Portfolio Update

BLACKROCK INCOME STRATEGIES TRUST PLC
All information is at 30 September 2015 and unaudited.
Performance at month end with net income reinvested
	One	Three	Six		Since
	Month	months	months		27 February 2015*
Share price	-1.9%	-1.4%	-0.6%		-0.2%
Net asset value	-2.3%	-3.8%	-7.8%		-7.7%
Net asset value (before deduction of ongoing charges)	-2.3%	-3.7%	-7.6%		-7.4%
CPI+4%**	0.2%	1.0%	2.4%		3.1%
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.
At month end
Net asset value incl. Income (debt at fair value):				129.30p
Share price:				130.50p
Premium to Cum Income NAV (debt at fair value):				0.9%
Total assets (including income):				£432.1m
Net yield*:				5.2%
2014 Ongoing charges ratio**:				0.65%
* 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 2014.
Portfolio analysis					% of Gross Assets
Equities					57.9
UK Equities					42.9
Overseas Developed Market Equities					12.2
Emerging Markets Equities					2.8
Volatility Strategies					11.8
Fixed Income					25.3
International Government Bonds					7.9
Investment Grade Corporate Bonds					5.5
High Yield Bonds					11.9
Alternatives					4.0
Listed Alternatives					4.0
Cash Equivalents					1.0
Physical Cash*					25.4
Synthetic Cash (held to back derivative exposures)					-24.4
* Cash of 25.4% is before adjusting for cash held to back gross economic exposures obtained through derivative instruments of approximately 24.4%. The Company also has a 6.25% Bond 2031 in issue, which equates to 16.1% of the Company’s net assets.
Commenting on the markets, Adam Ryan, representing the Investment Manager noted:
In September, financial markets continued to react negatively to slowing growth in emerging markets which, in turn, generated greater speculation around the outlook for global growth. Market volatility remained heightened throughout the month. Equities and credit fell over the period negatively impacting performance, but there was some resilience from government bond markets which helped our positions in overseas fixed income. The US Federal Reserve elected to leave rates on hold, acknowledging recent economic and financial market conditions. We have moved into a period of heightened volatility, but we remain constructive on the long-term prospects for equities and credit from both a growth and income perspective. We remain concerned around the Chinese growth outlook, and the impact on emerging market assets.
22 October 2015
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.