UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-05739
Name of Fund: BlackRock MuniEnhanced Fund, Inc. (MEN)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive Officer,
BlackRock MuniEnhanced Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ
08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011
Registrant's telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 01/31/2008
Date of reporting period: 08/01/2007 - 10/31/2007
Item 1 - Schedule of Investments
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
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Alabama - 2.0% $ 2,750 Jefferson County, Alabama, Limited Obligation School Warrants, Series A,
5.50% due 1/01/2022 $ 2,945
2,200 Jefferson County, Alabama, Limited Obligation School Warrants, Series A,
4.75% due 1/01/2025 2,219
1,400 University of Alabama, General Revenue Bonds, Series A, 5% due 7/01/2034 (f) 1,432
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Arizona - 0.8% 2,640 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds,
5% due 12/01/2037 2,525
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California - 30.9% 10,000 Alameda Corridor Transportation Authority, California, Capital Appreciation
Revenue Refunding Bonds, Subordinate Lien, Series A, 5.464% due 10/01/2024 (a)(m) 8,386
6,000 Alameda Corridor Transportation Authority, California, Capital Appreciation
Revenue Refunding Bonds, Subordinate Lien, Series A, 5.495% due 10/01/2025 (a)(m) 5,029
950 Anaheim, California, Public Financing Authority, Electric System Distribution
Facilities Revenue Bonds, Series A, 5% due 10/01/2031 (d) 979
5,000 Anaheim, California, Public Financing Authority, Lease Revenue Bonds (Public
Improvements Project), Senior Series A, 6% due 9/01/2024 (d) 5,946
600 Antelope Valley, California, Community College District, GO (Election of 2004),
Series B, 5.25% due 8/01/2039 (f) 637
1,600 Arcadia, California, Unified School District, Capital Appreciation, GO (Election
of 2006), Series A, 4.96% due 8/01/2039 (d)(m) 312
2,400 Cabrillo, California, Community College District, GO (Election of 2004), Series B,
5.20% due 8/01/2037 (f)(m) 518
2,350 California State, GO, Refunding, 5.25% due 9/01/2010 (g) 2,466
4,940 California State, GO, Refunding, 5.125% due 6/01/2011 (g) 5,222
20 California State, GO, Refunding, 5.125% due 6/01/2027 21
60 California State, GO, Refunding, 5.125% due 6/01/2031 62
4,400 California State, GO, Refunding, 5.25% due 2/01/2033 (i) 4,548
4,300 California State, GO, Refunding, 5% due 6/01/2037 (c) 4,439
1,900 California State Public Works Board, Lease Revenue Bonds (Department of
Corrections), Series C, 5% due 6/01/2025 1,938
2,600 California State University, Systemwide Revenue Bonds, Series A, 5%
due 11/01/2035 (b) 2,671
Portfolio Abbreviations
To simplify the listings of BlackRock MuniEnhanced Fund, Inc.'s portfolio
holdings in the Schedule of Investments, we have abbreviated the names of many
of the securities according to the list below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
--------------------------------------------------------------------------------------------------------------------------------
$ 8,490 California State, Various Purpose, GO, 5.50% due 11/01/2033 $ 8,973
850 Chino Valley, California, Unified School District, GO (Election of 2002),
Series C, 5.25% due 8/01/2030 (f) 900
1,600 East Side Union High School District, California, Santa Clara County, GO
(Election of 2002), Series D, 5% due 8/01/2026 (c) 1,673
900 Fresno, California, Unified School District, GO (Election of 2001), Series E,
5% due 8/01/2030 (d) 938
2,835 Golden State Tobacco Securitization Corporation of California, Tobacco
Settlement Revenue Bonds, Series B, 5.50% due 6/01/2013 (c)(g) 3,104
3,000 Golden State Tobacco Securitization Corporation of California, Tobacco
Settlement Revenue Bonds, Series B, 5.625% due 6/01/2013 (g)(k) 3,303
5,300 Los Angeles, California, Department of Water and Power, Waterworks Revenue
Bonds, Series C, 5% due 7/01/2029 (f) 5,485
2,965 Metropolitan Water District of Southern California, Waterworks Revenue Bonds,
