UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21506
Name of Fund: BlackRock Enhanced Capital and Income Fund, Inc. (CII)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
Enhanced Capital and Income Fund, Inc., 40 East 52nd Street, New York, NY 10022.
Registrant’s telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 10/31/2009
Date of reporting period: 07/31/2009
Item 1 – Schedule of Investments
| BlackRock Enhanced Capital and Income Fund, Inc. | |||
| Schedule of Investments July 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | ||
| Industry | Common Stocks | Shares | Value |
| Aerospace & Defense - 5.3% | Honeywell International, Inc. | 356,000 | $ 12,353,200 |
| Northrop Grumman Corp. | 202,000 | 9,005,160 | |
| Raytheon Co. | 230,000 | 10,798,500 | |
| 32,156,860 | |||
| Capital Markets - 5.8% | The Bank of New York Mellon Corp. | 483,498 | 13,218,835 |
| Invesco Ltd. (a) | 611,700 | 12,081,075 | |
| Morgan Stanley | 362,013 | 10,317,370 | |
| 35,617,280 | |||
| Chemicals - 2.2% | Air Products & Chemicals, Inc. | 50,700 | 3,782,220 |
| E.I. du Pont de Nemours & Co. | 305,345 | 9,444,321 | |
| 13,226,541 | |||
| Commercial Banks - 1.2% | Wells Fargo & Co. | 308,700 | 7,550,802 |
| Communications | Nokia Oyj (a) | 515,000 | 6,870,100 |
| Equipment - 1.1% | |||
| Computers & | Hewlett-Packard Co. | 303,992 | 13,162,854 |
| Peripherals - 4.5% | International Business Machines Corp. | 121,653 | 14,346,538 |
| 27,509,392 | |||
| Diversified Financial | JPMorgan Chase & Co. | 529,339 | 20,458,952 |
| Services - 3.4% | |||
| Diversified Telecommunication | AT&T Inc. | 430,000 | 11,278,900 |
| Services - 6.5% | Qwest Communications International Inc. | 3,573,701 | 13,794,486 |
| Verizon Communications, Inc. | 445,000 | 14,271,150 | |
| 39,344,536 | |||
| Electric Utilities - 3.0% | American Electric Power Co., Inc. | 48,800 | 1,510,848 |
| FPL Group, Inc. | 152,044 | 8,616,333 | |
| The Southern Co. | 261,129 | 8,199,451 | |
| 18,326,632 | |||
| Electrical Equipment - 0.9% | Emerson Electric Co. | 146,800 | 5,340,584 |
| Energy Equipment & | Halliburton Co. | 489,289 | 10,808,394 |
| Services - 1.8% | |||
| Food & Staples Retailing - 1.7% | Wal-Mart Stores, Inc. | 83,926 | 4,186,229 |
| Walgreen Co. | 195,000 | 6,054,750 | |
| 10,240,979 | |||
| Food Products - 7.4% | General Mills, Inc. | 227,671 | 13,412,099 |
| Kraft Foods, Inc. | 632,500 | 17,925,050 | |
| Unilever NV (a) | 499,632 | 13,589,990 | |
| 44,927,139 | |||
| Health Care Equipment & | Covidien Plc | 200,000 | 7,562,000 |
| Supplies - 1.2% | |||
| Household Products - 2.7% | Clorox Co. | 54,557 | 3,328,522 |
| Kimberly-Clark Corp. | 220,000 | 12,859,000 | |
| 16,187,522 | |||
| Industrial | General Electric Co. | 93,434 | 1,252,016 |
| Conglomerates - 1.5% | Tyco International Ltd. | 253,900 | 7,672,858 |
| 8,924,874 | |||
| Insurance - 7.6% | ACE Ltd. | 190,900 | 9,365,554 |
| MetLife, Inc. | 273,525 | 9,286,174 | |
1
| BlackRock Enhanced Capital and Income Fund, Inc. | ||||
| Schedule of Investments July 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||
| Industry | Common Stocks | Shares | Value | |
| Prudential Financial, Inc. | 127,800 | $ 5,657,706 | ||
| The Travelers Cos., Inc. | 506,330 | 21,807,633 | ||
| 46,117,067 | ||||
| Machinery - 1.5% | Deere & Co. | 207,286 | 9,066,690 | |
