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 811-21506
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: John M. Perlowski, Chief Executive Officer, BlackRock Enhanced Capital and Income Fund, Inc., 55 East 52nd Street, New York, NY 10055
Registrant’s telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 10/31/2011
Date of reporting period: 07/31/2011
Item 1 – Schedule of Investments
|
|
|
|
|
|
|
Schedule of Investments July 31, 2011 (Unaudited) |
BlackRock Enhanced Capital and Income Fund, Inc. (CII) |
|
|
|
|
|
|
|
|
|
|
Common Stocks |
|
Shares |
|
Value |
|
||
|
Aerospace & Defense — 5.0% |
|
|
|
|
|
|
|
|
Honeywell International, Inc. (a) |
|
|
270,400 |
|
$ |
14,358,240 |
|
|
Northrop Grumman Corp. (a) |
|
|
154,500 |
|
|
9,348,795 |
|
|
Raytheon Co. (a) |
|
|
177,000 |
|
|
7,917,210 |
|
|
|
|
|
|
|
|
31,624,245 |
|
|
Capital Markets — 3.3% |
|
|
|
|
|
|
|
|
Invesco Ltd. (a) |
|
|
590,900 |
|
|
13,106,162 |
|
|
Morgan Stanley (a) |
|
|
332,613 |
|
|
7,400,640 |
|
|
|
|
|
|
|
|
20,506,802 |
|
|
Chemicals — 1.6% |
|
|
|
|
|
|
|
|
E.I. du Pont de Nemours & Co. (a) |
|
|
195,700 |
|
|
10,062,894 |
|
|
Commercial Banks — 1.2% |
|
|
|
|
|
|
|
|
Wells Fargo & Co. (a) |
|
|
266,500 |
|
|
7,446,010 |
|
|
Communications Equipment — 0.4% |
|
|
|
|
|
|
|
|
Nokia Oyj (a) |
|
|
389,100 |
|
|
2,256,780 |
|
|
Diversified Financial Services — 3.6% |
|
|
|
|
|
|
|
|
Citigroup, Inc. (a) |
|
|
228,930 |
|
|
8,777,176 |
|
|
JPMorgan Chase & Co. (a) |
|
|
340,600 |
|
|
13,777,270 |
|
|
|
|
|
|
|
|
22,554,446 |
|
|
Diversified Telecommunication Services — 7.6% |
|
|
|
|
|
|
|
|
AT&T Inc. (a) |
|
|
437,000 |
|
|
12,786,620 |
|
|
CenturyLink, Inc. (a) |
|
|
506,811 |
|
|
18,807,756 |
|
|
Verizon Communications, Inc. (a) |
|
|
453,700 |
|
|
16,011,073 |
|
|
|
|
|
|
|
|
47,605,449 |
|
|
Electric Utilities — 2.7% |
|
|
|
|
|
|
|
|
NextEra Energy, Inc. (a) |
|
|
128,000 |
|
|
7,072,000 |
|
|
The Southern Co. (a) |
|
|
254,300 |
|
|
10,055,022 |
|
|
|
|
|
|
|
|
17,127,022 |
|
|
Electrical Equipment — 1.9% |
|
|
|
|
|
|
|
|
Emerson Electric Co. (a) |
|
|
244,000 |
|
|
11,977,960 |
|
|
Energy Equipment & Services — 3.3% |
|
|
|
|
|
|
|
|
Ensco Plc - ADR (a) |
|
|
240,600 |
|
|
12,811,950 |
|
|
Halliburton Co. (a) |
|
|
142,900 |
|
|
7,820,917 |
|
|
|
|
|
|
|
|
20,632,867 |
|
|
Food Products — 7.9% |
|
|
|
|
|
|
|
|
General Mills, Inc. (a) |
|
|
313,300 |
|
|
11,701,755 |
|
|
Kraft Foods, Inc. (a) |
|
|
565,700 |
|
|
19,448,766 |
|
|
Unilever NV – ADR (a) |
|
|
572,100 |
|
|
18,581,808 |
|
|
|
|
|
|
|
|
49,732,329 |
|
|
Household Products — 1.3% |
|
|
|
|
|
|
|
|
Kimberly-Clark Corp. |
|
|
127,500 |
|
|
8,333,400 |
|
|
|
|
|
|
|
|
|
|
|
Common Stocks |
|
Shares |
|
Value |
|
||
|
IT Services — 1.7% |
|
|
|
|
|
|
|
|
International Business Machines |
|
|
57,200 |
|
$ |
