UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-05739
Name of Fund: BlackRock MuniEnhanced Fund, Inc. (MEN)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive Officer,
BlackRock MuniEnhanced Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ
08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011
Registrant's telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 01/31/2008
Date of reporting period: 02/01/2008 - 04/30/2008
Item 1 - Schedule of Investments
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of April 30, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Alabama - 1.9% Jefferson County, Alabama, Limited Obligation School Warrants, Series
A, 5.50%, 1/01/22 $ 2,750 $ 2,550,570
Jefferson County, Alabama, Limited Obligation School Warrants, Series
A, 4.75%, 1/01/25 2,200 1,851,014
University of Alabama, General Revenue Bonds, Series A, 5%, 7/01/34 (a) 1,400 1,422,932
-------------
5,824,516
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Arizona - 0.8% Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds,
5%, 12/01/37 2,640 2,359,870
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California - 32.2% Alameda Corridor Transportation Authority, California, Capital Appreciation
Revenue Refunding Bonds, Subordinate Lien, Series A, 5.464%, 10/01/24 (b)(c) 10,000 8,279,700
Alameda Corridor Transportation Authority, California, Capital Appreciation
Revenue Refunding Bonds, Subordinate Lien, Series A, 5.495%, 10/01/25 (b)(c) 6,000 4,956,960
Anaheim, California, Public Financing Authority, Electric System Distribution
Facilities Revenue Bonds, Series A, 5%, 10/01/31 (d) 950 963,110
Anaheim, California, Public Financing Authority, Lease Revenue Bonds
(Public Improvements Project), Senior Series A, 6%, 9/01/24 (d) 5,000 5,729,100
Antelope Valley, California, Community College District, GO (Election of 2004),
Series B, 5.25%, 8/01/39 (a) 600 625,584
Arcadia, California, Unified School District, Capital Appreciation, GO
(Election of 2006), Series A, 4.96%, 8/01/39 (c)(d) 1,600 277,664
Cabrillo, California, Community College District, GO (Election of 2004),
Series B, 5.20%, 8/01/37 (a)(c) 2,400 444,168
California State, GO, Refunding, 5.25%, 9/01/10 (e) 2,350 2,480,495
California State, GO, Refunding, 5.125%, 6/01/11 (e) 4,940 5,302,497
California State, GO, Refunding, 5.125%, 6/01/27 20 20,246
California State, GO, Refunding, 5.125%, 6/01/31 60 60,414
California State, GO, Refunding, 5.25%, 2/01/33 (f) 4,400 4,481,048
California State, GO, Refunding, 5%, 6/01/37 (g) 4,300 4,356,244
California State Public Works Board, Lease Revenue Bonds (Department of
Corrections), Series C, 5%, 6/01/25 1,900 1,913,718
California State University, Systemwide Revenue Bonds, Series A,
5%, 11/01/35 (h) 2,600 2,603,406
California State, Various Purpose, GO, 5.50%, 11/01/33 8,490 8,757,859
Chino Valley, California, Unified School District, GO (Election of 2002),
Series C, 5.25%, 8/01/30 (a) 850 876,809
Portfolio Abbreviations
To simplify the listings of BlackRock MuniEnhanced Fund, Inc.'s portfolio
holdings in the Schedule of Investments, we have abbreviated the names of many
of the securities according to the list below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
PUTTERS Puttable Tax-Exempt Receipts
S/F Single-Family
VRDN Variable Rate Demand Notes
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of April 30, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
East Side Union High School District, California, Santa Clara County, GO
(Election of 2002), Series D, 5%, 8/01/26 (g) $ 1,600 $ 1,603,744
Fresno, California, Unified School District, GO (Election of 2001),
Series E, 5%, 8/01/30 (d) 900 925,668
Golden State Tobacco Securitization Corporation of California, Tobacco Settlement
Revenue Bonds, Series B, 5.50%, 6/01/13 (e)(g) 2,835 3,100,441
Los Angeles, California, Department of Water and Power, Waterworks Revenue
Bonds, Series C, 5%, 7/01/29 (a) 5,300 5,418,137
Metropolitan Water District of Southern California, Waterworks Revenue Bonds,
Series B-1, 5%, 10/01/29 (h) 2,965 3,025,486