| Media - 5.0% | Time Warner, Inc. | 566,772 | 15,110,141 | |
| Viacom, Inc. Class B (b) | 446,024 | 10,329,916 | ||
| Walt Disney Co. | 203,847 | 5,120,637 | ||
| 30,560,694 | ||||
| Metals & Mining - 1.6% | Nucor Corp. | 218,800 | 9,730,036 | |
| Multi-Utilities - 1.5% | Dominion Resources, Inc. | 264,000 | 8,923,200 | |
| Oil, Gas & Consumable | Anadarko Petroleum Corp. | 89,217 | 4,300,259 | |
| Fuels - 7.8% | Chevron Corp. | 265,000 | 18,409,550 | |
| Exxon Mobil Corp. | 252,500 | 17,773,475 | ||
| Peabody Energy Corp. | 205,000 | 6,787,550 | ||
| 47,270,834 | ||||
| Pharmaceuticals - 11.3% | Bristol-Myers Squibb Co. | 890,000 | 19,348,600 | |
| Eli Lilly & Co. | 176,000 | 6,140,640 | ||
| Johnson & Johnson | 150,754 | 9,179,411 | ||
| Pfizer, Inc. | 712,900 | 11,356,497 | ||
| Schering-Plough Corp. | 717,900 | 19,031,529 | ||
| Wyeth | 77,900 | 3,626,245 | ||
| 68,682,922 | ||||
| Semiconductors & | Analog Devices, Inc. | 518,500 | 14,191,345 | |
| Semiconductor | Intel Corp. | 527,678 | 10,157,802 | |
| Equipment - 10.8% | LSI Corp. (b) | 4,019,020 | 20,818,524 | |
| Maxim Integrated Products, Inc. | 678,300 | 12,019,476 | ||
| Micron Technology, Inc. (b) | 1,375,000 | 8,786,250 | ||
| 65,973,397 | ||||
| Software - 0.9% | Microsoft Corp. | 224,614 | 5,282,921 | |
| Specialty Retail - 1.1% | Home Depot, Inc. | 252,500 | 6,549,850 | |
| Total Long-Term Investments | ||||
| (Cost - $660,386,361) - 99.3% | 603,210,198 | |||
| Short-Term Securities | ||||
| Money Market Fund - 1.9% | BlackRock Liquidity Funds, TempFund, 0.29% (c)(d) | 11,361,899 | 11,361,899 | |
| Par | ||||
| (000) | ||||
| Time Deposits - 0.2% | Brown Brothers Harriman & Co., 0.03%, 8/03/09 (d) | $ 1,054 | 1,053,925 | |
| Total Short-Term Securities | ||||
| (Cost - $12,415,824) - 2.1% | 12,415,824 | |||
| Total Investments Before Options Written | ||||
| (Cost - $672,802,185*) - 101.4% | 615,626,022 | |||
2
| BlackRock Enhanced Capital and Income Fund, Inc. | ||||
| Schedule of Investments July 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||
| Options Written | Contracts | Value | ||
| Exchange-Traded Call Options | ACE Ltd., expiring August 2009 at USD 45 | 200 | $ (86,000) | |
| ACE Ltd., expiring August 2009 at USD 50 | 190 | (17,100) | ||
| ACE Ltd., expiring September 2009 at USD 50 | 280 | (45,500) | ||
| AT&T Inc., expiring September 2009 at USD 25 | 2,150 | (357,975) | ||
| AT&T Inc., expiring September 2009 at USD 26 | 215 | (21,715) | ||
| Air Products & Chemicals, Inc., expiring August 2009 | ||||
| at USD 65 | 130 | (126,100) | ||
| Air Products & Chemicals, Inc., expiring September | ||||
| 2009 at USD 75 | 150 | (42,750) | ||
| American Electric Power Co., Inc., expiring August 2009 | ||||
| at USD 27.50 | 145 | (50,750) | ||
| Anadarko Petroleum Corp., expiring August 2009 | ||||
| at USD 49 | 450 | (67,500) | ||
| Anadarko Petroleum Corp., expiring September 2009 | ||||
| at USD 50 | 50 | (9,500) | ||
| Analog Devices, Inc., expiring August 2009 at USD 25 | 1,460 | (379,600) | ||
| The Bank of New York Mellon Corp., expiring | ||||
| August 2009 at USD 30 | 1,450 | (18,125) | ||
| The Bank of New York Mellon Corp., expiring | ||||
| September 2009 at USD 30 | 240 | (12,000) | ||
| Bristol-Myers Squibb Co., expiring August 2009 | ||||
| at USD 21 | 1,850 | (184,075) | ||
