BLACKROCK MUNIENHANCED FUND, INC.

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: 04/30/2016

Date of reporting period: 01/31/2016


Item 1 – Schedule of Investments


Schedule of Investments January 31, 2016 (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, Limited Obligation School, Series A:

    

5.50%, 1/01/22

   $ 2,750      $ 2,776,950   

4.75%, 1/01/25

     2,200        2,216,060   
    

 

 

 
               4,993,010   

Alaska — 0.7%

    

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

     990        1,137,649   

Borough of Matanuska-Susitna Alaska, RB, Goose Creek Correctional Center (AGC):

    

6.00%, 9/01/19 (a)

     765        901,774   

6.00%, 9/01/28

     435        509,829   
    

 

 

 
               2,549,252   

Arizona — 0.9%

    

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

    

5.00%, 10/01/27

     2,700        3,008,313   

5.00%, 10/01/29

     400        445,676   
    

 

 

 
               3,453,989   

California — 18.9%

    

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

    

5.40%, 10/01/24

     10,185        10,911,598   

5.45%, 10/01/25

     3,700        3,960,628   

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

     5,000        6,298,550   

Cabrillo Community College District, GO, CAB, Election of 2004, Series B (NPFGC), 0.00%, 8/01/37 (c)

     2,400        884,448   

California Health Facilities Financing Authority, RB:

    

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

     550        631,658   

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

     1,200        1,453,308   

California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/37

     1,090        1,263,136   
Municipal Bonds    Par  
(000)
    Value  

California (continued)

    

California State University, Refunding RB, Series A:

    

5.00%, 5/01/17 (a)

   $ 850      $ 897,770   

5.00%, 11/01/37

     1,150        1,202,750   

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42

     1,480        1,676,781   

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

     1,420        1,536,866   

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

     850        1,002,813   

County of Orange California Sanitation District, COP, Series B (AGM), 5.00%, 2/01/17 (a)

     1,500        1,568,880   

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

     2,175        2,650,999   

Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/17 (a)

     1,300        1,387,698   

Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 0.00%, 8/01/43 (b)

     2,500        1,841,800   

Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement, Election of 2008, Series B, 0.00%, 8/01/36 (c)

     3,750        1,761,150   

Rio Hondo Community College District California, GO, CAB, Election of 2004, Series C, 0.00%, 8/01/38 (c)

     5,000        2,224,350   

San Diego California Unified School District, GO, CAB, Election of 2008 (c):

    

Series C, 0.00%, 7/01/38

     1,600        670,016   

Series G, 0.00%, 7/01/34

     650        293,182   

Series G, 0.00%, 7/01/35

     690        292,415   

Series G, 0.00%, 7/01/36

     1,035        412,458   

Series G, 0.00%, 7/01/37

     690        258,660   

San Diego California Unified School District, GO, Refunding, Series R-1 (c):

    

0.00%, 7/01/30

     5,000        3,181,200   

0.00%, 7/01/31

     1,280        769,152   
 

 

                
   BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2016    1


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds    Par  
(000)
    Value  

California (continued)

    

San Diego Community College District California, GO, CAB, Election of 2006 (c):

    

0.00%, 8/01/31

   $ 2,145      $ 1,121,492   

0.00%, 8/01/32

     2,680        1,313,977   

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

    

5.00%, 8/01/34

     700        813,820   

5.00%, 8/01/38

     600        695,856   

San Mateo County Community College District, GO, CAB, Election of 2001, Series C (NPFGC), 0.00%, 9/01/30 (c)

     12,740        8,528,411   

Walnut Valley Unified School District, GO, CAB, Election of 2007, Series B, 0.00%, 8/01/36 (c)

     5,500        2,547,380   

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

     5,035        5,475,865   
    

 

 

 
               69,529,067   

Colorado — 0.9%

    

Park Creek Metropolitan District, Refunding, Tax Allocation Bonds, 5.00%, 12/01/45

     990        1,112,661   

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

     2,000        2,298,000   
    

 

