UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-05739

 

Name of Fund: BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock MuniEnhanced Fund, Inc., 55 East 52nd Street, New York, NY 10055.

 

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

 

Date of fiscal year end: 04/30/2010

 

Date of reporting period: 01/31/2010

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments January 31, 2010 (Unaudited)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 1.6%

 

 

 

 

 

 

 

Alabama Public School & College
Authority, Refunding RB, Series A,
5.00%, 5/01/29

 

$

900

 

$

928,197

 

County of Jefferson Alabama, RB,
Series A, 5.50%, 1/01/22

 

 

2,750

 

 

2,337,940

 

County of Jefferson Alabama, RB,
Series A, 4.75%, 1/01/25

 

 

2,200

 

 

1,711,798

 

 

 

 

 

 

 

 

 

 

 

 

4,977,935

 

Alaska — 0.4%

 

 

 

 

 

 

 

Borough of Matanuska-Susitna Alaska,
RB, Goose Creek Correctional Center
(AGC), 6.00%, 9/01/28

 

 

1,200

 

 

1,376,148

 

Arizona — 1.5%

 

 

 

 

 

 

 

State of Arizona, COP, Department of
Administration, Series A (AGM),
5.00%, 10/01/27

 

 

3,250

 

 

3,317,275

 

State of Arizona, COP, Department of
Administration, Series A (AGM),
5.25%, 10/01/28

 

 

1,000

 

 

1,033,640

 

State of Arizona, COP, Department of
Administration, Series A (AGM),
5.00%, 10/01/29

 

 

400

 

 

403,948

 

 

 

 

 

 

 

 

 

 

 

 

4,754,863

 

California — 23.6%

 

 

 

 

 

 

 

Alameda Corridor Transportation
Authority, Refunding RB, CAB,
Subordinate Lien, Series A (AMBAC),
5.64%, 10/01/24 (a)

 

 

10,185

 

 

8,043,502

 

Alameda Corridor Transportation
Authority, Refunding RB, CAB,
Subordinate Lien, Series A (AMBAC),
5.57%, 10/01/25 (a)

 

 

6,000

 

 

4,697,580

 

Anaheim Public Financing Authority
California, RB, Senior, Public
Improvements Project, Series A
(AGM), 6.00%, 9/01/24

 

 

5,000

 

 

5,655,350

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

Antelope Valley Community College
District, GO, Election 2004, Series B
(NPFGC), 5.25%, 8/01/39

 

$

600

 

$

606,300

 

Arcadia Unified School District
California, GO, CAB, Election 2006,
Series A (AGM), 4.96%, 8/01/39 (b)

 

 

1,600

 

 

213,376

 

Cabrillo Community College District
California, GO, CAB, Election 2004,
Series B (NPFGC), 5.18%,
8/01/37 (b)

 

 

2,400

 

 

358,440

 

California Health Facilities Financing
Authority, Refunding RB, St. Joseph
Health System, Series A, 5.75%,
7/01/39

 

 

550

 

 

566,500

 

California State University, RB,
Systemwide, Series A, 5.00%,
11/01/35

 

 

2,600

 

 

2,555,436

 

Chino Valley Unified School District, GO,
Election of 2002, Series C (NPFGC),
5.25%, 8/01/30

 

 

850

 

 

863,379

 

City of Redding California, COP,
Refunding, Series A (AGM), 5.00%,
6/01/30

 

 

1,720

 

 

1,736,237

 

Fresno Unified School District California,
GO, Election of 2001, Series E (AGM),
5.00%, 8/01/30

 

 

900

 

 

914,985

 

Los Angeles Department of Water &
Power, RB, Series C (NPFGC), 5.00%,
7/01/29

 

 

5,160

 

 

5,312,272

 

Metropolitan Water District of Southern
California, RB, Series B-1 (NPFGC),
5.00%, 10/01/29

 

 

2,965

 

 

3,054,958

 

Metropolitan Water District of Southern
California, RB, Series B-1 (NPFGC),
5.00%, 10/01/36

 

 

1,655

 

 

1,682,622

 

Norco Redevelopment Agency
California, Tax Allocation Bonds,
Refunding, Project Area No. 1
(NPFGC), 5.13%, 3/01/30

 

 

5,000

 

 

4,709,700

 

Orange County Sanitation District, COP
(NPFGC), 5.00%, 2/01/33

 

 

7,455

 

 

7,606,113

 

Orange County Sanitation District, COP,
Series B (AGM), 5.00%, 2/01/30

 

 

1,500

 

 

1,570,320

 

 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

ARB

Airport Revenue Bonds

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

EDC

Economic Development Corp.

