N-Q 1 e604825_nq-munenh.txt 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: Donald C. Burke, Chief Executive Officer, BlackRock MuniEnhanced Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011 Registrant's telephone number, including area code: (800) 882-0052, Option 4 Date of fiscal year end: 01/31/2009 Date of reporting period: 08/01/2008 - 10/31/2008 Item 1 - Schedule of Investments BlackRock MuniEnhanced Fund, Inc. Schedule of Investments October 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
Par State Municipal Bonds (000) Value ----------------------------------------------------------------------------------------------------------------------------------- Alabama - 1.6% Jefferson County, Alabama, Limited Obligation School Warrants, Series A, 5.50%, 1/01/22 $ 2,750 $ 2,308,103 Jefferson County, Alabama, Limited Obligation School Warrants, Series A, 4.75%, 1/01/25 2,200 1,709,290 -------------- 4,017,393 ----------------------------------------------------------------------------------------------------------------------------------- Arizona - 0.6% Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5%, 12/01/37 2,640 1,589,306 ----------------------------------------------------------------------------------------------------------------------------------- California - 32.1% Alameda Corridor Transportation Authority, California, Capital Appreciation Revenue Refunding Bonds, Subordinate Lien, Series A, 5.522%, 10/01/24 (a) 10,285 8,243,633 Alameda Corridor Transportation Authority, California, Capital Appreciation Revenue Refunding Bonds, Subordinate Lien, Series A, 5.495%, 10/01/25 (a)(b) 6,000 4,797,660 Anaheim, California, Public Financing Authority, Lease Revenue Bonds (Public Improvements Project), Senior Series A, 6%, 9/01/24 (c) 5,000 5,360,350 Antelope Valley, California, Community College District, GO (Election of 2004), Series B, 5.25%, 8/01/39 (d) 600 559,596 Arcadia, California, Unified School District, GO (Election of 2006), CABS, Series A, 4.96%, 8/01/39 (b)(c) 1,600 215,120 Cabrillo, California, Community College District, GO (Election of 2004), Series B, 5.20%, 8/01/37 (b)(d) 2,400 366,552 California State, GO, Refunding, 5.125%, 6/01/27 20 18,888 California State, GO, Refunding, 5.125%, 6/01/31 60 55,146 California State, GO, Refunding, 5.25%, 2/01/33 (e) 4,400 4,097,456 California State Various Purpose, GO, 5.50%, 11/01/33 8,490 8,177,653 California State University, Systemwide Revenue Bonds, Series A, 5%, 11/01/35 (d)(f) 2,600 2,321,228 Chino Valley, California, Unified School District, GO (Election of 2002), Series C, 5.25%, 8/01/30 (d) 850 815,872 East Side Union High School District, California, Santa Clara County, GO (Election of 2002), Series D, 5%, 8/01/26 (g) 1,600 1,484,256 Fresno, California, Unified School District, GO (Election of 2001), Series E, 5%, 8/01/30 (c) 900 836,775
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 list below. AMT Alternative Minimum Tax (subject to) CABS Certificates of Participation COP Certificates of Participation EDA Economic Development Authority GO General Obligation Bonds HDA Housing Development Authority HFA Housing Finance Agency IDA Industrial Development Authority IDR Industrial Development Revenue Bonds PCR Pollution Control Revenue Bonds S/F Single-Family SIFMA Securities Industry and Financial Markets Association BlackRock MuniEnhanced Fund, Inc. Schedule of Investments October 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
Par State Municipal Bonds (000) Value ----------------------------------------------------------------------------------------------------------------------------------- Los Angeles, California, Department of Water and Power, Waterworks Revenue Bonds, Series C, 5%, 7/01/29 (d) $ 5,160 $ 4,831,256 Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Series B-1, 5%, 10/01/29 (d)(f) 2,965 2,831,605 Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Series B-1, 5%, 10/01/36 (d)(f) 1,655 1,526,936 Norco, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Norco Redevelopment Project - Area Number 1), 5.125%, 3/01/30 (d) 5,000 4,694,200 Orange County, California, Sanitation District, COP, 5%, 2/01/33 (d)(f) 7,455 6,691,981 Orange County, California, Sanitation District, COP, Series B, 5%, 2/01/30 (c) 1,500 1,383,600 Orange County, California, Sanitation District, COP, Series B, 5%, 2/01/31 (c) 900 823,167 