FYI: When analyzing the performance of money managers, the industry standard assumes a single investment is made at the start of period and that no additional deposits or withdrawals are made. Cash flows in or out of an investment are assumed to be outside of the control of a portfolio manager, and therefore shouldn’t be used to judge the effectiveness of a portfolio manager’s investment skills. This methodology is known as time weighted returns.
Regards,
Ted
http://www.etftrends.com/2015/11/is-your-portfolio-suffering-from-withdrawals/
