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: 01/31/2012

 

Item 1 – Schedule of Investments

 

 

 

 

Schedule of Investments January 31, 2012 (Unaudited)

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

 

Value

 

Alabama — 1.3%

 

 

 

 

 

 

 

County of Jefferson Alabama, RB,
Series A:

 

 

 

 

 

 

 

5.50%, 1/01/22

 

$

2,750

 

$

2,519,468

 

4.75%, 1/01/25

 

 

2,200

 

 

1,940,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,460,308

 

Alaska — 0.8%

 

 

 

 

 

 

 

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

 

 

400

 

 

414,676

 

Alaska Industrial Development & Export
Authority, RB, Providence Health
Services, Series A, 5.50%, 10/01/41

 

 

990

 

 

1,114,799

 

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

 

 

1,200

 

 

1,458,864

 

 

 

 

 

 

 

2,988,339

 

Arizona — 1.5%

 

 

 

 

 

 

 

Greater Arizona Development Authority,
RB, Series B (NPFGC), 5.00%,
8/01/35

 

 

1,300

 

 

1,370,369

 

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

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

3,250

 

 

3,686,637

 

5.00%, 10/01/29

 

 

400

 

 

440,020

 

 

 

 

 

 

 

5,497,026

 

California — 18.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.40%, 10/01/24

 

 

10,185

 

 

10,022,651

 

5.45%, 10/01/25

 

 

6,000

 

 

5,896,440

 

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

 

 

5,000

 

 

6,213,850

 

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

 

 

2,400

 

 

597,912

 

California Health Facilities Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

550

 

 

603,092

 

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

 

 

1,200

 

 

1,421,424

 

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

 

 

1,405

 

 

1,462,731

 

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

 

 

2,000

 

 

2,223,260

 

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

 

 

1,420

 

 

1,567,992

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

850

 

$

939,148

 

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

 

 

1,300

 

 

1,421,953

 

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

 

 

5,160

 

 

5,404,842

 

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

 

 

 

 

 

 

 

5.00%, 10/01/29

 

 

2,570

 

 

2,719,343

 

5.00%, 10/01/36

 

 

1,480

 

 

1,559,713

 

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

 

 

 

 

 

 

 

5.00%, 2/01/30

 

 

1,500

 

 

1,661,100

 

5.00%, 2/01/31

 

 

900

 

 

991,782

 

Poway Unified School District, GO, CAB,
School Facilities Improvement
Election of 2007, 6.27%, 8/01/36 (b)

 

 

3,750

 

 

1,063,575

 

Rio Hondo Community College District
California, GO, CAB, Election of 2004,
Series C, 6.17%, 8/01/38 (b)

 

 

5,000

 

 

1,305,550

 

San Diego Unified School District
California, GO, CAB, Election of 2008,
Series C, 6.84%, 7/01/38 (b)

 

 

1,600

 

 

415,456

 

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

 

 

2,175

 

 

2,611,784

 

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

 

 

 

 

 

 

 

5.00%, 8/01/34

 

 

700

 

 

777,070

 

5.00%, 8/01/38

 

 

600

 

 

657,972

 

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

 

 

12,740

 

 

5,612,734

 

State of California, GO:

 

 

 

 

 

 

 

5.13%, 6/01/27

 

 

20

 

 

20,046

 

5.13%, 6/01/31

 

 

60

 

 

60,116

 

Tamalpais Union High School District
California, GO, Election of 2001,
5.00%, 8/01/13 (c)

 

 

1,600

 

 

1,713,040

 

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

 

 

5,500

 

 

1,567,775

 

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

 

 

5,035

 

 

5,485,985

 

 

 

 

 

 

 

65,998,336

 

Colorado — 1.1%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,212,768

 

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

 

 

295

 

 

299,328

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2012

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Colorado (concluded)

 

 

 

 

 

 

 

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

 

$

2,000

 

$

2,252,000

 

 

 

 

 

 

 

3,764,096

 

District of Columbia — 1.6%

 

