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: 04/30/2018

Date of reporting period: 04/30/2018

Item 1 – Report to Stockholders

APRIL 30, 2018


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

The Markets in Review

Dear Shareholder,

In the 12 months ended April 30, 2018, the strongest corporate profits in seven years drove the equity market higher, while rising interest rates constrained bond returns. While the market’s appetite for risk remained healthy, risk taking varied by asset class, as bond investors cautiously shifted to higher-quality securities, and stock investors continued to embrace risk by investing abroad.

The largest global economies experienced sustained, synchronized growth for the first time since the financial crisis, leading to strong equity performance worldwide. Emerging markets stocks posted the highest return, as accelerating growth in China, the second-largest economy in the world, improved the outlook for corporate profits in most developing nations.

Short-term U.S. Treasury interest rates rose the fastest, while longer-term rates slightly increased, leading to a substantial flattening of the yield curve. The annual return for the three-month Treasury bill surpassed 1.0%, but remained well below the annual headline inflation rate of 2.5%. In contrast, the ten-year U.S. Treasury — a bellwether of the bond market — posted a negative return, as rising inflation expectations drove yields higher. In credit markets, the investment-grade and high-yield bond markets posted modest returns in a relatively benign credit environment.

Even though it faced rising pressure to boost interest rates in 2017, the U.S. Federal Reserve (the “Fed”) increased short-term interest rates just three times during the reporting period. The Fed also announced plans to reduce its $4.4 trillion balance sheet by $420 billion in 2018, which began the process of gradually reversing its unprecedented stimulus measures after the financial crisis. The economy continued to gain momentum despite the Fed’s modest reduction of economic stimulus, as unemployment dipped below 4.0%, wages increased, and job openings reached a record high. Strong economic performance may justify a more rapid pace of rate hikes in 2018, as the headline inflation rate and investors’ expectations for inflation surpassed the Fed’s target of 2.0%.

By contrast, the European Central Bank (“ECB”) and the Bank of Japan (“BoJ”) continued to expand their balance sheets despite nascent signs of sustained economic growth. Rising global growth, as well as limited bond supply, pressured other central banks to follow in the Fed’s footsteps. In October 2017, the ECB pledged to cut its bond purchases in half for 2018, while the BoJ reiterated its commitment to economic stimulus, even though the size of its balance sheet almost matched the total output of the Japanese economy.

The Fed’s measured pace of stimulus reduction could lead to moderately higher inflation, steadily rising interest rates, and improving real growth in 2018. We continue to believe the primary risks to economic expansion are trade protectionism, rapidly rising interest rates, and geopolitical tension. In particular, we are closely monitoring trade protectionism and the rise of populism in Western nations.

In December 2017, Congress passed a sweeping tax reform bill. The U.S. tax overhaul is likely to accentuate the existing reflationary themes, including corporate spending on stock buybacks, mergers & acquisitions and capital investment, which could extend the economic cycle if inflation and interest rates rise at a relatively modest pace.

In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. 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, 2018
	6-month	12-month
U.S. large cap equities (S&P 500^® Index)	3.82%	13.27%
U.S. small cap equities (Russell 2000^® Index)	3.27	11.54
International equities (MSCI Europe, Australasia, Far East Index)	3.41	14.51
Emerging market equities (MSCI Emerging Markets Index)	4.80	21.71
3-month Treasury bills (ICE BofAML 3-Month U.S. Treasury Bill Index)	0.68	1.17
U.S. Treasury securities (ICE BofAML 10-Year U.S. Treasury Index)	(3.79)	(3.64)
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	(1.87)	(0.32)
Tax-exempt municipal bonds (S&P Municipal Bond Index)	(0.76)	1.44
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	(0.17)	3.27
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.


2		THIS PAGE IS NOT PART OF YOUR FUND REPORT

Table of Contents


	Page
The Markets in Review		2
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		69
Statements of Operations		71
Statements of Changes in Net Assets		73
Statements of Cash Flows		80
Financial Highlights		82
Notes to Financial Statements		89
Report of Independent Registered Public Accounting Firm		100
Automatic Dividend Reinvestment Plan		101
Director and Officer Information		102
Additional Information		105
Glossary of Terms Used in this Report		107


			3

Municipal Market Overview For the Reporting Period Ended April 30, 2018

Municipal Market Conditions

Municipal bonds experienced positive performance during the period despite rising interest rates resulting from continued Fed monetary policy normalization, firmer economic data, and the anticipated impacts of fiscal stimulus. Ongoing reassurance from the Fed that rates would be increased gradually and would likely remain low overall resulted in continued demand for fixed income investments. More specifically, investors favored the tax-exempt income, diversification, quality, and value of municipal bonds amid fiscal policy uncertainty, which saw tax reform ultimately lower the top individual tax rate just 2.6% while eliminating deductions and increasing demand for tax shelter. During the 12 months ended April 30, 2018, municipal bond funds experienced net inflows of approximately $26 billion (based on data from the Investment Company Institute).

For the same 12-month period, total new issuance was moderate from a historical perspective at $385 billion (well below the robust $424 billion issued in the prior 12-month period), but displayed significant month to month volatility. Notably, issuance in December posted the highest monthly total on record at $56 billion, as issuers rushed deals to market ahead of the expected elimination of the tax-exemption for advanced refunding bonds and possibly private activity bonds (PABs). Ultimately, the final version of the Tax Cuts and Jobs Act left PABs unchanged, though the elimination of advanced refundings has suppressed supply in 2018, providing a powerful technical tailwind.

S&P Municipal Bond Index

Total Returns as of April 30, 2018

6 months: (0.76)%

12 months: 1.44%

A Closer Look at Yields

LOGO

From April 30, 2017 to April 30, 2018, yields on AAA-rated 30-year municipal bonds increased by 7 basis points (“bps”) from 3.02% to 3.09%, while 10-year rates increased by 35 bps from 2.14% to 2.49% and 5-year rates increased by 78 bps from 1.41% to 2.19% (as measured by Thomson Municipal Market Data). The municipal yield curve bear flattened significantly over the 12-month period with the spread between 2- and 30-year maturities flattening by 82 bps, led by 54 bps of flattening between 2- and 10-year maturities.

During the same time period, on a relative basis, tax-exempt municipal bonds strongly outperformed U.S. Treasuries with the greatest outperformance experienced in the front and intermediate portions of the yield curve. The relative positive performance of municipal bonds was driven largely by a supply/demand imbalance within the municipal market as investors sought income and incremental yield in an environment where opportunities became increasingly scarce. 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, 2018, 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		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

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, there is no guarantee that these objectives can 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 such 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 the Funds’ intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Fund’s NAV, market price 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 Fund were not leveraged. In addition, each Fund 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 Fund 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. Each Fund incurs 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 adviser 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”) and 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 33 1/3% 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), then the TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements imposed by 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 assets 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 instrument 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 adviser’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.


THE BENEFITS AND RISKS OF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS			5


Fund Summary as of April 30, 2018		BlackRock MuniAssets Fund, Inc.

Investment Objective

BlackRock MuniAssets Fund, Inc.’s (MUA) (the “Fund”) investment objective is to provide high current income exempt from U.S. 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 U.S. 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 U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests at least 65% of its assets in municipal bonds that are rated in the medium to lower rating 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 securities that are unrated but are deemed by the investment adviser to be of comparable quality 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 New York Stock Exchange (“NYSE”)		MUA
Initial Offering Date		June 25, 1993
Yield on Closing Market Price as of April 30, 2018 ($13.21)^(a)		4.95%
Tax Equivalent Yield^(b)		8.36%
Current Monthly Distribution per Common Share^(c)		$0.0545
Current Annualized Distribution per Common Share^(c)		$0.6540
Economic Leverage as of April 30, 2018^(d)		12%

^(a)

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.

^(b)

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, 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.

^(c)

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

^(d)

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 its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

Performance

Returns for the 12 months ended April 30, 2018 were as follows:


	Returns Based On
	Market Price			NAV
MUA^(a)(b)		(6.48	)%		4.47	%
Lipper High Yield Municipal Debt Funds^(c)		(0.77	)		4.04

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

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

^(c)

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

•

Municipal bonds generated positive returns, with income offsetting a modest downturn in prices. The reporting period began on a strong note, with a favorable balance of supply and demand driving prices higher in the summer of 2017. By autumn, however, accelerating economic growth and emerging inflation pressures sparked concerns that the Fed would need to tighten monetary policy more aggressively than expected. In addition, the prospect of tax reform led to a pick-up in new-issue supply prior to year-end. These factors drove municipal bond prices lower in late 2017, and the selloff picked up speed in late January/early February due to a spike in U.S. Treasury yields. (Prices and yields move in opposite directions.) The tax-exempt market subsequently stabilized at these lower levels, and it traded largely flat with low volatility through the end of the period.

•

The Fund’s positions in the tobacco and health care sectors, as well as in select development district and single-site project-financing issues, contributed to performance. Holdings in unrated securities and bonds in the B, BB and BBB rating categories, which performed well amid investors’ hearty appetite for higher-yielding securities, also aided results. Portfolio holdings with the longest maturity dates (typically 20 years and longer) added value given that longer-term bonds outperformed.

•

Conversely, the Fund’s performance was hurt by positions in shorter-dated holdings — including higher-quality, pre-refunded bonds — that were most affected by the prospect of tighter Fed policy. Intermediate-term holdings, specifically those in the five- to 10-year range, also lagged somewhat.

•

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.

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		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary as of April 30, 2018 (continued)		BlackRock MuniAssets Fund, Inc.

Market Price and Net Asset Value Per Share Summary


	04/30/18		04/30/17		Change			High		Low
Market Price	$	13.21	$	14.82		(10.86	)%	$	15.84	$	13.14
Net Asset Value		14.01		14.07		(0.43	)		14.29		13.98

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

LOGO

Overview of the Fund’s Total Investments*

SECTOR ALLOCATION


Sector	04/30/18			04/30/17
Health		22	%		22	%
County/City/Special District/School District		17			13
Tobacco		16			16
Transportation		15			19
Education		10			10
Utilities		9			8
Corporate		6			7
State		3			3
Housing		2			2

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 adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2018	18	%
2019	5
2020	12
2021	18
2022	6

^(c)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(a)


Credit Rating	04/30/18			04/30/17
AAA/Aaa		1	%		—	%
AA/Aa		18			19
A		7			8
BBB/Baa		21			21
BB/Ba		12			9
B/B		19			11
CCC/Caa		1			1
N/R^(b)		21			31

^(a)

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.

^(b)

The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of April 30, 2018 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% and 5%, respectively, of the Fund’s total investments.


FUND SUMMARY			7


Fund Summary as of April 30, 2018		BlackRock MuniEnhanced Fund, Inc.

Investment Objective

BlackRock MuniEnhanced Fund, Inc.’s (MEN) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from U.S. 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 U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Fund invests primarily in long-term municipal bonds that are rated investment grade quality or, if unrated, are deemed to be of comparable quality by the investment adviser 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, 2018 ($10.48)^(a)		5.50%
Tax Equivalent Yield^(b)		9.29%
Current Monthly Distribution per Common Share^(c)		$0.0480
Current Annualized Distribution per Common Share^(c)		$0.5760
Economic Leverage as of April 30, 2018^(d)		38%

^(a)

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.

^(b)

^(c)

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

^(d)

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 its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

Performance

Returns for the 12 months ended April 30, 2018 were as follows:


	Returns Based On
	Market Price			NAV
MEN^(a)(b)		(5.23	)%		2.93	%
Lipper General & Insured Municipal Debt Funds (Leveraged)^(c)		(2.37	)		2.65

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

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

^(c)

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

•

During the reporting period, the Fund produced a gain at net asset value. Its return was primarily derived from income given that bond prices fell slightly.

