What does VAF stand for?

These characteristics are listed below: * Data communication * Distributed function * Performance * Heavily used configuration * Transaction rates * On line data entry * Design for end user efficiency * On line update * Complex processing * Usable in other applications * Installation ease * Operational ease * Multiple sites * Facilitate change Once the TDI value has been derived, it can be used in the following formula to arrive at the value adjustment factor or VAF.

Exit penalties called market value adjustment factors (MVAFs) are being applied on a range of plans, so there are extra costs for anyone wanting an early exit.

But savers who are unhappy with the cuts are prevented from moving their money elsewhere by a penalty known as a market value adjustment factor (MVA).

He adds that if a big group stakeholder scheme moves all of its members out of a with-profits fund in one go to find better performance elsewhere, the fund will have to charge an exit penalty - called a market value adjustment factor - to protect other with-profits customers' savings.