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., 40 East 52nd Street, New York, NY 10022.

 

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

 

Date of fiscal year end: 04/30/2010

 

Date of reporting period: 07/31/2009

 

Item 1 – Schedule of Investments

 


 

 

BlackRock MuniEnhanced Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 









 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama - 1.0%

 

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

 

$

2,750

 

$

1,623,380

 

 

 

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

 

 

2,200

 

 

1,232,572

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

2,855,952

 











Alaska - 0.5%

 

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

 

 

1,200

 

 

1,317,000

 











Arizona - 0.5%

 

Salt Verde Financial Corp., RB, Senior, 5%, 12/01/37

 

 

2,000

 

 

1,521,640

 











California - 23.0%

 

Alameda Corridor Transportation Authority, Refunding RB, CAB, Subordinate Lien, Series A (AMBAC), 5.62%, 10/01/24 (a)

 

 

10,285

 

 

7,852,083

 

 

 

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

 

 

6,000

 

 

4,531,140

 

 

 

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

 

 

5,000

 

 

5,525,700

 

 

 

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

 

 

600

 

 

591,966

 

 

 

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

 

 

1,600

 

 

229,024

 

 

 

Cabrillo Community College District, California, GO, CAB, Election of 2004, Series B (MBIA), 5.19%, 8/01/37 (b)

 

 

2,400

 

 

376,512

 

 

 

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

 

 

2,600

 

 

2,440,880

 

 

 

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

 

 

850

 

 

852,167

 

 

 

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

 

 

1,720

 

 

1,680,698

 

 

 

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

 

 

900

 

 

886,203

 

 

 

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

 

 

5,160

 

 

5,162,012

 

 

 

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

 

 

2,965

 

 

3,023,974

 

 

 

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

 

 

1,655

 

 

1,657,962

 

 

 

Norco Redevelopment Agency, California, TAN, Refunding, Project Area No. 1 (MBIA), 5.13%, 3/01/30

 

 

5,000

 

 

4,250,650

 

 

 

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

 

 

7,455

 

 

7,195,268

 

 

 

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

 

 

1,500

 

 

1,477,320

 

 

 

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

 

 

900

 

 

880,281

 


 


Portfolio Abbreviations


The 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.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

CAB

Capital Appreciation Bonds

CIFG

CDC IXIS Financial Guaranty

COP

Certificates of Participation

EDA

Economic Development Authority

FGIC

Financial Guaranty Insurance Co.

FSA

Financial Security Assurance Inc.

GNMA

Government National Mortgage Association

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

ISD

Independent School District

MBIA

Municipal Bond Investors Assurance

 

(National Public Finance Guaranty Corp.)

RB

Revenue Bonds

S/F

Single-Family

TAN

Tax Anticipation Notes

VRDN

Variable Rate Demand Notes

1



 

 

BlackRock MuniEnhanced Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 









 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 









 

 

Poway Redevelopment Agency, California, TAN, Paguay Redevelopment Project (AMBAC), 5.13%, 6/15/33

 

$

1,750

 

$

1,404,393

 

 

 

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

 

 

4,150

 

 

4,086,339

 

 

 

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

 

 

20

 

 

19,918

 

 

 

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

 

 

60

 

 

57,376

 

 

 

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

 

 

6,145

 

 

5,721,487

 

 

 

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

 

 

2,325

 

 

2,289,358

 

 

 

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

 

 

5,035

 

 

4,882,238

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

67,074,949

 











Colorado - 0.7%

 

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

 

 

1,200

 

 

1,000,404

 

 

 

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

 

 

675

 

 

529,301

 

 

 

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

 

 

420

 

 

452,395

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

1,982,100

 











District of Columbia - 2.7%

 

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

 

 

9,600

 

 

7,792,224

 











Florida - 9.5%

 

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

 

 

1,600

 

 

1,601,056

 

 

 

City of Miami Florida, RB, Miami Revenues (MBIA), 5%, 1/01/37

 

 

820

 

 

745,044

 

 

 