•

The lower end of the investment-grade segment outperformed higher-quality securities in the period. As a result, the Fund’s holdings in bonds rated A and BBB aided returns. Consistent with this trend, allocations to sectors with lower average credit ratings — including transportation and health care — were additive to results.

•

The Fund benefited from its allocation to longer-term bonds, which outpaced short-term issues. Conversely, holdings in pre-refunded securities experienced poor relative performance due to their shorter maturities.

•

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.

•

The Fund’s position in New Jersey appropriated debt, which benefited from meaningful yield spread tightening, further contributed to results.

•

Investments in bonds subject to the AMT helped performance. Yield spreads tightened due to legislation in the Tax Cuts and Jobs Act — which was passed in December 2017 — that eliminated the corporate AMT and significantly limited the reach of the individual AMT.


8		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary as of April 30, 2018 (continued)		BlackRock MuniEnhanced Fund, Inc.

•

The Fund’s use of leverage, while amplifying the impact of weak price performance, was a net contributor since it provided additional income. However, the cost of leverage increased due to rising short-term interest rates.

•

Although yields rose during the period, reinvestment had an adverse effect on the Fund’s income as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.

Market Price and Net Asset Value Per Share Summary


	04/30/18		04/30/17		Change			High		Low
Market Price	$	10.48	$	11.69		(10.35	)%	$	12.45	$	10.34
Net Asset Value		11.46		11.77		(2.63	)		12.11		11.42

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

LOGO

Overview of the Fund’s Total Investments*

SECTOR ALLOCATION


Sector	04/30/18			04/30/17
Transportation		24	%		24	%
County/City/Special District/School District		17			18
State		16			15
Health		14			12
Utilities		13			15
Education		9			11
Corporate		3			3
Housing		2			1
Tobacco		2			1

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2018	9	%
2019	14
2020	3
2021	11
2022	7

^(c)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(a)


Credit Rating	04/30/18			04/30/17
AAA/Aaa		7	%		11	%
AA/Aa		51			57
A		23			17
BBB/Baa		13			12
BB/Ba		2			—
N/R^(b)		4			3

^(a)

^(b)

The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of April 30, 2018 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Fund’s total investments.


FUND SUMMARY			9


Fund Summary as of April 30, 2018		BlackRock MuniHoldings Fund, Inc.

Investment Objective

BlackRock MuniHoldings Fund, Inc.’s (MHD) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds that are rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment 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, 2018 ($14.98)^(a)		5.61%
Tax Equivalent Yield^(b)		9.48%
Current Monthly Distribution per Common Share^(c)		$0.0700
Current Annualized Distribution per Common Share^(c)		$0.8400
Economic Leverage as of April 30, 2018^(d)		37%

^(a)

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.

^(b)

^(c)

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

^(d)

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 its accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

Performance

Returns for the 12 months ended April 30, 2018 were as follows:


	Returns Based On
	Market Price			NAV
MHD^(a)(b)		(4.79	)%		3.07	%
Lipper General & Insured Municipal Debt Funds (Leveraged)^(c)		(2.37	)		2.65

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

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

^(c)

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

•

The Fund’s positions in the transportation, tax-backed (state), tobacco and health care sectors contributed to performance. Holdings in lower-rated investment-grade bonds in the A and BBB rating categories, which performed well amid investors’ hearty appetite for higher-yielding securities, also aided results. Portfolio holdings with the longest maturity dates (typically 20 years and longer) added value given that longer-term bonds outperformed.

•

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.


10		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary as of April 30, 2018 (continued)		BlackRock MuniHoldings Fund, Inc.

Market Price and Net Asset Value Per Share Summary


	04/30/18		04/30/17		Change			High		Low
Market Price	$	14.98	$	16.65		(10.03	)%	$	18.25	$	14.90
Net Asset Value		16.41		16.85		(2.61	)		17.24		16.36

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

LOGO

Overview of the Fund’s Total Investments*

SECTOR ALLOCATION


Sector	04/30/18			04/30/17
Transportation		24	%		24	%
Health		18			19
Utilities		14			11
County/City/Special District/School District		12			12
State		11			12
Education		9			11
Tobacco		6			5
Corporate		5			6
Housing		1			—	^(a)

^(a)

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

CALL/MATURITY SCHEDULE^(d)


Calendar Year Ended December 31,
2018	8	%
2019	23
2020	12
2021	11
2022	10

^(d)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(b)


Credit Rating	04/30/18			04/30/17
AAA/Aaa		3	%		5	%
AA/Aa		44			47
A		20			19
BBB/Baa		15			16
BB/Ba		4			4
B		4			2
N/R^(c)		10			7

^(b)

^(c)

The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of April 30, 2018 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 1% of the Fund’s total investments.


FUND SUMMARY			11


Fund Summary as of April 30, 2018		BlackRock MuniHoldings Fund II, Inc.

Investment Objective

BlackRock MuniHoldings Fund II, Inc.’s (MUH) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. 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 U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds that are rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment 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, 2018 ($13.75)^(a)		5.89%
Tax Equivalent Yield^(b)		9.95%
Current Monthly Distribution per Common Share^(c)		$0.0675
Current Annualized Distribution per Common Share^(c)		$0.8100
Economic Leverage as of April 30, 2018^(d)		37%

^(a)

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.

^(b)

^(c)

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

^(d)

Performance

Returns for the 12 months ended April 30, 2018 were as follows:


	Returns Based On
	Market Price			NAV
MUH^(a)(b)		(6.61	)%		3.09	%
Lipper General & Insured Municipal Debt Funds (Leveraged)^(c)		(2.37	)		2.65

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

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

^(c)

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

•

During the reporting period, the Fund produced a gain at net asset value. Its return was primarily derived from income given that bond prices fell slightly.

•

Bonds rated below investment grade outpaced investment-grade issues during the period, while the lower end of the investment-grade segment outperformed the highest-quality securities. As a result, the Fund’s holdings in BBB rated and high yield bonds aided returns. Consistent with this trend, allocations to sectors with lower average credit ratings — including tobacco and health care — contributed to results.

•

Yield curve positioning was largely additive, as the Fund held a significant amount of longer-term issues relative to short-term bonds. Yields of long-maturity bonds, which have lower sensitivity to Fed policy, rose less than those on short-term bonds. Conversely, holdings in pre-refunded securities experienced poor relative performance due to their shorter maturities.

•

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.


12		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary as of April 30, 2018 (continued)		BlackRock MuniHoldings Fund II, Inc.

•

Market Price and Net Asset Value Per Share Summary


	04/30/18		04/30/17		Change			High		Low
Market Price	$	13.75	$	15.59		(11.80	)%	$	16.63	$	13.58
Net Asset Value		15.11		15.52		(2.64	)		15.85		15.06

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

LOGO

Overview of the Fund’s Total Investments*

SECTOR ALLOCATION


Sector	04/30/18			04/30/17
Transportation		20	%		23	%
Health		20			19
State		15			14
County/City/Special District/School District		13			12
Utilities		10			11
Education		9			10
Tobacco		6			4
Corporate		5			6
Housing		2			1

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2018	9	%
2019	24
2020	11
2021	11
2022	6

^(c)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(a)


Credit Rating	04/30/18			04/30/17
AAA/Aaa		4	%		6	%
AA/Aa		46			50
A		20			18
BBB/Baa		14			15
BB/Ba		4			3
B		4			1
N/R^(b)		8			7

^(a)

^(b)

The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of April 30, 2018 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade each represents 2% and 1%, respectively, of the Fund’s total investments.


FUND SUMMARY			13


Fund Summary as of April 30, 2018		BlackRock MuniHoldings Quality Fund, Inc.

Investment Objective

BlackRock MuniHoldings Quality Fund, Inc.’s (MUS) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Fund invests at least 80% of its assets in investment grade municipal obligations, and obligations deemed to be of comparable quality by the investment adviser at the time of investment, 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, 2018 ($12.40)^(a)		6.15%
Tax Equivalent Yield^(b)		10.39%
Current Monthly Distribution per Common Share^(c)		$0.0635
Current Annualized Distribution per Common Share^(c)		$0.7620
Economic Leverage as of April 30, 2018^(d)		38%

^(a)

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.

^(b)

^(c)

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

^(d)

Performance

Returns for the 12 months ended April 30, 2018 were as follows:


	Returns Based On
	Market Price			NAV
MUS^(a)(b)		(1.88	)%		1.33	%
Lipper General & Insured Municipal Debt Funds (Leveraged)^(c⁾		(2.37	)		2.65

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

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

^(c)

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

•

During the reporting period, the Fund produced a small gain at net asset value. Its return was primarily derived from income given that bond prices fell slightly.

•

The Fund’s positions in longer-dated bonds were beneficial. Longer-term issues, in addition to providing incremental yield, outpaced shorter maturities due to their lower sensitivity to the direction of Fed policy. Conversely, positions in short-dated securities detracted.

•

Positions in BBB rated bonds added value, as lower-quality issues outperformed higher-quality securities. At the sector level, transportation and tax-backed (local) issues made the most significant contributions to performance due to their large weightings in the portfolio. The Fund’s position in tobacco bonds — the best performing sector in the index for the period — also contributed positively.

•

The Fund sought to manage interest rate risk using U.S. Treasury futures. At a time in which Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.

•

Reinvestment had an adverse effect on the Fund’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.


14		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary as of April 30, 2018 (continued)		BlackRock MuniHoldings Quality Fund, Inc.

Market Price and Net Asset Value Per Share Summary


	04/30/18		04/30/17		Change			High		Low
Market Price	$	12.40	$	13.38		(7.32	)%	$	14.21	$	12.30
Net Asset Value		13.35		13.95		(4.30	)		14.17		13.33

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

LOGO

Overview of the Fund’s Total Investments*

SECTOR ALLOCATION


Sector	04/30/18			04/30/17
Transportation		31	%		38	%
County/City/Special District/School District		26			25
Utilities		14			13
Health		8			11
State		8			5
Education		7			4
Housing		3			2
Tobacco		2			1
Corporate		1			1

CALL/MATURITY SCHEDULE^(b)


Calendar Year Ended December 31,
2018	17	%
2019	12
2020	4
2021	18
2022	2

^(b)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(a)


Credit Rating	04/30/18			04/30/17
AAA/Aaa		6	%		6	%
AA/Aa		52			56
A		28			29
BBB/Baa		10			7
N/R		4			2

^(a)


FUND SUMMARY			15


Fund Summary as of April 30, 2018		BlackRock Muni Intermediate Duration Fund, Inc.

Investment Objective

BlackRock Muni Intermediate Duration Fund, Inc.’s (MUI) (the “Fund”) investment objective is to provide common shareholders with high current income exempt from U.S. federal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Fund invests at least 75% of its assets in municipal bonds that are rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment 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 expects to maintain a dollar-weighted average portfolio duration, as calculated by the investment adviser, of three to ten years. 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, 2018 ($13.01)^(a)		4.10%
Tax Equivalent Yield^(b)		6.93%
Current Monthly Distribution per Common Share^(c)		$0.0445
Current Annualized Distribution per Common Share^(c)		$0.5340
Economic Leverage as of April 30, 2018^(d)		39%

^(a)

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.

^(b)

^(c)

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

^(d)

Performance

Returns for the 12 months ended April 30, 2018 were as follows:


	Returns Based On
	Market Price			NAV
MUI^(a)(b)		(2.69	)%		2.76	%
Lipper Intermediate Municipal Debt Funds^(c)		(3.26	)		1.52

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

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

^(c)

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

•

Portfolio income was a key contributor to performance at a time of falling prices. The Fund’s use of leverage, while amplifying the impact of weak price performance, was a net contributor as it provided additional income. However, the cost of leverage increased due to rising short-term interest rates.

