Key Takeaways
- • Ares Management Corporation's 6.75% Convertible Preferred Series B shares (ARES.PRB) are held across five major ETFs, with the iShares Preferred and Income Securities ETF (PFF) maintaining the largest position at $84.3 million (0.60% weight).
- • The five ETFs tracking ARES.PRB shares collectively demonstrate a three-year return range of +22.76% to +69.55%, with the State Street SPDR Bloomberg Convertible Securities ETF (CWB) delivering the strongest performance at +69.55% over the period.
- • Expense ratios across ARES.PRB-holding ETFs range from 0.23% to 2.11%, with passive strategies commanding lower costs (0.23%–0.45%) compared to active management approaches (2.11%).
- • BlackRock's iShares PFF ETF, the dominant vehicle for ARES.PRB exposure, operates with $14 billion in assets under management and a 0.45% expense ratio, positioning it as the most capital-efficient entry point for institutional investors seeking exposure to Ares' preferred equity.
- • Current market pricing for ARES.PRB stands at $41.80 USD, with holdings distributed across preferred and income-focused strategies reflecting institutional demand for Ares' fixed-income-adjacent equity structure.
Summary
Ares Management Corporation's 6.75% Convertible Preferred Series B shares represent a meaningful allocation within the preferred equity ETF ecosystem, currently distributed across five institutional-grade funds. The iShares Preferred and Income Securities ETF (PFF), managed by BlackRock, dominates this exposure with a $84.3 million position representing 0.60% of the fund's total holdings. The fund's $14 billion asset base and 0.45% expense ratio provide significant scale and cost efficiency for institutional investors seeking diversified preferred equity exposure that includes the Ares preferred position.
Supporting vehicles include the Virtus InfraCap U.S. Preferred Stock ETF (PFFA), which maintains a $23.47 million allocation (0.98% weight) through an active management strategy at a 2.11% expense ratio, and the Global X U.S. Preferred ETF (PFFD), a passive alternative with $21.46 million in Ares preferred shares and a notably low 0.23% expense ratio. The State Street SPDR Bloomberg Convertible Securities ETF (CWB) and Franklin Income Focus ETF (INCM) round out the primary holdings with $18.6 million and $7.95 million positions, respectively.
Performance metrics across these vehicles demonstrate solid three-year returns despite market volatility. The CWB convertible-focused strategy led returns at +69.55%, while the PFFD global preferred strategy delivered +22.76% over the same period. The PFF flagship vehicle generated +28.13% three-year returns, positioning Ares' preferred shares within broader strategies that have maintained steady value creation through inflationary and interest-rate volatile periods.
Current market pricing for ARES.PRB reflects institutional valuation at $41.80 USD, with positioning across both active and passive vehicles suggesting diversified institutional demand. The distribution pattern—concentrated in passive vehicles but supported by active allocation—indicates that Ares' 6.75% convertible preferred represents a core holding within the preferred equity allocation framework rather than a satellite position. For institutional investors evaluating preferred equity exposure with an allocation to alternative asset managers, the Ares preferred position offers embedded yield, convertibility features, and access to one of the sector's largest diversified credit platforms.
Supporting vehicles include the Virtus InfraCap U.S. Preferred Stock ETF (PFFA), which maintains a $23.47 million allocation (0.98% weight) through an active management strategy at a 2.11% expense ratio, and the Global X U.S. Preferred ETF (PFFD), a passive alternative with $21.46 million in Ares preferred shares and a notably low 0.23% expense ratio. The State Street SPDR Bloomberg Convertible Securities ETF (CWB) and Franklin Income Focus ETF (INCM) round out the primary holdings with $18.6 million and $7.95 million positions, respectively.
Performance metrics across these vehicles demonstrate solid three-year returns despite market volatility. The CWB convertible-focused strategy led returns at +69.55%, while the PFFD global preferred strategy delivered +22.76% over the same period. The PFF flagship vehicle generated +28.13% three-year returns, positioning Ares' preferred shares within broader strategies that have maintained steady value creation through inflationary and interest-rate volatile periods.
Current market pricing for ARES.PRB reflects institutional valuation at $41.80 USD, with positioning across both active and passive vehicles suggesting diversified institutional demand. The distribution pattern—concentrated in passive vehicles but supported by active allocation—indicates that Ares' 6.75% convertible preferred represents a core holding within the preferred equity allocation framework rather than a satellite position. For institutional investors evaluating preferred equity exposure with an allocation to alternative asset managers, the Ares preferred position offers embedded yield, convertibility features, and access to one of the sector's largest diversified credit platforms.
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