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
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Arizona - 0.6% Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds,
5%, 12/01/37 2,640 1,589,306
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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
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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
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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
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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