10,401,820 |
|
|
Industrial Conglomerates — 2.3% |
|
|
|
|
|
|
|
|
General Electric Co. (a) |
|
|
639,700 |
|
|
11,457,027 |
|
|
Tyco International Ltd. (a) |
|
|
66,600 |
|
|
2,949,714 |
|
|
|
|
|
|
|
|
14,406,741 |
|
|
Insurance — 7.3% |
|
|
|
|
|
|
|
|
ACE Ltd. (a) |
|
|
226,000 |
|
|
15,137,480 |
|
|
MetLife, Inc. (a) |
|
|
284,100 |
|
|
11,707,761 |
|
|
The Travelers Cos., Inc. (a) |
|
|
345,000 |
|
|
19,019,850 |
|
|
|
|
|
|
|
|
45,865,091 |
|
|
Media — 4.9% |
|
|
|
|
|
|
|
|
Comcast Corp., Special Class A (a) |
|
|
646,900 |
|
|
15,098,646 |
|
|
Time Warner, Inc. (a) |
|
|
445,700 |
|
|
15,670,812 |
|
|
|
|
|
|
|
|
30,769,458 |
|
|
Metals & Mining — 2.1% |
|
|
|
|
|
|
|
|
Nucor Corp. (a) |
|
|
341,100 |
|
|
13,265,379 |
|
|
Multi-Utilities — 1.3% |
|
|
|
|
|
|
|
|
Dominion Resources, Inc. (a) |
|
|
100,300 |
|
|
4,859,535 |
|
|
Public Service Enterprise |
|
|
99,700 |
|
|
3,265,175 |
|
|
|
|
|
|
|
|
8,124,710 |
|
|
Oil, Gas & Consumable Fuels — 7.7% |
|
|
|
|
|
|
|
|
Chevron Corp. (a) |
|
|
198,100 |
|
|
20,606,362 |
|
|
Exxon Mobil Corp. (a) |
|
|
200,800 |
|
|
16,021,832 |
|
|
Marathon Oil Corp. (a) |
|
|
224,200 |
|
|
6,943,474 |
|
|
Marathon Petroleum Corp. (b) |
|
|
112,100 |
|
|
4,908,859 |
|
|
|
|
|
|
|
|
48,480,527 |
|
|
Pharmaceuticals — 12.9% |
|
|
|
|
|
|
|
|
Bristol-Myers Squibb Co. (a) |
|
|
696,400 |
|
|
19,958,824 |
|
|
Eli Lilly & Co. (a) |
|
|
485,100 |
|
|
18,579,330 |
|
|
Johnson & Johnson (a) |
|
|
131,200 |
|
|
8,500,448 |
|
|
Merck & Co., Inc. (a) |
|
|
459,400 |
|
|
15,679,322 |
|
|
Pfizer, Inc. (a) |
|
|
961,500 |
|
|
18,499,260 |
|
|
|
|
|
|
|
|
81,217,184 |
|
|
Semiconductors & Semiconductor Equipment — 8.9% |
|
|
|
|
|
|
|
|
Analog Devices, Inc. (a) |
|
|
419,000 |
|
|
14,413,600 |
|
|
Intel Corp. (a) |
|
|
681,000 |
|
|
15,206,730 |
|
|
LSI Corp. (a)(b) |
|
|
1,191,900 |
|
|
8,772,384 |
|
|
Maxim Integrated Products, Inc. (a) |
|
|
779,000 |
|
|
17,885,840 |
|
|
|
|
|
|
|
|
56,278,554 |
|
|
Software — 1.3% |
|
|
|
|
|
|
|
|
Microsoft Corp. (a) |
|
|
308,700 |
|
|
8,458,380 |
|
|
|
|
Portfolio Abbreviation |
|
|
|
|
ADR |
American Depositary Receipts |
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK ENHANCED CAPITAL AND INCOME FUND, INC. |
JULY 31, 2011 |
1 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock Enhanced Capital and Income Fund, Inc. (CII) |
|
|
|
|
|
|
|
|
|
|
Common Stocks |
|
Shares |
|
Value |
|
||
|
Specialty Retail — 3.6% |
|
|
|
|
|
|
|
|
Home Depot, Inc. (a) |
|
|
371,100 |
|
$ |
12,962,523 |
|
|
Limited Brands, Inc. (a) |
|
|
259,600 |
|
|
9,828,456 |
|
|
|
|
|
|
|
|
22,790,979 |
|
|
Total Long-Term Investments |
|
|
|
|
|
589,919,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Securities |
|
|
|
|
|
|
|
|
BlackRock Liquidity Funds, |
|
|
28,353,161 |
|
|
28,353,161 |
|
|
Total Short-Term Securities |