ERB

Education Revenue Bonds

FGIC

Financial Guaranty Insurance Co.

GO

General Obligation Bonds

HFA

Housing Finance Agency

IDA

Industrial Development Authority

ISD

Independent School District

NPFGC

National Public Finance Guaranty Corp.

PSF-GTD

Permanent School Fund Guaranteed

RB

Revenue Bonds

S/F

Single-Family

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2010

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Orange County Sanitation District, COP,
Series B (AGM), 5.00%, 2/01/31

 

$

900

 

$

937,206

 

Poway Redevelopment Agency
California, Tax Allocation Bonds,
Refunding, Paguay Redevelopment
Project (AMBAC), 5.13%, 6/15/33

 

 

1,750

 

 

1,546,737

 

Sacramento Unified School District
California, GO, Election of 2002
(NPFGC), 5.00%, 7/01/30

 

 

4,150

 

 

4,167,430

 

San Mateo County Community College
District, GO, CAB, Election 2001,
Series C (NPFGC), 6.12%,
9/01/30 (b)

 

 

12,740

 

 

3,681,096

 

State of California, GO, 5.13%, 6/01/27

 

 

20

 

 

19,716

 

State of California, GO, 5.13%, 6/01/31

 

 

60

 

 

55,977

 

Stockton Public Financing Authority
California, RB, Parking & Capital
Projects, 5.13%, 9/01/30

 

 

6,145

 

 

6,150,899

 

Ventura County Community College
District, GO, Election 2002, Series B
(NPFGC), 5.00%, 8/01/30

 

 

2,325

 

 

2,375,452

 

West Basin Municipal Water District
California, COP, Refunding, Series B
(AGC), 5.00%, 8/01/30

 

 

5,035

 

 

5,073,165

 

 

 

 

 

 

 

 

 

 

 

 

74,154,748

 

Colorado — 0.7%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Covenant Retirement Communities,
Series A (Radian), 5.50%, 12/01/27

 

 

1,200

 

 

1,100,304

 

Colorado Health Facilities Authority, RB,
Covenant Retirement Communities,
Series A (Radian), 5.50%, 12/01/33

 

 

675

 

 

595,175

 

Colorado Housing & Finance Authority,
Refunding RB, S/F Program, Senior
Series A-2, AMT, 7.50%, 4/01/31

 

 

415

 

 

444,133

 

 

 

 

 

 

 

 

 

 

 

 

2,139,612

 

District of Columbia — 2.8%

 

 

 

 

 

 

 

District of Columbia, RB, Series B-1
(NPFGC), 5.00%, 2/01/31

 

 

9,600

 

 

8,663,520

 

Florida — 11.3%

 

 

 

 

 

 

 

Broward County School Board Florida,
COP, Series A (AGM), 5.25%, 7/01/33

 

 

1,600

 

 

1,634,880

 

City of Tallahassee Florida, RB (NPFGC),
5.00%, 10/01/32

 

 

4,000

 

 

4,058,280

 

Collier County School Board, COP (AGM),
5.00%, 2/15/23

 

 

3,000

 

 

3,092,310

 

County of Broward Florida, RB, Series A,
5.25%, 10/01/34

 

 

850

 

 

876,817

 

County of Duval Florida, COP, Master
Lease Program (AGM), 5.00%,
7/01/33

 

 

3,000

 

 

2,987,580

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

County of Miami-Dade Florida, GO,
Building Better Communities Program,
Series B-1, 5.75%, 7/01/33

 

$

1,400

 

$

1,502,214

 

County of Miami-Dade Florida,
Refunding RB, Miami International
Airport, AMT (AGC), 5.00%, 10/01/40

 

 

9,900

 

 

9,379,854

 

County of Orange Florida, Refunding RB,
Series B (NPFGC), 5.13%, 1/01/32

 

 

4,200

 

 

4,225,284

 

Hillsborough County Aviation Authority
Florida, RB, Series A, AMT (AGC),
5.38%, 10/01/33

 

 

1,750

 

 

1,764,945

 

Miami-Dade County School Board, COP,
Refunding, Series B (AGC), 5.25%,
5/01/31

 

 

1,800

 

 

1,863,216

 

Miami-Dade County School Board, COP,
Refunding, Series B (AGC), 5.00%,
5/01/33

 

 

2,000

 

 

2.020,060

 

Sarasota County Public Hospital District,
RB, Sarasota Memorial Hospital
Project, Series A, 5.63%, 7/01/39

 

 

275

 

 

279,510

 

