Edgar Filing: BLACKROCK MUNIENHANCED FUND, INC.

BLACKROCK MUNIENHANCED FUND, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

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 52^nd 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: 04/30/2016

Item 1 – Report to Stockholders

APRIL 30, 2016

ANNUAL REPORT

BlackRock MuniAssets Fund, Inc. (MUA)

BlackRock MuniEnhanced Fund, Inc. (MEN)

BlackRock MuniHoldings Fund, Inc. (MHD)

BlackRock MuniHoldings Fund II, Inc. (MUH)

BlackRock MuniHoldings Quality Fund, Inc. (MUS)

BlackRock Muni Intermediate Duration Fund, Inc. (MUI)

BlackRock MuniVest Fund II, Inc. (MVT)

Not FDIC Insured • May Lose Value • No Bank Guarantee


Table of Contents


	Page
The Markets in Review		3
Annual Report:
Municipal Market Overview		4
The Benefits and Risks of Leveraging		5
Derivative Financial Instruments		5
Fund Summaries		6
Financial Statements:
Schedules of Investments		20
Statements of Assets and Liabilities		68
Statements of Operations		70
Statements of Changes in Net Assets		72
Statements of Cash Flows		76
Financial Highlights		78
Notes to Financial Statements		85
Report of Independent Registered Public Accounting Firm		96
Automatic Dividend Reinvestment Plan		97
Officers and Directors		98
Additional Information		101



2	ANNUAL REPORT	APRIL 30, 2016

The Markets in Review

Dear Shareholder,

Diverging monetary policies and shifting economic outlooks across regions have been the overarching themes driving financial markets over the past couple of years. Investors spent most of 2015 anticipating the end of the Federal Reserve’s (the “Fed”) near-zero interest rate policy as U.S. growth outpaced other developed markets. The Fed ultimately hiked rates in December, whereas the European Central Bank and the Bank of Japan took additional steps to stimulate growth, even introducing negative interest rates. The U.S. dollar had strengthened considerably ahead of these developments, causing profit challenges for U.S. companies that generate revenues overseas, and pressuring emerging market currencies and commodities prices.

Global market volatility increased in the latter part of 2015 and spilled over into early 2016. Oil prices were a key factor behind the instability after collapsing in mid-2015 due to excess global supply. China, one of the world’s largest consumers of oil, was another notable source of stress for financial markets. Signs of slowing economic growth, a depreciating yuan and declining confidence in the country’s policymakers stoked investors’ worries about the potential impact of China’s weakness on the global economy. Risk assets (such as equities and high yield bonds) suffered in this environment.

After a painful start to the new year, fears of a global recession began to fade as the first quarter wore on, allowing markets to calm and risk assets to rebound. Central bank stimulus in Europe and Japan, combined with a more tempered outlook for rate hikes in the United States, helped bolster financial markets. A softening in U.S. dollar strength offered some relief to U.S. exporters and emerging market economies. Oil prices found firmer footing as global supply showed signs of leveling off.

The selloff in risk assets at the turn of the year brought valuations to more reasonable levels, creating some appealing entry points for investors in 2016. Nonetheless, slow but relatively stable growth in the United States is countered by a less optimistic global economic outlook and uncertainties around the efficacy of China’s policy response, the potential consequences of negative interest rates in Europe and Japan, and a host of geopolitical risks.

For the 12 months ended April 30, 2016, higher-quality assets such as municipal bonds, U.S. Treasuries and investment grade corporate bonds generated positive returns, while riskier assets such as non-U.S. and small cap equities broadly declined.

At BlackRock, we believe investors need to think globally, extend their scope across a broad array of asset classes and be prepared to adjust accordingly as market conditions change over time. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC


Total Returns as of April 30, 2016
	6-month			12-month
U.S. large cap equities (S&P 500^® Index)		0.43	%		1.21	%
U.S. small cap equities (Russell 2000^® Index)		(1.90	)		(5.94	)
International equities (MSCI Europe, Australasia, Far East Index)		(3.07	)		(9.32	)
Emerging market equities (MSCI Emerging Markets Index)		(0.13	)		(17.87	)
3-month Treasury bills (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index)		0.14			0.15
U.S. Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index)		3.76			3.74
U.S. investment grade bonds (Barclays U.S. Aggregate Bond Index)		2.82			2.72
Tax-exempt municipal bonds (S&P Municipal Bond Index)		3.52			5.16
U.S. high yield bonds (Barclays U.S. Corporate High Yield 2% Issuer Capped Index)		2.38			(1.08	)
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.



		THIS PAGE NOT PART OF YOUR FUND REPORT				3


Municipal Market Overview


For the Reporting Period Ended April 30, 2016

Municipal Market Conditions

Municipal bonds generated positive performance for the period, due to falling interest rates and a favorable supply-and-demand environment. Interest rates were volatile in 2015 (bond prices rise as rates fall) leading up to a long-awaited rate hike from the U.S. Federal Reserve (the “Fed”) that ultimately came in December. However, ongoing reassurance from the Fed that rates would be increased gradually and would likely remain low overall resulted in strong demand for fixed income investments, with municipal bonds being one of the strongest-performing sectors for the 12-month period. Investors favored the relative stability of municipal bonds amid bouts of volatility resulting from uneven U.S. economic data, falling oil prices, global growth concerns, geopolitical risks, and widening central bank divergence — i.e., policy easing outside the United States while the Fed was posturing to commence policy tightening. During the 12 months ended April 30, 2016, municipal bond funds garnered net inflows of approximately $27 billion (based on data from the Investment Company Institute).

For the same 12-month period, total new issuance remained relatively strong from a historical perspective at $380 billion (though lower than the $397 billion issued in the prior 12-month period). A noteworthy portion of new supply during this period was attributable to refinancing activity (roughly 58%) as issuers took advantage of low interest rates and a flatter yield curve to reduce their borrowing costs.

S&P Municipal Bond Index

Total Returns as of April 30, 2016

6 months: 3.52%

12 months: 5.16%

A Closer Look at Yields

LOGO

From April 30, 2015 to April 30, 2016, yields on AAA-rated 30-year municipal bonds decreased by 47 basis points (“bps”) from 3.05% to 2.58%, while 10-year rates fell by 51 bps from 2.12% to 1.61% and 5-year rates decreased 32 bps from 1.30% to 0.98% (as measured by Thomson Municipal Market Data). The municipal yield curve experienced significant flattening over the 12-month period with the spread between 2- and 30-year maturities flattening by 58 bps and the spread between 2- and 10-year maturities flattening by 62 bps.

During the same time period, on a relative basis, tax-exempt municipal bonds broadly outperformed U.S. Treasuries with the greatest outperformance experienced in longer-term issues. In absolute terms, the positive performance of municipal bonds was driven largely by falling interest rates as well as a supply/demand imbalance within the municipal market as investors sought income and incremental yield in an environment where opportunities became increasingly scarce. More broadly, municipal bonds benefited from the greater appeal of tax-exempt investing in light of the higher tax rates implemented in 2014. The asset class is known for its lower relative volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers

The majority of municipal credits remain strong, despite well-publicized distress among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — have exhibited markedly improved credit fundamentals during the slow national recovery. However, several states with the largest unfunded pension liabilities have seen their bond prices decline noticeably and remain vulnerable to additional price deterioration. On the local level, Chicago’s credit quality downgrade is an outlier relative to other cities due to its larger pension liability and inadequate funding remedies. BlackRock maintains the view that municipal bond defaults will remain minimal and in the periphery while the overall market is fundamentally sound. We continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remains imperative amid uncertainty in a modestly improving economic environment.

The opinions expressed are those of BlackRock as of April 30, 2016, and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.

The Standard & Poor’s Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.



4	ANNUAL REPORT	APRIL 30, 2016


The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance the distribution rate on, and net asset value (“NAV”) of, their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Funds (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Funds’ shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, a Fund’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Fund with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Fund’s financing cost of leverage is significantly lower than the income earned on a Fund’s longer-term investments acquired from leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the Funds’ return on assets purchased with leverage proceeds, income to shareholders is lower than if the Funds had not used leverage. Furthermore, the value of the Funds’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the value of the Funds’ obligations under their respective leverage arrangements generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAVs positively or

negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that a Fund’s intended leveraging strategy will be successful.

Leverage also generally causes greater changes in the Funds’ NAVs, market prices and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Fund’s Common Shares than if the Funds were not leveraged. In addition, the Funds may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Funds to incur losses. The use of leverage may limit a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. The Funds incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of the Funds’ investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Funds’ investment advisor will be higher than if the Funds did not use leverage.

To obtain leverage, each Fund has issued Variable Rate Demand Preferred Shares (“VRDP Shares”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”), (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Fund is permitted to issue debt up to 33¹/₃ % of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Fund may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Fund may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

If a Fund segregates or designates on its books and records cash or liquid assets having a value not less than the value of a Fund’s obligations under the TOB Trust (including accrued interest), a TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements under the 1940 Act.


Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other asset without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instru-

ment and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Funds’ successful use of a derivative financial instrument depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.



ANNUAL REPORT	APRIL 30, 2016	5


Fund Summary as of April 30, 2016				BlackRock MuniAssets Fund, Inc.


Fund Overview

BlackRock MuniAssets Fund, Inc.’s (MUA) (the “Fund”) investment objective is to provide high current income exempt from federal income taxes by investing primarily in a portfolio of medium- to lower-grade or unrated municipal obligations, the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests at least 65% of its assets in municipal bonds that are rated in the medium to lower categories by nationally recognized rating services (for example, Baa or lower by Moody’s Investors Service, Inc. (“Moody’s”) or BBB or lower by Standard & Poor’s Corporation (“S&P”)) or non-rated securities which are of comparable quality. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.


Fund Information


Symbol on New York Stock Exchange (“NYSE”)		MUA
Initial Offering Date		June 25, 1993
Yield on Closing Market Price as of April 30, 2016 ($14.74)¹		4.88%
Tax Equivalent Yield²		8.62%
Current Monthly Distribution per Common Share³		$0.06
Current Annualized Distribution per Common Share³		$0.72
Economic Leverage as of April 30, 2016⁴		11%

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate may consist of income, net realized gains and/or a return of capital. See the Additional Information — Section 19(a) Notice for estimated sources and character of distributions. Past performance does not guarantee future results.

Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

The monthly distribution per Common Share, declared on June 1, 2016, was decreased to $0.0575 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

⁴

Represents TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 5.


Performance

Returns for the 12 months ended April 30, 2016 were as follows:


	Returns Based On
	Market Price			NAV
MUA^1,2		9.30	%		7.90	%
Lipper Closed-End High Yield Municipal Debt Funds³		9.79	%		7.73	%

All returns reflect reinvestment of dividends and/or distributions.

The Fund’s premium to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV.

Average return.

The following discussion relates to the Fund’s absolute performance based on NAV:

•

A positive interest-rate backdrop helped fuel a robust gain for the U.S. municipal bond market during the annual period. U.S. Treasury yields fell (as prices rose) amid an environment of slow global growth, declining yields overseas, and an emerging consensus that the Fed would maintain a gradual approach to raising short-term interest rates. Municipals generally outperformed Treasuries, reflecting favorable supply-and-demand conditions in the market and the overall health of state and local finances outside of select areas such as Puerto Rico, Illinois and New Jersey. Longer-term municipal bonds outpaced their short-term counterparts, while lower-quality securities typically outperformed higher-quality issues.

•

Income in the form of coupon payments made up a meaningful portion of the Fund’s total return for the period. In addition, the Fund’s minimal cash position and use of leverage provided both incremental return and income.

•

The Fund’s duration positioning, highlighted by concentrations in longer-dated securities with maturities of 25 years and above, also aided results. (Duration is a measure of interest-rate sensitivity.) Positions in lower-rated investment-grade bonds, as well as holdings of below investment-grade and unrated bonds, further helped performance at a time of elevated demand for higher-risk, higher-yielding investments. Sector concentrations in tobacco and health care contributed strongly given their outperformance relative to the broader municipal market. The Fund’s performance also benefited from minimal exposure to debt issued by Puerto Rico, which lagged the broader market considerably.

•

Despite offering generous yields in comparison to the broader market, the Fund’s more-seasoned holdings detracted from performance due to the premium amortization that occurred as the bonds approached their first call dates. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A bond premium occurs when the price of the bond has increased due to a decline in interest rates.) The Fund’s yield curve positioning also detracted somewhat given the more substantive decline in intermediate term yields in relation to the longer maturities in which the portfolio’s holdings are largely concentrated.

•

The Fund’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in the market.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.



6	ANNUAL REPORT	APRIL 30, 2016


		BlackRock MuniAssets Fund, Inc.


Market Price and Net Asset Value Per Share Summary


	4/30/16		4/30/15		Change			High		Low
Market Price	$	14.74	$	14.22		3.66	%	$	15.05	$	13.22
Net Asset Value	$	14.45	$	14.12		2.34	%	$	14.45	$	13.84

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Fund’s Total Investments*


Sector Allocation	4/30/16			4/30/15
Health		22	%		26	%
Transportation		19			19
Tobacco		14			10
County/City/Special District/School District		14			16
Education		9			8
Utilities		8			9
Corporate		7			8
Housing		4			1
State		3			3

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.


Credit Quality Allocation¹	4/30/16			4/30/15
AA/Aa		19	%		18	%
A		7			7
BBB/Baa		24			27
BB/Ba		10			9
B/B		9			8
CCC/Caa		—	²		1
N/R³		31			30

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either Standard & Poor’s (“S&P”) or Moody’s Investors Service (“Moody’s”) if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

Representing less than 1% of the Fund’s total investments.

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of April 30, 2016 and April 30, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade each represents 5% of the Fund’s total investments.



Call/Maturity Schedule⁴
Calendar Year Ended December 31,
2016	7	%
2017	8
2018	8
2019	5
2020	13

⁴

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Excludes short-term securities.



ANNUAL REPORT	APRIL 30, 2016	7


Fund Summary as of April 30, 2016				BlackRock MuniEnhanced Fund, Inc.


Fund Overview

BlackRock MuniEnhanced Fund, Inc.’s (MEN) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund invests primarily in long-term municipal bonds rated investment grade quality at the time of investment and invests primarily in long-term municipal bonds with maturities of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.


Fund Information


Symbol on NYSE		MEN
Initial Offering Date		March 2, 1989
Yield on Closing Market Price as of April 30, 2016 ($12.55)¹		5.78%
Tax Equivalent Yield²		10.21%
Current Monthly Distribution per Common Share³		$0.0605
Current Annualized Distribution per Common Share³		$0.7260
Economic Leverage as of April 30, 2016⁴		36%

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

The monthly distribution per Common Share, declared on June 1, 2016, was decreased to $0.0565 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

⁴

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 5.


Performance

Returns for the 12 months ended April 30, 2016 were as follows:


	Returns Based On
	Market Price			NAV
MEN^1,2		14.35	%		8.50	%
Lipper General & Insured Municipal Debt Funds (Leveraged)³		13.64	%		8.61	%

All returns reflect reinvestment of dividends and/or distributions.

The Fund moved from a discount NAV to a premium during the period, which accounts for the difference between performance based on price and performance based on NAV.

Average return.

The following discussion relates to the Fund’s absolute performance based on NAV:

•

Given the decline in yields, the Fund’s duration exposure made a significant contribution to performance during the annual period. (Duration is a measure of interest-rate sensitivity.)

•

Income in the form of coupon payments made up a meaningful portion of the Fund’s total return. In addition, the Fund’s minimal cash position and use of leverage provided both incremental return and income.

•

The 5- to 10-year portion of the yield curve outpaced the broader market during the first half of the period, while longer-term bonds led during the second half. In this environment, the Fund benefited from its exposure to the longer end of the yield curve. The Fund’s performance was also helped by its allocations to the tax-backed local, school district and transportation sectors. In addition, the Fund was aided by its positions in bonds with wider yield spreads at a time in which investors displayed a preference for higher-yielding securities.

•

The Fund’s positions in general obligation securities issued by the city of Chicago and the state of Illinois, which trailed the broader market due to investor concerns about budget issues and pension funding liabilities, had a negative impact on performance. Yield spreads on these issues widened significantly, especially during the first half of the reporting period, resulting in slightly lower prices for the full year.

•

The Fund’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in the market.



8	ANNUAL REPORT	APRIL 30, 2016


		BlackRock MuniEnhanced Fund, Inc.


Market Price and Net Asset Value Per Share Summary


	4/30/16		4/30/15		Change			High		Low
Market Price	$	12.55	$	11.67		7.54	%	$	12.70	$	10.87
Net Asset Value	$	12.52	$	12.27		2.04	%	$	12.57	$	11.92

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Fund’s Total Investments*


Sector Allocation	4/30/16			4/30/15
Transportation		21	%		20	%
County/City/Special District/School District		21			27
Utilities		16			16
State		15			15
Health		11			9
Education		10			10
Corporate		4			2
Housing		1			1
Tobacco		1			—


Credit Quality Allocation¹	4/30/16			4/30/15
AAA/Aaa		9	%		11	%
AA/Aa		58			58
A		25			25
BBB/Baa		7			6
N/R		1	²		—	³

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of April 30, 2016, the market value of unrated securities deemed by the investment advisor to be investment grade represents less than 1% of the Fund’s total investments.

Representing less than 1% of the Fund’s total investments.



Call/Maturity Schedule⁴
Calendar Year Ended December 31,
2016	8	%
2017	10
2018	10
2019	15
2020	4

⁴

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Excludes short-term securities.



ANNUAL REPORT	APRIL 30, 2016	9


Fund Summary as of April 30, 2016				BlackRock MuniHoldings Fund, Inc.


