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 811-5739
Name of Fund: MuniEnhanced Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President, 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: (609) 282-2800
Date of fiscal year end: 01/31/04
Date of reporting period: 08/01/04 - 10/31/04
Item 1 - Schedule of Investments
MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2004 (in Thousands)
S&P Moody's Face
State Ratings Ratings Amount Municipal Bonds Value
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Arkansas - 0.3% NR* Aaa $ 1,000 University of Arkansas, University Construction Revenue Bonds $ 1,024
(UAMS Campus), Series B, 5% due 11/01/2034 (f)
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California - 27.2% AAA Aaa 9,000 Alameda Corridor Transportation Authority, California, Capital 6,328
Appreciation Revenue Refunding Bonds, Subordinate Lien, Series A,
5.62%** due 10/01/2012(a)
AAA Aaa 6,000 Alameda Corridor Transportation Authority, California, Revenue 4,174
Refunding Bonds, Subordinated Lien, Series A , 5.57%**
due 10/01/2012(a)
AAA Aaa 5,000 Anaheim, California, Public Financing Authority, Lease Revenue 6,078
Bonds (Public Improvements Project), Senior-Series A, 6%
due 9/01/2024(d)
California State Department of Water Resources, Power Supply
Revenue Bonds, Series A:
BBB+ A2 1,240 5.375% due 5/01/2022 1,339
AAA Aaa 1,800 5.375% due 5/01/2022(f) 1,965
California State, GO, Refunding:
A A3 3,000 5.25% due 9/01/2026 3,156
AAA Aaa 6,000 5.25% due 2/01/2030(f) 6,329
A A3 5,000 5.125% due 6/01/2031 5,122
AAA NR* 2,200 California State, GO, Refunding, ROLS, Series II-R-272, 8.648% 2,388
due 2/01/2033(h)(j)
A A3 8,490 California State, Various Purpose, GO, 5.50% due 11/01/2033 9,106
Golden State Tobacco Securitization Corporation of California,
Tobacco Settlement Revenue Bonds, Series B:
A- Baa1 3,805 5.60% due 6/01/2028 3998
AAA Aaa 2,200 5.50% due 6/01/2033(c) 2376
AAA Aaa 1,400 5.625% due 6/01/2033(c) 1530
AAA Aaa 5,000 5% due 6/01/2038(a) 5,094
AAA Aaa 6,800 5.625% due 6/01/2038(k) 7,405
AAA Aaa 10,000 5.50% due 6/01/2043(b) 10,802
AAA Aaa 2,835 5.50% due 6/01/2043(c) 3,056
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Portfolio Abbreviations
To simplify the listings of MuniEnhanced Fund, Inc.'s portfolio holdings in the
Schedule of Investments, we have abbreviated the names of many of the securities
according to the list below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
RIB Residual Interest Bonds
RITR Residual Interest Trust Receipts
ROLS Reset Option Longs
S/F Single-Family
MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2004 (continued) (in Thousands)
S&P Moody's Face
State Ratings Ratings Amount Municipal Bonds Value
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California (concluded) AAA Aaa $ 5,000 Norco, California, Redevelopment Agency, Tax Allocation Refunding $ 5,183
Bonds (Norco Redevelopment Project-Area Number 1), 5.125%
due 3/01/2030(f)
AAA Aaa 1,750 Poway, California, Redevelopment Agency, Tax Allocation Refunding 1,808
Bonds (Paguay Redevelopment Project), 5.125% due 6/15/2033(a)
AAA Aaa 6,145 Stockton, California, Public Financing Authority, Lease Revenue 6,403
Bonds (Parking & Capital Projects), 5.125% due 9/01/2030(b)
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Colorado - 10.3% Boulder County, Colorado, Hospital Development Revenue Bonds
(Longmont United Hospital Project)(j):
AA Baa2 2,705 5.60% due 12/01/2015 2,945
AA Baa2 2,135 5.75% due 12/01/2020 2,354
Colorado HFA, Revenue Bonds, AMT:
NR* Aa2 2,375 DRIVERS, Series 251, 11.514% due 4/01/2030(h) 2,530