South Florida Water Management
District, COP (AGC), 5.00%, 10/01/22

 

 

2,000

 

 

2,131,920

 

 

 

 

 

 

 

 

 

 

 

 

35,816,870

 

Georgia — 4.0%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB
(AGM), 5.25%, 10/01/39

 

 

2,300

 

 

2,377,694

 

Gwinnett County Hospital Authority,
Refunding RB, Gwinnett Hospital
System, Series D (AGM), 5.50%,
7/01/41

 

 

825

 

 

827,970

 

Municipal Electric Authority of Georgia,
Refunding RB, Series EE (AMBAC),
7.00%, 1/01/25

 

 

7,475

 

 

9,312,953

 

 

 

 

 

 

 

 

 

 

 

 

12,518,617

 

Illinois — 18.6%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO,
Refunding, Chicago School Reform
Board, Series A (NPFGC), 5.50%,
12/01/26

 

 

1,000

 

 

1,108,350

 

City of Chicago Illinois, ARB, General,
Third Lien, Series B-2, AMT (AGM),
5.75%, 1/01/23

 

 

5,670

 

 

5,847,981

 

City of Chicago Illinois, ARB, General,
Third Lien, Series B-2, AMT (Syncora),
6.00%, 1/01/29

 

 

2,300

 

 

2,373,462

 

City of Chicago Illinois, GO, Refunding,
Series A (AGM), 5.00%, 1/01/25

 

 

500

 

 

524,775

 

City of Chicago Illinois, RB, Series A
(AGC), 5.00%, 1/01/38

 

 

2,000

 

 

2,031,300

 

City of Chicago Illinois, Refunding RB,
General Airport, Third Lien, Series A,
AMT (NPFGC), 5.75%, 1/01/21

 

 

9,000

 

 

9,226,260

 

 

 

 

2

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

County of Cook Illinois, GO, Capital
Improvement, Series C (AMBAC),
5.50%, 11/15/26 (c)

 

$

2,460

 

$

2,773,724

 

Illinois Municipal Electric Agency, RB,
Series A (NPFGC), 5.25%, 2/01/35

 

 

1,000

 

 

1,012,850

 

Illinois Sports Facilities Authority, RB,
State Tax Supported (AMBAC), 5.57%,
6/15/30 (a)

 

 

20,120

 

 

19,990,629

 

Regional Transportation Authority, RB,
Series A (AMBAC), 7.20%, 11/01/20

 

 

10,115

 

 

12,438,820

 

State of Illinois, RB, Build Illinois,
Series B, 5.25%, 6/15/34

 

 

1,275

 

 

1,313,964

 

 

 

 

 

 

 

 

 

 

 

 

58,642,115

 

Indiana — 0.1%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB,
Indiana Municipal Power Agency,
Series B, 5.75%, 1/01/34

 

 

400

 

 

411,120

 

Iowa — 1.3%

 

 

 

 

 

 

 

Iowa Finance Authority, RB, Series A
(AGC), 5.63%, 8/15/37

 

 

3,850

 

 

3,980,554

 

Louisiana — 1.8%

 

 

 

 

 

 

 

Louisiana Public Facilities Authority,
Refunding RB, Christus Health,
Series B (AGC), 6.50%, 7/01/30

 

 

1,250

 

 

1,395,963

 

Louisiana State Transportation
Authority, RB, CAB, Senior Lien,
Louisiana 1 Project, Series B
(AMBAC), 5.31%, 12/01/27 (b)

 

 

1,235

 

 

485,083

 

Rapides Finance Authority Louisiana,
RB, Cleco Power LLC Project, AMT
(AMBAC), 4.70%, 11/01/36

 

 

2,450

 

 

2,030,928

 

State of Louisiana, RB, Series A
(NPFGC), 5.00%, 5/01/35

 

 

1,740

 

 

1,747,847

 

 

 

 

 

 

 

 

 

 

 

 

5,659,821

 

Maryland — 0.4%

 

 

 

 

 

 

 

Maryland Community Development
Administration, Refunding RB,
Residential, Series A, AMT, 5.75%,
9/01/39

 

 

1,240

 

 

1,306,997

 

Massachusetts — 4.7%

 

 

 

 

 

 

 

Massachusetts HFA, RB, Rental
Mortgage, Series F, AMT (AGM),
5.25%, 1/01/46

 

 

5,300

 

 

5,133,421

 

Massachusetts HFA, RB, S/F Housing,
Series 128, AMT (AGM), 4.80%,
12/01/27

 

 

1,600

 

 

1,535,056

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Massachusetts (concluded)

 

 

 

 

 

 

 

