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: John M. Perlowski, 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: 04/30/2011

 

Date of reporting period: 01/31/2011

 

Item 1 – Schedule of Investments

 

 

 

 

Schedule of Investments January 31, 2011 (Unaudited)

BlackRock MuniEnhanced Fund, Inc. (MEN)
(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 1.5%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB,
Series A:

 

 

 

 

 

 

 

5.50%, 1/01/22

 

$

2,750

 

$

2,557,527

 

4.75%, 1/01/25

 

 

2,200

 

 

1,806,794

 

 

 

 

 

 

 

 

 

 

 

 

4,364,321

 

Alaska — 0.6%

 

 

 

 

 

 

 

Alaska Housing Finance Corp., RB,
General Housing, Series B (NPFGC),
5.25%, 12/01/30

 

 

400

 

 

395,116

 

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

 

 

1,200

 

 

1,288,920

 

 

 

 

 

 

 

 

 

 

 

 

1,684,036

 

Arizona — 1.5%

 

 

 

 

 

 

 

State of Arizona, COP, Department of
Administration, Series A (AGM):

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

3,250

 

 

3,070,535

 

5.25%, 10/01/28

 

 

1,000

 

 

960,980

 

5.00%, 10/01/29

 

 

400

 

 

369,348

 

 

 

 

 

 

 

 

 

 

 

 

4,400,863

 

California — 22.7%

 

 

 

 

 

 

 

Alameda Corridor Transportation
Authority, Refunding RB, CAB,
Subordinate Lien, Series A
(AMBAC) (a):

 

 

 

 

 

 

 

5.65%, 10/01/24

 

 

10,185

 

 

7,984,836

 

5.57%, 10/01/25

 

 

6,000

 

 

4,624,920

 

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

 

 

5,000

 

 

5,388,800

 

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

 

 

600

 

 

558,990

 

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

 

 

1,600

 

 

222,704

 

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

 

 

2,400

 

 

372,600

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

California Health Facilities Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

St. Joseph Health System, Series A,
5.75%, 7/01/39

 

$

550

 

$

540,150

 

Sutter Health, Series B, 5.88%,
8/15/31 (c)

 

 

1,200

 

 

1,189,368

 

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

 

 

1,405

 

 

1,266,664

 

California State University, Refunding
RB, Systemwide, Series A (AGM),
5.00%, 11/01/37

 

 

2,000

 

 

1,844,840

 

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

 

 

850

 

 

838,772

 

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

 

 

1,420

 

 

1,336,021

 

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

 

 

900

 

 

843,516

 

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

 

 

1,300

 

 

1,224,873

 

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

 

 

5,160

 

 

5,110,774

 

Metropolitan Water District of Southern
California, RB, Series B-1 (NPFGC):

 

 

 

 

 

 

 

5.00%, 10/01/29

 

 

2,965

 

 

2,873,826

 

5.00%, 10/01/36

 

 

1,655

 

 

1,629,016

 

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

 

 

5,000

 

 

4,254,050

 

Orange County Sanitation District, COP,
Series B (AGM):

 

 

 

 

 

 

 

5.00%, 2/01/30

 

 

1,500

 

 

1,496,355

 

5.00%, 2/01/31

 

 

900

 

 

892,143

 

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

 

 

1,750

 

 

1,429,173

 

 

 

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

ERB

Education Revenue Bonds

FGIC

Financial Guaranty Insurance Co.

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

ISD

Independent School District

NPFGC

National Public Finance Guarantee Corp.

PSF-GTD

Permanent School Fund Guaranteed

RB

Revenue Bonds

S/F

Single-Family

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2011

1


 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)
(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

4,150

 

$

3,942,085

 

San Mateo County Community College
District, GO, CAB, Election of 2001,
Series C (NPFGC), 5.53%,
9/01/30 (b)

 

 

12,740

 

 

3,880,094

 

State of California, GO:

 

 

 

 

 

 

 

5.13%, 6/01/27

 

 

20

 

 

19,239

 

5.13%, 6/01/31

 

 

60

 

 

55,398

 

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

 

 

6,145

 

 

5,676,505

 

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

 

 

2,325

 

 

2,208,331

 

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

 

 

5,035

 

 

4,799,815

 

 

 

 

 

 

 