Series B-1, 5% due 10/01/2029 (b) 3,069
1,655 Metropolitan Water District of Southern California, Waterworks Revenue Bonds,
Series B-1, 5% due 10/01/2036 (b) 1,699
5,000 Norco, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Norco
Redevelopment Project - Area Number 1), 5.125% due 3/01/2030 (f) 5,156
7,455 Orange County, California, Sanitation District, COP, 5% due 2/01/2033 (b) 7,589
1,750 Poway, California, Redevelopment Agency, Tax Allocation Refunding Bonds (Paguay
Redevelopment Project), 5.125% due 6/15/2033 (a) 1,798
3,850 Sacramento, California, Unified School District, GO (Election of 2002),
5% due 7/01/2030 (f) 3,996
1,100 Southern California Public Power Authority, Natural Gas Project Number 1, Revenue
Bonds, Series A, 5% due 11/01/2028 1,079
6,145 Stockton, California, Public Financing Authority, Lease Revenue Bonds (Parking &
Capital Projects), 5.125% due 9/01/2030 (b) 6,354
1,600 Tamalpais, California, Union High School District, GO (Election of 2001),
5% due 8/01/2028 (d) 1,655
2,325 Ventura County, California, Community College District, GO (Election of 2002),
Series B, 5% due 8/01/2030 (f) 2,414
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Colorado - 8.4% 2,135 Boulder County, Colorado, Hospital Development Revenue Bonds (Longmont United
Hospital Project), 5.75% due 12/01/2010 (g)(i) 2,274
25 Colorado HFA, Revenue Bonds (S/F Program), AMT, Senior Series A-1, 7.40%
due 11/01/2027 25
530 Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series A-2, 7.50%
due 4/01/2031 547
1,200 Colorado Health Facilities Authority Revenue Bonds (Catholic Health Initiatives),
Series A, 5.50% due 3/01/2032 (h) 1,275
1,200 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement
Communities Inc.), Series A, 5.50% due 12/01/2027 (i) 1,230
675 Colorado Health Facilities Authority Revenue Bonds (Covenant Retirement
Communities Inc.), Series A, 5.50% due 12/01/2033 (i) 687
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
--------------------------------------------------------------------------------------------------------------------------------
$ 3,875 Colorado Water Resources and Power Development Authority, Clean Water Revenue
Bonds, Series A, 6.25% due 9/01/2010 (g) $ 4,168
2,000 Denver, Colorado, City and County Airport Revenue Refunding Bonds, AMT,
Series A, 6% due 11/15/2018 (a) 2,104
5,450 El Paso County, Colorado, School District Number 49, Falcon, GO, Series A,
6% due 12/01/2009 (d)(g) 5,982
7,900 Northwest Parkway Public Highway Authority, Colorado, Capital Appreciation
Revenue Bonds, Senior Convertible, Series C, 5.345% due 6/15/2025 (d)(m) 7,310
1,900 Northwest Parkway Public Highway Authority, Colorado, Revenue Bonds, Series A,
5.50% due 6/15/2021 (a) 2,033
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District of Columbia - 1,600 District of Columbia, GO, Series A, 4.75% due 6/01/2036 (b) 1,600
0.5%
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Florida - 1.7% 3,600 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Adventist Health System), Series C, 5.25% due 11/15/2036 3,673
2,000 Highlands County, Florida, Health Facilities Authority, Hospital Revenue
Refunding Bonds (Adventist Health System), Series G, 5.125% due 11/15/2032 2,018
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Georgia - 12.6% 17,355 Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series B, 5.25%
due 1/01/2033 (d) 18,086
2,900 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5% due 11/01/2034 (d) 2,974
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5% due 11/01/2033 (f) 1,018
4,250 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series A, 5% due 11/01/2039 (f) 4,313
2,300 Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25% due 10/01/2039 (d) 2,400
2,500 Fulton County, Georgia, Water and Sewer Revenue Bonds, 5.25% due 1/01/2035 (b) 2,604
7,725 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds, Series EE, 7%
due 1/01/2025 (a) 10,182
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Illinois - 15.0% 5,670 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien, AMT,