•

The Fund’s yield curve positioning, highlighted by concentrations in longer-dated maturities, was beneficial. Longer-term bonds, in addition to providing incremental yield, outpaced shorter maturities due to their lower sensitivity to the direction of Fed policy. Conversely, positions in short-dated securities detracted.

•

Positions in lower-rated investment-grade bonds added value, as higher-yielding, lower-quality securities generally outperformed. At the sector level, positions in tax-backed (state) issues — particularly New Jersey and Illinois and transportation bonds — contributed.

•

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.


16		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary as of April 30, 2018 (continued)		BlackRock Muni Intermediate Duration Fund, Inc.

Market Price and Net Asset Value Per Share Summary


	04/30/18		04/30/17		Change			High		Low
Market Price	$	13.01	$	13.96		(6.81	)%	$	14.41	$	12.96
Net Asset Value		14.93		15.17		(1.58	)		15.67		14.90

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

LOGO

Overview of the Fund’s Total Investments*

SECTOR ALLOCATION


Sector	04/30/18			04/30/17
Transportation		27	%		28	%
County/City/Special District/School District		17			17
State		16			12
Education		12			14
Health		10			10
Utilities		9			11
Corporate		5			4
Tobacco		3			2
Housing		1			2

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2018	3	%
2019	8
2020	8
2021	15
2022	5

^(c)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(a)


Credit Rating	04/30/18			04/30/17
AAA/Aaa		5	%		5	%
AA/Aa		37			43
A		32			31
BBB/Baa		18			16
BB/Ba		2			1
B		1			1
N/R^(b)		5			3

^(a)

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.

^(b)

The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of April 30, 2018 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% and 1%, respectively, of the Fund’s total investments.


FUND SUMMARY			17


Fund Summary as of April 30, 2018		BlackRock MuniVest Fund II, Inc.

Investment Objective

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 U.S. 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 U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Fund invests, under normal market conditions, at least 75% of its assets in municipal bonds that are rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser at the time of investment 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, 2018 ($14.05)^(a)		5.42%
Tax Equivalent Yield^(b)		9.16%
Current Monthly Distribution per Common Share^(c)		$0.0635
Current Annualized Distribution per Common Share^(c)		$0.7620
Economic Leverage as of April 30, 2018^(d)		38%

^(a)

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.

^(b)

^(c)

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

^(d)

Performance

Returns for the 12 months ended April 30, 2018 were as follows:


	Returns Based On
	Market Price			NAV
MVT^(a)(b)		(3.74	)%		2.79	%
Lipper General & Insured Municipal Debt Funds (Leveraged)^(c)		(2.37	)		2.65

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

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

^(c)

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

•

The Fund’s positions in the transportation, tax-backed (state), single-site project finance and tobacco sectors contributed to performance. Holdings in lower-rated investment-grade bonds in the A and BBB rating categories, which performed well amid investors’ hearty appetite for higher-yielding securities, also aided results. Portfolio holdings with the longest maturity dates (typically 20 years and longer) added value given that longer-term bonds outperformed.

•

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive effect on returns.


18		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary as of April 30, 2018 (continued)		BlackRock MuniVest Fund II, Inc.

Market Price and Net Asset Value Per Share Summary


	04/30/18		04/30/17		Change			High		Low
Market Price	$	14.05	$	15.45		(9.06	)%	$	16.18	$	13.91
Net Asset Value		14.75		15.19		(2.90	)		15.46		14.72

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

LOGO

Overview of the Fund’s Total Investments*

SECTOR ALLOCATION


Sector Allocation	04/30/18			04/30/17
Transportation		29	%		26	%
Health		18			18
Utilities		13			11
State		12			14
County/City/Special District/School District		9			12
Corporate		6			6
Tobacco		6			5
Education		6			7
Housing		1			1

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2018	13	%
2019	21
2020	12
2021	10
2022	9

^(c)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(a)


Credit Rating	04/30/18			04/30/17
AAA/Aaa		4	%		5	%
AA/Aa		42			50
A		20			13
BBB/Baa		18			16
BB/Ba		5			4
B		5			2
N/R^(b)		6			10

^(a)

^(b)

The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of April 30, 2018 and April 30, 2017, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and 3%, respectively, of the Fund’s total investments.


FUND SUMMARY			19

Schedule of Investments

April 30, 2018

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value
Municipal Bonds — 87.8%

Alabama — 1.8%
County of Jefferson Alabama Sewer, Refunding RB, Sub-Lien, Series D, 6.00%, 10/01/42	$	3,745	$	4,305,365
Lower Alabama Gas District, RB, Series A, 5.00%, 09/01/46		1,910		2,257,276
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/20^(a)		2,165		2,365,349

				8,927,990
Alaska — 1.3%
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A:
4.63%, 06/01/23		640		658,285
5.00%, 06/01/32		1,500		1,500,030
5.00%, 06/01/46		4,290		4,279,532

				6,437,847
Arizona — 2.6%
Arizona IDA, Refunding RB, Series A^(b):
Basis Schools, Inc. Projects, 5.13%, 07/01/37		960		991,939
Odyssey Preparatory Academy Project, 5.50%, 07/01/52		1,500		1,465,980
City of Phoenix Arizona IDA, RB:
Great Hearts Academies — Veritas Project, 6.40%, 07/01/21^(a)		425		480,224
Great Hearts Academies — Veritas Projects, 6.30%, 07/01/21^(a)		500		563,450
Legacy Traditional Schools Project, Series A, 6.50%, 07/01/34^(b)		570		628,471
Legacy Traditional Schools Projects, Series A, 6.75%, 07/01/44^(b)		1,000		1,104,140
City of Phoenix Arizona IDA, Refunding RB^(b):
Basis Schools, Inc. Projects, 5.00%, 07/01/35		305		312,729
Basis Schools, Inc. Projects, 5.00%, 07/01/45		855		869,877
Basis Schools, Inc. Projects, Series A, 5.00%, 07/01/35		260		266,588
Basis Schools, Inc. Projects, Series A, 5.00%, 07/01/46		290		294,869
Legacy Traditional School Projects, 5.00%, 07/01/35		320		328,109
Legacy Traditional School Projects, 5.00%, 07/01/45		255		259,279
County of La Paz IDA, RB, Imagine Schools Desert West Middle Project, 5.88%, 06/15/48^(b)		875		873,705
Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37		1,650		1,926,688
State of Arizona IDA, RB, Academies of Math & Science Project, Series B, 5.13%, 07/01/47^(b)		665		636,365
State of Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.25%, 07/01/47^(b)		1,765		1,826,440
University Medical Center Corp., RB, 6.50%, 07/01/19^(a)		500		525,920

				13,354,773
California — 7.5%
California Municipal Finance Authority, RB, Urban Discovery Academy Project^(b):
5.50%, 08/01/34		315		319,791
6.00%, 08/01/44		665		671,470
6.13%, 08/01/49		580		584,866
California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A:
5.00%, 02/01/36		345		379,862
5.00%, 02/01/37		255		280,166
California School Finance Authority, RB:
Alliance for College Ready Public School - 2023 Union LLC Project, Series A, 6.40%, 07/01/48		1,570		1,753,423
Value Schools, 6.65%, 07/01/33		435		487,605
Value Schools, 6.90%, 07/01/43		975		1,066,475


Security	Par (000)		Value
California (continued)
California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A^(b):
5.00%, 12/01/46	$	725	$	763,353
5.25%, 12/01/56		620		658,955
California Statewide Communities Development Authority, Refunding RB, American Baptist Homes of the West, 6.25%, 10/01/39		2,175		2,290,362
California Statewide Financing Authority, RB, Asset-Backed, Tobacco Settlement, Series B, 6.00%, 05/01/43		1,650		1,650,330
City & County of San Francisco California Redevelopment Agency, Tax Allocation Bonds, Mission Bay South Redevelopment Project, Series D^(b)^(c):
0.00%, 08/01/26		1,250		846,000
0.00%, 08/01/43		1,500		409,395
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:
6.50%, 05/01/36		900		1,010,817
6.50%, 05/01/42		2,220		2,493,349
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/40		375		436,898
County of Los Angeles California Tobacco Securitization Agency, RB, Asset-Backed, Los Angeles County Securitization Corp.:
5.70%, 06/01/46		3,600		3,609,972
5.60%, 06/01/36		1,285		1,299,443
County of Riverside California Transportation Commission, RB, Senior Lien, Series A, 5.75%, 06/01/48		2,885		3,190,291
Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior Series A-1:
5.13%, 06/01/47		3,125		3,124,906
5.75%, 06/01/47		3,745		3,852,556
Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1:
4.75%, 06/01/25		1,230		1,232,632
5.00%, 06/01/37		5,580		5,596,070

				38,008,987
Colorado — 1.3%
Castle Oaks Metropolitan District No. 3, GO, 6.25%, 12/01/20^(a)		500		566,330
Centerra Metropolitan District No. 1, Tax Allocation Bonds, 5.00%, 12/01/47^(b)		575		582,205
Colorado Health Facilities Authority, Refunding RB, Sunny Vista Living Center Project, Series A^(b):
6.13%, 12/01/45		335		351,606
6.25%, 12/01/50		1,115		1,171,140
Colorado International Center Metropolitan District No. 14, GOL, 5.88%, 12/01/46		1,490		1,546,292
Copperleaf Metropolitan District No. 2, GO, Refunding, 5.75%, 12/01/45		720		752,746
Regional Transportation District, RB, Denver Transit Partners Eagle P3 Project, 6.00%, 01/15/34		1,500		1,605,435

				6,575,754
Connecticut — 0.9%
Mohegan Tribal Finance Authority, RB, 7.00%, 02/01/45^(b)		1,400		1,474,004
Mohegan Tribe of Indians of Connecticut, RB, Series A, 6.75%, 02/01/45^(b)		971		1,037,981
Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, Series C, 6.25%, 02/01/30^(b)		1,835		1,980,882

				4,492,867


20		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

April 30, 2018

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value
Delaware — 0.9%
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40	$	1,000	$	1,055,310
State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45		3,180		3,297,692

