Portfolio Update

BLACKROCK INCOME STRATEGIES TRUST PLC
All information is at 30 September 2016 and unaudited.
Important Information   On 28th September, and further to the announcement dated 1st August 2016 of a review into the Company's investment objective and policy, the Board announced that it would undertake a strategic review and invite fund management groups, including BlackRock, to present proposals to the Board. Therefore certain information about the Company as set out below 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	0.3%	-2.1%		-5.6%		-10.2%				-10.3%
Net asset value	-0.1%	3.2%		0.2%		-0.7%				-8.4%
Net asset value (before deduction of ongoing charges)	0.1%	3.4%		0.6%		0.0%				-7.3%
CPI+4%**	0.5%	1.5%		2.9%		4.9%				8.0%
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):							121.85p
Share price:							111.00p
Discount to Cum Income NAV (debt at fair value):							8.9%
Total assets (including income):							£422.2m
Net yield*:							6.0%
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									45.6
UK Equities									29.9
Overseas Developed Market Equities									13.0
Emerging Markets Equities									2.7
Volatility Strategies*									5.4
Fixed Income									41.5
International Government Bonds									15.9
Investment Grade Corporate Bonds									13.5
High Yield Bonds									12.0
Alternatives									13.0
Listed Alternatives									9.8
Unlisted Alternatives									3.2
Commodities									7.6
Cash and Cash Equivalents**									(13.0)
* Custom strategies that aim either to hedge an increase in stock market volatility or to exploit inefficiencies in expectations of volatility. ** Comprised of negative cash balances of 1.0% and cash held to back derivative exposure of 12.0%.  The Company also has a 6.25% Bond 2031 in issue, which equates to 17.2% of the Company’s net assets.
Commenting on the markets, Adam Ryan, representing the Investment Manager noted:
In September, the relative calm of August passed, and markets began to focus on the fallout from Brexit as well as the possibility of interest rate hikes in the US. In addition, the prospect of an oil production cut from OPEC helped energy stocks to rise as the price of oil increased. Meanwhile, concerns around European banks weighed on financials globally, and emerging market equities continued to outperform developed market equities. The Company posted a small loss in NAV due to the portfolio’s exposure to corporate bonds, currency positioning and European financials. Losses were mitigated by positive returns from the UK equity portfolio. We made a small reduction to equities over the period but elsewhere, there were few significant changes in the portfolio.
25 October 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.