Massachusetts HFA, Refunding RB,
Rental Housing, Series A, AMT (AGM),
5.15%, 7/01/26

 

$

3,000

 

$

3,030,480

 

Massachusetts Water Resources
Authority, Refunding RB, General,
Series A (NPFGC), 5.00%, 8/01/34

 

 

2,700

 

 

2,779,974

 

Massachusetts Water Resources
Authority, Refunding RB, General,
Series B (AGM), 5.25%, 8/01/28

 

 

2,000

 

 

2,307,580

 

 

 

 

 

 

 

 

 

 

 

 

14,786,511

 

Michigan — 5.0%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Second
Lien, Series B (AGM), 6.25%,
7/01/36

 

 

400

 

 

433,124

 

City of Detroit Michigan, RB, Second
Lien, Series B (AGM), 7.00%,
7/01/36

 

 

200

 

 

228,460

 

City of Detroit Michigan, RB, Senior Lien,
Series B (AGM), 7.50%, 7/01/33

 

 

700

 

 

830,760

 

City of Detroit Michigan, RB, System,
Second Lien, Series B (NPFGC),
5.00%, 7/01/36

 

 

3,600

 

 

3,244,284

 

City of Detroit Michigan, Refunding RB,
Second Lien, Series E (BHAC), 5.75%,
7/01/31

 

 

2,500

 

 

2,666,400

 

Michigan Higher Education Student
Loan Authority, Refunding RB,
Student Loan, Series XVII-G, AMT
(AMBAC), 5.20%, 9/01/20

 

 

1,500

 

 

1,500,645

 

Michigan Strategic Fund, RB, Detroit
Edison Co. Project, Series C, AMT
(Syncora), 5.45%, 12/15/32

 

 

4,300

 

 

4,048,149

 

Michigan Strategic Fund, Refunding RB,
Detroit Edison Co., Pollution, Series C,
AMT (Syncora), 5.65%, 9/01/29

 

 

1,410

 

 

1,404,952

 

Michigan Strategic Fund, Refunding RB,
Detroit Edison Co., Project, Series A,
AMT (Syncora), 5.50%, 6/01/30

 

 

1,300

 

 

1,241,721

 

 

 

 

 

 

 

 

 

 

 

 

15,598,495

 

Minnesota — 0.9%

 

 

 

 

 

 

 

City of Minneapolis, Minnesota,
Refunding RB, Fairview Health
Services, Series B (AGC), 6.50%,
11/15/38

 

 

2,500

 

 

2,777,125

 

Nevada — 5.3%

 

 

 

 

 

 

 

City of Carson City Nevada, RB, Carson-
Tahoe Hospital Project, Series A
(Radian), 5.50%, 9/01/33

 

 

3,100

 

 

2,811,390

 

City of Las Vegas Nevada, GO, Limited
Tax, Performing Arts Center, 6.00%,
4/01/34

 

 

850

 

 

932,832

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2010

3

 

 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Nevada (concluded)

 

 

 

 

 

 

 

County of Clark, Nevada, RB, Las Vegas-
McCarran International Airport,
Series A (AGC), 5.25%, 7/01/39 (d)

 

$

3,800

 

$

3,782,900

 

County of Clark Nevada, RB, Southwest
Gas Corp. Project, Series A, AMT
(FGIC), 4.75%, 9/01/36

 

 

75

 

 

62,357

 

County of Clark Nevada, RB, Southwest
Gas Corp. Project, Series D, AMT
(NPFGC), 5.25%, 3/01/38

 

 

1,300

 

 

1,179,724

 

County of Clark Nevada, RB,
Subordinate Lien, Series A-2 (NPFGC),
5.00%, 7/01/30

 

 

1,500

 

 

1,517,130

 

County of Clark Nevada, RB,
Subordinate Lien, Series A-2 (NPFGC),
5.00%, 7/01/36

 

 

3,200

 

 

3,167,456

 

County of Clark Nevada, RB, System,
Subordinate Lien, Series C (AGM),
5.00%, 7/01/26

 

 

1,475

 

 

1,513,969

 

Las Vegas Valley Water District, GO,
Refunding, Series A (NPFGC), 5.00%,
6/01/24

 

 

1,600

 

 

1,653,600

 

 

 

 

 

 

 

 

 

 

 

 

16,621,358

 

New Jersey — 9.6%

 

 

 

 

 

 

 

New Jersey EDA, RB, Cigarette Tax
(Radian), 5.50%, 6/15/31

 

 

600

 

 

558,624

 

New Jersey EDA, RB, Cigarette Tax
(Radian), 5.75%, 6/15/34

 