				4,353,002
Florida — 8.4%
Boggy Creek Improvement District, Refunding RB, Special Assessment Bonds, 5.13%, 05/01/43		1,460		1,468,614
Capital Region Community Development District, Refunding, Special Assessment, Capital Improvement Revenue Bond, Series A-1, 5.13%, 05/01/39		1,500		1,492,365
Capital Trust Agency, Inc., RB, Silver Creek St. Augustine Project, Series A^(d)^(e):
1st Mortgage, 8.25%, 01/01/44		515		386,250
1st Mortgage, 8.25%, 01/01/49		1,105		828,750
5.75%, 01/01/50		655		583,539
County of Collier Florida IDA, Refunding RB, Arlington of Naples Project, Series A, 8.13%, 05/15/44^(b)		2,510		2,807,611
County of Miami-Dade Florida IDA, RB, Doral Academy Project, 5.00%, 01/15/48		915		954,244
County of Palm Beach Florida Health Facilities Authority, RB, Acts Retirement Life Community, 5.50%, 11/15/20^(a)		3,500		3,791,480
County of Palm Beach Florida Health Facilities Authority, Refunding RB, Series A, 7.25%, 06/01/34		500		575,040
Florida Development Finance Corp., RB:
Renaissance Charter School, Series A, 5.75%, 06/15/29		690		728,661
Renaissance Charter School, Series A, 6.00%, 06/15/34		835		875,765
Renaissance Charter School, Series A, 6.13%, 06/15/44		3,180		3,293,113
Solid Waste Disposal Facility, Waste Pro USA, Inc. Project, AMT, 5.00%, 08/01/29^(b)(f)		1,550		1,605,614
Greeneway Improvement District, RB, Special Assessment Bonds, 5.13%, 05/01/43		1,820		1,834,742
Harbor Bay Community Development District Florida, Special Assessment Bonds, Series A, 7.00%, 05/01/33		380		381,349
Lakewood Ranch Stewardship District Special Assessment Bonds, Village of Lakewood Ranch Sector Projects, 4.00%, 05/01/21		105		105,972
Lakewood Ranch Stewardship District Special Assessment Bonds, Refunding, Lakewood Center & New Sector Projects, 8.00%, 05/01/40		1,485		1,711,997
Lakewood Ranch Stewardship District Special Assessment Bonds, Village of Lakewood Ranch Sector Projects:
4.25%, 05/01/26		145		147,014
5.13%, 05/01/46		860		886,445
Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21^(a)		4,550		5,282,049
Midtown Miami Community Development District, Refunding, Special Assessment Bonds:
Series A, 5.00%, 05/01/37		845		884,960
Series B, 5.00%, 05/01/37		495		518,409
Santa Rosa Bay Bridge Authority, RB, 6.25%, 07/01/28^(d)(e)		3,947		2,921,085
Tampa Palms Open Space and Transportation Community Development District, RB, Capital Improvement, Richmond Place Project, 7.50%, 05/01/18		295		295,000
Tolomato Community Development District, Refunding, Special Assessment Bonds^(g):
Convertible CAB, Series A3, 6.61%, 05/01/40		585		553,492
Convertible CAB, Series A4, 6.61%, 05/01/40		305		241,935
Series 2015-2, 6.61%, 05/01/40		805		527,492
Tolomato Community Development District:
Series 1, 6.61%, 05/01/40^(g)		1,305		1,039,354
Series 1, 6.65%, 05/01/40^(d)(e)		50		48,322
Series 3, 6.61%, 05/01/40^(d)(e)		875		9
Series 3, 6.65%, 05/01/40^(d)(e)		710		7


Security	Par (000)		Value
Florida (continued)
Village Community Development District No. 9, Special Assessment Bonds:
6.75%, 05/01/31	$	1,500	$	1,672,410
7.00%, 05/01/41		2,460		2,810,698
5.50%, 05/01/42		1,165		1,254,367

				42,508,154
Georgia — 1.1%
County of Clayton Georgia Development Authority, Refunding RB, Delta Air Lines, Inc. Project, Series A, 8.75%, 06/01/29		3,365		3,773,343
County of Gainesville & Hall Georgia Development Authority, Refunding RB, Acts Retirement Life Community, Series A-2^(a):
6.38%, 11/15/19		700		746,536
6.63%, 11/15/19		880		941,116

				5,460,995
Guam — 0.3%
Territory of Guam, GO, Series A:
6.00%, 11/15/19		270		277,149
7.00%, 11/15/19^(a)		1,115		1,198,380

				1,475,529
Illinois — 5.8%
Chicago Board of Education, GO, Dedicated Revenues:
Series H, 5.00%, 12/01/46		720		706,010
Refunding Series D, 5.00%, 12/01/27		900		929,718
Refunding Series D, 5.00%, 12/01/31		1,000		1,007,530
Refunding Series F, 5.00%, 12/01/22		675		711,936
Refunding Series G, 5.00%, 12/01/44		2,150		2,118,803
City of Chicago Illinois, GO, Refunding, Series A, 6.00%, 01/01/38		1,260		1,392,376
Illinois Finance Authority, Refunding RB:
Friendship Village of Schaumburg, 7.25%, 02/15/20^(a)		4,000		4,362,800
Lutheran Home & Services Obligated Group, 5.63%, 05/15/42		2,395		2,505,074
Presence Health Network, Series C, 4.00%, 02/15/41		1,500		1,484,430
Primary Health Care Centers Program, 6.60%, 07/01/24		890		884,571
Rogers Park Montessori School Project, Series 2014, 6.00%, 02/01/34		365		381,524
Rogers Park Montessori School Project, Series 2014, 6.13%, 02/01/45		860		897,264
Roosevelt University Project, 6.50%, 04/01/44		2,000		2,089,320
Metropolitan Pier & Exposition Authority, RB, Series A, McCormick Place Expansion Project:
Bonds, 0.00%, 12/15/56^(c)		5,005		639,339
5.50%, 06/15/53		2,370		2,513,480
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project Bonds, Series B, 0.00%, 12/15/54^(c)		6,980		998,978
Railsplitter Tobacco Settlement Authority, RB^(a):
5.50%, 06/01/21		180		197,991
6.00%, 06/01/21		710		791,494
State of Illinois, GO:
5.25%, 02/01/29		1,000		1,032,430
Series A, 5.00%, 01/01/33		740		748,088
Series D, 5.00%, 11/01/28		1,365		1,415,136
Village of Lincolnshire Illinois, Special Tax Bonds, Sedgebrook Project, 6.25%, 03/01/34		1,659		1,662,268

				29,470,560
Indiana — 2.5%
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:
6.75%, 01/01/34		825		963,014
7.00%, 01/01/44		2,000		2,346,600


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (continued)

April 30, 2018

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value
Indiana (continued)
City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village Project, 6.25%, 01/01/29^(b)	$	2,315	$	2,302,314
County of Allen Indiana, RB, StoryPoint Fort Wayne Project, Series A-1^(b):
6.63%, 01/15/34		290		308,580
6.75%, 01/15/43		525		557,912
6.88%, 01/15/52		2,450		2,608,785
Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges East End Crossing Project, Series A, AMT:
5.00%, 07/01/44		470		500,503
5.00%, 07/01/48		1,555		1,651,410
Town of Chesterton Indiana, RB, StoryPoint Chesterton Project, Series A-1, 6.38%, 01/15/51^(b)		1,190		1,227,092

				12,466,210
Iowa — 2.7%
Iowa Finance Authority, Refunding RB:
Iowa Fertilizer Co. Project, Series B, 5.25%, 12/01/50^(f)		2,085		2,189,896
Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.50%, 12/01/22		5		5,073
Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.25%, 12/01/25		2,190		2,330,138
Sunrise Retirement Community Project, 5.50%, 09/01/37		1,355		1,371,518
Sunrise Retirement Community Project, 5.75%, 09/01/43		2,115		2,156,137
Iowa Tobacco Settlement Authority, Refunding RB:
Asset-Backed, CAB, Series B, 5.60%, 06/01/34		795		803,196
Series C, 5.38%, 06/01/38		4,900		4,911,907

				13,767,865
Kentucky — 0.9%
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing, First Tier, Series A, 5.75%, 07/01/49		4,000		4,376,120

Louisiana — 2.1%
Juban Crossing Economic Development District, Refunding RB, General Infrastructure Project, Series C, 7.00%, 09/15/44^(b)		2,460		2,548,240
Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.75%, 05/01/41		1,745		1,854,953
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.25%, 05/15/35		5,570		6,024,456

				10,427,649
Maine — 0.6%
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 07/01/41		2,955		3,193,143

Maryland — 2.6%
County of Frederick Maryland, RB, Jefferson Technology Park Project, Series B, 7.13%, 07/01/43^(b)		2,840		3,052,631
Maryland EDC, RB:
Purple Line Light Rail Project, AMT, 5.00%, 03/31/51		2,185		2,370,550
Transportation Facilities Project, Series A, 5.75%, 06/01/20^(a)		3,615		3,887,535
Maryland EDC, Refunding RB:
CNX Marine Terminals, Inc., 5.75%, 09/01/25		3,085		3,218,488
Transportation Facilities Project, Series A, 5.00%, 06/01/35		415		462,256

				12,991,460
Massachusetts — 1.0%
Massachusetts Development Finance Agency, RB, Series A^(a):
Foxborough Regional Charter School, 7.00%, 07/01/20		1,025		1,131,128
North Hill Communities Issue, 6.50%, 11/15/23^(b)		2,020		2,442,261


Security	Par (000)		Value
Massachusetts (continued)
Massachusetts Development Finance Agency, Refunding RB, Tufts Medical Center, Series I:
6.75%, 01/01/21^(a)	$	895	$	998,041
6.75%, 01/01/36		595		663,342

				5,234,772
Michigan — 0.9%
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39		2,785		2,977,750
Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 07/01/44		415		442,386
Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 07/01/44		920		994,851

				4,414,987
Minnesota — 0.1%
St. Paul Housing & Redevelopment Authority, Refunding RB, Hmong College Prep Academy Project, Series A:
5.75%, 09/01/46		195		205,257
6.00%, 09/01/51		290		308,116

				513,373
Missouri — 1.0%
City of St. Louis Missouri IDA, Refunding RB, BallPark Village Development Project, Series A:
4.38%, 11/15/35		685		695,480
4.75%, 11/15/47		760		772,791
Kirkwood Missouri IDA, RB, Aberdeen Heights, Series A, 8.25%, 05/15/20^(a)		2,315		2,594,328
Lees Summit Missouri IDA, RB, John Knox Obligated Group, 5.25%, 08/15/39		1,000		1,040,600

				5,103,199
New Jersey — 3.5%
Casino Reinvestment Development Authority, Refunding RB:
5.25%, 11/01/39		1,065		1,128,399
5.25%, 11/01/44		770		816,008
County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45^(b)		1,150		1,160,672
New Jersey EDA, RB:
Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 01/01/43		2,155		2,348,153
Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 04/01/31		2,250		2,557,778
Provident Group-Kean Properties, Series A, 5.00%, 07/01/32		165		178,985
Provident Group-Kean Properties, Series A, 5.00%, 07/01/37		260		278,080
Team Academy Charter School Project, 6.00%, 10/01/43		1,530		1,681,470
New Jersey EDA, Refunding RB, Greater Brunswick Charter School, Inc. Project, Series A, 6.00%, 08/01/49^(b)		500		505,385
New Jersey Health Care Facilities Financing Authority, Refunding RB^(a):
St. Barnabas Health Care System, Series A, 5.63%, 07/01/21		2,650		2,923,268
St. Joseph’s Healthcare System, 6.63%, 07/01/18		1,590		1,602,211
New Jersey Transportation Trust Fund Authority, RB, Transportation Program, Series AA, 5.25%, 06/15/41		1,140		1,214,396
Tobacco Settlement Financing Corp., Refunding RB, Sub-Series B, 5.00%, 06/01/46		830		870,853
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series A, 5.25%, 06/01/46		590		655,272

				17,920,930


22		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

April 30, 2018

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value
New Mexico — 0.6%
New Mexico Hospital Equipment Loan Council, Refunding RB, Gerald Champion Regional Medical Center Project, 5.50%, 07/01/42	$	2,970	$	3,161,417

New York — 7.5%
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A:
6.25%, 06/01/41^(b)		5,300		5,519,420
5.00%, 06/01/42		3,155		3,107,107
5.00%, 06/01/45		1,185		1,154,083
Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through:
Series A-2B, 5.00%, 06/01/51		1,900		1,972,827
Series B, 5.00%, 06/01/45		2,655		2,817,858
County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility, Series A-1, 5.00%, 08/01/46		3,315		3,137,449
County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44		1,310		1,389,460
Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45		2,890		2,826,940
Metropolitan Transportation Authority, RB, Series C:
6.50%, 11/15/18^(a)		125		128,146
6.50%, 11/15/18^(a)		1,490		1,527,503
6.50%, 11/15/28		385		394,837
New York Liberty Development Corp., Refunding RB:
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49		1,270		1,343,393
3 World Trade Center Project, Class 1, 5.00%, 11/15/44^(b)		4,705		4,942,791
3 World Trade Center Project, Class 2, 5.15%, 11/15/34^(b)		455		495,063
3 World Trade Center Project, Class 2, 5.38%, 11/15/40^(b)		1,080		1,176,314
3 World Trade Center Project, Class 3, 7.25%, 11/15/44^(b)		1,565		1,856,951
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42^(b)		1,335		1,335,801
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		1,467,394
State of New York Dormitory Authority, Refunding RB, Orange Regional Medical Center, 5.00%, 12/01/33^(b)		955		1,035,411

