The money weighted return measures investment performance and includes the size and timing of contributions and withdrawals, aggregated across all accounts selected for inclusion in the report.
In simple terms each contribution and withdrawal from the client’s policy(s) is viewed as a separate component and the account’s performance is then weighted by the timing and size of contributions and withdrawals.
It can be used to measure progress towards a specific investment goal; however, it is not applicable for benchmarking against other comparable assets which have not been adjusted to take into account model cashflows.