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: 04/30/2021

Date of reporting period: 10/31/2020

Item 1 – Report to Stockholders

		OCTOBER 31, 2020

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)

Supplemental Information  (unaudited)

Section 19(a) Notices

BlackRock MuniAssets Fund, Inc.’s (MUA) (the “Fund”) amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon the Fund’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

October 31, 2020

Section 19(a) notices for the Funds, as applicable, are available on the BlackRock website at blackrock.com.

Table of Contents

Municipal Market Overview  For the Reporting Period Ended October 31, 2020

Municipal Market Conditions

Municipal bonds posted positive total returns during the period amid increased volatility. Initial strong performance was driven by a favorable technical backdrop. However, as a result of the COVID-19 pandemic induced economic shutdown, the municipal market experienced volatility that was worse than during the height of the global financial crisis. Performance plummeted -10.87% during a two-week period in March, before rebounding on valuation-based buying. (For comparison, the -11.86% correction in 2008 spanned more than a month.) Strong performance returned alongside initial fiscal stimulus and the re-opening of the economy but later stalled amid U.S. election uncertainty and lack of additional federal aid.

A Closer Look at Yields

During the same period, tax-exempt municipal bonds significantly underperformed U.S. Treasuries across the yield curve. As a result, relative valuations reset to more attractive levels and spurred increased participation from crossover investors.

Financial Conditions of Municipal Issuers

The COVID-19 pandemic is an unprecedented shock to the system impacting nearly every sector in the municipal market. Fortunately, most states and municipalities were in excellent fiscal health before the crisis and the federal government provided an incredible amount of initial support. BlackRock expects ongoing stability in high-quality states as well as school districts and local governments given that property taxes have proven resilient. Essential public services such as power, water, and sewer remain protected segments. State housing authority bonds, flagship universities, and strong national and regional health systems have absorbed the impact of the economic shock. However, some segments are facing daunting financial challenges. Absent additional stimulus, issuers will make difficult choices such as drawing down reserves, raising user fees/taxes, slashing expenditures, and/or borrowing to meet financial obligations. Critical providers (safety net hospitals, mass transit systems, airports) with limited resources will require funding from the states and broader municipalities they serve. BlackRock anticipates that a small subset of the market, mainly non-rated stand-alone projects, will experience significant credit deterioration. Recent news of a potentially effective vaccine suggests that the onset of meaningful credit recovery from the COVID-19 pandemic could be months to a year away. However, the current coronavirus resurgence and its negative effects on economic activity could bring a number of defaults, primarily in non-rated credits, and the migration of the municipal market’s overall credit quality from AA- to a still-strong A+ rating. As a result, BlackRock advocates careful credit selection and anticipates increased credit dispersion as the market navigates near-term uncertainty.

The opinions expressed are those of BlackRock as of October 31, 2020 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 S&P 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 not an indication of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

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 each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage (after paying the leverage costs) is paid to shareholders in the form of dividends, and the value of these portfolio holdings (less the leverage liability) 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 each Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Fund had not used leverage. Furthermore, the value of each Fund’s 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 a Fund’s obligations under its respective leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence each Fund’s NAV positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that each Fund’s 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 each Fund’s investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to each Fund’s 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”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Fund is permitted to issue debt up to 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.

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 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 S&P Global Ratings, 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

Market Price and Net Asset Value Per Share Summary

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

Performance

Returns for the six months ended October 31, 2020 were as follows:

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Past performance is not an indication of future results.

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Municipal bonds delivered strong returns in the past six months. When the period began, municipal bonds were just beginning to recover from the broad-based sell-off caused by COVID-19 and governments’ efforts to mitigate the virus. The rally continued through the spring and summer, thanks to positive supply-and-demand trends, an improving economic outlook, and the Fed’s stated intent to maintain its near-zero interest rate policy indefinitely. Municipal bonds lost momentum late in the period due to elevated new-issue supply ahead of the election, as well as uncertainty surrounding the next phase of fiscal stimulus. Still, the broader market finished with a robust, double-digit return on the strength of its earlier gains.

The Fund’s positions in long-dated unrated and below investment-grade bonds made the largest contribution to performance. At the sector level, positions in tax-backed, education, tobacco and other industries (which includes development districts and project finance issues) were key contributors. The Fund’s use of leverage also helped results by enhancing income and augmenting the effect of rising prices.

Conversely, the Fund’s yield curve positioning detracted from performance, as did its positions in securities subject to early redemption by their issuers.

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.

Overview of the Fund’s Total Investments

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 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 up to 20% of its managed assets in securities that are rated below investment grade, or are considered by BlackRock to be of comparable quality, at the time of purchase. The Fund may invest directly in such securities or synthetically through the use of derivatives.

On June 16, 2020, the Board of Directors of MEN and the Board of Directors of BlackRock MuniYield Quality Fund, Inc. (MQY) each approved the reorganization of MEN with and into MQY. Subject to approvals by each Fund’s shareholders and the satisfaction of customary closing conditions, the reorganization is expected to occur during the first quarter of 2021.