				37,628,748
North Carolina — 1.5%
North Carolina Medical Care Commission, Refunding RB, 1st Mortgage, Series A^(a):
Deerfield Project, 6.13%, 11/01/18		4,565		4,662,965
Retirement Facilities Whitestone Project, 7.75%, 03/01/21		1,000		1,149,370
Retirement Facilities Whitestone Project, 7.75%, 03/01/21		1,420		1,632,105

				7,444,440
Ohio — 3.2%
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Series A-2:
Senior Turbo Term, 5.75%, 06/01/34		6,745		6,684,632
Senior Turbo Term, 5.88%, 06/01/47		5,570		5,569,944
6.00%, 06/01/42		3,040		3,032,522
County of Hamilton Ohio, Refunding RB, Improvement-Life Enriching Communities, 5.00%, 01/01/46		875		927,474

				16,214,572


Security	Par (000)		Value
Oklahoma — 1.4%
County of Tulsa Oklahoma Industrial Authority, Refunding RB, Montereau, Inc. Project, 5.25%, 11/15/37	$	750	$	826,763
Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B:
5.00%, 08/15/38		2,990		3,253,090
5.25%, 08/15/43		2,690		2,961,582

				7,041,435
Oregon — 0.8%
County of Multnomah Oregon Hospital Facilities Authority, Refunding RB, Mirabella at South Waterfront, 5.50%, 10/01/49		1,765		1,881,543
Polk County Hospital Facility Authority, RB, Dallas Retirement Village Project, Series A:
5.13%, 07/01/35		620		642,698
5.38%, 07/01/45		1,435		1,498,571

				4,022,812
Pennsylvania — 4.0%
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A, 5.00%, 05/01/42		2,140		2,215,135
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/36		2,000		2,172,940
Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:
5.00%, 06/01/33		115		128,610
5.00%, 06/01/34		150		166,679
County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran:
6.38%, 01/01/19^(a)		5,550		5,715,168
6.38%, 01/01/39		615		629,084
County of Lehigh Pennsylvania General Purpose Authority, Refunding RB, Bible Fellowship Church Homes, 5.13%, 07/01/32		1,800		1,822,392
County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 5.00%, 09/01/43		1,365		1,516,105
County of Northampton Pennsylvania IDA, Route 33 Project, Tax Allocation Bonds, 7.00%, 07/01/32		2,030		2,317,549
Montgomery County Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49		620		610,167
Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44		2,710		2,848,752

				20,142,581
Puerto Rico — 1.1%
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:
5.50%, 05/15/39		635		619,531
5.63%, 05/15/43		2,145		2,051,285
Commonwealth of Puerto Rico, GO, Refunding, Series A^(d)(e):
Public Improvement, 5.50%, 07/01/39		665		286,781
8.00%, 07/01/35		1,765		745,713
Commonwealth of Puerto Rico, GO, , 6.00%, 07/01/38^(d)(e)		750		338,438
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A, 6.00%, 07/01/44		850		692,750
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 07/01/38		990		806,850

				5,541,348
Rhode Island — 2.3%
Central Falls Detention Facility Corp., Refunding RB, 7.25%, 07/15/35^(d)(e)		4,190		754,200


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (continued)

April 30, 2018

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value
Rhode Island (continued)
Tobacco Settlement Financing Corp., Refunding RB:
Series A, 5.00%, 06/01/35	$	1,000	$	1,075,140
Series A, 5.00%, 06/01/40		980		1,039,878
Series B, 4.50%, 06/01/45		5,055		5,106,763
Series B, 5.00%, 06/01/50		3,330		3,411,619

				11,387,600
Tennessee — 0.4%
County of Memphis-Shelby Tennessee Industrial Development Board, Refunding, Tax Allocation Bonds, Senior Tax Increment, Graceland Project, Series A:
5.50%, 07/01/37		925		982,350
5.63%, 01/01/46		1,085		1,148,190

				2,130,540
Texas — 9.9%
Central Texas Regional Mobility Authority, Refunding RB:
CAB, 0.00%, 01/01/28^(c)		1,000		699,010
CAB, 0.00%, 01/01/29^(c)		2,000		1,333,140
CAB, 0.00%, 01/01/30^(c)		1,170		743,090
CAB, 0.00%, 01/01/33^(c)		3,690		2,017,544
CAB, 0.00%, 01/01/34^(c)		4,000		2,079,560
Senior Lien, 6.25%, 01/01/21^(a)		2,210		2,439,067
City of Houston Texas Airport System, Refunding ARB, AMT:
Special Facilities, Continental Airlines, Inc., Series A, 6.63%, 07/15/38		2,890		3,172,237
United Airlines, Inc. Terminal E Project, 5.00%, 07/01/29		910		984,420
Clifton Higher Education Finance Corp., ERB, Idea Public Schools^(a):
5.50%, 08/15/31		955		1,053,069
5.75%, 08/15/41		720		799,603
County of Bexar Texas Health Facilities Development Corp., RB, Army Retirement Residence Project, 6.20%, 07/01/20^(a)		5,040		5,471,374
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 01/01/23^(a)		475		570,613
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co., Project, Series A, 6.30%, 11/01/29		2,090		2,232,392
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Senior Living Center Project, Series A, 8.25%, 11/15/44		4,200		3,685,836
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Trinity Terrace Project, 5.00%, 10/01/49		865		907,991
County of Travis Texas Health Facilities Development Corp., Refunding RB, 7.13%, 01/01/46^(a)		3,080		3,472,823
Mesquite Health Facility Development Corp., Refunding RB, 5.13%, 02/15/42		810		833,401
Mission Texas Economic Development Corp., RB, Senior Lien, Natural Gasoline Project, Series B, AMT, 5.75%, 10/01/31^(b)		1,325		1,375,403
New Hope Cultural Education Facilities Corp., RB, Stephenville LLC Tarleton State University Project:
5.88%, 04/01/36		1,210		1,340,970
6.00%, 04/01/45		1,845		2,008,928
Newark Higher Education Finance Corp., RB, Series A^(b):
5.50%, 08/15/35		290		299,634
5.75%, 08/15/45		580		602,295
North Texas Education Finance Corp., ERB, Uplift Education, Series A, 5.25%, 12/01/47		1,600		1,672,112


Security	Par (000)		Value
Texas (continued)
Red River Health Facilities Development Corp., First MRB, Project:
Eden Home, Inc., 7.25%, 12/15/42^(d)^(e)	$	2,895	$	1,679,100
Wichita Falls Retirement Foundation, 5.13%, 01/01/41		900		923,337
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:
LBJ Infrastructure Group LLC, 7.00%, 06/30/40		3,775		4,142,609
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39		3,000		3,225,240

				49,764,798
Utah — 0.6%
State of Utah Charter School Finance Authority, Refunding RB, 6.75%, 10/15/43		2,950		2,968,438

Vermont — 0.2%
Vermont EDA, Refunding, MRB, Wake Robin Corp. Project, 5.40%, 05/01/33		770		815,877

Virginia — 2.3%
Lower Magnolia Green Community Development Authority, Special Assessment Bonds^(b):
5.00%, 03/01/35		495		502,692
5.00%, 03/01/45		505		508,449
Mosaic District Community Development Authority, Special Assessment, Series A:
6.63%, 03/01/26		1,485		1,610,602
6.88%, 03/01/36		1,300		1,414,985
Tobacco Settlement Financing Corp., Refunding RB, Senior Series B-1, 5.00%, 06/01/47		2,280		2,246,963
Virginia College Building Authority, RB, Marymount University Project, Series B, 5.00%, 07/01/45^(b)		535		559,867
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 01/01/37		4,440		4,940,965

				11,784,523
Washington — 0.8%
County of King Washington Public Hospital District No. 4, GO, Refunding, Snoqualmie Valley Hospital, 7.00%, 12/01/40		1,455		1,501,167
Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A, 5.50%, 09/01/42		1,495		1,523,674
Washington State Housing Finance Commission, Refunding RB^(b):
5.75%, 01/01/35		315		317,397
6.00%, 01/01/45		850		858,738

				4,200,976
Wisconsin — 1.4%
Public Finance Authority, RB:
Alabama Proton Therapy Center, Series A, 6.25%, 10/01/31^(b)		605		588,393
Alabama Proton Therapy Center, Series A, 7.00%, 10/01/47^(b)		605		609,919
Delray Beach Radiation Therapy, 6.85%, 11/01/46^(b)		900		922,680
Delray Beach Radiation Therapy, 7.00%, 11/01/46^(b)		570		589,887
Series A, 5.00%, 12/01/45		1,505		1,571,491
Series A, 5.15%, 12/01/50		1,170		1,225,236
Wisconsin Health & Educational Facilities Authority, Refunding RB:
Benevolent Corporation Cedar Community, 5.00%, 06/01/41		225		232,738
St. Johns Communities, Inc., Series A, 7.25%, 09/15/19^(a)		425		455,039


24		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

April 30, 2018

BlackRock MuniAssets Fund, Inc. (MUA)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value
Wisconsin (continued)
St. Johns Communities, Inc., Series A, 7.63%, 09/15/19^(a)	$	855	$	919,740

				7,115,123

Total Municipal Bonds — 87.8% (Cost — $419,424,533)				442,841,394


Municipal Bonds Transferred to Tender Option Bond Trusts^(h)

Colorado — 2.4%
Colorado Health Facilities Authority, Refunding RB, Sisters of Leavenworth Health System, Series A, 5.00%, 01/01/40		11,468		11,932,401

Florida — 3.0%
County of Miami-Dade Florida Aviation Revenue, Refunding ARB, Miami International, Series A, AGC^(a):
5.25%, 10/01/18		11,655		11,810,303
5.25%, 10/01/18		3,345		3,389,572

				15,199,875
Illinois — 2.7%
Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 08/15/41		7,180		7,925,069
State of Illinois Toll Highway Authority, RB, Series A, 5.00%, 01/01/40		5,056		5,569,395

				13,494,464
Massachusetts — 0.5%
Commonwealth of Massachusetts Transportation Fund Revenue, RB, Rail Enhancement Program, Series A, 4.00%, 06/01/45		2,268		2,315,284

New York — 13.1%
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		9,177,600
City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution:
Fiscal 2013, Series CC, 5.00%, 06/15/47		14,181		15,562,518
Series HH, 5.00%, 06/15/31⁽ⁱ⁾		8,610		9,309,763
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 02/15/47⁽ⁱ⁾		4,520		4,933,363
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43		18,104		19,724,529
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51⁽ⁱ⁾		6,600		7,303,260

				66,011,033
Pennsylvania — 0.6%
Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42		2,505		2,852,627

Rhode Island — 0.3%
Narragansett Bay Commission, Refunding RB, Wastewater System, Series A, 4.00%, 09/01/43		1,710		1,727,373


Security	Par (000)		Value
Texas — 0.4%
Lower Colorado River Authority, Refunding RB, LCRA Transmission Services Corporation Project, 4.00%, 05/15/43	$	2,271	$	2,283,246

Washington — 1.7%
City of Bellingham Washington Water & Sewer Revenue, RB, Water & Sewer, 5.00%, 08/01/40		7,966		8,573,401

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 24.7% (Cost — $119,626,522)				124,389,704

Total Long-Term Investments — 112.5% (Cost — $539,051,055)				567,231,098


	Shares
Short-Term Securities — 0.4%
BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.48%^(j)(k)		2,226,571		2,226,571

Total Short-Term Securities — 0.4% (Cost — $2,226,571)				2,226,571


Total Investments — 112.9% (Cost — $541,277,626)				569,457,669
Other Assets Less Liabilities — 1.4%				7,245,844
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (14.3)%				(72,233,065	)

Net Assets Applicable to Common Shares — 100.0%			$	504,470,448

^(a)	U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

^(b)	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.

