Portfolio Update

BLACKROCK INCOME STRATEGIES TRUST PLC
All information is at 31 July 2016 and unaudited.
Important Information On 1st August 2016, the Company announced that the Board of BlackRock Income Strategies Trust plc and the Investment Manager, BlackRock, would undertake a review of the investment objective and policy. Therefore the Company’s objective as stated may be subject to change.
Performance at month end with net income reinvested
	One	Three		Six		One				Since
	Month	months		months		year				27 February 2015*
Share price	3.7%	-0.5%		-2.4%		-8.3%				-5.1%
Net asset value	2.6%	-0.3%		-0.1%		-7.2%				-8.9%
Net asset value (before deduction of ongoing charges)	2.7%	-0.1%		0.2%		-6.5%				-7.9%
CPI+4%**	0.3%	1.4%		3.1%		4.6%				6.8%
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 not 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.
At month end
Net asset value incl. Income (debt at fair value):							122.73p
Share price:							119.25p
Discount to Cum Income NAV (debt at fair value):							2.8%
Total assets (including income):							£407.7m
Net yield*:							5.6%
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									38.4
UK Equities									25.7
Overseas Developed Market Equities									11.9
Emerging Markets Equities									0.8
Volatility Strategies									5.1
Fixed Income									25.1
International Government Bonds									7.0
Investment Grade Corporate Bonds									6.2
High Yield Bonds									11.9
Alternatives									12.5
Listed Alternatives									9.4
Unlisted Alternatives									3.1
Commodities									7.6
Cash Equivalents									11.3
Physical Cash*									3.4
Synthetic Cash (held to back derivative exposures)									7.9
* Cash of 11.3% is before adjusting for cash held to back gross economic exposures obtained through derivative instruments of approximately 7.9%, hence the portfolio is currently ungeared through the use of derivative instruments. The Company also has a 6.25% Bond 2031 in issue, which equates to 17.1% of the Company’s net assets.
Commenting on the markets, Adam Ryan, representing the Investment Manager noted:
In July, market volatility fell, and risk assets gained as the immediate uncertainty caused by Brexit began to fade. Instead, attention shifted towards to the possibility of more accommodative global monetary policy. The Company’s NAV increased by 2.6%, helped predominantly by UK equities and overseas equity holdings. The portfolio was also helped by exposure to gold.
22 August 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.