 

 

 

 

 

66,503,858

 

Colorado — 1.3%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Covenant Retirement Communities,
Series A (Radian):

 

 

 

 

 

 

 

5.50%, 12/01/27

 

 

1,200

 

 

1,047,072

 

5.50%, 12/01/33

 

 

675

 

 

568,431

 

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

 

 

335

 

 

350,082

 

Regional Transportation District, COP,
Series A, 5.38%, 6/01/31

 

 

2,000

 

 

1,950,360

 

 

 

 

 

 

 

 

 

 

 

 

3,915,945

 

District of Columbia — 1.7%

 

 

 

 

 

 

 

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

 

 

5,530

 

 

4,914,456

 

Florida — 13.6%

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,482,752

 

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

 

 

4,000

 

 

3,762,760

 

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

 

 

3,000

 

 

3,062,160

 

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

 

 

850

 

 

841,976

 

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

 

 

3,000

 

 

2,739,480

 

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

 

 

1,400

 

 

1,432,116

 

County of Miami-Dade Florida, RB,
Water & Sewer System (AGM), 5.00%,
10/01/39

 

 

4,950

 

 

4,635,229

 

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

 

 

9,900

 

 

8,534,790

 

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

 

 

4,200

 

 

4,066,314

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

Highlands County Health Facilities
Authority, RB, Adventist Health
System/Sunbelt, Series B, 6.00%,
11/15/37

 

$

1,450

 

$

1,478,594

 

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

 

 

1,750

 

 

1,635,813

 

Miami-Dade County School Board, COP,
Refunding, Series B (AGC):

 

 

 

 

 

 

 

5.25%, 5/01/31

 

 

100

 

 

97,917

 

5.00%, 5/01/33

 

 

2,000

 

 

1,860,260

 

Orange County School Board, COP,
Series A (NPFGC), 5.00%, 8/01/31

 

 

2,000

 

 

1,875,620

 

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

 

 

275

 

 

269,448

 

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

 

 

2,000

 

 

2,037,880

 

 

 

 

 

 

 

 

 

 

 

 

39,813,109

 

Georgia — 4.1%

 

 

 

 

 

 

 

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

 

 

2,300

 

 

2,303,611

 

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

 

 

825

 

 

769,766

 

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

 

 

7,475

 

 

9,002,666

 

 

 

 

 

 

 

 

 

 

 

 

12,076,043

 

Illinois — 23.1%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO,
Refunding, Series A:

 

 

 

 

 

 

 

(AGM), 5.50%, 12/01/31

 

 

3,000

 

 

3,074,910

 

Chicago School Reform Board,
(NPFGC), 5.50%, 12/01/26

 

 

1,000

 

 

986,410

 

Chicago Park District, GO, Harbor
Facilities, Series C, 5.25%, 1/01/40

 

 

550

 

 

529,408

 

City of Chicago Illinois, ARB, General,
Third Lien, Series B-2, AMT:

 

 

 

 

 

 

 

(AGM), 5.75%, 1/01/23

 

 

5,670

 

 

5,748,529

 

(Syncora), 6.00%, 1/01/29

 

 

2,500

 

 

2,507,125

 

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

 

 

2,000

 

 

1,839,280

 

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

 

 

9,000

 

 

9,046,530

 

County of Cook Illinois, GO, Capital
Improvement, Series C (AMBAC),
5.50%, 11/15/12 (d)

 

 

2,460

 

 

2,673,454

 

County of Cook Illinois, GO, Refunding,
Series A, 5.25%, 11/15/33

 

 

1,350

 

 

1,289,466

 

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

 

 

1,000

 

 

957,920

 

Illinois Sports Facilities Authority, RB,
State Tax Supported (AMBAC), 5.50%,
6/15/30

 

 

20,120

 

 

20,183,378

 

 

 

 

2

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2011


 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)
 (Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

Metropolitan Pier & Exposition Authority,
RB, CAB, McCormick Place Expansion
Project, Series A (NPFGC), 5.96%,
12/15/33 (b)

 

$

9,950

 

$

2,108,504

 

Metropolitan Pier & Exposition Authority,
Refunding RB, CAB, McCormick Place
Expansion Project, Series B (AGM) (b):

 

 

 

 

 

 

 