Metropolitan Water District of Southern California, Waterworks Revenue Bonds,
Series B-1, 5%, 10/01/36 (h) 1,655 1,680,024
Norco, California, Redevelopment Agency, Tax Allocation Refunding Bonds
(Norco Redevelopment Project - Area Number 1), 5.125%, 3/01/30 (a) 5,000 5,061,550
Orange County, California, Sanitation District, COP, 5%, 2/01/33 (h) 7,455 7,529,848
Orange County, California, Sanitation District, COP, Series B, 5%,
2/01/30 (d) 1,500 1,534,035
Orange County, California, Sanitation District, COP, Series B, 5%,
2/01/31 (d) 900 919,773
Poway, California, Redevelopment Agency, Tax Allocation Refunding Bonds
(Paguay Redevelopment Project), 5.125%, 6/15/33 (b) 1,750 1,752,748
Rancho Cucamonga, California, Redevelopment Agency, Tax Allocation Refunding
Bonds (Rancho Redevelopment Project), Series A, 5%, 9/01/34 (a) 400 400,564
Redding, California, Electric System, COP, Series A, 5%, 6/01/30 (d) 1,820 1,857,510
Sacramento, California, Unified School District, GO (Election of 2002),
5%, 7/01/30 (a) 3,850 3,938,165
Stockton, California, Public Financing Authority, Lease Revenue Bonds
(Parking & Capital Projects), 5.125%, 9/01/30 (h) 6,145 6,177,569
Tamalpais, California, Union High School District, GO (Election of 2001),
5%, 8/01/28 (d) 1,600 1,633,936
Ventura County, California, Community College District, GO (Election of 2002),
Series B, 5%, 8/01/30 (a) 2,325 2,373,011
-------------
101,061,231
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Colorado - 5.8% Boulder County, Colorado, Hospital Development Revenue Bonds (Longmont United
Hospital Project), 5.75%, 12/01/10 (e)(f) 2,135 2,301,701
Colorado HFA, Revenue Bonds (S/F Program), AMT, Senior Series A-1,
7.40%, 11/01/27 15 15,276
Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series A-2,
7.50%, 4/01/31 465 482,977
Colorado Health Facilities Authority Revenue Bonds (Catholic Health Initiatives),
Series A, 5.50%, 3/01/32 (i) 1,200 1,269,480
Colorado Health Facilities Authority Revenue Bonds (Covenant
Retirement Communities Inc.), Series A, 5.50%, 12/01/27 (f) 1,200 1,209,600
Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement
Communities Inc.), Series A, 5.50%, 12/01/33 (f) 675 671,294
Colorado Water Resources and Power Development Authority, Clean Water Revenue
Bonds, Series A, 6.25%, 9/01/10 (e) 3,875 4,206,545
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of April 30, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Denver, Colorado, City and County Airport Revenue Refunding Bonds, AMT,
Series A, 6%, 11/15/18 (b) $ 2,000 $ 2,042,580
El Paso County, Colorado, School District Number 49, Falcon, GO, Series A,
6%, 12/01/09 (d)(e) 5,450 6,025,520
-------------
18,224,973
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District of District of Columbia, Ballpark Revenue Bonds, Series B-1, 5%,
Columbia - 3.1% 2/01/31 (a)(h) 10,000 9,799,500
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Florida - 4.1% Duval County, Florida, School Board, COP (Master Lease Program),
5%, 7/01/33 (d) 2,300 2,333,649
Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Adventist Health System), Series C, 5.25%, 11/15/36 3,600 3,511,512
Highlands County, Florida, Health Facilities Authority, Hospital Revenue
Refunding Bonds (Adventist Health System), Series G, 5.125%, 11/15/32 2,000 1,928,280
Miami, Florida, Special Obligation Revenue Bonds (Street and Sidewalk
Improvement Program), 5%, 1/01/37 (a) 820 821,189
Orange County, Florida, Sales Tax Revenue Refunding Bonds, Series B,
5.125%, 1/01/32 (h) 4,200 4,279,086
-------------
12,873,716
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Georgia - 7.3% Atlanta, Georgia, Airport Revenue Refunding Bonds, DRIVERS, Series 2642Z,
7.676%, 1/01/13 (d)(j) 3 2,656
Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5%,
11/01/34 (d) 2,900 2,941,760
Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5%, 11/01/33 (a) 1,000 1,005,040
Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5%, 11/01/39 (a) 4,250 4,261,135
Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25%, 10/01/39 (d) 2,300 2,369,828
Fulton County, Georgia, Water and Sewer Revenue Bonds, 5.25%, 1/01/35 (h) 2,500 2,560,075