| Bristol-Myers Squibb Co., expiring September 2009 | ||||
| at USD 21 | 2,600 | (331,500) | ||
| Bristol-Myers Squibb Co., expiring September 2009 | ||||
| at USD 22.50 | 400 | (20,000) | ||
| Chevron Corp., expiring August 2009 at USD 70 | 800 | (96,000) | ||
| Chevron Corp., expiring September 2009 at USD 70 | 787 | (157,400) | ||
| Covidien Plc, expiring September 2009 at USD 40 | 100 | (6,000) | ||
| Deere & Co., expiring September 2009 at USD 46 | 1,550 | (286,750) | ||
| Dominion Resources, Inc., expiring September 2009 | ||||
| at USD 35 | 400 | (18,000) | ||
| E.I. du Pont de Nemours & Co., expiring September 2009 | ||||
| at USD 30 | 1,740 | (321,900) | ||
| Eli Lilly & Co., expiring September 2009 at USD 35 | 530 | (55,650) | ||
| Emerson Electric Co., expiring September 2009 | ||||
| at USD 38 | 300 | (28,500) | ||
| Exxon Mobil Corp., expiring August 2009 at USD 70 | 650 | (94,250) | ||
| FPL Group, Inc., expiring September 2009 at USD 60 | 220 | (13,200) | ||
| General Electric Co., expiring August 2009 at USD 12 | 450 | (66,600) | ||
| General Electric Co., expiring August 2009 at USD 13 | 250 | (17,500) | ||
| General Mills, Inc., expiring August 2009 at USD 55 | 870 | (356,700) | ||
| Halliburton Co., expiring August 2009 at USD 22 | 1,275 | (111,563) | ||
| Halliburton Co., expiring August 2009 at USD 23 | 1,160 | (51,620) | ||
| Halliburton Co., expiring September 2009 at USD 24 | 250 | (13,250) | ||
| Hewlett-Packard Co., expiring August 2009 at USD 37.50 | 250 | (147,500) | ||
| Hewlett-Packard Co., expiring August 2009 at USD 39 | 570 | (259,350) | ||
3
| BlackRock Enhanced Capital and Income Fund, Inc. | ||||
| Schedule of Investments July 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||
| Options Written | Contracts | Value | ||
| Exchange-Traded Call Options | Hewlett-Packard Co., expiring September 2009 | |||
| at USD 42 | 700 | $ (182,000) | ||
| Hewlett-Packard Co., expiring September 2009 | ||||
| at USD 44 | 150 | (22,500) | ||
| Home Depot, Inc., expiring August 2009 at USD 26 | 1,890 | (142,695) | ||
| Honeywell International, Inc., expiring September 2009 | ||||
| at USD 34 | 755 | (132,125) | ||
| Honeywell International, Inc., expiring September 2009 | ||||
| at USD 35 | 405 | (48,600) | ||
| Intel Corp., expiring September 2009 at USD 19 | 1,310 | (121,175) | ||
| Intel Corp., expiring September 2009 at USD 20 | 250 | (12,125) | ||
| International Business Machines Corp., expiring | ||||
| September 2009 at USD 120 | 60 | (16,200) | ||
| Invesco Ltd., expiring October 2009 at USD 20 | 300 | (44,250) | ||
| JPMorgan Chase & Co., expiring September 2009 | ||||
| at USD 42.50 | 250 | (13,500) | ||
| Johnson & Johnson, expiring August 2009 at USD 55 | 560 | (333,200) | ||
| Johnson & Johnson, expiring August 2009 at USD 60 | 70 | (10,850) | ||
| Kimberly-Clark Corp., expiring September 2009 | ||||
| at USD 60 | 150 | (12,000) | ||
| Kraft Foods, Inc., expiring August 2009 at USD 26 | 1,600 | (408,000) | ||
| Maxim Integrated Products, Inc., expiring August 2009 | ||||
| at USD 17.50 | 1,640 | (123,000) | ||
| MetLife, Inc., expiring August 2009 at USD 32 | 820 | (217,300) | ||
| MetLife, Inc., expiring September 2009 at USD 36 | 130 | (16,900) | ||
| Micron Technology, Inc., expiring August 2009 at USD 6 | 3,252 | (170,730) | ||