Poway, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Paguay Redevelopment Project), 5.125%, 6/15/33 (a) 1,750 1,486,625 Redding, California, Electric System, COP, Series A, 5%, 6/01/30 (c) 1,720 1,585,513 Sacramento, California, Unified School District, GO (Election of 2002), 5%, 7/01/30 (d) 4,150 3,839,414 Stockton, California, Public Financing Authority, Lease Revenue Bonds (Parking & Capital Projects), 5.125%, 9/01/30 (f) 6,145 5,447,051 Ventura County, California, Community College District, GO (Election of 2002), Series B, 5%, 8/01/30 (d) 2,325 2,115,285 West Basin, California, Municipal Water District, COP, Refunding, Series B, 5%, 8/01/30 (h) 5,035 4,645,492 West Basin, California, Municipal Water District, COP, Refunding, Series B, 5%, 8/01/31 (h) 3,250 2,981,095 -------------- 82,233,405 ----------------------------------------------------------------------------------------------------------------------------------- Colorado - 3.9% Colorado HFA, Revenue Bonds (S/F Program), AMT, Senior Series A-1, 7.40%, 11/01/27 15 15,000 Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series A-2, 7.50%, 4/01/31 450 473,908 Colorado Health Facilities Authority Revenue Bonds (Catholic Health Initiatives), Series A, 5.50%, 3/01/32 (i) 50 50,237 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement Communities, Inc.), Series A, 5.50%, 12/01/27 (e) 1,200 995,460 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement Communities, Inc.), Series A, 5.50%, 12/01/33 (e) 675 527,742 Denver, Colorado, City and County Airport, Revenue Refunding Bonds, AMT, Series A, 6%, 11/15/18 (a) 2,000 1,921,340 El Paso County, Colorado, School District Number 49, Falcon, GO, Series A, 6%, 12/01/09 (c)(j) 5,450 5,970,039 -------------- 9,953,726 ----------------------------------------------------------------------------------------------------------------------------------- District of Columbia - 3.3% District of Columbia, Ballpark Revenue Bonds, Series B-1, 5%, 2/01/31 (d)(f) 10,000 8,475,700 -----------------------------------------------------------------------------------------------------------------------------------
BlackRock MuniEnhanced Fund, Inc. Schedule of Investments October 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
Par State Municipal Bonds (000) Value ----------------------------------------------------------------------------------------------------------------------------------- Florida - 4.3% Broward County, Florida, School Board, COP, Series A, 5.25%, 7/01/33 (c) $ 1,600 $ 1,455,952 Duval County, Florida, School Board, COP (Master Lease Program), 5%, 7/01/33 (c) 2,300 2,008,337 Hillsborough County, Florida, Aviation Authority Revenue Bonds, AMT, Series A, 5.375%, 10/01/33 (h) 1,750 1,398,600 Miami-Dade County, Florida, School Board, COP, Refunding, Series B, 5.25%, 5/01/31 (h) 1,800 1,702,386 Miami, Florida, Special Obligation Revenue Bonds (Street and Sidewalk Improvement Program), 5%, 1/01/37 (d) 820 690,596 Orange County, Florida, Sales Tax Revenue Refunding Bonds, Series B, 5.125%, 1/01/32 (d)(f) 4,200 3,776,724 -------------- 11,032,595 ----------------------------------------------------------------------------------------------------------------------------------- Georgia - 7.0% Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5%, 11/01/34 (c) 2,900 2,572,735 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5%, 11/01/33 (d) 1,000 859,820 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5%, 11/01/39 (d) 4,250 3,694,015 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25%, 10/01/39 (c) 2,300 2,248,296 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds, Series EE, 7%, 1/01/25 (a) 7,725 8,474,325 -------------- 17,849,191 ----------------------------------------------------------------------------------------------------------------------------------- Illinois - 19.8% Chicago, Illinois, O'Hare International Airport, General Airport Revenue Bonds, Third Lien, AMT, Series B-2, 5.75%, 1/01/23 (c) 5,670 5,100,052 Chicago, Illinois, O'Hare International Airport, General Airport Revenue Bonds, Third Lien, AMT, Series B-2, 6%, 1/01/29 (g) 2,500 2,209,675 Chicago, Illinois, O'Hare International Airport, General Airport Revenue Refunding Bonds, Third Lien, AMT, Series A, 5.75%, 1/01/21 (d) 9,100 8,302,658 Cook County, Illinois, Capital Improvement, GO, Series C, 5.50%, 11/15/12 (a)(j) 2,460 2,677,612 