Time-Weighted Return
Also called: TWR, time weighted rate of return
Time-weighted return measures performance while stripping out the effect of deposits and withdrawals, so it reflects the manager's decisions rather than the client's cash flows. It's the standard for reporting fund and manager performance, and it's what GIPS requires. It deliberately answers a different question from money-weighted return, which is why a fund can post a strong time-weighted number while its average investor lost money.