BlackRock Inc Strat Portfolio Update

 
TIDMBIST 
 
BLACKROCK INCOME STRATEGIES TRUST PLC 
 
All information is at 30 September 2015 and unaudited. 
 
 
Performance at month end with net income reinvested 
 
                                One       Three          Six                 Since 
 
                              Month      months       months     27 February 2015* 
 
Share price                   -1.9%       -1.4%        -0.6%                 -0.2% 
 
Net asset value               -2.3%       -3.8%        -7.8%                 -7.7% 
 
Net asset value (before 
deduction of ongoing          -2.3%       -3.7%        -7.6%                 -7.4% 
charges) 
 
CPI+4%**                       0.2%        1.0%         2.4%                  3.1% 
 
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):                         129.30p 
 
Share price:                                                               130.50p 
 
Premium to Cum Income NAV (debt at fair value):                               0.9% 
 
Total assets (including income):                                           GBP432.1m 
 
Net yield*:                                                                   5.2% 
 
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                                               % of Gross Assets 
 
 
Equities                                                                      57.9 
 
UK Equities                                                                   42.9 
 
Overseas Developed Market Equities                                            12.2 
 
Emerging Markets Equities                                                      2.8 
 
Volatility Strategies                                                         11.8 
 
Fixed Income                                                                  25.3 
 
International Government Bonds                                                 7.9 
 
Investment Grade Corporate Bonds                                               5.5 
 
High Yield Bonds                                                              11.9 
 
Alternatives                                                                   4.0 
 
Listed Alternatives                                                            4.0 
 
Cash Equivalents                                                               1.0 
 
Physical Cash*                                                                25.4 
 
Synthetic Cash (held to back derivative exposures)                           -24.4 
 
 
* Cash of 25.4% is before adjusting for cash held to back gross economic 
exposures obtained through derivative instruments of approximately 24.4%. The 
Company also has a 6.25% Bond 2031 in issue, which equates to 16.1% of the 
Company's net assets. 
 
 
Commenting on the markets, Adam Ryan, representing the Investment Manager 
noted: 
 
 
In September, financial markets continued to react negatively to slowing growth 
in emerging markets which, in turn, generated greater speculation around the 
outlook for global growth. Market volatility remained heightened throughout the 
month. Equities and credit fell over the period negatively impacting 
performance, but there was some resilience from government bond markets which 
helped our positions in overseas fixed income. The US Federal Reserve elected 
to leave rates on hold, acknowledging recent economic and financial market 
conditions. We have moved into a period of heightened volatility, but we remain 
constructive on the long-term prospects for equities and credit from both a 
growth and income perspective. We remain concerned around the Chinese growth 
outlook, and the impact on emerging market assets. 
 
22 October 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. 
 
 
 
END 
 

(END) Dow Jones Newswires

October 23, 2015 05:13 ET (09:13 GMT)