Georgia Municipal Electric Authority, Power Revenue Refunding Bonds,
Series EE, 7%, 1/01/25 (b) 7,725 9,887,305
-------------
23,027,799
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Illinois - 18.4% Chicago, Illinois, O'Hare International Airport, General Airport Revenue
Refunding Bonds, Third Lien, AMT, Series A, 5.75%, 1/01/21 (a) 9,100 9,279,725
Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien, AMT,
Series B-2, 5.75%, 1/01/23 (d) 5,670 5,854,672
Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien, AMT,
Series B-2, 6%, 1/01/29 (g) 2,500 2,558,725
Cook County, Illinois, Capital Improvement, GO, Series C, 5.50%, 11/15/12 (b)(e) 2,460 2,725,877
Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds,
5.341%, 6/15/30 (b)(c) 20,120 18,395,112
Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds,
5%, 6/15/32 (b) 4,500 4,521,960
Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax
Revenue Refunding Bonds (McCormick Place Expansion Project),
Series B, 5.75%, 6/15/23 (a) 2,000 2,147,180
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of April 30, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Regional Transportation Authority, Illinois, Revenue Bonds, Series A,
7.20%, 11/01/20 (b) $10,115 $ 12,145,485
-------------
57,628,736
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Louisiana - 7.3% Lafayette, Louisiana, Utilities Revenue Bonds, 5%, 11/01/28 (a) 4,500 4,549,770
Louisiana Local Government Environmental Facilities and Community Development
Authority, Revenue Bonds (Capital Projects and Equipment Acquisition Program),
Series A, 6.30%, 7/01/30 (b) 3,600 3,753,684
Louisiana State Citizens Property Insurance Corporation, Assessment Revenue
Bonds, Series B, 5%, 6/01/23 (b) 2,035 1,990,637
Louisiana State, Gas and Fuels Tax Revenue Bonds, Series A, 5%,
5/01/36 (d) 2,650 2,695,448
Louisiana State, Gas and Fuels Tax Revenue Bonds, Series A, 4.75%, 5/01/39 (d) 4,075 4,010,004
Louisiana State Transportation Authority, Senior Lien Toll Revenue Capital
Appreciation Bonds, Series B, 5.31%, 12/01/27 (b)(c) 3,735 1,258,956
Rapides Financing Authority, Louisiana, Revenue Bonds (Cleco Power LLC Project),
AMT, 4.70%, 11/01/36 (b) 3,650 3,210,285
Terrebonne Parish, Louisiana, Hospital Service District Number 1, Hospital
Revenue Bonds (Terrebonne General Medical Center Project), 5.50%, 4/01/33 (b) 1,400 1,444,100
-------------
22,912,884
-----------------------------------------------------------------------------------------------------------------------------------
Massachusetts - Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds,
3.2% Senior Series A-2, 5.12%, 7/01/35 (c) 2,600 595,504
Massachusetts State, HFA, S/F Housing Revenue Bonds, AMT, Series 128, 4.80%,
12/01/27 (d) 1,600 1,490,256
Massachusetts State Port Authority, Special Facilities Revenue Bonds,
PUTTERS, VRDN, AMT, Series 501Z, 2.68%, 7/01/09 (b)(j) 4,990 4,990,000
Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds,
Series A, 5%, 8/15/30 (d) 1,800 1,840,698
Massachusetts State Water Resource Authority, General Revenue Refunding Bonds,
Series B, 5.125%, 8/01/27 (a) 950 975,356
-------------
9,891,814
-----------------------------------------------------------------------------------------------------------------------------------
Michigan - 4.3% Detroit, Michigan, Sewage Disposal System, Second Lien Revenue Bonds, Series B,
5%, 7/01/36 (a)(h) 3,600 3,602,160
Michigan Higher Education Student Loan Authority, Student Loan Revenue
Refunding Bonds, AMT, Series XVII-G, 5.20%, 9/01/20 (b) 1,700 1,684,173
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), AMT, Series A, 5.50%, 6/01/30 (g) 1,300 1,298,284
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), AMT, Series C, 5.65%, 9/01/29 (g) 2,500 2,526,225
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), AMT, Series C, 5.45%, 12/15/32 (g) 4,300 4,248,013
-------------
13,358,855
-----------------------------------------------------------------------------------------------------------------------------------