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

 

 

3,000

 

 

3,032,430

 

 

 

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

 

 

850

 

 

858,253

 

 

 

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

 

 

2,300

 

 

2,219,040

 

 

 

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

 

 

1,400

 

 

1,444,240

 

 

 

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

 

 

9,900

 

 

8,228,682

 

 

 

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

 

 

4,200

 

 

4,152,918

 

 

 

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

 

 

1,750

 

 

1,578,308

 

 

 

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

 

 

1,800

 

 

1,801,098

 

 

 

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

 

 

2,000

 

 

2,084,560

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

27,745,629

 











Georgia - 5.4%

 

City of Atlanta Georgia, RB, Series A (MBIA), 5.00%, 11/01/33

 

 

1,000

 

 

886,960

 

 

 

City of Atlanta Georgia, RB, Series A (MBIA), 5.00%, 11/01/39

 

 

4,250

 

 

3,646,627

 

 

 

City of Augusta Georgia, RB (FSA), 5.25%, 10/01/39

 

 

2,300

 

 

2,324,679

 

 

 

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

 

 

7,475

 

 

8,996,088

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

15,854,354

 











Illinois - 18.6%

 

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

 

 

1,000

 

 

1,095,310

 

 

 

City of Chicago Illinois, RB, General, Airport 3rd Lien, Series B-2 (FSA), AMT, 5.75%, 1/01/23

 

 

5,670

 

 

5,735,659

 

2



 

 

BlackRock MuniEnhanced Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 











 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 









 

 

City of Chicago Illinois, RB, General, Airport 3rd Lien, Series B-2 (Syncora), AMT, 6.00%, 1/01/29

 

$

2,300

 

$

2,313,110

 

 

 

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

 

 

2,000

 

 

1,955,400

 

 

 

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

 

 

9,000

 

 

9,015,570

 

 

 

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

 

 

2,460

 

 

2,810,796

 

 

 

Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC), 5.55%, 6/15/30 (a)

 

 

20,120

 

 

18,847,812

 

 

 

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

 

 

10,115

 

 

12,576,789

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

54,350,446

 











Indiana - 0.1%

 

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

 

 

400

 

 

404,712

 











Iowa - 0.5%

 

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

 

 

1,350

 

 

1,343,358

 











Louisiana - 2.5%

 

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Capital Projects & Equipment Acquisition, Series A (AMBAC), 6.30%, 7/01/30

 

 

1,025

 

 

990,540

 

 

 

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

 

 

1,250

 

 

1,373,625

 

 

 

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

 

 

1,235

 

 

435,263

 

 

 

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

 

 

3,650

 

 

2,637,746

 

 

 

State of Louisiana, RB, Series A (FSA), 4.75%, 5/01/39

 

 

1,975

 

 

1,919,680

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

7,356,854

 











Maryland - 1.6%

 

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

 

 

4,645

 

 

4,752,810

 











Massachusetts - 6.5%

 

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

 

 

5,400

 

 

4,943,916

 

 

 

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

 

 

1,600

 

 

1,490,800

 

 

 

Massachusetts Port Authority, RB, Delta Air Lines Inc. Project, Series A (AMBAC), AMT, 5.50%, 1/01/16

 

 

3,100

 

 

2,607,968

 

 

 

Massachusetts Port Authority, RB, Delta Air Lines Inc. Project, Series A (AMBAC), AMT, 5.50%, 1/01/18

 

 

4,000

 

 

3,045,200

 

 

 

Massachusetts Port Authority, RB, Delta Air Lines Inc. Project, Series A (AMBAC), AMT, 5.50%, 1/01/19

 

 

2,775

 

 

1,946,080

 

 

 

Massachusetts State Water Resource Authority, General Refunding RB, Series A, 5.00%, 8/01/34

 

 

2,700

 

 

2,715,930

 

 

 

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

 

 

2,000

 

 

2,211,900

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

18,961,794

 











Michigan - 5.3%

 

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

 

 

400

 

 

420,488

 

 

 

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

 