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

Fund Information

Market Price and Net Asset Value Per Share Summary

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

Performance

Returns for the six months ended October 31, 2020 were as follows:

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Past performance is not an indication of future results.

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Municipal bonds delivered strong returns in the past six months. When the period began, municipal bonds were just beginning to recover from the broad-based sell-off caused by COVID-19 and governments’ efforts to mitigate the virus. The rally continued through the spring and summer, thanks to positive supply-and-demand trends, an improving economic outlook, and the Fed’s stated intent to maintain its near-zero interest rate policy indefinitely. Municipal bonds lost momentum late in the period due to elevated new-issue supply ahead of the election, as well as uncertainty surrounding the next phase of fiscal stimulus. Still, the broader market finished with a robust, double-digit return on the strength of its earlier gains.

The Fund’s strong return reflects the combination of income, falling yields, and a compression in yield spreads. (Prices and yields move in opposite directions; falling yield spreads indicate outperformance relative to U.S. Treasuries.) The sectors that benefited the most were generally those that experienced the largest downturns in the sell-off that occurred in the first quarter of 2020, including health care, transportation and corporate-backed securities. This trend also contributed to outperformance for lower-rated debt. The Fund’s holdings in high-yield bonds, including tobacco and Puerto Rico issues, were significant beneficiaries. The Fund’s use of leverage also aided results by augmenting income and amplifying the effect of rising prices.

Conversely, the Fund’s positions in shorter-dated issues—including pre-refunded securities—underperformed. Holdings in higher-quality bonds, while posting positive absolute returns, also lagged somewhat in the rally.

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.

Overview of the Fund’s Total Investments

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 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.

On June 16, 2020, the Board of Directors or the Board of Trustees, as applicable, of BlackRock Municipal Income Investment Quality Trust (BAF), BlackRock Municipal Bond Trust (BBK), BlackRock MuniHoldings Fund II, Inc. (MUH), BlackRock MuniHoldings Quality Fund, Inc. (MUS) and the Board of Directors of MHD each approved the reorganizations of BAF, BBK, MUH and MUS into MHD. Subject to approvals by each Fund’s shareholders and the satisfaction of customary closing conditions, the reorganizations are expected to occur during the first quarter of 2021.

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

Fund Information

Market Price and Net Asset Value Per Share Summary

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

Performance

Returns for the six months ended October 31, 2020 were as follows:

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Past performance is not an indication of future results.

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Municipal bonds delivered strong returns in the past six months. When the period began, municipal bonds were just beginning to recover from the broad-based sell-off caused by COVID-19 and governments’ efforts to mitigate the virus. The rally continued through the spring and summer, thanks to positive supply-and-demand trends, an improving economic outlook, and the Fed’s stated intent to maintain its near-zero interest rate policy indefinitely. Municipal bonds lost momentum late in the period due to elevated new-issue supply ahead of the election, as well as uncertainty surrounding the next phase of fiscal stimulus. Still, the broader market finished with a robust, double-digit return on the strength of its earlier gains.

The Fund’s positions in long-dated investment-grade bonds made the largest contribution to performance. At the sector level, positions in tax-backed, transportation and health care issues were key contributors. The Fund’s use of leverage also helped results by enhancing income and augmenting the effect of rising prices.

Conversely, the Fund’s yield curve positioning detracted from performance, as did its positions in securities subject to early redemption by their issuers.

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.

Overview of the Fund’s Total Investments

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 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.

On June 16, 2020, the Board of Directors of MUH and the Board of Directors of MHD each approved the reorganization of MUH with and into MHD. Subject to approvals by each Fund’s shareholders and the satisfaction of customary closing conditions, the reorganization is expected to occur during the first quarter of 2021.

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

Fund Information

Market Price and Net Asset Value Per Share Summary

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

Performance

Returns for the six months ended October 31, 2020 were as follows:

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Past performance is not an indication of future results.

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Municipal bonds delivered strong returns in the past six months. When the period began, municipal bonds were just beginning to recover from the broad-based sell-off caused by COVID-19 and governments’ efforts to mitigate the virus. The rally continued through the spring and summer, thanks to positive supply-and-demand trends, an improving economic outlook, and the Fed’s stated intent to maintain its near-zero interest rate policy indefinitely. Municipal bonds lost momentum late in the period due to elevated new-issue supply ahead of the election, as well as uncertainty surrounding the next phase of fiscal stimulus. Still, the broader market finished with a robust, double-digit return on the strength of its earlier gains.

The Fund’s strong return reflects the combination of income, falling yields, and a compression in yield spreads. (Prices and yields move in opposite directions; falling yield spreads indicate outperformance relative to U.S. Treasuries.) The sectors that benefited the most were generally those that experienced the largest downturns in the sell-off that occurred in the first quarter of 2020, including health care, transportation and corporate-backed securities. This trend also contributed to outperformance for lower-rated debt. The Fund’s holdings in high-yield bonds, including tobacco and Puerto Rico issues, were significant beneficiaries. The Fund’s use of leverage also aided results by augmenting income and amplifying the effect of rising prices.

Conversely, the Fund’s positions in shorter-dated issues—including pre-refunded securities—underperformed. Holdings in higher-quality bonds, while posting positive absolute returns, also lagged somewhat in the rally.