NR* Aa2 235 (S/F Program), Senior Series A-1, 7.40% due 11/01/2027 244
NR* Aa2 1,085 Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior 1,124
Series A-2, 7.50% due 4/01/2031
Colorado Health Facilities Authority Revenue Bonds, Series A:
AA Aa2 1,200 (Catholic Health Initiatives), 5.50% due 3/01/2032 1,259
AA NR* 1,200 (Catholic Retirement Communities Inc.), 5.50% due 12/01/2027(j) 1,273
AA NR* 675 (Catholic Retirement Communities Inc.), 5.50% due 12/01/2033(j) 712
AAA Aaa 4,280 Colorado Water Resource Power Development Authority, Clean Water 4,982
Revenue Bonds, Series A, 6.25% due 9/01/2016
AAA Aaa 2,000 Denver, Colorado, City and County Airport Revenue Refunding Bonds, 2,232
AMT, Series A, 6% due 11/15/2018(a)
AAA Aaa 5,450 El Paso County, Colorado, School District Number 49, Falcon, GO, 6,465
Series A, 6% due 12/01/2018(d)
Northwest Parkway, Colorado, Public Highway Authority Revenue
Bonds:
AAA Aaa 9,450 Capital Appreciation Revenue Bonds, Senior Convertible, 7,308
Series C, 5.33%** due 6/15/2011(d)
AAA Aaa 1,900 Series A, 5.50% due 6/15/2021(a) 2,123
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Florida - 0.8% NR* Aaa 2,500 Escambia County, Florida, Health Facilities Authority, Health 2,562
Facility Revenue Bonds (Florida Health Care Facility Loan), 5.95%
due 7/01/2020(a)
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Georgia - 9.8% AAA Aaa 18,655 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 19,786
Series B, 5.25% due 1/01/2033(d)
AAA Aaa 3,500 Fulton County, Georgia, Water and Sewer Revenue Bonds, 5.25% 3,701
due 1/01/2035(b)
AAA Aaa 7,725 Georgia Municipal Electric Authority, Power Revenue Refunding 10,379
Bonds, Series EE, 7% due 1/01/2025(a)
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Illinois - 20.8% NR* Aaa 5,125 Chicago, Illinois, Board of Education, GO, RIB, Series 467, 9.47% 6,277
due 12/01/2027(a)(h)
AAA Aaa 3,750 Chicago, Illinois, Gas Supply Revenue Refunding Bonds (People's 3,911
Gas Light & Coke), Series A, 6.10% due 6/01/2025(a)
Chicago, Illinois, O'Hare International Airport Revenue Bonds,
3rd Lien, AMT, Series B-2:
AAA Aaa 5,670 5.75% due 1/01/2023(d) 6,220
AAA Aaa 2,500 6% due 1/01/2029(c) 2,769
MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2004 (continued) (in Thousands)
S&P Moody's Face
State Ratings Ratings Amount Municipal Bonds Value
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Illinois (concluded) AAA NR* $ 4,550 Chicago, Illinois, O'Hare International Airport Revenue Refunding $ 5,471
Bonds, DRIVERS, AMT, Series 250, 9.409% due 1/01/2021(f)(h)
AAA Aaa 3,000 Cook County, Illinois, Capital Improvement, GO, Series C, 5.50% 3,279
due 11/15/2026(a)
AAA Aaa 2,240 Cook County, Illinois, Community College District No. 508, Chicago, 2,549
COP, Refunding, 8.75% due 1/01/2007(b)
AAA Aaa 3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds 3,233
(Servantcor Project), Series A, 6.375% due 8/15/2006(d)(g)
Illinois Sports Facilities Authority, State Tax Supported Revenue
Bonds(a):
AAA Aaa 21,120 5.399%** due 6/15/2010 16,560
AAA Aaa 4,500 5% due 6/15/2032 4,609
AAA Aaa 3,000 Metropolitan Pier and Exposition Authority, Illinois, Dedicated 3,420
State Tax Revenue Refunding Bonds (McCormick Place Expansion),
Series B, 5.75% due 6/15/2023(f)
AAA Aaa 10,115 Regional Transportation Authority, Illinois, Revenue Bonds, 13,452
Series A, 7.20% due 11/01/2020(a)
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Indiana - 5.1% AAA Aaa 2,500 Brownsburg, Indiana, School Building Corporation, First Mortgage 2,767
Revenue Bonds (Brownsburg Community School), 5.55% due 2/01/2024(f)