 

305

 

 

289,668

 

New Jersey EDA, RB, Motor Vehicle
Surcharge, Series A (NPFGC), 5.25%,
7/01/31

 

 

9,325

 

 

9,331,901

 

New Jersey EDA, RB, Motor Vehicle
Surcharge, Series A (NPFGC), 5.25%,
7/01/33

 

 

7,800

 

 

7,913,256

 

New Jersey EDA, RB, School Facilities
Construction, Series O, 5.13%,
3/01/28

 

 

3,000

 

 

3,116,880

 

New Jersey EDA, RB, School Facilities
Construction, Series Z (AGC), 6.00%,
12/15/34

 

 

2,000

 

 

2,238,420

 

New Jersey EDA, Refunding RB, School
Facilities Construction, Series N-1
(AGM), 5.50%, 9/01/25

 

 

5,000

 

 

5,781,450

 

New Jersey EDA, Refunding RB, School
Facilities Construction, Series N-1
(NPFGC), 5.50%, 9/01/28

 

 

815

 

 

913,582

 

 

 

 

 

 

 

 

 

 

 

 

30,143,781

 

New York — 3.7%

 

 

 

 

 

 

 

Erie County Industrial Development
Agency, RB, City School District of
Buffalo Project, Series A (AGM),
5.75%, 5/01/28

 

 

1,500

 

 

1,631,295

 

Metropolitan Transportation Authority,
RB, Series 2008C, 6.50%, 11/15/28

 

 

4,000

 

 

4,566,040

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New York (concluded)

 

 

 

 

 

 

 

New York City Transitional Finance
Authority, RB, Fiscal 2009, Series S-4,
5.50%, 1/15/34

 

$

2,750

 

$

2,948,825

 

New York State Dormitory Authority,
ERB, Series B, 5.75%, 3/15/36

 

 

1,200

 

 

1,334,940

 

Triborough Bridge & Tunnel Authority,
RB, General, Series A-2, 5.25%,
11/15/34

 

 

1,300

 

 

1,377,831

 

 

 

 

 

 

 

 

 

 

 

 

11,858,931

 

Oregon — 0.2%

 

 

 

 

 

 

 

Medford Hospitalital Facilities Authority,
RB, Asante Health Sytem, Sereis A
(AGC), 5.00%, 8/01/40 (d)

 

 

575

 

 

560,067

 

Pennsylvania — 1.2%

 

 

 

 

 

 

 

Pennsylvania HFA, Refunding RB,
Series 99A, AMT, 5.25%, 10/01/32

 

 

1,500

 

 

1,503,225

 

Pennsylvania Turnpike Commission, RB,
CAB, Sub-Series E, 6.48%,
12/01/38 (a)

 

 

3,000

 

 

1,894,170

 

Philadelphia School District, GO,
Series E, 6.00%, 9/01/38

 

 

400

 

 

426,196

 

 

 

 

 

 

 

 

 

 

 

 

3,823,591

 

Puerto Rico — 1.5%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, First Sub-Series A, 6.38%,
8/01/39

 

 

3,200

 

 

3,405,120

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, CAB, Series A (NPFGC),
5.71%, 8/01/41 (b)

 

 

8,500

 

 

1,263,440

 

 

 

 

 

 

 

 

 

 

 

 

4,668,560

 

Rhode Island — 3.4%

 

 

 

 

 

 

 

Providence Public Building Authority
Rhode Island, RB, Series A (AGM),
6.25%, 12/15/10 (c)

 

 

4,345

 

 

4,617,562

 

Rhode Island EDC, RB, Series B (FGIC),
6.50%, 7/01/10 (c)

 

 

3,355

 

 

3,475,478

 

Rhode Island Health & Educational
Building Corp., Refunding RB, Public
Schools Financing Program, Series E
(AGC), 6.00%, 5/15/29

 

 

2,375

 

 

2,593,927

 

 

 

 

 

 

 

 

 

 

 

 

10,686,967

 

South Carolina — 1.1%

 

 

 

 

 

 

 

Berkeley County School District, RB,
Securing Assets For Education,
5.13%, 12/01/30

 

 

3,275

 

 

3,340,042

 

 

 

 

4

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Tennessee — 1.8%

 

 

 

 

 

 

 

Knox County Health Educational &
Housing Facilities Board Tennessee,
Refunding RB, Covenant Health,
Series A, 5.04%, 1/01/38 (b)

 

$

600

 

$

100,188

 

Metropolitan Government of Nashville &
Davidson County Health &
Educational Facilities Board,
Refunding RB, Vanderbilt University,
Series B, 5.50%, 10/01/29