Fund Overview

BlackRock MuniHoldings Fund, Inc.’s (MHD) (the “Fund”) investment objective is to provide shareholders with current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Fund Information


Symbol on NYSE		MHD
Initial Offering Date		May 2, 1997
Yield on Closing Market Price as of April 30, 2016 ($18.14)¹		5.69%
Tax Equivalent Yield²		10.05%
Current Monthly Distribution per Common Share³		$0.086
Current Annualized Distribution per Common Share³		$1.032
Economic Leverage as of April 30, 2016⁴		36%

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

The monthly distribution per Common Share, declared on June 1, 2016, was decreased to $0.081 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

⁴

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques used by the Fund, please see The Benefits and Risks of Leveraging on page 5.


Performance

Returns for the 12 months ended April 30, 2016 were as follows:


	Returns Based On
	Market Price			NAV
MHD^1,2		11.91	%		8.65	%
Lipper General & Insured Municipal Debt Funds (Leveraged)³		13.64	%		8.61	%

All returns reflect reinvestment of dividends and/or distributions.

The Fund moved from a discount to NAV to a premium during the period, which accounts for the difference between performance based on price and performance based on NAV.

Average return.

The following discussion relates to the Fund’s absolute performance based on NAV:

•

The Fund’s duration positioning, highlighted by concentrations in longer-dated securities with maturities of 25 years and above, also aided results. (Duration is a measure of interest-rate sensitivity.) Positions in lower-rated investment-grade bonds, as well as holdings of below investment-grade and unrated bonds, further helped performance at a time of elevated demand for higher-risk, higher-yielding investments. Sector concentrations in transportation, health care and utilities also contributed strongly.

•

Despite offering generous yields in comparison to the broader market, the Fund’s more-seasoned holdings detracted from performance due to the premium amortization that occurred as the bonds approached their first call dates. (When a bond’s price trades at a premium over its face value, the difference is amortized over time. A bond premium occurs when the price of the bond has increased due to a decline in interest rates). The Fund’s yield curve positioning also detracted somewhat given the more substantive decline in intermediate term yields in relation to the longer maturities in which the portfolio’s holdings are largely concentrated.

•

The Fund’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in the market.



10	ANNUAL REPORT	APRIL 30, 2016


		BlackRock MuniHoldings Fund, Inc.


Market Price and Net Asset Value Per Share Summary


	4/30/16			4/30/15		Change			High		Low
Market Price	$	18.14		$	17.25		5.16	%	$	18.68	$	15.75
Net Asset Value	$	17.96	¹	$	17.59		2.10	%	$	18.00	$	17.08

The net asset value does not reflect adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and therefore differs from amounts reported in the Statements of Assets and Liabilities and the Financial Highlights.

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Fund’s Total Investments*


Sector Allocation	4/30/16			4/30/15
Transportation		24	%		25	%
Health		19			18
Utilities		12			11
County/City/Special District/School District		12			12
State		12			11
Education		10			10
Corporate		6			8
Tobacco		5			4
Housing		—			1


Credit Quality Allocation¹	4/30/16			4/30/15
AAA/Aaa		5	%		8	%
AA/Aa		48			44
A		22			26
BBB/Baa		13			11
BB/Ba		4			4
B		1			2
N/R²		7			5

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of April 30, 2016 and April 30, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 2% and 1%, respectively, of the Fund’s total investments.



Call/Maturity Schedule³
Calendar Year Ended December 31,
2016	5	%
2017	5
2018	5
2019	25
2020	12

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Excludes short-term securities.



ANNUAL REPORT	APRIL 30, 2016	11


Fund Summary as of April 30, 2016				BlackRock MuniHoldings Fund II, Inc.


Fund Overview

BlackRock MuniHoldings Fund II, Inc.’s (MUH) (the “Fund”) investment objective is to provide shareholders with current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.


Fund Information


Symbol on NYSE		MUH
Initial Offering Date		February 27, 1998
Yield on Closing Market Price as of April 30, 2016 ($16.23)¹		5.73%
Tax Equivalent Yield²		10.12%
Current Monthly Distribution per Common Share³		$0.0775
Current Annualized Distribution per Common Share³		$0.9300
Economic Leverage as of April 30, 2016⁴		35%

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

The monthly distribution per Common Share, declared on June 1, 2016, was decreased to $0.0745 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

⁴


Performance

Returns for the 12 months ended April 30, 2016 were as follows:


	Returns Based On
	Market Price			NAV
MUH^1,2		12.90	%		8.25	%
Lipper General & Insured Municipal Debt Funds (Leveraged)³		13.64	%		8.61	%

All returns reflect reinvestment of dividends and/or distributions.

The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV.

Average return.

The following discussion relates to the Fund’s absolute performance based on NAV:

•

The Fund’s duration positioning, highlighted by concentrations in longer-dated securities with maturities of 25 years and above, also aided results. (Duration is a measure of interest-rate sensitivity). Positions in lower-rated investment-grade bonds, as well as holdings of below investment-grade and unrated bonds, further helped performance at a time of elevated demand for higher-risk, higher-yielding investments. Sector concentrations in transportation, health care and state tax-backed general obligation bonds also contributed strongly.

•

The Fund’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in the market.



12	ANNUAL REPORT	APRIL 30, 2016


		BlackRock MuniHoldings Fund II, Inc.


Market Price and Net Asset Value Per Share Summary


	4/30/16		4/30/15		Change			High		Low
Market Price	$	16.23	$	15.28		6.22	%	$	16.56	$	14.10
Net Asset Value	$	16.51	$	16.21		1.85	%	$	16.55	$	15.76

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Fund’s Total Investments*


Sector Allocation	4/30/16			4/30/15
Transportation		22	%		23	%
Health		19			18
State		14			14
Utilities		12			11
County/City/Special District/School District		12			13
Education		9			9
Corporate		6			7
Tobacco		5			4
Housing		1			1


Credit Quality Allocation¹	4/30/16			4/30/15
AAA/Aaa		4	%		7	%
AA/Aa		50			47
A		23			23
BBB/Baa		11			11
BB/Ba		4			4
B		1			2
N/R²		7			6

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of April 30, 2016 and April 30, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 3% and 5%, respectively, of the Fund’s total investments.



Call/Maturity Schedule³
Calendar Year Ended December 31,
2016	7	%
2017	5
2018	5
2019	27
2020	11

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Excludes short-term securities.



ANNUAL REPORT	APRIL 30, 2016	13


Fund Summary as of April 30, 2016				BlackRock MuniHoldings Quality Fund, Inc.


Fund Overview

BlackRock MuniHoldings Quality Fund, Inc.’s (MUS) (the “Fund”) investment objective is to provide shareholders with current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund invests at least 80% of its assets in investment grade municipal obligations with remaining maturities of one year or more at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Fund Information


Symbol on NYSE		MUS
Initial Offering Date		May 1, 1998
Yield on Closing Market Price as of April 30, 2016 ($14.31)¹		5.66%
Tax Equivalent Yield²		10.00%
Current Monthly Distribution per Common Share³		$0.0675
Current Annualized Distribution per Common Share³		$0.8100
Economic Leverage as of April 30, 2016⁴		37%

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

The distribution rate is not constant and is subject to change.

⁴


Performance

Returns for the 12 months ended April 30, 2016 were as follows:


	Returns Based On
	Market Price			NAV
MUS^1,2		14.09	%		8.24	%
Lipper General & Insured Municipal Debt Funds (Leveraged)³		13.64	%		8.61	%

All returns reflect reinvestment of dividends and/or distributions.

The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV.

Average return.

The following discussion relates to the Fund’s absolute performance based on NAV:

•

On a sector basis, the largest contributions to Fund performance came from transportation and tax-backed local issues. The Fund’s duration positioning, highlighted by concentrations in longer-dated securities with maturities of 25 years and above, also aided results. (Duration is a measure of interest-rate sensitivity.) Exposure to lower-quality bonds on the investment-grade spectrum further benefited results at a time of elevated investor demand for higher-risk, higher-yielding assets. Yield curve positioning was an additional contributor, as the Fund was positioned to capitalize on the outperformance of intermediate- and longer-term bonds versus those with maturities of five years and below. Positions in zero-coupon bonds, which delivered outstanding returns compared to current-coupon issues, also contributed positively.

•

The Fund’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in the market.



14	ANNUAL REPORT	APRIL 30, 2016


		BlackRock MuniHoldings Quality Fund, Inc.


Market Price and Net Asset Value Per Share Summary


	4/30/16			4/30/15		Change			High		Low
Market Price	$	14.31		$	13.32		7.43	%	$	14.71	$	12.58
Net Asset Value	$	14.85	¹	$	14.57		1.92	%	$	14.90	$	14.21

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Fund’s Total Investments*


Sector Allocation	4/30/16			4/30/15
Transportation		40	%		34	%
County/City/Special District/School District		25			29
Utilities		14			13
Health		10			9
State		5			8
Education		3			3
Housing		1			2
Tobacco		1			1
Corporate		1			1


Credit Quality Allocation¹	4/30/16			4/30/15
AAA/Aaa		6	%		5	%
AA/Aa		56			67
A		32			25
BBB/Baa		3			3
N/R		3			—



Call/Maturity Schedule²
Calendar Year Ended December 31,
2016	1	%
2017	—
2018	26
2019	13
2020	4

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Excludes short-term securities.