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds, 5.341%, 6/15/30 (a)(b) 20,120 16,905,830 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds, 5%, 6/15/32 (a) 4,500 4,099,005 Regional Transportation Authority, Illinois, Revenue Bonds, Series A, 7.20%, 11/01/20 (a) 10,115 11,568,627 -------------- 50,863,459 ----------------------------------------------------------------------------------------------------------------------------------- Louisiana - 6.2% Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue Bonds (Capital Projects and Equipment Acquisition Program), Series A, 6.30%, 7/01/30 (a) 3,600 3,123,144 Louisiana State Gas and Fuels Tax Revenue Bonds, Series A, 5%, 5/01/36 (c) 5,400 4,756,050 Louisiana State Gas and Fuels Tax Revenue Bonds, Series A, 4.75%, 5/01/39 (c) 4,075 3,288,851
BlackRock MuniEnhanced Fund, Inc. Schedule of Investments October 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
Par State Municipal Bonds (000) Value ----------------------------------------------------------------------------------------------------------------------------------- Louisiana State Transportation Authority, Senior Lien Toll Revenue Capital Appreciation Bonds, Series B, 5.31%, 12/01/27 (a)(b) $ 3,735 $ 1,061,973 Rapides Financing Authority, Louisiana, Revenue Bonds (Cleco Power LLC Project), AMT, 4.70%, 11/01/36 (a) 3,650 2,468,276 Terrebonne Parish, Louisiana, Hospital Service District Number 1, Hospital Revenue Bonds (Terrebonne General Medical Center Project), 5.50%, 4/01/33 (a) 1,400 1,157,240 -------------- 15,855,534 ----------------------------------------------------------------------------------------------------------------------------------- Massachusetts - 5.2% Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT, Series F, 5.25%, 1/01/46 (c) 5,600 4,147,360 Massachusetts State, HFA, S/F Housing Revenue Bonds, AMT, Series 128, 4.80%, 12/01/27 (c) 1,600 1,226,768 Massachusetts State Port Authority, Special Facilities Revenue Bonds (Delta Air Lines, Inc. Project), AMT, Series A, 5.50%, 1/01/16 (a) 3,100 2,480,372 Massachusetts State Port Authority, Special Facilities Revenue Bonds (Delta Air Lines, Inc. Project), AMT, Series A, 5.50%, 1/01/18 (a) 4,000 3,200,280 Massachusetts State Port Authority, Special Facilities Revenue Bonds (Delta Air Lines, Inc. Project), AMT, Series A, 5.50%, 1/01/19 (a) 2,775 2,192,444 -------------- 13,247,224 ----------------------------------------------------------------------------------------------------------------------------------- Michigan - 5.3% Detroit, Michigan, Sewage Disposal System, Second Lien Revenue Bonds, Series B, 5%, 7/01/36 (d)(f) 3,600 3,035,736 Detroit, Michigan, Sewage Disposal System, Second Lien Revenue Refunding Bonds, Series E, 5.75%, 7/01/31 (f)(k) 2,500 2,505,275 Michigan Higher Education Student Loan Authority, Student Loan Revenue Refunding Bonds, AMT, Series XVII-G, 5.20%, 9/01/20 (a) 1,700 1,465,451 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company Pollution Control Project), AMT, Series A, 5.50%, 6/01/30 (g) 1,300 1,065,766 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company Pollution Control Project), AMT, Series C, 5.65%, 9/01/29 (g) 2,500 2,125,325 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company Pollution Control Project), AMT, Series C, 5.45%, 12/15/32 (g) 4,300 3,433,464 -------------- 13,631,017 ----------------------------------------------------------------------------------------------------------------------------------- Minnesota - 1.0% Dakota County, Minnesota, Community Development Agency, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), Series B, 5.15%, 12/01/38 (l)(m)(n) 2,983 2,561,183 ----------------------------------------------------------------------------------------------------------------------------------- Nebraska - 0.6% Washington County, Nebraska, Wastewater Facilities Revenue Bonds (Cargill Inc. Project), AMT, 5.90%, 11/01/27 1,600 1,473,552 -----------------------------------------------------------------------------------------------------------------------------------
BlackRock MuniEnhanced Fund, Inc. Schedule of Investments October 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
