Portfolio Update

BLACKROCK INCOME STRATEGIES TRUST PLC
All information is at 31 December 2015 and unaudited.
Performance at month end with net income reinvested
	One	Three	Six		Since
	Month	months	months		27 February 2015*
Share price	-1.8%	4.8%	3.3%		4.6%
Net asset value	-0.9%	4.9%	0.9%		-3.2%
Net asset value (before deduction of ongoing charges)	-0.8%	5.1%	1.2%		-2.6%
CPI+4%**	0.5%	1.2%	2.2%		4.2%
Index data for background context on market movements
	One	Three	Six		Since
	Month	months	months		27 February 2015*
FTSE All-Share Index***	-1.3%	3.9%	-2.0%		-5.1%
Sources: BlackRock, Office of National Statistics
* BlackRock took over the investment management of the Company and the Company’s investment policy and objective were changed with effect from 27 February 2015.  Consequently, performance data for the period preceding this is no longer relevant to the Company’s current mandate and has not been provided.
** The Company’s investment objective 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 targets 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. The percentage calculations given for CPI+4% above are for information purposes.
*** The performance data provided above for the FTSE All-Share Index is given for information purposes to provide background context of how UK markets have operated over the relevant periods.  All performance data is on a sterling basis with net income reinvested.
At month end
Net asset value incl. Income (debt at fair value):				133.88p
Share price:				135.00p
Premium to Cum Income NAV (debt at fair value):				0.8%
Total assets (including income):				£440.9m
Net yield*:				4.8%
2015 Ongoing charges ratio**:				0.68%
* yield calculations are based on dividends announced in the last 12 months as at the date of release of this announcement.
** Calculated as a percentage of average net assets and using expenses excluding interest costs for the year ended 30 September 2015.
Portfolio analysis (as a % of Gross assets)
Equities						56.3
UK Equities						36.0
Overseas Developed Market Equities						16.7
Emerging Markets Equities						3.6
Volatility Strategies						12.0
Fixed Income						22.4
International Government Bonds						4.3
Investment Grade Corporate Bonds						5.4
High Yield Bonds						12.7
Alternatives						6.2
Listed Alternatives Unlisted Alternatives						5.6 0.6
Cash Equivalents						3.1
Physical Cash*						15.7
Synthetic Cash (held to back derivative exposures)						-12.6
* Cash of 15.7% is before adjusting for cash held to back gross economic exposures obtained through derivative instruments of approximately 12.6%. The Company also has a 6.25% Bond 2031 in issue, which equates to 15.6% of the Company’s net assets.
Commenting on the markets, Adam Ryan, representing the Investment Manager noted:
The Company delivered a negative return in December as both equity and bond holdings detracted from performance.  Gyrations across commodities and energy markets, concerns over China and diverging monetary policies all contributed to an uptick in uncertainty across global markets.  In such an environment, hedging strategies were a positive contributor to returns but failed to mitigate losses from equities and corporate bonds.  We expect the US will continue its current growth path driven by ongoing improvements in the labour market and domestic sectors remaining healthy.  We also expect market volatility to normalise back towards historical levels, although we remain concerned about the potential for Chinese growth to weigh on the broader emerging markets sector.
21 January 2016
ENDS
Latest information is available by typing www.blackrock.co.uk/bist on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal). Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on BlackRock’s website (or any other website) is incorporated into, or forms part of, this announcement.