ANNUAL REPORT	APRIL 30, 2016	15


Fund Summary as of April 30, 2016				BlackRock Muni Intermediate Duration Fund, Inc.


Fund Overview

BlackRock Muni Intermediate Duration Fund, Inc.’s (MUI) (the “Fund”) investment objective is to provide common shareholders with high current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund invests at least 75% of its assets in municipal bonds rated investment grade and invests at least 80% of its assets in municipal bonds with a duration of three to ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.


Fund Information


Symbol on NYSE		MUI
Initial Offering Date		August 1, 2003
Yield on Closing Market Price as of April 30, 2016 ($15.19)¹		4.78%
Tax Equivalent Yield²		8.45%
Current Monthly Distribution per Common Share³		$0.0605
Current Annualized Distribution per Common Share³		$0.7260
Economic Leverage as of April 30, 2016⁴		36%

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

The monthly distribution per Common Share, declared on June 1, 2016, was decreased to $0.0555 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

⁴


Performance

Returns for the 12 months ended April 30, 2016 were as follows:


	Returns Based On
	Market Price			NAV
MUI^1,2		12.27	%		9.04	%
Lipper Intermediate Municipal Debt Funds³		9.22	%		6.57	%

All returns reflect reinvestment of dividends and/or distributions.

The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV.

Average return.

The following discussion relates to the Fund’s absolute performance based on NAV:

•

With this as the backdrop, the Fund’s holdings in longer-duration and longer-dated bonds generally provided the best returns. (Duration is a measure of interest-rate sensitivity) The Fund’s allocations to the tax-backed (states, local and school districts), transportation and health care sectors were positive contributors to performance. Consistent with the broader market environment, the strongest returns came from the Fund’s holdings in higher-yielding, lower-rated investment-grade credits. With that said, positions in high-quality, pre-refunded bonds also contributed to performance.

•

The Fund’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in the market.



16	ANNUAL REPORT	APRIL 30, 2016


		BlackRock Muni Intermediate Duration Fund, Inc.


Market Price and Net Asset Value Per Share Summary


	4/30/16			4/30/15		Change			High		Low
Market Price	$	15.19		$	14.47		4.98	%	$	15.19	$	13.48
Net Asset Value	$	16.17	¹	$	15.86		1.95	%	$	16.21	$	15.51

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Fund’s Total Investments*


Sector Allocation	4/30/16			4/30/15
Transportation		24	%		23	%
County/City/Special District/School District		18			19
State		14			16
Education		13			9
Health		11			9
Utilities		11			10
Corporate		5			10
Housing		2			2
Tobacco		2			2


Credit Quality Allocation¹	4/30/16			4/30/15
AAA/Aaa		3	%		4	%
AA/Aa		47			50
A		40			35
BBB/Baa		5			7
BB/Ba		1			1
B		1			1
CCC/Caa		—			—	²
N/R³		3			2

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

Representing less than 1% of the Fund’s total investments.

The investment advisor evaluates the credit quality of unrated Investments based upon certain factors including but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of April 30, 2016 and April 30, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 1% and less than 1%, respectively, of the Fund’s total investments.



Call/Maturity Schedule⁴
Calendar Year Ended December 31,
2016	5	%
2017	5
2018	5
2019	8
2020	8

⁴

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Excludes short-term securities.



ANNUAL REPORT	APRIL 30, 2016	17


Fund Summary as of April 30, 2016				BlackRock MuniVest Fund II, Inc.


Fund Overview

BlackRock MuniVest Fund II, Inc.’s (MVT) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds rated investment grade and invests primarily in long-term municipal bonds with a maturity of more than ten years at the time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Fund Information


Symbol on NYSE		MVT
Initial Offering Date		March 29, 1993
Yield on Closing Market Price as of April 30, 2016 ($17.38)¹		5.73%
Tax Equivalent Yield²		10.12%
Current Monthly Distribution per Common Share³		$0.083
Current Annualized Distribution per Common Share³		$0.996
Economic Leverage as of April 30, 2016⁴		38%

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

The monthly distribution per Common Share, declared on June 1, 2016, was decreased to $0.079 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

⁴

Performance

Returns for the 12 months ended April 30, 2016 were as follows:


	Returns Based On
	Market Price			NAV
MVT^1,2		13.88	%		7.61	%
Lipper General & Insured Municipal Debt Funds (Leveraged)³		13.64	%		8.61	%

All returns reflect reinvestment of dividends and/or distributions.

The Fund’s premium to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV.

Average return.

The following discussion relates to the Fund’s absolute performance based on NAV:

•

The Fund’s duration positioning, highlighted by concentrations in longer-dated securities with maturities of 25 years and above, also aided results. (Duration is a measure of interest-rate sensitivity.) Positions in lower-rated investment-grade bonds, as well as holdings of below investment-grade and unrated bonds, further helped performance at a time of elevated demand for higher-risk, higher-yielding investments. Sector concentrations in transportation, utilities and health care also contributed strongly.

•

The Fund’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in the market.



18	ANNUAL REPORT	APRIL 30, 2016


		BlackRock MuniVest Fund II, Inc.


Market Price and Net Asset Value Per Share Summary


	4/30/16		4/30/15		Change			High		Low
Market Price	$	17.38	$	16.26		6.89	%	$	17.78	$	14.53
Net Asset Value	$	16.17	$	16.01		1.00	%	$	16.21	$	15.56

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Fund’s Total Investments*


Sector Allocation	4/30/16			4/30/15
Transportation		24	%		24	%
Health		18			18
Utilities		13			13
State		13			13
County/City/Special District/School District		11			12
Education		7			6
Corporate		7			8
Tobacco		5			4
Housing		2			2


Credit Quality Allocation¹	4/30/16			4/30/15
AAA/Aaa		6	%		8	%
AA/Aa		49			49
A		21			21
BBB/Baa		10			11
BB/Ba		4			3
B		2			2
N/R²		8			6

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of April 30, 2016 and April 30, 2015 the market value of unrated securities deemed by the investment advisor to be investment grade represents less than 3% and 1%, respectively, of the Fund’s total investments.



Call/Maturity Schedule³
Calendar Year Ended December 31,
2016	6	%
2017	8
2018	11
2019	23
2020	12

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Excludes short-term securities.



ANNUAL REPORT	APRIL 30, 2016	19

Schedule of Investments April 30, 2016

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value
Alabama — 2.1%
County of Jefferson Alabama, RB, Limited Obligation School, Series A:
5.25%, 1/01/17	$	895	$	900,370
5.25%, 1/01/19		2,000		2,012,000
5.50%, 1/01/21		1,215		1,222,290
County of Jefferson Alabama Sewer, Refunding RB, Sub-Lien, Series D, 6.00%, 10/01/42		3,745		4,393,409
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/40		2,165		2,582,109

				11,110,178
Alaska — 0.5%
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A:
4.63%, 6/01/23		1,040		1,045,824
5.00%, 6/01/32		1,500		1,418,985

				2,464,809
Arizona — 1.5%
City of Phoenix Arizona IDA, RB:
Great Hearts Academies — Veritas Project, 6.30%, 7/01/42		500		553,120
Great Hearts Academies — Veritas Project, 6.40%, 7/01/47		425		471,350
Legacy Traditional Schools Project, Series A, 6.50%, 7/01/34 (a)		570		671,072
Legacy Traditional Schools Project, Series A, 6.75%, 7/01/44 (a)		1,000		1,190,790
City of Phoenix Arizona IDA, Refunding RB (a):
Basis Schools, Inc. Projects, 5.00%, 7/01/35		305		323,160
Basis Schools, Inc. Projects, 5.00%, 7/01/45		855		889,397
Basis Schools, Inc. Projects, Series A, 5.00%, 7/01/35		260		275,683
Basis Schools, Inc. Projects, Series A, 5.00%, 7/01/46		290		301,600
Legacy Traditional School Projects, 5.00%, 7/01/35		320		336,070
Legacy Traditional School Projects, 5.00%, 7/01/45		255		264,285
Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37		1,650		2,057,220
University Medical Center Corp., RB, 6.50%, 7/01/19 (b)		500		586,505

				7,920,252
California — 7.8%
California Municipal Finance Authority, RB, Urban Discovery Academy Project (a):
5.50%, 8/01/34		315		332,936
6.00%, 8/01/44		665		706,237
6.13%, 8/01/49		580		616,592