Par State Municipal Bonds (000) Value ----------------------------------------------------------------------------------------------------------------------------------- Nevada - 3.7% Carson City, Nevada, Hospital Revenue Bonds (Carson-Tahoe Hospital Project), Series A, 5.50%, 9/01/33 (e) $ 3,100 $ 2,388,736 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2, 5%, 7/01/30 (d)(f) 1,500 1,298,100 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2, 5%, 7/01/36 (d)(f) 3,200 2,650,880 Clark County, Nevada, IDR (Southwest Gas Corporation Project), AMT, Series A, 4.75%, 9/01/36 (f) 3,920 2,258,547 Clark County, Nevada, IDR (Southwest Gas Corporation Project), AMT, Series D, 5.25%, 3/01/38 (d)(f) 1,300 816,790 -------------- 9,413,053 ----------------------------------------------------------------------------------------------------------------------------------- New Jersey - 8.3% New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/31 (e) 600 442,248 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75%, 6/15/34 (e) 1,065 795,395 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25%, 7/01/31 (d) 9,325 8,839,354 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25%, 7/01/33 (d) 7,800 7,308,132 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O, 5.125%, 3/01/28 3,960 3,816,212 -------------- 21,201,341 ----------------------------------------------------------------------------------------------------------------------------------- New York - 4.0% Erie County, New York, IDA, School Facility Revenue Bonds (City of Buffalo Project), Series A, 5.75%, 5/01/28 (c) 1,500 1,509,015 Metropolitan Transportation Authority, New York, Revenue Bonds, Series C, 6.50%, 11/15/28 4,000 4,223,160 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series A, 5%, 11/15/32 (f) 2,250 1,939,905 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Series A, 5.75%, 6/15/40 450 448,533 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1, 5.25%, 6/01/22 (a) 2,400 2,287,800 -------------- 10,408,413 ----------------------------------------------------------------------------------------------------------------------------------- Pennsylvania - 1.0% Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 99A, 5.25%, 10/01/32 1,500 1,189,965 Philadelphia, Pennsylvania, School District, GO, Series E, 6%, 9/01/38 1,400 1,362,004 -------------- 2,551,969 ----------------------------------------------------------------------------------------------------------------------------------- Rhode Island - 3.2% Providence, Rhode Island, Public Building Authority, General Revenue Bonds, Series A, 6.25%, 12/15/10 (c)(j) 4,345 4,726,404 Rhode Island State Economic Development Corporation, Airport Revenue Bonds, Series B, 6.50%, 7/01/10 (f)(j) 3,355 3,584,784 -------------- 8,311,188 ----------------------------------------------------------------------------------------------------------------------------------- South Carolina - 2.6% Berkeley County, South Carolina, School District, Installment Lease Revenue Bonds (Securing Assets for Education Project), 5.125%, 12/01/30 3,800 3,395,832 Kershaw County, South Carolina, Public Schools Foundation, Installment Power Revenue Refunding Bonds, 5%, 12/01/29 (o) 2,365 2,073,798
BlackRock MuniEnhanced Fund, Inc. Schedule of Investments October 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
Par State Municipal Bonds (000) Value ----------------------------------------------------------------------------------------------------------------------------------- South Carolina State Public Service Authority, Revenue Refunding Bonds, Series A, 5.50%, 1/01/38 $ 1,275 $ 1,216,223 -------------- 6,685,853 ----------------------------------------------------------------------------------------------------------------------------------- Tennessee - 0.9% Knox County, Tennessee, Health, Educational and Housing Facilities Board, Hospital Facilities Revenue Refunding Bonds (Covenant Health), Series A, 5.04%, 1/01/38 (b) 5,500 601,425 Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series A, 5.25%, 9/01/26 2,610 1,834,178 -------------- 2,435,603 ----------------------------------------------------------------------------------------------------------------------------------- Texas - 14.8% Clear Creek, Texas, Independent School District, GO, Refunding, 5%, 2/15/33 2,200 2,058,958 Dallas-Fort Worth, Texas, International Airport, Joint Revenue Bonds, AMT, Series B, 6%, 11/01/23 (d) 600 545,340 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, AMT, Series A, 5.50%, 11/01/33 (d) 14,500 11,660,465 Lewisville, Texas, Independent School