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: 04/30/2017

Date of reporting period: 01/31/2017

 


Item 1 – Schedule of Investments

 


Schedule of Investments January 31, 2017 (Unaudited)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)

 

 

Municipal Bonds   

Par  

(000)

    Value  

Alabama — 1.4%

    

County of Jefferson Alabama, RB, Limited Obligation School, Series A:

    

5.50%, 1/01/22

   $ 2,750     $ 2,761,192  

4.75%, 1/01/25

     2,200       2,208,954  
    

 

 

 
        4,970,146  

Alaska — 0.7%

    

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

     990       1,096,534  

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

    

6.00%, 9/01/19

     765       856,173  

6.00%, 9/01/19

     435       486,843  
    

 

 

 
        2,439,550  

Arizona — 1.3%

    

County of Maricopa Arizona IDA, Refunding RB, Banner Health Obligation Group, Series A:

    

3.25%, 1/01/37

     710       645,561  

5.00%, 1/01/38

     380       428,081  

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

    

5.00%, 10/01/27

     2,700       2,924,289  

5.00%, 10/01/29

     400       432,792  
    

 

 

 
        4,430,723  

California — 18.0%

    

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

    

5.40%, 10/01/17 (b)

     10,185       10,494,013  

5.45%, 10/01/17

     3,700       3,813,479  

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

     5,000       6,000,100  

California Health Facilities Financing Authority, RB:

    

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

     550       597,597  

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

     1,200       1,368,696  

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

     1,090       1,204,962  

 

Municipal Bonds   

Par  

(000)

    Value  

California (continued)

    

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

   $ 600     $ 605,490  

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

     1,480       1,608,819  

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

     1,420       1,480,847  

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

     850       959,591  

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

     2,175       2,516,801  

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

     12,740       7,991,165  

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

     1,300       1,327,664  

Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 6.25%, 8/01/43 (b)

     2,500       1,766,075  

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

     3,750       1,638,938  

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

     5,000       2,071,800  

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

    

Series C, 0.00%, 7/01/38

     1,600       637,920  

Series G, 0.00%, 7/01/34

     650       285,740  

Series G, 0.00%, 7/01/35

     690       285,080  

Series G, 0.00%, 7/01/36

     1,035       401,642  

Series G, 0.00%, 7/01/37

     690       252,098  

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

    

0.00%, 7/01/30

     5,000       2,997,600  

0.00%, 7/01/31

     1,280       726,234  
 

 

                
   BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017    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     $ 1,099,656  

0.00%, 8/01/32

     2,680       1,286,159  

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

    

5.00%, 8/01/34

     700       779,331  

5.00%, 8/01/38

     600       667,182  

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

     5,500       2,404,710  

West Basin Municipal Water District California, COP, Refunding, Series B (AGC), 5.00%, 8/01/18 (a)

     5,035       5,336,798  
    

 

 

 
        62,606,187  

Colorado — 0.6%

    

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

     2,000       2,198,500  

District of Columbia — 1.6%

    

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

     5,360       5,470,041  

Florida — 15.5%

    

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

    

5.00%, 10/01/32

     4,000       4,094,400  

5.00%, 10/01/37

     7,500       7,673,625  

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

     1,600       1,697,728  

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

     850       908,157  

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

     2,625       2,671,200  

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

     1,450       1,604,541  

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

     4,050       4,265,824  

 

Municipal Bonds   

Par  

(000)

    Value  

Florida (continued)

    

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

    

5.63%, 10/01/26

   $ 960     $ 1,078,886  

5.38%, 10/01/32

     3,160       3,497,994  

County of Miami-Dade Florida, GO, Building Better Communities Program, Series B-1,
5.75%, 7/01/18 (a)

     1,400       1,492,484  

County of Miami-Dade Florida, RB, Seaport:

    

