Portfolio Update

BlackRock Income Strategies Trust plc

Portfolio update 9 April 2015

Introduction:

The Board of BlackRock Income Strategies Trust plc (BIST) is pleased to
announce that, following the appointment of BlackRock as investment manager,
the Company's assets have been aligned in accordance with the Company's new
investment objective which is, over the medium term (5 to 7 years), to aim to
preserve capital in real terms and to grow the dividend at least in line with
inflation. The Company will target a total portfolio return of UK Consumer
Price Index ("CPI") plus 4 per cent per annum (before ongoing charges) over a 
5 to 7 year cycle.

James Long, Chairman of BIST, commented: "We have been very pleased with the
response from investors since we made these announcements. Demand for shares
has been consistent and we expect that to accelerate into the new tax year for
savers attracted by the Trust’s focus on income and aim to preserve capital 
over the medium term."

A brief report from the Investment Manager is set out below.

Portfolio Structure:

Portfolio Structure as at 31st March 2015                    
                                                             
Equities (Income & Growth)                        52.5%      
Equities (Tactical)                               11.7%      
Fixed Income                                      12.0%      
Alternatives                                       6.4%      
Cash Equivalents                                  17.4%      

Source: BlackRock

Portfolio Strategy:

BlackRock has adopted a multi-asset approach, designed to deliver consistent,
long term income to shareholders. The team has divided the portfolio into
equities (both as core and tactical holdings), global fixed income and
alternatives (which are, at present, all listed or accessed via index
strategies). The residual is held in cash which is used to ensure appropriate
liquidity for future investment plans, as margin for derivatives and to manage
risk.

Equities (Income & Growth):

Approximately 40% of the overall portfolio has been allocated to UK equities
which is actively managed by the BlackRock fundamental active UK equity team.
To complement this allocation, another 12.5% has been allocated to
international equities with a focus on dividend stocks. Regional tilts to Asia
have been added to enhance the long-term growth potential versus a purely
domestic/developed market exposure. To enhance yield and to provide some
protection the team has deployed options strategies across liquid, developed
markets.

Equities (Tactical):

Whilst Greece and the UK elections dominate the headlines, the European economy
is showing some improvement. The team has implemented tactical exposures to UK
domestic stocks and stocks that generate their revenues from the Eurozone. In
addition, with downward pressure on oil prices providing opportunities at the
regional and sector level, they have allocated some exposure to India, and a
basket of `oil beneficiaries', screened for their improved prospects in a world
where oil prices are set to remain relatively low.

Fixed Income:

With yields at low levels across developed markets and little reward for taking
large amounts of credit risk, the portfolio has a small allocation to fixed
income with a bias towards global corporate bonds. Whilst the team appreciates
the long-term diversification benefits of fixed income, they believe that there
are downside risks in a year that could see the Federal Reserve in the US
increase interest rates. To enhance yield the portfolio has a small exposure to
Brazilian bonds.

Alternatives:

The Company's alternative exposure, which is currently less than 10% of the
portfolio, includes listed alternatives with a bias towards those paying a
strong income yield. The portfolio also holds volatility-based strategies that
seek to exploit inefficiencies across derivatives markets.

Gearing and Cash

Gross gearing in the portfolio is 14.1% via the Company's 6.25% Bonds 2031.
Total borrowings (including the Bonds) would not normally be expected to exceed
20 per cent of shareholders' funds. The portfolio is not currently geared
through the use of derivatives but the team will consider increasing exposure
when suitable opportunities arise. Total gearing, including net derivative
exposure, would not normally be expected to result in a net economic equity
exposure in excess of 120 per cent.

The cash breakdown is set out below:

Cash Breakdown                                               
                                                             
FX                                                -0.4%      
Synthetic Cash (Shorts offset)                   -13.7%     
Synthetic Cash (margin)                            1.0%      
Physical Cash                                     30.5%      

Source: BlackRock

The allocation to cash reflects the cautious approach adopted since BlackRock
took over as investment manager.  The recent episode of volatility should
present growth and income opportunities going forward and the portfolio is well
positioned to deploy capital when these opportunities arise.

Outlook:

In summary, the portfolio management team are proceeding with cautious optimism
that income and growth opportunities are available to the multi-asset investor.
2015 is likely to continue to see greater episodes of volatility than previous
years. Interest rate rises, elections, the strong dollar and oil market price
falls will have an impact on the corporate sector and they are monitoring these
developments carefully. Whilst all of these dynamics require more tactical
positioning and careful monitoring, rising volatility and increased divergence
across central bank policy will present cross-asset opportunities.

9 April 2015

Enquiries: Mark Johnson - BlackRock 020 743 2300