AAA Aaa 4,080 Hammond, Indiana, Multi-School Building Corporation, First 4,523
Mortgage Revenue Refunding Bonds, 6.125% due 7/15/2019(f)
Indiana Transportation Finance Authority, Highway Revenue Bonds,
Series A(b):
AAA Aaa 4,250 5.25% due 6/01/2028 4,520
AAA Aaa 3,750 5.25% due 6/01/2029 3,979
AAA Aaa 1,500 Indianapolis, Indiana, Local Public Improvement Bond Bank Revenue 1,585
Bonds (Waterworks Project), Series A, 5.25% due 7/01/2033(f)
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Kansas - 1.1% Sedgwick and Shawnee Counties, Kansas, S/F Revenue Bonds
(Mortgage-Backed Securities Program), AMT(e):
NR* Aaa 1,050 Series A-1, 6.875% due 12/01/2026 1,073
AAA Aaa 1,755 Series A-1, 6.875% due 12/01/2026(f) 1,793
NR* Aaa 765 Series A-2, 7.60% due 12/01/2031 798
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Louisiana - 4.0% AAA Aaa 6,000 Louisiana Local Government, Environmental Facilities, Community 6,914
Development Authority Revenue Bonds (Capital Projects and
Equipment Acquisition), Series A, 6.30% due 7/01/2030(a)
AAA Aaa 5,150 New Orleans, Louisiana, Ernest N. Morial Exhibit Hall Authority, 5,451
Special Tax, Sub-Series A, 5.25% due 7/15/2028(a)
AAA Aaa 1,400 Terrebonne Parish, Louisiana, Hospital Service District Number 1, 1,505
Hospital Revenue Bonds (Terrebonne General Medical Center Project),
5.50% due 4/01/2033(a)
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Massachusetts - 5.2% AAA NR* 4,985 Massachusetts State Port Authority, Special Facilities Revenue 5,436
Bonds, DRIVERS, AMT, Series 501, 8.895% due 7/01/2009(a)(h)
Massachusetts State Special Obligation Dedicated Tax Revenue
Bonds(b):
AAA Aaa 1,800 5.25% due 1/01/2028 1,914
AAA Aaa 10,000 5.25% due 1/01/2029 10,589
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Michigan - 5.4% AAA Aaa 6,200 Detroit, Michigan, Water Supply System Revenue Bonds, Series B, 6,537
5.25% due 7/01/2032(f)
AAA Aaa 2,200 Michigan Higher Education Student Loan Authority, Student Loan 2,316
Revenue Refunding Bonds, AMT, Series XVII-G, 5.20% due 9/01/2020(a)
MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2004 (continued) (in Thousands)
S&P Moody's Face
State Ratings Ratings Amount Municipal Bonds Value
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Michigan (concluded) Michigan State Strategic Fund, Limited Obligation Revenue
Refunding Bonds (Detroit Edison Company Project)(c):
AAA Aaa $ 1,150 5.45% due 9/01/2029 $ 1,238
AAA Aaa 1,300 AMT, Series A, 5.50% due 6/01/2030 1,374
AAA Aaa 2,500 AMT, Series C, 5.65% due 9/01/2029 2,643
AAA Aaa 4,300 AMT, Series C, 5.45% due 12/15/2032 4,495
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Mississippi - 0.8% AAA Aaa 2,400 Walnut Grove, Mississippi, Correctional Authority, COP, 6% 2,813
due 11/01/2009(a)(g)
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Nebraska - 0.5% A+ NR* 1,700 Washington County, Nebraska, Wastewater Facilities Revenue Bonds 1,832
(Cargill Inc. Project), AMT, 5.90% due 11/01/2027
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Nevada - 8.2% AA NR* 3,100 Carson City, Nevada, Hospital Revenue Bonds, (Carson-Tahoe 3,277
Hospital Project), Series A, 5.50% due 9/01/2033(j)
Clark County, Nevada, Airport System Subordinate Lien Revenue
Bonds(b):
AAA Aaa 1,500 Series A-2, 5% due 7/01/2030 1,536
AAA Aaa 3,200 Series A-2, 5% due 7/01/2036 3,257
AAA Aaa 2,000 Series B, 5.25% due 7/01/2034 2,082
Director of the State of Nevada, Department of Business and
Industry Revenue Bonds (Las Vegas Monorail Company Project), First
Tier(a):
AAA Aaa 750 5.625% due 1/01/2032 828
AAA Aaa 3,280 5.375% due 1/01/2040 3,400
AAA Aaa 10,450 Washoe County, Nevada, Gas and Water Facilities Revenue Refunding 10,742
