Performance evaluation is an integral part of the investment management decision process because it provides feedback on the effects of investment activities and the decisions on the performance of portfolios. This information is useful to internal stakeholders, such as portfolio managers, senior management, risk managers, compliance professionals, and marketing and sales staff, as well as external stakeholders, such as asset owners, investment consultants, and regulators. The information provided by performance evaluation helps evaluate progress toward achieving asset owner goals and consistency with the investment mandate. Chapter from the CFA Institute CIPM program.