Inc. 2,640 111,936
Tech Select SPDR 2,400 50,664
Xilinx Inc.* 2,930 86,933
-----------
522,316
-----------
Oil 6.3%
Baker-Hughes Inc. 1,920 81,926
Valero Energy 2,280 103,512
-----------
185,438
-----------
Finance 19.0%
Ace Limited 2,130 91,058
American Int'l Grp 1,160 76,177
Capital One Fin. 1,290 108,631
E Trade Group 6,060 90,597
Golden West Fin 1,560 95,815
Hospitality Prop Tr 2,020 92,920
-----------
555,198
-----------
Utilities 4.2%
TSU Corp. 1,890 122,019
-----------
122,019
-----------
Transportation 2.7%
Fedex 820 80,762
-----------
80,762
-----------
TOTAL COMMON STOCKS
(Cost $2,298,960) 2,767,118
INDEX SECURITIES - 2.5%
i shares S&P 500
Barra Cost Index 1,240 71,610
-----------
TOTAL INDEX SECURITIES (Cost $65,266) 71,610
-----------
SHORT-TERM INVESTMENTS - 2.2%
1st Amer. Gov't Obligation Fund 64,426 64,426
-----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $64,426) 64,426
-----------
TOTAL INVESTMENT - 99.3%
(Cost $2,428,652) 2,903,154
Other Assets less Liabilities - Net - 0.7% 19,846
-----------
NET ASSETS - 100% $2,923,000
===========
*Non-income producing during the year
The accompanying notes are an integral part of these financial statements.
MANOR INVESTMENT FUNDS, Inc.
BOND FUND
Schedule of Investments
December 31, 2004
Face Market
Description Amount Value
U. S. GOVERNMENT BONDS - 94.3%
U.S. Treasury 1.500% Due 02-28-05 $200,000 $199,840
U.S. Treasury 5.875% Due 11-15-05 50,000 51,330
U.S. Treasury 1.875% Due 11-30-05 300,000 297,562
U.S. Treasury 2.250% Due 02-15-07 100,000 98,313
U.S. Treasury 3.250% Due 08-15-07 200,000 200,250
U.S. Treasury 3.125% Due 10-15-08 200,000 197,813
U.S. Treasury 3.500% Due 12-15-09 200,000 199,000
U.S. Treasury 3.875% Due 02-15-13 200,000 197,375
-----------
TOTAL U.S. GOVERNMENT BONDS 1,441,483
(Cost $1,450,549) -----------
SHORT-TERM INVESTMENTS - 2.4%
1st American Treasury Obligation Fund 36,146 36,146
-----------
TOTAL SHORT-TERM INVESTMENTS 36,146
(Cost $36,146) -----------
TOTAL INVESTMENTS - 96.7% 1,477,629
(Cost $1,486,695)
-----------
Other Assets less Liabilities - Net - 3.3% 50,630
-----------
NET ASSETS - 100% $1,528,259
===========
The accompanying notes are an integral part of these financial statements.
MANOR INVESTMENT FUNDS, INC.
Statements of Assets and Liabilities
December 31, 2004
ManorFund GrowthFund BondFund
ASSETS
Investments in Securities, at
value (cost of $2,165,347,
$2,428,652 and $1,486,695,
respectively) $2,830,827 $2,903,154 $1,477,629
Cash and Cash equivalents 10,042 19,304 41,662
Receivables: Dividends 4,606 4,210 - 0 -
Interest 54 29 9,894
Prepaids 601 601 601
------------ ------------ -----------
Total Assets 2,846,130 2,927,298 1,529,786
------------ ------------ -----------
LIABILITIES
Payable to Advisor 2,338 2,419 151
Accrued Expenses 967 1,879 1,376
------------ ------------ ----------
Total Liabilities 3,305 4,298 1,527
------------ ------------ ----------
NET ASSETS $2,842,825 $2,923,000 $1,528,259
============= ============ ==========
NET ASSETS CONSIST OF:
Capital Stock - par value $181 $283 $147
Paid in capital 2,359,768 2,757,236 1,537,690
Undistributed net investment
income 2,765 - 0 - 611
Accumulated net realized
(loss) gain (185,369) (309,021) (1,123)
Net unrealized appreciation
(depreciation) 665,480 474,502 (9,066)
------------ ------------ -----------
NET ASSETS $2,842,825 $2,923,000 $1,528,259
============== ============ ==========
CAPITAL SHARES OUTSTANDING 181,167 283,196 147,311
(10,000,000 authorized
shares $.001 par value) ------------ ------------ ----------
NET ASSET VALUE PER SHARE $15.69 $10.32 $10.37
The accompanying notes are an integral part of these financial statements.