 

 

 

 

 

 

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

 

 

5,480

 

 

5,589,326

 

Florida — 13.5%

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,727,168

 

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

 

 

3,000

 

 

3,291,600

 

County of Broward Florida, RB, Water &
Sewer Utility, Series A, 5.25%,
10/01/34

 

 

850

 

 

952,748

 

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

 

 

3,925

 

 

4,171,294

 

County of Lee Florida, Refunding RB,
Series A, AMT:

 

 

 

 

 

 

 

5.63%, 10/01/26

 

 

960

 

 

1,066,032

 

5.38%, 10/01/32

 

 

3,160

 

 

3,413,179

 

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

 

 

1,400

 

 

1,610,826

 

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

 

 

4,625

 

 

5,034,867

 

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

 

 

9,900

 

 

10,144,530

 

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

 

 

 

 

 

 

 

5.13%, 6/01/27

 

 

2,000

 

 

2,277,280

 

5.38%, 10/01/29

 

 

1,050

 

 

1,195,446

 

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

 

 

1,450

 

 

1,659,032

 

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

 

 

4,050

 

 

4,316,692

 

Orange County School Board, COP,
Series A:

 

 

 

 

 

 

 

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

 

 

3,550

 

 

3,952,890

 

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

 

 

2,000

 

 

2,119,640

 

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

 

 

275

 

 

294,135

 

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

 

 

1,000

 

 

1,117,290

 

 

 

 

 

 

 

48,344,649

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Georgia — 3.6%

 

 

 

 

 

 

 

Burke County Development Authority,
RB, Oglethorpe Power-Vogtle Project,
Series C, 5.70%, 1/01/43

 

$

1,150

 

$

1,237,745

 

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

 

 

725

 

 

792,715

 

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

 

 

7,475

 

 

10,696,800

 

 

 

 

 

 

 

12,727,260

 

Illinois — 20.9%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

5,670

 

 

6,000,618

 

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

 

 

2,500

 

 

2,663,175

 

City of Chicago Illinois, GO, Board of
Education, Series A, 5.50%,
12/01/39

 

 

2,375

 

 

2,691,065

 

City of Chicago Illinois, Board of
Education, GO, Refunding:

 

 

 

 

 

 

 

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

 

 

2,875

 

 

3,569,744

 

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

 

 

725

 

 

883,521

 

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

 

 

550

 

 

606,760

 

City of Chicago Illinois, Transit Authority,
RB, Sales Tax Revenue, 5.25%,
12/01/36

 

 

595

 

 

665,210

 

City of Chicago Illinois, RB, Series A:

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,101,160

 

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

 

 

5,110

 

 

5,832,554

 

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

 

 

4,500

 

 

4,513,725

 

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

 

 

2,460

 

 

2,562,508

 

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

 

 

650

 

 

699,894

 

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

 

 

1,000

 

 

1,090,160

 

Illinois HDA, RB, Liberty Arms Senior
Apartments, Series D, AMT (AMBAC),
4.88%, 7/01/47

 

 

2,200

 

 

2,179,738

 

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

 

 

1,000

 

 

1,066,400

 

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

 

 

17,620

 

 

19,299,362

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2012

2


 

 

 

 

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) (b):

 

 

 

 

 

 

 

5.15%, 12/15/26

 

$

5,000

 

$

2,738,200

 

5.96%, 12/15/33

 

 

9,950

 

 

3,314,146

 

Metropolitan Pier & Exposition Authority,
Refunding RB, CAB, McCormick Place
Expansion Project, Series B (AGM),
6.25%, 6/15/44 (b)

 

 

3,450

 

 

595,677

 

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

 

 

675

 

 

756,891

 

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

 

 

8,800

 

 

10,719,632

 

 

 

 

 

 

 

74,550,140

 

Indiana — 1.2%

 

 

 

 

 

 

 

Indiana Finance Authority, RB, First Lien,
CWA Authority Project, Series A,
5.25%, 10/01/38

 

 

