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No matter how good the fund manager is, the higher the fees the fund charges, the better the fund must perform to be just average As you ll recall, a fund that charges 02 percent fees need only beat the market by 02 percent Compare this to a fund with a total expense ratio of 3 percent, which of course needs to outpace the market by 3 percentage points just to break even with the indexes Again, this is why a 2002 study by Financial Research Corp, a nancial services research rm in Boston, determined that fees are one of the few consistent predictors of mutual fund outperformance (Figure 13-15) The study concluded: There is signi cant evidence that funds with [the lowest] total expense ratios do deliver above-average future performance across nearly all time periods Low expenses are a good to signi cant predictor of the future performance of US stock funds, according to the study s ndings They are an exceptional predictor of government bond fund performance, and a moderate or good predictor of better-than-average corporate bond fund performance A separate study in 2004 conducted by Standard & Poor s agreed with many of these conclusions It determined that funds charging lower-than-average fees outperformed more expensive funds in eight out of nine investment styles over one-, three-, ve-, and 10-year time periods (Figure 13-16) Standard & Poor s concluded: It is important for both investors and nancial advisors to keep fund expenses in the forefront of their analysis when assembling a portfolio When doing so, however, it is necessary to compare apples with apples Certain funds tend to be more expensive to run than others Researching obscure stocks in faraway regions in the emerging markets, for example, is likely to be much more expensive for a mutual fund manager and his or her team of analysts than managing blue chip US equities Here are the average expenses for mutual funds in various categories are listed in Figure 13-7 Think of fees this way: There are myriad things we don t know as mutual fund investors, including which types of funds and which particular funds.



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Navigation rules have an optional, single from-view-id, which is where the navigation originates As a peer of the from-view-id are 1 to N navigation-case entries A navigationcase statement has the following child elements: <from-action> An action method that returns a custom String value such as Success or Failure, which is usually used to indicate if the action method executed successfully This element along with from-outcome is needed for dynamic navigation where the output of the action method specified in the fromaction element is compared to the from-outcome value If a match occurs, the corresponding to-view-id location will be navigated to <from-outcome> A String value that is passed to the NavigationHandler where it is compared with either the output of the corresponding from-action or the action attribute of a UI component with navigation support such as commandLink or commandButton <to-view-id> The page to which the user will be navigated upon a successful match of the from-action and from-outcome To get a better feel for building various navigation rules, we ll take a look at a few examples starting with a simple, static navigation





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This first example shows how to build a simple navigation rule that just links one page to another Before we begin, it s important to point out that although it s tempting to simply use an HTML <a href> tag in static navigation cases, you ll find that standardizing all navigation with JSF navigation rules (no matter how simple) will definitely make the application more manageable in the long run as application size and complexity increases

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Consider two pages, page1jsp and page2jsp In order for page1jsp to link to a page, you will have to add a UICommand UI component onto page1jsp Normally, the JSP developer does not need to know the underlying UI component, because the standard JSF HTML JSP tag library provides either the <h:commandButton> or <h:commandLink>, which renders either a button or link with the same UICommand UI component Consider the following commandButton example:

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Fig 13-15 Percentage of Lowest-Fee Funds That Generated Better Than Average Returns This study divided each fund category into 10 segments, based on their total expense ratios In most cases, funds in each of these ve categories that ranked in the lowest decile in fees produced better-than-average returns

The key thing to notice is the action attribute For this static navigation, this is the navigation from-outcome value that will map to page2jsp in the navigation rule Here is an equivalent example using commandLink:

Notice the commandLink requires a child tag to produce an output similar to how the <a href> tag also requires a body Now that an action of the static value "gotopage2" has been defined in both the button and link components on the page, the next step is to provide a navigation rule that maps this from-outcome value to /page2jsp Here is the navigation rule required to do this:

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<navigation-rule> <from-view-id>/page1jsp</from-view-id> <navigation-case> <from-outcome>gotopage2</from-outcome> <to-view-id>/page2jsp</to-view-id> </navigation-case> </navigation-rule>

Notice that for this example a from-action is not needed; instead, the from-outcome is compared to the action attribute of the navigation UI component (commandLink or commandButton) And that s it At runtime, clicking on the button or link triggers a navigation to page2 jsp This is a case of a simple static navigation where nothing will change the navigation at runtime Let s now take a look at a simple dynamic navigation rule where a condition will be checked by a Java method and the navigation destination will be dynamically derived

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