Department, Series A, 6.00%, 10/01/38

     2,025       2,362,871  

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

     415       491,522  

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

     660       760,280  

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

     640       750,451  

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

     190       205,557  

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

     2,995       3,267,126  

County of Miami-Dade Florida School Board Foundation, Inc., 5.00%, 5/01/18 (a)

     10,000       10,493,800  

County of Orange Health Facilities Authority, Refunding RB, Presbyterian Retirement Communities Project, 5.00%, 8/01/47

     785       822,492  

County of Palm Beach Florida Solid Waste Authority, Refunding RB, Series B:

    

5.00%, 10/01/21 (a)

     30       34,481  

5.00%, 10/01/31

     1,970       2,201,475  

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

     275       294,157  

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

    

5.13%, 6/01/27

     2,000       2,245,920  
 

 

                
2    BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds   

Par  

(000)

    Value  

Florida (continued)

    

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

    

5.38%, 10/01/29

   $ 1,050     $ 1,186,353  
    

 

 

 
        54,101,324  

Georgia — 3.5%

    

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

     1,150       1,185,984  

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

     500       574,035  

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

     7,475       9,808,172  

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

    

5.00%, 4/01/33

     140       148,820  

5.00%, 4/01/44

     380       398,384  
    

 

 

 
        12,115,395  

Illinois — 16.3%

    

City of Chicago Illinois, GO, Refunding, Series A, Project, 5.25%, 1/01/33

     1,185       1,136,806  

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

     400       382,096  

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

     2,220       2,252,745  

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

     5,110       5,733,982  

City of Chicago Illinois O’Hare International Airport, RB, Senior Lien, Series D, 5.25%, 1/01/42

     2,900       3,277,928  

City of Chicago Illinois Transit Authority,
RB: 5.25%, 12/01/49

     900       985,122  

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

     595       635,716  

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

     45       47,757  
Municipal Bonds   

Par  

(000)

    Value  

Illinois (continued)

    

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

    

5.75%, 8/15/34

   $ 650     $ 729,716  

6.00%, 8/15/41

     1,000       1,135,030  

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

    

4.13%, 8/15/37

     700       683,858  

5.00%, 8/15/44

     350       366,839  

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

     10,490       10,749,208  

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

     9,145       10,194,937  

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

    

CAB (NPFGC), 0.00%, 12/15/26 (c)

     5,000       3,266,500  

CAB (NPFGC), 0.00%, 12/15/33 (c)

     9,950       4,432,825  

5.00%, 6/15/42

     180       182,869  

Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM), 0.00%, 6/15/44 (c)

     3,450       835,176  

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

     675       767,414  

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

     4,595       5,160,323  

State of Illinois, GO:

    

5.25%, 2/01/33

     830       845,563  

5.50%, 7/01/33

     820       854,555  

5.25%, 2/01/34

     830       843,595  

5.50%, 7/01/38

     445       460,023  

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

     905       975,472  
    

 

 

 
        56,936,055  

Indiana — 0.9%

    

Indiana Finance Authority, RB, Series A:

    

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

     1,100       1,236,686  

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

     515       532,968  
 

 

                
   BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017    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, AMT, 5.00%, 7/01/40

   $ 890     $ 903,030  

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

    

5.25%, 1/01/19 (a)

     115       123,888  

5.25%, 1/01/29

     485       520,759  
    

 

 

 
        3,317,331  

Iowa — 3.1%

    

Iowa Finance Authority, RB, Iowa Health Care Facilities, Series A (AGC), 5.63%, 8/15/19 (a)

     5,725       6,346,334  

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

    

5.60%, 12/01/26

     2,085       2,237,142  

5.70%, 12/01/27

     940       1,003,112  

5.80%, 12/01/29

     640       681,331  

5.85%, 12/01/30

     670       713,805  
    

 

 

 
        10,981,724  

Louisiana — 1.3%

    

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

     2,795       2,981,007  

Louisiana Public Facilities Authority, RB, Provident Group-Flagship Properties LLC,
Series A, 5.00%, 7/01/56

     275       290,615  

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

     1,250       1,349,325  
    

 