1,100

 

 

1,229,866

 

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

 

 

400

 

 

427,748

 

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

 

 

 

 

 

 

 

5.25%, 1/01/29

 

 

600

 

 

678,540

 

5.50%, 1/01/38

 

 

1,825

 

 

2,046,263

 

 

 

 

 

 

 

4,382,417

 

Iowa — 4.0%

 

 

 

 

 

 

 

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

 

 

5,725

 

 

6,313,473

 

Iowa Student Loan Liquidity Corp., RB,
Series A-2, AMT:

 

 

 

 

 

 

 

5.60%, 12/01/26

 

 

3,670

 

 

3,930,423

 

5.70%, 12/01/27

 

 

1,670

 

 

1,774,475

 

5.80%, 12/01/29

 

 

1,125

 

 

1,188,776

 

5.85%, 12/01/30

 

 

1,170

 

 

1,233,403

 

 

 

 

 

 

 

14,440,550

 

Louisiana — 1.4%

 

 

 

 

 

 

 

Jefferson Parish Hospital Service District
No. 1, Refunding RB, Jefferson
Medical Center, Series A, 6.00%,
1/01/39

 

 

420

 

 

467,141

 

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

 

 

1,250

 

 

1,476,025

 

Parish of Saint John the Baptist
Louisiana, RB, Marathon Oil Corp.,
Series A, 5.13%, 6/01/37

 

 

3,150

 

 

3,193,627

 

 

 

 

 

 

 

5,136,793

 

Massachusetts — 1.3%

 

 

 

 

 

 

 

Massachusetts HFA, Refunding RB,
AMT:

 

 

 

 

 

 

 

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

 

 

625

 

 

633,838

 

Series C, 5.35%, 12/01/42

 

 

1,150

 

 

1,208,822

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Massachusetts (concluded)

 

 

 

 

 

 

 

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

 

$

2,700

 

$

2,957,580

 

 

 

 

 

 

 

4,800,240

 

Michigan — 6.0%

 

 

 

 

 

 

 

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

 

 

500

 

 

631,125

 

City of Detroit Michigan, RB, Series B,
Second Lien (AGM):

 

 

 

 

 

 

 

6.25%, 7/01/36

 

 

400

 

 

463,928

 

7.00%, 7/01/36

 

 

200

 

 

242,026

 

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

 

 

2,500

 

 

2,845,325

 

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

 

 

425

 

 

460,891

 

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

 

 

1,700

 

 

1,973,666

 

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

 

 

1,500

 

 

1,513,485

 

Michigan State Building Authority,
Refunding RB, Facilities Program:

 

 

 

 

 

 

 

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

 

 

145

 

 

163,698

 

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

 

 

700

 

 

787,843

 

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

 

 

900

 

 

1,009,710

 

Michigan State Finance Authority,
Refunding RB, Trinity Health, 5.00%,
12/01/39

 

 

4,300

 

 

4,560,322

 

Michigan State Housing Development
Authority, RB, Series C, AMT, 5.50%,
12/01/28

 

 

1,100

 

 

1,154,604

 

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

 

 

 

 

 

 

 

Series A, 5.50%, 6/01/30

 

 

1,300

 

 

1,322,087

 

Series C, 5.45%, 12/15/32

 

 

4,300

 

 

4,331,390

 

 

 

 

 

 

 

21,460,100

 

Minnesota — 0.8%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,951,200

 

Nevada — 3.1%

 

 

 

 

 

 

 

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

 

 

1,250

 

 

1,285,337

 

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

 

 

850

 

 

991,823

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2012

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Nevada (concluded)

 

 

 

 

 

 

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

$

3,800

 

$

4,143,710

 

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

 

 

75

 

 

71,242

 

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

 

 

1,275

 

 

1,322,506

 

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

 

 

3,200

 

 

3,284,032

 

 

 

 

 

 

 

11,098,650

 

New Jersey — 6.8%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

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

 

 

600

 

 

621,936

 

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

 

 

305

 