5.83%, 6/15/27

 

 

1,300

 

 

462,722

 

6.25%, 6/15/44

 

 

3,450

 

 

350,624

 

Railsplitter Tobacco Settlement
Authority, RB, 6.00%, 6/01/28

 

 

675

 

 

644,180

 

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

 

 

9,480

 

 

11,187,538

 

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

 

 

4,400

 

 

4,118,796

 

 

 

 

 

 

 

 

 

 

 

 

67,708,774

 

Indiana — 0.8%

 

 

 

 

 

 

 

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

 

 

400

 

 

401,464

 

Indianapolis Local Public Improvement
Bond Bank, Refunding RB,
Waterworks Project, Series A (AGC),
5.50%, 1/01/38

 

 

1,825

 

 

1,870,789

 

 

 

 

 

 

 

 

 

 

 

 

2,272,253

 

Iowa — 1.9%

 

 

 

 

 

 

 

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

 

 

5,725

 

 

5,658,762

 

Louisiana — 1.0%

 

 

 

 

 

 

 

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

 

 

1,250

 

 

1,329,287

 

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

 

 

1,740

 

 

1,680,579

 

 

 

 

 

 

 

 

 

 

 

 

3,009,866

 

Maryland — 0.4%

 

 

 

 

 

 

 

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

 

 

1,160

 

 

1,203,964

 

Massachusetts — 3.3%

 

 

 

 

 

 

 

Massachusetts HFA, RB, AMT (AGM):

 

 

 

 

 

 

 

Rental Mortgage, Series F, 5.25%,
1/01/46

 

 

1,700

 

 

1,582,139

 

S/F Housing, Series 128, 4.80%,
12/01/27 (e)

 

 

1,600

 

 

1,485,248

 

Massachusetts HFA, Refunding RB,
AMT:

 

 

 

 

 

 

 

Rental Housing, Series A (AGM),
5.15%, 7/01/26

 

 

2,870

 

 

2,847,270

 

Series C, 5.35%, 12/01/42

 

 

1,150

 

 

1,032,332

 

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

 

 

2,700

 

 

2,700,000

 

 

 

 

 

 

 

 

 

 

 

 

9,646,989

 

Michigan — 5.7%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Series B:

 

 

 

 

 

 

 

Second Lien, (AGM), 6.25%,
7/01/36

 

 

400

 

 

419,700

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Series B
(concluded):

 

 

 

 

 

 

 

Second Lien, (AGM), 7.00%,
7/01/36

 

$

200

 

$

220,550

 

Senior Lien, (AGM), 7.50%,
7/01/33

 

 

700

 

 

810,649

 

System, Second Lien, Series B
(NPFGC), 5.00%, 7/01/36

 

 

3,600

 

 

3,087,468

 

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

 

 

2,500

 

 

2,510,325

 

Kalamazoo Hospital Finance Authority,
RB, Bronson Methodist Hospital
(AGM), 5.25%, 5/15/36

 

 

425

 

 

389,942

 

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

 

 

1,500

 

 

1,500,450

 

Michigan State HDA, RB, Series C, AMT,
5.50%, 12/01/28

 

 

1,100

 

 

1,042,481

 

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

 

 

4,300

 

 

3,965,546

 

Michigan Strategic Fund, Refunding RB,
AMT (Syncora), Detroit Edison Co.:

 

 

 

 

 

 

 

Pollution, Series C, 5.65%, 9/01/29

 

 

1,410

 

 

1,378,218

 

Project, Series A, 5.50%, 6/01/30

 

 

1,300

 

 

1,236,079

 

 

 

 

 

 

 

 

 

 

 

 

16,561,408

 

Minnesota — 0.9%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,624,125

 

Nevada — 5.3%

 

 

 

 

 

 

 

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

 

 

3,100

 

 

2,742,043

 

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

 

 

850

 

 

887,238

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Las Vegas-McCarran International
Airport, Series A (AGC), 5.25%,
7/01/39

 

 

3,800

 

 

3,515,380

 

Southwest Gas Corp. Project, Series
A, AMT (FGIC), 4.75%, 9/01/36

 

 

75

 

 

60,319

 

Southwest Gas Corp. Project, Series
D, AMT (NPFGC), 5.25%, 3/01/38

 

 

1,200

 