| Micron Technology, Inc., expiring September 2009 | ||||
| at USD 7 | 500 | (13,750) | ||
| Morgan Stanley, expiring August 2009 at USD 30 | 1,120 | (44,800) | ||
| Morgan Stanley, expiring September 2009 at USD 29 | 180 | (27,000) | ||
| Nokia Oyj, expiring August 2009 at USD 16 | 385 | (1,925) | ||
| Nokia Oyj, expiring September 2009 at USD 14 | 1,000 | (42,500) | ||
| Northrop Grumman Corp., expiring August 2009 | ||||
| at USD 50 | 665 | (6,650) | ||
| Northrop Grumman Corp., expiring August 2009 | ||||
| at USD 55 | 160 | (800) | ||
| Northrop Grumman Corp., expiring September 2009 | ||||
| at USD 45 | 690 | (100,050) | ||
| Peabody Energy Corp., expiring August 2009 at USD 33 | 615 | (92,250) | ||
| Peabody Energy Corp., expiring September 2009 | ||||
| at USD 35 | 100 | (14,000) | ||
| Pfizer, Inc., expiring August 2009 at USD 16 | 1,000 | (31,000) | ||
| Pfizer, Inc., expiring September 2009 at USD 15 | 3,730 | (425,220) | ||
| Pfizer, Inc., expiring September 2009 at USD 16 | 617 | (33,935) | ||
| Prudential Financial, Inc., expiring August 2009 | ||||
| at USD 38 | 300 | (204,000) | ||
4
| BlackRock Enhanced Capital and Income Fund, Inc. | ||||
| Schedule of Investments July 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||
| Options Written | Contracts | Value | ||
| Exchange-Traded Call Options | Prudential Financial, Inc., expiring August 2009 | |||
| at USD 46 | 60 | $ (9,300) | ||
| Prudential Financial, Inc., expiring September 2009 | ||||
| at USD 42 | 85 | (39,950) | ||
| Raytheon Co., expiring August 2009 at USD 46 | 450 | (69,750) | ||
| Raytheon Co., expiring August 2009 at USD 47.50 | 1,275 | (92,438) | ||
| Schering-Plough Corp., expiring August 2009 at USD 25 | 1,520 | (254,600) | ||
| Schering-Plough Corp., expiring September 2009 | ||||
| at USD 26 | 2,070 | (279,450) | ||
| Schering-Plough Corp., expiring September 2009 | ||||
| at USD 27 | 360 | (28,800) | ||
| The Southern Co., expiring September 2009 at USD 32 | 915 | (59,475) | ||
| The Southern Co., expiring September 2009 at USD 33 | 1,000 | (30,000) | ||
| Time Warner, Inc., expiring August 2009 at USD 26 | 2,830 | (325,450) | ||
| Time Warner, Inc., expiring September 2009 at USD 28 | 280 | (18,200) | ||
| The Travelers Cos., Inc., expiring September 2009 | ||||
| at USD 45 | 250 | (20,625) | ||
| Tyco International Ltd., expiring September 2009 | ||||
| at USD 30 | 360 | (54,000) | ||
| Verizon Communications, Inc., expiring August 2009 | ||||
| at USD 31 | 1,225 | (163,537) | ||
| Verizon Communications, Inc., expiring September 2009 | ||||
| at USD 32 | 225 | (24,300) | ||
| Viacom, Inc. Class B, expiring September 2009 at USD 25 | 1,375 | (103,125) | ||
| Wal-Mart Stores, Inc., expiring August 2009 at USD 50 | 325 | (26,000) | ||
| Wal-Mart Stores, Inc., expiring September 2009 | ||||
| at USD 50 | 310 | (40,455) | ||
| Walgreen Co., expiring August 2009 at USD 30 | 585 | (76,050) | ||
| Walgreen Co., expiring September 2009 at USD 31 | 100 | (10,500) | ||
| Walt Disney Co., expiring August 2009 at USD 24 | 240 | (34,800) | ||
| Walt Disney Co., expiring September 2009 at USD 27 | 100 | (4,000) | ||
| Wells Fargo & Co., expiring August 2009 at USD 25 | 500 | (31,250) | ||
| Wells Fargo & Co., expiring August 2009 at USD 27 | 940 | (14,100) | ||
