Portfolio Update

BLACKROCK INCOME STRATEGIES TRUST PLC
All information is at 30 June 2016 and unaudited.
Performance at month end with net income reinvested
	One	Three		Six		One				Since
	Month	months		months		year				27 February
										2015*
Share price	-5.6%	-3.6%		-12.5%		-9.6%				-8.4%
Net asset value	-4.0%	-2.9%		-8.3%		-7.5%				-11.2%
Net asset value (before deduction of ongoing charges)	-3.9%	-2.7%		-8.0%		-6.8%				-10.3%
CPI+4%**	0.5%	1.4%		2.3%		4.4%				6.5%
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):							119.62p
Share price:							115.00p
Discount to Cum Income NAV (debt at fair value):							3.9%
Total assets (including income):							£403.6m
Net yield*:							5.8%
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									37.5
UK Equities									24.6
Overseas Developed Market Equities									12.1
Emerging Markets Equities									0.8
Volatility Strategies									5.1
Fixed Income									26.7
International Government Bonds									8.3
Investment Grade Corporate Bonds									6.2
High Yield Bonds									12.2
Alternatives									12.0
Listed Alternatives									9.0
Unlisted Alternatives									3.0
Commodities									7.4
Cash Equivalents									11.3
Physical Cash*									8.7
Synthetic Cash (held to back derivative exposures)									2.6
* Cash of 8.7% is before adjusting for cash held to back gross economic exposures obtained through derivative instruments of approximately 2.6%, 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 17.3% of the Company’s net assets.
Commenting on the markets, Adam Ryan, representing the Investment Manager noted:
The Company’s NAV experienced negative returns in June with losses coming from UK equities and a number of our medium term income and growth strategies. Within equities, exposure to income focussed UK stocks negatively affected performance. The performance of the UK equity portfolio was impacted by the outperformance of large international exporters (notably in the mining and energy sectors) vs. sectors such as consumer services. In addition, our FTSE 100 hedging strategies detracted as the index staged a late rally towards the end of the month. On a mark-to-market basis, the Company’s Bond has detracted from returns given the significant fall in gilt yields which have responded to a flight to quality in June. Positive contributions came from our exposure to gold, interest rates and FTSE 250 Index hedging strategies. We remain cautious on equities and have retained our hedges, and expect our longer-term physical UK equity holdings to be a key contributor to dividend growth over the medium term. As the uncertainty continues, we expect tactical opportunities to present themselves across a range of asset classes.
19 July 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.