|
|
|
|
|
28,353,161 |
|
|
Total Investments Before Outstanding |
|
|
|
|
|
618,272,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options Written |
|
|
Contracts |
|
|
|
|
|
Exchange-Traded Call Options — (0.4)% |
|
|
|
|
|
|
|
|
ACE, Ltd., Strike Price $65, Expires |
|
|
790 |
|
|
(223,175 |
) |
|
AT&T Inc: |
|
|
|
|
|
|
|
|
Strike Price $31, Expires 8/20/11 |
|
|
232,000 |
|
|
(15,080) |
|
|
Strike Price $30, Expires 9/17/11 |
|
|
96,000 |
|
|
(44,160) |
|
|
Analog Devices, Inc.: |
|
|
|
|
|
|
|
|
Strike Price $37, Expires 8/20/11 |
|
|
115,000 |
|
|
(34,500) |
|
|
Strike Price $37, Expires 9/17/11 |
|
|
115,000 |
|
|
(63,250) |
|
|
CenturyLink, Inc.: |
|
|
|
|
|
|
|
|
Strike Price $40, Expires 8/20/11 |
|
|
89,000 |
|
|
(4,425) |
|
|
Strike Price $41, Expires 8/20/11 |
|
|
59,000 |
|
|
(1,470) |
|
|
Strike Price $42, Expires 8/20/11 |
|
|
130,000 |
|
|
(3,250) |
|
|
Citigroup, Inc.: |
|
|
|
|
|
|
|
|
Strike Price $39, Expires 8/20/11 |
|
|
40,000 |
|
|
(41,800) |
|
|
Strike Price $40, Expires 8/20/11 |
|
|
20,000 |
|
|
(13,500) |
|
|
Strike Price $42, Expires 9/17/11 |
|
|
20,000 |
|
|
(14,600) |
|
|
Comcast Corp., Special Class A, |
|
|
1,060 |
|
|
(100,700) |
|
|
Dominion Resources, Inc., Strike |
|
|
105 |
|
|
(2,625) |
|
|
Eli Lilly & Co., Strike Price $38, |
|
|
1,315 |
|
|
(99,283) |
|
|
Ensco Plc - ADR, Strike Price $52.50, |
|
|
1,325 |
|
|
(284,875 |
) |
|
Exxon Mobil Corp., Strike Price |
|
|
350 |
|
|
(20,125 |
) |
|
General Electric Co., Strike Price $19, |
|
|
1,200 |
|
|
(16,800 |
) |
|
General Mills, Inc.: |
|
|
|
|
|
|
|
|
Strike Price $38, Expires 8/20/11 |
|
|
48,000 |
|
|
(13,282 |
) |
|
Strike Price $38, Expires 9/17/11 |
|
|
97,000 |
|
|
(58,383 |
) |
|
|
|
|
|
|
|
|
|
|
Options Written |
|
Contracts |
|
Value |
|
||
|
Exchange-Traded Call Options (concluded) |
|
|
|
|
|
|
|
|
Halliburton Co., Strike Price $55, |
|
|
545 |
|
$ |
(101,370 |
) |
|
Home Depot, Inc., Strike Price $37, |
|
|
2,780 |
|
|
(72,280 |
) |
|
Honeywell International, Inc.: |
|
|
|
|
|
|
|
|
Strike Price $57.50, Expires 8/20/11 |
|
|
75,000 |
|
|
(13,875 |
) |
|
Strike Price $57.50, Expires 9/17/11 |
|
|
53,000 |
|
|
(26,765 |
) |
|
Intel Corp.: |
|
|
|
|
|
|
|
|
Strike Price $23, Expires 8/20/11 |
|
|
206,000 |
|
|
(51,375 |
) |
|
Strike Price $23, Expires 9/17/11 |
|
|
33,000 |
|
|
(16,500 |
) |
|
International Business Machines Corp., |
|
|
280 |
|
|
(215,600 |
) |
|
JPMorgan Chase & Co.: |
|
|
|
|
|
|
|
|
Strike Price $42, Expires 8/20/11 |
|
|
60,000 |
|
|
(37,200 |
) |
|
Strike Price $43, Expires 9/17/11 |
|
|
60,000 |
|
|
(46,800 |
) |
|
LSI Corp., Strike Price $7, Expires |
|
|
2,235 |
|
|
(139,688 |
) |
|
Limited Brands, Inc.: |
|
|
|
|
|
|
|
|
Strike Price $37, Expires 8/20/11 |
|
|
72,000 |
|
|
(140,400 |
) |
|
Strike Price $40, Expires 8/20/11 |
|
|