 

200

 

 

222,360

 

 

 

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

 

 

2,500

 

 

2,582,575

 

3



 

 

BlackRock MuniEnhanced Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 











 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 









 

 

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

 

$

700

 

$

810,516

 

 

 

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

 

 

3,600

 

 

3,058,488

 

 

 

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

 

 

1,500

 

 

1,424,730

 

 

 

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

 

 

1,300

 

 

1,131,273

 

 

 

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

 

 

4,300

 

 

3,651,431

 

 

 

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

 

 

2,400

 

 

2,140,824

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

15,442,685

 











Minnesota - 1.0%

 

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

 

 

2,500

 

 

2,723,325

 

 

 

Dakota County Community Development Agency, RB, Mortgage, Backed Securities Program, Series B (GNMA), AMT, 5.15%, 12/01/38

 

 

125

 

 

125,269

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

2,848,594

 











Nebraska - 0.6%

 

County of Washington Nebraska, RB, Cargill Inc. Project, AMT, 5.90%, 11/01/27

 

 

1,600

 

 

1,598,944

 











Nevada - 3.6%

 

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

 

 

3,100

 

 

2,439,266

 

 

 

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

 

 

850

 

 

896,393

 

 

 

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

 

 

75

 

 

55,131

 

 

 

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

 

 

1,300

 

 

1,029,730

 

 

 

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

 

 

1,500

 

 

1,445,295

 

 

 

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

 

 

3,200

 

 

2,942,848

 

 

 

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

 

 

1,600

 

 

1,620,064

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

10,428,727

 











New Jersey - 8.4%

 

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

 

 

600

 

 

478,422

 

 

 

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

 

 

305

 

 

245,784

 

 

 

New Jersey EDA, RB, Motor Vehicle Sur Revenue, Series A (MBIA), 5.25%, 7/01/31

 

 

9,325

 

 

9,228,766

 

 

 

New Jersey EDA, RB, Motor Vehicle Sur Revenue, Series A (MBIA), 5.25%, 7/01/33

 

 

7,800

 

 

7,582,302

 

 

 

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

 

 

815

 

 

857,494

 

 

 

New Jersey EDA, RB, School Facilities Construction, Series O, 5.125%, 3/01/28

 

 

3,960

 

 

4,035,794

 

 

 

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

 

 

2,000

 

 

2,179,780

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

24,608,342

 











New York - 4.7%

 

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

 

 

1,500

 

 

1,566,525

 

4



 

 

BlackRock MuniEnhanced Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 











 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 









 

 

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

 

$

4,000

 

$

4,431,720

 

 

 

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

 

 

2,750

 

 

2,817,128

 

 

 

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

 

 

1,200

 

 

1,289,832

 

 

 

Tobacco Settlement Financing Corp., New York, RB, Asset Backed, Series A-4 (AMBAC), 5.25%, 6/01/22

 

 

2,300

 

 

2,356,626

 

 

 

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

 

 

1,300

 

 

1,338,415

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

13,800,246

 











Oregon - 0.6%

 

Oregon State Housing & Community Services Department, Oregon, RB, S/F Mortgage Program, Series G, AMT, 5.50%, 1/01/38

 

 

1,820

 

 

1,847,609

 











Pennsylvania - 0.6%

 

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

 

 

1,500

 

 

1,437,840

 

 

 

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

 

 

400

 

 

419,076

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

1,856,916

 











Puerto Rico - 1.1%

 

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

 

 

3,200

 

 

3,318,496

 











Rhode Island - 2.8%

 

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

 

 

4,345

 

 

4,723,406

 

 

 

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

 

 

3,355

 

 

3,566,432

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

8,289,838

 











South Carolina - 2.1%

 

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

 

 

3,800

 

 

3,782,634

 

 

 

County of Kershaw South Carolina, RB, Kershaw County School District Project (CIFG), 5.00%, 12/01/29

 

 

2,365

 

 

2,329,241

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

6,111,875

 











Tennessee - 2.9%

 

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

 

 