 

 

5,000

 

 

5,634,850

 

 

 

 

 

 

 

 

 

 

 

 

5,735,038

 

Texas — 14.7%

 

 

 

 

 

 

 

City of Houston Texas, Refunding RB,
Combined, First Lien, Series A (AGC),
6.00%, 11/15/35

 

 

2,100

 

 

2,371,005

 

City of Houston Texas, Refunding RB,
Combined, First Lien, Series A (AGC),
5.38%, 11/15/38

 

 

1,350

 

 

1,424,128

 

Dallas-Fort Worth International Airport
Facilities Improvement Corp., RB,
Series A, AMT (NPFGC), 5.50%,
11/01/33

 

 

13,000

 

 

13,038,090

 

Lewisville ISD Texas, GO, Refunding,
CAB, School Building,(NPFGC), 4.67%,
8/15/24 (b)

 

 

4,475

 

 

2,228,595

 

Mansfield ISD Texas, GO, School
Building (PSF-GTD), 5.00%, 2/15/33

 

 

1,725

 

 

1,811,578

 

Matagorda County Navigation District
No. 1 Texas, Refunding RB, Central
Power & Light Co. Project, AMT
(NPFGC), 5.20%, 5/01/30

 

 

2,400

 

 

2,253,960

 

North Harris County Regional Water
Authority, RB, Senior Lien (NPFGC),
5.13%, 12/15/35

 

 

2,895

 

 

2,935,327

 

North Texas Tollway Authority, RB,
System, First Tier, Series K-1 (AGC),
5.75%, 1/01/38

 

 

3,800

 

 

4,053,650

 

North Texas Tollway Authority, RB,
System, First Tier, Series K-2 (AGC),
6.00%, 1/01/38

 

 

4,015

 

 

4,379,442

 

North Texas Tollway Authority,
Refunding RB, First Tier, Series A,
6.00%, 1/01/28

 

 

2,795

 

 

2,971,337

 

North Texas Tollway Authority,
Refunding RB, System, First Tier
(NPFGC), 5.75%, 1/01/40

 

 

1,600

 

 

1,632,528

 

Texas State Turnpike Authority, RB, First
Tier, Series A (AMBAC), 5.50%,
8/15/39

 

 

7,150

 

 

7,098,162

 

 

 

 

 

 

 

 

 

 

 

 

46,197,802

 

Utah — 1.6%

 

 

 

 

 

 

 

Utah Transit Authority, RB, Series A
(AGM), 5.00%, 6/15/36

 

 

5,000

 

 

5,197,400

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Vermont — 0.9%

 

 

 

 

 

 

 

Vermont HFA, RB, Series 27, AMT
(AGM), 4.85%, 11/01/32

 

$

3,000

 

$

2,856,780

 

Wisconsin — 1.0%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB, Ascension
Health Credit Group (AGM), 5.00%,
11/15/31

 

 

1,200

 

 

1,210,920

 

Wisconsin Housing & EDA, Refunding
RB, Series E, AMT, 5.50%, 9/01/38

 

 

2,000

 

 

2,053,680

 

 

 

 

 

 

 

 

 

 

 

 

3,264,600

 

Total Municipal Bonds – 124.7%

 

 

 

 

 

392,519,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (e)

 

 

 

 

 

 

 

Arizona — 0.4%

 

 

 

 

 

 

 

Phoenix Civic Improvement Corporation,
RB, Junior Lien, Series A, 5.00%,
7/01/34

 

 

1,200

 

 

1,240,032

 

California — 3.0%

 

 

 

 

 

 

 

Anaheim Public Financing Authority
California, RB, Electric System
Distribution Facilities, Series A (AGM),
5.00%, 10/01/31

 

 

959

 

 

960,382

 

Los Angeles Community College District,
California, GO, Election 2001,
Series A (AGM), 5.00%, 8/01/32

 

 

2,500

 

 

2,526,475

 

San Diego Community College District
California, GO, Election of 2002,
5.25%, 8/01/33

 

 

404

 

 

412,934

 

San Diego County Water Authority, COP,
Refunding, Series 2008-A (AGM),
5.00%, 5/01/33

 

 

2,810

 

 

2,853,471

 

Tamalpais Union High School District
California, GO, Election 2001 (AGM),
5.00%, 8/01/28

 

 

1,605

 

 

1,624,019

 

University of California, RB, Series O,
5.75%, 5/15/34

 

 

840

 

 

934,492

 

 

 

 

 

 

 

 

 

 

 

 

9,311,773

 