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of April 30, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Minnesota - 0.9% Dakota County, Minnesota, Community Development Agency, S/F Mortgage Revenue
Bonds (Mortgage-Backed Securities Program), Series B, 5.15%, 12/01/38 (k)(l) $ 3,041 $ 2,968,421
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Mississippi - 0.8% Walnut Grove, Mississippi, Correctional Authority, COP, 6%,
11/01/09 (b)(e) 2,400 2,578,032
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Nebraska - 0.6% Washington County, Nebraska, Wastewater Facilities Revenue Bonds
(Cargill Inc. Project), AMT, 5.90%, 11/01/27 1,700 1,781,957
-----------------------------------------------------------------------------------------------------------------------------------
Nevada - 3.8% Carson City, Nevada, Hospital Revenue Bonds (Carson-Tahoe Hospital Project),
Series A, 5.50%, 9/01/33 (f) 3,100 3,082,981
Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2,
5%, 7/01/30 (h) 1,500 1,478,160
Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2,
5%, 7/01/36 (h) 3,200 3,128,832
Clark County, Nevada, IDR (Southwest Gas Corporation Project), AMT, Series A,
4.75%, 9/01/36 (h) 3,920 3,130,238
Clark County, Nevada, IDR (Southwest Gas Corporation Project), AMT, Series D,
5.25%, 3/01/38 (h) 1,300 1,120,366
-------------
11,940,577
-----------------------------------------------------------------------------------------------------------------------------------
New Hampshire - New Hampshire Health and Education Facilities Authority Revenue Bonds
2.5% (Dartmouth-Hitchcock Obligation Group), 5.50%, 8/01/27 (d) 7,390 7,819,063
-----------------------------------------------------------------------------------------------------------------------------------
New Jersey - 7.5% New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/31 700 658,140
New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75%, 6/15/34 1,165 1,114,893
New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A,
5%, 7/01/29 (a) 2,600 2,624,544
New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25%,
7/01/31 (a) 9,325 9,581,251
New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25%,
7/01/33 (a) 5,200 5,334,472
New Jersey EDA, School Facilities Construction Revenue Bonds, Series O, 5.125%,
3/01/28 3,960 4,075,830
-------------
23,389,130
-----------------------------------------------------------------------------------------------------------------------------------
New York - 2.0% Erie County, New York, IDA, School Facility Revenue Bonds
(City of Buffalo Project), Series A, 5.75%, 5/01/28 (d) 1,500 1,644,525
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds,
Series A, 5%, 11/15/32 (h) 2,250 2,252,092
Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1,
5.25%, 6/01/22 (b) 2,400 2,469,936
-------------
6,366,553
-----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 1.9% Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 99A,
5.25%, 10/01/32 1,500 1,444,020
Philadelphia, Pennsylvania, Authority for Industrial Development, Lease Revenue
Bonds, Series B, 5.50%, 10/01/11 (d)(e) 4,000 4,391,600
-------------
5,835,620
-----------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 2.7% Providence, Rhode Island, Public Building Authority, General Revenue Bonds,
Series A, 6.25%, 12/15/10 (d)(e) 4,345 4,791,405
Rhode Island State Economic Development Corporation, Airport Revenue Bonds,
Series B, 6.50%, 7/01/10 (e)(h) 3,355 3,674,295
-------------
8,465,700
-----------------------------------------------------------------------------------------------------------------------------------
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of April 30, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
South Carolina Berkeley County, South Carolina, School District, Installment Lease Revenue
- 1.9% Bonds (Securing Assets for Education Project), 5.125%, 12/01/30 $ 3,800 $ 3,792,248
Kershaw County, South Carolina, Public Schools Foundation, Installment Power
Revenue Refunding Bonds, 5%, 12/01/29 (m) 2,365 2,286,104
-------------
6,078,352
-----------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.1% Knox County, Tennessee, Health, Educational and Housing Facilities Board,
