BLACKROCK INCOME STRATEGIES TRUST PLC - Portfolio Update

PR Newswire
London, September 25

BLACKROCK INCOME STRATEGIES TRUST PLC
All information is at 31 August 2015 and unaudited.
Performance at month end with net income reinvested
	One Month	Three months	Six months		Since 27 February 2015*
Share price	-1.6%	-1.9%	1.3%		1.8%
Net asset value	-3.8%	-5.2%	-5.6%		-5.5%
Net asset value (before deduction of ongoing changes)	-3.8%	-5.1%	-5.4%		-5.3%
CPI+4%**	0.6%	1.1%	2.8%		2.8%
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 27February 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):				134.06p
Share price:				134.75p
Premium to Cum Income NAV (debt at fair value):				0.5%
Total assets (including income):				£444.0m
Net yield*:				5.0%
2014 Ongoing charges ratio**:				0.65%
* 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 2014.
Portfolio analysis (as a % of portfolio assets)
Equities						62.6
UK Equities						43.8
Overseas Developed Market Equities						15.5
Emerging Markets Equities						3.3
Volatility Strategies						10.5
Fixed Income						24.3
International Government Bonds						6.9
Investment Grade Corporate Bonds						5.2
High Yield Bonds						12.2
Alternatives						4.0
Listed Alternatives						4.0
Cash Equivalents						-1.4
Physical Cash*						21.1
Synthetic Cash (held to back derivative exposures)						-22.5
* Cash of 21.1% is before adjusting for cash held to back gross economic exposures obtained through derivative instruments of approximately 22.5%, 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 15.6% of the Company's net assets.
Commenting on the markets, Adam Ryan, representing the Investment Manager noted:
During the month of August market volatility increased significantly amidst concerns around Chinese economic growth and policy. Equities, credit, and government bonds all fell during the period. There were few hiding places during the period, with equities experiencing the largest declines. Fixed income positions also experienced losses but to a lesser extent, and our equity hedges were profitable. While we see increased volatility across asset classes in the near-term, depressed yields and demographic factors should translate into continued demand for income yielding assets over the long-term. We continue to focus maintaining income and growth strategies across multiple asset classes.
25 September 2015
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.