 

 
               3,410,661   

District of Columbia — 1.5%

    

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

     5,480        5,497,974   

Florida — 14.9%

    

City of Tallahassee FL Energy System Revenue, RB, 5.00%, 10/01/37

     7,500        7,966,800   

County of Brevard Florida Health Facilities Authority, Refunding RB, Health First, Inc. Project, 5.00%, 4/01/39

     1,600        1,793,376   

County of Broward Florida Water & Sewer Utility, Refunding RB, Series A, 5.25%, 10/01/18 (a)

     850        951,235   

County of Duval Florida School Board, COP, Master Lease Program (AGM), 5.00%, 7/01/17 (a)

     2,625        2,789,483   
Municipal Bonds    Par  
(000)
    Value  

Florida (continued)

    

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

   $ 1,450      $ 1,678,288   

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

     4,050        4,428,472   

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

    

5.63%, 10/01/26

     960        1,127,165   

5.38%, 10/01/32

     3,160        3,575,161   

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

     1,400        1,557,850   

County of Miami-Dade Florida, RB, Seaport:

    

Series A, 6.00%, 10/01/38

     2,025        2,478,904   

Series B, AMT, 6.00%, 10/01/30

     640        796,614   

Series B, AMT, 6.25%, 10/01/38

     415        516,459   

Series B, AMT, 6.00%, 10/01/42

     660        787,776   

County of Miami-Dade Florida Aviation, Refunding ARB, AMT, 5.00%, 10/01/34

     190        217,415   

County of Miami-Dade Florida Educational Facilities Authority, RB, University Miami, Series A, 5.00%, 4/01/40

     3,490        3,950,191   

County of Orange Florida School Board, COP, Series A, 5.00%, 8/01/16 (a)

     2,000        2,047,360   

County of Palm Beach Florida Solid Waste Authority, Refunding RB, 5.00%, 10/01/31

     2,000        2,336,240   

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

     275        305,880   

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

    

5.13%, 6/01/27

     2,000        2,358,320   

5.38%, 10/01/29

     1,050        1,244,523   

Miami-Dade County School Board Foundation, Inc., 5.00%, 5/01/33

     10,000        10,775,600   
 

 

                
2    BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds    Par  
(000)
    Value  

Florida (continued)

    

South Florida Water Management District, COP, (AGC), 5.00%, 10/01/16 (a)

   $ 1,000      $ 1,031,080   
    

 

 

 
               54,714,192   

Georgia — 3.6%

    

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

     1,150        1,239,527   

County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54

     500        596,265   

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

     7,475        10,418,580   

Private Colleges & Universities Authority, RB, Savannah College of Art & Design:

    

5.00%, 4/01/33

     140        159,501   

5.00%, 4/01/44

     625        688,769   
    

 

 

 
               13,102,642   

Illinois — 18.4%

    

City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series A, 5.75%, 1/01/39

     5,110        5,967,356   

City of Chicago Illinois, GO, Refunding, Series A:

    

5.00%, 1/01/34

     3,750        3,616,500   

Project, 5.25%, 1/01/33

     1,185        1,187,998   

City of Chicago Illinois, GO, 5.25%, 1/01/35

     400        401,528   

City of Chicago Illinois, Refunding RB, Sales Tax Receipts, Series A, 5.00%, 1/01/41

     3,425        3,585,530   

City of Chicago Illinois Transit Authority, RB:

    

5.25%, 12/01/49

     900        1,012,977   

Sales Tax Receipts, 5.25%, 12/01/36

     595        655,803   

County of Cook Illinois Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/37

     225        247,237   

Illinois Finance Authority, RB, Carle Foundation, Series A:

    

5.75%, 8/15/34

     650        767,215   

6.00%, 8/15/41

     1,000        1,186,980   
Municipal Bonds    Par  
(000)
    Value  

Illinois (continued)

    

Illinois Finance Authority, Refunding RB, Silver Cross Hospital and Medical Centers:

