Portfolio Update

BLACKROCK INCOME STRATEGIES TRUST PLC
All information is at 29 February 2016 and unaudited.
Performance at month end with net income reinvested
	One	Three	Six		Since
	Month	months	months		27 February 2015*
Share price	-4.6%	-12.9%	-8.9%		-7.2%
Net asset value	-0.6%	-7.3%	-4.1%		-9.4%
Net asset value (before deduction of ongoing charges)	-0.5%	-7.1%	-3.8%		-8.7%
CPI+4%**	0.6%	0.5%	1.5%		4.3%
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):				125.36p
Share price:				119.75p
Discount to Cum Income NAV (debt at fair value):				4.5%
Total assets (including income):				£420.6m
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 finance costs and taxation for the year ended 30 September 2015.
Portfolio analysis (as a % of Gross assets)
Equities						42.8
UK Equities						28.7
Overseas Developed Market Equities						12.0
Emerging Markets Equities						2.1
Volatility Strategies						9.1
Fixed Income						34.7
International Government Bonds UK Government Bonds						11.0 4.1
Investment Grade Corporate Bonds						6.0
High Yield Bonds						13.6
Alternatives						9.7
Listed Alternatives Unlisted Alternatives						6.7 3.0
Commodities						8.0
Cash Equivalents						-4.3
Physical Cash*						4.6
Synthetic Cash (held to back derivative exposures)						-8.9
* Cash of 4.6% is before adjusting for cash held to back gross economic exposures obtained through derivative instruments of approximately -8.9%, leaving the portfolio marginally geared through the use of derivative instruments. The Company also has a 6.25% Bond 2031 in issue, which equates to 16.8% of the Company’s net assets.
Commenting on the markets, Adam Ryan, representing the Investment Manager noted:
Risk appetite remained fragile in February, with global equities falling and traditional safe haven assets such as developed market government bonds and precious metals such as gold outperforming. Concerns about negative interest rates weighed on investor sentiment with Japanese and European stocks underperforming. Performance was negatively impacted by exposure to regional equities and high yield bonds, while the recent addition to gold added value. Whilst our core view remains that economic growth prospects in developed markets should support specific segments of equity markets, we are concerned about some recent weakness in specific economies such as Europe. We remain concerned about China and as such continue to avoid significant allocations to emerging markets. Whilst we proceed with some caution, we believe market volatility provides opportunities for a multi asset approach.
22 March 2016
ENDS
Latest information is available by typing www.blackrock.co.uk/bist on the internet. 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.