 

 
        4,620,947  

Massachusetts — 2.2%

    

Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A,
5.00%, 1/01/47

     2,090       2,220,918  

Massachusetts Development Finance Agency, Refunding RB, Emmanuel College Issue,
Series A, 5.00%, 10/01/43

     370       390,587  

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

     890       943,578  
Municipal Bonds   

Par  

(000)

    Value  

Massachusetts (continued)

    

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

   $ 1,280     $ 1,434,240  

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

     2,530       2,576,096  
    

 

 

 
        7,565,419  

Michigan — 2.8%

    

City of Detroit Michigan Sewage Disposal System, Refunding RB, 2nd Lien, Series E (BHAC),
5.75%, 7/01/18 (a)

     2,500       2,661,475  

City of Detroit Michigan Water Supply System Revenue, RB, 2nd Lien, Series B (AGM), 6.25%, 7/01/19 (a)

     400       447,256  

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

     1,700       1,923,006  

Michigan Finance Authority, Refunding RB:

    

Henry Ford Health System, 3.25%, 11/15/42

     875       714,849  

Trinity Health Credit Group, 5.00%, 12/01/21 (a)

     20       23,103  

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

     1,040       1,111,500  

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

    

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

     145       161,273  

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

     700       777,581  

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

     900       997,335  

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

     580       604,748  
 

 

                
4    BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds   

Par  

(000)

    Value  

Michigan (continued)

    

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

   $ 380     $ 416,807  
    

 

 

 
        9,838,933  

Minnesota — 0.8%

    

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

    

6.50%, 11/15/18

     385       421,502  

6.50%, 11/15/38

     2,115       2,284,031  
    

 

 

 
        2,705,533  

Nebraska — 1.8%

    

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

     750       812,857  

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

     5,000       5,377,250  
    

 

 

 
        6,190,107  

Nevada — 1.6%

    

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/19 (a)

     850       937,091  

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

    

5.25%, 7/01/42

     500       540,780  

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

     3,800       4,112,170  
    

 

 

 
        5,590,041  

New Jersey — 10.5%

    

New Jersey EDA, RB:

    

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

     895       945,970  

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

     3,125       3,206,094  

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

     7,800       8,002,410  

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

     685       721,531  

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

     1,975       2,154,429  

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

     25       27,252  
Municipal Bonds   

Par  

(000)

    Value  

New Jersey (continued)

    

New Jersey EDA, RB (continued):

    

Series WW, 5.25%, 6/15/33

   $ 155     $ 158,146  

Series WW, 5.00%, 6/15/34

     205       204,752  

Series WW, 5.00%, 6/15/36

     925       923,807  

Series WW, 5.25%, 6/15/40

     265       268,387  

New Jersey EDA, Refunding RB, Series B,
5.50%, 6/15/30

     5,355       5,705,806  

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

    

5.50%, 12/01/26

     430       466,967  

5.75%, 12/01/27

     2,780       3,038,429  

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

     970       987,237  

New Jersey Transportation Trust Fund Authority, RB:

    

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

     1,460       1,489,200  

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

     1,760       1,750,742  

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

     3,150       3,217,158  

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

     1,150       1,194,953  

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

     1,000       1,046,540  

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

     520       516,272  

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

     625       631,856  
    

 

 

 
        36,657,938  

New York — 6.2%

    

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       1,611,632  

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

     1,600       1,725,232  

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

     2,750       2,965,242  

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

     1,480       1,694,881  
 

 

                
   BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017    5


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds   

Par

(000)

    Value  

New York (continued)

    

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     $ 1,518,645  

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

     700       792,309  

Metropolitan Transportation Authority, RB, Series C:

    

6.50%, 11/15/18 (a)

     245       268,540  

6.50%, 11/15/18 (a)

     2,985       3,271,799  

6.50%, 11/15/28

     770       841,995  

New York Transportation Development Corp., RB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 1/01/50