    

4.13%, 8/15/37

   $ 700      $ 722,589   

5.00%, 8/15/44

     350        386,600   

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

     2,105        2,111,104   

Illinois Municipal Electric Agency, RB, Series A (NPFGC), 5.25%, 2/01/17 (a)

     1,000        1,048,100   

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

     12,490        12,663,861   

Kane McHenry Cook & De Kalb Counties Unit School District No. 300, GO, Refunding, 5.25%, 1/01/33

     9,145        10,633,257   

Metropolitan Pier & Exposition Authority, RB, CAB, McCormick Place Expansion Project, Series A (NPFGC) (c):

    

0.00%, 12/15/26

     5,000        3,370,950   

0.00%, 12/15/33

     9,950        4,650,530   

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project, Series B:

    

CAB (AGM), 0.00%, 6/15/44 (c)

     3,450        946,508   

4.25%, 6/15/42

     950        947,748   

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

     675        812,383   

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

     5,555        6,428,468   

State of Illinois, GO:

    

5.25%, 2/01/33

     830        902,841   

5.50%, 7/01/33

     820        920,097   

5.25%, 2/01/34

     830        899,886   

5.50%, 7/01/38

     445        493,211   

University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 4/01/39

     905        1,010,939   
    

 

 

 
               67,578,196   

Indiana — 0.9%

    

Indiana Finance Authority, RB, Series A:

    

CWA Authority Project, 1st Lien, 5.25%, 10/01/38

     1,100        1,298,374   
 

 

                
   BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2016    3


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds    Par  
(000)
    Value  

Indiana (continued)

    

Indiana Finance Authority, RB, Series A (continued):

    

Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44

   $ 515      $ 557,050   

Private Activity Bond, Ohio River Bridges, AMT, 5.00%, 7/01/40

     890        963,870   

Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC), 5.25%, 1/01/29

     600        671,226   
    

 

 

 
               3,490,520   

Iowa — 3.2%

    

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

     5,725        6,464,040   

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

    

5.60%, 12/01/26

     2,465        2,660,179   

5.70%, 12/01/27

     1,115        1,196,674   

5.80%, 12/01/29

     755        809,337   

5.85%, 12/01/30

     790        847,504   
    

 

 

 
               11,977,734   

Louisiana — 1.2%

    

City of New Orleans Louisiana Aviation Board, RB, Series B, AMT, 5.00%, 1/01/40

     2,795        3,102,534   

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

     1,250        1,418,400   
    

 

 

 
               4,520,934   

Massachusetts — 1.5%

    

Massachusetts HFA, Refunding RB, Series C, AMT, 5.35%, 12/01/42

     1,150        1,202,198   

Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior Series A, 5.00%, 5/15/43

     1,280        1,485,645   
Municipal Bonds    Par  
(000)
    Value  

Massachusetts (continued)

    

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

   $ 2,530      $ 2,679,447   
    

 

 

 
               5,367,290   

Michigan — 2.7%

    

City of Detroit Michigan Sewage Disposal System, Refunding RB, 2nd Lien, Series E (BHAC), 5.75%, 7/01/31

     2,500        2,722,400   

City of Detroit Michigan Water Supply System, RB, 2nd Lien, Series B (AGM), 6.25%, 7/01/36

     400        452,548   

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

     1,700        2,011,474   

Michigan Finance Authority, RB, Beaumont Health Credit Group, 4.00%, 11/01/46 (d)

     470        469,149   

Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series D, 5.00%, 9/01/39

     1,040        1,167,733   

State of Michigan Building Authority, Refunding RB, Facilities Program:

    

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

     145        168,696   

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

     700        814,394   

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

     900        1,019,142   

State of Michigan HDA, RB, S/F Housing, Series C, AMT, 5.50%, 12/01/28

     790        847,623   

Western Michigan University, Refunding RB, General, University and College Improvements (AGM), 5.00%, 11/15/39

     380        429,073   
    

 

 

 
               10,102,232   

Minnesota — 0.8%

    

