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: 04/30/2012

 

Date of reporting period: 07/31/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

 

 

Schedule of Investments July 31, 2011 (Unaudited)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 1.4%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB, Series A:

 

 

 

 

 

 

 

5.50%, 1/01/22

 

$

2,750

 

$

2,490,757

 

4.75%, 1/01/25

 

 

2,200

 

 

1,838,760

 

 

 

 

 

 

 

4,329,517

 

Alaska — 0.6%

 

 

 

 

 

 

 

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

 

 

400

 

 

406,076

 

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

 

 

1,200

 

 

1,359,984

 

 

 

 

 

 

 

1,766,060

 

Arizona — 2.0%

 

 

 

 

 

 

 

Salt River Project Agricultural
Improvement & Power District, RB,
Series A, 5.00%, 1/01/38

 

 

1,500

 

 

1,533,825

 

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

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

3,250

 

 

3,359,882

 

5.25%, 10/01/28

 

 

1,000

 

 

1,046,570

 

5.00%, 10/01/29

 

 

400

 

 

409,676

 

 

 

 

 

 

 

6,349,953

 

California — 24.2%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.65%, 10/01/24

 

 

10,185

 

 

8,453,448

 

5.57%, 10/01/25

 

 

6,000

 

 

4,908,000

 

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

 

 

5,000

 

 

5,702,650

 

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

 

 

2,400

 

 

405,672

 

 

 

 

 

 

 

 

 

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

 

$

556,243

 

Sutter Health, Series B,
5.88%, 8/15/31

 

 

1,200

 

 

1,281,912

 

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

 

 

1,405

 

 

1,377,799

 

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

 

 

2,000

 

 

1,979,640

 

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

 

 

850

 

 

875,950

 

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

 

 

1,420

 

 

1,448,741

 

City of San Jose California, RB, Series
A-1, AMT, 5.75%, 3/01/34

 

 

850

 

 

842,520

 

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

 

 

900

 

 

906,327

 

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

 

 

1,300

 

 

1,332,500

 

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

 

 

5,160

 

 

5,272,230

 

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

 

 

 

 

 

 

 

5.00%, 10/01/29

 

 

2,965

 

 

3,027,176

 

5.00%, 10/01/36

 

 

1,655

 

 

1,668,770

 

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

 

 

4,900

 

 

4,453,904

 

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

 

 

 

 

 

 

 

5.00%, 2/01/30

 

 

1,500

 

 

1,557,690

 

5.00%, 2/01/31

 

 

900

 

 

930,591

 

 

 

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

Radian

Radian Group, Inc.

RB

Revenue Bonds

S/F

Single-Family

Syncora

Syncora Guarantee

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JULY 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)

 

 

 

 

 

 

 

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

 

$

1,750

 

$

1,485,452

 

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

 

 

4,150

 

 

4,214,740

 

San Diego Unified School District
California, GO, CAB, Election of 2008,
Series C, 6.85%, 7/01/38 (b)

 

 

1,600

 

 

287,392

 

San Joaquin County Transportation
Authority, RB, Limited Tax, Measure K,
Series A, 6.00%, 3/01/36

 

 

2,175

 

 

2,382,343

 

San Marcos Unified School District, GO,
Election of 2010, Series A:

 

 

 

 

 

 

 

5.00%, 8/01/34

 

 

700

 

 

704,382

 

5.00%, 8/01/38

 

 

600

 

 

596,478

 

San Mateo County Community College
District, GO, CAB, Election of 2001,
Series C (NPFGC), 5.54%, 9/01/30 (b)

 

 

12,740

 

 

4,235,540

 

State of California, GO:

 

 

 

 

 

 

 

5.13%, 6/01/27

 

 

20

 

 

20,011

 

5.13%, 6/01/31

 

 

60

 

 

60,005

 

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

 

 

6,145

 

 

6,176,893

 

Turlock Irrigation District, Refunding RB,
5.50%, 1/01/41 (c)

 

 

850

 

 

875,789

 

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

 

 

2,325

 

 

2,391,193

 

Walnut Valley Unified School District,
GO, CAB, Election of 2007, Series B,
6.89%, 8/01/36 (b)

 

 

5,500

 

 

1,025,695

 

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

 

 

5,035

 

 

5,142,346

 

 

 

 

 

 

 

76,580,022

 

Colorado — 1.3%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.50%, 12/01/27

 

 

1,200

 

 

1,130,808

 

5.50%, 12/01/33

 

 

675

 

 

612,164

 

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

 

 

315

 