     2,915       3,075,150  

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

     1,200       1,307,532  

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

     2,500       2,519,925  
    

 

 

 
        21,592,882  

Ohio — 1.4%

    

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

     530       625,098  

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

     10,000       4,399,300  
    

 

 

 
        5,024,398  

Pennsylvania — 6.2%

    

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

     1,600       1,736,032  

Pennsylvania Economic Development Financing Authority, RB, AMT:

    

Pennsylvania Bridge Finco LP, 5.00%, 6/30/42

     1,035       1,092,225  

Pennsylvania Rapid Bridge Finco LP,
5.00%, 12/31/34

     7,290       7,780,398  

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

     1,305       1,376,110  

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

     2,330       2,563,163  
Municipal Bonds   

Par

(000)

    Value  

Pennsylvania (continued)

    

Pennsylvania Turnpike Commission, RB:

    

Series A, 5.00%, 12/01/38

   $ 620     $ 680,977  

Series A-1, 5.00%, 12/01/41

     2,385       2,629,677  

Series B, 5.00%, 12/01/40

     935       1,028,051  

Series C, 5.50%, 12/01/33

     555       643,101  

Subordinate, Special Motor License Fund, 6.00%, 12/01/20 (a)

     575       671,761  

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

     765       836,872  

Philadelphia School District, GO, Series E (a):

    

2016, 6.00%, 9/01/18

     395       425,225  

6.00%, 9/01/18

     5       5,383  
    

 

 

 
        21,468,975  

Rhode Island — 1.1%

    

Rhode Island Commerce Corp., RB, Airport Corporation, 5.00%, 7/01/41

     215       235,614  

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

    

4.50%, 6/01/45

     1,055       996,838  

5.00%, 6/01/50

     2,630       2,635,155  
    

 

 

 
        3,867,607  

South Carolina — 6.1%

    

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

     115       134,037  

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

     2,330       2,522,481  

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

     3,000       3,263,730  

State of South Carolina Public Service Authority, 5.50%, 1/01/19 (a)

     80       86,610  

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

    

Series A, 5.50%, 12/01/54

     8,725       9,826,531  

Series E, 5.50%, 12/01/53

     745       837,782  

State of South Carolina Public Service Authority, Refunding RB:

    

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

     2,080       2,305,389  

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

     920       996,010  
 

 

                
6    BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds   

Par

(000)

    Value  

South Carolina (continued)

    

State of South Carolina Public Service Authority, Refunding RB (continued):

    

Series E, 5.25%, 12/01/55

   $ 1,050     $ 1,150,076  
    

 

 

 
        21,122,646  

Tennessee — 1.6%

    

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, Refunding RB, Vanderbilt University, Series B, 5.50%, 10/01/19 (a)

     5,000       5,554,100  

Texas — 13.3%

    

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

     890       378,989  

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

    

5.38%, 5/15/19 (a)

     1,280       1,400,077  

6.00%, 5/15/19 (a)

     1,990       2,204,661  

6.00%, 11/15/35

     110       121,524  

5.38%, 11/15/38

     70       75,443  

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

     575       643,074  

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       935,901  

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

     750       836,842  

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

    

Series D, 5.00%, 11/01/38

     1,975       2,123,204  

Series D, 5.00%, 11/01/42

     1,500       1,610,505  

Series H, 5.00%, 11/01/32

     3,000       3,255,330  

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

     975       1,117,077  

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

     3,420       1,385,032  

North Texas Tollway Authority, Refunding RB:

    

1st Tier System (NPFGC), 5.75%, 1/01/18

     600       626,046  
Municipal Bonds   

Par

(000)

    Value  

Texas (continued)

    

North Texas Tollway Authority, Refunding RB (continued):

    

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

   $ 195     $ 201,967  

1st Tier System, Series A,
6.00%, 1/01/19 (a)

     2,270       2,476,729  

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

     525       569,567  

1st Tier System, Series K-2 (AGC),
6.00%, 1/01/19 (a)