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC):

    

6.50%, 11/15/18 (a)

     385        444,301   

6.50%, 11/15/38

     2,115        2,398,389   
    

 

 

 
               2,842,690   

Nebraska — 1.8%

    

Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.25%, 9/01/37

     750        847,793   
 

 

                
4    BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds   

Par  

(000)

    Value  

Nebraska (continued)

    

Central Plains Nebraska Energy Project, RB, Gas Project No. 3, 5.00%, 9/01/32

   $ 5,000      $ 5,663,950   
    

 

 

 
               6,511,743   

Nevada — 1.6%

    

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

     850        986,000   

County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A:

    

5.25%, 7/01/42

     500        561,600   

(AGM), 5.25%, 7/01/39

     3,800        4,269,718   

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

     75        75,400   
    

 

 

 
               5,892,718   

New Jersey — 9.3%

    

New Jersey EDA, RB:

    

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

     3,125        3,161,594   

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

     7,800        7,891,338   

Private Activity Bond, The Goethals Bridge Replacement Project, AMT, 5.13%, 1/01/34

     685        766,947   

Private Activity Bond, The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43

     895        997,755   

School Facilities Construction (AGC), 6.00%, 12/15/18 (a)

     1,975        2,265,068   

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

     25        28,326   

Series WW, 5.25%, 6/15/33

     155        170,147   

Series WW, 5.00%, 6/15/34

     205        219,565   

Series WW, 5.00%, 6/15/36

     1,245        1,326,460   

Series WW, 5.25%, 6/15/40

     265        286,799   

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

    

5.50%, 12/01/26

     545        614,422   

5.75%, 12/01/27

     3,520        3,989,568   

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT, 4.35%, 11/01/33

     1,125        1,182,038   
Municipal Bonds    Par  
(000)
    Value  

New Jersey (continued)

    

New Jersey Transportation Trust Fund Authority, RB:

    

Transportation Program, Series AA, 5.25%, 6/15/33

   $ 1,460      $ 1,591,108   

Transportation Program, Series AA, 5.00%, 6/15/38

     1,760        1,868,715   

Transportation System, Series A, 5.50%, 6/15/41

     2,000        2,163,980   

Transportation System, Series AA, 5.50%, 6/15/39

     1,150        1,267,702   

Transportation System, Series B, 5.50%, 6/15/31

     1,000        1,098,820   

Transportation System, Series B, 5.00%, 6/15/42

     2,500        2,612,400   

Transportation System, Series D, 5.00%, 6/15/32

     625        675,169   
    

 

 

 
               34,177,921   

New York — 5.3%

    

City of New York New York Municipal Water Finance Authority, Refunding RB, Second General Resolution, Fiscal 2012, Series BB, 5.25%, 6/15/44

     1,425        1,692,002   

City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-4, 5.50%, 1/15/33

     1,600        1,809,200   

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

     2,750        3,109,563   

City of New York New York Transitional Finance Authority, Refunding RB, Future Tax Secured, Series B, 5.00%, 11/01/32

     1,480        1,761,274   

County of Erie New York Industrial Development Agency, RB, City School District of Buffalo, Series A (AGM), 5.75%, 5/01/17 (a)

     1,500        1,599,555   

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

     700        814,982   

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

     4,000        4,630,640   

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

     1,200        1,376,832   
 

 

                
   BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2016    5


Schedule of Investments (continued)    BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds    Par  
(000)
    Value  

New York (continued)

    

State of New York HFA, RB, Affordable Housing, M/F, Series B, AMT, 5.30%, 11/01/37

   $ 2,500      $ 2,567,675   
    

 

 

 
               19,361,723   

Ohio — 1.4%

    

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

     530        659,532   

State of Ohio Turnpike Commission, RB, CAB, Junior Lien, Infrastructure Projects, Series A-2, 0.00%, 2/15/37 (c)

     10,000        4,566,100   
    

 

 

 
               5,225,632   

Pennsylvania — 5.3%

    