72,000 |
|
|
(43,200 |
) |
|
Strike Price $42, Expires 8/20/11 |
|
|
52,000 |
|
|
(11,700 |
) |
|
Maxim Intergrated Products: |
|
|
|
|
|
|
|
|
Strike Price $25, Expires 8/20/11 |
|
|
30,000 |
|
|
(4,500 |
) |
|
Strike Price $26, Expires 8/20/11 |
|
|
137,000 |
|
|
(6,825 |
) |
|
Strike Price $27, Expires 8/20/11 |
|
|
67,000 |
|
|
(3,325 |
) |
|
Merck & Co., Inc., Strike Price $37, |
|
|
1,260 |
|
|
(4,410 |
) |
|
MetLife, Inc., Strike Price $42, |
|
|
995 |
|
|
(159,200 |
) |
|
Microsoft Corp., Strike Price $28, |
|
|
270 |
|
|
(17,280 |
) |
|
Morgan Stanley: |
|
|
|
|
|
|
|
|
Strike Price $22, Expires 8/20/11 |
|
|
50,000 |
|
|
(51,250 |
) |
|
Strike Price $25, Expires 9/17/11 |
|
|
67,000 |
|
|
(20,948 |
) |
|
Nokia Oyj - ADR, Strike Price $7, |
|
|
595 |
|
|
(5,057 |
) |
|
Nucor Corp., Strike Price $41, |
|
|
1,200 |
|
|
(87,000 |
) |
|
Pfizer, Inc., Strike Price $21, Expires |
|
|
3,720 |
|
|
(16,740 |
) |
|
Raytheon Co., Strike Price $49, |
|
|
660 |
|
|
(3,300 |
) |
|
The Southern Co., Strike Price $40, |
|
|
950 |
|
|
(28,975 |
) |
|
Time Warner, Inc., Strike Price $37, |
|
|
1,230 |
|
|
(39,975 |
) |
|
Tyco International, Ltd., Strike Price |
|
|
365 |
|
|
(14,782 |
) |
|
Verizon Communications, Inc., Strike |
|
|
2,500 |
|
|
(10,000 |
) |
|
Wells Fargo & Co., Strike Price $29, |
|
|
935 |
|
|
(73,865 |
) |
|
|
|
|
|
|
|
(2,519,468 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK ENHANCED CAPITAL AND INCOME FUND, INC. |
JULY 31, 2011 |
2 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock Enhanced Capital and Income Fund, Inc. (CII) |
|
|
|
|
|
|
|
|
|
|
Options Written |
|
Notional |
|
|
|
||
|
Over-the-Counter Call Options — (0.4)% |
|
|
|
|
|
|
|
|
ACE, Ltd., Strike Price $64.10, |
|
$ |
46 |
|
$ |
(167,191 |
) |
|
Bristol-Myers Squibb Co., Strike Price |
|
|
523 |
|
|
(187,985 |
) |
|
CenturyLink, Inc., Strike Price |
|
|
72 |
|
|
(16,774 |
) |
|
Chevron Corp., Strike Price $101, |
|
|
149 |
|
|
(464,472 |
) |
|
Comcast Corp., Strike Price $22.87, |
|
|
250 |
|
|
(135,537 |
) |
|
E.I. du Pont de Nemours & Co., Strike |
|
|
54 |
|
|
(24,124 |
) |
|
Eli Lilly & Co., Strike Price $38.45, |
|
|
136 |
|
|
(102,895 |
) |
|
Emerson Electric Co., Strike Price |
|
|
86 |
|
|
(598 |
) |
|
Exxon Mobil Corp., Strike Price |
|
|
76 |
|
|
(61,881 |
) |
|
General Electric Co., Strike Price |
|
|
104 |
|
|
(21,514 |
) |
|
General Mills, Inc.: |
|
|
|
|
|
|
|
|
Strike Price $37.85, Expires |
|
|
65,000 |
|
|
(28,227 |
) |
|
Strike Price $38.50, Expires |
|
|
25,000 |
|
|
(5,479 |
) |
|
Halliburton Co., Strike Price $48.50, |
|
|
24 |
|
|
(149,520 |
) |
|
Honeywell International, Inc., Strike |
|
|
75 |
|
|
(20,710 |
) |
|
International Business Machines |
|
|
4 |
|
|
(57,073 |
) |
|
Invesco Ltd.: |
|
|
|
|
|
|
|
|
Strike Price $23.41, Expires |
|
|
105,000 |
|