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.

Overview of the Fund’s Total Investments

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 up to 20% of its managed assets in securities that are rated below investment grade, or are considered by BlackRock to be of comparable quality, at the time of purchase. The Fund may invest directly in such securities or synthetically through the use of derivatives.

On June 16, 2020, the Board of Directors of MUS and the Board of Directors of MHD each approved the reorganization of MUS with and into MHD. Subject to approvals by each Fund’s shareholders and the satisfaction of customary closing conditions, the reorganization is expected to occur during the first quarter of 2021.

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

Fund Information

Market Price and Net Asset Value Per Share Summary

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

Performance

Returns for the six months ended October 31, 2020 were as follows:

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Past performance is not an indication of future results.

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Municipal bonds delivered strong returns in the past six months. When the period began, municipal bonds were just beginning to recover from the broad-based sell-off caused by COVID-19 and governments’ efforts to mitigate the virus. The rally continued through the spring and summer, thanks to positive supply-and-demand trends, an improving economic outlook, and the Fed’s stated intent to maintain its near-zero interest rate policy indefinitely. Municipal bonds lost momentum late in the period due to elevated new-issue supply ahead of the election, as well as uncertainty surrounding the next phase of fiscal stimulus. Still, the broader market finished with a robust, double-digit return on the strength of its earlier gains.

The Fund benefited from the robust returns of its holdings in the state tax-backed and transportation sectors, as well as the gains for its investments in health care and education issues. Positions in high-yield bonds and lower-rated investment-grade issues also added value, as lower-quality debt outperformed in the recovery. The Fund’s performance was further aided by its positions in bonds with maturities of 20 years and above, which outpaced the market as a whole.

The Fund’s use of leverage augmented income and amplified the effects of rising prices. The Fund also used U.S. Treasury futures to manage interest rate risk for a short time at the beginning of the period, which helped performance. The investment adviser closed out this position due to the breakdown in correlation between the U.S. Treasury and municipal markets in the March sell-off.

The Fund’s cash weighting, while minimal, was a modest detractor. Reinvestment risk also continued to be a headwind since the proceeds from bonds that matured or were called needed to be reinvested at lower yields compared to bonds that were issued when yields were higher.

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.

Overview of the Fund’s Total Investments

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 rated investment grade or, if unrated, are deemed to be of comparable quality by the investment adviser, 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

Market Price and Net Asset Value Per Share Summary

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

Performance

Returns for the six months ended October 31, 2020 were as follows:

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Past performance is not an indication of future results.

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Municipal bonds delivered strong returns in the past six months. When the period began, municipal bonds were just beginning to recover from the broad-based sell-off caused by COVID-19 and governments’ efforts to mitigate the virus. The rally continued through the spring and summer, thanks to positive supply-and-demand trends, an improving economic outlook, and the Fed’s stated intent to maintain its near-zero interest rate policy indefinitely. Municipal bonds lost momentum late in the period due to elevated new-issue supply ahead of the election, as well as uncertainty surrounding the next phase of fiscal stimulus. Still, the broader market finished with a robust, double-digit return on the strength of its earlier gains.

The Fund benefited from its positions in bonds with maturities in the 10- to 15-year range, which outperformed the broader market. The investment adviser’s decision to add duration, or interest-rate sensitivity, to the portfolio was a further plus. The Fund’s use of leverage, which enhanced portfolio income and amplified the impact of rising prices, was an additional contributor. Positions in lower-rated investment-grade securities also performed particularly well. At the sector level, holdings in state tax-backed, transportation and health care issues generated strong returns.

The Fund used U.S. Treasury futures briefly in the latter part of the period to help mitigate the potential for interest rate risk and volatility heading into the presidential election. This strategy made a small contribution to performance.

Conversely, the Fund’s positions in shorter duration bonds, including pre-refunded securities, underperformed. (Duration is a measure of interest rate sensitivity.)

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.

Overview of the Fund’s Total Investments

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 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

Market Price and Net Asset Value Per Share Summary

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

Performance

Returns for the six months ended October 31, 2020 were as follows:

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Past performance is not an indication of future results.

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Municipal bonds delivered strong returns in the past six months. When the period began, municipal bonds were just beginning to recover from the broad-based sell-off caused by COVID-19 and governments’ efforts to mitigate the virus. The rally continued through the spring and summer, thanks to positive supply-and-demand trends, an improving economic outlook, and the Fed’s stated intent to maintain its near-zero interest rate policy indefinitely. Municipal bonds lost momentum late in the period due to elevated new-issue supply ahead of the election, as well as uncertainty surrounding the next phase of fiscal stimulus. Still, the broader market finished with a robust, double-digit return on the strength of its earlier gains.

The Fund’s positions in long-dated investment-grade bonds made the largest contribution to performance. At the sector level, positions in tax-backed, health care and transportation issues were key contributors. The Fund’s use of leverage also helped results by enhancing income and augmenting the effect of rising prices.

Conversely, The Fund’s yield curve positioning detracted from performance, as did its positions in securities subject to early redemption by their issuers.

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.

Overview of the Fund’s Total Investments