-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, ITRa2df7033kfwFXol/Uv5Rk88IA+PpVMtKxHaEDbNcGtMtY3RtuErWXmv3gJVWN FX2I5jnXaN5ILaSctLzLUg== 0001047469-03-038928.txt : 20031202 0001047469-03-038928.hdr.sgml : 20031202 20031202160948 ACCESSION NUMBER: 0001047469-03-038928 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030930 FILED AS OF DATE: 20031202 EFFECTIVENESS DATE: 20031202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE INSURED MUNICIPAL BOND FUND II CENTRAL INDEX KEY: 0001196867 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21219 FILM NUMBER: 031032847 BUSINESS ADDRESS: STREET 1: EATON VANCE BLDG STREET 2: 255 STATE STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6174828260 FORMER COMPANY: FORMER CONFORMED NAME: EATON VANCE INSURED MUNICIPAL BOND FUND I DATE OF NAME CHANGE: 20021007 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE INSURED FLORIDA MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196870 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21222 FILM NUMBER: 031032854 BUSINESS ADDRESS: STREET 1: EATON VANCE BLDG STREET 2: 255 STATE STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6174828260 FORMER COMPANY: FORMER CONFORMED NAME: EATON VANCE INSURED FLORIDA MUNICIPAL BOND FUND I DATE OF NAME CHANGE: 20021007 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE INSURED PENNSYLVANIA MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196877 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21227 FILM NUMBER: 031032848 BUSINESS ADDRESS: STREET 1: EATON VANCE BLDG STREET 2: 255 STATE STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6174828260 FORMER COMPANY: FORMER CONFORMED NAME: EATON VANCE INSURED PENNSYLVANIA MUNICIPAL BOND FUND I DATE OF NAME CHANGE: 20021007 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND II CENTRAL INDEX KEY: 0001196869 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21217 FILM NUMBER: 031032855 BUSINESS ADDRESS: STREET 1: EATON VANCE BLDG STREET 2: 255 STATE STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6174828260 FORMER COMPANY: FORMER CONFORMED NAME: EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND I DATE OF NAME CHANGE: 20021007 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE INSURED MASSACHUSETTS MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196871 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21225 FILM NUMBER: 031032853 BUSINESS ADDRESS: STREET 1: EATON VANCE BLDG STREET 2: 255 STATE STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6174828260 FORMER COMPANY: FORMER CONFORMED NAME: EATON VANCE INSURED MASSACHUSETTS MUNICIPAL BOND FUND I DATE OF NAME CHANGE: 20021007 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196872 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21224 FILM NUMBER: 031032852 BUSINESS ADDRESS: STREET 1: EATON VANCE BLDG STREET 2: 255 STATE STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6174828260 FORMER COMPANY: FORMER CONFORMED NAME: EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND I DATE OF NAME CHANGE: 20021007 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE INSURED NEW JERSEY MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196874 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21229 FILM NUMBER: 031032851 BUSINESS ADDRESS: STREET 1: EATON VANCE BLDG STREET 2: 255 STATE STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6174828260 FORMER COMPANY: FORMER CONFORMED NAME: EATON VANCE INSURED NEW JERSEY MUNICIPAL BOND FUND I DATE OF NAME CHANGE: 20021007 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND II CENTRAL INDEX KEY: 0001196875 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21218 FILM NUMBER: 031032850 BUSINESS ADDRESS: STREET 1: EATON VANCE BLDG STREET 2: 255 STATE STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6174828260 FORMER COMPANY: FORMER CONFORMED NAME: EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND I DATE OF NAME CHANGE: 20021007 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE INSURED OHIO MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196876 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21226 FILM NUMBER: 031032849 BUSINESS ADDRESS: STREET 1: EATON VANCE BLDG STREET 2: 255 STATE STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6174828260 FORMER COMPANY: FORMER CONFORMED NAME: EATON VANCE INSURED OHIO MUNICIPAL BOND FUND I DATE OF NAME CHANGE: 20021007 N-CSR 1 a2122718zn-csr.txt N-CSR FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21219 Eaton Vance Insured Municipal Bond Fund II ------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) September 30 ------------ Date of Fiscal Year End September 30, 2003 ------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21217 Eaton Vance Insured California Municipal Bond Fund II ----------------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) September 30 ------------ Date of Fiscal Year End September 30, 2003 ------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21222 Eaton Vance Insured Florida Municipal Bond Fund ----------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) September 30 ------------ Date of Fiscal Year End September 30, 2003 ------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21225 Eaton Vance Insured Massachusetts Municipal Bond Fund ----------------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) September 30 ------------ Date of Fiscal Year End September 30, 2003 ------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21224 Eaton Vance Insured Michigan Municipal Bond Fund ------------------------------------------------ (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) September 30 ------------ Date of Fiscal Year End September 30, 2003 ------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-7230 Eaton Vance Insured New Jersey Municipal Bond Fund -------------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) September 30 ------------ Date of Fiscal Year End September 30, 2003 ------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21218 Eaton Vance Insured New York Municipal Bond Fund II --------------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) September 30 ------------- Date of Fiscal Year End September 30, 2003 ------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21226 Eaton Vance Insured Ohio Municipal Bond Fund -------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) September 30 ------------ Date of Fiscal Year End September 30, 2003 ------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21227 Eaton Vance Insured Pennsylvania Municipal Bond Fund ---------------------------------------------------- (Exact Name of Registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (Registrant's Telephone Number) September 30 ------------ Date of Fiscal Year End September 30, 2003 ------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS [EV LOGO] [PHOTO IMAGE] ANNUAL REPORT SEPTEMBER 30, 2003 [PHOTO IMAGE] EATON VANCE INSURED MUNICIPAL BOND FUNDS [PHOTO IMAGE] INSURED CALIFORNIA II INSURED MUNICIPAL II INSURED FLORIDA INSURED MASSACHUSETTS INSURED MICHIGAN INSURED NEW JERSEY INSURED NEW YORK II INSURED OHIO INSURED PENNSYLVANIA EATON VANCE FUNDS EATON VANCE MANAGEMENT BOSTON MANAGEMENT AND RESEARCH EATON VANCE DISTRIBUTORS, INC. PRIVACY NOTICE The Eaton Vance organization is committed to ensuring your financial privacy. This notice is being sent to comply with privacy regulations of the Securities and Exchange Commission. Each of the above financial institutions has in effect the following policy with respect to nonpublic personal information about its customers: - Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. - None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). - Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information. For more information about Eaton Vance's privacy policies, call: 1-800-262-1122. IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER DOCUMENTS The Securities and Exchange Commission (SEC) permits mutual funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called "householding" and it helps eliminate duplicate mailings to shareholders. EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL ADVISER, OTHERWISE. If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial adviser. Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial adviser. From time to time, mutual funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios vote proxies according to a set of policies and procedures approved by the Funds' and Portfolios' Boards. You may obtain a description of these policies and procedures without charge, upon request, by calling 1-800-262-1122. This description is also available on the Securities and Exchange Commission's website at http://www.sec.gov. EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2003 LETTER TO SHAREHOLDERS [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter President In our shareholder reports, we refer frequently to "quality spreads" and their important role in bond analysis. However, while followed closely by bond analysts and portfolio managers, this aspect of municipal bond investing is generally overlooked by individual investors. As part of our continuing educational series, we thought it might be instructive to discuss quality spreads and why they constitute a key variable for investors in the municipal bond market. QUALITY SPREADS: COMPENSATION FOR ADDED CREDIT RISK... The term "quality spread" refers to the difference in yields between bonds of varying quality but similar maturities. A bond rated BBB, for example, should have a higher yield than an insured bond rated AAA because investors who buy lower-quality bonds anticipate being paid for accepting a higher level of credit risk. That risk premium comes in the form of higher yields. Spreads are typically stated in basis points, or 1/100's of a percentage point. Thus, a bond yielding 5.00% trades at a spread of 100 basis points (1.00%) over a bond that yields 4.00%. SPREAD FLUCTUATIONS ARE INFLUENCED BY A VARIETY OF FACTORS... Spreads fluctuate with changes in market conditions, with many factors influencing spread relationships. The quality and type of bond are primary factors. For example, an insured general obligation rated AAA - with no credit risk - will trade at a significantly lower yield than a BBB-rated industrial bond, which has a significantly higher credit risk. Naturally, a bond's price will respond to changes that may impact - for better or worse - the underlying fundamentals of an issuer. Remember, bond yields move in the opposite direction of bond prices. Another factor that influences spreads is supply. Assuming stable demand, spreads are likely to widen if the supply for a specific issuer increases, as the market must now digest a larger volume of bonds. Similarly, if supply declines, spreads may narrow, as investors may be willing to pay more for a credit that is increasingly scarce. Finally, quality spreads may fluctuate with changes in the overall economy. For example, spreads tend to narrow as the economy strengthens and the revenue outlook improves. On the other hand, as the economy slows or enters recession, spreads tend to widen, as investors become increasingly worried about the direction of the economy and its impact on bonds with higher credit risk. SPREADS CONSTITUTE A KEY FACTOR IN INVESTMENT DECISIONS... Quality spreads play an important role in the investment decisions of municipal bond portfolio managers. The widening of spreads may suggest a developing opportunity. If spreads have widened appreciably, the investor may detect an unusual opportunity in a lower-quality, higher-yielding bond. Conversely, if lower-quality bonds have significantly outperformed high-quality bonds over a period, the resulting narrowing of spreads may signal the need for caution. This "spread compression" may prompt portfolio managers to upgrade their portfolios with higher-quality bonds because they are no longer being adequately compensated for the risk of owning lower-quality bonds. While quality spreads are a key metric for municipal bond investors, they represent just one of many factors considered in establishing a diversified bond portfolio. At Eaton Vance, we realize that complex markets require intensive research, a need that emphasizes once again the value of experienced, professional portfolio management. Sincerely, /s/ Thomas J. Fetter Thomas J. Fetter President November 5, 2003 SHARES OF THE FUNDS ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED. YIELDS WILL VARY. 2 MARKET RECAP While the pace of job growth was disappointing, the U.S. economy improved noticeably in the year ended September 30, 2003. The passage of significant tax legislation appeared to give consumer spending a boost. Capital spending, which has lagged the recovery rate of past expansions, was at last showing signs of recovery in late summer and early fall, as manufacturers of industrial equipment reported stronger orders. TECHNOLOGY, RETAILING AND CONSTRUCTION HAVE LED THE ECONOMY IN THE EARLY STAGES OF RECOVERY... A beginning recovery was evident in several key sectors of the economy. Technology companies, especially semiconductor manufacturers and suppliers, have reported robust demand. The manufacturing sector also saw a pickup in activity, with industrial segments, such as machine tools, faring well, as factories began to refit their plants. The retail sector - with the exception of weak auto sales - - was very strong, as consumer confidence rose and tax cuts filtered into consumers' pockets. Despite a rise in mortgage rates, residential construction maintained its strong momentum, although the commercial side was quite sluggish. WITH SLOW JOB GROWTH AND MANAGEABLE INFLATION, THE FEDERAL RESERVE HAS KEPT INTEREST RATES LOW... Gross Domestic Product expanded 3.3% in the second quarter of 2003, followed by a 7.2% rise in the third quarter. However, despite the rebounding economy, the labor market remained stagnant through much of the year - the nation's jobless rate was 6.1% in September 2003. While large employers were slow to rehire, the pace of layoffs slowed considerably. Job growth was stronger among temporary agencies and smaller firms, which have generated the lion's share of new jobs in recent years. Core inflation has generally been contained. Prices for finished goods, consumer staples and services have seen little change. However, prices for some commodities have witnessed a sharp rise, including lumber, plywood, steel and natural gas. Meanwhile, gasoline prices, which spiked dramatically during the prime summer driving season, have since fallen back slightly. With inflation largely held at bay, the Federal Reserve has maintained an accommodative monetary policy. The Fed lowered its Federal Funds rate - a key short-term interest rate barometer - to 1.00% in June. [CHART] Municipal bond yields exceeded Treasury yields 30-Year AAA-rated General Obligation (GO) Bonds* 4.97% Taxable equivalent yield in 35.0% tax bracket 7.65% 30-Year Treasury Bond 4.87%
Principal and interest payments of Treasury securities are guaranteed by the U.S. government. * GO yields are a compilation of a representative variety of general obligations and are not necessarily representative of a Fund's yield. Statistics as of September 30, 2003. Past performance is no guarantee of future results. Source: Bloomberg, L.P. However, while the decline in short-term interest rates helped revive the stock market, longer-term interest rates moved slightly higher, prompting a bond market pullback. Ten-year Treasury bond yields - which were at 3.59% at September 30, 2002 - rose to 3.93% by September 30, 2003 in response to a reviving economy. The Lehman Brothers Municipal Bond Index had a total return of 3.89% for the year ended September 30, 2003.* FACING RISING BUDGET SHORTFALLS, BELEAGUERED STATES HAVE BEEN FORCED TO RAISE TAXES... Despite lower federal tax rates, the rationale for tax-exempt income has remained intact. Many state governments have enacted income tax hikes and fee increases to make up for revenue shortfalls and budget deficits. Thus, while one portion of the tax burden has fallen, another portion has grown more onerous for many taxpayers. For that reason, we believe that municipal bonds will continue to present interesting investment opportunities and to merit a place in the portfolios of tax-conscious investors. * It is not possible to invest directly in an Index. THE VIEWS EXPRESSED THROUGHOUT THIS REPORT ARE THOSE OF THE VARIOUS PORTFOLIO MANAGERS AND ARE CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER. THESE VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS, AND EATON VANCE DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE INVESTMENT DECISIONS FOR AN EATON VANCE FUND ARE BASED ON MANY FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY EATON VANCE FUND. 3 EATON VANCE INSURED MUNICIPAL BOND FUND II as of September 30, 2003 INVESTMENT UPDATE [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT UPDATE - - The U.S. economy gathered new momentum in 2003. Consumer-based sectors, such as retail, have mounted a recovery, housing remains relatively strong and manufacturing appears to be on the mend in many sections of the Thomas J. Fetter nation. The nation's jobless rate Portfolio Manager was 6.1% in September 2003, up from 5.6% a year ago. - - Insured* transportation bonds remained the Fund's largest sector weighting at September 30, 2003. Investments included bonds that funded a broad range of transportation projects, including monorails, rapid transit, toll bridges, tunnels, highways and turnpike authorities. - - Insured* water and sewer issues were large commitments for the Fund. Major cities such as Atlanta and Houston have experienced rapid population growth. The resulting "urban sprawl" has dramatically increased the need for water facilities and produced additional opportunities in water and sewer bonds. - - Insured* general obligations (GOs) were a significant investment. With state and local jurisdictions encountering revenue shortfalls and worsening budget crises, the risk of downgrades has risen commensurately. Insured* GOs represented high quality and a partial refuge from those pressures. - - Insured* special tax revenue bonds constituted a major investment. These issues provide communities a financing mechanism for public programs, such as utilities and transportation facilities. FUND STATISTICS(1) - - Number of Issues: 53 - - Effective Maturity: 11.5 years - - Average Rating: AAA - - Average Call: 10.9 years - - Average Dollar Price: $91.97
THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 2.67% for the period from inception on November 29, 2002 through September 30, 2003. That return was the result of a decrease in share price from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.00 on September 30, 2003, and the reinvestment of $0.714 in regular monthly dividends.(3) - - Based on net asset value, the Fund had a total return of 8.46% for the period ended September 30, 2003. That return was the result of an increase in net asset value from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.79 on September 30, 2003, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.00, the Fund had a market yield of 6.81% at September 30, 2003.(4) The Fund's market yield is equivalent to a taxable yield of 10.48%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 86.3% AA 5.6% A 7.2% Non-Rated 0.9%
For federal income tax purposes, 100% of the total dividends paid by the Fund from net investment income during the period ended September 30, 2003 was designated as an exempt interest dividend. FUND INFORMATION as of September 30, 2003 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) Life of Fund (11/29/02) 2.67% Average Annual Total Return (by net asset value) Life of Fund (11/29/02) 8.46%
[CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - Transportation* 36.6% Insured - Water & Sewer* 22.3% Insured - General Obligations* 17.2% Insured - Special Tax Revenue 12.0% Insured - Utilities* 10.7%
- ---------- (1) Fund Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (3) A portion of the Fund's income may be subject to federal income tax. Income may be subject to state tax. (4) The Fund's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent yield assumes maximum 35.00% federal income tax rate. A lower rate would result in a lower tax-equivalent figure. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 4 EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND II as of September 30, 2003 INVESTMENT UPDATE [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT UPDATE - - The California economy showed signs of a rebound in 2003, although the pace of recovery remained slow. Health care, hospitality and residential construction were the major sources of new jobs. Manufacturing remained slug-with technology still slow to gain traction. The state's September 2003 jobless rate was 6.4%, down from 6.7% a year ago. - - Given the state's difficult financial situation, management focused intently on maintaining superior credit quality. The Fund had its largest sector weighting in insured* general obligations (GOs), which provided secure income together with diversification among state, city and county issues. - - Insured* lease revenue/certificates of participation bonds were significant holdings. These instruments are used issuers to provide lease financing for various municipal projects. The economies of scale of a pooled issue can provide low fixed-rate interest costs, an attractive feature for municipal borrowers. - - Insured* transportation bonds played a prominent role in the Fund. The state continues to upgrade its highway system and terminal facilities to meet changing needs. The Fund's holdings included issues for toll bridges and airport authorities. - - Management had large investments in essential services bonds, including insured* sewer revenue issues. These issues funded sewer and wastewater facilities, key projects for California's growing population. FUND STATISTICS(1) - - Number of Issues: 45 - - Effective Maturity: 9.5 years - - Average Rating: AAA - - Average Call: 8.9 years - - Average Dollar Price: $95.42
THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 1.06% for the period from inception on November 29, 2002 through September 30, 2003. That return was the result of a decrease in share price from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $13.80 on September 30, 2003, and the reinvestment of $0.675 in regular monthly dividends.(3) - - Based on net asset value, the Fund had a total return of 6.62% for the period ended September 30, 2003. That return was the result of an increase in net asset value from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.56 on September 30, 2003, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $13.80, the Fund had a market yield of 6.52% at September 30, 2003.(4) The Fund's market yield is equivalent to a taxable yield of 11.06%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 95.3% AA 2.8% A 1.9%
For federal income tax purposes, 100% of the total dividends paid by the Fund from net investment income during the period ended September 30, 2003 was designated as an exempt interest dividend. FUND INFORMATION as of September 30, 2003 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) Life of Fund (11/29/02) 1.06% Average Annual Total Return (by net asset value) Life of Fund (11/29/02) 6.62%
[CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - General Obligations* 31.2% Insured - Lease Revenue/COPs* 20.9% Insured - Transportation* 18.3% Insured - Special Assessment Revenue* 18.0% Insured - Sewer Revenue 16.4%
- ---------- (1) Fund Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (3) A portion of the Fund's income may be subject to federal income tax. Income may be subject to state tax. (4) The Fund's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent yield assumes maximum 41.05% combined federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 5 EATON VANCE INSURED FLORIDA MUNICIPAL BOND FUND as of September 30, 2003 INVESTMENT UPDATE [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT UPDATE - - Florida again led the region in job creation in 2003. The service sector remained strong, paced by health care and education, while high gas prices slightly hurt the tourism sector. Construction continued to generate new jobs, as single-family homebuilding benefited from still- interest rates. The state's jobless rate was 5.2% in September 2003, down from 5.4% a year ago. - - Insured* special tax revenue bonds were the Fund's largest sector weighting at September 30, 2003. These issues provided a financing alternative for a diverse range of facilities for Florida cities and towns faced with the infrastructure needs of growing communities. - - The Fund also had investments in insured* miscellaneous, or non-sector-specific, bonds that funded key projects in the state. Holdings included issues that provided sport franchise financing, bonds that aided county tourism development and an issue that provided funding for improvements to county transportation facilities. - - The Fund was selective within the hospital sector, given the industry's competitive pressures. Management focused on insured* issues of well-managed facilities with sound financial fundamentals. - - Insured* general obligations (GOs) represented another investment area of very high quality. Selected issues of the state board of education and municipal loan council provided investments insulated from economic fluctuations and high quality profiles. FUND STATISTICS(1) - - Number of Issues: 46 - - Effective Maturity: 11.9 years - - Average Rating: AAA - - Average Call: 10.4 years - - Average Dollar Price: $99.41
THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 3.08% for the period from inception on November 29, 2002 through September 30, 2003. That return was the result of a decrease in share price from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.10 on September 30, 2003, and the reinvestment of $0.675 in regular monthly dividends.(3) - - Based on net asset value, the Fund had a total return of 6.37% for the period ended September 30, 2003. That return was the result of an increase in net asset value from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.55 on September 30, 2003, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.10, the Fund had a market yield of 6.38% at September 30, 2003.(4) The Fund's market yield is equivalent to a taxable yield of 9.82%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 90.4% AA 7.8% A 1.8%
For federal income tax purposes, 100% of the total dividends paid by the Fund from net investment income during the period ended September 30, 2003 was designated as an exempt interest dividend. FUND INFORMATION as of September 30, 2003 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) Life of Fund (11/29/02) 3.08% Average Annual Total Return (by net asset value) Life of Fund (11/29/02) 6.37%
[CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - Special Tax Revenue* 36.0% Insured - Miscellaneous* 22.7% Insured - Hospital* 18.6% Insured - General Obligations* 14.5% Insured - Transportation* 8.7%
- ---------- (1) Fund Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (3) A portion of the Fund's income may be subject to federal income tax. Income may be subject to state intangibles tax. (4) The Fund's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent yield assumes maximum 35.00% federal and state intangibles tax rate. A lower rate would result in a lower tax-equivalent figure. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 6 EATON VANCE INSURED MASSACHUSETTS MUNICIPAL BOND FUND as of September 30, 2003 INVESTMENT UPDATE [PHOTO OF ROBERT B. MacINTOSH] Robert B. MacIntosh Portfolio Manager MANAGEMENT UPDATE - - The Massachusetts economy has improved in recent months, as rising demand for technology products and improving financial markets have boosted the state's leading industries. The construction sector has been supported by a strong housing market. The state's September 2003 jobless rate was 5.7%, up from 5.5% a year ago. - - Insured* private education bonds remained the Fund's largest sector weighting at September 30, 2003. Massachusetts is home to some of the nation's leading universities, which enjoy consistently strong applicant demand, sound underlying fundamentals and a reputation as high quality issuers. - - Insured general obligations (GOs)* were a large investment for the Fund. In addition to state GOs, the Fund's investments focused on cities and towns with a strong tax base and sound economic underpinning, two key determinants for investors in general obligations. - - Insured* lease revenue/certificates of participation (COPs) constituted significant investments. Pooled COPs and lease revenue bonds finance purchase of equipment and facilities and are secured by individual lease transactions for each borrower. - - Management used Puerto Rico bonds to add further diversification to the Fund. The Fund's Puerto Rico investments included insured* general obligations, as well as issues that financed electric utilities, highways, and municipal finance and public building authorities. FUND STATISTICS(1) - - Number of Issues: 35 - - Effective Maturity: 11.8 years - - Average Rating: AAA - - Average Call: 9.8 years - - Average Dollar Price: $98.68
THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 5.61% for the period from inception on November 29, 2002 through September 30, 2003. That return was the result of an increase in share price from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.45 on September 30, 2003, and the reinvestment of $0.675 in regular monthly dividends.(3) - - Based on net asset value, the Fund had a total return of 7.22% for the period ended September 30, 2003. That return was the result of an increase in net asset value from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.67 on September 30, 2003, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.45, the Fund had a market yield of 6.23% at September 30, 2003.(4) The Fund's market yield is equivalent to a taxable yield of 10.12%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 88.1% AA 7.4% A 1.8% BBB 2.7%
For federal income tax purposes, 100% of the total dividends paid by the Fund from net investment income during the period ended September 30, 2003 was designated as an exempt interest dividend. FUND INFORMATION as of September 30, 2003 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) Life of Fund (11/29/02) 5.61% Average Annual Total Return (by net asset value) Life of Fund (11/29/02) 7.22%
[CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - Private Education* 35.1% Insured - General Obligations* 25.1% Insured - Lease Revenue/COPs* 15.3% Private Education 13.2% Insured - Hospital* 11.6%
- ---------- (1) Fund Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (3) A portion of the Fund's income may be subject to federal income tax. Income may be subject to state tax. (4) The Fund's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent yield assumes maximum combined 38.45% federal and state income tax rate. A lower rate would result in a lower tax-equivalent figure. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 7 EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND as of September 30, 2003 INVESTMENT UPDATE [PHOTO OF WILLIAM H. AHERN] William H. Ahern Portfolio Manager MANAGEMENT UPDATE - - Michigan's economy generated modest but uneven growth in 2003. Some manufacturing segments have reported increased activity, although production in the state's key auto industry was running around 4% below last year. Residential construction remained strong, however, boosted by record low interest rates. The state's September 2003 jobless rate was 7.4%, up from 6.1% a year ago. - - Insured* general obligations (GOs) constituted the Fund's largest sector weighting at September 30, 2003. With some Michigan municipalities suffering shortfalls in sales tax receipts, insured* GOs provided some insulation from revenue-related uncertainties. - - The Fund had significant investments in hospital bonds. Management remained very selective, focusing on the more competitive institutions, with favorable cost structures, in-demand care specialties and strategic alliances with other hospitals. - - The Fund maintained an exposure to essential services bonds, including insured* water and sewer issues. Because the revenues for these issues are based on fees and water payments, they are considered less subject to economic fluctuations. - - The Fund continued to emphasize diversification. Management found additional opportunities for diversification in selected Puerto Rico bonds, including general obligations and building authority bonds. FUND STATISTICS(1) - - Number of Issues: 33 - - Effective Maturity: 10.6 years - - Average Rating: AAA - - Average Call: 9.8 years - - Average Dollar Price: $93.57
THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 5.31% for the period from inception on November 29, 2002 through September 30, 2003. That return was the result of an increase in share price from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.41 on September 30, 2003, and the reinvestment of $0.675 in regular monthly dividends.(3) - - Based on net asset value, the Fund had a total return of 6.12% for the period ended September 30, 2003. That return was the result of an increase in net asset value from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.52 on September 30, 2003, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.41, the Fund had a market yield of 6.25% at September 30, 2003.(4) The Fund's market yield is equivalent to a taxable yield of 10.02%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 82.1% AA 4.4% A 13.5%
For federal income tax purposes, 100.00% of the total dividends paid by the Fund from net investment income during the period ended September 30, 2003 was designated as an exempt interest dividend. FUND INFORMATION as of September 30, 2003 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) Life of Fund (11/29/02) 5.31% Average Annual Total Return (by net asset value) Life of Fund (11/29/02) 6.12%
[CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - General Obligations* 39.1% Hospital 22.9% Insured - Special Tax Revenue* 16.2% Insured - Public Education* 15.1% Insured - Lease Revenue/COPs* 12.6%
- ---------- (1) Fund Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (3) A portion of the Fund's income may be subject to federal income tax. Income may be subject to state tax. (4) The Fund's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent yield assumes maximum 37.60% federal income tax rate. A lower rate would result in a lower tax-equivalent figure. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 8 EATON VANCE INSURED NEW JERSEY MUNICIPAL BOND FUND as of September 30, 2003 INVESTMENT UPDATE [PHOTO OF ROBERT B. MACINTOSH] Robert B. MacIntosh Portfolio Manager MANAGEMENT UPDATE - - The New Jersey economy showed signs of recovery in 2003, as earlier weakness gave way to growing optimism from employers and increased spending by business. Health care and business services each remained a major source of new employment. The state's September 2003 jobless rate was 5.8%, down from 6.0% a year ago. - - Insured* general obligations (GOs) represented the Fund's largest sector weighting at September 30, 2003. The Fund's investments focused on GOs of cities and townships we believe are in sound financial condition and have relatively strong economic fundamentals. - - Insured* public education bonds were prominent investments for the Fund. In addition to bonds for the state universities, the Fund has investments in issues that funded community colleges and the state's medical and dentistry school. - - Insured* transportation bonds were major components of the Fund. The Portfolio's investments included issuers that have responsibility for aviation, highways and port facilities in the southern counties of New Jersey, as well as similar facilities in the metropolitan New York area. - - Lease revenue/certificates of participation (COPs) were notable investments. These bonds provided flexible and cost effective financing for a range of New Jersey issuers, including preservation projects and the state's building authority. FUND STATISTICS(1) - - Number of Issues: 38 - - Effective Maturity: 12.0 years - - Average Rating: AAA - - Average Call: 11.1 years - - Average Dollar Price: $92.49
THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 6.14% for the period from inception on November 29, 2002 through September 30, 2003. That return was the result of an increase in share price from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.52 on September 30, 2003, and the reinvestment of $0.675 in regular monthly dividends.(3) - - Based on net asset value, the Fund had a total return of 7.89% for the period ended September 30, 2003. That return was the result of an increase in net asset value from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.76 on September 30, 2003, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.52, the Fund had a market yield of 6.20% at September 30, 2003.(4) The Fund's market yield is equivalent to a taxable yield of 10.19%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 84.6% AA 6.3% A 8.1% BBB 1.0%
For federal income tax purposes, 100.00% of the total dividends paid by the Fund from net investment income during the period ended September 30, 2003 was designated as an exempt interest dividend. FUND INFORMATION as of September 30, 2003 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) Life of Fund (11/29/02) 6.14% Average Annual Total Return (by net asset value) Life of Fund (11/29/02) 7.89%
[CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - General Obligations* 34.0% Insured - Public Education* 27.7% Insured - Transportation* 17.1% Insured - Lease Revenue/COPs* 16.4% Transportation 15.6%
- ---------- (1) Fund Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (3) A portion of the Fund's income may be subject to federal income tax. Income may be subject to state tax. (4) The Fund's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent yield assumes maximum 39.14% federal income tax rate. A lower rate would result in a lower tax-equivalent figure. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 9 EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND II as of September 30, 2003 INVESTMENT UPDATE [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT UPDATE - - The New York economy has showed positive trends in 2003. The mid-August power outage had only a minor impact on economic activity, mainly on retailers and temporary agencies. Manufacturing and port activity improved, while housing and hospitality markets remained strong. The state's September 2003 jobless rate was 6.4%, up from 6.0% a year ago. - - The Fund's insured* transportation bonds were the Fund's largest weighting at September 30, 2003 and included several segments of the state's transportation complex, including bonds for bridges and tunnels, the New York and New Jersey port authority and the New York City mass transit authority. - - While insured* hospital bonds constituted a large Fund weighting, management was very selective within the sector. In a very competitive market, the Fund focused on the state's top tier institutions, including New York Presbyterian Hospital and Memorial Sloan-Kettering. - - Insured* private education bonds bonds were attractive for their stable tuition revenues and included some of the state's most esteemed institutions, such as Fordham University, University of Rochester and Brooklyn Law School. - - The Fund has continued to pursue broad diversification by sector, issuer and coupon distribution. In addition, call protection remained a prime strategic consideration. FUND STATISTICS(1) - - Number of Issues: 41 - - Effective Maturity: 11.2 years - - Average Rating: AA+ - - Average Call: 9.4 years - - Average Dollar Price: $96.55
THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 0.38% for the period from inception on November 29, 2002 through September 30, 2003. That return was the result of a decrease in share price from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $13.71 on September 30, 2003, and the reinvestment of $0.686 in regular monthly dividends.(3) - - Based on net asset value, the Fund had a total return of 8.87% for the period ended September 30, 2003. That return was the result of an increase in net asset value from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.87 on September 30, 2003, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $13.71, the Fund had a market yield of 6.68% at September 30, 2003.(4) The Fund's market yield is equivalent to a taxable yield of 11.14%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 83.8% AA 6.8% A 4.7% BBB 3.0% Non-Rated 1.7%
For federal income tax purposes, 100% of the total dividends paid by the Fund from net investment income during the period ended September 30, 2003 was designated as an exempt interest dividend. FUND INFORMATION0 as of September 30, 2003 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) Life of Fund (11/29/02) 0.38% Average Annual Total Return (by net asset value) Life of Fund (11/29/02) 8.87%
[CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - Transportation* 18.6% Insured - Hospital* 18.5% Insured - Private Education* 18.4% Insured - Lease Revenue/COPs* 16.3% Insured - Public Education* 15.9%
- ---------- (1) Fund Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (3) A portion of the Fund's income may be subject to federal income tax. Income may be subject to state tax. (4) The Fund's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent yield assumes maximum 40.01% federal income tax rate. A lower rate would result in a lower tax-equivalent figure. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 10 EATON VANCE INSURED OHIO MUNICIPAL BOND FUND as of September 30, 2003 INVESTMENT UPDATE [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT UPDATE - - Ohio's economy enjoyed increased activity in 2003. Manufacturing saw rising production levels, although the key steel and auto segments were disappointing. Homebuilding remained strong and commercial construction - a laggard to date - showed sporadic signs of a renewal. The state's September 2003 jobless rate was 5.8%, up from 5.6% a year ago. - - Insured* general obligations (GOs) were the Fund's largest sector weighting at September 30, 2003. School district bonds remained the prime source of new GO issuance, providing income opportunities in high quality investments. - - The Fund had large investments in insured* public education bonds, which we deemed attractive for their stable revenues and ability to raise tuition. Among the investments were issues for some of Ohio's major universities, including Ohio University and University of Cincinnati. - - Insured* transportation bonds were a significant commitment for the Fund. The largest such investment was an issue for Cleveland's airport system. The Cleveland airport, which has outperformed its regional peers with respect to on-time departures and arrivals, is currently undergoing a $1.4 billion expansion. - - Insured* special tax revenue bonds represented a major focus. Investments included bonds issued to finance projects in Hamilton County, as well as some Puerto Rico infrastructure financing authority bonds. FUND STATISTICS(1) - - Number of Issues: 38 - - Effective Maturity: 11.4 years - - Average Rating: AAA - - Average Call: 10.3 years - - Average Dollar Price: $93.69
THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 5.46% for the period from inception on November 29, 2002 through September 30, 2003. That return was the result of an increase in share price from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.43 on September 30, 2003, and the reinvestment of $0.675 in regular monthly dividends.(3) - - Based on net asset value, the Fund had a total return of 6.85% for the period ended September 30, 2003. That return was the result of an increase in net asset value from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.62 on September 30, 2003, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.43, the Fund had a market yield of 6.24% at September 30, 2003.(4) The Fund's market yield is equivalent to a taxable yield of 10.38%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 82.5% AA 11.2% A 3.1% Non-Rated 3.2%
For federal income tax purposes, 100% of the total dividends paid by the Fund from net investment income during the period ended September 30, 2003 was designated as an exempt interest dividend. FUND INFORMATION as of September 30, 2003 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) Life of Fund (11/29/02) 5.46% Average Annual Total Return (by net asset value) Life of Fund (11/29/02) 6.85%
[CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - General Obligations* 55.2% Insured - Public Education* 16.2% Insured - Transportation* 15.7% Insured - Special Tax Revenue* 14.9% Insured - Lease Revenue/COPs* 12.3%
- ---------- (1) Fund Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (3) A portion of the Fund's income may be subject to federal income tax. Income may be subject to state tax. (4) The Fund's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent yield assumes maximum 39.88% federal income tax rate. A lower rate would result in a lower tax-equivalent figure. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 11 EATON VANCE INSURED PENNSYLVANIA MUNICIPAL BOND FUND as of September 30, 2003 INVESTMENT UPDATE [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT UPDATE - - The Pennsylvania economy has showed improvement in 2003. The service sector provided the largest source of new jobs, especially in health care, government and leisure. Manufacturing remained sluggish, although it fared better in Pennsylvania than in many other states. The Commonwealth's September 2003 jobless rate was 5.3%, down from 5.7% a year ago. - - Insured* general obligations (GOs) were the Fund's largest investments at September 30, 2003. Insured* GOs provided the quality prized by investors, as a slow recovery made many investors leery of some economically-sensitive issuers. - - The Fund's insured* transportation bonds represented a significant investment. The largest investment was in Pennsylvania Turnpike Commission bonds, which helped fund the Commission's efforts to modernize the 541-mile turnpike, improve traffic flow patterns and create a more efficient toll collection system. - - Insured* private education bonds remained a prime focus of the Fund. Investments included issues that financed projects for some of the state's well-known universities, as well as private secondary schools and institutions for career and technical training. - - The the Fund's investments were further diversified through selective purchases of Puerto Rico bonds. The Fund's Puerto Rico holdings included general obligations, as well as issues that funded electric power and transportation projects. FUND STATISTICS(1) - - Number of Issues: 47 - - Effective Maturity: 10.2 years - - Average Rating: AAA - - Average Call: 8.4 years - - Average Dollar Price: $97.94
THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 4.80% for the period from inception on November 29, 2002 through September 30, 2003. That return was the result of an increase in share price from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.33 on September 30, 2003, and the reinvestment of $0.681 in regular monthly dividends.(3) - - Based on net asset value, the Fund had a total return of 6.63% for the period ended September 30, 2003. That return was the result of an increase in net asset value from $14.325 (net of sales load of $0.675 per share) on November 29, 2002 to $14.58 on September 30, 2003, and the reinvestment of all distributions. - - Based on the most recent dividend and a share price of $14.33, the Fund had a market yield of 6.33% at September 30, 2003.(4) The Fund's market yield is equivalent to a taxable yield of 10.02%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments AAA 94.1% A 5.4% BBB 0.5%
For federal income tax purposes, 100% of the total dividends paid by the Fund from net investment income during the period ended September 30, 2003 was designated as an exempt interest dividend. FUND INFORMATION as of September 30, 2003 PERFORMANCE(6) Average Annual Total Return (by share price, American Stock Exchange) Life of Fund (11/29/02) 4.80% Average Annual Total Return (by net asset value) Life of Fund (11/29/02) 6.63%
[CHART] FIVE LARGEST CATEGORIES(1) By net assets applicable to common shares Insured - General Obligations* 43.6% Insured - Transportation* 23.9% Insured - Private Education* 20.9% Insured - Special Tax Revenue* 14.3% Insured - Water & Sewer* 14.0%
- ---------- (1) Fund Statistics, Rating Distribution and Five Largest Categories are subject to change. (2) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (3) A portion of the Fund's income may be subject to federal income tax. Income may be subject to state tax. (4) The Fund's market yield is calculated by dividing the most recent dividend per share by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent yield assumes maximum 36.82% federal income tax rate. A lower rate would result in a lower tax-equivalent figure. (6) Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributionsreinvested. * Private insurance does not remove the risk of loss of principal associated with insured investments due to changes in market conditions. Past performance is no guarantee of future results. Investment return and share price will fluctuate so that shares, when sold, may be worth more or less than their original cost. 12 INSURED MUNICIPAL BOND FUND II as of September 30, 2003 PORTFOLIO OF INVESTMENTS Tax-Exempt Investments -- 160.6%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 8.9% $ 5,750 California, 5.25%, 4/1/30 $ 5,779,325 6,500 New York City, NY, 5.25%, 1/15/33 6,578,130 1,500 North Carolina, Variable Rate, 3/1/28(1)(2) 720,480 - ----------------------------------------------------------------------------------------------------- $ 13,077,935 - ----------------------------------------------------------------------------------------------------- HOSPITAL -- 6.2% $ 2,000 Cuyahoga County, OH, (Cleveland Clinic Health System), 5.50%, 1/1/29 $ 2,049,120 2,500 Lehigh County, PA, General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32 2,454,300 4,500 South Miami, FL, Health Facility Authority, (Baptist Health), 5.25%, 11/15/33 4,531,050 - ----------------------------------------------------------------------------------------------------- $ 9,034,470 - ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 9.7% $ 22,685 Chelan County, WA, Public Utility District No. 1, (Columbia River), (MBIA), 0.00%, 6/1/23 $ 7,655,053 3,500 Forsyth, MT, PCR, (Puget Sound Energy), (AMBAC), 5.00%, 3/1/31 3,543,820 3,000 Nebraska Public Power District, (AMBAC), 5.00%, 1/1/35 3,033,960 - ----------------------------------------------------------------------------------------------------- $ 14,232,833 - ----------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 6.3% $ 8,210 Jefferson County, AL, Sewer, (FGIC), Prerefunded to 8/1/12, 5.00%, 2/1/38 $ 9,233,623 - ----------------------------------------------------------------------------------------------------- $ 9,233,623 - ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 17.2% $ 1,640 California, (XLCA), Variable Rate, 10/1/28(2)(3) $ 1,702,254 10,000 Chicago, IL, Board of Education, (FGIC), 0.00%, 12/1/23 3,488,600 5,700 Chicago, IL, Board of Education, (FSA), 5.00%, 12/1/31 5,747,139 8,330 King County, WA, (MBIA), 5.25%, 1/1/34 8,568,238 2,080 Philadelphia, PA, (FSA), Variable Rate, 9/15/31(2)(3) 2,139,800 10,000 Washington, (Motor Vehicle Fuel), (MBIA), 0.00%, 12/1/23 3,502,300 - ----------------------------------------------------------------------------------------------------- $ 25,148,331 - ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 3.7% $ 1,800 Maine Health and Higher Educational Facilities Authority, (MBIA), 5.00%, 7/1/32 $ 1,817,856 $ 3,000 Maryland HEFA, Medlantic, (FSA), Variable Rate, 8/15/38(2)(3) $ 3,626,040 - ----------------------------------------------------------------------------------------------------- $ 5,443,896 - ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 2.9% $ 4,250 Massachusetts Development Finance Agency, (MBIA), 5.125%, 2/1/34 $ 4,322,675 - ----------------------------------------------------------------------------------------------------- $ 4,322,675 - ----------------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 3.7% $ 2,500 Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59 $ 2,805,875 2,500 Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33 2,562,125 - ----------------------------------------------------------------------------------------------------- $ 5,368,000 - ----------------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 3.3% $ 3,510 Passaic Valley, NJ, Sewer Commissioners, (FGIC), 2.50%, 12/1/32 $ 2,294,838 2,575 Tacoma, WA, Sewer Revenue, (FGIC), 5.00%, 12/1/31 2,594,570 - ----------------------------------------------------------------------------------------------------- $ 4,889,408 - ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 12.0% $ 12,000 Metropolitan Pier and Exposition Authority, (McCormick Place Expansion), IL, (MBIA), 0.00%, 6/15/32 $ 2,556,000 11,000 Metropolitan Pier and Exposition Authority, (McCormick Place Expansion), IL, (MBIA), 0.00%, 12/15/25 3,376,120 4,000 Metropolitan Pier and Exposition Authority, (McCormick Place Expansion), IL, (MBIA), 5.25%, 6/15/42 4,123,680 2,165 San Jose, CA, Redevelopment Agency Tax, (MBIA), Variable Rate, 8/1/32(2)(3) 2,233,804 5,325 Utah Transportation Authority Sales Tax, (FSA), 5.00%, 6/15/32 5,383,362 - ----------------------------------------------------------------------------------------------------- $ 17,672,966 - ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 36.6% $ 4,000 California Infrastructure and Economic Development, (Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/33 $ 4,056,760 4,000 Chicago, IL, Transportation, (Skywalk), (AMBAC), 5.25%, 1/1/31 4,136,320 1,250 Dallas, TX, Area Rapid Transportation Sales Tax, (AMBAC), 5.00%, 12/1/31 1,261,175 11,900 E-470 Public Highway Authority, CO, (MBIA), 0.00%, 9/1/22 4,572,456
See notes to financial statements. 13
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION (CONTINUED) $ 12,390 E-470 Public Highway Authority, CO, (MBIA), 0.00%, 9/1/24 $ 4,114,223 3,835 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), Variable Rate, 1/1/37(2)(3) 3,905,411 13,885 Nevada Department of Business and Industry, (Las Vegas Monorail-1st Tier), (AMBAC), 0.00%, 1/1/20 6,242,141 5,000 South Carolina Transportation Infrastructure, (AMBAC), 5.25%, 10/1/31 5,180,000 10,000 Texas Turnpike Authority, (AMBAC), 5.00%, 8/15/42 10,058,500 10,000 Triborough Bridge and Tunnel Authority, NY, (MBIA), 5.00%, 11/15/32 10,134,800 - ----------------------------------------------------------------------------------------------------- $ 53,661,786 - ----------------------------------------------------------------------------------------------------- INSURED-UTILITIES -- 10.7% $ 8,000 Los Angeles, CA, Department of Water and Power, (FGIC), 5.00%, 7/1/43 $ 8,034,320 1,500 Los Angeles, CA, Department of Water and Power, (MBIA), 5.125%, 7/1/41 1,519,890 6,000 Philadelphia, PA, Gas Works Revenue, (FSA), 5.00%, 8/1/32 6,068,880 - ----------------------------------------------------------------------------------------------------- $ 15,623,090 - ----------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 22.3% $ 4,740 Atlanta, GA, Water and Sewer, (FGIC), 5.00%, 11/1/38(4) $ 4,788,964 4,895 Atlanta, GA, Water and Wastewater, (MBIA), 5.00%, 11/1/39 4,944,831 10,705 Birmingham, AL, Waterworks and Sewer Board, (MBIA), 5.00%, 1/1/37 10,802,951 10,750 Houston, TX, Water & Sewer System, (FSA), 5.00%, 12/1/30 10,831,915 1,275 Pittsburgh, PA, Water and Sewer Authority, (AMBAC), Variable Rate, 12/1/27(2)(3) 1,368,865 - ----------------------------------------------------------------------------------------------------- $ 32,737,526 - ----------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 9.7% $ 2,330 Contra Costa, CA, Water District, (FSA), Variable Rate, 10/1/32(2)(3) $ 2,423,550 3,450 Detroit, MI, Water Supply System, (MBIA) , Variable Rate, 7/1/34(2)(3) 3,576,753 3,500 Metropolitan Water District, CA, (FGIC), 5.00%, 10/1/36 3,548,160 4,610 Texas Southmost Regional Water Authority, (MBIA), 5.00%, 9/1/32 4,645,451 - ----------------------------------------------------------------------------------------------------- $ 14,193,914 - ----------------------------------------------------------------------------------------------------- OTHER REVENUE -- 1.5% $ 1,500 Capital Trust Agency, FL, (Seminole Tribe Convention), 8.95%, 10/1/33 $ 1,662,255 430 Capital Trust Agency, FL, (Seminole Tribe Convention), 10.00%, 10/1/33 507,318 - ----------------------------------------------------------------------------------------------------- $ 2,169,573 - ----------------------------------------------------------------------------------------------------- TRANSPORTATION -- 5.9% $ 8,500 Metropolitan Transportation Authority of New York, 5.125%, 1/1/29 $ 8,643,225 - ----------------------------------------------------------------------------------------------------- $ 8,643,225 - ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 160.6% (IDENTIFIED COST $230,834,109) $ 235,453,251 - ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- (0.9)% $ (1,327,682) AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (59.7)% $ (87,551,976) - ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 146,573,593 - -----------------------------------------------------------------------------------------------------
FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, Inc. The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2003, 86.0% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 3.0% to 36.7% of total investments. (1) Security has been issued as an inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security has been issued as a leveraged inverse floater bond. (4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. See notes to financial statements. 14 INSURED CALIFORNIA MUNICIPAL BOND FUND II as of September 30, 2003 PORTFOLIO OF INVESTMENTS Tax-Exempt Investments -- 158.8%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 3.0% $ 750 California, 5.00%, 2/1/21 $ 763,110 900 California, 5.25%, 4/1/30 904,590 - ----------------------------------------------------------------------------------------------------- $ 1,667,700 - ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 12.2% $ 3,475 Glendale Electric, (MBIA), 5.00%, 2/1/32 $ 3,522,677 1,650 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(1)(2) 1,802,542 455 Sacramento Municipal Electric Utility District, (FSA), Variable Rate, 8/15/28(2)(3) 475,944 1,000 Southern California Public Power Authority, (Magnolia Power), (AMBAC), 5.00%, 7/1/25 1,019,650 - ----------------------------------------------------------------------------------------------------- $ 6,820,813 - ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 31.2% $ 1,250 California, (AMBAC), 5.00%, 4/1/27 $ 1,265,113 415 California, (XLCA), Variable Rate, 10/1/28(2)(3) 430,753 5,000 Clovis Unified School District, (FGIC), 0.00%, 8/1/20 2,196,850 2,000 Laguna Salada Union School District, (FGIC), 0.00%, 8/1/22 768,200 2,350 Long Beach Unified School District, (Election of 1999), (FSA), 5.00%, 8/1/31 2,377,942 1,710 Los Angeles Unified School District, (FGIC), 5.375%, 7/1/25 1,808,000 1,945 Los Osos Community Services, Wastewater Assessment District, (MBIA), 5.00%, 9/2/33 1,971,919 1,000 Mount Diablo Unified School District, (FSA), 5.00%, 8/1/25 1,018,170 4,300 San Mateo County Community College District, (Election of 2001), (FGIC), 0.00%, 9/1/21 1,757,754 1,750 Santa Ana Unified School District, (MBIA), 5.00%, 8/1/32 1,772,960 3,200 Union Elementary School District, (FGIC), 0.00%, 9/1/22 1,225,280 2,600 Union Elementary School District, (FGIC), 0.00%, 9/1/23 930,072 - ----------------------------------------------------------------------------------------------------- $ 17,523,013 - ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 20.9% $ 4,000 Anaheim, Public Financing Authority Lease Revenue, (FSA), 5.00%, 3/1/37 $ 4,025,880 4,250 California Public Works Board Lease Revenue, (Department of General Services), (AMBAC), 5.00%, 12/1/27(4) 4,320,040 2,250 Orange County Water District Certificates of Participation, (MBIA), 5.00%, 8/15/34 2,277,698 $ 1,075 San Jose Financing Authority, (Civic Center), (AMBAC), 5.00%, 6/1/32 $ 1,088,889 - ----------------------------------------------------------------------------------------------------- $ 11,712,507 - ----------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 10.5% $ 4,000 California University, (AMBAC), 5.00%, 11/1/33 $ 4,047,880 1,790 University of California, (FGIC), 5.125%, 9/1/31 1,832,387 - ----------------------------------------------------------------------------------------------------- $ 5,880,267 - ----------------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 16.4% $ 5,700 East Bay Municipal Utility District Water System, (MBIA), 5.00%, 6/1/38 $ 5,742,978 3,425 Los Angeles Wastewater Treatment System, (FGIC), 5.00%, 6/1/28 3,476,546 - ----------------------------------------------------------------------------------------------------- $ 9,219,524 - ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL ASSESSMENT REVENUE -- 18.0% $ 2,500 Cathedral City Public Financing Authority, (Housing Redevelopment), (MBIA), 5.00%, 8/1/33 $ 2,534,300 2,500 Cathedral City Public Financing Authority, (Tax Allocation Redevelopment), (MBIA), 5.00%, 8/1/33 2,534,300 1,250 Irvine Public Facility and Infrastructure Authority Assessment, (AMBAC), 5.00%, 9/2/23 1,262,125 1,750 Irvine Public Facility and Infrastructure Authority Assessment, (AMBAC), 5.00%, 9/2/26 1,765,610 2,000 Murrieta Redevelopment Agency Tax, (MBIA), 5.00%, 8/1/32 2,027,440 - ----------------------------------------------------------------------------------------------------- $ 10,123,775 - ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 9.3% $ 3,750 San Francisco Bay Area Rapid Transportation District, (AMBAC), 5.125%, 7/1/36 $ 3,826,613 1,335 San Jose Redevelopment Agency Tax, (MBIA), Variable Rate, 8/1/32(2)(3) 1,377,426 - ----------------------------------------------------------------------------------------------------- $ 5,204,039 - ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 18.3% $ 4,000 California Infrastructure and Economic Development, (Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/36 $ 4,053,640 2,250 Los Angeles County Metropolitan Transportation Authority, (FGIC), 5.25%, 7/1/30 2,345,490 1,400 Sacramento County Airport System, (FSA), 5.00%, 7/1/27 1,422,218 500 San Francisco City and County Airports Commission International, (FGIC), 5.00%, 5/1/29 504,585
See notes to financial statements. 15
