Portfolio Update

BLACKROCK INCOME STRATEGIES TRUST PLC
All information is at 31 January 2016 and unaudited.
Performance at month end with net income reinvested
	One	Three	Six		Since
	Month	months	months		27 February 2015*
Share price	-7.0%	-7.9%	-6.1%		-2.8%
Net asset value	-5.8%	-5.9%	-7.2%		-8.9%
Net asset value (before deduction of ongoing charges)	-5.7%	-5.7%	-6.9%		-8.3%
CPI+4%**	-0.5%	0.2%	1.5%		3.7%
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):				126.09p
Share price:				125.50p
Discount to Cum Income NAV (debt at fair value):				0.5%
Total assets (including income):				£422.3m
Net yield*:				5.2%
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						49.3
UK Equities						36.0
Overseas Developed Market Equities						12.3
Emerging Markets Equities						1.0
Volatility Strategies						8.3
Fixed Income						25.0
International Government Bonds						6.2
Investment Grade Corporate Bonds						5.7
High Yield Bonds						13.1
Alternatives						9.3
Listed Alternatives Unlisted Alternatives						6.5 2.8
Commodities						3.2
Cash Equivalents						4.9
Physical Cash*						13.6
Synthetic Cash (held to back derivative exposures)						-8.7
* Cash of 13.6% is before adjusting for cash held to back gross economic exposures obtained through derivative instruments of approximately 8.7%. The Company also has a 6.25% Bond 2031 in issue, which equates to 16.4% of the Company’s net assets.
Commenting on the markets, Adam Ryan, representing the Investment Manager noted:
The Company's NAV per share delivered a negative return in January. Equities were the key detractor in a period that saw a global sell-off across world markets. Exposure to corporate bonds was also a detractor, as credit underperformed government bonds over the period. In January, markets were awash with uncertainty driven by the ongoing oil price decline and the slowdown in China. Our core view remains that economic growth prospects in developed markets should support specific segments of equity markets. We remain concerned about China given signs that their economy continues to slow and as such continue to avoid significant allocations to emerging markets.
23 February 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.