 

325,058

 

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

 

 

2,000

 

 

2,080,440

 

 

 

 

 

 

 

4,148,470

 

District of Columbia — 1.6%

 

 

 

 

 

 

 

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

 

 

5,530

 

 

5,208,043

 

Florida — 13.4%

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,628,720

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

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

 

$

3,000

 

$

3,184,920

 

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

 

 

850

 

 

892,908

 

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

 

 

3,000

 

 

3,010,560

 

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

 

 

1,400

 

 

1,492,764

 

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

 

 

4,950

 

 

5,004,103

 

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

 

 

9,900

 

 

8,919,405

 

Florida Ports Financing Commission,
Refunding RB, State Transportation
Trust Fund, Series B, AMT:

 

 

 

 

 

 

 

5.13%, 6/01/27

 

 

2,000

 

 

2,012,920

 

5.38%, 10/01/29

 

 

1,050

 

 

1,065,120

 

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

 

 

1,450

 

 

1,536,232

 

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

 

 

4,050

 

 

4,072,396

 

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

 

 

1,650

 

 

1,664,933

 

Orange County School Board, COP,
Series A:

 

 

 

 

 

 

 

(AGC), 5.50%, 8/01/34

 

 

3,550

 

 

3,668,286

 

(NPFGC), 5.00%, 8/01/31

 

 

2,000

 

 

2,005,260

 

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

 

 

275

 

 

277,874

 

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

 

 

2,000

 

 

2,110,680

 

 

 

 

 

 

 

42,547,081

 

Georgia — 3.3%

 

 

 

 

 

 

 

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

 

 

825

 

 

833,927

 

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

 

 

7,475

 

 

9,455,127

 

 

 

 

 

 

 

10,289,054

 

Illinois — 22.9%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

3,000

 

 

3,371,040

 

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

 

 

1,000

 

 

1,040,550

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JULY 31, 2011

2


 

 

 

 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

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

 

$

550

 

$

562,700

 

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

 

 

 

 

 

 

 

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

 

 

5,670

 

 

5,845,146

 

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

 

 

2,500

 

 

2,552,250

 

City of Chicago Illinois, RB, Series A:

 

 

 

 

 

 

 

(AGC), 5.00%, 1/01/38

 

 

2,000

 

 

1,997,000

 

General Third Lien, 5.75%, 1/01/39

 

 

5,110

 

 

5,332,489

 

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

 

 

4,500

 

 

4,562,055

 

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

 

 

2,460

 

 

2,624,451

 

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

 

 

1,350

 

 

1,402,204

 

Illinois Finance Authority, RB, Carle
Foundation, Series A, 5.75%,
8/15/34

 

 

650

 

 

640,192

 

Illinois Finance Authority, Refunding RB,
Carle Foundation, Series A, 6.00%,
8/15/41

 

 

1,000

 

 

1,008,970

 

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

 

 

1,000

 

 

1,011,900

 

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

 

 

20,120

 

 

20,445,139

 

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

 

 

9,950

 

 

2,597,845

 

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

 

 

 

 

 

 

 

5.83%, 6/15/27

 

 

1,300

 

 

540,033

 

6.25%, 6/15/44

 

 

3,450

 

 

432,044

 

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

 

 

675

 

 

695,149

 

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

 

 

9,480

 

 

11,390,884

 

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

 

 

4,400

 

 

4,464,900

 

 

 

 

 

 

 

72,516,941

 

Indiana — 0.9%

 

 

 

 

 

 

 

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

 

 

400

 

 

408,208

 

Indianapolis Local Public Improvement
Bond Bank, Refunding RB,
Waterworks Project, Series A (AGC):

 

 

 

 

 

 

 

5.25%, 1/01/29

 

 

600

 

 

635,088

 

5.50%, 1/01/38

 

 

1,825

 

 

1,908,549

 

 

 

 

 

 

 

2,951,845

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Iowa — 1.9%

 

 

 

 

 

 

 

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

 

$

5,725

 

$

5,921,138

 

Louisiana — 0.4%

 

 

 

 

 

 

 

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

 

 

1,250

 

 

1,387,075

 

Massachusetts — 2.0%

 

 

 

 

 

 

 

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

 

 

1,700

 

 

1,678,580

 

Massachusetts HFA, Refunding RB, AMT:

 

 

 

 

 

 

 

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

 

 

625

 

 

629,519

 

Series C, 5.35%, 12/01/42

 

 

1,150

 

 

1,119,249

 

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

 

 

2,700

 

 