Bonds (Sierra Pacific Power Company), 6.30% due 12/01/2014(a)
AAA Aaa 3,000 Washoe County, Nevada, Water Facility Revenue Bonds (Sierra 3,106
Pacific Power Company), AMT, 6.65% due 6/01/2017(f)
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New Hampshire - 2.3% AAA Aaa 7,390 New Hampshire Health and Education Facilities Authority Revenue 8,058
Bonds (Dartmouth-Hitchcock Obligation Group, 5.50% due 8/01/2027(d)
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New Jersey - 10.6% New Jersey EDA, Cigarette Tax Revenue Bonds:
BBB Baa2 3,250 5.50% due 6/15/2024 3,323
AAA Aa2 2,000 5.50% due 6/15/2024 2,143
BBB Baa2 700 5.50% due 6/15/2031 704
BBB Baa2 1,165 5.75% due 6/15/2034 1,196
New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A(f):
AAA Aaa 2,600 5% due 7/01/2029 2,695
AAA Aaa 7,250 5.25% due 7/01/2031 7,707
AAA Aaa 5,200 5.25% due 7/01/2033 5,524
New Jersey EDA, Revenue Bonds, ROLS(h):
AAA NR* 5,000 Series II-R-309-1, 9.136% due 6/15/2024 5,712
AAA NR* 2,500 Series II-R-309-2, 9.136% due 6/15/2031 2,811
A-1+ VMIG-1 + 4,800 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, VRDN, 4,800
Series C-3, 1.75% due 1/01/2024(d)(l)
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MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2004 (continued) (in Thousands)
S&P Moody's Face
State Ratings Ratings Amount Municipal Bonds Value
------------------------------------------------------------------------------------------------------------------------------------
New York - 9.8% New York City, New York, GO, DRIVERS (h):
AAA NR* $ 1,500 Series 194, 9.461% due 2/01/2015(d) $ 1,685
AAA NR* 6,960 Series 356, 8.942% due 6/01/2011(c) 8,661
New York City, New York, GO, Refunding:
AAA A2 3,890 Series A, 6.375% due 5/15/2010(b) 4,637
AAA A2 2,745 Series A, 6.375% due 5/15/2013(b) 3,223
AAA A2 1,620 Series A, 6.375% due 5/15/2014(b) 1,902
AAA A2 1,675 Series A, 6.375% due 5/15/2015(b) 1,966
AAA Aaa 2,000 Series L, 5.75% due 8/01/2013(c) 2,192
AAA Aaa 3,290 New York City, New York, GO, Series E, 5.75% due 5/15/2018(c) 3,748
AAA Aaa 5,400 Tobacco Settlement Financing Corporation of New York Revenue 5,813
Bonds, Series A-1, 5.25% due 6/01/2022(a)
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Ohio - 0.8% AAA Aaa 2,500 North Canton, Ohio, City School District GO, 6.70% 2,561
due 12/01/2004(a)(g)
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Pennsylvania - 5.9% AAA Aaa 600 Allegheny County, Pennsylvania, Sanitation Authority, Sewer 654
Revenue Bonds, 5.50% due 12/01/2030(f)
AAA Aaa 5,500 Pennsylvania State Public School Building Authority, School Lease 5,639
Revenue Bonds (The School District of Philadelphia Project), 5%
due 6/01/2033(d)
AAA Aaa 6,500 Philadelphia, Pennsylvania, Authority for Industrial Development, 7,288
Lease Revenue Bonds, Series B, 5.50% due 10/01/2020(d)
AAA Aaa 4,500 Philadelphia, Pennsylvania, School District, GO, Series B, 5.625% 4,993
due 8/01/2020(b)
AAA Aaa 1,750 Washington County, Pennsylvania, Capital Funding Authority Revenue 1,833
Bonds (Capital Projects and Equipment Program), 6.15%
due 12/01/2029(a)
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Rhode Island - 2.6% AAA Aaa 4,345 Providence, Rhode Island, Public Building Authority, General 5,118
Revenue Bonds, Series A, 6.25% due 12/15/2020(d)
AAA Aaa 3,355 Rhode Island State Economic Development Corporation, Airport 3,947
Revenue Bonds, Series B, 6.50% due 7/01/2015(b)
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South Carolina - 0.8% AA Aa3 1,590 South Carolina Educational Facilities Authority for Private 1,713