     4,015       4,380,646  

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

     805       839,945  

1st Tier, Series K-1 (AGC),
5.75%, 1/01/19 (a)

     3,800       4,128,130  

Series B, 5.00%, 1/01/40

     250       276,203  

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

    

0.00%, 9/15/35

     4,990       2,145,301  

0.00%, 9/15/36

     11,525       4,672,926  

0.00%, 9/15/37

     8,245       3,145,138  

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

    

5.00%, 12/15/32

     705       749,119  

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

     1,190       1,268,350  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, AMT, Blueridge Transportation Group, 5.00%, 12/31/45

     1,275       1,337,679  

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

     3,080       3,356,060  
    

 

 

 
        46,261,465  

Utah — 1.5%

    

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

     5,000       5,268,150  

Washington — 0.7%

    

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

     1,015       1,109,415  

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

    

5.00%, 10/01/39

     525       559,094  
 

 

                
   BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017    7


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds   

Par

(000)

    Value  

Washington (continued)

    

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

    

5.25%, 10/01/39

   $ 625     $ 672,050  
    

 

 

 
        2,340,559  

Wisconsin — 0.8%

    

Public Finance Authority, RB, KU Campus Development Corp., Central District Development Project, 5.00%, 3/01/46

     1,100       1,203,213  

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

     1,375       1,490,651  
    

 

 

 
        2,693,864  
Total Municipal Bonds — 122.8%       427,930,540  
    
                  

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

                

Arizona — 0.4%

    

City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Water System, Junior Lien, Series A, 5.00%, 7/01/19 (a)

     1,200       1,307,988  

California — 2.0%

    

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

    

5.00%, 5/01/18

     466       489,777  

5.00%, 5/01/18

     2,344       2,462,465  

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

     2,500       2,553,200  

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/19 (a)

     404       444,015  

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

     840       927,012  
    

 

 

 
        6,876,469  

Colorado — 2.4%

    

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

    

5.50%, 7/01/34 (e)

     900       934,492  

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

  

Par

(000)

    Value  

Colorado (continued)

    

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

    

5.00%, 2/01/41

   $ 7,000     $ 7,240,730  
    

 

 

 
        8,175,222  

Connecticut — 0.4%

    

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

     1,381       1,509,659  

District of Columbia — 1.7%

    

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

     1,005       1,114,644  

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

     1,779       1,923,817  

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

     2,530       2,809,186  
    

 

 

 
        5,847,647  

Florida — 4.4%

    

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

     4,480       4,925,043  

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

     4,621       5,071,680  

County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 8/01/19 (a)

     3,544       3,914,958  

State of Florida Board of Education, GO, Refunding, Series C, 5.00%, 6/01/18 (e)

     1,349       1,381,847  
    

 

 

 
        15,293,528  

Illinois — 3.8%

    

State of Illinois, RB, Build Illinois, Series B,
5.25%, 6/15/19 (a)(e)

     4,399       4,806,204  

State of Illinois Toll Highway Authority, RB:

    

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

     2,730       3,001,652  

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

     1,880       1,957,522  

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

     1,050       1,156,612  
 

 

                
8    BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

  

Par  

(000)

    Value  

Illinois (continued)

    

State of Illinois Toll Highway Authority, RB (continued):

    

Series A, 5.00%, 1/01/38

   $ 2,138     $ 2,350,407  
    

 

 

 
        13,272,397  

Kansas — 1.6%

    

County of Wyandotte Kansas Unified School District, GO, Series A, 5.50%, 9/01/47

     4,723       5,565,318  

Maryland — 0.9%

    

City of Baltimore Maryland , Subordinate RB, Water Projects, Series A, 5.00%, 7/01/41

     2,808       3,175,635  

Massachusetts — 0.5%

    

Commonwealth of Massachusetts, GO, Series A,
5.00%, 3/01/46

     1,461       1,629,674  

Michigan — 3.3%

    