^(c)	Zero-coupon bond.

^(d)	Non-income producing security.

^(e)	Issuer filed for bankruptcy and/or is in default.

^(f)	Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

^(g)	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.

^(h)	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.

⁽ⁱ⁾

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between February 15, 2019 to November 15, 2019, is $11,849,809. See Note 4 of the Notes to Financial Statements for details.

^(j)	Annualized 7-day yield as of period end.

^(k)	During the year ended April 30, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliated	Shares Held at 04/30/17		Net Activity		Shares Held at 04/30/18		Value at 04/30/18		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, MuniCash, Institutional Class		1,057,065		1,169,506		2,226,571	$	2,226,571	$	24,826	$	260	$	(96	)

^(a)

Includes net capital gain distributions, if applicable.


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (continued)

April 30, 2018

BlackRock MuniAssets Fund, Inc. (MUA)

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts


Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Short Contracts:
10-Year U.S. Treasury Note		29		06/20/18	$	3,469	$	18,732
Long U.S. Treasury Bond		53		06/20/18		7,624		8,839
5-Year U.S. Treasury Note		23		06/29/18		2,611		12,011

							$	39,582

Derivative Financial Instruments Categorized by Risk Exposure

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


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	39,582	$	—	$	39,582

^(a)

Includes 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, 2018, the effect of derivative financial instruments in the Statements of Operations was as follows:


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	613,477	$	—	$	613,477

Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	279,076	$	—	$	279,076

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	20,009,572

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

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 Investments^(a)	$	—	$	567,231,098	$	—	$	567,231,098
Short-Term Securities		2,226,571		—		—		2,226,571

	$	2,226,571	$	567,231,098	$	—	$	569,457,669


26		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

April 30, 2018

BlackRock MuniAssets Fund, Inc. (MUA)


	Level 1		Level 2		Level 3		Total
Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	39,582	$	—	$	—	$	39,582

^(a)

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

^(b)

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

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, TOB Trust Certificates of $71,924,984 are categorized as Level 2 within the disclosure hierarchy.

During the year ended April 30, 2018, there were no transfers between levels.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			27

Schedule of Investments

April 30, 2018

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value
Municipal Bonds — 124.9%

Alabama — 0.6%
County of Tuscaloosa Board of Education, RB, Special Tax School Warrants, 5.00%, 02/01/43	$	885	$	989,899
Homewood Educational Building Authority, Refunding RB, Educational Facilities, Samford University, Series A, 5.00%, 12/01/47		1,010		1,104,748

				2,094,647
Alaska — 0.7%
Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A, 5.50%, 10/01/41		990		1,071,051
Borough of Matanuska-Susitna Alaska, RB, Goose Creek Correctional Center (AGC)^(a):
6.00%, 09/01/19		765		806,096
6.00%, 09/01/19		435		458,368

				2,335,515
Arizona — 2.1%
County of Maricopa Arizona IDA, Refunding RB, Banner Health Obligation Group, Series A, 4.00%, 01/01/41		3,940		4,019,076
State of Arizona, COP, Department of Administration, Series A (AGM):
5.00%, 10/01/27		2,700		2,807,703
5.00%, 10/01/29		400		415,900

				7,242,679
California — 14.3%
Anaheim California Public Financing Authority, RB, Senior, Public Improvements Project, Series A (AGM), 6.00%, 09/01/24		5,000		5,766,950
California Health Facilities Financing Authority, RB:
St. Joseph Health System, Series A, 5.75%, 07/01/39		550		574,376
Sutter Health, Series A, 4.00%, 11/15/42		230		233,464
Sutter Health, Series B, 5.88%, 08/15/20^(a)		1,200		1,307,028
California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/37		1,090		1,208,941
California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 04/01/42		1,480		1,604,453
City & County of San Francisco California Airports Commission, Refunding ARB, Series A, AMT, 5.00%, 05/01/42		155		173,447
City of Redding California Electric System Revenue, COP, Refunding Series A (AGM), 5.00%, 06/01/30		600		601,590
City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, AMT:
Series A, 5.00%, 03/01/36		410		459,991
Series A, 5.00%, 03/01/37		455		509,741
Series A-1, 5.75%, 03/01/34		850		924,035
County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 03/01/21^(a)		2,175		2,417,012
County of San Mateo California Community College District, GO, CAB, Election of 2001, Series C (NPFGC), 0.00%, 09/01/30^(b)		12,740		8,686,642
Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 0.00%, 08/01/43^(c)		2,500		1,997,525
Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement, Election of 2008, Series B, 0.00%, 08/01/36^(b)		3,750		1,856,625
Rio Hondo Community College District California, GO, CAB, Election of 2004, Series C, 0.00%, 08/01/38^(b)		5,000		2,278,300
San Diego California Community College District, GO, CAB, Election of 2006^(b):
0.00%, 08/01/31		2,145		1,199,741
0.00%, 08/01/32		2,680		1,407,000


Security	Par (000)		Value
California (continued)
San Diego California Unified School District, GO, CAB, Election of 2008^(b):
Series C, 0.00%, 07/01/38	$	1,600	$	734,320
Series G, 0.00%, 07/01/34		650		306,390
Series G, 0.00%, 07/01/35		690		305,794
Series G, 0.00%, 07/01/36		1,035		431,284
Series G, 0.00%, 07/01/37		690		270,432
San Diego California Unified School District, GO, Refunding, Series R-1^(b):
0.00%, 07/01/30		5,000		3,313,950
0.00%, 07/01/31		1,280		811,725
San Marcos Unified School District, GO, Election of 2010, Series A^(a):
5.00%, 08/01/21		700		767,767
5.00%, 08/01/21		600		658,086
Walnut Valley Unified School District, GO, CAB, Election of 2007, Series B, 0.00%, 08/01/36^(b)		5,500		2,604,910
West Basin Municipal Water District California, COP, Refunding, Series B (AGC), 5.00%, 08/01/18^(a)		5,035		5,076,539

				48,488,058
Colorado — 0.6%
Regional Transportation District, COP, Refunding, Series A, 5.38%, 06/01/31		2,000		2,122,940

Connecticut — 0.3%
Connecticut Housing Finance Authority, Refunding RB:
S/F Housing, Sub-Series A-1, 3.85%, 11/15/43		580		572,558
Sub-Series B-1, 4.00%, 05/15/45^(d)		530		531,993

				1,104,551
District of Columbia — 1.6%
District of Columbia Ballpark Revenue, RB, Series B-1 (NPFGC), 5.00%, 02/01/31		5,360		5,370,130

Florida — 13.9%
Country of Broward Florida Airport System, ARB, AMT, 5.00%, 10/01/47		3,150		3,504,721
County of Brevard Florida Health Facilities Authority, Refunding RB, Health First, Inc. Project, 5.00%, 04/01/39		1,600		1,721,840
County of Broward Florida Water & Sewer Utility, Refunding RB, Series A, 5.25%, 10/01/18^(a)		850		862,342
County of Highlands Florida Health Facilities Authority, RB, Adventist Health System/Sunbelt Obligated Group:
6.00%, 11/15/19^(a)		5		5,308
6.00%, 11/15/37		1,445		1,539,720
County of Hillsborough Florida Aviation Authority, RB, Series A, AMT (AGC), 5.38%, 10/01/33		4,050		4,104,958
County of Lee Florida, Refunding ARB, Series A, AMT:
5.63%, 10/01/26		960		1,047,053
5.38%, 10/01/32		3,160		3,412,579
County of Miami-Dade Florida, GO, Building Better Communities Program, Series B-1, 5.75%, 07/01/18^(a)		1,400		1,409,240
County of Miami-Dade Florida, RB, Seaport:
Department, Series A, 6.00%, 10/01/38		2,025		2,317,734
Department, Series B, AMT, 6.25%, 10/01/38		415		480,126
Department, Series B, AMT, 6.00%, 10/01/42		660		754,697
Series B, AMT, 6.00%, 10/01/30		640		728,410
County of Miami-Dade Florida, Refunding RB, 4.00%, 10/01/40		885		905,311
County of Miami-Dade Florida Aviation, Refunding ARB, AMT, 5.00%, 10/01/34		190		210,032
County of Miami-Dade Florida Aviation, Refunding RB, Series B, AMT, 5.00%, 10/01/40		2,490		2,770,399


28		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

April 30, 2018

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value
Florida (continued)
County of Miami-Dade Florida Educational Facilities Authority, RB, University of Miami, Series A, 5.00%, 04/01/40	$	2,995	$	3,287,971
County of Miami-Dade Florida Health Facilities Authority, Refunding RB, Nicklaus Children’s Hospital Project, 5.00%, 08/01/42		605		668,579
County of Miami-Dade Florida School Board Foundation, Inc., COP, Series B (AGC), 5.00%, 05/01/18^(a)		9,000		9,000,000
County of Orange Florida Health Facilities Authority, Refunding RB, Presbyterian Retirement Communities Project:
5.00%, 08/01/41		560		608,826
5.00%, 08/01/47		1,620		1,756,355
County of Palm Beach Florida Solid Waste Authority, Refunding RB, Series B:
5.00%, 10/01/21^(a)		30		32,779
5.00%, 10/01/31		1,970		2,143,636
County of Putnam Florida Development Authority, Refunding RB, Seminole Project, Series A, 5.00%, 03/15/42		520		577,902
County of Sarasota Florida Public Hospital District, RB, Sarasota Memorial Hospital Project, Series A, 5.63%, 07/01/39		275		285,013
Florida Ports Financing Commission, Refunding RB, State Transportation Trust Fund, Series B, AMT:
5.13%, 06/01/27		2,000		2,165,200
5.38%, 10/01/29		1,050		1,151,776

				47,452,507
Georgia — 3.5%
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 08/15/54		500		570,935
County of LaGrange-Troup Hospital Authority, Refunding RB, Revenue Anticipation Certificates, 4.00%, 04/01/47		1,250		1,210,375
Municipal Electric Authority of Georgia, Refunding RB, Series EE (AMBAC), 7.00%, 01/01/25		7,475		9,381,424
Private Colleges & Universities Authority, RB, Savannah College of Art & Design:
5.00%, 04/01/33		140		152,453
5.00%, 04/01/44		380		408,306

				11,723,493
Illinois — 16.0%
City of Chicago Illinois O’Hare International Airport, ARB, Senior Lien, Series D, 5.25%, 01/01/42		2,900		3,280,944
City of Chicago Illinois O’Hare International Airport, GARB:
3rd Lien, Series A, 5.75%, 01/01/21^(a)		4,290		4,691,115
3rd Lien, Series A, 5.75%, 01/01/39		820		888,896
Senior Lien, Series D, AMT, 5.00%, 01/01/42		230		250,201
City of Chicago Illinois Transit Authority, RB:
5.25%, 12/01/49		900		986,850
Sales Tax Receipts, 5.25%, 12/01/36		595		636,769
County of Cook Illinois Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/37		45		47,250
Illinois Finance Authority, RB, Carle Foundation, Series A:
5.75%, 08/15/34		650		715,137
6.00%, 08/15/41		1,000		1,105,050
Illinois Finance Authority, Refunding RB, Silver Cross Hospital & Medical Centers, Series C:
4.13%, 08/15/37		740		737,521
5.00%, 08/15/44		350		368,519
Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC), 5.50%, 06/15/30		10,490		10,507,938
Illinois State Toll Highway Authority, RB, Series B, 5.00%, 01/01/37		2,785		3,109,174
Kane McHenry Cook & De Kalb Counties Unit School District No. 300, GO, Refunding, 5.25%, 01/01/33		9,145		10,138,970