Commonwealth Financing Authority, RB, Series B, 5.00%, 6/01/42

     1,600        1,762,064   

Pennsylvania Economic Development Financing Authority, RB, AMT:

    

Pennsylvania Bridge Finco LP, 5.00%, 12/31/38

     1,305        1,439,846   

Pennsylvania Rapid Bridge Replacement Project, 5.00%, 12/31/34

     7,290        8,156,562   

Pennsylvania Higher Educational Facilities Authority, Refunding RB, Thomas Jefferson University, Series A, 5.25%, 9/01/50

     4,125        4,682,700   

Pennsylvania Turnpike Commission, RB:

    

Series A, 5.00%, 12/01/38

     620        705,814   

Series C, 5.50%, 12/01/33

     555        676,812   

Subordinate, Special Motor License Fund, 6.00%, 12/01/36

     575        677,137   

Pennsylvania Turnpike Commission, Refunding RB, Series A-1, 5.00%, 12/01/40

     765        871,396   

Philadelphia School District, GO:

    

2015-3, Series F, 6.00%, 9/01/38

     395        437,407   

Series E, 6.00%, 9/01/18 (a)

     5        5,662   
    

 

 

 
               19,415,400   

Rhode Island — 0.5%

    

Tobacco Settlement Financing Corp., Refunding RB, Series B:

    

4.50%, 6/01/45

     1,055        1,069,412   
Municipal Bonds   

Par  

(000)

    Value  

Rhode Island (continued)

    

Tobacco Settlement Financing Corp., Refunding RB, Series B (continued):

    

5.00%, 6/01/50 (d)

   $ 675      $ 699,941   
    

 

 

 
               1,769,353   

South Carolina — 5.9%

    

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

     115        140,643   

South Carolina Ports Authority, RB, AMT, 5.25%, 7/01/50

     2,330        2,614,050   

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

     3,000        3,366,690   

State of South Carolina Public Service Authority, RB, Santee Cooper:

    

Series A, 5.50%, 12/01/54

     8,725        10,045,267   

Series E, 5.50%, 12/01/53

     745        857,435   

State of South Carolina Public Service Authority, Refunding RB:

    

Santee Cooper, Series B, 5.00%, 12/01/38

     2,080        2,384,221   

Series A, 5.50%, 1/01/19 (a)

     80        90,814   

Series A, 5.50%, 1/01/19 (a)

     920        1,042,921   

Series E, 5.25%, 12/01/55

     1,050        1,191,487   
    

 

 

 
               21,733,528   

Tennessee — 1.6%

    

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

     5,000        5,763,700   

Texas — 13.7%

    

Central Texas Regional Mobility Authority, RB, Senior Lien, Series A, 5.00%, 1/01/40

     505        569,226   

Central Texas Turnpike System, Refunding RB, Series B, 0.00%, 8/15/37 (c)

     1,815        736,818   

City of Houston Texas Utility System, Refunding RB, Combined 1st Lien, Series A (AGC):

    

6.00%, 11/15/35

     2,100        2,450,868   

5.38%, 11/15/38

     1,350        1,516,293   

City of San Antonio Texas Public Service Board, RB, Junior Lien, 5.00%, 2/01/38

     575        652,614   
 

 

                
6    BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2016   


Schedule of Investments (continued)    BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds    Par  
(000)
    Value  

Texas (continued)

    

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 9/15/36 (c)

   $ 2,130      $ 920,245   

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Cook Children’s Medical Center, 5.25%, 12/01/39

     750        875,048   

Dallas-Fort Worth International Airport, ARB, Joint Improvement, AMT:

    

Series D, 5.00%, 11/01/38

     1,975        2,174,613   

Series D, 5.00%, 11/01/42

     1,500        1,639,185   

Series H, 5.00%, 11/01/32

     3,000        3,368,820   

Dallas-Fort Worth International Airport, Refunding ARB, Series F, 5.25%, 11/01/33

