Portfolio Update

BLACKROCK INCOME STRATEGIES TRUST PLC
All information is at 31 May 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	1.6%	4.5%		-9.0%		-6.5%				-3.0%
Net asset value	1.3%	2.1%		-5.3%		-7.1%				-7.5%
Net asset value (before deduction of ongoing charges)	1.3%	2.3%		-5.0%		-6.5%				-6.6%
CPI+4%**	0.5%	1.6%		2.1%		4.3%				5.9%
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):							126.33p
Share price:							123.50p
Discount to Cum Income NAV (debt at fair value):							2.2%
Total assets (including income):							£419.6m
Net yield*:							5.4%
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									41.0
UK Equities									29.3
Overseas Developed Market Equities									12.4
Emerging Markets Equities									(0.7)
Volatility Strategies									8.2
Fixed Income									25.5
International Government Bonds									8.4
Investment Grade Corporate Bonds									6.0
High Yield Bonds									11.1
Alternatives									11.7
Listed Alternatives									8.8
Unlisted Alternatives									2.9
Commodities									5.2
Cash Equivalents									8.4
Physical Cash*									12.4
Synthetic Cash (held to back derivative exposures)									-4.0
* Cash of 12.4% is before adjusting for cash held to back gross economic exposures obtained through derivative instruments of approximately 4.0%, 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 16.6% of the Company’s net assets.
Commenting on the markets, Adam Ryan, representing the Investment Manager noted:
The Company’s performance was positive in May and was driven by our allocation to developed market equities and currencies; however emerging market and diversifying assets hurt returns.  Within developed market equities, our allocation to UK equities was the largest contributor while exposure to a broad mix of global equities also delivered positive performance at the portfolio level.  Within currencies, a stronger US dollar was a boost to overall portfolio returns.  Within our allocation to diversifying assets, gold was a notable detractor.  We continue to adopt a global multi asset approach, investing across equity, fixed income and alternative investments.
23 June 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.