PVD of Cash Flows

Does anyone have a shorter and easier way to explain Present Value of Distributions of Cash Flows? I am finding it hard to explain and present.

Not sure how short you’re looking for, but here is what I have in my notes: PVD -Measures proportion of index’s total duration attributable to cash flows falling within selected periods -Describes how total duration is distributed across maturity -If manager can mimic PVD, portfolio will have same sensitivities as benchmark Once you know all that, the actual steps taken are pretty intuitive.

thx honey