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION (CONTINUED) $ 6,670 San Joaquin Hills Transportation Corridor Agency, (MBIA), 0.00%, 1/15/27 $ 1,921,560 - ----------------------------------------------------------------------------------------------------- $ 10,247,493 - ----------------------------------------------------------------------------------------------------- INSURED-UTILITIES -- 8.4% $ 1,400 Los Angeles Department of Water and Power, (FGIC), 5.00%, 7/1/38 $ 1,413,230 1,500 Los Angeles Department of Water and Power, (FGIC), 5.00%, 7/1/43 1,506,435 1,750 Los Angeles Department of Water and Power, (FGIC), 5.125%, 7/1/41 1,773,205 - ----------------------------------------------------------------------------------------------------- $ 4,692,870 - ----------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 3.1% $ 1,750 Metropolitan Water District, CA, (Southern California Waterworks), (MBIA), 5.00%, 7/1/30 $ 1,766,240 - ----------------------------------------------------------------------------------------------------- $ 1,766,240 - ----------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 3.0% $ 835 Contra Costa Water District, (FSA), Variable Rate, 10/1/32(2)(3) $ 868,525 800 Metropolitan Water District, (Southern California Waterworks), (MBIA), Variable Rate, 7/1/27(2)(3) 814,472 - ----------------------------------------------------------------------------------------------------- $ 1,682,997 - ----------------------------------------------------------------------------------------------------- WATER REVENUE -- 4.5% $ 2,500 California Water Resource, (Central Valley), 5.00%, 12/1/29 $ 2,517,625 - ----------------------------------------------------------------------------------------------------- $ 2,517,625 - ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 158.8% (IDENTIFIED COST $87,775,098) $ 89,058,863 - ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 1.4% $ 777,031 AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (60.2)% $ (33,752,500) - ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 56,083,394 - -----------------------------------------------------------------------------------------------------
FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, Inc. The Fund invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2003, 95.3% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 0.5% to 31.7% of total investments. (1) Security has been issued as an inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security has been issued as a leveraged inverse floater bond. (4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. See notes to financial statements. 16 INSURED FLORIDA MUNICIPAL BOND FUND as of September 30, 2003 PORTFOLIO OF INVESTMENTS Tax-Exempt Investments -- 157.1%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 5.4% $ 2,000 Jacksonville Electric Authority, (Electric System), 5.25%, 10/1/31 $ 2,019,340 - ----------------------------------------------------------------------------------------------------- $ 2,019,340 - ----------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 4.1% $ 1,500 Florida Board of Education Capital Outlay, (Public Education), 5.00%, 6/1/32 $ 1,520,685 - ----------------------------------------------------------------------------------------------------- $ 1,520,685 - ----------------------------------------------------------------------------------------------------- HOSPITAL -- 5.5% $ 1,050 Highlands County, Health Facility Authority, (Adventist Health), 5.25%, 11/15/23 $ 1,052,572 1,000 South Miami Health Facility Authority, (Baptist Health), 5.25%, 11/15/33 1,006,900 - ----------------------------------------------------------------------------------------------------- $ 2,059,472 - ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 2.9% $ 500 Puerto Rico Electric Power Authority, (FSA), 5.125%, 7/1/26 $ 521,125 500 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(1)(2) 546,225 - ----------------------------------------------------------------------------------------------------- $ 1,067,350 - ----------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 3.0% $ 1,025 Dade County, Professional Sports Franchise Facility, (MBIA), Escrowed to Maturity, 5.25%, 10/1/30 $ 1,114,872 - ----------------------------------------------------------------------------------------------------- $ 1,114,872 - ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 14.5% $ 2,500 Florida Board of Education Capital Outlay, (Public Education), (MBIA), 5.00%, 6/1/32 $ 2,534,475 1,520 Florida Municipal Loan Council Revenue, (MBIA), 0.00%, 4/1/23 568,267 1,520 Florida Municipal Loan Council Revenue, (MBIA), 0.00%, 4/1/24 530,678 1,700 Puerto Rico General Obligation, (FSA), 5.125%, 7/1/30 1,757,307 - ----------------------------------------------------------------------------------------------------- $ 5,390,727 - ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 18.6% $ 1,500 Jacksonville Economic Development Commission, (Mayo Clinic), (MBIA), 5.50%, 11/15/36 $ 1,590,870 1,000 Jacksonville Economic Development Commission, (Mayo Clinic), (MBIA), 5.50%, 11/15/36 1,060,580 1,500 Miami-Dade County, Health Facilities Authority, (Miami Children's Hospital), (AMBAC), 5.125%, 8/15/26 1,538,625 1,510 Sarasota County, Public Hospital Board, (Sarasota Memorial Hospital), (MBIA), 5.25%, 7/1/24(3) 1,618,161 1,000 Sarasota County, Public Hospital Board, (Sarasota Memorial Hospital), (MBIA), 5.50%, 7/1/28 1,099,910 - ----------------------------------------------------------------------------------------------------- $ 6,908,146 - ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 7.6% $ 1,605 Port Palm Beach District, (Improvements), (XLCA), 0.00%, 9/1/24 $ 547,819 1,950 Port Palm Beach District, (Improvements), (XLCA), 0.00%, 9/1/25 625,521 1,700 Port Palm Beach District, (Improvements), (XLCA), 0.00%, 9/1/26 512,006 1,000 Puerto Rico Public Building Authority, (XLCA), 5.50%, 7/1/21 1,144,500 - ----------------------------------------------------------------------------------------------------- $ 2,829,846 - ----------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 22.7% $ 1,500 Miami-Dade County, (Professional Sports Franchise), (MBIA), 4.75%, 10/1/30 $ 1,487,595 1,740 Orange County Tourist Development, (AMBAC), 5.125%, 10/1/25 1,794,410 750 Orange County Tourist Development, (AMBAC), Variable Rate, 10/1/30(2)(4) 806,085 1,500 Polk County, Transportation Improvements, (FSA), 5.375%, 12/1/25 1,581,975 2,750 Village Center Community Development District, (MBIA), 5.00%, 11/1/32 2,779,535 - ----------------------------------------------------------------------------------------------------- $ 8,449,600 - ----------------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 7.5% $ 2,750 Pinellas County, Sewer, (FSA), 5.00%, 10/1/32 $ 2,788,472 - ----------------------------------------------------------------------------------------------------- $ 2,788,472 - ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL ASSESSMENT REVENUE -- 7.6% $ 2,780 Julington Creek, Plantation Community Development District, (MBIA), 5.00%, 5/1/29 $ 2,812,609 - ----------------------------------------------------------------------------------------------------- $ 2,812,609 - -----------------------------------------------------------------------------------------------------
See notes to financial statements. 17
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 36.0% $ 1,000 Bay County, Sales Tax, (AMBAC), 5.125%, 9/1/27 $ 1,028,580 1,250 Bay County, Sales Tax, (AMBAC), 5.125%, 9/1/32 1,280,787 500 Dade County, Convention Center Special Tax, (AMBAC), 5.00%, 10/1/35 503,275 1,000 Dade County, Special Obligation Residual Certificates, (AMBAC), Variable Rate, 10/1/35(2)(4) 1,019,650 1,500 Jacksonville Capital Improvements, (AMBAC), 5.00%, 10/1/30 1,521,165 4,000 Jacksonville Transportation, (MBIA), 5.00%, 10/1/31 4,048,680 1,275 Jacksonville, Excise Tax, (FGIC), 5.125%, 10/1/27 1,311,580 225 Miami-Dade County, Special Obligation, (MBIA), 5.00%, 10/1/37 226,838 1,420 Orange County, Sales Tax, (FGIC), 5.125%, 1/1/23 1,482,636 440 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(4) 465,441 1,120 Sunrise Public Facility, (MBIA), 0.00%, 10/1/20 500,405 - ----------------------------------------------------------------------------------------------------- $ 13,389,037 - ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 8.7% $ 1,500 Florida Turnpike Authority, (Department of Transportation), (FGIC), 4.50%, 7/1/27 $ 1,443,735 400 Puerto Rico Highway and Transportation Authority, (CIFG), 5.00%, 7/1/28 411,164 330 Puerto Rico Highway and Transportation Authority, (FSA), Variable Rate, 7/1/32(2)(4) 353,899 940 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 7/1/36(2)(4) 1,022,993 - ----------------------------------------------------------------------------------------------------- $ 3,231,791 - ----------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 7.2% $ 1,500 Marion County Utility System, (MBIA), 5.00%, 12/1/33 $ 1,520,805 1,000 Sunrise Utility System, (AMBAC), 5.50%, 10/1/18 1,153,900 - ----------------------------------------------------------------------------------------------------- $ 2,674,705 - ----------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 5.8% $ 1,640 Tampa Bay Water Utility System, (FGIC), 5.00%, 10/1/31 $ 1,659,959 500 Tampa Bay Water Utility System, (FGIC), Variable Rate, 10/1/27(1)(2) 497,160 - ----------------------------------------------------------------------------------------------------- $ 2,157,119 - ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 157.1% (IDENTIFIED COST $57,519,541) $ 58,413,771 - ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 3.4% $ 1,272,949 AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (60.5)% $ (22,500,613) - ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 37,186,107 - -----------------------------------------------------------------------------------------------------
FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, Inc. CIFG - CDC IXIS Financial Guaranty North America, Inc. The Fund invests primarily in debt securities issued by Florida municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2003, 90.4% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 0.7% to 42.0% of total investments. (1) Security has been issued as an inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (4) Security has been issued as a leveraged inverse floater bond. See notes to financial statements. 18 INSURED MASSACHUSETTS MUNICIPAL BOND FUND as of September 30, 2003 PORTFOLIO OF INVESTMENTS Tax-Exempt Investments -- 163.2%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- HOSPITAL -- 6.2% $ 1,500 Massachusetts HEFA, (Partners Healthcare System), 5.75%, 7/1/32 $ 1,572,870 - ----------------------------------------------------------------------------------------------------- $ 1,572,870 - ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 4.1% $ 1,000 Puerto Rico Electric Power Authority, (FSA), 5.125%, 7/1/26 $ 1,042,250 - ----------------------------------------------------------------------------------------------------- $ 1,042,250 - ----------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 3.7% $ 3,000 Massachusetts College Building Authority, (MBIA), Escrowed to Maturity, 0.00%, 5/1/26 $ 943,020 - ----------------------------------------------------------------------------------------------------- $ 943,020 - ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 25.1% $ 2,270 Boston, (MBIA), 5.00%, 2/1/23 $ 2,337,283 1,000 Martha's Vineyard, (AMBAC), 5.00%, 5/1/32(1) 1,013,800 500 Massachusetts, (MBIA), 5.00%, 8/1/27 509,120 1,020 Maynard, (MBIA), 5.50%, 2/1/22 1,129,650 1,335 Puerto Rico General Obligation, (FGIC), Variable Rate, 7/1/32(2)(3) 1,431,681 - ----------------------------------------------------------------------------------------------------- $ 6,421,534 - ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 11.6% $ 1,750 Massachusetts HEFA, (Harvard Pilgrim Health), (FSA), 5.00%, 7/1/28 $ 1,750,665 1,210 Massachusetts HEFA, (New England Medical Center), (FGIC), 5.00%, 5/15/25 1,223,032 - ----------------------------------------------------------------------------------------------------- $ 2,973,697 - ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 15.3% $ 1,750 Massachusetts Development Finance Agency, (MBIA), 5.125%, 2/1/34 $ 1,779,925 1,000 Plymouth County Correctional Facility, (AMBAC), 5.00%, 4/1/22 1,028,330 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(2)(3) 1,107,040 - ----------------------------------------------------------------------------------------------------- $ 3,915,295 - ----------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 7.5% $ 1,000 Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.375%, 1/1/42 $ 1,044,930 800 Puerto Rico Municipal Finance Agency, (FSA), Variable Rate, 8/1/27(2)(3) 863,472 - ----------------------------------------------------------------------------------------------------- $ 1,908,402 - ----------------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 35.1% $ 1,000 Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59 $ 1,122,330 2,000 Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33 2,049,700 250 Massachusetts HEFA, (Boston College), (MBIA), 4.75%, 6/1/31 247,515 2,500 Massachusetts HEFA, (Brandeis University), (MBIA), 5.00%, 10/1/26 2,540,375 1,000 Massachusetts IFA, (College of the Holy Cross), (MBIA), 5.00%, 9/1/23 1,023,140 2,000 Massachusetts IFA, (Tufts University), (MBIA), 4.75%, 2/15/28 1,990,740 - ----------------------------------------------------------------------------------------------------- $ 8,973,800 - ----------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 11.0% $ 700 Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39 $ 781,109 1,000 Massachusetts HEFA, (University of Massachusetts), (FGIC), 5.125%, 10/1/34 1,021,990 1,000 Massachusetts HEFA, (Worcester State College), (AMBAC), 5.00%, 11/1/32 1,016,610 - ----------------------------------------------------------------------------------------------------- $ 2,819,709 - ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 11.4% $ 500 Massachusetts Turnpike Authority, (AMBAC), 5.00%, 1/1/39 $ 503,565 5,700 Massachusetts Turnpike Authority, (MBIA), 0.00%, 1/1/28 1,637,325 415 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), Variable Rate, 1/1/37(2)(3) 422,619 335 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 7/1/36(2)(3) 364,577 - ----------------------------------------------------------------------------------------------------- $ 2,928,086 - ----------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 9.9% $ 2,500 Massachusetts Water Resource Authority, (FSA), 5.00%, 8/1/32 $ 2,531,725 - ----------------------------------------------------------------------------------------------------- $ 2,531,725 - -----------------------------------------------------------------------------------------------------
See notes to financial statements. 19
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- PRIVATE EDUCATION -- 13.2% $ 500 Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), 5.75%, 7/1/33 $ 496,075 750 Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33 753,757 600 Massachusetts Development Finance Agency, (Western New England College), 6.125%, 12/1/32 611,304 500 Massachusetts HEFA, (Boston College), 5.125%, 6/1/24 514,720 1,000 Massachusetts IFA, (Groton School), 5.00%, 3/1/28 1,012,440 - ----------------------------------------------------------------------------------------------------- $ 3,388,296 - ----------------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE -- 9.1% $ 2,300 Massachusetts Bay Transportation Authority, Sales Tax, 5.00%, 7/1/32 $ 2,329,118 - ----------------------------------------------------------------------------------------------------- $ 2,329,118 - ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 163.2% (IDENTIFIED COST $41,245,388) $ 41,747,802 - ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- (2.6)% $ (660,276) AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (60.6)% $ (15,502,014) - ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 25,585,512 - -----------------------------------------------------------------------------------------------------
FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, Inc. CIFG - CDC IXIS Financial Guaranty North America, Inc. The Fund invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2003, 82.5% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 2.7% to 35.8% of total investments. (1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security has been issued as a leveraged inverse floater bond. See notes to financial statements. 20 INSURED MICHIGAN MUNICIPAL BOND FUND as of September 30, 2003 PORTFOLIO OF INVESTMENTS Tax-Exempt Investments -- 160.5%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 5.9% $ 1,250 Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29 $ 1,280,362 - ----------------------------------------------------------------------------------------------------- $ 1,280,362 - ----------------------------------------------------------------------------------------------------- HOSPITAL -- 22.9% $ 1,000 Michigan Hospital Finance Authority, (McLaren Obligated Group), 4.50%, 10/15/21 $ 917,030 1,000 Michigan Hospital Finance Authority, (Oakwood Hospital), 5.75%, 4/1/32 1,041,210 1,500 Michigan Hospital Finance Authority, (Sparrow Obligation Group), 5.625%, 11/15/36 1,517,280 1,500 Michigan Hospital Finance Authority, (Trinity Health), 5.375%, 12/1/30 1,530,345 - ----------------------------------------------------------------------------------------------------- $ 5,005,865 - ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 2.4% $ 500 Michigan Strategic Fund Resource Recovery, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32 $ 516,775 - ----------------------------------------------------------------------------------------------------- $ 516,775 - ----------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 4.8% $ 1,000 Michigan Hospital Finance Authority, (St. John Health System), (AMBAC), Escrowed to Maturity, 5.00%, 5/15/28 $ 1,048,250 - ----------------------------------------------------------------------------------------------------- $ 1,048,250 - ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 39.1% $ 1,550 Detroit School District, (School Bond Loan Fund), (FSA), 5.125%, 5/1/31 $ 1,582,736 1,960 Grand Rapids and Kent County Joint Building Authority, (Devos Place), (MBIA), 0.00%, 12/1/27 558,953 4,000 Grand Rapids and Kent County Joint Building Authority, (MBIA), 0.00%, 12/1/30 965,680 750 Greenville Public Schools, (MBIA), 5.00%, 5/1/25 762,510 1,000 Melvindle-Northern Allen Park School District, (Building and Site), (FSA), 5.00%, 5/1/28 1,015,140 3,080 Okemos Public School District, (MBIA), 0.00%, 5/1/19 1,499,929 990 Portland Public Schools, (School Bond Loan Fund), (MBIA), 5.00%, 5/1/29 1,002,771 1,095 Puerto Rico General Obligation, (FGIC), Variable Rate, 7/1/32(1)(2) 1,174,300 - ----------------------------------------------------------------------------------------------------- $ 8,562,019 - ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 9.7% $ 500 Michigan Hospital Finance Authority, Mid-Michigan Obligation Group, (AMBAC), 5.00%, 4/15/32 $ 504,800 1,590 Royal Oak Hospital Finance Authority Revenue, (William Beaumont Hospital), (MBIA), 5.25%, 11/15/35 1,624,487 - ----------------------------------------------------------------------------------------------------- $ 2,129,287 - ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 12.6% $ 1,750 Michigan House of Representatives, (AMBAC), 0.00%, 8/15/22 $ 685,195 2,615 Michigan House of Representatives, (AMBAC), 0.00%, 8/15/23 957,404 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(1)(2) 1,107,040 - ----------------------------------------------------------------------------------------------------- $ 2,749,639 - ----------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 15.1% $ 1,500 Central Michigan University, (AMBAC), 5.05%, 10/1/32(3) $ 1,525,695 1,000 Eastern Michigan University, (FGIC), 5.00%, 6/1/28 1,015,800 750 Lake Superior University, (AMBAC), 5.125%, 11/15/26 768,173 - ----------------------------------------------------------------------------------------------------- $ 3,309,668 - ----------------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 5.8% $ 1,250 Detroit Sewer Disposal, (FGIC), 5.125%, 7/1/31 $ 1,274,250 - ----------------------------------------------------------------------------------------------------- $ 1,274,250 - ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX -- 4.6% $ 1,000 Ypsilanti Community Utilities Authority, (San Sewer System), (FGIC), 5.00%, 5/1/32 $ 1,011,930 - ----------------------------------------------------------------------------------------------------- $ 1,011,930 - ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 16.2% $ 500 Detroit Downtown Development, (MBIA), 4.75%, 7/1/25 $ 499,630 1,500 Lansing Building Authority, (MBIA), 5.00%, 6/1/29 1,522,305 1,500 Wayne Charter County, (Airport Hotel-Detroit Metropolitan Airport), (MBIA), 5.00%, 12/1/30 1,520,280 - ----------------------------------------------------------------------------------------------------- $ 3,542,215 - ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 4.6% $ 1,000 Michigan Trunk Line, (FSA), 5.00%, 11/1/25 $ 1,017,590 - ----------------------------------------------------------------------------------------------------- $ 1,017,590 - -----------------------------------------------------------------------------------------------------
See notes to financial statements. 21
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- INSURED-UTILITY -- 7.0% $ 1,000 Lansing Board Water Supply, Steam and Eletctric Utility, (FSA), 5.00%, 7/1/25 $ 1,020,440 510 Lansing Board Water Supply, Steam and Eletctric Utility, (FSA), 5.00%, 7/1/26 519,226 - ----------------------------------------------------------------------------------------------------- $ 1,539,666 - ----------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 9.8% $ 1,300 Detroit Water Supply System, (FGIC), 5.00%, 7/1/30 $ 1,315,314 800 Detroit Water Supply System, (MBIA) , Variable Rate, 7/1/34(1)(2) 829,392 - ----------------------------------------------------------------------------------------------------- $ 2,144,706 - ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 160.5% (IDENTIFIED COST $34,462,526) $ 35,132,222 - ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 1.2% $ 261,035 AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (61.7)% $ (13,500,000) - ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 21,893,257 - -----------------------------------------------------------------------------------------------------
FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, Inc. CIFG - CDC IXIS Financial Guaranty North America, Inc. The Fund invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2003, 82.1% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 1.5% to 30.7% of total investments. (1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (2) Security has been issued as a leveraged inverse floater bond. (3) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. See notes to financial statements. 22 INSURED NEW JERSEY MUNICIPAL BOND FUND as of September 30, 2003 PORTFOLIO OF INVESTMENTS Tax-Exempt Investments -- 159.3%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- EDUCATION -- 3.4% $ 1,250 New Jersey Educational Facilities Authority, (Steven's Institute of Technology), 5.25%, 7/1/32 $ 1,262,725 - ----------------------------------------------------------------------------------------------------- $ 1,262,725 - ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 34.0% $ 2,260 Bayonne, (FSA), 0.00%, 7/1/22 $ 892,723 2,415 Bayonne, (FSA), 0.00%, 7/1/23 890,507 1,500 Bordentown Regional School District Board of Education, (FGIC), 5.00%, 1/15/30(1) 1,529,535 5,500 Irvington Township, (FSA), 0.00%, 7/15/26 1,678,765 1,500 Jersey City, (FSA), 5.25%, 9/1/23 1,595,955 2,340 Old Bridge Township Board of Education, (MBIA), 5.00%, 7/15/27 2,389,327 1,550 Puerto Rico General Obligation, (FGIC), Variable Rate, 7/1/32(2)(3) 1,662,251 1,130 Rutherford Board of Education, (FGIC), 4.75%, 1/15/27 1,135,740 1,000 Washington Township and Mercer County Board of Education, (FGIC), 5.00%, 1/1/27 1,019,230 - ----------------------------------------------------------------------------------------------------- $ 12,794,033 - ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 11.4% $ 2,750 New Jersey Health Care Facilities, (Englewood Hospital), (MBIA), 5.00%, 8/1/31 $ 2,786,080 1,500 New Jersey Health Care Facilities, (Jersey City Medical Center), (FSA), 5.00%, 8/1/41 1,514,520 - ----------------------------------------------------------------------------------------------------- $ 4,300,600 - ----------------------------------------------------------------------------------------------------- INSURED-INDUSTRIAL DEVELOPMENT REVENUE -- 8.5% $ 3,170 Lafayette Yard, Community Development Corporation, (Hotel and Conference Center), (FGIC), 5.00%, 4/1/35 $ 3,194,853 - ----------------------------------------------------------------------------------------------------- $ 3,194,853 - ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 16.4% $ 10,000 Garden State New Jersey Preservation Trust, (FSA), 0.00%, 11/1/28 $ 2,684,200 1,250 Middlesex County, (MBIA), 5.00%, 8/1/31 1,273,037 1,000 New Jersey Building Authority, (FSA), 5.00%, 12/15/21 1,128,580 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(2)(3) 1,107,040 - ----------------------------------------------------------------------------------------------------- $ 6,192,857 - ----------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 2.7% $ 950 Puerto Rico Municipal Finance Agency, (FSA), Variable Rate, 8/1/27(2)(3) $ 1,025,373 - ----------------------------------------------------------------------------------------------------- $ 1,025,373 - ----------------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 5.4% $ 2,000 New Jersey Educational Facilities Authority, (Kean University), (FGIC), 5.00%, 7/1/28 $ 2,037,420 - ----------------------------------------------------------------------------------------------------- $ 2,037,420 - ----------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 27.7% $ 1,400 Monmouth, (Brookdale Community College), (AMBAC), 5.00%, 8/1/29 $ 1,420,552 1,000 New Jersey Educational Facilities Authority, (Rowan University), (FGIC), 5.00%, 7/1/27 1,019,670 1,600 New Jersey Educational Facilities Authority, (Rowan University), (FGIC), 5.00%, 7/1/33 1,626,544 775 Rutgers University, (FGIC), 4.75%, 5/1/27 776,597 1,000 University of New Jersey Medicine and Dentistry, (AMBAC), 5.00%, 12/1/31 1,017,230 4,490 University of New Jersey Medicine and Dentistry, (AMBAC), 5.00%, 4/15/32 4,570,057 - ----------------------------------------------------------------------------------------------------- $ 10,430,650 - ----------------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 6.1% $ 900 Long Branch Sewer Authority, (FGIC), 4.75%, 6/1/23 $ 923,769 2,100 Passaic Valley Sewer Commissioners, (FGIC), 2.50%, 12/1/32 1,372,980 - ----------------------------------------------------------------------------------------------------- $ 2,296,749 - ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 17.1% $ 4,000 Delaware River and Bay Authority, (MBIA), 5.00%, 1/1/33 $ 4,078,400 1,290 Port Authority of New York and New Jersey, (FSA), Variable Rate, 11/1/27(2)(3) 1,379,861 950 South Jersey Transportation Authority, (AMBAC), 5.00%, 11/1/29 966,074 - ----------------------------------------------------------------------------------------------------- $ 6,424,335 - ----------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 4.1% $ 4,500 Middlesex County Improvements Authority Utilities System, (Perth Amboy), (AMBAC), 0.00%, 9/1/24 $ 1,545,390 - ----------------------------------------------------------------------------------------------------- $ 1,545,390 - -----------------------------------------------------------------------------------------------------
See notes to financial statements. 23
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 1.4% $ 600 Bayonne Municipal Utilities Authority, Water and Sewer Revenue, (XLCA), Variable Rate, 4/1/11(2)(3) $ 544,818 - ----------------------------------------------------------------------------------------------------- $ 544,818 - ----------------------------------------------------------------------------------------------------- LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 4.0% $ 1,500 New Jersey EDA, (School Facilities), 5.00%, 6/15/26 $ 1,521,210 - ----------------------------------------------------------------------------------------------------- $ 1,521,210 - ----------------------------------------------------------------------------------------------------- SENIOR LIVING / LIFE CARE -- 1.5% $ 600 New Jersey EDA, (Fellowship Village), 5.50%, 1/1/25 $ 571,434 - ----------------------------------------------------------------------------------------------------- $ 571,434 - ----------------------------------------------------------------------------------------------------- TRANSPORTATION -- 15.6% $ 300 Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/24 $ 305,427 1,450 Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/28 1,470,909 2,250 Port Authority of New York and New Jersey, 5.00%, 9/1/38 2,267,010 1,825 South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33 1,840,257 - ----------------------------------------------------------------------------------------------------- $ 5,883,603 - ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 159.3% (IDENTIFIED COST $59,076,213) $ 60,026,050 - ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 0.4% $ 161,319 AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (59.7)% $ (22,500,581) - ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 37,686,788 - -----------------------------------------------------------------------------------------------------
FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, Inc. CIFG - CDC IXIS Financial Guaranty North America, Inc. The Fund invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2003, 84.6% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 0.9% to 27.2% of total investments. (1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security has been issued as a leveraged inverse floater bond. See notes to financial statements. 24 INSURED NEW YORK MUNICIPAL BOND FUND II as of September 30, 2003 PORTFOLIO OF INVESTMENTS Tax-Exempt Investments -- 157.6%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 7.3% $ 2,750 New York, NY, 5.25%, 1/15/28 $ 2,790,177 - ----------------------------------------------------------------------------------------------------- $ 2,790,177 - ----------------------------------------------------------------------------------------------------- HOSPITAL -- 2.0% $ 750 Suffolk County Industrial Development Agency, (Huntington Hospital), 5.875%, 11/1/32 $ 773,377 - ----------------------------------------------------------------------------------------------------- $ 773,377 - ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 7.4% $ 6,800 Long Island Power Authority Electric Systems Revenue, (FSA), 0.00%, 6/1/22 $ 2,802,348 - ----------------------------------------------------------------------------------------------------- $ 2,802,348 - ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 12.3% $ 500 Puerto Rico General Obligation, (FGIC), Variable Rate, 7/1/32(1)(2) $ 536,210 315 Rochester, (FGIC), 5.00%, 10/1/24 335,147 2,000 Sachem School District, (MBIA), 5.00%, 6/15/27 2,050,120 1,700 Spencerport Central School District, (MBIA), 5.00%, 6/15/22 1,758,650 - ----------------------------------------------------------------------------------------------------- $ 4,680,127 - ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 18.5% $ 2,250 New York City Health and Hospital Corp., (Health Systems), (AMBAC), 5.00%, 2/15/23 $ 2,311,762 6,125 New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (MBIA), 0.00%, 7/1/26 1,953,998 3,365 New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (MBIA), 0.00%, 7/1/27 1,013,841 1,000 New York Dormitory Authority, (Municipal Health Facilities Improvement), (FSA), 4.75%, 1/15/29 991,930 750 New York Dormitory Authority, (New York Presbyterian Hospital), (AMBAC), 5.00%, 8/1/32 757,860 - ----------------------------------------------------------------------------------------------------- $ 7,029,391 - ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 16.3% $ 1,000 New York City Industrial Development Agency, (New York University), (AMBAC), 5.00%, 7/1/31 $ 1,011,780 4,005 New York Urban Development Corp., (Personal Income Tax), (FGIC), 5.00%, 3/15/33 4,060,670 $ 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(1)(2) $ 1,107,040 - ----------------------------------------------------------------------------------------------------- $ 6,179,490 - ----------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 4.6% $ 1,000 New York City Cultural Resource Trust, (Museum of Modern Art), (AMBAC), 5.125%, 7/1/31 $ 1,026,890 580 New York City Trust Cultural Resources, (Museum of History), (AMBAC), Variable Rate, 7/1/29(1)(3) 699,793 - ----------------------------------------------------------------------------------------------------- $ 1,726,683 - ----------------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 18.4% $ 2,500 New York Dormitory Authority, (Brooklyn Law School), (XLCA), 5.125%, 7/1/30 $ 2,555,650 1,500 New York Dormitory Authority, (Fordham University), (FGIC), 5.00%, 7/1/32 1,519,515 1,000 New York Dormitory Authority, (New York University), (AMBAC), 5.00%, 7/1/31 1,013,070 750 New York Dormitory Authority, (New York University), (AMBAC), 5.00%, 7/1/41 757,868 1,125 New York Dormitory Authority, (University of Rochester), (MBIA), 5.00%, 7/1/27 1,140,030 - ----------------------------------------------------------------------------------------------------- $ 6,986,133 - ----------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 15.9% $ 1,750 New York Dormitory Authority, (New York City University), (FGIC), 5.25%, 7/1/30 $ 2,014,390 2,245 New York Dormitory Authority, (School Districts Financing Program), (MBIA), 5.00%, 10/1/30 2,278,338 200 New York Dormitory Authority, (Upstate Community College), (MBIA), 5.00%, 7/1/27 203,318 1,500 New York University Dormitory Authority, (State University), (XLCA), 5.00%, 7/1/25 1,530,255 - ----------------------------------------------------------------------------------------------------- $ 6,026,301 - ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 6.6% $ 2,500 New York City Transitional Finance Authority, (MBIA), 4.75%, 5/1/23 $ 2,517,475 - ----------------------------------------------------------------------------------------------------- $ 2,517,475 - ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 18.6% $ 2,000 Metropolitan Transportation Authority, (FGIC), 5.25%, 11/15/31 $ 2,080,000
See notes to financial statements. 25
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION (CONTINUED) $ 1,000 Metropolitan Transportation Authority, (FSA), 5.00%, 11/15/30 $ 1,014,950 835 Port Authority of New York and New Jersey, (FSA), Variable Rate, 11/1/27(1)(2) 893,166 1,000 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(1)(2) 1,061,780 2,000 Triborough Bridge and Tunnel Authority, (MBIA), 5.00%, 11/15/32 2,026,960 - ----------------------------------------------------------------------------------------------------- $ 7,076,856 - ----------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 7.0% $ 2,700 New York City Municipal Water Finance Authority, (Water and Sewer System), (FGIC), 4.75%, 6/15/31(4) $ 2,652,831 - ----------------------------------------------------------------------------------------------------- $ 2,652,831 - ----------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 6.3% $ 750 Buffalo Municipal Water Finance Authority, (FSA), 5.00%, 7/1/27 $ 762,443 1,000 Buffalo Municipal Water Finance Authority, (FSA), 5.125%, 7/1/32 1,022,570 650 Suffolk County Water Authority, (MBIA), 4.50%, 6/1/26 624,501 - ----------------------------------------------------------------------------------------------------- $ 2,409,514 - ----------------------------------------------------------------------------------------------------- OTHER REVENUE -- 1.7% $ 500 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/32(1)(2) $ 632,745 - ----------------------------------------------------------------------------------------------------- $ 632,745 - ----------------------------------------------------------------------------------------------------- PRIVATE EDUCATION -- 4.0% $ 1,000 Dutchess County, Industrial Development Agency, (Marist College), 5.00%, 7/1/22 $ 1,007,220 500 Rensselaer County Industrial Development Agency, (Rensselaer Polytech Institute), 5.125%, 8/1/27 504,040 - ----------------------------------------------------------------------------------------------------- $ 1,511,260 - ----------------------------------------------------------------------------------------------------- TRANSPORTATION -- 10.7% $ 1,500 Port Authority of New York and New Jersey, 5.00%, 9/1/38 $ 1,511,340 2,500 Triborough Bridge and Tunnel Authority, 5.125%, 1/1/31 2,546,975 - ----------------------------------------------------------------------------------------------------- $ 4,058,315 - ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 157.6% (IDENTIFIED COST $58,629,018) $ 59,853,023 - ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 1.7% $ 634,757 AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (59.3)% $ (22,503,672) - ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 37,984,108 - -----------------------------------------------------------------------------------------------------
FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, Inc. CIFG - CDC IXIS Financial Guaranty North America, Inc. The Fund invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2003, 83.7% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 1.8% to 26.0% of total investments. (1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (2) Security has been issued as a leveraged inverse floater bond. (3) Security has been issued as an inverse floater bond. (4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. See notes to financial statements. 26 INSURED OHIO MUNICIPAL BOND FUND as of September 30, 2003 PORTFOLIO OF INVESTMENTS Tax-Exempt Investments -- 157.9%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 12.1% $ 3,415 Granville School District, 5.00%, 12/1/24 $ 3,477,802 925 Ohio, (Infrastructure Improvements), 4.875%, 3/1/23 944,823 - ----------------------------------------------------------------------------------------------------- $ 4,422,625 - ----------------------------------------------------------------------------------------------------- HOSPITAL -- 2.5% $ 900 Cuyahoga County, (Cleveland Clinic Health System), 5.50%, 1/1/29 $ 922,104 - ----------------------------------------------------------------------------------------------------- $ 922,104 - ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 9.6% $ 4,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/25 $ 1,380,360 1,775 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/26 578,987 5,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/27 1,550,250 - ----------------------------------------------------------------------------------------------------- $ 3,509,597 - ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 55.2% $ 1,500 Ashtabula School District, (Construction Improvements), (FGIC), 5.00%, 12/1/30(1) $ 1,525,845 2,000 Cincinnati School District, (School Improvements), (FSA), 5.00%, 12/1/22 2,078,140 2,500 Cuyahoga Community College District, (AMBAC), 5.00%, 12/1/32 2,540,900 500 Independence School District, (School Improvements), (FGIC), 4.75%, 12/1/30 496,570 935 Nordonia Hills School District, (School Improvements), (AMBAC), 5.45%, 12/1/25 1,004,929 1,900 Northwest Ohio School District, (School Improvements), (MBIA), 4.75%, 12/1/29 1,890,006 2,500 Olentangy School District, (School Facility Construction and Improvements, (MBIA), 5.00%, 12/1/30 2,543,075 1,400 Plain School District, (FGIC), 0.00%, 12/1/27 420,098 2,500 Plain School District, (FGIC), 5.00%, 12/1/30 2,544,925 1,400 Powell, (FGIC), 5.50%, 12/1/32 1,492,876 2,600 Trotwood-Madison School District, (School Improvements), (FGIC), 5.00%, 12/1/30 2,644,798 1,000 Zanesville School District, (School Improvements), (MBIA), 5.05%, 12/1/29 1,025,270 - ----------------------------------------------------------------------------------------------------- $ 20,207,432 - ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 12.3% $ 1,400 Cleveland, (Cleveland Stadium), (AMBAC), 5.25%, 11/15/27 $ 1,460,228 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(2)(3) 1,107,040 900 Puerto Rico Public Buildings Authority, Government Facility Revenue, (XLCA), 5.25%, 7/1/36 939,717 1,000 Summit County, (Civic Theater Project), (AMBAC), 5.00%, 12/1/33 1,012,310 - ----------------------------------------------------------------------------------------------------- $ 4,519,295 - ----------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 0.8% $ 280 Puerto Rico Municipal Finance Agency, (FSA), Variable Rate, 8/1/27(2)(3) $ 302,215 - ----------------------------------------------------------------------------------------------------- $ 302,215 - ----------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 16.2% $ 3,000 Cincinnati Technical and Community College, (AMBAC), 5.00%, 10/1/28 $ 3,056,520 1,170 Ohio University, (FSA), 5.25%, 12/1/23 1,242,376 500 University of Akron, (FGIC), Variable Rate, 1/1/29(2)(4) 598,825 1,000 University of Cincinnati, (AMBAC), 5.00%, 6/1/31 1,016,480 - ----------------------------------------------------------------------------------------------------- $ 5,914,201 - ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 14.9% $ 4,315 Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/22 $ 1,699,549 5,000 Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/23 1,853,900 1,000 Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/24 350,080 875 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/07(2)(4) 908,731 615 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 650,559 - ----------------------------------------------------------------------------------------------------- $ 5,462,819 - ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 15.7% $ 4,750 Cleveland Airport System, (FSA), 5.00%, 1/1/31 $ 4,808,710 885 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 1/1/19(2)(3) 939,675 - ----------------------------------------------------------------------------------------------------- $ 5,748,385 - ----------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 10.6% $ 3,800 Cleveland Waterworks, (FGIC), 5.00%, 1/1/25 $ 3,875,658 - ----------------------------------------------------------------------------------------------------- $ 3,875,658 - -----------------------------------------------------------------------------------------------------
See notes to financial statements. 27
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- PRIVATE EDUCATION -- 8.0% $ 1,000 Ohio Higher Educational Facilities Authority, (Oberlin College), 5.00%, 10/1/33 $ 1,011,380 1,000 Ohio Higher Educational Facilities Authority, (Oberlin College), Variable Rate, 10/1/29(2)(4) 1,026,520 850 Ohio Higher Educational Facilities Commission, (John Carroll University), 5.25%, 11/15/33 873,129 - ----------------------------------------------------------------------------------------------------- $ 2,911,029 - ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 157.9% (IDENTIFIED COST $56,870,433) $ 57,795,360 - ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 1.9% $ 690,437 AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (59.8)% $ (21,876,254) - ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 36,609,543 - -----------------------------------------------------------------------------------------------------
FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, Inc. CIFG - CDC IXIS Financial Guaranty North America, Inc. The Fund invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2003, 85.7% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 1.6% to 28.5% of total investments. (1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (3) Security has been issued as a leveraged inverse floater bond. (4) Security has been issued as an inverse floater bond. See notes to financial statements. 28 INSURED PENNSYLVANIA MUNICIPAL BOND FUND as of September 30, 2003 PORTFOLIO OF INVESTMENTS Tax-Exempt Investments -- 158.5%
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- HOSPITAL -- 6.1% $ 350 Lebanon County Health Facility Authority, (Good Samaritan Hospital), 6.00%, 11/15/35 $ 355,813 1,500 Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32 1,472,580 750 Pennsylvania HEFA, (UPMC Health System), 6.00%, 1/15/31 787,612 - ----------------------------------------------------------------------------------------------------- $ 2,616,005 - ----------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 5.1% $ 1,650 Puerto Rico Electric Power Authority, (FSA), 5.125%, 7/1/26 $ 1,719,712 400 Puerto Rico Electric Power Authority, (MBIA), Variable Rate, 7/1/29(1)(2) 455,472 - ----------------------------------------------------------------------------------------------------- $ 2,175,184 - ----------------------------------------------------------------------------------------------------- INSURED-GAS UTILITIES -- 5.3% $ 1,355 Philadelphia Natural Gas Works, (FSA), 5.125%, 8/1/31 $ 1,377,994 875 Philadelphia Natural Gas Works, (FSA), Variable Rate, 7/1/28(3) 886,856 - ----------------------------------------------------------------------------------------------------- $ 2,264,850 - ----------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 43.6% $ 250 Allegheny County, (FGIC), 5.25%, 11/1/21 $ 266,960 1,650 Armstrong County, (MBIA), 5.40%, 6/1/31 1,728,623 4,845 Canon McMillan School District, (FGIC), 0.00%, 12/1/33 1,007,760 500 Canon McMillan School District, (FGIC), 5.25%, 12/1/34 518,865 1,500 Cranberry Township, (FGIC), 5.00%, 12/1/25 1,525,560 4,500 East Allegheny School District, (FGIC), 5.00%, 4/1/32 4,556,565 1,080 Fairview School District, (FGIC), 5.125%, 2/1/29 1,103,263 2,555 McKeesport School District, (MBIA), 0.00%, 10/1/21 1,063,187 2,000 Pennridge School District, (MBIA), 5.00%, 2/15/29 2,032,060 1,000 Philadelphia, (FSA), 5.00%, 9/15/31 1,009,580 300 Philadelphia, (FSA), 5.25%, 9/15/25 311,133 585 Philadelphia, (FSA), Variable Rate, 9/15/31(1)(2) 601,819 400 Puerto Rico General Obligation, (FGIC), Variable Rate, 7/1/32(1)(2) 428,968 2,500 Upper Clair Township School District, (FSA), 5.00%, 7/15/32 2,533,550 - ----------------------------------------------------------------------------------------------------- $ 18,687,893 - ----------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 6.0% $ 2,500 Washington County Hospital Authority, (Washington Hospital), (AMBAC), 5.125%, 7/1/28 $ 2,548,800 - ----------------------------------------------------------------------------------------------------- $ 2,548,800 - ----------------------------------------------------------------------------------------------------- INSURED-INDUSTRIAL DEVELOPMENT REVENUE -- 4.0% $ 1,700 Allegheny County IDA, (MBIA), 5.00%, 11/1/29 $ 1,725,347 - ----------------------------------------------------------------------------------------------------- $ 1,725,347 - ----------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 7.2% $ 1,300 Philadelphia Authority for Industrial Development Lease Revenue, (FSA), 5.125%, 10/1/26 $ 1,327,638 1,700 Philadelphia Authority for Industrial Development Lease Revenue, (FSA), 5.25%, 10/1/30 1,767,354 - ----------------------------------------------------------------------------------------------------- $ 3,094,992 - ----------------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 20.9% $ 1,000 Chester County IDA Educational Facility, (Westtown School), (AMBAC), 5.00%, 1/1/31 $ 1,012,400 3,365 Delaware County, (Villanova University), (MBIA), 5.00%, 12/1/28 3,401,409 1,000 Northeastern Pennsylvania HEFA, (Wyoming Seminary), (MBIA), 4.75%, 10/1/28 992,620 3,000 Pennsylvania HEFA, (Temple University), (MBIA), 5.00%, 4/1/29(4) 3,034,020 500 Pennsylvania Public School Building Authority, (Lehigh Career and Technical Institute), (MBIA), 5.00%, 10/1/31 506,085 - ----------------------------------------------------------------------------------------------------- $ 8,946,534 - ----------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 4.8% $ 1,000 Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32 $ 1,037,160 1,000 Pennsylvania HEFA, (Clarion University Foundation), (XLCA), 5.00%, 7/1/33 1,007,990 - ----------------------------------------------------------------------------------------------------- $ 2,045,150 - ----------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 14.3% $ 4,350 Pittsburgh and Allegheny County Public Auditorium, (AMBAC), 5.00%, 2/1/29 $ 4,401,156 1,750 Southeastern Transportation Authority, (FGIC), 4.75%, 3/1/29 1,735,895 - ----------------------------------------------------------------------------------------------------- $ 6,137,051 - -----------------------------------------------------------------------------------------------------
See notes to financial statements. 29
PRINCIPAL AMOUNT (000's OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 23.9% $ 2,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/25 $ 2,036,380 1,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29 1,014,020 1,000 Pennsylvania Turnpike Commision, Oil Franchise Tax, (AMBAC), 4.75%, 12/1/27 1,001,980 1,500 Pennsylvania Turnpike Commission Registration Fee, (AMBAC), 5.00%, 7/15/31 1,522,530 3,750 Pennsylvania Turnpike Commission, (AMBAC), 5.00%, 7/15/41 3,785,588 815 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 7/1/36(1)(2) 886,956 - ----------------------------------------------------------------------------------------------------- $ 10,247,454 - ----------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 14.0% $ 1,555 Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25 $ 498,269 2,155 Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25 690,527 1,920 Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26 580,493 2,500 Pennsylvania University Sewer Authority, (MBIA), 5.00%, 11/1/26 2,538,950 1,000 Philadelphia Water & Wastewater, (FGIC), Variable Rate, 11/1/31(1)(3) 1,042,540 580 Pittsburgh Water and Sewer Authority, (AMBAC), Variable Rate, 12/1/27(1)(2) 622,700 - ----------------------------------------------------------------------------------------------------- $ 5,973,479 - ----------------------------------------------------------------------------------------------------- TRANSPORTATION -- 3.3% $ 1,400 Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/28 $ 1,420,188 - ----------------------------------------------------------------------------------------------------- $ 1,420,188 - ----------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 158.5% (IDENTIFIED COST $67,068,257) $ 67,882,927 - ----------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 2.2% $ 942,061 AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (60.7)% $ (26,003,379) - ----------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 42,821,609 - -----------------------------------------------------------------------------------------------------
FSA - Financial Security Assurance, Inc. FGIC - Financial Guaranty Insurance Company AMBAC - AMBAC Financial Group, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, Inc. The Fund invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2003, 94.1% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by financial institutions ranged from 1.5% to 27.1% of total investments. (1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. (2) Security has been issued as a leveraged inverse floater bond. (3) Security has been issued as an inverse floater bond. (4) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. See notes to financial statements. 30 EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2003 FINANCIAL STATEMENTS Statements of Assets and Liabilities As of September 30, 2003
INSURED INSURED INSURED MUNICIPAL FUND II CALIFORNIA FUND II FLORIDA FUND - ----------------------------------------------------------------------------------------------------------------------------- ASSETS Investments-- Identified cost $ 230,834,109 $ 87,775,098 $ 57,519,541 Unrealized appreciation 4,619,142 1,283,765 894,230 - ----------------------------------------------------------------------------------------------------------------------------- Investments, at value $ 235,453,251 $ 89,058,863 $ 58,413,771 - ----------------------------------------------------------------------------------------------------------------------------- Cash $ -- $ -- $ 326,565 Receivable for investments sold 2,282,938 -- -- Interest receivable 3,041,217 1,043,096 1,120,931 - ----------------------------------------------------------------------------------------------------------------------------- Total assets $ 240,777,406 $ 90,101,959 $ 59,861,267 - ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable for investments purchased $ 5,863,095 $ -- $ -- Payable for daily variation margin on open financial futures contracts 730,112 226,562 154,062 Due to bank 19,392 16,167 -- Accrued expenses 39,238 23,336 20,485 - ----------------------------------------------------------------------------------------------------------------------------- Total liabilities $ 6,651,837 $ 266,065 $ 174,547 - ----------------------------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends 87,551,976 33,752,500 22,500,613 - ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares $ 146,573,593 $ 56,083,394 $ 37,186,107 - ----------------------------------------------------------------------------------------------------------------------------- SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 99,076 $ 38,513 $ 25,559 Additional paid-in capital 140,481,753 54,587,941 36,225,714 Accumulated net realized gain (computed on the basis of identified cost) 2,741,450 490,365 376,143 Accumulated undistributed net investment income 811,569 334,279 108,559 Net unrealized appreciation (computed on the basis of identified cost) 2,439,745 632,296 450,132 - ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares $ 146,573,593 $ 56,083,394 $ 37,186,107 - ----------------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING (LIQUIDATION PREFERENCE OF $25,000 PER SHARE) 3,500 1,350 900 - ----------------------------------------------------------------------------------------------------------------------------- COMMON SHARES OUTSTANDING 9,907,581 3,851,257 2,555,923 - ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE Net assets applicable to common shares DIVIDED BY common shares issued and outstanding $ 14.79 $ 14.56 $ 14.55 - -----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements. 31
INSURED INSURED INSURED MASSACHUSETTS FUND MICHIGAN FUND NEW JERSEY FUND - ----------------------------------------------------------------------------------------------------------------------------- ASSETS Investments-- Identified cost $ 41,245,388 $ 34,462,526 $ 59,076,213 Unrealized appreciation 502,414 669,696 949,837 - ----------------------------------------------------------------------------------------------------------------------------- Investments, at value $ 41,747,802 $ 35,132,222 $ 60,026,050 - ----------------------------------------------------------------------------------------------------------------------------- Interest receivable 569,492 575,283 768,290 - ----------------------------------------------------------------------------------------------------------------------------- Total assets $ 42,317,294 $ 35,707,505 $ 60,794,340 - ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable for investments purchased $ 736,017 $ -- $ -- Payable for daily variation margin on open financial futures contracts 108,750 80,875 135,937 Due to bank 366,457 214,747 449,125 Accrued expenses 18,544 18,626 21,909 - ----------------------------------------------------------------------------------------------------------------------------- Total liabilities $ 1,229,768 $ 314,248 $ 606,971 - ----------------------------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends 15,502,014 13,500,000 22,500,581 - ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares $ 25,585,512 $ 21,893,257 $ 37,686,788 - ----------------------------------------------------------------------------------------------------------------------------- SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 17,440 $ 15,079 $ 25,539 Additional paid-in capital 24,701,591 21,354,633 36,190,426 Accumulated net realized gain (loss) (computed on the basis of identified cost) 584,592 (74,821) 749,740 Accumulated undistributed net investment income 137,386 116,639 218,635 Net unrealized appreciation (computed on the basis of identified cost) 144,503 481,727 502,448 - ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares $ 25,585,512 $ 21,893,257 $ 37,686,788 - ----------------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING (LIQUIDATION PREFERENCE OF $25,000 PER SHARE) 620 540 900 - ----------------------------------------------------------------------------------------------------------------------------- COMMON SHARES OUTSTANDING 1,744,040 1,507,930 2,553,854 - ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE Net assets applicable to common shares DIVIDED BY common shares issued and outstanding $ 14.67 $ 14.52 $ 14.76 - -----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements. 32
INSURED INSURED INSURED NEW YORK FUND II OHIO FUND PENNSYLVANIA FUND - ----------------------------------------------------------------------------------------------------------------------------- ASSETS Investments-- Identified cost $ 58,629,018 $ 56,870,433 $ 67,068,257 Unrealized appreciation 1,224,005 924,927 814,670 - ----------------------------------------------------------------------------------------------------------------------------- Investments, at value $ 59,853,023 $ 57,795,360 $ 67,882,927 - ----------------------------------------------------------------------------------------------------------------------------- Cash -- -- 111,097 Interest receivable 822,444 855,105 1,029,189 - ----------------------------------------------------------------------------------------------------------------------------- Total assets $ 60,675,467 $ 58,650,465 $ 69,023,213 - ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable for daily variation margin on open financial futures contracts $ 72,500 $ 63,437 $ 174,000 Due to bank 92,301 81,113 -- Accrued expenses 22,886 20,118 24,225 - ----------------------------------------------------------------------------------------------------------------------------- Total liabilities $ 187,687 $ 164,668 $ 198,225 - ----------------------------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends 22,503,672 21,876,254 26,003,379 - ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares $ 37,984,108 $ 36,609,543 $ 42,821,609 - ----------------------------------------------------------------------------------------------------------------------------- SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 25,536 $ 25,042 $ 29,376 Additional paid-in capital 36,186,792 35,484,736 41,633,458 Accumulated net realized gain (computed on the basis of identified cost) 626,987 328,253 672,980 Accumulated undistributed net investment income 174,093 68,227 171,562 Net unrealized appreciation (computed on the basis of identified cost) 970,700 703,285 314,233 - ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to common shares $ 37,984,108 $ 36,609,543 $ 42,821,609 - ----------------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING (LIQUIDATION PREFERENCE OF $25,000 PER SHARE) 900 875 1,040 - ----------------------------------------------------------------------------------------------------------------------------- COMMON SHARES OUTSTANDING 2,553,603 2,504,186 2,937,624 - ----------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE Net assets applicable to common shares DIVIDED BY common shares issued and outstanding $ 14.87 $ 14.62 $ 14.58 - -----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements. 33 Statements of Operations For the Period Ended September 30, 2003(1)
INSURED INSURED INSURED MUNICIPAL FUND II CALIFORNIA FUND II FLORIDA FUND - ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 9,654,344 $ 3,585,738 $ 2,289,490 - ----------------------------------------------------------------------------------------------------------------------------- Total investment income $ 9,654,344 $ 3,585,738 $ 2,289,490 - ----------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment adviser fee $ 1,003,100 $ 386,099 $ 256,780 Trustees fees and expenses 4,469 3,404 886 Legal and accounting services 38,585 30,546 27,587 Printing and postage 12,451 8,717 7,697 Custodian fee 64,064 25,490 23,610 Organization costs 7,500 7,500 7,500 Transfer and dividend disbursing agent 92,534 35,569 23,913 Preferred shares remarketing agent fee 77,013 58,087 39,033 Miscellaneous 20,618 10,416 11,645 - ----------------------------------------------------------------------------------------------------------------------------- Total expenses $ 1,320,334 $ 565,828 $ 398,651 - ----------------------------------------------------------------------------------------------------------------------------- Deduct-- Reduction of custodian fee 21,396 8,156 19,075 Reduction of investment adviser fee 273,573 105,356 70,169 Expense reimbursement of organization costs 7,500 7,500 7,500 - ----------------------------------------------------------------------------------------------------------------------------- Total expense reductions $ 302,469 $ 121,012 $ 96,744 - ----------------------------------------------------------------------------------------------------------------------------- Net expenses $ 1,017,865 $ 444,816 $ 301,907 - ----------------------------------------------------------------------------------------------------------------------------- Net investment income $ 8,636,479 $ 3,140,922 $ 1,987,583 - ----------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss)-- Investment transactions (identified cost basis) 1,554,032 (29,599) (1,885) Financial futures contracts 1,141,163 505,390 371,504 - ----------------------------------------------------------------------------------------------------------------------------- Net realized gain $ 2,695,195 $ 475,791 $ 369,619 - ----------------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation)-- Investments (identified cost basis) 4,619,142 1,283,765 894,230 Financial futures contracts (2,179,397) (651,469) (444,098) - ----------------------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) $ 2,439,745 $ 632,296 $ 450,132 - ----------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain $ 5,134,940 $ 1,108,087 $ 819,751 - ----------------------------------------------------------------------------------------------------------------------------- Distributions to preferred shareholders $ (701,821) $ (192,472) $ (152,002) - ----------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $ 13,069,598 $ 4,056,537 $ 2,655,332 - -----------------------------------------------------------------------------------------------------------------------------
(1) For the period from the start of business, November 29, 2002, to September 30, 2003. See notes to financial statements. 34