2,786,103

 

 

 

 

 

 

 

6,213,451

 

Michigan — 6.1%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Series B:

 

 

 

 

 

 

 

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

 

 

400

 

 

435,632

 

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

 

 

200

 

 

229,554

 

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

 

 

700

 

 

825,321

 

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

 

 

3,600

 

 

3,311,496

 

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

 

 

2,500

 

 

2,627,850

 

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

 

 

425

 

 

427,044

 

Lansing Board of Water & Light Utilities,
RB, Series A, 5.50%, 7/01/41

 

 

1,700

 

 

1,801,252

 

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

 

 

1,500

 

 

1,508,595

 

Michigan State Building Authority,
Refunding RB, Facilities Program:

 

 

 

 

 

 

 

Series I-A, 5.38%, 10/15/36

 

 

145

 

 

146,065

 

Series I-A, 5.38%, 10/15/41

 

 

700

 

 

705,138

 

Series II-A (AGM), 5.25%, 10/15/36

 

 

900

 

 

907,713

 

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

 

 

1,100

 

 

1,104,499

 

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

 

 

 

 

 

 

 

Series A, 5.50%, 6/01/30

 

 

1,300

 

 

1,278,940

 

Series C, 5.45%, 12/15/32

 

 

4,300

 

 

4,147,221

 

 

 

 

 

 

 

19,456,320

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JULY 31, 2011

3


 

 

 

 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Minnesota — 0.9%

 

 

 

 

 

 

 

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

 

$

2,500

 

$

2,723,450

 

Nevada — 4.7%

 

 

 

 

 

 

 

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

 

 

3,100

 

 

2,830,238

 

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

 

 

850

 

 

922,700

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

 

3,800

 

 

3,820,368

 

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

 

 

75

 

 

65,188

 

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

 

 

1,200

 

 

1,117,464

 

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

 

 

1,500

 

 

1,507,215

 

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

 

 

3,200

 

 

3,132,896

 

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

 

 

1,475

 

 

1,533,602

 

 

 

 

 

 

 

14,929,671

 

New Jersey — 10.3%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

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

 

 

600

 

 

564,732

 

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

 

 

305

 

 

291,181

 

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

 

 

7,025

 

 

7,196,480

 

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

 

 

7,800

 

 

7,930,494

 

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

 

 

2,250

 

 

2,293,785

 

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

 

 

2,000

 

 

2,153,940

 

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

 

 

5,000

 

 

5,506,300

 

New Jersey Higher Education Student
Assistance Authority, RB, Series 1, AMT:

 

 

 

 

 

 

 

5.50%, 12/01/26

 

 

600

 

 

611,802

 

5.75%, 12/01/27

 

 

3,870

 

 

3,991,402

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System,
Series A, 5.50%, 6/15/41

 

 

2,000

 

 

2,088,180

 

 

 

 

 

 

 

32,628,296

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New York — 3.9%

 

 

 

 

 

 

 

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

 

$

1,500

 

$

1,630,455

 

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

 

 

4,000

 

 

4,626,960

 

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

 

 

 

 

 

 

 

5.50%, 1/15/33

 

 

1,600

 

 

1,702,512

 

5.50%, 1/15/34

 

 

2,750

 

 

2,940,575

 

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

 

 

1,200

 

 

1,321,080

 

 

 

 

 

 

 

12,221,582

 

North Carolina — 0.7%

 

 

 

 

 

 

 

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

 

 

2,550

 

 

2,167,679

 

Ohio — 0.5%

 

 

 

 

 

 

 

County of Lucas Ohio, Refunding RB,
Promedica Healthcare, Series A,
6.50%, 11/15/37

 

 

530

 

 

589,254

 

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

 

 

1,025

 

 

1,007,011

 

 

 

 

 

 

 

1,596,265

 

Pennsylvania — 0.8%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,505,265

 

Pennsylvania Turnpike Commission, RB,
Subordinate, Special Motor License
Fund, 6.00%, 12/01/36

 

 

575

 

 

640,596

 

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

 

 

400

 

 

421,656

 

 

 

 

 

 

 

2,567,517

 

Puerto Rico — 1.9%

 

 

 

 

 

 

 

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

 

 

3,200

 

 

3,432,832

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB:

 

 

 

 

 

 

 

CAB, Series A (NPFGC), 5.69%,
8/01/41 (b)

 

 

8,500

 

 

1,213,035

 

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

 

 

1,180

 

 

1,238,540

 

 

 

 

 

 

 

5,884,407

 