| Wyeth, expiring August 2009 at USD 45 | 110 | (21,450) | ||
| Wyeth, expiring September 2009 at USD 47.50 | 600 | (48,000) | ||
| (8,816,558) | ||||
| Over-the-Counter Call Options | Analog Devices, Inc., expiring August 2009 at USD 26, | |||
| Broker Morgan Stanley Capital Services Inc. | 95 | (18,553) | ||
| Analog Devices, Inc., expiring August 2009 at USD 28, | ||||
| Broker Jeffries & Co. | 250 | (19,775) | ||
| Chevron Corp., expiring August 2009 at USD 75, | ||||
| Broker UBS AG | 400 | (2,048) | ||
| Clorox Co., expiring August 2009 at USD 57.83, Broker | ||||
| Credit Suisse International | 410 | (143,910) | ||
| Covidien Plc, expiring September 2009 at USD 37.50, | ||||
| Broker Barclays Bank, Plc | 600 | (101,093) | ||
5
| BlackRock Enhanced Capital and Income Fund, Inc. | ||||
| Schedule of Investments July 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||
| Options Written | Contracts | Value | ||
| Over-the-Counter Call Options | Dominion Resources, Inc., expiring August 2009 | |||
| at USD 32.59, Broker UBS AG | 940 $ | (175,895) | ||
| Dominion Resources, Inc., expiring September 2009 | ||||
| at USD 33.50, Broker UBS AG | 440 | (63,651) | ||
| E.I. du Pont de Nemours & Co., expiring August 2009 at | ||||
| USD 26.46, Broker Morgan Stanley Capital Services Inc. | 550 | (254,650) | ||
| Emerson Electric Co., expiring August 2009 at USD 34.81, | ||||
| Broker Citibank, NA | 210 | (44,764) | ||
| Exxon Mobil Corp., expiring August 2009 at USD 71, Broker | ||||
| Jeffries & Co. | 650 | (92,431) | ||
| Exxon Mobil Corp., expiring August 2009 at USD 72.45, | ||||
| Broker Citibank, NA | 590 | (8,852) | ||
| FPL Group, Inc., expiring August 2009 at USD 56.94, Broker | ||||
| Morgan Stanley Capital Services Inc. | 450 | (61,275) | ||
| FPL Group, Inc., expiring August 2009 at USD 59, Broker | ||||
| JPMorgan Chase Bank, NA | 470 | (9,569) | ||
| General Mills, Inc., expiring September 2009 at USD 61, | ||||
| Broker Deutsche Bank AG | 840 | (69,456) | ||
| Honeywell International, Inc., expiring August 2009 at USD | ||||
| 37, Broker JPMorgan Chase Bank, NA | 800 | (960) | ||
| Intel Corp., expiring August 2009 at USD 16.77, Broker | ||||
| Morgan Stanley Capital Services Inc. | 1,330 | (361,760) | ||
| International Business Machines Corp., expiring August | ||||
| 2009 at USD 111.30, Broker Morgan Stanley Capital | ||||
| Services Inc. | 610 | (458,527) | ||
| Invesco Ltd., expiring September 2009 at USD 19.51, | ||||
| Broker Morgan Stanley Capital Services Inc. | 1,840 | (201,982) | ||
| JPMorgan Chase & Co., expiring August 2009 at USD 36.50, | ||||
| Broker Citibank, NA | 1,590 | (405,407) | ||
| Johnson & Johnson, expiring August 2009 at USD 56, | ||||
| Broker UBS AG | 500 | (270,500) | ||
| Kimberly-Clark Corp., expiring September 2009 at USD | ||||
| 59.10, Broker Goldman Sachs Bank USA | 725 | (103,169) | ||
| Kraft Foods, Inc., expiring August 2009 at USD 25.34, | ||||
| Broker Goldman Sachs Bank USA | 1,940 | (630,500) | ||
| Kraft Foods, Inc., expiring September 2009 at USD 28.52, | ||||
| Broker Citibank, NA | 1,200 | (114,428) | ||
| LSI Corp., expiring August 2009 at USD 4.69, | ||||
| Broker UBS AG | 1,600 | (91,150) | ||
| LSI Corp., expiring August 2009 at USD 4.95, Broker Morgan | ||||
| Stanley Capital Services Inc. | 10,000 | (317,360) | ||