Series B-2, 5.75% due 1/01/2023 (d) 6,060
2,500 Chicago, Illinois, O'Hare International Airport Revenue Bonds, Third Lien, AMT,
Series B-2, 6% due 1/01/2029 (c) 2,704
2,460 Cook County, Illinois, Capital Improvement, GO, Series C, 5.50% due 11/15/2012 (a)(g) 2,681
20,120 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds, 5.341%
due 6/15/2030 (a)(m) 18,919
4,500 Illinois Sports Facilities Authority, State Tax Supported Revenue Bonds, 5%
due 6/15/2032 (a) 4,606
2,000 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue
Refunding Bonds (McCormick Place Expansion Project), Series B, 5.75% due
6/15/2023 (f) 2,169
10,115 Regional Transportation Authority, Illinois, Revenue Bonds, Series A, 7.20% due
11/01/2020 (a) 12,371
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Louisiana - 6.7% 4,500 Lafayette, Louisiana, Utilities Revenue Bonds, 5% due 11/01/2028 (f) 4,650
3,600 Louisiana Local Government Environmental Facilities and Community Development
Authority, Revenue Bonds (Capital Projects and Equipment Acquisition), Series A,
6.30% due 7/01/2030 (a) 4,231
2,035 Louisiana State Citizens Property Insurance Corporation, Assessment Revenue Bonds,
Series B, 5% due 6/01/2023 (a) 2,120
4,950 Louisiana State, Gas and Fuels Tax Revenue Bonds, Series A, 4.75% due 5/01/2039 (d) 4,953
3,735 Louisiana State Transportation Authority, Senior Lien Toll Revenue Capital
Appreciation Bonds, Series B, 5.31% due 12/01/2027 (a)(m) 1,318
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
--------------------------------------------------------------------------------------------------------------------------------
$ 3,650 Rapides Financing Authority, Louisiana, Revenue Bonds (Cleco Power LLC Project)
AMT, 4.70% due 11/01/2036 (a) $ 3,432
1,400 Terrebonne Parish, Louisiana, Hospital Service District Number 1, Hospital Revenue
Bonds (Terrebonne General Medical Center Project), 5.50% due 4/01/2033 (a) 1,494
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Massachusetts - 6.8% 2,600 Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds,
Senior Series A-2, 5.12% due 7/01/2035 (m) 645
1,600 Massachusetts State, HFA, S/F Housing Revenue Bonds, AMT, Series 128, 4.80%
due 12/01/2027 (d) 1,552
2,000 Massachusetts State Health and Educational Facilities Authority Revenue Bonds
(Lahey Clinic Medical Center), Series D, 5.25% due 8/15/2037 2,030
8,800 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds,
Series A, 5% due 8/15/2030 (d) 9,133
7,500 Massachusetts State Special Obligation Dedicated Tax Revenue Bonds,
5.25% due 1/01/2014 (b)(g) 8,144
950 Massachusetts State Water Resource Authority, General Revenue Refunding Bonds,
Series B, 5.125% due 8/01/2027 (f) 994
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Michigan - 3.6% 1,900 Detroit, Michigan, Sewage Disposal System, Second Lien Revenue Bonds, Series B, 5%
due 7/01/2036 (b) 1,954
1,700 Michigan Higher Education Student Loan Authority, Student Loan Revenue Refunding
Bonds, AMT, Series XVII-G, 5.20% due 9/01/2020 (a) 1,751
1,300 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company Pollution Control Project), AMT, Series A, 5.50% due
6/01/2030 (c) 1,355
2,500 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company Pollution Control Project), AMT, Series C, 5.65% due
9/01/2029 (c) 2,589
4,300 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company Pollution Control Project), AMT, Series C, 5.45% due
12/15/2032 (c) 4,432
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Minnesota - 0.9% 3,083 Dakota County, Minnesota, Community Development Agency, S/F Mortgage Revenue
Bonds (Mortgage-Backed Securities Program), Series B, 5.15% due 12/01/2038 (n)(o) 3,083
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Mississippi - 0.8% 2,400 Walnut Grove, Mississippi, Correctional Authority, COP, 6% due 11/01/2009 (a)(g) 2,563
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Nebraska - 0.5% 1,700 Washington County, Nebraska, Wastewater Facilities Revenue Bonds (Cargill Inc.