     975        1,157,637   

Leander ISD, GO, Refunding, CAB, Series D, 0.00%, 8/15/38 (c)

     3,420        1,327,336   

Mansfield Texas ISD, GO, School Building (PSF-GTD), 5.00%, 2/15/17 (a)

     1,725        1,805,437   

North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 9/01/43 (c)

     1,500        385,965   

North Texas Tollway Authority, Refunding RB:

    

1st Tier System, Series A, 6.00%, 1/01/28

     2,795        3,191,219   

1st Tier System, Series K-2 (AGC), 6.00%, 1/01/38

     4,015        4,534,541   

1st Tier System, Series S, 5.75%, 1/01/18 (a)

     805        881,829   

1st Tier System, Series SE, 5.75%, 1/01/40

     795        859,562   

1st Tier, Series K-1 (AGC), 5.75%, 1/01/38

     3,800        4,256,532   

Series B, 5.00%, 1/01/40

     1,495        1,697,617   

San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing and Expansion Project, CAB (c):

    

0.00%, 9/15/35

     4,990        2,112,117   

0.00%, 9/15/36

     11,525        4,594,672   

0.00%, 9/15/37

     8,245        3,091,875   

Texas Municipal Gas Acquisition & Supply Corp. III, RB:

    

5.00%, 12/15/32

     705        795,282   

Natural Gas Utility Improvements, 5.00%, 12/15/31

     1,190        1,346,354   
Municipal Bonds   

Par  

(000)

    Value  

Texas (continued)

    

Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A, 5.00%, 8/15/41

   $ 3,080      $ 3,393,513   
    

 

 

 
               50,335,218   

Utah — 1.5%

    

Utah Transit Authority, RB, Series A, 5.00%, 6/15/18 (a)

     5,000        5,501,950   

Washington — 1.1%

    

Central Puget Sound Regional Transit Authority, RB, Series A, 5.00%, 11/01/17 (a)

     1,600        1,721,856   

Port of Seattle Washington, RB, Series C, AMT, 5.00%, 4/01/40

     1,015        1,131,197   

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

    

5.00%, 10/01/39

     525        577,553   

5.25%, 10/01/39

     625        696,612   
    

 

 

 
               4,127,218   

Wisconsin — 0.4%

    

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

     1,375        1,560,543   
Total Municipal Bonds — 120.8%              444,507,030   
    
   
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
 

Arizona — 0.8%

    

City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Water System, Junior Lien, Series A, 5.00%, 7/01/34

     1,200        1,338,756   

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

     1,500        1,599,975   
    

 

 

 
               2,938,731   

California — 1.9%

    

Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/17 (a)

     2,500        2,668,650   

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

     404        462,275   
 

 

                
   BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2016    7


Schedule of Investments (continued)   

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
   Par  
(000)
    Value  

California (continued)

    

San Diego County Water Authority Financing Corp., COP, Refunding, Series A (AGM):

    

5.00%, 5/01/18 (a)

   $ 466      $ 513,109   

5.00%, 5/01/33

     2,344        2,544,958   

University of California, RB, Series O, 5.75%, 5/15/19 (a)

     840        973,983   
    

 

 

 
               7,162,975   

Colorado — 2.4%

    

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A:

    

5.50%, 7/01/34 (f)

     900        1,015,182   

5.00%, 2/01/41

     7,000        7,656,390   
    

 

 

 
               8,671,572   

Connecticut — 0.4%

    

Connecticut State Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45

     1,381        1,592,551   

District of Columbia — 1.7%

    

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

     1,005        1,175,334   

District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 10/01/18 (a)(f)

     1,779        2,022,184   

Metropolitan Washington Airports Authority, Refunding ARB, Series A, AMT, 5.00%, 10/01/30

     2,530        2,888,425   
    

 

 

 
               6,085,943   

Florida — 5.4%

    

City of Tallahassee Florida, RB, Energy System (NPFGC), 5.00%, 10/01/32 (f)

