PR Newswire
London, December 13
| BLACKROCK INCOME STRATEGIES TRUST PLC | |||||||||||
| All information is at 30 November 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. On 30th November 2016 the Company announced the Board had reached the conclusion of its review. Please refer to the RNS announcement on the London Stock Exchange for full details. | |||||||||||
| Performance at month end with net income reinvested | |||||||||||
| One | Three | Six | One | Since | |||||||
| Month | months | months | year | 27 February | |||||||
| 2015* | |||||||||||
| Share price | 0.2% | -4.0% | -11.5% | -19.5% | -14.2% | ||||||
| Net asset value | -2.1% | -2.5% | -3.3% | -8.4% | -10.5% | ||||||
| Net asset value (before deduction of ongoing charges) | -2.0% | -2.3% | -3.0% | -7.7% | -9.4% | ||||||
| CPI+4%** | 0.5% | 1.5% | 3.0% | 5.1% | 9.0% | ||||||
| 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 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): | 118.95p | ||||||||||
| Share price: | 106.25p | ||||||||||
| Discount to Cum Income NAV (debt at fair value): | 10.7% | ||||||||||
| Total assets (including income): | £396.5m | ||||||||||
| Net yield*: | 6.2% | ||||||||||
| 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 | 52.1 | ||||||||||
| UK Equities | 29.5 | ||||||||||
| Overseas Developed Market Equities | 19.8 | ||||||||||
| Emerging Markets Equities | 2.8 | ||||||||||
| Volatility Strategies | 3.2 | ||||||||||
| Fixed Income | 27.9 | ||||||||||
| International Government Bonds | 5.8 | ||||||||||
| Investment Grade Corporate Bonds | 9.9 | ||||||||||
| High Yield Bonds | 12.2 | ||||||||||
| Alternatives* | 13.6 | ||||||||||
| Listed Alternatives | 10.0 | ||||||||||
| Unlisted Alternatives | 3.6 | ||||||||||
| Commodities | 4.0 | ||||||||||
| Cash Equivalents | (0.8) | ||||||||||
| Physical Cash** | 8.0 | ||||||||||
| Synthetic Cash (held to back derivative exposures) | (8.8) | ||||||||||
| * In addition to the unlisted alternative holdings shown above, the Company has undrawn commitments of £16.8 million in respect of unlisted holdings (5.3% of net assets with debt at fair value). | |||||||||||
| ** Cash of 8.0% is before adjusting for cash held to back gross economic exposures obtained through derivative instruments of approximately 8.8%, hence the portfolio is marginally geared through the use of derivative instruments. The Company also has a 6.25% Bond 2031 in issue, which equates to 17.7% of the Company's net assets. | |||||||||||
| Commenting on the markets, Adam Ryan, representing the Investment Manager noted: | |||||||||||
| In November, performance across a range of asset classes diverged, as investors attempted to come to terms with the unexpected outcome of the US Presidential election and the subsequent rise in bond yields in the United States. There was some dispersion across equity holdings with UK equities declining as the recent rally, driven by Sterling weakness, faded as the currency rebounded. US equities outperformed during the period. In fixed income, the main driver of negative returns came from both corporate bonds and emerging market debt as a result of the meaningful move higher in government bond yields globally. | |||||||||||
| 13 December 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. | |||||||||||