Rhode Island — 0.8%

 

 

 

 

 

 

 

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

 

 

2,375

 

 

2,600,316

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JULY 31, 2011

4


 

 

 

 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

South Carolina — 1.3%

 

 

 

 

 

 

 

South Carolina Jobs-EDA, Refunding RB,
Palmetto Health, Series A (AGM),
6.50%, 8/01/39

 

$

115

 

$

119,805

 

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

 

 

1,000

 

 

1,065,070

 

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

 

 

3,000

 

 

3,057,660

 

 

 

 

 

 

 

4,242,535

 

Tennessee — 1.8%

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,648,250

 

Texas — 11.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

6.00%, 11/15/35

 

 

2,100

 

 

2,337,090

 

5.38%, 11/15/38

 

 

1,350

 

 

1,420,497

 

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

 

 

13,000

 

 

12,965,680

 

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

 

 

4,475

 

 

2,482,685

 

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

 

 

1,725

 

 

1,797,795

 

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

 

 

 

 

 

 

 

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

 

 

3,800

 

 

3,946,110

 

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

 

 

4,015

 

 

4,225,627

 

North Texas Tollway Authority,
Refunding RB, First Tier:

 

 

 

 

 

 

 

Series A, 6.00%, 1/01/28

 

 

2,795

 

 

3,013,066

 

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

 

 

1,600

 

 

1,611,856

 

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

 

 

3,150

 

 

3,127,635

 

 

 

 

 

 

 

36,928,041

 

Virginia — 0.5%

 

 

 

 

 

 

 

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

 

 

1,530

 

 

1,530,566

 

Washington — 1.9%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit
Authority, RB, Series A, 5.00%,
11/01/36

 

 

1,600

 

 

1,638,704

 

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

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

900

 

 

887,886

 

5.25%, 10/01/39

 

 

625

 

 

631,894

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Washington (concluded)

 

 

 

 

 

 

 

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

 

$

2,800

 

$

2,866,388

 

 

 

 

 

 

 

6,024,872

 

Wisconsin — 0.4%

 

 

 

 

 

 

 

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

 

 

1,375

 

 

1,387,911

 

Total Municipal Bonds – 124.1%

 

 

 

 

 

392,746,328

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (e)

 

 

 

 

 

 

 

Arizona — 0.4%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,246,860

 

California — 5.3%

 

 

 

 

 

 

 

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

 

 

959

 

 

961,813

 

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

 

 

2,500

 

 

2,562,500

 

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

 

 

7,458

 

 

7,521,888

 

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

 

 

404

 

 

425,370

 

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

 

 

2,810

 

 

2,869,516

 

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

 

 

1,605

 

 

1,654,482

 

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

 

 

840

 

 

908,326

 

 

 

 

 

 

 

16,903,895

 

Colorado — 0.3%

 

 

 

 

 

 

 

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

 

 

900

 

 

928,264

 

District of Columbia — 1.0%

 

 

 

 

 

 

 

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

 

 

1,005

 

 

1,120,746

 

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

 

 

1,770

 

 

2,030,462

 

 

 

 

 

 

 

3,151,208

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JULY 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 (TOB) Trusts (e)

 

Par
(000)

 

Value

 

Florida — 7.3%

 

 

 

 

 

 

 

City of Tallahassee Florida Energy
System, RB (NPFGC):

 

 

 

 

 

 

 

5.00%, 10/01/32

 

$

4,000

 

$

4,063,400

 

5.00%, 10/01/37

 

 

7,500

 

 

7,562,850

 

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

 

 

1,349

 

 

1,386,281

 

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

 

 

10,000

 

 

10,090,500

 

 

 

 

 

 

 

23,103,031

 

Georgia — 5.5%

 

 

 

 

 

 

 

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

 

 

17,356

 

 

17,556,619

 

Illinois — 0.6%

 

 

 

 

 

 

 

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

 

 

1,880

 

 

1,941,112

 

Louisiana — 1.7%

 

 

 

 

 

 

 

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

 

 

5,400

 

 

5,458,752

 

Massachusetts — 3.5%

 

 

 

 

 

 

 

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

 

 

10,600

 

 

11,015,687

 

Nevada — 3.5%

 

 

 

 

 

 

 

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

 

 

3,778

 

 

4,070,667

 

Clark County Water Reclamation
District, GO, Series B:

 

 

 

 

 

 

 

5.50%, 7/01/29

 

 

4,499

 

 

4,889,180

 

5.75%, 7/01/34

 

 

1,829

 

 

2,004,561

 

