The investment process used on this Fund means that a large number of stocks are held in the Fund, and activity in these stocks tends to be incremental rather than buying or selling significant holdings. AXA Rosenberg believe that the economic value of any company is driven largely by its ability to generate future earnings and its current investment value is a combination of the price of both this future earnings potential and the company's near-term earnings growth.Earnings Forecast Model: This model combines numerous fundamental variables related to earnings change with variables that capture investor enthusiasm for companies. Together, these data are used to predict earnings changes over the following 12 months. The FTSE Pacific ex Japan index fell by 15.8%. Asian markets performed badly, with significant falls of more than 20% across the region.The impact of the financial crisis and impending recessions in western economies on the Asian region led investors to sell Asian holdings aggressively. The Korean market suffered as the currency fell sharply. The credit crisis has forced local banks to scramble to raise their dollar reserves. It was also revealed that growth in the South Korean economy had slowed to a four year low.