Municipal Bonds	Par (000)		Value
California (continued)
California School Finance Authority, RB:
Alliance for College Ready Public School — 2023 Union LLC Project, Series A, 6.40%, 7/01/48	$	1,570	$	1,799,660
Value Schools, 6.65%, 7/01/33		435		503,091
Value Schools, 6.90%, 7/01/43		975		1,135,709
California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A (a)(c):
5.00%, 12/01/41		690		750,823
5.00%, 12/01/46		920		1,000,298
5.25%, 12/01/56		2,760		3,000,368
California Statewide Communities Development Authority, Refunding RB, American Baptist Homes of the West, 6.25%, 10/01/39		2,175		2,495,573
California Statewide Financing Authority, RB, Asset-Backed, Tobacco Settlement, Series B, 6.00%, 5/01/43		1,650		1,666,500
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:
6.50%, 5/01/36		900		1,091,529
6.50%, 5/01/42		2,220		2,686,555
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/40		375		468,851
County of California Tobacco Securitization Agency, RB, Asset-Backed, Los Angeles County Securitization Corp.:
5.60%, 6/01/36		1,285		1,301,448
5.70%, 6/01/46		3,600		3,646,116
County of Riverside California Transportation Commission, RB, Senior Lien, Series A, 5.75%, 6/01/48		2,885		3,362,237
Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, Asset-Backed:
Bonds, 5.13%, 6/01/47		3,850		3,753,981
Senior, 5.75%, 6/01/47		3,980		3,989,950
Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1:
4.75%, 6/01/25		1,490		1,490,521
5.00%, 6/01/37		4,580		4,579,588

				40,378,563
Colorado — 2.1%
Castle Oaks Metropolitan District No. 3, GO, 6.25%, 12/01/44		500		508,410
Colorado Health Facilities Authority, Refunding RB, Series A (a):
6.13%, 12/01/45		335		347,639
6.25%, 12/01/50		1,115		1,154,750
Copperleaf Metropolitan District No. 2, GO, Refunding, 5.75%, 12/01/45		720		760,090

Portfolio Abbreviations


AGC	Assured Guarantee Corp.	EDA	Economic Development Authority	IDB	Industrial Development Board
AGM	Assured Guaranty Municipal Corp.	EDC	Economic Development Corp.	ISD	Independent School District
AMBAC	American Municipal Bond Assurance Corp.	ERB	Education Revenue Bonds	LRB	Lease Revenue Bonds
AMT	Alternative Minimum Tax (subject to)	GARB	General Airport Revenue Bonds	M/F	Multi-Family
ARB	Airport Revenue Bonds	GO	General Obligation Bonds	MRB	Mortgage Revenue Bonds
BARB	Building Aid Revenue Bonds	HDA	Housing Development Authority	NPFGC	National Public Finance Guarantee Corp.
BHAC	Berkshire Hathaway Assurance Corp.	HFA	Housing Finance Agency	PSF-GTD	Permanent School Fund Guaranteed
CAB	Capital Appreciation Bonds	HRB	Housing Revenue Bonds	RB	Revenue Bonds
COP	Certificates of Participation	IDA	Industrial Development Authority	S/F	Single-Family

See Notes to Financial Statements.



20	ANNUAL REPORT	APRIL 30, 2016


Schedule of Investments (continued)		BlackRock MuniAssets Fund, Inc. (MUA)


Municipal Bonds	Par (000)		Value
Colorado (continued)
Foothills Metropolitan District, Special Assessment Bonds, 6.00%, 12/01/38	$	5,985	$	6,468,887
Regional Transportation District, RB, Denver Transit Partners Eagle P3 Project, 6.00%, 1/15/34		1,500		1,739,130

				10,978,906
Connecticut — 0.9%
Mohegan Tribal Finance Authority, RB, 7.00%, 2/01/45 (a)		1,430		1,433,360
Mohegan Tribe of Indians of Connecticut, RB, Series A, 6.75%, 2/01/45 (a)		1,420		1,455,557
Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, Series C, 6.25%, 2/01/30 (a)		1,835		1,869,241

				4,758,158
Delaware — 0.7%
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40		1,000		1,093,580
State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45		2,280		2,394,524

				3,488,104
District of Columbia — 0.0%
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.50%, 5/15/33		55		53,235
Florida — 9.4%
Boggy Creek Improvement District, Refunding RB, Special Assessment Bonds, 5.13%, 5/01/43		1,535		1,609,002
Capital Trust Agency, Inc., RB, Silver Creek St. Augustine Project, Series A:
1st Mortgage, 8.25%, 1/01/44 (d)		515		442,550
1st Mortgage, 8.25%, 1/01/49 (d)		1,105		949,714
5.75%, 1/01/50		655		654,987
County of Collier Florida IDA, Refunding RB, Arlington of Naples Project, Series A, 8.13%, 5/15/44 (a)		2,510		2,991,192
County of Miami-Dade Florida IDA, RB, Series A:
5.00%, 6/01/35		1,460		1,577,223
5.00%, 6/01/40		2,000		2,138,500
5.00%, 6/01/48		2,815		2,987,954
County of Palm Beach Florida Health Facilities Authority, RB, Acts Retirement Life Community, 5.50%, 11/15/33		3,500		3,937,150
Florida Development Finance Corp., RB, Renaissance Charter School, Series A:
5.75%, 6/15/29		690		715,309
6.00%, 6/15/34		835		869,218
6.13%, 6/15/44		3,220		3,322,557
Greeneway Improvement District, RB, Special Assessment Bonds, 5.13%, 5/01/43		1,940		2,033,527
Harbor Bay Community Development District Florida, Special Assessment Bonds, Series A, 7.00%, 5/01/33		410		411,456
Jacksonville Economic Development Commission, Refunding RB, Florida Proton Therapy Institute, Series A, 6.00%, 9/01/17 (a)		535		566,635
Lakewood Ranch Stewardship District, Refunding, Special Assessment Bonds, Lakewood Center & New Sector Projects, 8.00%, 5/01/40		1,485		1,834,718


Municipal Bonds	Par (000)		Value
Florida (continued)
Lakewood Ranch Stewardship District, Special Assessment Bonds, Village of Lakewood Ranch Sector Projects:
4.00%, 5/01/21	$	200	$	203,910
4.25%, 5/01/26		160		162,347
5.00%, 5/01/36		460		472,024
5.13%, 5/01/46		915		943,548
Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21 (b)		4,550		5,961,455
Midtown Miami Community Development District, Refunding, Special Assessment Bonds:
Series A, 5.00%, 5/01/37		845		899,367
Series B, 5.00%, 5/01/37		495		526,848
Palm Beach County Health Facilities Authority, Refunding RB, Series A, 7.25%, 6/01/34		500		609,170
Santa Rosa Bay Bridge Authority, RB, 6.25%, 7/01/28 (d)(e)		4,358		1,743,158
Tampa Palms Open Space and Transportation Community Development District, RB, Capital Improvement, Richmond Place Project, 7.50%, 5/01/18		575		575,874
Tolomato Community Development District, Refunding, Special Assessment Bonds:
Convertible CAB, Series A2, 0.00%, 5/01/39 (f)		250		200,448
Convertible CAB, Series A3, 0.00%, 5/01/40 (f)		585		350,602
Convertible CAB, Series A4, 0.00%, 5/01/40 (f)		305		135,405
Series 2, 0.00%, 5/01/40 (f)		805		421,152
Series A1, 6.65%, 5/01/40		910		920,420
Tolomato Community Development District:
Series 1, 0.00%, 5/01/40 (f)		1,305		806,973
Series 1, 6.65%, 5/01/40 (d)(e)		50		51,070
Series 3, 6.61%, 5/01/40 (d)(e)		875		9
Series 3, 6.65%, 5/01/40 (d)(e)		710		7
Village Community Development District No. 9, Special Assessment Bonds:
6.75%, 5/01/31		1,600		1,942,432
7.00%, 5/01/41		2,615		3,188,417
5.50%, 5/01/42		1,220		1,402,378

				48,558,706
Georgia — 1.8%
City of Atlanta Georgia, Tax Allocation Bonds, Princeton Lakes Project, 5.50%, 1/01/31		580		581,375
County of Clayton Georgia, Tax Allocation Bonds, Ellenwood Project, 7.50%, 7/01/33		2,615		2,719,234
County of Clayton Georgia Development Authority, Refunding RB, Delta Air Lines, Inc. Project, Series A, 8.75%, 6/01/29		3,365		4,149,011
County of Gainesville & Hall Georgia Development Authority, Refunding RB, Acts Retirement Life Community, Series A-2:
6.38%, 11/15/29		700		805,315
6.63%, 11/15/39		880		1,011,903
Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project, Series A, 5.00%, 7/01/60		265		300,245

				9,567,083
Guam — 0.4%
Territory of Guam, GO, Series A:
6.00%, 11/15/19		505		559,247
7.00%, 11/15/19 (b)		1,115		1,353,164

				1,912,411

See Notes to Financial Statements.