Colorado — 0.3%

 

 

 

 

 

 

 

Colorado Health Facilities Authority,
Refunding RB, Catholic Healthcare,
Series A, 5.50%, 7/01/34

 

 

900

 

 

948,424

 

District of Columbia — 1.0%

 

 

 

 

 

 

 

District of Columbia, RB, Series A,
5.50%, 12/01/30

 

 

1,005

 

 

1,116,193

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2010

5


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (e)

 

Par
(000)

 

Value

 

District of Columbia (concluded)

 

 

 

 

 

 

 

District of Columbia Water & Sewer
Authority, RB, Series A, 6.00%,
10/01/35

 

$

1,770

 

$

1,976,565

 

 

 

 

 

 

 

 

 

 

 

 

3,092,758

 

Florida — 6.3%

 

 

 

 

 

 

 

City of Tallahassee. Florida, RB (NPFGC),
5.00%, 10/01/37

 

 

7,500

 

 

7,508,925

 

Florida State Board of Education, GO,
Series D, 5.00%, 6/01/37

 

 

1,349

 

 

1,382,609

 

Miami-Dade County School Board, COP,
Refunding, Series B (AGC), 5.00%,
5/01/33

 

 

10,000

 

 

10,100,300

 

 

 

 

 

 

 

 

 

 

 

 

18,991,834

 

Georgia — 5.6%

 

 

 

 

 

 

 

City of Atlanta Georgia, RB, General,
Series B (AGM), 5.25%, 1/01/33

 

 

17,356

 

 

17,690,986

 

Illinois — 1.3%

 

 

 

 

 

 

 

Illinois State Toll Highway Authority, RB,
Series B, 5.50%, 1/01/33

 

 

1,880

 

 

2,008,886

 

Metropolitan Pier & Exposition Authority,
Illinois, Refunding RB, Mccormick
Place Expansion, Series B (NPFGC),
5.75%, 6/15/23

 

 

1,999

 

 

2,162,647

 

 

 

 

 

 

 

 

 

 

 

 

4,171,533

 

Louisiana — 1.7%

 

 

 

 

 

 

 

State of Louisiana, RB, Series A (AGM),
5.00%, 5/01/36

 

 

5,400

 

 

5,504,112

 

Massachusetts — 3.5%

 

 

 

 

 

 

 

Massachusetts School Building
Authority, RB, Series A (AGM), 5.00%,
8/15/30

 

 

10,600

 

 

11,116,493

 

Nevada — 3.5%

 

 

 

 

 

 

 

City of Las Vegas, Nevada, GO, Limited
Tax Performing Arts Center, 6.00%,
4/01/39

 

 

3,778

 

 

4,096,144

 

Clark County Water Reclamation
District, GO, Series B, 5.50%,
7/01/29

 

 

4,499

 

 

4,909,520

 

Clark County Water Reclamation
District, GO, Series B, 5.75%,
7/01/34

 

 

1,829

 

 

2,007,800

 

 

 

 

 

 

 

 

 

 

 

 

11,013,464

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (e)

 

Par
(000)

 

Value

 

New Hampshire — 2.4%

 

 

 

 

 

 

 

New Hampshire Health & Education
Facilities Authority, RB, Dartmouth
Hitchcock Obligation (AGM), 5.50%,
8/01/27

 

$

7,390

 

$

7,529,967

 

New Jersey — 0.6%

 

 

 

 

 

 

 

New Jersey EDA, RB, Cigarette Tax
(AGC), 5.50%, 6/15/24

 

 

1,850

 

 

1,914,805

 

New York — 1.4%

 

 

 

 

 

 

 

New York City Municipal Water Finance
Authority, RB, Fiscal 2009, Series A,
5.75%, 6/15/40

 

 

1,260

 

 

1,404,823

 

New York State Thruway Authority, RB,
Series G (AGM), 5.00%, 1/01/32

 

 

3,100

 

 

3,167,735

 

 

 

 

 

 

 

 

 

 

 

 

4,572,558

 

Ohio — 0.2%

 

 

 

 

 

 

 

State of Ohio, RB, Cleveland Clinic
Health, Series B, 5.50%, 1/01/34

 

 

580

 

 

605,735

 

South Carolina — 2.6%

 

 

 

 

 

 

 

Charleston Educational Excellence
Finance Corp., RB, Charleston County
School (AGC), 5.25%, 12/01/28

 

 

3,120

 

 

3,233,911

 

Charleston Educational Excellence
Finance Corp., RB, Charleston County
School (AGC), 5.25%, 12/01/29

 

 

2,765

 

 

2,850,217

 