Nonprofit Institutions Revenue Bonds (The Benedict College),
5.625% due 7/01/2031(j)
NR* Aaa 890 South Carolina Housing Finance and Development Authority, Mortgage 905
Revenue Refunding Bonds, AMT, Series A-2, 5.875% due 7/01/2009(d)
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South Dakota - 2.3% AAA Aaa 7,000 South Dakota State Health and Educational Facilities Authority, 7,980
Revenue Refunding Bonds, Series A, 7.625% due 1/01/2008(f)(g)
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Tennessee - 0.7% AAA Aaa 2,280 Tennessee HDA, Revenue Refunding Bonds (Homeownership Program), 2,369
AMT, Series 1, 5.95% due 7/01/2012(f)
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Texas - 8.1% AAA Aaa 1,615 Bexar, Texas, Metropolitan Water District, Waterworks System 1,682
Revenue Refunding Bonds, 6.35% due 5/01/2025(f)
Dallas-Fort Worth, Texas, International Airport Revenue Bonds,
DRIVERS, AMT(h):
AAA NR* 2,000 Series 202, 9.911% due 11/01/2028(b) 2,389
AAA NR* 7,250 Series 353, 8.895% due 5/01/2011(f) 8,039
AAA Aaa 900 Houston, Texas, Airport System, Revenue Refunding Bonds, Sub-Lien, 974
Series B, 5.50% due 7/01/2030(d)
MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2004 (continued) (in Thousands)
S&P Moody's Face
State Ratings Ratings Amount Municipal Bonds Value
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Texas (concluded) AAA Aaa $ 6,250 Texas State Turnpike Authority, Central Texas Turnpike System $ 6,747
Revenue Bonds, First Tier, Series A, 5.50% due 8/15/2039(a)
AAA Aaa 5,200 Travis County, Texas, Health Facilities Development Corporation 6,788
Revenue Refunding Bonds, RITR, Series 4, 9.563%
due 11/15/2024(a)(h)
AAA Aaa 1,000 University of Houston, Texas, University Revenue Bonds, 5.50% 1,086
due 2/15/2030(f)
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Virginia - 4.0% AAA Aaa 10,000 Fairfax County, Virginia, EDA, Resource Recovery Revenue Refunding 11,347
Bonds, AMT, Series A, 6.10% due 2/01/2010(a)
AAA Aaa 2,300 Halifax County, Virginia, IDA, Exempt Facility Revenue Refunding 2,495
Bonds (Old Dominion Electric Cooperative Project), AMT, 5.625%
due 6/01/2028(a)
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Washington - 3.6% AAA Aaa 2,150 King County, Washington, Sewer Revenue Refunding Bonds, Series B, 2,329
5.50% due 1/01/2027(d)
AAA Aaa 2,000 Snohomish County, Washington, Public Utility District Number 001, 2,174
Electric Revenue Refunding Bonds, 5.375% due 12/01/2024(d)
AAA Aaa 7,000 Washington State, GO, Series A and AT-6, 6.25% due 2/01/2011(f) 8,052
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Wisconsin - 0.8% AA- Aa3 2,500 Madison, Wisconsin IDR (Madison Gas & Electric Co.), Refunding, 2,682
AMT, Series A, 5.875% due 10/01/2034
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Total Municipal Bonds (Cost - $490,794) - 151.8% 523,000
============================================================================================================
Shares
Held Short-Term Securities
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8,701 Merrill Lynch Institutional Tax-Exempt Fund(i) 8,701
------------------------------------------------------------------------------------------------------------
Total Short-Term Securities (Cost - $8,701) - 2.5% 8,701
============================================================================================================
Total Investments (Cost - $499,495++) - 154.3% 531,701
Liabilities in Excess of Other Assets - 0.0% (167)
Preferred Stock, at Redemption Value - (54.3%) (187,024)
----------
Net Assets Applicable to Common Stock - 100.0% $ 344,510
==========
(a) AMBAC Insured.