Security	Par (000)		Value
Illinois (continued)
Metropolitan Pier & Exposition Authority, RB, CAB, McCormick Place Expansion Project, Series A (NPFGC)^(b):
0.00%, 12/15/26	$	5,000	$	3,435,950
0.00%, 12/15/33		9,950		4,772,119
Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM), 0.00%, 06/15/44^(b)		3,450		1,004,571
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21^(a)		675		752,476
Regional Transportation Authority, RB, Series A (AMBAC), 7.20%, 11/01/20		3,565		3,834,157
State of Illinois, GO:
5.25%, 02/01/33		830		849,339
5.50%, 07/01/33		820		848,192
5.25%, 02/01/34		830		848,501
5.50%, 07/01/38		445		458,043

				54,267,682
Indiana — 1.2%
Indiana Finance Authority, RB, Series A:
CWA Authority Project, 1st Lien, 5.25%, 10/01/38		1,100		1,199,506
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44		515		548,423
Indiana Health & Educational Facilities Financing Authority, Refunding RB, Ascension Senior Credit Group, 5.00%, 11/15/46		700		791,784
Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC):
5.25%, 01/01/19^(a)		115		117,650
5.25%, 01/01/29		485		495,752
State of Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 07/01/40		890		949,924

				4,103,039
Iowa — 2.8%
Iowa Finance Authority, RB, Iowa Health Care Facilities, Series A (AGC), 5.63%, 08/15/19^(a)		5,725		5,992,243
Iowa Student Loan Liquidity Corp., RB, Senior Series A-2, AMT:
5.60%, 12/01/26		1,630		1,704,083
5.70%, 12/01/27		735		764,834
5.80%, 12/01/29		500		519,855
5.85%, 12/01/30		520		540,972

				9,521,987
Louisiana — 1.7%
City of New Orleans Louisiana Aviation Board, ARB, Series B, AMT, 5.00%, 01/01/40		2,795		3,019,718
Louisiana Public Facilities Authority, Refunding RB, Christus Health, Series B (AGC), 6.50%, 07/01/30		1,250		1,285,600
State of Louisiana Gasoline & Fuels Tax Revenue, Refunding RB, First Lien, Series A, 4.00%, 05/01/41		1,520		1,546,950

				5,852,268
Maine — 0.2%
Maine State Housing Authority, RB, Series D-1, 3.65%, 11/15/42		645		625,631

Maryland — 0.4%
State of Maryland Stadium Authority Revenue, RB, Construction & Revitalization, 5.00%, 05/01/36		1,235		1,410,284

Massachusetts — 2.3%
Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A, 5.00%, 01/01/47		2,090		2,252,769
Massachusetts Development Finance Agency, Refunding RB, Partners Health Care System, 4.00%, 07/01/41		920		930,267


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (continued)

April 30, 2018

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value
Massachusetts (continued)
Massachusetts HFA, Refunding RB, AMT:
Series A, 4.45%, 12/01/42	$	795	$	821,490
Series C, 5.35%, 12/01/42		460		468,317
Massachusetts Port Authority, Refunding ARB, Series A, AMT, 5.00%, 07/01/47		1,720		1,912,141
Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior Series A, 5.00%, 05/15/43		1,280		1,406,989

				7,791,973
Michigan — 2.7%
City of Detroit Michigan Sewage Disposal System, Refunding RB, 2nd Lien, Series E (BHAC), 5.75%, 07/01/18^(a)		2,500		2,516,075
City of Detroit Michigan Water Supply System Revenue, RB, 2nd Lien, Series B (AGM), 6.25%, 07/01/19^(a)		400		419,828
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 07/01/41		1,700		1,860,667
Michigan Finance Authority, Refunding RB:
Henry Ford Health System, 3.25%, 11/15/42		460		395,375
Trinity Health Credit Group, 5.00%, 12/01/21^(a)		20		21,925
Michigan State Hospital Finance Authority, Refunding RB, Ascension Senior Credit Group, 4.00%, 11/15/47		600		603,012
Royal Oak Hospital Finance Authority Michigan, Refunding RB, Beaumont Health Credit Group, Series D, 5.00%, 09/01/39		1,040		1,126,715
State of Michigan Building Authority, Refunding RB, Facilities Program:
Series I-A, 5.38%, 10/15/36		145		159,716
Series I-A, 5.38%, 10/15/41		700		766,899
Series II-A (AGM), 5.25%, 10/15/36		900		987,633
Western Michigan University, Refunding RB, General, University and College Improvements (AGM), 5.00%, 11/15/39		380		420,949

				9,278,794
Minnesota — 0.8%
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC):
6.50%, 11/15/18^(a)		385		394,671
6.50%, 11/15/38		2,115		2,167,664

				2,562,335
Mississippi — 0.1%
Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Facilities Refinancing, Series A, 4.00%, 08/01/43		400		408,992

Nebraska — 1.8%
Central Plains Nebraska Energy Project, RB, Gas Project No. 3:
5.00%, 09/01/32		5,010		5,454,237
5.25%, 09/01/37		750		824,100

				6,278,337
Nevada — 1.6%
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 04/01/19^(a)		850		881,883
County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A:
5.25%, 07/01/42		500		525,020
(AGM), 5.25%, 07/01/39		3,800		3,992,052

				5,398,955
New Jersey — 8.8%
New Jersey EDA, RB:
Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 01/01/43		895		975,219
Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.13%, 01/01/34		685		745,383
School Facilities Construction (AGC), 6.00%, 12/15/18^(a)		1,975		2,025,955


Security	Par (000)		Value
New Jersey (continued)
School Facilities Construction (AGC), 6.00%, 12/15/18^(a)	$	25	$	25,653
Series WW, 5.25%, 06/15/33		155		166,794
Series WW, 5.00%, 06/15/34		205		216,154
Series WW, 5.00%, 06/15/36		925		974,164
Series WW, 5.25%, 06/15/40		265		282,628
New Jersey EDA, Refunding RB:
Series B, 5.50%, 06/15/30		5,360		6,078,937
Sub-Series A, 4.00%, 07/01/32		1,270		1,260,450
New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT:
5.50%, 12/01/26		360		382,154
5.75%, 12/01/27		2,330		2,500,859
New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT, 4.35%, 11/01/33		970		998,334
New Jersey Transportation Trust Fund Authority, RB:
Transportation Program, Series AA, 5.25%, 06/15/33		1,490		1,579,623
Transportation Program, Series AA, 5.00%, 06/15/38		1,885		1,970,730
Transportation System, Series A, 5.50%, 06/15/41		3,150		3,286,174
Transportation System, Series AA, 5.50%, 06/15/39		1,150		1,228,533
Transportation System, Series B, 5.50%, 06/15/31		1,000		1,059,180
Transportation System, Series B, 5.00%, 06/15/42		520		534,778
Transportation System, Series D, 5.00%, 06/15/32		735		779,975
South Jersey Port Corp., ARB, Marine Terminal, Series B, AMT, 5.00%, 01/01/42		390		416,789
Tobacco Settlement Financing Corp., Refunding RB, Series A:
5.00%, 06/01/46		1,845		1,991,991
5.25%, 06/01/46		405		449,805

				29,930,262
New York — 6.2%
City of New York New York Municipal Water Finance Authority, Refunding RB, Second General Resolution, Fiscal 2012, Series BB, 5.25%, 06/15/44		1,425		1,568,583
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-4, 5.50%, 01/15/33		1,600		1,641,456
City of New York New York Transitional Finance Authority, RB:
Fiscal 2009, Series S-4, 5.50%, 01/15/34		2,750		2,821,060
Series S-3, 4.00%, 07/15/46		1,130		1,152,758
City of New York New York Transitional Finance Authority, Refunding RB, Future Tax Secured, Series B, 5.00%, 11/01/32		1,480		1,634,468
Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:
5.75%, 02/15/21^(a)		430		473,348
5.75%, 02/15/47		270		291,946
Metropolitan Transportation Authority, RB, Series C:
6.50%, 11/15/18^(a)		2,985		3,060,132
6.50%, 11/15/18^(a)		245		251,167
6.50%, 11/15/28		770		789,673
New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT, 5.25%, 01/01/50		2,715		2,935,567
State of New York Dormitory Authority, RB, Series B, 5.75%, 03/15/19^(a)		1,200		1,241,100
State of New York HFA, RB, M/F Housing, Series B:
Affordable Housing, AMT, 5.30%, 11/01/37		2,500		2,502,700
Green Bond, 3.88%, 11/01/48		590		587,380

				20,951,338
Ohio — 2.2%
County of Allen Ohio Hospital Facilities Revenue, Refunding RB, Series A, 4.00%, 08/01/38		1,565		1,566,174
County of Butler Ohio, Refunding RB, UC Health, 4.00%, 11/15/37		460		462,898
County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/21^(a)		530		606,537


30		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

April 30, 2018

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value
Ohio (continued)
State of Ohio Turnpike Commission, RB, CAB, Junior Lien, Infrastructure Projects, Series A-2, 0.00%, 02/15/37^(b)	$	10,000	$	4,804,800

				7,440,409
Oregon — 1.5%
Counties of Washington & Multnomah Oregon School District No. 48J Beaverton, GO, Convertible CAB, Series D, 0.00%, 06/15/36^(c)		835		942,456
County of Clackamas Oregon Community College District, GO, Convertible Deferred Interest Bonds, Series A, 0.00%, 06/15/40^(c)		440		448,021
County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 06/15/38^(b)		995		429,651
State of Oregon, GO, Refunding, Veteran’s Welfare Series 100th, 3.65%, 06/01/42		610		596,574
State of Oregon Housing & Community Services Department, RB, Series D, 3.45%, 01/01/38		2,815		2,724,864

				5,141,566
Pennsylvania — 8.8%
Commonwealth Financing Authority, RB:
Series B, 5.00%, 06/01/42		1,600		1,708,672
Tobacco Master Settlement Payment, 5.00%, 06/01/33		220		246,037
Tobacco Master Settlement Payment, 5.00%, 06/01/34		390		433,364
Tobacco Master Settlement Payment, 5.00%, 06/01/35		740		820,312
Tobacco Master Settlement Payment (AGM), 4.00%, 06/01/39		1,050		1,053,434
County of Berks IDA, Refunding RB, Tower Health Project, 4.00%, 11/01/39		320		320,000
County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49		645		634,770
Pennsylvania Economic Development Financing Authority, RB:
AMT, 5.00%, 06/30/42		1,035		1,107,895
PA Bridges Finco LP, AMT, 5.00%, 12/31/34		7,290		7,914,534
Pennsylvania Bridge Finco LP, 5.00%, 12/31/38		1,305		1,405,394
Pennsylvania Economic Development Financing Authority, Refunding RB, Series A, 4.00%, 11/15/42		570		575,404
Pennsylvania Higher Educational Facilities Authority, Refunding RB, Thomas Jefferson University, Series A, 5.25%, 09/01/50		2,330		2,572,739
Pennsylvania Turnpike Commission, RB:
Series A, 5.00%, 12/01/38		620		678,032
Series A-1, 5.00%, 12/01/41		2,385		2,627,793
Series B, 5.00%, 12/01/40		935		1,030,267
Series C, 5.50%, 12/01/23^(a)		555		644,350
Sub-Series B-1, 5.00%, 06/01/42		1,750		1,909,950
Subordinate, Special Motor License Fund, 6.00%, 12/01/20^(a)		575		631,333
Pennsylvania Turnpike Commission, Refunding RB:
Motor Licensed Fund Enhancement, Third Series, 4.00%, 12/01/38		2,070		2,092,977
Series A-1, 5.00%, 12/01/40		765		840,926
Philadelphia School District, GO, Refunding, Series F, 5.00%, 09/01/38		305		335,021
Philadelphia School District, GO, Series E^(a):
6.00%, 09/01/18		5		5,069
6.00%, 09/01/18		395		400,494