Hospital Facilities Revenue Refunding Bonds (Covenant Health), Series A,
5.04%, 1/01/38 (c) 6,000 974,760
Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series A,
5.25%, 9/01/26 2,610 2,517,502
-------------
3,492,262
-----------------------------------------------------------------------------------------------------------------------------------
Texas - 12.1% Dallas-Fort Worth, Texas, International Airport, Joint Revenue Bonds, AMT,
Series B, 6%, 11/01/23 (a) 600 606,246
Dallas-Fort Worth, Texas, International Airport Revenue Bonds, AMT, Series A,
5.50%, 11/01/33 (a) 14,500 14,506,815
Leander, Texas, Independent School District, Capital Appreciation, GO, Refunding
(School Building), 5.58%, 8/15/35 (c) 10,000 2,237,700
Lewisville, Texas, Independent School District, Capital Appreciation and
School Building, GO, Refunding, 4.67%, 8/15/24 (c)(h) 4,475 1,833,363
Matagorda County, Texas, Navigation District Number 1, PCR, Refunding (Central
Power and Light Company Project), AMT, 5.20%, 5/01/30 (a) 2,500 2,420,450
North Harris County, Texas, Regional Water Authority, Senior Lien Revenue Bonds,
5.125%, 12/15/35 (a) 5,820 5,860,274
North Texas Tollway Authority, System Revenue Refunding Bonds, 5.75%, 1/01/40 (a) 1,600 1,688,480
North Texas Tollway Authority, System Revenue Refunding Bonds, First Tier,
Series A, 6%, 1/01/25 625 672,406
Texas State Affordable Housing Corporation, S/F Mortgage Revenue Bonds
(Professional Educators Home Loan Program), AMT, Series A-1, 5.50%, 12/01/39 (k)(l) 1,587 1,532,650
Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds,
First Tier, Series A, 5.50%, 8/15/39 (b) 6,250 6,404,750
-------------
37,763,134
-----------------------------------------------------------------------------------------------------------------------------------
Utah - 1.6% Utah Transit Authority, Sales Tax Revenue Bonds, Series A, 5%,
6/15/36 (d) 5,000 5,139,800
-----------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.9% Vermont HFA, S/F Housing Revenue Bonds, AMT, Series 27, 4.85%,
11/01/32 (d) 3,100 2,834,454
-----------------------------------------------------------------------------------------------------------------------------------
Virginia - 4.8% Fairfax County, Virginia, EDA, Resource Recovery Revenue Refunding Bonds, AMT,
Series A, 6.10%, 2/01/10 (b) 10,000 10,380,900
Halifax County, Virginia, IDA, Exempt Facility Revenue Refunding Bonds
(Old Dominion Electric Cooperative Project), AMT, 5.625%, 6/01/28 (b) 2,300 2,329,992
Virginia State, HDA, Commonwealth Mortgage Revenue Bonds, Series H,
Sub-Series H-1, 5.35%, 7/01/31 (a) 2,300 2,320,608
-------------
15,031,500
-----------------------------------------------------------------------------------------------------------------------------------
Washington - 2.4% Central Puget Sound Regional Transportation Authority, Washington, Sales and
Use Tax Revenue Bonds, Series A, 5%, 11/01/32 (d) 4,000 4,106,560
Port of Tacoma, Washington, GO, AMT, Series B, 4.875%, 12/01/38 (n) 1,290 1,226,093
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of April 30, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Snohomish County, Washington, Public Utility District Number 001, Electric
Revenue Refunding Bonds, 5.375%, 12/01/09 (d)(e) $ 2,000 $ 2,114,680
-------------
7,447,333
-----------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 0.8% Wisconsin State Health and Educational Facilities Authority Revenue Bonds
(Ascension Health), 5%, 11/15/31 (d) 2,575 2,592,742
-----------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds
(Cost - $425,713,975) - 136.7% 428,488,524
-----------------------------------------------------------------------------------------------------------------------------------
Municipal Bonds Transferred to Tender
Option Bond Trusts (o)
-----------------------------------------------------------------------------------------------------------------------------------
Florida - 2.9% Miami-Dade County, Florida, Aviation Revenue Bonds, AMT, Miami International