4,100

 

 

528,080

 

 

 

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

 

 

5,000

 

 

5,472,400

 

 

 

Tennessee Energy Acquisition Corp., Tennessee, RB, Series A, 5.25%, 9/01/26

 

 

2,610

 

 

2,320,603

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

8,321,083

 











Texas - 14.2%

 

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

 

 

2,100

 

 

2,307,039

 

 

 

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

 

 

1,350

 

 

1,374,057

 

 

 

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

 

 

13,000

 

 

11,925,680

 

 

 

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

 

 

4,475

 

 

2,011,602

 

 

 

Mansfield ISD, Texas, GO, School Building, 5.00%, 2/15/33

 

 

1,725

 

 

1,750,927

 

 

 

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

 

 

2,400

 

 

2,078,928

 

 

 

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

 

 

2,895

 

 

2,839,416

 

 

 

North Texas Tollway Authority, Refunding RB, System, 1st (MBIA), 5.75%, 1/01/40

 

 

1,600

 

 

1,593,072

 

5



 

 

BlackRock MuniEnhanced Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 











 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 









 

 

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

 

$

4,015

 

$

4,276,176

 

 

 

North Texas Tollway Authority, Refunding RB, System, First Tier, Series A, 6.00%, 1/01/25

 

 

625

 

 

657,831

 

 

 

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

 

 

3,800

 

 

3,962,488

 

 

 

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

 

 

7,150

 

 

6,490,341

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

42,267,557

 











Utah - 1.7%

 

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

 

 

5,000

 

 

5,056,850

 











Vermont - 0.9%

 

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

 

 

3,000

 

 

2,711,730

 











Washington - 0.2%

 

Port of Tacoma Washington, GO, Series B (AGC), AMT, 4.88%, 12/01/38

 

 

515

 

 

441,741

 











Wisconsin - 0.6%

 

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

 

 

1,675

 

 

1,663,744

 











 

 

Total Municipal Bonds - 124.40%

 

 

 

 

 

362,928,799

 











 

 

Municipal Bonds Transferred to Tender Option Bond Trusts (d)

 

 

 

 

 

 

 











Arizona - 0.4%

 

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

 

 

1,200

 

 

1,205,544

 











California - 3.1%

 

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

 

 

959

 

 

948,027

 

 

 

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

 

 

2,500

 

 

2,391,375

 

 

 

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

 

 

404

 

 

410,428

 

 

 

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

 

 

2,810

 

 

2,752,395

 

 

 

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

 

 

1,605

 

 

1,560,124

 

 

 

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

 

 

840

 

 

902,362

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

8,964,711

 











District of Columbia - 1.0%

 

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

 

 

1,005

 

 

1,080,375

 

 

 

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

 

 

1,770

 

 

1,915,270

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

2,995,645

 











Florida - 4.4%

 

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

 

 

1,349

 

 

1,345,281

 

 

 

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

 

 

12,000

 

 

11,578,680

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

12,923,961

 











Georgia - 6.0%

 

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

 

 

17,356

 

 

17,474,853

 











Illinois - 1.4%

 

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

 

 

1,880

 

 

1,965,853

 

 

 

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

 

 

1,999

 

 

2,108,127

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

4,073,980

 











Louisiana - 1.9%

 

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

 

 

5,400

 

 

5,433,372

 











6



 

 

BlackRock MuniEnhanced Fund, Inc.

 

 

 

Schedule of Investments July 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 











 

State

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

Par
(000)

 

Value

 









Massachusetts - 3.7%

 

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

 

$

8,800

 

$

8,932,616

 

 

 

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

 

 

1,800

 

 

1,826,763

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

10,759,379

 











Nevada - 3.6%

 

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

 

 

3,778

 

 

3,955,982

 

 

 

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

 

 

4,499

 

 

4,751,885

 

 

 

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

 

 

1,829

 

 

1,931,160

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

10,639,027

 











New Hampshire - 2.6%

 

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

 

 

7,390

 

 

7,504,102

 