|
(244 |
) |
|
Strike Price $23.41, Expires |
|
|
102,000 |
|
|
(6,197 |
) |
|
Johnson & Johnson, Strike Price D |
|
|
99 |
|
|
(17,799 |
) |
|
|
|
|
|
|
|
|
|
|
Options Written |
|
Notional |
|
Value |
|
||
|
Over-the-Counter Call Options (continued) |
|
|
|
|
|
|
|
|
Kraft Foods, Inc.: |
|
|
|
|
|
|
|
|
Strike
Price $34.30, Expires |
|
$ |
214,000 |
|
$ |
(91,239 |
) |
|
Strike
Price $35.20, Expires 9/09/11, |
|
|
2,000 |
|
|
(813 |
) |
|
LSI Corp.: |
|
|
|
|
|
|
|
|
Strike
Price $7.40, Expires |
|
|
216,000 |
|
|
(41,815 |
) |
|
Strike
Price $7.40, Expires |
|
|
216,000 |
|
|
(49,229 |
) |
|
Marathon Oil Corp., Strike Price |
|
|
124 |
|
|
(159,578 |
) |
|
Maxim Intergrated Products, Inc., |
|
|
196 |
|
|
(75,615 |
) |
|
Merck & Co., Inc., Strike Price |
|
|
127 |
|
|
(209 |
) |
|
Nextera Energy, Inc., Strike Price |
|
|
45 |
|
|
(15,101 |
) |
|
Nokia Oyj - ADR, Strike Price $6.50, |
|
|
75 |
|
|
(3,157 |
) |
|
Northrop Grumman Corp., Strike |
|
|
116 |
|
|
(16,797 |
) |
|
Pfizer, Inc., Strike Price $21.50, |
|
|
176 |
|
|
(23 |
) |
|
Public Service Enterprise Group, |
|
|
55 |
|
|
(68,387 |
) |
|
Raytheon Co., Strike Price $45.89, |
|
|
67 |
|
|
(39,308 |
) |
|
The Southern Co., Strike Price |
|
|
960 |
|
|
(384,605 |
) |
|
The Travelers Cos., Inc.: |
|
|
|
|
|
|
|
|
Strike
Price $59.19, Expires |
|
|
145,000 |
|
|
(24,388 |
) |
|
Strike
Price $57.98, Expires |
|
|
45,000 |
|
|
(16,473 |
) |
|
Time Warner, Inc., Strike Price $37, |
|
|
123 |
|
|
(51,371 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK ENHANCED CAPITAL AND INCOME FUND, INC. |
JULY 31, 2011 |
3 |
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock Enhanced Capital and Income Fund, Inc. (CII) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
Options Written |
|
Notional |
|
Value |
|
||
|
Over-the-Counter Call Options (concluded) |
|
|
|
|
|
|
|
|
Unilever NV – ADR: |
|
|
|
|
|
|
|
|
Strike
Price $32.95, Expires |
|
$ |
100,000 |
|
$ |
(35,476 |
) |
|
Strike
Price $33.49, Expires |
|
|
100,000 |
|
|
(39,069 |
) |
|
|
|
|
|
|
|
(2,580,873 |
) |
|
Total
Options Written |
|
|
|
|
|
(5,100,341 |
) |
|
Total Investments, Net of Outstanding |
|
|
|
|
$ |
613,171,847 |
|
|
Other Assets Less Liabilities – 2.5% |
|
|
|
|
|
16,015,486 |
|
|
Net Assets – 100.0% |
|
|
|
|
$ |
629,187,333 |
|
|
|
|
|
|
|
|
|
|
|
* |
The cost and unrealized appreciation (depreciation) of investments as of July 31, 2011, as computed for federal income tax purposes, were as follows: |
|
|
|
|
|
|
|
|
|
Aggregate cost |
|
$ |
707,759,549 |
|
|
|
Gross unrealized appreciation |
|
|
— |
|
|
|
Gross unrealized depreciation |
|
|
(89,487,361 |
) |
|
|
Net unrealized depreciation |
|
$ |
(89,487,361 |
) |
|
|
|
|
(a) |
Security, or portion thereof, pledged/held as collateral for outstanding options written. |
|
|
|
|
(b) |