ANNUAL REPORT	APRIL 30, 2016	21


Schedule of Investments (continued)		BlackRock MuniAssets Fund, Inc. (MUA)


Municipal Bonds	Par (000)		Value
Illinois — 4.7%
City of Chicago Illinois, GO, Series A, 5.50%, 1/01/39	$	3,600	$	3,581,244
Illinois Finance Authority, Refunding RB:
CAB, Clare Water Tower, Series B, 0.00%, 5/15/50 (d)(e)(g)		1,214		12
Clare Water Tower, Series A-7, 6.13%, 5/15/41 (d)(e)		3,129		31
Friendship Village of Schaumburg, 7.25%, 2/15/45		4,000		4,285,760
Lutheran Home & Services Obligated Group, 5.63%, 5/15/42		2,395		2,546,244
Primary Health Care Centers Program, 6.60%, 7/01/24		1,085		1,087,300
Rogers Park Montessori School Project, Series 2014, 6.00%, 2/01/34		365		391,101
Rogers Park Montessori School Project, Series 2014, 6.13%, 2/01/45		860		915,806
Roosevelt University Project, 6.50%, 4/01/44		4,170		4,619,276
Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.50%, 6/15/53		2,370		2,694,145
Railsplitter Tobacco Settlement Authority, RB:
5.50%, 6/01/23		180		212,231
6.00%, 6/01/28		710		848,457
Village of Lincolnshire Illinois, Special Tax Bonds, Sedgebrook Project, 6.25%, 3/01/34		1,730		1,739,844
Village of Wheeling Illinois, Tax Allocation Bonds, North Milwaukee/Lake-Cook TIF Project, 6.00%, 1/01/25		1,260		1,260,819

				24,182,270
Indiana — 1.6%
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:
6.75%, 1/01/34		825		1,011,467
7.00%, 1/01/44		2,000		2,467,300
City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village Project, 6.25%, 1/01/29 (a)		2,510		2,512,083
Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges East End Crossing Project, Series A, AMT:
5.00%, 7/01/44		470		510,317
5.00%, 7/01/48		1,555		1,681,250

				8,182,417
Iowa — 2.7%
Iowa Finance Authority, Refunding RB:
Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.50%, 12/01/22		2,090		2,175,167
Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.25%, 12/01/25		2,190		2,357,185
Sunrise Retirement Community Project, 5.50%, 9/01/37		1,355		1,385,420
Sunrise Retirement Community Project, 5.75%, 9/01/43		2,115		2,182,659
Iowa Tobacco Settlement Authority, Refunding RB:
Asset-Backed, CAB, Series B, 5.60%, 6/01/34		1,200		1,202,568
Series C, 5.38%, 6/01/38		4,900		4,877,803

				14,180,802
Kentucky — 0.9%
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing, First Tier, Series A, 5.75%, 7/01/49		4,000		4,599,120


Municipal Bonds	Par (000)		Value
Louisiana — 2.9%
Juban Crossing Economic Development District, Refunding RB, General Infrastructure Project, Series C, 7.00%, 9/15/44 (a)	$	1,055	$	1,108,182
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, 6.75%, 11/01/32		5,000		5,417,500
Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.75%, 5/01/41		1,855		2,126,869
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.25%, 5/15/35		5,570		6,274,494

				14,927,045
Maine — 0.7%
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 7/01/41		2,955		3,359,155
Maryland — 2.0%
County of Frederick Maryland, RB, Jefferson Technology Park Project, Series B, 7.13%, 7/01/43		2,840		3,227,007
Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35		3,615		3,956,437
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25		3,085		2,974,279

				10,157,723
Massachusetts — 1.7%
Massachusetts Development Finance Agency, RB:
Boston Medical Center, Series D, 5.00%, 7/01/44		1,905		2,148,173
Boston Medical Center, Series D, 4.00%, 7/01/45		1,295		1,345,376
Foxborough Regional Charter School, Series A, 7.00%, 7/01/42		1,025		1,170,345
North Hill Communities Issue, Series A, 6.50%, 11/15/43 (a)		2,020		2,200,083
Massachusetts Development Finance Agency, Refunding RB, Tufts Medical Center, Series I, 6.75%, 1/01/36		1,490		1,758,170

				8,622,147
Michigan — 0.9%
City of Detroit Michigan, GO, Financial Recovery (f)(h):
Series B-1, 4.00%, 4/01/44		315		121,213
Series B-2, 4.00%, 4/01/44		100		44,446
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39		2,785		3,099,037
Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 7/01/44		415		443,797
Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44		920		1,005,578

				4,714,071
Minnesota — 0.3%
City of Rochester Minnesota, RB, Health Care And Facility Homestead Rochester Incorporate, 5.00%, 12/01/49		1,335		1,386,491
Missouri — 1.0%
Kirkwood IDA Missouri, RB, Aberdeen Heights, Series A, 8.25%, 5/15/39		2,315		2,620,788

See Notes to Financial Statements.



22	ANNUAL REPORT	APRIL 30, 2016


Schedule of Investments (continued)		BlackRock MuniAssets Fund, Inc. (MUA)


Municipal Bonds	Par (000)		Value
Missouri (continued)
Lees Summit Industrial Development Authority, RB, John Knox Obligated Group, 5.25%, 8/15/39	$	2,235	$	2,334,078

				4,954,866
New Jersey — 4.6%
Casino Reinvestment Development Authority, Refunding RB:
5.25%, 11/01/39		1,065		1,103,415
5.25%, 11/01/44		770		793,423
County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45 (a)		1,150		1,173,242
New Jersey EDA, RB:
Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 4/01/31		2,250		2,717,865
Private Activity Bond, The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43		2,155		2,426,250
Team Academy Charter School Project, 6.00%, 10/01/43		1,530		1,764,029
New Jersey EDA, Refunding RB, Greater Brunswick Charter School, Inc. Project, Series A, 6.00%, 8/01/49 (a)		500		522,950
New Jersey Health Care Facilities Financing Authority, Refunding RB:
St. Barnabas Health Care System, Series A, 5.63%, 7/01/37		2,650		3,080,069
St. Joseph’s Healthcare System, 6.63%, 7/01/38		4,090		4,488,611
New Jersey Transportation Trust Fund Authority, RB, Transportation Program, Series AA, 5.25%, 6/15/41		1,140		1,242,554
Tobacco Settlement Financing Corp., Refunding RB, Series 1A:
5.00%, 6/01/29		3,735		3,733,767
5.00%, 6/01/41		1,070		1,011,086

				24,057,261
New Mexico — 0.6%
New Mexico Hospital Equipment Loan Council, Refunding RB, Gerald Champion Regional Medical Center Project, 5.50%, 7/01/42		2,970		3,232,013
New York — 7.6%
City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport Project, AMT, 8.00%, 8/01/28 (h)		1,765		1,815,232
City of New York New York Industrial Development Agency, RB, Special Needs Facilities Pooled Program, Series C-1:
6.50%, 7/01/24		610		611,348
6.63%, 7/01/29		1,100		1,102,541
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (a)		5,400		5,688,954
County of Dutchess New York IDA, Refunding RB, Bard College Civic Facility, Series A-1, 5.00%, 8/01/46		3,315		3,165,626
County of Nassau Tobacco New York Settlement Corp., Refunding RB, Asset-Backed, Series A-3, 5.13%, 6/01/46		1,170		1,110,365
County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44		1,354		1,537,894
Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45		2,890		2,876,706
Metropolitan Transportation Authority, RB, Series C:
6.50%, 11/15/18 (b)		1,490		1,705,931
6.50%, 11/15/28		510		583,766


Municipal Bonds	Par (000)		Value
New York (continued)
New York Liberty Development Corp., Refunding RB:
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49	$	1,270	$	1,429,156
3 World Trade Center Project, Class 1, 5.00%, 11/15/44 (a)		4,705		5,095,703
3 World Trade Center Project, Class 2, 5.15%, 11/15/34 (a)		455		499,449
3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (a)		1,080		1,189,847
3 World Trade Center Project, Class 3, 7.25%, 11/15/44 (a)		1,565		1,924,919
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (a)		1,335		1,354,945
Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8, 6.00%, 12/01/36		1,340		1,574,514
TSASC, Inc., Refunding RB, Series 1, 5.00%, 6/01/34		1,135		1,134,909
Westchester Tobacco Asset Securitization, Refunding RB, 5.13%, 6/01/45		4,800		4,800,048

				39,201,853
North Carolina — 1.5%
North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Series A:
Deerfield Project, 6.13%, 11/01/38		4,565		4,985,436
Retirement Facilities Whitestone Project, 7.75%, 3/01/31		1,000		1,147,540
Retirement Facilities Whitestone Project, 7.75%, 3/01/41		1,420		1,626,511

				7,759,487
Ohio — 2.6%
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Series A-2:
Senior Turbo Term, 5.88%, 6/01/47		4,340		4,199,080
5.75%, 6/01/34		6,745		6,432,032
6.00%, 6/01/42		3,040		2,994,491

				13,625,603
Oklahoma — 0.3%
Oklahoma Development Finance Authority, Refunding RB, Inverness Village Community, 6.00%, 1/01/32		1,305		1,389,186
Oregon — 0.8%
Hospital Facilities Authority of Multnomah County Oregon, Refunding RB, Mirabella at South Waterfront, 5.50%, 10/01/49		1,765		1,939,029
Polk County Hospital Facility Authority, RB, Dallas Retirement Village Project, Series A:
5.13%, 7/01/35		620		638,476
5.38%, 7/01/45		1,435		1,487,995

				4,065,500
Pennsylvania — 4.2%
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A, 5.00%, 5/01/42		4,140		4,422,845
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/36		2,000		2,204,800

See Notes to Financial Statements.