| LSI Corp., expiring August 2009 at USD 5.50, | ||||
| Broker Jeffries & Co. | 400 | (6,722) | ||
| LSI Corp., expiring September 2009 at USD 5.51, Broker | ||||
| Morgan Stanley Capital Services Inc. | 2,000 | (53,892) | ||
| Maxim Integrated Products, Inc., expiring August 2009 at | ||||
| USD 18.50, Broker Jeffries & Co. | 300 | (10,620) | ||
6
| BlackRock Enhanced Capital and Income Fund, Inc. | ||||
| Schedule of Investments July 31, 2009 (Unaudited) | (Percentages shown are based on Net Assets) | |||
| Options Written | Contracts | Value | ||
| Over-the-Counter Call Options | Maxim Integrated Products, Inc., expiring September 2009 | |||
| at USD 17, Broker Goldman Sachs Bank USA | 175,000 $ | (213,500) | ||
| Micron Technology, Inc., expiring August 2009 at USD | ||||
| 5.50, Broker Morgan Stanley Capital Services Inc. | 3,620 | (329,381) | ||
| Microsoft Corp., expiring August 2009 at USD 21.47, Broker | ||||
| Goldman Sachs Bank USA | 600 | (147,025) | ||
| Microsoft Corp., expiring August 2009 at USD 24, Broker | ||||
| Deutsche Bank AG | 1,080 | (73,318) | ||
| Nucor Corp., expiring August 2009 at USD 49, | ||||
| Broker UBS AG | 650 | (6,565) | ||
| Qwest Communications International Inc., expiring August | ||||
| 2009 at USD 4.21, Broker Morgan Stanley Capital Services | ||||
| Inc. | 3,400 | (73,151) | ||
| Qwest Communications International Inc., expiring | ||||
| September 2009 at USD 4.44, Broker UBS AG | 14,370 | (230,940) | ||
| The Travelers Cos., Inc., expiring September 2009 at USD | ||||
| 43.10, Broker Credit Suisse International | 1,500 | (221,602) | ||
| Tyco International Ltd., expiring August 2009 at USD | ||||
| 27.46, Broker Goldman Sachs Bank USA | 1,035 | (297,045) | ||
| Unilever NV, expiring September 2009 at USD 27.13, | ||||
| Broker Morgan Stanley Capital Services Inc. | 1,500 | (160,173) | ||
| Unilever NV, expiring October 2009 at USD 27.75, Broker | ||||
| Morgan Stanley Capital Services Inc. | 250 | (26,500) | ||
| Verizon Communications, Inc., expiring September 2009 at | ||||
| USD 30.89, Broker Credit Suisse International | 1,000 | (161,426) | ||
| Viacom, Inc. Class B, expiring August 2009 at USD 23.50, | ||||
| Broker Goldman Sachs Bank USA | 1,115 | (74,631) | ||
| Walt Disney Co., expiring September 2009 at USD 25.12, | ||||
| Broker Citibank, NA | 780 | (99,060) | ||
| (6,207,216) | ||||
| Total Options Written | ||||
| (Premiums Received - $10,015,968) - (2.5)% | (15,023,774) | |||
| Total Investments, Net of Options Written - 98.9% | 600,602,248 | |||
| Other Assets Less Liabilities - 1.1% | 6,735,619 | |||
| Net Assets - 100.0% | $ 607,337,867 | |||
| * The cost and unrealized appreciation (depreciation) of investments as of July 31, | ||||
| 2009, as computed for federal income tax purposes, were as follows: | ||||
| Aggregate cost | $ 673,253,883 | |||
| Gross unrealized appreciation | $ 14,804,646 | |||
| Gross unrealized depreciation | (72,432,507) | |||
| Net unrealized depreciation | $ (57,627,861) | |||
| (a) Depositary receipts. | ||||
| (b) Non-income producing security. | ||||
| 7 | ||||
| BlackRock Enhanced Capital and Income Fund, Inc. | ||||
| Schedule of Investments July 31, 2009 (Unaudited) | ||||
| (c) 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 Activity | Income | ||