INSURED INSURED INSURED MASSACHUSETTS FUND MICHIGAN FUND NEW JERSEY FUND - ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 1,641,805 $ 1,427,904 $ 2,398,276 - ----------------------------------------------------------------------------------------------------------------------------- Total investment income $ 1,641,805 $ 1,427,904 $ 2,398,276 - ----------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment adviser fee $ 175,757 $ 152,044 $ 258,507 Trustees fees and expenses 887 88 887 Legal and accounting services 25,089 24,977 27,589 Printing and postage 5,662 6,096 9,335 Custodian fee 19,001 17,647 22,857 Organization costs 7,500 7,500 7,500 Transfer and dividend disbursing agent 16,600 14,532 24,313 Preferred shares remarketing agent fee 26,558 23,765 39,606 Miscellaneous 10,189 10,225 11,387 - ----------------------------------------------------------------------------------------------------------------------------- Total expenses $ 287,243 $ 256,874 $ 401,981 - ----------------------------------------------------------------------------------------------------------------------------- Deduct-- Reduction of custodian fee $ 8,812 $ 10,011 $ 13,516 Reduction of investment adviser fee 47,930 41,466 70,502 Expense reimbursement of organization costs 7,500 7,500 7,500 - ----------------------------------------------------------------------------------------------------------------------------- Total expense reductions $ 64,242 $ 58,977 $ 91,518 - ----------------------------------------------------------------------------------------------------------------------------- Net expenses $ 223,001 $ 197,897 $ 310,463 - ----------------------------------------------------------------------------------------------------------------------------- Net investment income $ 1,418,804 $ 1,230,007 $ 2,087,813 - ----------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss)-- Investment transactions (identified cost basis) 132,575 (5,568) 200,393 Financial futures contracts 446,676 (78,238) 547,620 - ----------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) $ 579,251 $ (83,806) $ 748,013 - ----------------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation)-- Investments (identified cost basis) 502,414 669,696 949,837 Financial futures contracts (357,911) (187,969) (447,389) - ----------------------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) $ 144,503 $ 481,727 $ 502,448 - ----------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain $ 723,754 $ 397,921 $ 1,250,461 - ----------------------------------------------------------------------------------------------------------------------------- Distributions to preferred shareholders $ (99,094) $ (86,751) $ (143,861) - ----------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $ 2,043,464 $ 1,541,177 $ 3,194,413 - -----------------------------------------------------------------------------------------------------------------------------
(1) For the period from the start of business, November 29, 2002, to September 30, 2003. See notes to financial statements. 35
INSURED INSURED INSURED NEW YORK FUND II OHIO FUND PENNSYLVANIA FUND - ----------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 2,382,058 $ 2,221,070 $ 2,695,621 - ----------------------------------------------------------------------------------------------------------------------------- Total investment income $ 2,382,058 $ 2,221,070 $ 2,695,621 - ----------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment adviser fee $ 258,678 $ 250,253 $ 295,042 Trustees fees and expenses 887 886 887 Legal and accounting services 29,188 27,583 27,607 Printing and postage 7,171 8,964 11,233 Custodian fee 23,121 23,052 25,228 Organization costs 7,500 7,500 7,500 Transfer and dividend disbursing agent 22,394 26,716 27,761 Preferred shares remarketing agent fee 39,144 37,048 45,767 Miscellaneous 11,173 11,025 12,409 - ----------------------------------------------------------------------------------------------------------------------------- Total expenses $ 399,256 $ 393,027 $ 453,434 - ----------------------------------------------------------------------------------------------------------------------------- Deduct-- Reduction of custodian fee 16,269 19,087 20,242 Reduction of investment adviser fee 70,549 68,251 80,466 Expense reimbursement of organization costs 7,500 7,500 7,500 - ----------------------------------------------------------------------------------------------------------------------------- Total expense reductions $ 94,318 $ 94,838 $ 108,208 - ----------------------------------------------------------------------------------------------------------------------------- Net expenses $ 304,938 $ 298,189 $ 345,226 - ----------------------------------------------------------------------------------------------------------------------------- Net investment income $ 2,077,120 $ 1,922,881 $ 2,350,395 - ----------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss)-- Investment transactions (identified cost basis) 254,124 13,345 271,458 Financial futures contracts 365,677 297,996 397,160 - ----------------------------------------------------------------------------------------------------------------------------- Net realized gain $ 619,801 $ 311,341 $ 668,618 - ----------------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation)-- Investments (identified cost basis) 1,224,005 924,927 814,670 Financial futures contracts (253,305) (221,642) (500,437) - ----------------------------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) $ 970,700 $ 703,285 $ 314,233 - ----------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain $ 1,590,501 $ 1,014,626 $ 982,851 - ----------------------------------------------------------------------------------------------------------------------------- Distributions to preferred shareholders $ (143,577) $ (147,817) $ (175,228) - ----------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $ 3,524,044 $ 2,789,690 $ 3,158,018 - -----------------------------------------------------------------------------------------------------------------------------
(1) For the period from the start of business, November 29, 2002, to September 30, 2003. See notes to financial statements. 36 Statements of Changes in Net Assets For the Period Ended September 30, 2003(1)
INSURED INSURED INSURED INCREASE (DECREASE) IN NET ASSETS MUNICIPAL FUND II CALIFORNIA FUND II FLORIDA FUND - ----------------------------------------------------------------------------------------------------------------------------- From operations-- Net investment income $ 8,636,479 $ 3,140,922 $ 1,987,583 Net realized gain 2,695,195 475,791 369,619 Net change in unrealized appreciation (depreciation) 2,439,745 632,296 450,132 Distributions to preferred shareholders (701,821) (192,472) (152,002) - ----------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $ 13,069,598 $ 4,056,537 $ 2,655,332 - ----------------------------------------------------------------------------------------------------------------------------- Distributions to common shareholders-- From net investment income (7,076,834) (2,599,597) (1,720,498) - ----------------------------------------------------------------------------------------------------------------------------- Total distributions to common shareholders $ (7,076,834) $ (2,599,597) $ (1,720,498) - ----------------------------------------------------------------------------------------------------------------------------- Capital share transactions-- Proceeds from sale of common shares(2) $ 141,787,289 $ 55,073,394 $ 36,321,367 Reinvestment of distributions to common shareholders 43,049 363 200,519 Offering costs and preferred shares underwriting discounts (1,349,509) (547,303) (370,613) - ----------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from capital share transactions $ 140,480,829 $ 54,526,454 $ 36,151,273 - ----------------------------------------------------------------------------------------------------------------------------- Net increase in net assets $ 146,473,593 $ 55,983,394 $ 37,086,107 - ----------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES At beginning of period $ 100,000 $ 100,000 $ 100,000 - ----------------------------------------------------------------------------------------------------------------------------- At end of period $ 146,573,593 $ 56,083,394 $ 37,186,107 - ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES At end of period $ 811,569 $ 334,279 $ 108,559 - -----------------------------------------------------------------------------------------------------------------------------
(1) For the period from the start of business, November 29, 2002, to September 30, 2003. (2) Proceeds from the sale of shares net of sales load paid of $6,681,076, $2,595,081 and $1,711,478 for Insured Municipal Fund II, Insured California Fund II and Insured Florida Fund, respectively. See notes to financial statements. 37
INSURED INSURED INSURED INCREASE (DECREASE) IN NET ASSETS MASSACHUSETTS FUND MICHIGAN FUND NEW JERSEY FUND - ----------------------------------------------------------------------------------------------------------------------------- From operations-- Net investment income $ 1,418,804 $ 1,230,007 $ 2,087,813 Net realized gain (loss) 579,251 (83,806) 748,013 Net change in unrealized appreciation (depreciation) 144,503 481,727 502,448 Distributions to preferred shareholders (99,094) (86,751) (143,861) - ----------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $ 2,043,464 $ 1,541,177 $ 3,194,413 - ----------------------------------------------------------------------------------------------------------------------------- Distributions to common shareholders-- From net investment income (1,176,983) (1,017,632) (1,723,590) - ----------------------------------------------------------------------------------------------------------------------------- Total distributions to common shareholders $ (1,176,983) $ (1,017,632) $ (1,723,590) - ----------------------------------------------------------------------------------------------------------------------------- Capital share transactions-- Proceeds from sale of common shares(2) $ 24,879,202 $ 21,497,628 $ 36,480,532 Reinvestment of distributions to common shareholders 8,903 8,225 8,074 Offering costs and preferred shares underwriting discounts (269,074) (236,141) (372,641) - ----------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from capital share transactions $ 24,619,031 $ 21,269,712 $ 36,115,965 - ----------------------------------------------------------------------------------------------------------------------------- Net increase in net assets $ 25,485,512 $ 21,793,257 $ 37,586,788 - ----------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES At beginning of period $ 100,000 $ 100,000 $ 100,000 - ----------------------------------------------------------------------------------------------------------------------------- At end of period $ 25,585,512 $ 21,893,257 $ 37,686,788 - ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES At end of period $ 137,386 $ 116,639 $ 218,635 - -----------------------------------------------------------------------------------------------------------------------------
(1) For the period from the start of business, November 29, 2002, to September 30, 2003. (2) Proceeds from sale of shares net of sales load paid of $1,172,318, $1,012,977 and $1,718,978 for Insured Massachusetts Fund, Insured Michigan Fund and Insured New Jersey Fund, respectively. See notes to financial statements. 38
INSURED INSURED INSURED INCREASE (DECREASE) IN NET ASSETS NEW YORK FUND II OHIO FUND PENNSYLVANIA FUND - ----------------------------------------------------------------------------------------------------------------------------- From operations-- Net investment income $ 2,077,120 $ 1,922,881 $ 2,350,395 Net realized gain 619,801 311,341 668,618 Net change in unrealized appreciation (depreciation) 970,700 703,285 314,233 Distributions to preferred shareholders (143,577) (147,817) (175,228) - ----------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from operations $ 3,524,044 $ 2,789,690 $ 3,158,018 - ----------------------------------------------------------------------------------------------------------------------------- Distributions to common shareholders-- From net investment income (1,752,264) (1,689,925) (1,999,243) - ----------------------------------------------------------------------------------------------------------------------------- Total distributions to common shareholders $ (1,752,264) $ (1,689,925) $ (1,999,243) - ----------------------------------------------------------------------------------------------------------------------------- Capital share transactions-- Proceeds from sale of common shares(2) $ 36,480,718 $ 35,761,589 $ 41,979,857 Reinvestment of distributions to common shareholders 4,010 15,937 6,307 Offering costs and preferred shares underwriting discounts (372,400) (367,748) (423,330) - ----------------------------------------------------------------------------------------------------------------------------- Net increase in net assets from capital share transactions $ 36,112,328 $ 35,409,778 $ 41,562,834 - ----------------------------------------------------------------------------------------------------------------------------- Net increase in net assets $ 37,884,108 $ 36,509,543 $ 42,721,609 - ----------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES At beginning of period $ 100,000 $ 100,000 $ 100,000 - ----------------------------------------------------------------------------------------------------------------------------- At end of period $ 37,984,108 $ 36,609,543 $ 42,821,609 - ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES At end of period $ 174,093 $ 68,227 $ 171,562 - -----------------------------------------------------------------------------------------------------------------------------
(1) For the period from the start of business, November 29, 2002, to September 30, 2003. (2) Proceeds from the sale of shares net of sales load paid of $1,718,987, $1,685,101 and $1,978,108 for Insured New York Fund II, Insured Ohio Fund and Insured Pennsylvania Fund, respectively. See notes to financial statements. 39 Financial Highlights Selected data for a common share outstanding during the periods stated
INSURED MUNICIPAL FUND II ----------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------ Net asset value -- Beginning of period (Common shares)(3) $ 14.325 - ------------------------------------------------------------------------------------------------------------------ INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.879 Net realized and unrealized gain 0.508 Distributions to preferred shareholders (0.071) - ------------------------------------------------------------------------------------------------------------------ Total income from operations $ 1.316 - ------------------------------------------------------------------------------------------------------------------ LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.714) - ------------------------------------------------------------------------------------------------------------------ Total distributions to common shareholders $ (0.714) - ------------------------------------------------------------------------------------------------------------------ Preferred and Common shares offering costs charged to paid-in capital $ (0.048) - ------------------------------------------------------------------------------------------------------------------ Preferred Shares underwriting discounts $ (0.089) - ------------------------------------------------------------------------------------------------------------------ Net asset value -- End of period (Common shares) $ 14.790 - ------------------------------------------------------------------------------------------------------------------ Market value -- End of period (Common shares) $ 14.000 - ------------------------------------------------------------------------------------------------------------------ Total Investment Return on Net Asset Value(4) 8.46% - ------------------------------------------------------------------------------------------------------------------ Total Investment Return on Market Value(4) 2.67% - ------------------------------------------------------------------------------------------------------------------
See notes to financial statements. 40
INSURED MUNICIPAL FUND II ----------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 146,574 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 0.86%(6) Net expenses after custodian fee reduction(5) 0.84%(6) Net investment income(5) 7.14%(6) Portfolio Turnover 79% + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Has such actions not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 1.09%(6) Expenses after custodian fee reduction(5) 1.07%(6) Net investment income(5) 6.91%(6) Net investment income per share $ 0.851 - ------------------------------------------------------------------------------------------------------------------ ++ The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 0.57%(6) Net expenses after custodian fee reduction 0.56%(6) Net investment income 4.72%(6) + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Has such actions not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 0.72%(6) Expenses after custodian fee reduction 0.71%(6) Net investment income 4.57%(6) - ------------------------------------------------------------------------------------------------------------------ Senior Securities: Total preferred shares outstanding 3,500 Asset coverage per preferred share(7) $ 66,893 Involuntary liquidation preference per preferred share(8) $ 25,000 Approximate market value per preferred share(8) $ 25,000 - ------------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) For the period from the start of business, November 29, 2002, to September 30, 2003. (3) Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price. (4) Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Fund's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. See notes to financial statements. 41
INSURED CALIFORNIA FUND II ----------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------ Net asset value -- Beginning of period (Common shares)(3) $ 14.325 - ------------------------------------------------------------------------------------------------------------------ INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.822 Net realized and unrealized gain 0.281 Distributions to preferred shareholders (0.050) - ------------------------------------------------------------------------------------------------------------------ Total income from operations $ 1.053 - ------------------------------------------------------------------------------------------------------------------ LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.675) - ------------------------------------------------------------------------------------------------------------------ Total distributions to common shareholders $ (0.675) - ------------------------------------------------------------------------------------------------------------------ Preferred and Common shares offering costs charged to paid-in capital $ (0.054) - ------------------------------------------------------------------------------------------------------------------ Preferred Shares underwriting discounts $ (0.089) - ------------------------------------------------------------------------------------------------------------------ Net asset value -- End of period (Common shares) $ 14.560 - ------------------------------------------------------------------------------------------------------------------ Market value -- End of period (Common shares) $ 13.800 - ------------------------------------------------------------------------------------------------------------------ Total Investment Return on Net Asset Value(4) 6.62% - ------------------------------------------------------------------------------------------------------------------ Total Investment Return on Market Value(4) 1.06% - ------------------------------------------------------------------------------------------------------------------
See notes to financial statements. 42
INSURED CALIFORNIA FUND II ------------------------------ PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 56,083 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 0.98%(6) Net expenses after custodian fee reduction(5) 0.96%(6) Net investment income(5) 6.75%(6) Portfolio Turnover 36% + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Has such actions not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 1.22%(6) Expenses after custodian fee reduction(5) 1.20%(6) Net investment income(5) 6.51%(6) Net investment income per share $ 0.793 - ------------------------------------------------------------------------------------------------------------------ ++ The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 0.64%(6) Net expenses after custodian fee reduction 0.63%(6) Net investment income 4.46%(6) + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Has such actions not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 0.80%(6) Expenses after custodian fee reduction 0.79%(6) Net investment income 4.30%(6) - ------------------------------------------------------------------------------------------------------------------ Senior Securities: Total preferred shares outstanding 1,350 Asset coverage per preferred share(7) $ 66,545 Involuntary liquidation preference per preferred share(8) $ 25,000 Approximate market value per preferred share(8) $ 25,000 - ------------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) For the period from the start of business, November 29, 2002, to September 30, 2003. (3) Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price. (4) Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Fund's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. See notes to financial statements. 43