ANNUAL REPORT	APRIL 30, 2016	23


Schedule of Investments (continued)		BlackRock MuniAssets Fund, Inc. (MUA)


Municipal Bonds	Par (000)		Value
Pennsylvania (continued)
County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran:
6.38%, 1/01/19 (b)	$	5,550	$	6,345,648
6.38%, 1/01/39		615		697,742
County of Lancaster Pennsylvania Hospital Authority, Refunding RB, Brethren Village Project, Series A, 6.25%, 7/01/26		1,160		1,194,835
County of Lehigh Pennsylvania General Purpose Authority, Refunding RB, Bible Fellowship Church Homes, 5.13%, 7/01/32		1,800		1,891,350
County of Northampton Pennsylvania IDA, Route 33 Project, Tax Allocation Bond, 7.00%, 7/01/32		2,110		2,320,325
Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44		2,710		2,845,066

				21,922,611
Puerto Rico — 0.3%
Children’s Trust Fund, Refunding RB, Series A, 0.00%, 5/15/50 (g)		3,450		308,913
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Series A, 6.00%, 7/01/44		915		606,288
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A:
6.13%, 7/01/24		365		248,886
6.00%, 7/01/38		730		491,152

				1,655,239
Rhode Island — 2.1%
Central Falls Detention Facility Corp., Refunding RB, 7.25%, 7/15/35 (d)(e)		4,190		1,040,586
Tobacco Settlement Financing Corp., Refunding RB:
Series A, 5.00%, 6/01/40		980		1,075,168
Series B, 4.50%, 6/01/45		5,055		5,241,934
Series B, 5.00%, 6/01/50		3,330		3,532,031

				10,889,719
Texas — 11.1%
Brazos River Authority, Refunding RB, Texas Utility Co., Series A, AMT, 7.70%, 4/01/33 (d)(e)		5,080		114,300
Central Texas Regional Mobility Authority, Refunding RB:
CAB, 0.00%, 1/01/28 (g)		1,000		659,370
CAB, 0.00%, 1/01/29 (g)		2,000		1,263,060
CAB, 0.00%, 1/01/30 (g)		1,170		708,751
CAB, 0.00%, 1/01/33 (g)		3,690		1,966,069
CAB, 0.00%, 1/01/34 (g)		4,000		2,024,000
Senior Lien, 6.25%, 1/01/46		2,210		2,638,873
City of Houston Texas Airport System, Refunding ARB, AMT:
Special Facilities, Continental Airlines, Inc., Series A, 6.63%, 7/15/38		2,890		3,352,429
United Airlines, Inc. Terminal E Project, 5.00%, 7/01/29		910		1,013,085
Clifton Higher Education Finance Corp., ERB, Idea Public Schools:
5.50%, 8/15/31		955		1,062,132
5.75%, 8/15/41		720		807,984
County of Bexar Texas Health Facilities Development Corp., RB, Army Retirement Residence Project, 6.20%, 7/01/45		5,040		5,724,986
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/48		475		561,901


Municipal Bonds	Par (000)		Value
Texas (continued)
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co., Project, Series A, 6.30%, 11/01/29	$	2,090	$	2,376,664
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Series A:
CC Young Memorial Home, 8.00%, 2/15/38		1,745		1,960,857
Senior Living Center Project, 8.25%, 11/15/44		4,200		4,296,096
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Trinity Terrace Project, 5.00%, 10/01/49		865		944,407
County of Travis Texas Health Facilities Development Corp., Refunding RB, 7.13%, 1/01/46		3,080		3,478,552
Mesquite Health Facility Development Corp., Refunding RB, 5.13%, 2/15/42		810		880,065
Mission Economic Development Corp., RB, AMT, Senior Lien, Series B, 5.75%, 10/01/31 (a)		1,325		1,377,960
New Hope Cultural Education Facilities Corp., RB, Stephenville LLC Tarleton State University Project:
5.88%, 4/01/36		1,210		1,386,067
6.00%, 4/01/45		1,845		2,122,654
Newark Higher Education Finance Corp., RB, Series A (a):
5.50%, 8/15/35		290		299,779
5.75%, 8/15/45		580		595,909
North Texas Education Finance Corp., ERB, Uplift Education, Series A, 5.25%, 12/01/47		1,600		1,707,072
Red River Health Facilities Development Corp., First MRB Project:
Eden Home, Inc., 7.25%, 12/15/42 (d)		2,895		2,546,413
Wichita Falls Retirement Foundation, 5.13%, 1/01/41		900		933,183
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:
Blueridge Transportation Group, LLC SH 288 Toll Lanes Project, AMT, 5.00%, 12/31/55 (c)		2,535		2,752,934
LBJ Infrastructure Group LLC, 7.00%, 6/30/40		3,775		4,524,640
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39		3,000		3,535,830

				57,616,022
Utah — 0.6%
State of Utah Charter School Finance Authority, Refunding RB, 6.75%, 10/15/43		2,950		3,115,967
Vermont — 0.2%
Vermont EDA, Refunding, MRB, Wake Robin Corp. Project, 5.40%, 5/01/33		770		812,496
Virginia — 3.1%
County of Fairfax Virginia EDA, Refunding RB, Goodwin House, Inc., 5.13%, 10/01/42		2,500		2,588,950
Lower Magnolia Green Community Development Authority, Special Assessment Bonds (a):
5.00%, 3/01/35		510		510,689
5.00%, 3/01/45		520		517,603
Mosaic District Community Development Authority, Special Assessment, Series A:
6.63%, 3/01/26		1,485		1,714,135
6.88%, 3/01/36		1,300		1,496,534
Tobacco Settlement Financing Corp., Refunding RB, Senior Series B-1, 5.00%, 6/01/47		2,180		1,904,666

See Notes to Financial Statements.



24	ANNUAL REPORT	APRIL 30, 2016


Schedule of Investments (continued)		BlackRock MuniAssets Fund, Inc. (MUA)


Municipal Bonds	Par (000)		Value
Virginia (continued)
Virginia College Building Authority, RB, Marymount University Project, Series B, 5.00%, 7/01/45 (a)	$	535	$	552,858
Virginia College Building Authority, Refunding RB, Marymount University Project, Series A (a):
5.00%, 7/01/35		130		137,032
5.00%, 7/01/45		375		387,518
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 1/01/37		5,410		6,403,979

				16,213,964
Washington — 0.8%
County of King Washington Public Hospital District No. 4, GO, Refunding, Snoqualmie Valley Hospital, 7.00%, 12/01/40		1,455		1,601,984
Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A, 5.50%, 9/01/42		1,495		1,582,891
Washington State Housing Finance Commission, Refunding RB (a):
5.75%, 1/01/35		315		322,308
6.00%, 1/01/45		850		869,508

				4,376,691
Wisconsin — 1.1%
Public Finance Authority, RB, Series A:
4.75%, 12/01/35		775		807,713
5.00%, 12/01/45		1,875		1,969,650
5.15%, 12/01/50		1,170		1,229,214
Wisconsin Health & Educational Facilities Authority, Refunding RB, St. Johns Communities, Inc., Series A (b):
7.25%, 9/15/19		425		506,260
7.63%, 9/15/19		855		1,039,765

				5,552,602
Total Municipal Bonds — 88.1%				455,942,726



Municipal Bonds Transferred to Tender Option Bond Trusts (i)
Colorado — 2.4%
Colorado Health Facilities Authority, Refunding RB, Sisters of Leavenworth Health System, Series A, 5.00%, 1/01/40		11,468		12,710,253
Florida — 3.2%
County of Miami-Dade Florida, Refunding RB, Miami International Airport, Series A, AMT (AGC), 5.25%, 10/01/33		15,000		16,361,100


Municipal Bonds Transferred to Tender Option Bond Trusts (i)	Par (000)		Value
Illinois — 2.8%
Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 8/15/41	$	7,180	$	8,544,200
State of Illinois Toll Highway Authority, RB, Senior Priority, Series A, 5.00%, 1/01/40		5,056		5,905,351

				14,449,551
New York — 13.7%
City of New York New York Housing Development Corp., RB, M/F Housing, Series D-1, Class B, 4.25%, 11/01/45		8,996		9,392,640
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		14,181		16,694,649
Series HH, 5.00%, 6/15/31 (j)		8,610		10,139,739
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (j)		4,520		5,313,811
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43		18,104		21,507,569
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (j)		6,600		7,877,856

				70,926,264
Washington — 1.8%
City of Bellingham Washington, RB, Water & Sewer, 5.00%, 8/01/40		7,966		9,185,058
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 23.9%				123,632,226
Total Long-Term Investments (Cost — $537,574,582) — 112.0%				579,574,952



Short-Term Securities	Shares
BlackRock Liquidity Funds, MuniCash, 0.19% (k)(l)		4,296,151		4,296,151
Total Short-Term Securities (Cost — $4,296,151) — 0.8%				4,296,151
Total Investments (Cost — $541,870,733) — 112.8%				583,871,103
Liabilities in Excess of Other Assets — (0.0)%				(48,965	)
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (12.8)%				(66,124,715	)

Net Assets Applicable to Common Shares — 100.0%			$	517,697,423


Notes to Schedule of Investments

(a)

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(b)

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.