MANOR INVESTMENT FUNDS, INC.
Statements of Operations
December 31, 2004
ManorFund GrowthFund BondFund
Investment Income
Dividends, net of foreign taxes
withheld of $175, $ - , and
$ - , respectively $46,731 $35,293 $ -
Interest 754 1,128 42,400
------------ ----------- ----------
Total Investment Income 47,485 36,421 42,400
------------ ----------- ----------
Expenses
Advisory and Management Fees
(Note 2) 26,616 26,931 8,118
Professional Fees 7,542 7,958 5,955
Custodian Fees 3,982 3,010 2,999
Insurance 875 856 597
Postage and Printing 733 1,576 358
Registration 200 268 480
Taxes 34 150 124
Other 215 - -
------------ ----------- ----------
Total Expenses 40,197 40,749 18,631
------------ ----------- ----------
Reimbursement by Advisor
(Note 2) - - (500)
Net Expenses 40,197 40,749 18,131
------------ ----------- ----------
Net Investment Income (Loss) 7,288 (4,328) 24,269
------------ ----------- ----------
Realized & Unrealized Gain (Loss) on Investments (Note 4)
Net Realized gain (loss) on investments
(61,455) (2,469) (1,123)
Net Change in unrealized
appreciation/(depreciation)
on Investments 401,002 314,571 (28,436)
------------ ----------- -----------
Net realized and unrealized
gain (loss)
on investments 339,547 312,102 (29,559)
------------ ----------- -----------
Net Increase (Decrease)
in Net Assets Resulting
from Operations $346,835 $307,774 $(5,290)
The accompanying notes are an integral part of these financial statements.
MANOR INVESTMENT FUNDS, INC.
Statements of Changes in Net Assets
For the Years Ended December 31, 2004 and 2003
Manor Fund 2004 2003
Increase (Decrease) in Net
Assets from Operations
Net investment income (loss) $7,288 $967
Net realized gain (loss)
on investments (61,455) 3,292
Net change in unrealized
appreciation/(depreciation)
on investments 401,002 579,503
--------- ---------
Net increase/(decrease) in net
assets resulting from
operations 346,835 583,762
Distributions to Shareholders (4,523) -
--------- ---------
Capital Share Transactions
Proceeds from shares sold 201,066 384,827
Reinvestment of distributions 4,523 -
Payments for shares redeemed (319,818) (103,388)
--------- ---------
Net increase (decrease) in
net assets from capital
share transactions (114,229) 281,439
--------- ---------
Total Increase (Decrease)
in Net Assets 28,083 865,201
Net Assets:
Beginning of Year 2,614,742 1,749,541
--------- ---------
End of Year 2,842,825 2,614,742
=========== ==========
Transactions in Shares of the Fund
Sold 14,154 31,318
Issued in reinvestment
of distributions 290 -
Redeemed (22,197) (8,732)
----------- ----------
Net increase (decrease) in
outstanding shares of
the Fund (7,753) 22,586
============ =========
MANOR INVESTMENT FUNDS, INC.
Statements of Changes in Net Assets (con't)
For the Years Ended December 31, 2004 and 2003
The accompanying notes are an integral part of these financial statements.
Growth Fund 2004 2003
Increase (Decrease) in Net
Assets from Operations
Net investment income (loss) $(4,328) $(12,882)
Net realized gain (loss)
on investments (2,469) (58,098)
Net change in unrealized
appreciation/(depreciation)
on investments 314,571 607,361
Net increase/(decrease) in net
assets resulting from
operations 307,774 536,381
Distributions to Shareholders - -
Capital Share Transactions
Proceeds from shares sold 230,662 458,285
Reinvestment of distributions - -
Payments for shares redeemed (171,155) (75,630)
----------- ----------
Net increase (decrease) in
net assets from capital
share transactions 59,507 382,655
---------- ----------
Total Increase (Decrease)
in Net Assets 367,281 919,036
Net Assets:
Beginning of Year 2,555,719 1,636,683
----------- ----------
End of Year $2,923,000 $2,555,719
========== ===========
Transactions in Shares of the Fund
Sold 23,991 55,777
Issued in reinvestment
of distributions - -
Redeemed (18,042) (9,606)
----------- ----------
Net increase (decrease) in
outstanding shares of
the Fund 5,949 46,171
=========== ==========
The accompanying notes are an integral part of these financial statements.