				29,988,767
Rhode Island — 1.1%
Tobacco Settlement Financing Corp., Refunding RB, Series B:
4.50%, 06/01/45		1,055		1,065,803
5.00%, 06/01/50		2,630		2,694,461

				3,760,264


Security	Par (000)		Value
South Carolina — 4.9%
South Carolina Jobs EDA, Refunding RB, Palmetto Health, Series A (AGM), 6.50%, 08/01/21^(a)	$	115	$	130,063
South Carolina Transportation Infrastructure Bank, RB, Series A, 5.25%, 10/01/19^(a)		3,000		3,137,340
State of South Carolina Ports Authority, RB, AMT, 5.25%, 07/01/50		2,330		2,573,858
State of South Carolina Public Service Authority, RB, Santee Cooper:
Series A, 5.50%, 12/01/54		6,225		6,794,525
Series E, 5.50%, 12/01/53		745		812,422
State of South Carolina Public Service Authority, Refunding RB:
Santee Cooper, Series B, 5.00%, 12/01/38		2,080		2,216,240
Series A, 5.50%, 01/01/19^(a)		80		81,948
Series A, 5.50%, 01/01/19^(a)		920		941,786

				16,688,182
South Dakota — 1.3%
South Dakota Health & Educational Facilities Authority, Refunding RB, Avera Health Issue:
4.00%, 07/01/37		1,225		1,239,026
4.00%, 07/01/42		3,000		3,018,210

				4,257,236
Tennessee — 2.1%
Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, Refunding RB, Vanderbilt University, Series B, 5.50%, 10/01/19^(a)		5,000		5,253,450
Tennessee Housing Development Agency, RB:
3.60%, 07/01/42		550		533,538
3.65%, 07/01/47		1,465		1,416,362

				7,203,350
Texas — 14.9%
City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC):
5.38%, 05/15/19^(a)		1,280		1,325,414
6.00%, 05/15/19^(a)		1,990		2,073,301
6.00%, 11/15/35		110		114,720
5.38%, 11/15/38		70		72,403
City of San Antonio Texas Electric & Gas Revenue, RB, Junior Lien, 5.00%, 02/01/38		575		624,444
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 09/15/36^(b)		2,130		990,045
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Cook Children’s Medical Center, 5.25%, 12/01/39		750		827,985
Dallas Texas Area Rapid Transit, Refunding RB, Series A, 5.00%, 12/01/48		3,160		3,513,130
Dallas-Fort Worth International Airport, ARB, Joint Improvement, AMT:
Series D, 5.00%, 11/01/38		1,975		2,108,609
Series D, 5.00%, 11/01/42		1,500		1,598,385
Series H, 5.00%, 11/01/32		3,000		3,223,590
Dallas-Fort Worth International Airport, Refunding ARB, Series F, 5.25%, 11/01/33		975		1,098,045
Grand Parkway Transportation Corp., RB, Convertible CAB, Series B, 0.00%, 10/01/46^(c)		2,095		1,914,222
Leander ISD, GO, Refunding, CAB, Series D (PSF-GTD), 0.00%, 08/15/38^(b)		3,420		1,400,319
North Texas Tollway Authority, Refunding RB, 1st Tier:
System, Series A, 6.00%, 01/01/19^(a)		2,270		2,331,948
System, Series A, 6.00%, 01/01/28		525		538,445
System, Series K-2 (AGC), 6.00%, 01/01/19^(a)		4,015		4,125,934
Series K-1 (AGC), 5.75%, 01/01/19^(a)		3,800		3,898,762


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (continued)

April 30, 2018

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value
Texas (continued)
San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing & Expansion Project, CAB^(b):
0.00%, 09/15/35	$	4,990	$	2,271,897
0.00%, 09/15/36		11,525		4,944,571
0.00%, 09/15/37		8,245		3,327,270
San Antonio Water System, Refunding RB, Junior Lien, Series A, 5.00%, 05/15/48^(d)		1,355		1,540,500
Texas Municipal Gas Acquisition & Supply Corp. III, RB, Natural Gas Utility Improvements:
5.00%, 12/15/31		1,190		1,288,711
5.00%, 12/15/32		705		761,901
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, AMT, Blueridge Transportation Group, 5.00%, 12/31/45		1,275		1,376,720
Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A, 5.00%, 08/15/41		3,080		3,311,770

				50,603,041
Utah — 1.1%
Salt Lake City Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/42		1,240		1,381,596
Utah Transit Authority, RB, Series A (AGM), 5.00%, 06/15/18^(a)		2,500		2,509,650

				3,891,246
Virginia — 0.1%
County of Fairfax Virginia IDA, Refunding RB, Health Care-Inova Health^(a):
5.50%, 05/15/19		125		129,594
5.50%, 05/15/19		225		233,388

				362,982
Washington — 1.2%
Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40		1,015		1,094,505
Washington Health Care Facilities Authority, RB, Providence Health & Services, Series A:
5.00%, 10/01/39		525		548,163
5.25%, 10/01/39		625		657,031
Washington Health Care Facilities Authority, Refunding RB, Multicare Health System, Series B, 4.00%, 08/15/41		1,835		1,863,167

				4,162,866
Wisconsin — 1.5%
State of Wisconsin Health & Educational Facilities Authority, RB:
Ascension Health Senior Credit Group, Series E, 5.00%, 11/15/33		1,375		1,434,097
Marshfield Clinic Health System, Inc. Series C, 4.00%, 02/15/42		1,450		1,432,383
State of Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert Health, Inc. Obligated Group, 4.00%, 04/01/39		2,205		2,198,738

				5,065,218

Total Municipal Bonds — 124.9% (Cost — $399,221,333)				424,881,524


Municipal Bonds Transferred to Tender Option Bond Trusts^(e)

Arizona — 0.4%
City of Phoenix Civic Improvement Corp., Refunding RB, Water System, Junior Lien, Series A, 5.00%, 07/01/19^(a)		1,200		1,243,026

California — 2.9%
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge Subordinate, 4.00%, 04/01/47^(f)		3,827		3,939,316


Security	Par (000)		Value
California (continued)
County of San Diego California Water Authority Financing Corp., COP, Refunding Series A (AGM)^(a):
5.00%, 05/01/18	$	466	$	466,179
5.00%, 05/01/18		2,344		2,343,821
Los Angeles California Unified School District, GO, Election of 2008, Series B-1, 5.25%, 07/01/42^(f)		1,571		1,863,581
San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19^(a)		404		420,986
University of California, RB, Series O, 5.75%, 05/15/19^(a)		840		874,089

				9,907,972
Colorado — 2.4%
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A:
5.50%, 07/01/34^(f)		900		928,251
5.00%, 02/01/41		7,000		7,281,505

				8,209,756
Connecticut — 0.4%
State of Connecticut Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45		1,381		1,534,439

District of Columbia — 1.6%
District of Columbia, RB, Series A, 5.50%, 12/01/30^(f)		1,005		1,059,892
District of Columbia Water & Sewer Authority, Refunding RB, Series A, 6.00%, 10/01/18^(a)(f)		1,779		1,809,176
Metropolitan Washington Airports Authority, Refunding ARB, Series A, AMT, 5.00%, 10/01/30		2,530		2,753,854

				5,622,922
Florida — 4.8%
County of Miami-Dade Florida Transit System, Refunding RB, Sales Tax, 5.00%, 07/01/42		4,480		4,834,167
County of Miami-Dade Florida Water & Sewer System, RB, (AGM), 5.00%, 10/01/20^(a)		4,621		4,942,771
County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 08/01/19^(a)		3,544		3,701,767
South Miami Health Facilities Authority, Refunding RB, Baptist Health South Florida, 5.00%, 08/15/47		2,640		2,933,814

				16,412,519
Illinois — 3.2%
State of Illinois, RB, Build Illinois, Series B, 5.25%, 06/15/19^(a)(f)		4,399		4,561,300
State of Illinois Toll Highway Authority, RB:
Series A, 5.00%, 01/01/38		2,138		2,328,734
Series A, 5.00%, 01/01/40		2,730		3,007,804
Series B, 5.00%, 01/01/40		1,050		1,164,141

				11,061,979
Kansas — 1.6%
County of Wyandotte Kansas Unified School District, GO, Series A, 5.50%, 09/01/47		4,723		5,575,843

Maryland — 1.3%
City of Baltimore Maryland Water Utility Fund, RB, Series A:
Sub-Water Projects, 5.00%, 07/01/41		2,808		3,149,446
Wastewater Project, 5.00%, 07/01/46		1,061		1,186,984

				4,336,430
Massachusetts — 0.5%
Commonwealth of Massachusetts, GO, Series A, 5.00%, 03/01/46		1,461		1,610,701

Michigan — 3.3%
Michigan Finance Authority, RB, Beaumont Health Credit Group, Series A, 5.00%, 11/01/44		1,970		2,150,257


32		2018 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

April 30, 2018

BlackRock MuniEnhanced Fund, Inc. (MEN)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value
Michigan (continued)
Michigan Finance Authority, Refunding RB, Hospital, Trinity Health Credit Group, 5.00%, 12/01/39	$	7,530	$	8,146,632
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 5.00%, 10/15/45		870		965,500

				11,262,389
Nevada — 5.3%
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 04/01/19^(a)(f)		3,778		3,916,695
County of Clark Nevada, GOL, Stadium Improvement, Series A, 5.00%, 06/01/38		3,061		3,502,738
County of Clark Nevada Water Reclamation District, GO, Series B^(a):
5.50%, 07/01/19		4,499		4,681,940
5.75%, 07/01/19		1,829		1,909,096
Las Vegas Valley Water District Nevada, GO, Refunding, Water Improvement, Series A, 5.00%, 06/01/46		3,460		3,879,343

				17,889,812
New Jersey — 2.2%
County of Hudson New Jersey Improvement Authority, RB, Hudson County Vocational-Technical Schools Project, 5.25%, 05/01/51		800		901,678
New Jersey State Turnpike Authority, Refunding RB:
Series B, 4.00%, 01/01/37		2,308		2,396,567
Series G, 4.00%, 01/01/43		2,146		2,203,346
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 06/15/36^(f)		1,840		1,913,753

				7,415,344
New York — 6.6%
City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009, Series A:
5.75%, 06/15/18^(a)		290		290,756
5.75%, 06/15/40		969		972,300
City of New York New York Transitional Finance Authority, RB, Future Tax, Sub-Series A-3, 5.00%, 08/01/40^(f)		3,058		3,482,861
City of New York New York Water & Sewer System, Refunding RB:
2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 06/15/47		5,680		6,233,787
Series DD, 5.00%, 06/15/35		1,665		1,857,585
Metropolitan Transportation Authority, RB, Transportation, Sub-Series D-1, 5.25%, 11/15/44		3,470		3,911,506
Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56		1,500		1,689,762
Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 198th Series, 5.25%, 11/15/56		2,241		2,552,670
Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.25%, 11/15/34^(f)		1,300		1,324,356

				22,315,583
Ohio — 1.1%<