 

1,061,964

 

Subordinate Lien, Series A-2
(NPFGC), 5.00%, 7/01/30

 

 

1,500

 

 

1,357,965

 

Subordinate Lien, Series A-2
(NPFGC), 5.00%, 7/01/36

 

 

3,200

 

 

2,826,880

 

System, Subordinate Lien, Series C
(AGM), 5.00%, 7/01/26

 

 

1,475

 

 

1,406,309

 

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

 

 

1,600

 

 

1,625,408

 

 

 

 

 

 

 

 

 

 

 

 

15,483,506

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2011

3


 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)
(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New Jersey — 9.7%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax (Radian), 5.50%,
6/15/31

 

$

600

 

$

527,928

 

Cigarette Tax (Radian), 5.75%,
6/15/34

 

 

305

 

 

266,780

 

Motor Vehicle Surcharge, Series A
(NPFGC), 5.25%, 7/01/31

 

 

9,325

 

 

9,324,534

 

Motor Vehicle Surcharge, Series A
(NPFGC), 5.25%, 7/01/33

 

 

7,800

 

 

7,668,492

 

School Facilities Construction,
Series O, 5.13%, 3/01/28

 

 

2,250

 

 

2,248,628

 

School Facilities Construction,
Series Z (AGC), 6.00%, 12/15/34

 

 

2,000

 

 

2,133,940

 

New Jersey EDA, Refunding RB, School
Facilities Construction, Series N-1:

 

 

 

 

 

 

 

(AGM), 5.50%, 9/01/25

 

 

5,000

 

 

5,235,300

 

(NPFGC), 5.50%, 9/01/28

 

 

815

 

 

822,294

 

 

 

 

 

 

 

 

 

 

 

 

28,227,896

 

New York — 4.0%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,575,210

 

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

 

 

4,000

 

 

4,374,680

 

New York City Transitional Finance
Authority, RB, Fiscal 2009, Series S-4:

 

 

 

 

 

 

 

5.50%, 1/15/33

 

 

1,600

 

 

1,641,376

 

5.50%, 1/15/34

 

 

2,750

 

 

2,810,307

 

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

 

 

1,200

 

 

1,258,584

 

 

 

 

 

 

 

 

 

 

 

 

11,660,157

 

North Carolina — 0.5%

 

 

 

 

 

 

 

North Carolina Medical Care
Commission, RB, Novant Health
Obligation, Series A, 4.75%,
11/01/43

 

 

1,700

 

 

1,382,321

 

Ohio — 0.3%

 

 

 

 

 

 

 

Ohio Higher Educational Facility
Commission, Refunding RB, Summa
Health System, 2010 Project (AGC),
5.25%, 11/15/40

 

 

1,025

 

 

935,026

 

Pennsylvania — 1.3%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,429,035

 

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

 

 

2,750

 

 

1,882,017

 

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

 

 

400

 

 

410,252

 

 

 

 

 

 

 

 

 

 

 

 

3,721,304

 

Puerto Rico — 1.9%

 

 

 

 

 

 

 

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

 

 

3,200

 

 

3,276,864

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB:

 

 

 

 

 

 

 

CAB, Series A (NPFGC), 5.70%,
8/01/41 (b)

 

 

8,500

 

 

1,107,380

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Puerto Rico (concluded)

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB (concluded):

 

 

 

 

 

 

 

First Sub-Series C, 6.00%, 8/01/39

 

$

1,180

 

$

1,176,802

 

 

 

 

 

 

 

 

 

 

 

 

5,561,046

 

Rhode Island — 0.9%

 

 

 

 

 

 

 

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

 

 

2,375

 

 

2,483,514

 

South Carolina — 1.3%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,032,970

 

South Carolina Transportation
Infrastructure Bank, RB, Series A,
5.25%, 10/01/40

 

 

3,000

 

 

2,865,360

 

 

 

 

 

 

 

 

 

 

 

 

3,898,330

 

Tennessee — 1.8%

 

 

 

 

 

 

 

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

 

 

600

 

 

100,830

 

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

 

 

5,000

 

 

5,289,000

 

 

 

 

 

 

 

 

 

 

 

 

5,389,830

 

Texas — 12.8%

 

 

 

 

 

 

 