MANOR INVESTMENT FUNDS, INC.
Statements of Changes in Net Assets (con't)
For the Years Ended December 31, 2004 and 2003
Bond Fund 2004 2003
Increase (Decrease) in Net Assets
from Operations
Net investment income (loss) $24,269 $41,863
Net realized gain (loss)
on investments (1,123) 37,918
Net change in unrealized
appreciation/(depreciation0
on investments (28,436) (63,072)
----------- ----------
Net increase/(decrease) in net assets
resulting from operations (5,290) 16,709
----------- ----------
Distributions to Shareholders (28,867) (78,435)
----------- ----------
Capital Share Transactions
Proceeds from shares sold 971,571 161,855
Reinvestment of distributions 28,867 78,435
Payments for shares redeemed (1,207,292) (371,299)
----------- ----------
Net increase (decrease) in net
assets from capital share transactions (206,854) (131,009)
----------- ----------
Total Increase (Decrease) in Net Assets (241,011) (192,735)
Net Assets:
Beginning of Year 1,769,270 1,962,005
----------- ----------
End of Year $1,528,259 $1,769,270
========== ==========
Transactions in Shares of the Fund
Sold 91,541 14,687
Issued in reinvestment
of distributions 2,784 7,414
Redeemed (114,136) (33,746)
---------- ----------
Net increase (decrease) in
outstanding shares of
the Fund (19,811) (11,645)
========== ==========
The accompanying notes are an integral part of these financial statements.
MANOR INVESTMENT FUNDS, INC.
Notes to Financial Statements
December 31, 2004
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. 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 Funds' significant accounting
policies.
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 Fund's 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.
Distributions to Shareholders: The Fund intends 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.
Reclassifications: In accordance with SOP-93-2, the Growth Fund
recorded a reclassification in the capital accounts. As of December 31, 2004,
the Growth Fund has recorded a permanent book/tax difference of $4,328, from
net investment loss to paid-in-capital. This reclassification has no impact
on the net asset value of the Fund and is designed generlly to present
undistributed income and net realized gains on a tax basis, which is
considered to be more informative to shareholders.
Other: The Fund follows industry practice and records 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 Fund's 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 revenues and
expenses during the year. Actual results could differ from these estimates
2. INVESTMENT ADVISORY AGREEMENT
The Fund 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 fiscal year ended December 31, 2004 the Advisor earned advisory
fees from the Manor, Growth and Bond Funds of $26,616, 26,931 and $8,118
respectively.
Under the terms of the agreement if the aggregate expenses of the Funds
are equal to or greater than 1.5% 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. At December 31, 2004 the Advisor reimbursed the Bond
Fund $500 for expenses.
3.INVESTMENT TRANSACTIONS
Investment transactions, excluding short-term investments, for the year
ended December 31, 2004, were as follows:
Manor Fund Growth Fund Bond Fund
Purchases $233,482 $1,074,030 $1,200,875
Proceeds from sales $185,220 $736,786 $1,380,391
4.FEDERAL INCOME TAXES
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.
Manor Fund Growth Fund Bond Fund
Federal tax
cost of investments,
including short term
investments $2,165,347 $2,428,652 $1,486,695
---------- ---------- ----------
Gross tax appreciation
of investments $727,806 $601,252 $1,655
Gross tax depreciation
of investments (62,326) (126,750) (10,721)
---------- ---------- ----------
Net tax appreciation
(depreciation) $665,480 $474,502 $(9,066)
========== ========== ==========
Undistributed ordinary
income $2,765 $ - $611
Undistributed capital
gain income $ - $ - $ -
Accumulated capital
losses $(185,369) $(309,021) $(1,123)
The accumulated capital loss carryovers listed above expire as follows:
Manor Fund Growth Fund Bond Fund
2007 $40,300 $3,668 $ -
2008 $ - $151,266 $ -
2009 $78,780 $45,013 $ -
2010 $4,835 $48,507 $ -
2011 $ - $58,098 $ -
2012 $61,455 $2,469 $1,123
The tax character of distributions paid during the years ended
December 31, 2004 and 2003 were as follows:
Manor Fund Growth Fund Bond Fund
2004 2003 2004 2003 2004 2003
Ordinary Income $4,523 - - - $28,867 $40,658
Long-term capital
gain - - - - $ - $37,777
MANOR INVESTMENT FUNDS, INC.