Airport, Airport and Marina Imports, 5%, 10/01/2040 (g)(n) 9,900 8,954,923
-----------------------------------------------------------------------------------------------------------------------------------
Georgia - 5.7% Atlanta, Georgia, Airport Revenue Bonds, Airport and Marina Imports,
Series B, 5.25%, 1/01/33 (d) 17,355 17,897,344
-----------------------------------------------------------------------------------------------------------------------------------
Massachusetts Massachusetts State HFA, Housing Revenue Bonds (Rental Mortgage), AMT,
- 7.6% Series F, 5.25%, 1/01/46 (d) 5,600 5,259,968
Massachusetts State Port Authority, Special Facilities Revenue Bonds
(Delta Air Lines Inc. Project), AMT, Series A, 5.50%, 1/01/16 (b) 3,100 2,994,987
Massachusetts State Port Authority, Special Facilities Revenue Bonds
(Delta Air Lines Inc. Project), AMT, Series A, 5.50%, 1/01/18 (b) 4,000 3,864,500
Massachusetts State Port Authority, Special Facilities Revenue Bonds
(Delta Air Lines Inc. Project), AMT, Series A, 5.50%, 1/01/19 (b) 2,870 2,772,779
Massachusetts State School Building Authority, Dedicated Sales Tax
Revenue Bonds, Series A, 5%, 8/15/30 (d) 8,800 8,998,968
-------------
23,891,202
-----------------------------------------------------------------------------------------------------------------------------------
New Jersey - 6.7% New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/24 (n) 15,250 15,690,267
New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/31 (n) 5,000 5,178,150
-------------
20,868,417
-----------------------------------------------------------------------------------------------------------------------------------
South Carolina Charleston Educational Excellence Financing Corporation, South Carolina,
- 5.3% Revenue Bonds (Charleston County School District), 5.25% 12/01/28 (n) 3,120 3,240,401
Charleston Educational Excellence Financing Corporation, South Carolina,
Revenue Bonds (Charleston County School District), 5.25% 12/01/29 (n) 2,765 2,868,134
Charleston Educational Excellence Financing Corporation, South Carolina,
Revenue Bonds (Charleston County School District), 5.25% 12/01/30 (n) 1,010 1,045,714
Pickens County South Carolina, Scago Educational Facility Revenue Bonds,
Federal and State Tax-exempt, 5% 12/01/31 (d) 9,200 9,321,348
-------------
16,475,597
-----------------------------------------------------------------------------------------------------------------------------------
Texas - 3.5% Travis County, Texas, Health Facilities Development Corporation,
Revenue Refunding Bonds (Ascension Health Credit), Series A, 5.875%,
11/15/09 (b)(e) 10,400 11,056,344
-----------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds Transferred to Tender
Option Bond Trusts (Cost - $101,949,400) - 31.7% 99,143,827
-----------------------------------------------------------------------------------------------------------------------------------
Short-Term Securities Shares
-----------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund, 3.03% (p)(q) 25,500,000 25,500,000
-----------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost - $25,500,000) - 8.1% 25,500,000
-----------------------------------------------------------------------------------------------------------------------------------
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of April 30, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Value
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost - $553,163,375*) - 176.5% $ 553,132,351
Liability for Trust Certificates, Including Interest Expense Payable - (15.7%) (49,356,738)
Preferred Stock, at Redemption Value - (59.7%) (187,081,233)
Liabilities in Excess of Other Assets - (1.1%) (3,326,119)
-------------
Net Assets Applicable to Common Stock - 100.0% $ 313,368,261
=============
* The cost and unrealized appreciation (depreciation) of investments as of
April 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 503,294,834
=============
Gross unrealized appreciation $ 10,601,948
Gross unrealized depreciation (9,800,530)
-------------
Net unrealized appreciation $ 801,418
=============
(a) MBIA Insured.