City of Houston Texas, Refunding RB,
Combined, First Lien, Series A (AGC):

 

 

 

 

 

 

 

6.00%, 11/15/35

 

 

2,100

 

 

2,268,987

 

5.38%, 11/15/38

 

 

1,350

 

 

1,371,087

 

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

 

 

13,000

 

 

12,197,640

 

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

 

 

4,475

 

 

2,237,724

 

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

 

 

1,725

 

 

1,741,060

 

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

 

 

650

 

 

598,000

 

North Texas Tollway Authority, RB (AGC),
System, First Tier:

 

 

 

 

 

 

 

Series K-1, 5.75%, 1/01/38

 

 

3,800

 

 

3,799,772

 

Series K-2, 6.00%, 1/01/38

 

 

4,015

 

 

4,093,212

 

North Texas Tollway Authority,
Refunding RB, First Tier:

 

 

 

 

 

 

 

Series A, 6.00%, 1/01/28

 

 

2,795

 

 

2,887,179

 

System, (NPFGC), 5.75%, 1/01/40

 

 

1,600

 

 

1,503,648

 

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

 

 

5,150

 

 

4,734,446

 

 

 

 

 

 

 

 

 

 

 

 

37,432,755

 

 

 

 

4

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2011


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Utah — 1.7%

 

 

 

 

 

 

 

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

 

$

5,000

 

$

4,971,250

 

Virginia — 0.5%

 

 

 

 

 

 

 

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

 

 

1,530

 

 

1,531,469

 

Washington — 1.4%

 

 

 

 

 

 

 

Washington Health Care Facilities
Authority, RB, Providence Health &
Services, Series A:

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

900

 

 

796,473

 

5.25%, 10/01/39

 

 

625

 

 

574,744

 

Washington Health Care Facilities
Authority, Refunding RB, Providence
Health, Series D (AGM), 5.25%,
10/01/33

 

 

2,800

 

 

2,699,172

 

 

 

 

 

 

 

 

 

 

 

 

4,070,389

 

Wisconsin — 0.4%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB, Ascension
Health Senior Credit Group, 5.00%,
11/15/33

 

 

1,375

 

 

1,231,959

 

Total Municipal Bonds – 127.9%

 

 

 

 

 

374,339,524

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (f)

 

 

 

 

 

 

 

Arizona — 0.4%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,191,768

 

California — 5.5%

 

 

 

 

 

 

 

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

 

 

959

 

 

902,850

 

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

 

 

2,500

 

 

2,355,525

 

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

 

 

7,458

 

 

7,245,122

 

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

 

 

404

 

 

406,010

 

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

 

 

2,810

 

 

2,714,628

 

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

 

 

1,605

 

 

1,565,774

 

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

 

 

840

 

 

891,618

 

 

 

 

 

 

 

 

 

 

 

 

16,081,527

 

Colorado — 0.3%

 

 

 

 

 

 

 

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

 

 

900

 

 

878,872

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (f)

 

Par
(000)

 

Value

 

District of Columbia — 1.0%

 

 

 

 

 

 

 

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

 

$

1,005

 

$

1,052,878

 

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

 

 

1,770

 

 

1,913,306

 

 

 

 

 

 

 

 

 

 

 

 

2,966,184

 

Florida — 6.1%

 

 

 

 

 

 

 

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

 

 

7,500

 

 

7,098,300

 

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

 

 

1,349

 

 

1,326,017

 

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

 

 

10,000

 

 

9,301,300

 

 

 

 

 

 

 

 

 

 

 

 

17,725,617

 

Georgia — 5.8%

 

 

 

 

 

 

 

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

 

 

17,356

 

 

16,979,399

 

Illinois — 0.6%

 

 

 

 

 

 

 

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

 

 

1,880

 

 

1,842,074

 

Louisiana — 1.8%

 

 

 

 

 

 

 

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

 

 

5,400

 

 

5,204,574

 

Massachusetts — 3.6%

 

 

 

 

 

 

 

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

 

 

10,600

 

 

10,607,905

 

Nevada — 3.6%

 

 

 

 

 

 

 

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

 

 

3,778

 

 

3,930,580

 

Clark County Water Reclamation
District, GO, Series B:

 

 

 

 

 

 

 

5.50%, 7/01/29

 

 