MANOR FUND
Financial Highlights
For a share of capital stock outstanding throughout the period
For the years ended December 31,
______________________________________________________________________________
2004 2003 2002 2001 2000
______________________________________________________________________________
PER SHARE DATA
______________________________________________________________________________
Net asset value,
beginning of period
$13.84 $10.52 $13.20 $15.76 $17.08
______________________________________________________________________________
Income from investment
operations:
Net investment
income (loss) 0.035 0.00 (0.01) (0.02) (0.06)
Net realized and
Unrealized gain
(loss) on
investments 1.840 3.32 (2.67) (2.54) (1.26)
------- ------- ------- ------- -------
Total from
investment
operations 1.875 3.32 (2.68) (2.56) (1.32)
______________________________________________________________________________
Less distributions (0.025) -- -- -- --
------- ------- ------- ------- -------
Total distributions (0.025) -- -- -- --
______________________________________________________________________________
Net asset value,
end of period $15.69 $13.84 $10.52 $13.20 $15.76
______________________________________________________________________________
Total Return 13.55 % 31.56 % -20.30 % -16.24 % -7.73 %
______________________________________________________________________________
Ratios and Supplemental Data:
Net assets,
end of period
(000) $2,843 $2,615 $1,750 $2,087 $2,569
Ratio of expenses to
average net assets:
before
reimbursements 1.50 % 1.52 % 1.50 % 1.50 % 1.50 %
net of
reimbursements 1.50 % 1.50 % 1.50 % 1.50 % 1.50 %
Ratio of net investment
income/(loss) to
average net assets 0.27 % 0.04 % (0.08)% (0.11)% (0.32)%
Portfolio Turnover
Rate 7.32 % 4.26 % 26.0 % 28.0 % 16.0 %
_______________________________________________________________________________
The accompanying notes are an integral part of these financial statements.
MANOR INVESTMENT FUNDS, INC.
GROWTH FUND
Financial Highlights
For a share of capital stock outstanding throughout the period
For the years ended December 31,
______________________________________________________________________________
2004 2003 2002 2001 2000
______________________________________________________________________________
PER SHARE DATA
______________________________________________________________________________
Net asset value,
beginning of period $9.22 $7.08 $8.95 $9.54 $11.72
______________________________________________________________________________
Income from investment
operations:
Net investment
income (loss) (0.02) (0.05) (0.06) (0.05) (0.05)
Net realized and
unrealized gain
(loss) on
investments 1.12 2.19 (1.81) (0.54) (2.13)
------- ------- ------- ------- -------
Total from investment
Operations 1.10 2.14 (1.87) (0.59) (2.18)
______________________________________________________________________________
Less distributions -- -- -- -- --
Total distributions -- -- -- -- --
______________________________________________________________________________
Net asset value, end
of period $10.32 $9.22 $7.08 $8.95 $9.54
Total Return 11.93 % 30.23 % -20.89 % -6.18 % -18.60 %
Ratios and Supplemental Data:
Net assets,
end of period
(000) $2,923 $2,556 $1,638 $1,522 $1,528
Ratio of expenses
to average net
assets:
Before
Reimbursements 1.50 % 1.52 % 1.50 % 1.50 % 1.52 %
net of
reimbursements 1.50 % 1.50 % 1.50 % 1.50 % 1.52 %
Ratio of net
investment income/
(loss) to
average net assets (0.16)% (0.66)% (0.70)% (0.53)% (0.44)%
Portfolio turnover
Rate 30.42% 6.53% 13.2% 33.6% 16.0%
The accompanying notes are an integral part of these financial statements.
MANOR INVESTMENT FUNDS, INC.
