From New PRIIPs to Arrival Price transaction costs: impact on KID disclosures for UCITS funds

The Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation requires UCITS funds to use arrival prices to calculate implicit transaction costs instead of New PRIIPs (NP) by the end of 2024. While most global asset managers have already adopted the Arrival Price (AP) standard, many market participants have not yet transitioned from NP to AP, which has significant data management and technology infrastructure implications.

This article presents a statistical analysis of the impact of migrating from the NP to the AP methodology for compiling transaction costs, by assessing the spread differences between the two methodologies across various asset classes and investment strategies.