 

316,529

 

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

 

 

3,125

 

 

3,352,656

 

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

 

 

7,800

 

 

8,368,230

 

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

 

 

2,000

 

 

2,306,940

 

New Jersey Higher Education Assistance
Authority, RB, Series 1, AMT, 5.50%,
12/01/26

 

 

600

 

 

653,388

 

New Jersey Higher Education Student
Assistance Authority, RB, Series 1,
AMT, 5.75%, 12/01/27

 

 

3,870

 

 

4,280,530

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System:

 

 

 

 

 

 

 

Series A, 5.50%, 6/15/41

 

 

2,000

 

 

2,294,780

 

Series B, 5.25%, 6/15/36

 

 

1,825

 

 

2,053,399

 

 

 

 

 

 

 

24,248,388

 

New York — 4.6%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,707,510

 

Hudson New York Yards Infrastructure
Corp., RB, Series A, Series A, 5.75%,
2/15/47

 

 

700

 

 

791,007

 

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

 

 

4,000

 

 

4,983,920

 

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

 

 

 

 

 

 

 

5.50%, 1/15/33

 

 

1,600

 

 

1,828,896

 

5.50%, 1/15/34

 

 

2,750

 

 

3,134,230

 

New York HFA, RB, Affordable Housing,
Series B, 5.30%, 11/01/37

 

 

2,500

 

 

2,586,075

 

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

 

 

1,200

 

 

1,415,220

 

 

 

 

 

 

 

16,446,858

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

North Carolina — 0.2%

 

 

 

 

 

 

 

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

 

$

850

 

$

862,104

 

Ohio — 0.5%

 

 

 

 

 

 

 

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

 

 

530

 

 

646,028

 

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

 

 

1,025

 

 

1,093,921

 

 

 

 

 

 

 

1,739,949

 

Pennsylvania — 0.8%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,544,880

 

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

 

 

575

 

 

696,526

 

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

 

 

400

 

 

456,312

 

 

 

 

 

 

 

2,697,718

 

Puerto Rico — 3.2%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB:

 

 

 

 

 

 

 

CAB, Series C, 6.04%,
8/01/38 (b)

 

 

8,000

 

 

1,969,440

 

First Sub-Series A, 6.38%,
8/01/39

 

 

3,200

 

 

3,735,648

 

First Sub-Series A, 6.00%,
8/01/42

 

 

2,275

 

 

2,573,616

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, First Sub-Series C,
6.00%, 8/01/39

 

 

1,180

 

 

1,352,304

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, CAB, Series A (NPFGC),
5.68%, 8/01/41 (b)

 

 

8,500

 

 

1,695,495

 

 

 

 

 

 

 

11,326,503

 

Rhode Island — 0.7%

 

 

 

 

 

 

 

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

 

 

2,275

 

 

2,601,781

 

South Carolina — 1.3%

 

 

 

 

 

 

 

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

 

 

115

 

 

133,878

 

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

 

 

1,000

 

 

1,137,020

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2012

4


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

South Carolina (concluded)

 

 

 

 

 

 

 

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

 

$

3,000

 

$

3,303,570

 

 

 

 

 

 

 

4,574,468

 

Tennessee — 2.6%

 

 

 

 

 

 

 

Memphis Center City Revenue Finance
Corp., RB, Subordinate, Pyramid &
Pinch District, Series B, (AGM), 5.25%,
11/01/30

 

 

2,955

 

 

3,357,973

 

Metropolitan Government of Nashville &
Davidson County Health &
Educational Facilities Board,

 

 

 

 

 

 

 

Refunding RB, Vanderbilt University,
Series B, 5.50%, 10/01/29

 

 

5,000

 

 

6,067,650

 

 

 

 

 

 

 

9,425,623

 

Texas — 10.1%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

6.00%, 11/15/35

 

 

2,100

 

 

2,530,962

 

5.38%, 11/15/38

 

 

1,350

 

 

1,528,227

 

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

 

 

13,000

 

 