District, Capital Appreciation and School Building, GO, Refunding, 4.67%, 8/15/24 (b)(d)(f) 4,475 1,684,972 Mansfield, Texas, Independent School District, GO, 5%, 2/15/33 1,725 1,614,410 Matagorda County, Texas, Navigation District Number 1, PCR, Refunding (Central Power and Light Company Project), AMT, 5.20%, 5/01/30 (d) 2,500 1,977,025 North Harris County, Texas, Regional Water Authority, Senior Lien Revenue Bonds, 5.125%, 12/15/35 (d) 5,820 5,030,342 North Texas Tollway Authority, System Revenue Refunding Bonds, First Tier, 5.75%, 1/01/40 (d) 1,600 1,484,464 North Texas Tollway Authority, System Revenue Refunding Bonds, First Tier, Series A, 6%, 1/01/25 625 613,538 North Texas Tollway Authority, System Revenue Refunding Bonds, First Tier, Series K-1, 5.75%, 1/01/38 (h) 3,800 3,664,492 Texas State Affordable Housing Corporation, S/F Mortgage Revenue Bonds (Professional Educators Home Loan Program), AMT, Series A-1, 5.50%, 12/01/39 (l)(m)(n) 1,570 1,358,284 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier, Series A, 5.50%, 8/15/39 (a) 7,250 6,341,358 -------------- 38,033,648 ----------------------------------------------------------------------------------------------------------------------------------- Utah - 1.8% Utah Transit Authority, Sales Tax Revenue Bonds, Series A, 5%, 6/15/36 (c) 5,000 4,626,700 ----------------------------------------------------------------------------------------------------------------------------------- Vermont - 0.8% Vermont HFA, S/F Housing Revenue Bonds, AMT, Series 27, 4.85%, 11/01/32 (c) 3,025 2,200,567 ----------------------------------------------------------------------------------------------------------------------------------- Virginia - 4.4% Fairfax County, Virginia, EDA, Resource Recovery Revenue Refunding Bonds, AMT, Series A, 6.10%, 2/01/10 (a) 9,105 9,280,635
BlackRock MuniEnhanced Fund, Inc. Schedule of Investments October 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
Par State Municipal Bonds (000) Value ----------------------------------------------------------------------------------------------------------------------------------- Halifax County, Virginia, IDA, Exempt Facility Revenue Refunding Bonds (Old Dominion Electric Cooperative Project), AMT, 5.625%, 6/01/28 (a) $ 2,300 $ 1,967,673 -------------- 11,248,308 ----------------------------------------------------------------------------------------------------------------------------------- Washington - 1.0% Port of Tacoma, Washington, GO, AMT, Series B, 4.875%, 12/01/38 (h) 515 403,781 Snohomish County, Washington, Public Utility District Number 001, Electric Revenue Refunding Bonds, 5.375%, 12/01/09 (c)(j) 2,000 2,094,180 -------------- 2,497,961 ----------------------------------------------------------------------------------------------------------------------------------- Wisconsin - 0.9% Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Ascension Health), 5%, 11/15/31 (c) 2,575 2,299,887 ----------------------------------------------------------------------------------------------------------------------------------- Total Municipal Bonds - 138.3% 354,697,776 ----------------------------------------------------------------------------------------------------------------------------------- Municipal Bonds Transferred to Tender Option Bond Trusts (p) ----------------------------------------------------------------------------------------------------------------------------------- Alabama - 0.5% University of Alabama, General Revenue Bonds, Series A, 5%, 7/01/34 (d) 1,395 1,255,402 ----------------------------------------------------------------------------------------------------------------------------------- California - 1.9% Anaheim, California, Public Financing Authority, Electric System Distribution Facilities Revenue Bonds, Series A, 5%, 10/01/31 (c) 959 872,936 San Diego County, California, Water Authority, Water Revenue Refunding Bonds, COP, Series A, 5%, 5/01/33 (c) 2,810 2,558,898 Tamalpais, California, Union High School District, GO (Election of 2001), 5%, 8/01/28 (c) 1,605 1,477,242 -------------- 4,909,076 ----------------------------------------------------------------------------------------------------------------------------------- Florida - 7.0% Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International Airport), AMT, 5%, 10/01/40 (g) 9,900 7,094,491 Miami-Dade County, Florida, School