This announcement has been corrected to reflect a change to the wording of the
footnote to the Portfolio Analysis section.
|BLACKROCK INCOME STRATEGIES TRUST PLC|
|All information is at 31 August 2016 and unaudited.
On 1st August 2016, the Company announced that the Board of BlackRock Income Strategies Trust plc and the Investment Manager, BlackRock, would undertake a review of the investment objective and policy. Therefore the Company’s objective as stated may be subject to change.
Performance at month end with net income reinvested
|Net asset value||0.8%||-0.8%||1.3%||-2.9%||-8.2%|
|Net asset value (before deduction of ongoing charges)||
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 not 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):||123.67p|
|Discount to Cum Income NAV (debt at fair value):||9.2%|
|Total assets (including income):||£412.7m|
|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)
|Overseas Developed Market Equities||14.8|
|Emerging Markets Equities||2.7|
|International Government Bonds||15.4|
|Investment Grade Corporate Bonds||13.2|
|High Yield Bonds||11.7|
|Synthetic Cash (held to back derivative exposures)||(12.2)|
|* Physical cash of 1.9% is before adjusting for cash held to back gross economic exposures obtained through derivative instruments of approximately 12.2%, hence the portfolio is currently geared through the use of derivative instruments. The Company also has a 6.25% Bond 2031 in issue, which equates to 16.9% of the Company’s net assets.
Commenting on the markets, Adam Ryan, representing the Investment Manager noted:
In August, market volatility remained low which proved supportive for riskier assets. This benefitted holdings in the UK and broader developed market equities. Exposure to corporate bonds was also additive to performance as the spread between government bonds and corporate bonds narrowed. Meanwhile, the price of more traditional safe haven assets such as gold and developed market government bonds broadly fell, which impacted our holdings in precious metals and, to a smaller extent, inflation-linked US Treasuries.
27 September 2016
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.