     4,000        4,257,880   

County of Miami-Dade Florida, Refunding RB, Transit System Sales Surtax, 5.00%, 7/01/42

     4,480        5,103,123   

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

     4,621        5,252,992   

County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 8/01/34

     3,544        3,949,697   
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
   Par  
(000)
    Value  

Florida (continued)

    

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

   $ 1,349      $ 1,435,165   
    

 

 

 
               19,998,857   

Illinois — 4.4%

    

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

     2,000        2,051,500   

Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.00%, 6/15/42

     260        271,621   

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

     4,399        4,898,098   

State of Illinois Toll Highway Authority, RB:

    

Senior Priority, Series A, 5.00%, 1/01/40

     2,730        3,141,838   

Senior Priority, Series B, 5.50%, 1/01/18 (a)

     1,880        2,050,525   

Senior, Series B, 5.00%, 1/01/40

     1,050        1,211,065   

Series A, 5.00%, 1/01/38

     2,138        2,401,087   
    

 

 

 
               16,025,734   

Louisiana — 1.5%

    

State of Louisiana Gas & Fuels, RB, Series A (AGM), 5.00%, 5/01/16 (a)

     5,400        5,465,178   

Michigan — 3.2%

    

Michigan Finance Authority, RB:

    

Beaumont Health Credit Group, 5.00%, 11/01/44

     1,970        2,212,489   

Hospital, Trinity Health Credit Group, 5.00%, 12/01/39

     7,550        8,408,586   

Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 5.00%, 10/15/45

     870        995,106   
    

 

 

 
               11,616,181   

Nevada — 3.2%

    

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

     3,778        4,332,470   

County of Clark Nevada Water Reclamation District, GO, Series B:

    

Limited Tax, 5.75%, 7/01/34

     1,829        2,110,390   
 

 

                
8    BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2016   


Schedule of Investments (continued)   

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
   Par  
(000)
    Value  

Nevada (continued)

    

County of Clark Nevada Water Reclamation District, GO, Series B (continued):

    

5.50%, 7/01/29

   $ 4,499      $ 5,147,254   
    

 

 

 
               11,590,114   

New Jersey — 0.5%

    

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (f)

     1,840        1,969,031   

New York — 4.2%

    

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

     1,260        1,402,139   

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 6/15/47

     5,680        6,495,806   

City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2014, Series DD, 5.00%, 6/15/35

     1,665        1,980,601   

Metropolitan Transportation Authority, RB, Sub-Series D-1, 5.25%, 11/15/44

     3,470        4,084,120   

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

     1,300        1,448,863   
    

 

 

 
               15,411,529   

Ohio — 0.2%

    

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

     580        656,775   

South Carolina — 0.4%

    

State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series A, 5.50%, 1/01/38 (f)

     1,275        1,445,353   

Texas — 0.6%

    

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

     2,200        2,293,412   
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
  

Par  

(000)

    Value  

Virginia — 0.1%

    

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

   $ 350      $ 396,617   

Washington — 2.1%

    

Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/17 (a)

     4,004        4,309,215   

Washington Health Care Facilities Authority, Refunding RB, Seattle Children’s Hospital, Series B, 5.00%, 10/01/38

     2,880        3,544,646   
    

 

 

 
               7,853,861   

Wisconsin — 1.0%

    

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group:

    

Series A, 5.00%, 4/01/42

     1,980        2,198,790   

Series C, 5.25%, 4/01/39 (f)

     1,430        1,554,600   
    

 

 

 
               3,753,390   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 34.0%
        124,927,804   

Total Long-Term Investments

(Cost — $511,694,880) — 154.8%

  

  

    569,434,834   
    
   
Short-Term Securities     Shares         

BlackRock Liquidity Funds, MuniCash, 0.02% (f)(g)

     3,369,769        3,369,769   

Total Short-Term Securities

(Cost — $3,369,769) — 0.9%

             3,369,769   
Total Investments (Cost — $515,064,649) — 155.7%        572,804,603   
Other Assets Less Liabilities — 0.8%        3,020,587   