Project), AMT, 5.90% due 11/01/2027 1,812
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Nevada - 4.3% 3,100 Carson City, Nevada, Hospital Revenue Bonds (Carson-Tahoe Hospital Project),
Series A, 5.50% due 9/01/2033 (i) 3,160
1,500 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2, 5%
due 7/01/2030 (b) 1,541
3,200 Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds, Series A-2, 5%
due 7/01/2036 (b) 3,269
5,060 Clark County, Nevada, IDR (Southwest Gas Corporation Project), AMT, Series A, 4.75%
due 9/01/2036 (b) 4,808
1,300 Clark County, Nevada, IDR (Southwest Gas Corporation Project), AMT, Series D, 5.25%
due 3/01/2038 (b) 1,328
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New Hampshire - 2.4% 7,390 New Hampshire Health and Education Facilities Authority Revenue Bonds
(Dartmouth-Hitchcock Obligation Group), 5.50% due 8/01/2027 (d) 7,832
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BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
--------------------------------------------------------------------------------------------------------------------------------
New Jersey - 7.6% $ 700 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 $ 721
1,165 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2034 1,224
2,600 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5% due
7/01/2029 (f) 2,689
9,325 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due
7/01/2031 (f) 9,806
5,200 New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A, 5.25% due
7/01/2033 (f) 5,462
4,960 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O, 5.125%
due 3/01/2028 5,170
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New York - 1.5% 2,250 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds,
Series A, 5% due 11/15/2032 (b) 2,312
2,400 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1,
5.25% due 6/01/2022 (a) 2,545
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Ohio - 0.6% 2,200 Ohio State Air Quality Development Authority Revenue Bonds (Dayton Power and
Light Company Project), 4.80% due 9/01/2036 (b) 2,114
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Pennsylvania - 4.1% 1,500 Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 99A, 5.25%
due 10/01/2032 1,515
2,000 Pennsylvania State Public School Building Authority, School Lease Revenue Bonds
(The School District of Philadelphia Project), 5% due 6/01/2013 (d)(g) 2,143
6,500 Philadelphia, Pennsylvania, Authority for Industrial Development, Lease Revenue
Bonds, Series B, 5.50% due 10/01/2011 (d)(g) 7,021
2,650 Philadelphia, Pennsylvania, Gas Works Revenue Refunding Bonds, 1998 General
Ordinance, 7th Series, 5% due 10/01/2032 (a) 2,729
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Rhode Island - 2.5% 4,345 Providence, Rhode Island, Public Building Authority, General Revenue Bonds,
Series A, 6.25% due 12/15/2010 (d)(g) 4,741
3,355 Rhode Island State Economic Development Corporation, Airport Revenue Bonds,
Series B, 6.50% due 7/01/2010 (b)(g) 3,645
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South Carolina - 4.8% 3,800 Berkeley County, South Carolina, School District, Installment Lease Revenue
Bonds (Securing Assets for Education Project), 5.125% due 12/01/2030 3,879
2,365 Kershaw County, South Carolina, Public Schools Foundation, Installment Power
Revenue Refunding Bonds, 5% due 12/01/2029 (k) 2,445
9,200 Scago Educational Facilities Corporation for Pickens County School District,
South Carolina, Revenue Bonds, 5% due 12/01/2031 (d) 9,443
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South Dakota - 1.9% 6,180 South Dakota State Health and Educational Facilities Authority Revenue Refunding
Bonds, Series A, 7.625% due 1/01/2008 (f)(g) 6,221
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Tennessee - 1.6% 6,500 Knox County, Tennessee, Health, Educational and Housing Facilities Board, Hospital
Facilities Revenue Refunding Bonds (Covenant Health), Series A, 5.039% due
1/01/2038 (m) 1,272
1,860 Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series A, 5.25%
due 9/01/2026 1,871
2,280 Tennessee HDA, Revenue Refunding Bonds (Homeownership Program), AMT, Series 1, 5.95%
due 7/01/2012 (f) 2,280
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Texas - 7.6% 9,345 Leander, Texas, Independent School District, Capital Appreciation, GO, Refunding
(School Building), 5.49% due 8/15/2029 (b)(m) 2,953