(c)

When-issued security.

(d)

Issuer filed for bankruptcy and/or is in default of interest payments.

(e)

Non-income producing security.

(f)

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.

(g)

Zero-coupon bond.

(h)

Variable rate security. Rate as of period end.

See Notes to Financial Statements.



ANNUAL REPORT	APRIL 30, 2016	25


Schedule of Investments (continued)		BlackRock MuniAssets Fund, Inc. (MUA)

(i)

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. See Note 4 of the Notes to Financial Statements for details.

(j)

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 agreement, which expire between February 15, 2019 to November 15, 2019, is $11,849,809. See Note 4 of the Notes to Financial Statements for details.

(k)

During the year ended April 30, 2016, investments in issuers considered to be affiliates of the Fund for purposes of Section 2(a)(3) of the 1940 Act were as follows:


Affiliate	Shares Held at April 30, 2015		Net Activity			Shares Held at April 30, 2016		Income
BlackRock Liquidity Funds, MuniCash		—		4,296,151			4,296,151	$	435
FFI Institutional Tax-Exempt Fund		961,095		(961,095	)		—		414
Total							4,296,151	$	849

(l)

Current yield as of period end.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts


Contracts Short			Issue	Expiration	Notional Value	Unrealized Appreciation
	(17	)	5-Year U.S. Treasury Note	June 2016	$ 2,055,539	$	7,151
	(80	)	10-Year U.S. Treasury Note	June 2016	$10,405,000		70,772
	(27	)	Long U.S. Treasury Bond	June 2016	$ 4,409,438		68,328
	(7	)	Ultra U.S. Treasury Bond	June 2016	$ 1,199,406		20,959
	Total					$	167,210

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:


Assets — Derivative Financial Instruments			Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Futures contracts	Net unrealized appreciation	¹		—		—		—		—	$	167,210		—	$	167,210
¹Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

For the year ended April 30, 2016, the effect of derivative financial instruments in the Statements of Operations was as follows:


Net Realized Gain (Loss) from:	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Futures contracts		—		—		—		—	$	(891,260	)		—	$	(891,260	)

Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		—		—	$	521,509			—	$	521,509

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	15,992,732

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

See Notes to Financial Statements.



26	ANNUAL REPORT	APRIL 30, 2016


Schedule of Investments (concluded)		BlackRock MuniAssets Fund, Inc. (MUA)

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

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		—	$	579,574,952		—	$	579,574,952
Short-Term Securities	$	4,296,151		—		—		4,296,151

Total	$	4,296,151	$	579,574,952		—	$	583,871,103


Derivative Financial Instruments²
Assets:
Interest rate contracts	$	167,210		—		—	$	167,210
¹ See above Schedule of Investments for values in each state or political subdivision.
² Derivative financial instruments are futures contracts. Futures contracts 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 statement 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 futures contracts	$	243,950		—		—	$	243,950
Liabilities:
Bank overdraft		—	$	(68,716	)	—		(68,716	)
TOB Trust Certificates		—		(66,086,523	)	—		(66,086,523	)

Total	$	243,950	$	(66,155,239	)	—	$	(65,911,289	)

During the year ended April 30, 2016, there were no transfers between levels.

See Notes to Financial Statements.



ANNUAL REPORT	APRIL 30, 2016	27

Schedule of Investments April 30, 2016

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	$	2,766,500
4.75%, 1/01/25		2,200		2,213,200

				4,979,700
Alaska — 0.7%
Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A, 5.50%, 10/01/41		990		1,139,708
Borough of Matanuska-Susitna Alaska, RB, Goose Creek Correctional Center (AGC):
6.00%, 9/01/19 (a)		765		893,673
6.00%, 9/01/28		435		505,613

				2,538,994
Arizona — 0.9%
State of Arizona, COP, Department of Administration, Series A (AGM):
5.00%, 10/01/27		2,700		2,994,975
5.00%, 10/01/29		400		443,700

				3,438,675
California — 18.9%
Alameda Corridor Transportation Authority, Refunding RB, CAB, Subordinate Lien, Series A (AMBAC) (b):
5.40%, 10/01/24		10,185		10,799,054
5.45%, 10/01/25		3,700		3,920,224
Anaheim Public Financing Authority California, RB, Senior, Public Improvements Project, Series A (AGM), 6.00%, 9/01/24		5,000		6,290,300
Cabrillo Community College District, GO, CAB, Election of 2004, Series B (NPFGC), 0.00%, 8/01/37 (c)		2,400		892,344
California Health Facilities Financing Authority, RB:
St. Joseph Health System, Series A, 5.75%, 7/01/39		550		628,210
Sutter Health, Series B, 5.88%, 8/15/31		1,200		1,449,792
California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/37		1,090		1,273,327
California State University, Refunding RB, Series A:
5.00%, 5/01/17 (a)		850		887,442
5.00%, 11/01/37		1,150		1,193,861
California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42		1,480		1,708,897
City of Redding California, COP, Refunding, Series A (AGM), 5.00%, 6/01/30		1,420		1,528,857
City of San Jose California, Refunding ARB, Series A-1, AMT, 5.75%, 3/01/34		850		1,001,028
County of Orange California Sanitation District, COP, Series B (AGM), 5.00%, 2/01/17 (a)		1,500		1,550,475
County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36		2,175		2,642,647
Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/17 (a)		1,300		1,371,656
Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 6.25%, 8/01/43		2,500		1,959,200
Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement, Election of 2008, Series B, 0.00%, 8/01/36 (c)		3,750		1,809,525


Municipal Bonds	Par (000)		Value
California (continued)
Rio Hondo Community College District California, GO, CAB, Election of 2004, Series C, 0.00%, 8/01/38 (c)	$	5,000	$	2,345,200
San Diego California Unified School District, GO, CAB, Election of 2008 (c):
Series C, 0.00%, 7/01/38		1,600		728,512
Series G, 0.00%, 7/01/34		650		299,201
Series G, 0.00%, 7/01/35		690		298,667
Series G, 0.00%, 7/01/36		1,035		420,976
Series G, 0.00%, 7/01/37		690		264,015
San Diego California Unified School District, GO, Refunding, Series R-1 (c):
0.00%, 7/01/30		5,000		3,244,500
0.00%, 7/01/31		1,280		793,088
San Diego Community College District California, GO, CAB, Election of 2006 (c):
0.00%, 8/01/31		2,145		1,140,754
0.00%, 8/01/32		2,680		1,336,596
San Marcos Unified School District, GO, Election of 2010, Series A:
5.00%, 8/01/34		700		813,169
5.00%, 8/01/38		600		695,364
San Mateo County Community College District, GO, CAB, Election of 2001, Series C (NPFGC), 0.00%, 9/01/30 (c)		12,740		8,726,136
Walnut Valley Unified School District, GO, CAB, Election of 2007, Series B, 0.00%, 8/01/36 (c)		5,500		2,659,800
West Basin Municipal Water District California, COP, Refunding, Series B (AGC), 5.00%, 8/01/30		5,035		5,449,934

				70,122,751
Colorado — 0.6%
Regional Transportation District, COP, Refunding, Series A, 5.38%, 6/01/31		2,000		2,297,160
District of Columbia — 1.5%
District of Columbia Ballpark Revenue, RB, Series B-1, 5.00%, 2/01/31		5,360		5,401,165
District of Columbia Ballpark Revenue, Refunding RB, Series B-1, 5.00%, 2/01/31		120		120,000

				5,521,165
Florida — 16.0%
City of Tallahassee Florida Energy System Revenue, RB (NPFGC):
5.00%, 10/01/32		4,000		4,228,720
5.00%, 10/01/37		7,500		7,914,600
County of Brevard Florida Health Facilities Authority, Refunding RB, Health First, Inc. Project, 5.00%, 4/01/39		1,600		1,820,480
County of Broward Florida Water & Sewer Utility, Refunding RB, Series A, 5.25%, 10/01/18 (a)		850		940,772
County of Duval Florida School Board, COP, Master Lease Program (AGM), 5.00%, 7/01/17 (a)		2,625		2,759,059
County of Highlands Florida Health Facilities Authority, RB, Adventist Health System/Sunbelt, Series B, 6.00%, 11/15/37		1,450		1,673,808
County of Hillsborough Florida Aviation Authority, RB, Series A, AMT (AGC), 5.38%, 10/01/33		4,050