Performance, as in the case of financial assets, indicate the returns the asset delivers to the holder during a specific time period. Generally performance is expressed as a % gain or loss per year. Multi year performance can be expressed in either cumulative terms or as annualized return. This is analogous to the the return on investment.
Performance is also used to express the skills of a fund manager or a financial advisor. In these cases, the performance of the managed fund or assets serves as a proxy for the performance of the said manager or advisor.
Financial performance is not constant over time