 

 

 

 

 

 

10,964,408

 

New York — 0.9%

 

 

 

 

 

 

 

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

 

 

1,260

 

 

1,384,700

 

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

 

 

1,300

 

 

1,369,888

 

 

 

 

 

 

 

2,754,588

 

Ohio — 0.2%

 

 

 

 

 

 

 

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

 

 

580

 

 

604,708

 

South Carolina — 2.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 12/01/28

 

 

3,120

 

 

3,263,645

 

5.25%, 12/01/29

 

 

2,765

 

 

2,882,236

 

5.25%, 12/01/30

 

 

1,010

 

 

1,049,986

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (e)

 

Par
(000)

 

Value

 

South Carolina (concluded)

 

 

 

 

 

 

 

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

 

$

1,275

 

$

1,357,964

 

 

 

 

 

 

 

8,553,831

 

Texas — 1.3%

 

 

 

 

 

 

 

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

 

 

2,200

 

 

2,339,260

 

North East ISD Texas, GO, School
Building, Series A (PSF-GTD), 5.00%,
8/01/37

 

 

1,600

 

 

1,650,176

 

 

 

 

 

 

 

3,989,436

 

Utah — 1.6%

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,131,350

 

Virginia — 0.1%

 

 

 

 

 

 

 

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

 

 

350

 

 

362,964

 

Washington — 1.3%

 

 

 

 

 

 

 

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

 

 

4,004

 

 

4,145,170

 

Wisconsin — 0.5%

 

 

 

 

 

 

 

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

 

 

1,430

 

 

1,434,946

 

Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts –
37.7%

 

 

 

 

 

119,246,829

 

Total Long-Term Investments
(Cost – $505,810,637) – 161.8%

 

 

 

 

 

511,993,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

 

Shares

 

 

 

FFI Institutional Tax-Exempt Fund,
0.01% (f)(g)

 

 

4,834,091

 

 

4,834,091

 

Total Short-Term Securities
(Cost – $4,834,091) – 1.5%

 

 

 

 

 

4,834,091

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JULY 31, 2011

6


 

 

 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

Value

 

Total Investments
(Cost – $510,644,728*) – 163.3%

 

$

516,827,248

 

Other Assets Less Liabilities – 1.2%

 

 

3,784,812

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (19.5)%

 

 

(61,662,074

)

AMPS, at Redemption Value – (45.0)%

 

 

(142,500,000

)

Net Assets Applicable to Common Shares – 100.0%

 

$

316,449,986

 

 

 

 

 

 

*

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


 

 

 

 

 

Aggregate cost

 

$

510,644,728

 

Gross unrealized appreciation

 

 

13,776,811

 

Gross unrealized depreciation

 

 

(7,594,291

)

Net unrealized appreciation

 

$

6,182,520

 

 

 

(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 is 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

 

 

 

 

 

 

 

 

 

Barclays Capital Inc.

 

$

875,789

 

$

2,312

 

 

 

(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)

Securities represent bonds transferred to a TOB 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 during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
April 30, 2011

 

Net
Activity

 

Shares
Held at
July 31, 2011

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFI Institutional
Tax-Exempt
Fund

 

 

3,470,954

 

 

1,363,137

 

 

4,834,091

 

$

10,748

 

 

 

(g)

Represents the current yield as of report date.

 

 

•

Financial futures contracts sold as of July 31, 2011 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

170

 

10-Year US
Treasury
Note

 

Chicago
Board of
Trade

 

September
2011

 

$

20,830,146

 

$

(536,729

)

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized in three broad levels for financial reporting purposes 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 and derivative financial instruments)

The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies please refer to the Fund’s most recent financial statements as contained in its annual report.

The following tables summarize the inputs used as of July 31, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

—

 

$

511,993,157

 

 

—

 

$

511,993,157

 

Short-Term Securities

 

$

4,834,091

 

 

—

 

 

—

 

 

4,834,091

 

Total

 

$

4,834,091

 

$

511,993,157

 

 

—

 

$

516,827,248

 

 

 

1

See above schedule of investments for values in each state or political subdivision.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(536,729

)

 

—

 

 

—

 

$

(536,729

)

 

 

2

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JULY 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: September 26, 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: September 26, 2011 

 

 

 

 By: /s/ Neal J. Andrews

 

 

 

Neal J. Andrews 

 

 

Chief Financial Officer (principal financial officer) of 

 

 

BlackRock MuniEnhanced Fund, Inc. 

 

 

 

 

Date: September 26, 2011