| BlackRock Liquidity Funds, TempFund | 11,361,899 | $ 16,092 | ||
| BlackRock Liquidity Series, LLC Cash Sweep Series | $(2,450,990) | $ 117,920 | ||
| (d) Represents the current yield as of report date. | ||||
| • For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub- | ||||
| classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by | ||||
| Fund management. This definition may not apply for purposes of this report, which may combine industry sub- | ||||
| classifications for reporting ease. | ||||
| Ÿ Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" | ||||
| clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures | ||||
| about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which | ||||
| are as follows: | ||||
| Ÿ | Level 1 - price quotations in active markets/exchanges for identical securities | |||
| Ÿ | Level 2 - other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in | |||
| markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not | ||||
| active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, | ||||
| yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market- | ||||
| corroborated inputs) | ||||
| Ÿ | Level 3 - unobservable inputs based on the best information available in the circumstances, to the extent | |||
| observable inputs are not available (including the Fund's own assumptions used in determining the fair value of | ||||
| investments) | ||||
| The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with | ||||
| investing in those securities. For information about the Fund's policy regarding valuation of investments and other | ||||
| significant accounting policies, please refer to the Fund's most recent financial statements as contained in its semi- | ||||
| annual report. | ||||
| 8 | ||||
| BlackRock Enhanced Capital and Income Fund, Inc. | ||
| Schedule of Investments July 31, 2009 (Unaudited) | ||
| The following table summarizes the inputs used as of July 31, 2009 in determining the fair valuation of the Fund's | ||
| investments: | ||
| Valuation | Investments in | |
| Inputs | Securities | |
| Assets | ||
| Level 1 | ||
| Long-Term Investments1 | $ 603,210,198 | |
| Short-Term Securities | 11,361,899 | |
| Total Level 1 | 614,572,097 | |
| Level 2 - Short-Term Securities | 1,053,925 | |
| Level 3 | - | |
| Total | $ 615,626,022 | |
| Valuation | Other Financial | |
| Inputs | Instruments2 | |
| Liabilities | ||
| Level 1 | $ (8,816,558) | |
| Level 2 | (6,207,216) | |
| Level 3 | - | |
| Total | $ (15,023,774) | |
| 1 See above Schedule of Investments for the industry classification. | ||
| 2 Other financial instruments are options written, which are shown at market value. | ||
| 9 | ||
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 13(a)-15(b) under the Securities 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 Enhanced Capital and Income Fund, Inc.
By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock Enhanced Capital and Income Fund, Inc.
Date: September 22, 2009
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/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer (principal executive officer) of
BlackRock Enhanced Capital and Income Fund, Inc.
Date: September 22, 2009
By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Enhanced Capital and Income Fund, Inc.
Date: September 22, 2009