13,232,960

 

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

 

 

1,725

 

 

1,930,568

 

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

 

 

 

 

 

 

 

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

 

 

3,800

 

 

4,268,958

 

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

 

 

4,015

 

 

4,571,238

 

North Texas Tollway Authority,
Refunding RB, First Tier:

 

 

 

 

 

 

 

Series A, 6.00%, 1/01/28

 

 

2,795

 

 

3,263,834

 

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

 

 

1,600

 

 

1,735,648

 

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

 

 

3,150

 

 

3,175,389

 

 

 

 

 

 

 

36,237,784

 

Washington — 1.8%

 

 

 

 

 

 

 

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

 

 

1,600

 

 

1,745,696

 

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

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

900

 

 

955,683

 

5.25%, 10/01/39

 

 

625

 

 

676,675

 

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

 

 

2,800

 

 

3,054,324

 

 

 

 

 

 

 

6,432,378

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Wisconsin — 0.4%

 

 

 

 

 

 

 

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

 

$

1,375

 

$

1,492,026

 

Total Municipal Bonds – 113.6%

 

 

 

 

 

406,275,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Arizona — 0.8%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,350,000

 

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

 

 

1,500

 

 

1,642,755

 

 

 

 

 

 

 

2,992,755

 

California — 4.2%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,734,525

 

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

 

 

7,458

 

 

7,675,452

 

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

 

 

404

 

 

463,565

 

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

 

 

2,810

 

 

3,039,718

 

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

 

 

840

 

 

988,386

 

 

 

 

 

 

 

14,901,646

 

Colorado — 0.3%

 

 

 

 

 

 

 

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

 

 

900

 

 

995,971

 

District of Columbia — 1.0%

 

 

 

 

 

 

 

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

 

 

1,005

 

 

1,215,065

 

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

 

 

1,770

 

 

2,211,214

 

 

 

 

 

 

 

3,426,279

 

Florida — 6.8%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.00%, 10/01/32

 

 

4,000

 

 

4,303,680

 

5.00%, 10/01/37

 

 

7,500

 

 

8,021,625

 

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

 

 

1,349

 

 

1,470,683

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2012

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 (d)

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

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

 

$

10,000

 

$

10,610,000

 

 

 

 

 

 

 

24,405,988

 

Georgia — 5.2%

 

 

 

 

 

 

 

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

 

 

17,356

 

 

18,620,787

 

Illinois — 3.0%

 

 

 

 

 

 

 

City of Chicago Illinois, RB, Sale Tax
Revenue, Series A, 5.00%, 1/01/41

 

 

3,430

 

 

3,797,216

 

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

 

 

1,880

 

 

2,069,497

 

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

 

 

4,399

 

 

4,870,774

 

 

 

 

 

 

 

10,737,487

 

Louisiana — 1.6%

 

 

 

 

 

 

 

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

 

 

5,400

 

 

5,749,974

 

Massachusetts — 3.3%

 

 

 

 

 

 

 

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

 

 

10,600

 

 

11,834,749

 

Nevada — 3.3%

 

 

 

 

 

 

 

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

 

 

3,778

 

 

4,364,108

 

Clark County Water Reclamation
District, GO, Series B:

 

 

 

 

 

 

 

5.50%, 7/01/29

 

 

4,499

 

 

5,290,625

 

5.75%, 7/01/34

 

 

1,829

 

 

2,171,073

 

 

 

 

 

 

 

11,825,806

 

New York — 1.6%

 

 

 

 

 

 

 

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

 

 

1,260

 

 

1,471,981

 

Port Authority of New York & New Jersey,
RB, Construction One Hundred Forty-
Third, 5.00%, 10/01/30

 

 

2,500

 

 

2,664,075

 

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

 

 

1,300

 

 

1,483,534

 

 

 

 

 

 

 

5,619,590

 

Ohio — 0.2%

 

 

 

 

 

 

 

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

 

 

580

 

 

641,689

 

Puerto Rico — 0.7%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, Series C, 5.25%, 8/01/40