Board, COP, Refunding, Series B, 5%, 5/01/33 (h) 12,000 10,825,080 -------------- 17,919,571 ----------------------------------------------------------------------------------------------------------------------------------- Georgia - 6.4% Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series B, 5.25%, 1/01/33 (c) 17,356 16,297,221 ----------------------------------------------------------------------------------------------------------------------------------- Illinois - 0.8% Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Refunding Bonds (McCormick Place Expansion Project), Series B, 5.75%, 6/15/23 (d) 1,999 2,046,927 ----------------------------------------------------------------------------------------------------------------------------------- Massachusetts - 3.9% Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds, Series A, 5%, 8/15/30 (c) 10,600 10,046,529 ----------------------------------------------------------------------------------------------------------------------------------- New Hampshire - 2.8% New Hampshire Health and Education Facilities Authority Revenue Bonds (Dartmouth-Hitchcock Obligation Group), 5.50%, 8/01/27 (c) 7,391 7,262,815 ----------------------------------------------------------------------------------------------------------------------------------- New Jersey - 7.3% New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/24 (h) 15,250 14,104,115 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/31 (h) 5,000 4,509,650 -------------- 18,613,765 ----------------------------------------------------------------------------------------------------------------------------------- South Carolina - 5.8% Charleston Educational Excellence Financing Corporation, South Carolina, Revenue Bonds (Charleston County School District), 5.25%, 12/01/28 (h) 3,120 3,025,714 Charleston Educational Excellence Financing Corporation, South Carolina, Revenue Bonds (Charleston County School District), 5.25%, 12/01/29 (h) 2,765 2,649,285
BlackRock MuniEnhanced Fund, Inc. Schedule of Investments October 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
Municipal Bonds Transferred to Par State Tender Option Bond Trusts (p) (000) Value ----------------------------------------------------------------------------------------------------------------------------------- Charleston Educational Excellence Financing Corporation, South Carolina, Revenue Bonds (Charleston County School District), 5.25%, 12/01/30 (h) $ 1,010 $ 955,682 Scago Educational Facilities Corporation for Pickens County School District, South Carolina, Revenue Bonds, 5%, 12/01/31 (c) 9,200 8,215,968 -------------- 14,846,649 ----------------------------------------------------------------------------------------------------------------------------------- Virginia - 0.8% Virginia State, HDA, Commonwealth Mortgage Revenue Bonds, Series H, Sub-Series H-1, 5.35%, 7/01/31 (d) 2,310 2,095,909 ----------------------------------------------------------------------------------------------------------------------------------- Washington - 1.4% Central Puget Sound Regional Transportation Authority, Washington, Sales and Use Tax Revenue Bonds, Series A, 5%, 11/01/32 (c) 4,004 3,669,336 ----------------------------------------------------------------------------------------------------------------------------------- Total Municipal Bonds Transferred to Tender Option Bond Trusts - 38.6% 98,963,200 ----------------------------------------------------------------------------------------------------------------------------------- Total Long-Term Investments (Cost - $509,957,282) - 176.9% 453,660,976 ----------------------------------------------------------------------------------------------------------------------------------- Short-Term Securities Shares ----------------------------------------------------------------------------------------------------------------------------------- Merrill Lynch Institutional Tax-Exempt Fund, 1.63% (q)(r) 18,400,000 18,400,000 ----------------------------------------------------------------------------------------------------------------------------------- Total Short-Term Securities (Cost - $18,400,000) - 7.2% 18,400,000 ----------------------------------------------------------------------------------------------------------------------------------- Total Investments (Cost - $528,357,282*) - 184.1% 472,060,976 Other Assets Less Liabilities - 0.9% 2,227,449 Liability for Trust Certificates, Including Interest Expense and Fees Payable - (22.8)% (58,572,973) Preferred Shares, at Redemption Value - (62.2*)% (159,340,210) -------------- Net Assets Applicable to Common Shares - 100.0% $ 256,375,242 ==============