Charleston Educational Excellence
Finance Corp., RB, Charleston County
School (AGC), 5.25%, 12/01/30

 

 

1,010

 

 

1,036,452

 

South Carolina State Public Service
Authority, RB, Santee Cooper,
Series A, 5.50%, 1/01/38

 

 

1,275

 

 

1,371,683

 

 

 

 

 

 

 

 

 

 

 

 

8,492,263

 

Texas — 0.7%

 

 

 

 

 

 

 

Clear Creek ISD, Texas, GO, Refunding,
School Building (PSF-GTD), 5.00%,
2/15/33

 

 

2,200

 

 

2,365,627

 

Virginia — 0.9%

 

 

 

 

 

 

 

Fairfax County IDA Virginia, Refunding
RB, Health Care, Inova Health System,
Series A, 5.50%, 5/15/35

 

 

350

 

 

363,927

 

Virginia Housing Development Authority,
RB, Series H, Sub-Series H-1 (NPFGC),
5.35%, 7/01/31

 

 

2,310

 

 

2,331,598

 

 

 

 

 

 

 

 

 

 

 

 

2,695,525

 

 

 

 

6

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2010


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (e)

 

Par
(000)

 

Value

 

Washington — 1.3%

 

 

 

 

 

 

 

Central Puget Sound Regional
Transportation Authority, Washington,
RB, Series A (AGM), 5.00%, 11/01/32

 

$

4,004

 

$

4,171,082

 

Wisconsin — 0.5%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, Refunding RB,
Froedtert & Community Health Inc.,
5.25%, 4/01/39

 

 

1,430

 

 

1,429,557

 

 

 

 

 

 

 

 

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 37.2%

 

 

 

 

 

116,858,528

 

Total Long-Term Investments
(Cost – $498,968,125) – 161.9%

 

 

 

 

 

509,378,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.16% (f)(g)

 

 

8,110,204

 

 

8,110,204

 

Total Short-Term Securities
(Cost – $8,110,204) – 2.6%

 

 

 

 

 

8,110,204

 

Total Investments

 

 

 

 

 

 

 

(Cost – $507,078,329*) – 164.5%

 

 

 

 

 

517,488,700

 

Other Assets Less Liabilities – 0.2%

 

 

 

 

 

868,283

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (19.4)%

 

 

 

 

 

(61,212,556

)

Preferred Shares, at Redemption Value –(45.3)%

 

 

 

 

 

(142,601,613

)

 

 

 

 

 

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

314,542,814

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2010, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

 

Aggregate cost

$

454,888,045

 

 

 

 

Gross unrealized appreciation

$

18,895,112

 

 

Gross unrealized depreciation

 

(17,463,360

)

 

 

 

Net unrealized appreciation

$

1,431,752

 

 

 

 

 

(a)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(c)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(d)

When-issued security. Unsettled when-issued security transactions were as follows:

 

 

 

 

 

 

 

 

 

 

 

Counterparty

 

Market
Value

 

Unrealized
Depreciation

 

 

 

 

 

 

 

 

 

 

 

 

Citigroup, Inc.

 

$

3,782,900

 

$

(17,100

)

 

Merrill Lynch

 

$

560,067

 

$

—

 

 

 

 

(e)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

 

(f)

Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Net
Activity

 

Income

 

 

 

FFI Institutional Tax Exempt Fund

 

 

$4,807,711

 

 

$17,415

 

 

 

 

(g)

Represents the current yield as of report date.

 

 

 

•

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

•

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

•

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

•

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in the semi-annual report.

The following table summarizes the inputs used as of January 31, 2010 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

Valuation Inputs

 

Investments in
Securities

 

 

 

Assets

 

 

 

 

Level 1 - Short-Term Securities

 

$

8,110,204

 

Level 2 - Long-Term Investments1

 

 

509,378,496

 

Level 3

 

 

—

 

 

 

Total

 

$

517,488,700

 

 

 

 

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2010

7

Item 2 –

Controls and Procedures
   

2(a) –

The registrant's principal executive and principal financial officers or persons performing similar functions have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.
   

2(b) –

There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
   

Item 3 –

Exhibits
   

 

Certifications – Attached hereto
   

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
   

 

BlackRock MuniEnhanced Fund, Inc.
       
 

By:

 /s/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer of
    BlackRock MuniEnhanced Fund, Inc.
   
  Date: March 19, 2010
   
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
   
 

By:

 /s/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniEnhanced Fund, Inc.
   
  Date: March 19, 2010
   
 

By:

 /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniEnhanced Fund, Inc.
   
  Date: March 19, 2010