 

 

2,380

 

 

2,643,014

 

 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

South Carolina — 2.6%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 12/01/28

 

$

3,120

 

$

3,466,570

 

5.25%, 12/01/29

 

 

2,765

 

 

3,066,744

 

5.25%, 12/01/30

 

 

1,010

 

 

1,118,262

 

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

 

 

1,275

 

 

1,449,700

 

 

 

 

 

 

 

9,101,276

 

South Dakota — 0.7%

 

 

 

 

 

 

 

South Dakota HDA, RB, Homeownership
Mortgage Series K, 5.05%, 5/01/36

 

 

2,500

 

 

2,521,025

 

Texas — 1.2%

 

 

 

 

 

 

 

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

 

 

2,200

 

 

2,593,261

 

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

 

 

1,600

 

 

1,769,680

 

 

 

 

 

 

 

4,362,941

 

Utah — 1.6%

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,557,550

 

Virginia — 0.1%

 

 

 

 

 

 

 

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

 

 

350

 

 

391,318

 

Washington — 1.2%

 

 

 

 

 

 

 

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

 

 

4,004

 

 

4,439,777

 

Wisconsin — 0.4%

 

 

 

 

 

 

 

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

 

 

1,430

 

 

1,521,675

 

Total Municipal Bonds Transferred to Tender Option
Bond (TOB) Trusts – 39.8%

 

 

 

 

 

142,291,297

 

Total Long-Term Investments
(Cost – $501,487,864) – 153.4%

 

 

 

 

 

548,566,307

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

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

 

 

14,467,795

 

 

14,467,795

 

Total Short-Term Securities
(Cost – $14,467,795) – 4.0%

 

 

 

 

 

14,467,795

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2012

6


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

Value

 

Total Investments (Cost - $515,955,659*) 157.4%

 

$

563,034,102

 

Other Assets Less Liabilities – 1.5%

 

 

5,457,973

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (19.1)%

 

 

(68,308,112

)

VRDP Shares, at Liquidation Value – (39.8)%

 

 

(142,500,000

)

Net Assets – 100.0%

 

$

357,683,963

 

 

 

*

As of January 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

 

 

 

 

Tax Cost

 

$

448,177,902

 

Gross unrealized appreciation

 

$

47,209,538

 

Gross unrealized depreciation

 

 

(635,421

)

Net unrealized appreciation

 

$

46,574,117

 

 

 

(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)

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 bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

 

(e)

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
January 31,
2012

 

Income

 

FFI Institutional Tax-Exempt Fund

 

 

3,470,954

 

 

10,996,841

 

 

14,467,795

 

$

3,117

 

 

 

(f)

Represents the current yield as of report date.


 

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.

GARB

General Airport Revenue Bonds

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 Financial Guaranty

RB

Revenue Bonds

S/F

Single-Family

Syncora

Syncora Guarantee

 

 

•

Financial futures contracts sold as of January 31, 2012 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

40

 

10-Year US
Treasury
Note

 

Chicago
Board of
Trade

 

March
2012

 

$

5,290,000

 

$

(70,076

)

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:


 

 

 

 

•

Level 1 — unadjusted 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)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. 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 semi-annual report.

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2012

7


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniEnhanced Fund, Inc. (MEN)

The following tables summarize the inputs used as of January 31, 2012 in determining the fair valuation of Fund’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

—

 

$

548,566,307

 

 

—

 

$

548,566,307

 

Short-Term Securities

 

$

14,467,795

 

 

—

 

 

—

 

 

14,467,795

 

Total

 

$

14,467,795

 

$

548,566,307

 

 

—

 

$

563,034,102

 

 

 

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

 

$

(70,076

)

 

—

 

 

—

 

$

(70,076

)

 

 

2

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

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIENHANCED FUND, INC.

JANUARY 31, 2012

8

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 23, 2012
   
  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 23, 2012
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniEnhanced Fund, Inc.
     
  Date: March 23, 2012