Non-income producing security. |
|
|
|
|
(c) |
Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Affiliate |
|
Shares |
|
Net |
|
Shares |
|
Income |
|
||||
|
BlackRock Liquidity Funds, TempFund, Institutional Class |
|
|
11,668,594 |
|
|
16,684,567 |
|
|
28,353,161 |
|
$ |
25,632 |
|
|
|
|
|
(d) |
Represents the current yield as of report date. |
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK ENHANCED CAPITAL AND INCOME FUND, INC. |
JULY 31, 2011 |
4 |
|
|
|
|
|
|
|
Schedule of Investments (concluded) |
BlackRock Enhanced Capital and Income Fund, Inc. (CII) |
|
|
|
|
|
|
|
• |
For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. |
|
|
|
|
|
|
• |
Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized in three broad levels for financial reporting purposes as follows: |
|
|
|
|
|
|
|
• |
Level 1 — price quotations in active markets/exchanges for identical assets and liabilities |
|
|
|
|
|
|
• |
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) |
|
|
|
|
|
|
• |
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 and derivative financial instruments) |
The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.
The following tables summarize the inputs used as of July 31, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments1 |
|
$ |
589,919,027 |
|
|
— |
|
|
— |
|
$ |
589,919,027 |
|
|
Short-Term Securities |
|
|
28,353,161 |
|
|
— |
|
|
— |
|
|
28,353,161 |
|
|
Total |
|
$ |
618,272,188 |
|
$ |
— |
|
|
— |
|
$ |
618,272,188 |
|
|
|
|
|
1 |
See above Schedule of Investments for values in each industry. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Derivative Financial Instruments2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity contracts |
|
$ |
(2,519,468 |
) |
$ |
(2,580,873 |
) |
|
— |
|
$ |
(5,100,341 |
) |
|
|
|
|
2 |
Derivative financial instruments options, which are shown at value. |
|
|
|
|
|
|
|
|
|
|
|
|
BLACKROCK ENHANCED CAPITAL AND INCOME FUND, INC. |
JULY 31, 2011 |
5 |
|
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 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/ John M. Perlowski |
|
|
|
|
John M. Perlowski |
|
|
|
|
Chief Executive Officer (principal executive officer) of |
|
|
|
|
BlackRock Enhanced Capital and Income Fund, Inc. |
|
|
|
|
||
|
|
Date: September 26, 2011 |
||
|
|
|
||
|
|
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/ John M. Perlowski |
|
|
|
|
John M. Perlowski |
|
|
|
|
Chief Executive Officer (principal executive officer) of |
|
|
|
|
BlackRock Enhanced Capital and Income Fund, Inc. |
|
|
|
|
||
|
|
Date: September 26, 2011 |
||
|
|
|
||
|
|
By: | /s/ Neal J. Andrews |
|
|
|
|
Neal J. Andrews |
|
|
|
|
Chief Financial Officer (principal financial officer) of |
|
|
|
|
BlackRock Enhanced Capital and Income Fund, Inc. |
|
|
|
|
|
|
|
|
Date: September 26, 2011 |
||