BOND FUND
Financial Highlights
For a share of capital stock outstanding throughout the period
For the years ended December 31,
______________________________________________________________________________
2004 2003 2002 2001 2000
______________________________________________________________________________
PER SHARE DATA
______________________________________________________________________________
Net asset value,
beginning of period $10.58 $10.98 $10.63 $10.39 $9.90
______________________________________________________________________________
Income from Investment
operations:
Net investment
income (loss) 0.17 0.26 0.32 0.43 0.46
Net realized and
nrealized gain
(loss) on
investments (0.18) (0.17) 0.39 0.23 0.47
------- ------- ------- ------- -------
Total from
Investment Operations
(0.01) 0.09 0.71 0.66 0.93
______________________________________________________________________________
Less distributions (0.20) (0.49) (0.36) (0.42) (0.44)
------- ------- ------- ------- -------
Total distributions (0.20) (0.49) (0.36) (0.42) (0.44)
Net asset value,
end of period $10.37 $10.58 $10.98 $10.63 $10.39
Total Return -0.09 % 0.82 % 6.69 % 6.35 % 9.39 %
______________________________________________________________________________
Ratios and Supplemental Data:
Net assets,
end of period
(000) $1,528 $1,769 $1,962 $1,476 $803
Ratio of expenses
to average net
assets:
before
reimbursements 1.05 % 1.04 % 1.00 % 1.00 % 1.00 %
net of
reimbursements 1.00 % 1.00 % 1.00 % 1.00 % 1.00 %
Ratio of net
investment income
to average net
assets 1.37 % 2.30 % 2.96 % 4.01 % 4.45 %
Portfolio
turnover rate 75.57 % 50.61 % 26.3 % 0.0 % 0.0 %
The accompanying notes are an integral part of these financial statements.
MANOR INVESTMENT FUNDS, INC.
ADDITIONAL INFORMATION
Proxy Voting Procedures
The Company's Board of Directors has approved proxy voting procedures forth
guidelines and 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 serves without compensation. Daniel
A. Morris, President of Manor Investment Funds, Inc. ("the Funds"), and
President of Morris Capital Advisors, Inc., 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 to
the Funds.
Change of Auditor
Manor Investment Funds, Inc. ("the Funds") retained a new independent auditing
firm, Sanville & Co., effective December 31, 2003, replacing the previous
auditor, Claude B. Granese, CPA, auditor of the Funds since inception. The
previous audits of the Funds contained no adverse opinion, modification or
qualification. The change was approved by the Audit Committee of the Board of
Directors, and the full Board of Directors. During the two most recent fiscal
years there were no disagreements with the former independent accountant.
Board of Directors Information
Manor Investment Funds, Inc.
December 31, 2004
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
addition 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.
Independent Directors
JAMES MCFADDEN
James McFadden is a Director of the Fund, and Chairman of the Audit
Committee. He serves a one-year term, and stands for re-election annually.
He has been a Director since 9/25/1995.
Mr. McFadden is Vice President of Marketing for MBNA Corporation. He is
not a Director for any other public companies.
JOHN MCGINN
John McGinn is a Director of the Fund, and serves on the Audit Committee.
He serves a one-year term, and stands for re-election annually. He has been
a Director since 11/5/2002.Mr. McGinn is head of Credit Review for Vertex,
Inc. He is not a Director for any other public companies.
FRED MYERS
Fred Myers is a Director of the Fund. He serves a one-year term, and stands
for re-election annually. He has been a Director since 9/25/1995.
Mr. Myers is founding Partner of the accounting firm of Myers & Associates,
CPA's. He is not a Director for any other public companies.
EDWARD SZKUDLAPSKI
Edward Szkudlapski is a Director of the Fund. He serves a one-year term,
and stands for re-election annually. He has been a Director since
5/15/2000. Mr. Szkudlapski is President of Eclipse Business Systems. He
is not a Director for any other public companies.
DONALD THOMPSON
Donald Thompson is a Director of the Fund. He serves a one-year term, and
stands for re-election annually. He has been a Director since 4/20/1999.
Mr. Thompson is a Network Administrator and Healthcare Consultant. He is
not a Director for any other public companies.
ALAN WEINTRAUB
Alan Weintraub is a Director of the Fund. He serves a one-year term, and
stands for re-election annually. He has been a Director since 9/25/1995.
Mr. Weintraub is a Chief Technical Officer with Qumas, Cork, Ireland. He
is not a Director for any other public companies.
Interested Directors
DANIEL A. MORRIS
Daniel A. Morris is a Director of the Fund, and President of Morris Capital
Advisors, Inc., advisor to the Fund. He serves a one-year term, and stands
for re-election annually. He has been a Director since 9/25/1995.
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. As President of the
Fund, he is considered an Interested Director. He is not a Director for
any other public companies.
BRUCE LAVERTY
Bruce Laverty is a Director of the Fund, and serves as legal counsel to
the Fund. He serves a one-year term, and stands for re-election annually.
He has been a Director since 9/25/1995. Mr. Laverty is a Partner of the
law firm Valocchi, Fischer & Laverty legal counsel to the Fund. He is not
a Director for any other public companies.
Manor Investment Funds, Inc.
Fund Office:
15 Chester County Commons
Malvern, PA 19355
610-722-0900 800-787-3334
www.manorfunds.com