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (17.8)%

   

    (65,498,676
VRDP Shares, at Liquidation Value — (38.7)%        (142,500,000
    

 

 

 

Net Assets Applicable to Common Shares100.0%

  

  $ 367,826,514   
    

 

 

 

 

*   As of January 31, 2016, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

  $ 450,495,846   
 

 

 

 

Gross unrealized appreciation

  $ 57,917,443   

Gross unrealized depreciation

    (1,097,094
 

 

 

 

Net unrealized appreciation

  $ 56,820,349   
 

 

 

 
 

 

                
   BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2016    9


Schedule of Investments (continued)

   BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Notes to Schedule of Investments

 

(a)   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.
(b)   Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.
(c)   Zero-coupon bond.
(d)   When-issued security.
(e)   Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing.
(f)   All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between April 1, 2016 to December 1, 2029, is $14,060,616.
(g)   During the period ended January 31, 2016, investments in issuers considered to be affiliates of the Fund 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,
2015
      

Net

Activity

       Shares Held
at January 31,
2016
       Income  

BlackRock Liquidity Funds, MuniCash

                 3,369,769           3,369,769             

FFI Institutional Tax-Exempt Fund

       1,577,185           (1,577,185                $ 397   

 

(h)   Current yield as of period end.

 

Derivative Financial Instruments Outstanding as of Period End

Financial Futures Contracts

 

Contracts
Short
  Issue   Expiration  

Notional

Value

    Unrealized
Depreciation
 
        (39)   5-Year U.S. Treasury Note   March 2016   $ 4,706,203      $ (68,485
        (46)   10-Year U.S. Treasury Note   March 2016   $ 5,960,594        (127,120
        (28)   Long U.S. Treasury Bond   March 2016   $ 4,508,875        (162,871
          (3)   Ultra U.S. Treasury Bond   March 2016   $ 498,562        (24,520

Total

  

  $ (382,996
       

 

 

 

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMBAC    American Municipal Bond Assurance Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
BARB    Building Aid Revenue Bonds
BHAC    Berkshire Hathaway Assurance Corp.
CAB    Capital Appreciation Bonds
COP    Certificates of Participation
EDA    Economic Development Authority
GARB    General Airport Revenue Bonds
GO    General Obligation Bonds

 

                
10    BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2016   


Schedule of Investments (continued)

   BlackRock MuniEnhanced Fund, Inc. (MEN)

 

HDA    Housing Development Authority
HFA    Housing Finance Agency
IDA    Industrial Development Authority
ISD    Independent School District
M/F    Multi-Family
NPFGC    National Public Finance Guarantee Corp.
PSF-GTD    Public School Fund Guaranteed
RB    Revenue Bonds
S/F    Single-Family

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

   

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

 

   

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

 

   

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments are typically categorized as Level 3.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 569,434,834              $ 569,434,834   

Short-Term Securities

  $ 3,369,769                          3,369,769   
 

 

 

 

Total

  $ 3,369,769         $ 569,434,834              $ 572,804,603   
 

 

 

 

 

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

       

 

                
   BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2016    11


Schedule of Investments (concluded)

   BlackRock MuniEnhanced Fund, Inc. (MEN)

 

 

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments1                 

Liabilities:

                

Interest rate contracts

  $ (382,996                     $ (382,996
 

 

 

 

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

       

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

   

     Level 1        Level 2        Level 3      Total  

Assets:

                

Cash pledged for financial futures contracts

  $ 223,900                        $ 223,900   

Liabilities:

                

TOB Trust Certificates

            $ (65,488,408             (65,488,408

VRDP Shares

              (142,500,000             (142,500,000
 

 

 

 

Total

  $ 223,900         $ (207,988,408           $ (207,764,508
 

 

 

 

During the period ended January 31, 2016, there were no transfers between levels.

  

 

                
12    BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2016   


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 22, 2016

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 22, 2016

 

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

Date: March 22, 2016