4,499

 

 

4,623,410

 

5.75%, 7/01/34

 

 

1,829

 

 

1,934,216

 

 

 

 

 

 

 

 

 

 

 

 

10,488,206

 

New Hampshire — 2.5%

 

 

 

 

 

 

 

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

 

 

7,390

 

 

7,403,672

 

New York — 1.9%

 

 

 

 

 

 

 

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

 

 

1,260

 

 

1,314,115

 

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

 

 

3,100

 

 

3,002,164

 

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

 

 

1,300

 

 

1,308,151

 

 

 

 

 

 

 

 

 

 

 

 

5,624,430

 

Ohio — 0.2%

 

 

 

 

 

 

 

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

 

 

580

 

 

568,864

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2011

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 (f)

 

Par
(000)

 

Value

 

South Carolina — 2.8%

 

 

 

 

 

 

 

Charleston Educational Excellence
Finance Corp., RB, Charleston County
School (AGC):

 

 

 

 

 

 

 

5.25%, 12/01/28

 

$

3,120

 

$

3,125,023

 

5.25%, 12/01/29

 

 

2,765

 

 

2,754,963

 

5.25%, 12/01/30

 

 

1,010

 

 

996,456

 

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

 

 

1,275

 

 

1,317,037

 

 

 

 

 

 

 

 

 

 

 

 

8,193,479

 

Texas — 0.8%

 

 

 

 

 

 

 

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

 

 

2,200

 

 

2,230,723

 

Virginia — 0.1%

 

 

 

 

 

 

 

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

 

 

350

 

 

349,255

 

Washington — 1.4%

 

 

 

 

 

 

 

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

 

 

4,004

 

 

3,977,641

 

Wisconsin — 0.4%

 

 

 

 

 

 

 

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

 

 

1,430

 

 

1,315,526

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 38.8%

 

 

 

 

 

113,629,716

 

Total Long-Term Investments
(Cost – $506,742,634) – 166.7%

 

 

 

 

 

487,969,240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.15% (g)(h)

 

 

6,099,163

 

 

6,099,163

 

Total Short-Term Securities
(Cost – $6,099,163) – 2.1%

 

 

 

 

 

6,099,163

 

Total Investments
(Cost – $512,841,797*) – 168.8%

 

 

 

 

 

494,068,403

 

Other Assets Less Liabilities – 1.0%

 

 

 

 

 

2,888,256

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (21.1)%

 

 

 

 

 

(61,634,331

)

Preferred Shares, at Redemption Value – (48.7)%

 

 

 

 

 

(142,600,363

)

 

 

 

 

 

Net Assets – 100.0%

 

 

 

 

$

292,721,965

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2011, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

Aggregate cost

 

$

451,959,480

 

 

 

 

 

 

 

 

 

Gross unrealized appreciation

 

$

5,753,529

 

Gross unrealized depreciation

 

 

(25,227,513

)

 

 

 

Net unrealized depreciation

 

$

(19,473,984

)

 

 

 

 

 

(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)

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

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

Morgan Stanley Co., Inc.

 

$

1,189,368

 

$

9,732

 

 

 

(d)

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.

 

(e)

Variable rate security. Rate shown is as of report date.

 

(f)

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.

 

(g)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
at
April 30,
2010

 

Net
Activity

 

Shares
at
January 31,
2011

 

Income

 

FFI Institutional
Tax-Exempt
Fund

 

 

7,207,423

 

 

(1,108,260

)

 

6,099,163

 

$

7,841

 

 

 

(h)

Represents the current yield as of report date.

 

 

 

6

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2011


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

 

 

•

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 its semi-annual report.

The following table summarizes the inputs used as of January 31, 2011 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

487,969,240

 

 

—

 

$

487,969,240

 

Short-Term
Securities

 

$

6,099,163

 

 

—

 

 

—

 

 

6,099,163

 

 

 

Total

 

$

6,099,163

 

$

487,969,240

 

 

—

 

$

494,068,403

 

 

 

 

 

1

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

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2011

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 13a-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/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniEnhanced Fund, Inc.
   
  Date: March 25, 2011
   
  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/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniEnhanced Fund, Inc.
   
  Date: March 25, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniEnhanced Fund, Inc.
     
  Date: March 25, 2011