10,000 Leander, Texas, Independent School District, Capital Appreciation, GO,
Refunding (School Building), 5.58% due 8/15/2035 (m) 2,231
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Value
--------------------------------------------------------------------------------------------------------------------------------
$ 4,475 Lewisville, Texas, Independent School District, Capital Appreciation and
School Building, GO, Refunding, 4.67% due 8/15/2024 (b)(m) $ 1,959
2,500 Matagorda County, Texas, Navigation District Number 1, PCR, Refunding (Central
Power and Light Company Project), AMT, 5.20% due 5/01/2030 (f) 2,576
5,820 North Harris County, Texas, Regional Water Authority, Senior Lien Revenue Bonds,
5.125% due 12/15/2035 (f) 6,015
900 North Texas Thruway Authority, Dallas North Thruway System Revenue Bonds,
Series A, 5% due 1/01/2035 (d) 922
1,595 Texas State Affordable Housing Corporation, S/F Mortgage Revenue Bonds
(Professional Educators Home Loan Program), AMT, Series A-1, 5.50% due
12/01/2039 (n)(o) 1,689
6,250 Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds,
First Tier, Series A, 5.50% due 8/15/2039 (a) 6,635
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Vermont - 0.9% 3,100 Vermont HFA, S/F Housing Revenue Bonds, AMT, Series 27, 4.85% due 11/01/2032 (d) 2,987
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Virginia - 5.4% 10,000 Fairfax County, Virginia, EDA, Resource Recovery Revenue Refunding Bonds, AMT,
Series A, 6.10% due 2/01/2010 (a) 10,520
2,300 Halifax County, Virginia, IDA, Exempt Facility Revenue Refunding Bonds (Old
Dominion Electric Cooperative Project), AMT, 5.625% due 6/01/2028 (a) 2,442
5,000 Stafford County, Virginia, EDA, Hospital Facilities Revenue Bonds (MediCorp
Health System), 5.25% due 6/15/2037 5,052
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Washington - 0.6% 2,000 Snohomish County, Washington, Public Utility District Number 001, Electric
Revenue Refunding Bonds, 5.375% due 12/01/2009 (d)(g) 2,096
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Total Municipal Bonds (Cost - $436,941) - 137.0% 452,991
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Municipal Bonds Held in Trust (p)
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District of Columbia - 10,000 District of Columbia, Ballpark Revenue Bonds, Series B-1, 5% due 2/01/2031 (b) 10,244
3.1%
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Florida - 4.0% 8,900 Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International
Airport), AMT, Series A, 5% due 10/01/2040 (c) 8,911
4,200 Orange County, Florida, Sales Tax Revenue Refunding Bonds, Series B, 5.125% due
1/01/2032 (b) 4,351
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Illinois - 6.1% 10,250 Chicago, Illinois, Board of Education, GO (Chicago School Reform Project),
5.75% due 12/01/2027 (a) 10,472
9,100 Chicago, Illinois, O'Hare International Airport, General Airport Revenue Refunding
Bonds, Third Lien, AMT, Series A, 5.75% due 1/01/2021 (f) 9,612
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Massachusetts - 4.9% 5,600 Massachusetts State HFA, Housing Revenue Bonds (Rental Mortgage), AMT, Series F,
5.25% due 1/01/2046 (d) 5,648
3,100 Massachusetts State Port Authority, Special Facilities Revenue Bonds (Delta Air
Lines Inc. Project), AMT, Series A, 5.50% due 1/01/2016 (a) 3,252
4,000 Massachusetts State Port Authority, Special Facilities Revenue Bonds (Delta Air
Lines Inc. Project), AMT, Series A, 5.50% due 1/01/2018 (a) 4,196
2,870 Massachusetts State Port Authority, Special Facilities Revenue Bonds (Delta Air
Lines Inc. Project), AMT, Series A, 5.50% due 1/01/2019 (a) 3,011
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New Jersey - 6.4% 15,250 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2024 (e) 16,042
5,000 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 (e) 5,330
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BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2007 (Unaudited) (in Thousands)
Face
State Amount Municipal Bonds Held in Trust (p) Value
--------------------------------------------------------------------------------------------------------------------------------
South Carolina - 2.2% $ 3,120 Charleston Educational Excellence Financing Corporation, South Carolina,
Revenue Bonds (Charleston County School District), 5.25% due 12/01/2028 (e) $ 3,299