New Jersey - 5.2%

 

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

 

 

15,250

 

 

15,289,040

 











New York - 0.5%

 

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

 

 

1,260

 

 

1,349,496

 











South Carolina - 2.9%

 

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

 

 

3,120

 

 

3,176,940

 

 

 

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

 

 

2,765

 

 

2,801,940

 

 

 

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

 

 

1,010

 

 

1,019,666

 

 

 

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

 

 

1,275

 

 

1,340,943

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

8,339,489

 











Texas - 0.8%

 

Clear Creek ISD, Texas, GO, Refunding, School Building, 5.00%, 2/15/33

 

 

2,200

 

 

2,249,599

 











Virginia - 0.9%

 

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

 

 

350

 

 

355,818

 

 

 

Virginia HDA, RB, Series H, Sub-Series H1 (MBIA), 5.35%, 7/01/31

 

 

2,310

 

 

2,324,068

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

2,679,886

 











Washington - 1.4%

 

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

 

 

4,004

 

 

4,030,787

 











 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts - 39.8%

 

 

 

 

 

115,912,871

 











 

 

Total Long-Term Investments
(Cost - 500,476,951) - 164.2%

 

 

 

 

 

478,841,670

 











 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 











Pennsylvania - 3.4%

 

City of Philadelphia Pennsylvania, VRDN, GO, Multi-Mode, Refunding, Series B (FSA), 2.50%, 8/07/09 (e)

 

 

10,000

 

 

10,000,000

 











 

 

 

 

Shares

 

 

 

 










Money Market Fund - 1.4%

 

FFI Institutional Tax-Exempt Fund, 0.42% (f)(g)

 

 

4,000,000

 

 

4,000,000

 











 

 

Total Short-Term Securities
(Cost - $14,000,000) - 4.8%

 

 

 

 

 

14,000,000

 











 

 

Total Investments (Cost - $514,476,951*) - 169.0%

 

 

 

 

 

492,841,670

 

 

 

Other Assets Less Liabilities - 1.3%

 

 

 

 

 

3,626,594

 

 

 

Liability for Trust Certificates, Including Interest Expense Payable - (21.3)%

 

 

 

 

 

(62,185,573

)

 

 

Preferred Shares, at Redemption Value - (49.0)%

 

 

 

 

 

(142,605,616

)

 

 

 

 

 

 

 




 

 

Net Assets Applicable to Common Shares - 100.0%

 

 

 

 

$

291,677,075

 

 

 

 

 

 

 

 




7


 

BlackRock MuniEnhanced Fund, Inc.

 

Schedule of Investments July 31, 2009 (Unaudited)



 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

444,140,488

 

 

 




Gross unrealized appreciation

 

$

12,473,563

 

Gross unrealized depreciation

 

 

(25,886,852

)

 

 




Net unrealized depreciation

 

$

(13,413,289

)

 

 





 

 

 

 

(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 effective 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)

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

 

 

 

 

(e)

Security may have a maturity of more than one year at the time of issuance, but has variable rate and demand features that qualify it as a short-term security. The rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.

 

 

 

 

(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

 

$697,507

 

$8,364

 










 

 

 

 

(g)

Represents the current yield as of report date.

8



 

BlackRock MuniEnhanced Fund, Inc.

 

Schedule of Investments July 31, 2009 (Unaudited)



 

 

 

Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of 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 securities

 

 

 

 

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 methodology 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 annual report.

The following table summarizes the inputs used as of July 31, 2009 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 





Valuation
Inputs

 

Investments in
Securities

 






 

 

Assets

 

 

 




Level 1 - Short-Term Securities

 

$

4,000,000

 

Level 2 - Long Term Investments1

 

 

478,841,670

 

               Short-Term Securities

 

 

10,000,000

 

Level 3

 

 

 






Total

 

$

492,841,670

 

 

 





 

 

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

9


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: September 22, 2009
   
  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: September 22, 2009
   
 

By:

/s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniEnhanced Fund, Inc.
   
  Date: September 22, 2009