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Recently, various efforts from both industry and academia are being performed on specifying distributed mobility management (DMM). One of the early and promising network-based DMM proposals is dynamic mobility anchoring (DMA). This paper carries out a performance analysis on DMA in terms of mobility costs and handover performance, comparing it with proxy mobile IPv6 (PMIPv6). For the cost analysis, we consider signaling, processing, data packet delivery, and tunneling costs. For the handover analysis, we consider handover latency, handover failure probability, and handover packet loss as performance metrics. The impacts of several parameters on the mobility costs and handover performance are investigated. The results show that DMA outperforms PMIPv6 significantly in optimizing the network resources consumption as well as the mobility management performance.