2,765 Charleston Educational Excellence Financing Corporation, South Carolina,
Revenue Bonds (Charleston County School District), 5.25% due 12/01/2029 (e) 2,919
1,010 Charleston Educational Excellence Financing Corporation, South Carolina,
Revenue Bonds (Charleston County School District), 5.25% due 12/01/2030 (e) 1,065
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Texas - 7.9% 14,500 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, AMT, Series A,
5.50% due 11/01/2033 (f) 15,054
10,400 Travis County, Texas, Health Facilities Development Corporation, Revenue
Refunding Bonds (Ascension Health Credit), Series A, 5.875% due 11/15/2009 (a) 10,983
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Total Municipal Bonds Held in Trust (Cost - $114,096 ) - 34.6% 114,389
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Shares
Held Short-Term Securities
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1,000 Merrill Lynch Institutional Tax-Exempt Fund, 3.32% (l)(j) 1,000
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Total Short-Term Securities (Cost - $1,000) - 0.3% 1,000
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Total Investments (Cost - $552,037*) - 171.9% 568,380
Other Assets Less Liabilities - 1.6% 5,308
Liability for Trust Certificates, Including Interest Expense Payable - (16.9%) (55,771)
Preferred Stock, at Redemption Value - (56.6%) (187,236)
----------
Net Assets Applicable to Common Stock - 100.0% $ 330,681
==========
* The cost and unrealized appreciation (depreciation) of investments as of
October 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 497,102
===============
Gross unrealized appreciation $ 18,636
Gross unrealized depreciation (2,391)
---------------
Net unrealized appreciation $ 16,245
===============
(a) AMBAC Insured.
(b) FGIC Insured.
(c) XL Capital Insured.
(d) FSA Insured.
(e) Assured Guaranty Insured.
(f) MBIA Insured.
(g) Prerefunded.
(h) Escrowed to maturity.
(i) Radian Insured.
(j) Represents the current yield as of October 31, 2007.
(k) CIFG Insured.
BlackRock MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2007 (Unaudited) (in Thousands)
(l) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Affiliate Net Dividend
Activity Income
--------------------------------------------------------------------------
Merrill Lynch Institutional Tax Exempt Fund (4,318) $81
--------------------------------------------------------------------------
(m) Represents a zero coupon or step bond; the interest rate shown reflects
the effective yield at the time of purchase.
(n) FNMA/GNMA Collateralized.
(o) FHLMC Collateralized.
(p) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
serve as collateral in a financing transaction.
o Forward interest rate swaps outstanding as of October 31, 2007 were as
follows:
------------------------------------------------------------------------------------------------------
Notional Unrealized
Amount Appreciation
------------------------------------------------------------------------------------------------------
Pay a fixed rate of 3.607% and receive a floating rate based on
1-week SIFMA Municipal Swap Index rate
Broker, JPMorgan Chase
Expires January 2018 $ 15,000 $ 83
Pay a fixed rate of 3.8235% and receive a floating rate based on
1-week SIFMA Municipal Swap Index rate
Broker, JPMorgan Chase
Expires December 2022 $ 12,500 56
------------------------------------------------------------------------------------------------------
Total $ 139
=====
Item 2 - Controls and Procedures
2(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities and Exchange Act of 1934, as amended.
2(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the registrant's last fiscal quarter that have
materially affected, or are reasonably likely to materially affect,
the registrant's internal control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock MuniEnhanced Fund, Inc.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Executive Officer of
BlackRock MuniEnhanced Fund, Inc.
Date: December 19, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Executive Officer (principal executive officer) of
BlackRock MuniEnhanced Fund, Inc.
Date: December 19, 2007
By: /s/ Neal J. Andrews
-------------------
Neal J. Andrews,
Chief Financial Officer (principal financial officer) of
BlackRock MuniEnhanced Fund, Inc.
Date: December 19, 2007