* The cost and unrealized appreciation (depreciation) of investments as of October 31, 2008, as computed for federal income tax purposes, were as follows: Aggregate cost $ 466,391,770 ============= Gross unrealized appreciation $ 3,693,827 Gross unrealized depreciation (55,956,606) ------------- Net unrealized depreciation $ (52,262,779) ============= (a) AMBAC Insured. (b) Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase. (c) FSA Insured. (d) MBIA Insured. (e) Radian Insured. (f) FGIC Insured. (g) XL Capital Insured. (h) Assured Guaranty Insured. (i) Security is collateralized by Municipal or U.S. Treasury Obligations. (j) U.S. 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. (k) BHAC Insured. (l) GNMA Collateralized. (m) FNMA Collateralized. (n) FHLMC Collateralized. BlackRock MuniEnhanced Fund, Inc. Schedule of Investments October 31, 2008 (Unaudited) (o) CIFG Insured. (p) Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. (q) 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 -------------------------------------------------------------------------- Merrill Lynch Institutional Tax-Exempt Fund 14,181,229 $ 239,279 -------------------------------------------------------------------------- (r) Represents the current yield as of report date. o Forward interest rate swaps outstanding as of October 31, 2008 were as follows: ------------------------------------------------------------------------- Notional Unrealized Amount Appreciation (000) (Depreciation) ------------------------------------------------------------------------- Pay a fixed rate of 3.484% and receive a floating rate based on 1-week SIFMA Municipal Swap Index Rate Broker, JPMorgan Chase Expires December 2023 $ 6,250 $ 168,569 Pay a fixed rate of 3.764% and receive a floating rate based on 1-week SIFMA Municipal Swap Index Rate Broker, JPMorgan Chase Expires November 2028 $ 12,750 (13,260) Pay a fixed rate of 3.8575% and receive a floating rate based on 1-week SIFMA Municipal Swap Index Rate Broker, JPMorgan Chase Expires November 2028 $ 7,500 (102,833) Pay a fixed rate of 3.66% and receive a floating rate based on 1-week SIFMA Municipal Swap Index Rate Broker, Citibank NA Expires December 2028 $ 5,000 70,890 ------------------------------------------------------------------------- Total $ 123,366 ============== BlackRock MuniEnhanced Fund, Inc. Schedule of Investments October 31, 2008 (Unaudited) o Effective February 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 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: o Level 1 - price quotations in active markets/exchanges for identical securities o Level 2 - other observable inputs (including, but not limited to: quoted prices for 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) o Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Fund's own assumption 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 semi-annual report. The following table summarizes the inputs used as of October 31, 2008 in determining the fair valuation of the Fund's investments: -------------------------------------------------------------------- Valuation Investments in Other Financial Inputs Securities Instruments* -------------------------------------------------------------------- Level 1 $ 18,400,000 -- Level 2 453,660,976 $ 123,366 Level 3 -- -- -------------------------------------------------------------------- Total $ 472,060,976 $ 123,366 ====================================== * Other financial instruments are swaps. 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/ Donald C. Burke -------------------------------- Donald C. Burke Chief Executive Officer of BlackRock MuniEnhanced Fund, Inc. Date: December 19, 2008 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/ Donald C. Burke -------------------------------- Donald C. Burke Chief Executive Officer (principal executive officer) of BlackRock MuniEnhanced Fund, Inc. Date: December 19, 2008 By: /s/ Neal J. Andrews -------------------------------- Neal J. Andrews Chief Financial Officer (principal financial officer) of BlackRock MuniEnhanced Fund, Inc. Date: December 19, 2008