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.Over time, they expect investors will reward stocks that produce superior future earnings and near term earnings growth relative to their price. Their investment process identifies these stocks through a combination of their Valuation and Earnings Forecast Models. Valuation Model: The model values each company's individual operating businesses, based on assets, earnings and sales by business segment, in comparison with similar business operations of other companies.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 thefollowing 12 months. The S&P 500 index fell by 16.8% in October. US equities remained extremely weak as the attention shifted from financial crisis to economic recession.The financial sector received a boost as the government announced a $250bn package for the recapitalisation of several banks and a sovereign guarantee for new bank debt. This eased some of the fears of total financial collapse but the focus shifted to the ailing economy. Economic news remained weak and recession seemed inevitable for most investors, leading to panic selling across the board.The housing market remained moribund,with the latest house price figures showing a 16.6% drop in August.