Michigan Finance Authority, RB, Beaumont Health Credit Group, 5.00%, 11/01/44

     1,970       2,129,671  

Michigan Finance Authority, Refunding RB, Hospital, Trinity Health Credit Group, 5.00%, 12/01/39

     7,510       8,410,374  

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

     870       956,878  
    

 

 

 
        11,496,923  

Nevada — 4.3%

    

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/19 (a)(e)

     3,778       4,164,738  

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

    

Limited Tax, 5.75%, 7/01/19

     1,829       2,027,015  

5.50%, 7/01/19

     4,499       4,957,925  

Las Vegas Valley Water District Nevada, GO, Refunding, Water Improvement, Series A, 5.00%, 6/01/46

     3,460       3,905,302  
    

 

 

 
        15,054,980  

New Jersey — 0.8%

    

County of Hudson New Jersey Improvement Authority, RB, Hudson County Vocational-Technical Schools Project, 5.25%, 5/01/51

     800       909,768  

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

  

Par  

(000)

    Value  

New Jersey (continued)

    

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

   $ 1,840     $ 1,869,722  
    

 

 

 
        2,779,490  

New York — 5.5%

    

City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009, Series A:

    

5.75%, 6/15/18 (a)

     290       306,864  

5.75%, 6/15/40

     969       1,026,290  

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       6,303,410  

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       1,888,426  

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

     3,470       3,959,374  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

     1,500       1,698,315  

Port Authority of New York & New Jersey, Refunding RB, Consolidated, 198th Series, 5.25%, 11/15/56

     2,241       2,562,913  

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

     1,300       1,388,543  
    

 

 

 
        19,134,135  

Ohio — 0.2%

    

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

     580       619,336  

Pennsylvania — 0.3%

    

County of Westmoreland Pennsylvania Municipal Authority, RB, Westmoreland County, Pennsylvania (BAM), 5.00%, 8/15/42

     900       990,513  

 

 

 

                
   BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017    9


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

  

Par  

(000)

    Value  

South Carolina— 0.4%

    

South Carolina Public Service Authority, Refunding RB, Series A (a)(e):

    

5.50%, 1/01/19

   $ 102     $ 109,993  

5.50%, 1/01/19

     1,175       1,271,825  
    

 

 

 
        1,381,818  

Texas — 1.7%

    

Clear Creek Independent School District, GO, Refunding, Schoolbuilding (PSF-GTD):

    

5.00%, 2/15/17 (a)

     1,812       1,814,707  

5.00%, 2/15/33

     388       388,945  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Texas Health Resources System, Series A, 5.00%, 2/15/41

     3,440       3,822,941  
    

 

 

 
        6,026,593  

Virginia — 0.1%

    

County of Fairfax Virginia IDA, Refunding RB, Health Care, Inova Health System:

    

5.50%, 5/15/19 (a)

     122       132,896  

5.50%, 5/15/35

     227       246,903  
    

 

 

 
        379,799  

Washington — 2.1%

    

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

     4,004       4,128,202  

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

     2,880       3,329,193  
    

 

 

 
        7,457,395  

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       2,125,055  

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

  

Par  

(000)

    Value  

Wisconsin (continued)

    

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

    

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

   $ 1,430     $ 1,503,549  
    

 

 

 
        3,628,604  

Total Municipal Bonds Transferred to

Tender Option Bond Trusts — 37.8%

 

 

    131,603,123  

Total Long-Term Investments

(Cost — $523,387,259) — 160.6%

 

 

    559,533,663  
    
                  
Short-Term Securities    Shares         

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.50% (f)(g)

     3,099,082       3,099,392  

Total Short-Term Securities

(Cost — $3,099,284) — 0.9%

 

 

    3,099,392  

Total Investments (Cost — $526,486,543*) — 161.5%

 

    562,633,055  

Other Assets Less Liabilities — 0.8%

 

    2,672,468  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (21.5)%

 

    (74,718,726

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (40.8)%

 

    (142,257,189
    

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 348,329,608  
    

 

 

 

 

*   As of January 31, 2017, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

  $ 452,612,324  
 

 

 

 

Gross unrealized appreciation

  $ 38,099,920  

Gross unrealized depreciation

    (2,671,734
 

 

 

 

Net unrealized appreciation

  $ 35,428,186  
 

 

 

 
 

 

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)   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.