(b) FGIC Insured.
(c) XL Capital Insured.
(d) FSA Insured.
(e) GNMA Collateralized.
(f) MBIA Insured.
(g) Prerefunded.
(h) The interest rate is subject to change periodically and inversely based
upon prevailing market rates. The interest rate shown is the rate in
effect at October 31, 2004.
(i) Investments in companies considered to be an affiliate of the Fund (such
companies are defined as "Affiliated Companies" in Section 2(a)(3) of the
Investment Company Act of 1940) were as follows:
(in Thousands)
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Institutional
Tax-Exempt Fund 1,800 $ 47
--------------------------------------------------------------------------
MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2004 (continued)
(j) Radian Insured.
(k) CIFG Insured.
(l) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at October 31,
2004.
* Not Rated.
** Represents a step bond; the interest rate shown reflects the effective
yield at the time of purchase by the Fund.
+ Highest short-term rating by Moody's Investors Services, Inc.
++ The cost and unrealized appreciation/depreciation of investments as of
October 31, 2004, as computed for federal income tax purposes, were as
follows:
(in Thousands)
--------------------------------------------------------------------------
Aggregate cost $ 499,495
=========
Gross unrealized appreciation $ 32,948
Gross unrealized depreciation (742)
---------
Net unrealized appreciation $ 32,206
=========
Forward interest rate swaps outstanding as of October 31, 2004 were:
(in Thousands)
-----------------------------------------------------------------------------------
Notional Unrealized
Amount Depreciation
-----------------------------------------------------------------------------------
Receive a variable rate equal to 7-Day
Bond Market Association Municipal Swap
Index Rate and pay a fixed rate
of 4.156% interest
Broker, J.P. Morgan Chase Bank
Expires December, 2024 $ 30,000 $ (642)
Receive a variable rate equal to 7-Day
Bond Market Association Municipal Swap
Index Rate and pay a fixed rate
of 3.599% interest
Broker, J.P. Morgan Chase Bank
Expires December, 2014 $ 20,000 (254)
MuniEnhanced Fund, Inc.
Schedule of Investments as of October 31, 2004 (concluded)
Forward interest rate swaps outstanding as of October 31, 2004 were
(concluded):
(in Thousands)
-----------------------------------------------------------------------------------
Notional Unrealized
Amount Depreciation
-----------------------------------------------------------------------------------
Receive a variable rate equal to 7-Day
Bond Market Association Municipal Swap
Index Rate and pay a fixed rate of 4.073% interest
Broker, Morgan Stanley Capital Services, Inc.
Expires March, 2025 $ 20,000 $ (35)
Receive a variable rate equal to 7-Day
Bond Market Association Municipal Swap
Index Rate and pay a fixed rate of 3.523% interest
Broker, J.P. Morgan Chase Bank
Expires January, 2015 $ 15,000 (61)
-----------------------------------------------------------------------------------
Total $ (992)
========
Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation
of these controls and procedures as of a date within 90 days prior to the
filing date of this report.
2(b) - There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d)) that occurred during the last fiscal quarter of the period
covered by this report that has materially affected, or is 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.
MuniEnhanced Fund, Inc.
By: /s/ Terry K. Glenn
----------------------------
Terry K. Glenn,
President
MuniEnhanced Fund, Inc.
Date: December 20, 2004
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/ Terry K. Glenn
----------------------------
Terry K. Glenn
President
MuniEnhanced Fund, Inc.
Date: December 20, 2004
By: /s/ Donald C. Burke
----------------------------
Donald C. Burke
Chief Financial Officer
MuniEnhanced Fund, Inc.
Date: December 20, 2004