(b) AMBAC Insured.
(c) Represent a zero coupon or step bond; the interest rate shown reflects the
effective yield at the time of purchase.
(d) FSA Insured.
(e) U.S. government securities, held in escrow, are used to pay interest on
this security, as well as, retire the bond in full at the date indicated,
typically at a premium to par.
(f) Radian Insured.
(g) XL Capital Insured.
(h) FGIC Insured.
(i) Security is collateralized by Municipal or U.S. Treasury Obligations.
(j) Variable rate security. Rate shown is as of report date. Maturity shown is
the final maturity date.
(k) FHLMC Collateralized.
(l) FNMA/GNMA Collateralized.
(m) CIFG Insured.
(n) Assured Guaranty Insured.
(o) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as a collateral in a financing transaction.
(p) Represents the current yield as of report date.
(q) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund 21,281,229 $ 55,445
--------------------------------------------------------------------------
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of April 30, 2008 (Unaudited)
o Forward interest rate swaps outstanding as of April 30, 2008 were as
follows:
Notional
Amount Unrealized
(000) Depreciation
-------------------------------------------------------------------------------------------------
Pay a fixed rate of 3.60% and receive a floating rate based on
1-week (SIMFA) Municipal Swap Index rate
Broker, JPMorgan Chase
Expires June 2023 $ 12,500 $ (117,975)
Pay a fixed rate of 3.734% and receive a floating rate based on
1-week (SIFMA) Municipal Swap Index rate
Broker, JPMorgan Chase
Expires May 2028 10,000 (130,380)
Pay a fixed rate of 3.958% and receive a floating rate based on
1-week (SIFMA) Municipal Swap Index rate
Broker, JPMorgan Chase
Expires May 2028 12,750 (531,752)
Pay a fixed rate of 3.689% and receive a floating rate based on
1-week (SIMFA) Municipal Swap Index rate
Broker, Citibank NA
Expires June 2028 7,500 (42,420)
-------------------------------------------------------------------------------------------------
Total $ (822,527)
==========
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of April 30, 2008 (Unaudited)
o Effective February 1, 2008, the BlackRock MuniEnhanced Fund, Inc. (the
"Fund") adopted FASB Statement of Financial Accounting Standards No. 157,
"Fair Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of
fair value, establishes a framework for measuring fair values and requires
additional disclosures about the use of fair value measurements. Various
updates are used in determining the fair value of investments, which are
as follows:
o Level 1 - price quotations in active markets/exchanges for
identical securities
o Level 2 - other observable inputs (including, but not limited
to: quoted prices for similar assets or liabilities in markets
that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss
severities, credit risks, and default rates) or other
market-corroborated inputs)
o Level 3 - unobservable inputs based on the best information
available in the circumstance, to the extent observable inputs
are not available (including the Fund's own assumption used in
determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities.
For information about the Fund's policy regarding valuation of investments
and other significant accounting policies, please refer to the Fund's most
recent financial statements as contained in its annual report.
The following table summarizes the inputs used as of April 30, 2008 in
determining the fair valuation of the Fund's investments:
--------------------------------------------------------------------------
Valuation Investments in Other Financial
Inputs Securities Instruments*
--------------------------------------------------------------------------
Level 1 -- --
Level 2 $ 553,132,351 $ (822,527)
Level 3 -- --
--------------------------------------------------------------------------
Total $ 553,132,351 $ (822,527)
==========================================================================
* Other financial instruments are derivative instruments such as swaps.
Item 2 - Controls and Procedures
2(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the registrant's last fiscal quarter that have
materially affected, or are reasonably likely to materially affect,
the registrant's internal control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock MuniEnhanced Fund, Inc.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Executive Officer of
BlackRock MuniEnhanced Fund, Inc.
Date: June 23, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock MuniEnhanced Fund, Inc.
Date: June 23, 2008
By: /s/ Neal J. Andrews
-------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniEnhanced Fund, Inc.
Date: June 23, 2008