 

                
10    BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

 

(e)   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, 2017 to December 1, 2029, is $11,957,863.

 

(f)   During the period ended January 31, 2017, investments in issuers considered to be an affiliate 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,
2016
       Net
Activity
       Shares Held
at January 31,
2017
      

Value at

January 31,
2017

       Income       

Net Realized

Gain (Loss)

      

Change in
Unrealized

Appreciation
(Depreciation)

 

BlackRock Liquidity Funds, MuniCash, Institutional Class

       2,133,375          965,707          3,099,082        $ 3,099,392        $ 6,259        $ (61      $ 108  

 

(g)   Current yield as of period end.

 

                
   BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017    11


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

Derivative Financial Instruments Outstanding as of Period End

 

Futures Contracts

 

                       
Contracts
Short
     Issue   Expiration          Notional
Value
   

Unrealized

Appreciation

(Depreciation)

        
(37)      5-Year U.S. Treasury Note   March 2017     $  4,361,086     $ (2,878  
(151)      10-Year U.S. Treasury Note   March 2017     $  18,794,781       (28,602  
(125)      Long U.S. Treasury Bond   March 2017     $  18,855,469       37,918    
(15)      Ultra U.S. Treasury Bond   March 2017           $  2,410,312       3,328          

Total

    $ 9,766          

 

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
BAM    Build America Mutual Assurance Co.
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
GTD    Guaranteed
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    Permanent School Fund
PSF-GTD    Permanent School Fund Guaranteed
RB    Revenue Bonds
S/F    Single-Family

 

                
12    BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017   


Schedule of Investments (continued)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

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. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 Investments include equity or debt issued by privately-held companies. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

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 Investments 1

           $ 559,533,663                 $ 559,533,663  

Short-Term Securities

  $ 3,099,392                            3,099,392  
 

 

 

 

Total

  $ 3,099,392        $ 559,533,663                 $ 562,633,055  
 

 

 

 
                
                                       
Derivative Financial Instruments 2                 

Assets:

                

Interest rate contracts

  $ 41,246                          $ 41,246  

Liabilities:

                

Interest rate contracts

    (31,480                          (31,480
 

 

 

 

Total

  $ 9,766                          $ 9,766  
 

 

 

 

 

  1   

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

  2   

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

 

                
   BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017    13


Schedule of Investments (concluded)

  

BlackRock MuniEnhanced Fund, Inc. (MEN)

 

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  

Liabilities:

                

TOB Trust Certificates

           $ (74,592,545               $ (74,592,545

VRDP Shares at Liquidation Value

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

 

 

 

Total

           $ (217,092,545               $ (217,092,545
 

 

 

 

During the period ended January 31, 2017, there were no transfers between levels.

 

                
14    BLACKROCK MUNIENHANCED FUND, INC.    JANUARY 31, 2017   


Item 2 – Controls and Procedures

 

2(a) –

  

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

2(b) –

   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 –

   Exhibits
  

Certifications – Attached hereto

 


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock MuniEnhanced Fund, Inc.

By:    /s/ John M. Perlowski                

         John M. Perlowski

         Chief Executive Officer (principal executive officer) of

         BlackRock MuniEnhanced Fund, Inc.

Date: March 23, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:    /s/ John M. Perlowski                

         John M. Perlowski

         Chief Executive Officer (principal executive officer) of

         BlackRock MuniEnhanced Fund, Inc.

Date: March 23, 2017

By:    /s/ Neal J. Andrews                    

         Neal J. Andrews

         Chief Financial Officer (principal financial officer) of

         BlackRock MuniEnhanced Fund, Inc.

Date: March 23, 2017