INSURED FLORIDA FUND ------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ---------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares)(3) $ 14.325 - ---------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.788 Net realized and unrealized gain 0.319 Distributions to preferred shareholders (0.060) - ---------------------------------------------------------------------------------------------------------------- Total income from operations $ 1.047 - ---------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.675) - ---------------------------------------------------------------------------------------------------------------- Total distributions to common shareholders $ (0.675) - ---------------------------------------------------------------------------------------------------------------- Preferred and Common shares offering costs charged to paid-in capital $ (0.058) - ---------------------------------------------------------------------------------------------------------------- Preferred Shares underwriting discounts $ (0.089) - ---------------------------------------------------------------------------------------------------------------- Net asset value -- End of period (Common shares) $ 14.550 - ---------------------------------------------------------------------------------------------------------------- Market value -- End of period (Common shares) $ 14.100 - ---------------------------------------------------------------------------------------------------------------- Total Investment Return on Net Asset Value(4) 6.37% - ---------------------------------------------------------------------------------------------------------------- Total Investment Return on Market Value(4) 3.08% - ----------------------------------------------------------------------------------------------------------------
See notes to financial statements. 44
INSURED FLORIDA FUND ------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ---------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 37,186 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.04%(6) Net expenses after custodian fee reduction(5) 0.98%(6) Net investment income(5) 6.45%(6) Portfolio Turnover 29% + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 1.29%(6) Expenses after custodian fee reduction(5) 1.23%(6) Net investment income(5) 6.20%(6) Net investment income per share $ 0.757 - ---------------------------------------------------------------------------------------------------------------- ++ The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 0.69%(6) Net expenses after custodian fee reduction 0.65%(6) Net investment income 4.25%(6) + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 0.86%(6) Expenses after custodian fee reduction 0.82%(6) Net investment income 4.08%(6) - ---------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 900 Asset coverage per preferred share(7) $ 66,319 Involuntary liquidation preference per preferred share(8) $ 25,000 Approximate market value per preferred share(8) $ 25,000 - ----------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) For the period from the start of business, November 29, 2002, to September 30, 2003. (3) Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price. (4) Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Fund's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. See notes to financial statements. 45
INSURED MASSACHUSETTS FUND ------------------------------ PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------ Net asset value -- Beginning of period (Common shares)(3) $ 14.325 - ------------------------------------------------------------------------------------------------------------------ INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.823 Net realized and unrealized gain 0.411 Distributions to preferred shareholders (0.058) - ------------------------------------------------------------------------------------------------------------------ Total income from operations $ 1.176 - ------------------------------------------------------------------------------------------------------------------ LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.675) - ------------------------------------------------------------------------------------------------------------------ Total distributions to common shareholders $ (0.675) - ------------------------------------------------------------------------------------------------------------------ Preferred and Common shares offering costs charged to paid-in capital $ (0.066) - ------------------------------------------------------------------------------------------------------------------ Preferred Shares underwriting discounts $ (0.090) - ------------------------------------------------------------------------------------------------------------------ Net asset value -- End of period (Common shares) $ 14.670 - ------------------------------------------------------------------------------------------------------------------ Market value -- End of period (Common shares) $ 14.450 - ------------------------------------------------------------------------------------------------------------------ Total Investment Return on Net Asset Value(4) 7.22% - ------------------------------------------------------------------------------------------------------------------ Total Investment Return on Market Value(4) 5.61% - ------------------------------------------------------------------------------------------------------------------
See notes to financial statements. 46
INSURED MASSACHUSETTS FUND ------------------------------ PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 25,586 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.10%(6) Net expenses after custodian fee reduction(5) 1.06%(6) Net investment income(5) 6.73%(6) Portfolio Turnover 81% + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Has such actions not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 1.36%(6) Expenses after custodian fee reduction(5) 1.32%(6) Net investment income(5) 6.47%(6) Net investment income per share $ 0.791 - ------------------------------------------------------------------------------------------------------------------ ++ The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 0.73%(6) Net expenses after custodian fee reduction 0.70%(6) Net investment income 4.42%(6) + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 0.90%(6) Expenses after custodian fee reduction 0.87%(6) Net investment income 4.25%(6) - ------------------------------------------------------------------------------------------------------------------ Senior Securities: Total preferred shares outstanding 620 Asset coverage per preferred share(7) $ 66,270 Involuntary liquidation preference per preferred share(8) $ 25,000 Approximate market value per preferred share(8) $ 25,000 - ------------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) For the period from the start of business, November 29, 2002 to September 30, 2003. (3) Net asset value at the beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price. (4) Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annaulized basis. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Fund's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. See notes to financial statements. 47
INSURED MICHIGAN FUND ---------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares)(3) $ 14.325 - ----------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.824 Net realized and unrealized gain 0.262 Distributions to preferred shareholders (0.058) - ----------------------------------------------------------------------------------------------------------------- Total income from operations $ 1.028 - ----------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.675) - ----------------------------------------------------------------------------------------------------------------- Total distributions to common shareholders $ (0.675) - ----------------------------------------------------------------------------------------------------------------- Preferred and Common shares offering costs charged to paid-in capital $ (0.068) - ----------------------------------------------------------------------------------------------------------------- Preferred Shares underwriting discounts $ (0.090) - ----------------------------------------------------------------------------------------------------------------- Net asset value -- End of period (Common shares) $ 14.520 - ----------------------------------------------------------------------------------------------------------------- Market value -- End of period (Common shares) $ 14.410 - ----------------------------------------------------------------------------------------------------------------- Total Investment Return on Net Asset Value(4) 6.12% - ----------------------------------------------------------------------------------------------------------------- Total Investment Return on Market Value(4) 5.31% - -----------------------------------------------------------------------------------------------------------------
See notes to financial statements. 48
INSURED MICHIGAN FUND ---------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 21,893 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.14%(6) Net expenses after custodian fee reduction(5) 1.09%(6) Net investment income(5) 6.75%(6) Portfolio Turnover 79% + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Has such actions not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 1.41%(6) Expenses after custodian fee reduction(5) 1.36%(6) Net investment income(5) 6.48%(6) Net investment income per share $ 0.792 - ----------------------------------------------------------------------------------------------------------------- ++ The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 0.75%(6) Net expenses after custodian fee reduction 0.71%(6) Net investment income 4.42%(6) + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 0.93%(6) Expenses after custodian fee reduction 0.89%(6) Net investment income 4.25%(6) - ----------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 540 Asset coverage per preferred share(7) $ 65,543 Involuntary liquidation preference per preferred share(8) $ 25,000 Approximate market value per preferred share(8) $ 25,000 - -----------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) For the period from the start of business, November 29, 2002, to September 30, 2003. (3) Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price. (4) Total investment return on net asset value is calculated assuming a purchase at the offering of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Fund's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. See notes to financial statements. 49
INSURED NEW JERSEY FUND ---------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares)(3) $ 14.325 - ----------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.826 Net realized and unrealized gain 0.489 Distributions to preferred shareholders (0.058) - ----------------------------------------------------------------------------------------------------------------- Total income from operations $ 1.257 - ----------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.675) - ----------------------------------------------------------------------------------------------------------------- Total distributions to common shareholders $ (0.675) - ----------------------------------------------------------------------------------------------------------------- Preferred and Common shares offering costs charged to paid-in capital $ (0.058) - ----------------------------------------------------------------------------------------------------------------- Preferred Shares underwriting discounts $ (0.089) - ----------------------------------------------------------------------------------------------------------------- Net asset value -- End of period (Common shares) $ 14.760 - ----------------------------------------------------------------------------------------------------------------- Market value -- End of period (Common shares) $ 14.520 - ----------------------------------------------------------------------------------------------------------------- Total Investment Return on Net Asset Value(4) 7.89% - ----------------------------------------------------------------------------------------------------------------- Total Investment Return on Market Value(4) 6.14% - -----------------------------------------------------------------------------------------------------------------
See notes to financial statements. 50
INSURED NEW JERSEY FUND --------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 37,687 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.03%(6) Net expenses after custodian fee reduction(5) 0.99%(6) Net investment income(5) 6.69%(6) Portfolio Turnover 68% + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 1.28%(6) Expenses after custodian fee reduction(5) 1.24%(6) Net investment income(5) 6.44%(6) Net investment income per share $ 0.795 - ----------------------------------------------------------------------------------------------------------------- ++ The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follow: Ratios (As a percentage of average total net assets): Net expenses 0.69%(6) Net expenses after custodian fee reduction 0.66%(6) Net investment income 4.43%(6) + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 0.85%(6) Expenses after custodian fee reduction 0.82%(6) Net investment income 4.26%(6) - ----------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 900 Asset coverage per preferred share(7) $ 66,875 Involuntary liquidation preference per preferred share(8) $ 25,000 Approximate market value per preferred share(8) $ 25,000 - -----------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) For the period from the start of business, November 29, 2002, to September 30, 2003. (3) Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price. (4) Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Fund's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. See notes to financial statements. 51
INSURED NEW YORK FUND II ---------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares)(3) $ 14.325 - ------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.818 Net realized and unrealized gain 0.617 Distributions to preferred shareholders (0.057) - ------------------------------------------------------------------------------------------------------------------- Total income from operations $ 1.378 - ------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.686) - ------------------------------------------------------------------------------------------------------------------- Total distributions to common shareholders $ (0.686) - ------------------------------------------------------------------------------------------------------------------- Preferred and Common shares offering costs charged to paid-in capital $ (0.058) - ------------------------------------------------------------------------------------------------------------------- Preferred Shares underwriting discounts $ (0.089) - ------------------------------------------------------------------------------------------------------------------- Net asset value -- End of period (Common shares) $ 14.870 - ------------------------------------------------------------------------------------------------------------------- Market value -- End of period (Common shares) $ 13.710 - ------------------------------------------------------------------------------------------------------------------- Total Investment Return on Net Asset Value(4) 8.87% - ------------------------------------------------------------------------------------------------------------------- Total Investment Return on Market Value(4) 0.38% - -------------------------------------------------------------------------------------------------------------------
See notes to financial statements. 52
INSURED NEW YORK FUND II ---------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 37,984 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.03%(6) Net expenses after custodian fee reduction(5) 0.98%(6) Net investment income(5) 6.65%(6) Portfolio Turnover 66% + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Has such actions not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 1.28%(6) Expenses after custodian fee reduction(5) 1.23%(6) Net investment income(5) 6.40%(6) Net investment income per share $ 0.787 - ------------------------------------------------------------------------------------------------------------------- ++ The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 0.68%(6) Net expenses after custodian fee reduction 0.65%(6) Net investment income 4.40%(6) + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 0.85%(6) Expenses after custodian fee reduction 0.82%(6) Net investment income 4.23%(6) - ------------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 900 Asset coverage per preferred share(7) $ 67,209 Involuntary liquidation preference per preferred share(8) $ 25,000 Approximate market value per preferred share(8) $ 25,000 - -------------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) For the period from the start of business, November 29, 2002, to September 30, 2003. (3) Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price. (4) Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Fund's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. See notes to financial statements. 53
INSURED OHIO FUND -------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares)(3) $ 14.325 - ----------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.776 Net realized and unrealized gain 0.402 Distributions to preferred shareholders (0.060) - ----------------------------------------------------------------------------------------------------------------- Total income from operations $ 1.118 - ----------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.675) - ----------------------------------------------------------------------------------------------------------------- Total distributions to common shareholders $ (0.675) - ----------------------------------------------------------------------------------------------------------------- Preferred and Common shares offering costs charged to paid-in capital $ (0.060) - ----------------------------------------------------------------------------------------------------------------- Preferred Shares underwriting discounts $ (0.088) - ----------------------------------------------------------------------------------------------------------------- Net asset value -- End of period (Common shares) $ 14.620 - ----------------------------------------------------------------------------------------------------------------- Market value -- End of period (Common shares) $ 14.430 - ----------------------------------------------------------------------------------------------------------------- Total Investment Return on Net Asset Value(4) 6.85% - ----------------------------------------------------------------------------------------------------------------- Total Investment Return on Market Value(4) 5.46% - -----------------------------------------------------------------------------------------------------------------
See notes to financial statements. 54
INSURED OHIO FUND -------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 36,610 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.05%(6) Net expenses after custodian fee reduction(5) 0.99%(6) Net investment income(5) 6.38%(6) Portfolio Turnover 32% + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 1.30%(6) Expenses after custodian fee reduction(5) 1.24%(6) Net investment income(5) 6.13%(6) Net investment income per share $ 0.746 - ----------------------------------------------------------------------------------------------------------------- ++ The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 0.69%(6) Net expenses after custodian fee reduction 0.65%(6) Net investment income 4.21%(6) + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios would have ben as follows: Ratios (As a percentage of average total net assets): Expenses 0.86%(6) Expenses after custodian fee reduction 0.82%(6) Net investment income 4.04%(6) - ----------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 875 Asset coverage per preferred share(7) $ 66,841 Involuntary liquidation preference per preferred share(8) $ 25,000 Approximate market value per preferred share(8) $ 25,000 - -----------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) For the period from the start of business, November 29, 2002, to September 30, 2003. (3) Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price. (4) Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Fund's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. See notes to financial statements. 55
INSURED PENNSYLVANIA FUND ----------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------ Net asset value -- Beginning of period (Common shares)(3) $ 14.325 - ------------------------------------------------------------------------------------------------------------------ INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.811 Net realized and unrealized gain 0.331 Distributions to preferred shareholders (0.060) - ------------------------------------------------------------------------------------------------------------------ Total income from operations $ 1.082 - ------------------------------------------------------------------------------------------------------------------ LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.681) - ------------------------------------------------------------------------------------------------------------------ Total distributions to common shareholders $ (0.681) - ------------------------------------------------------------------------------------------------------------------ Preferred and Common shares offering costs charged to paid-in capital $ (0.056) - ------------------------------------------------------------------------------------------------------------------ Preferred Shares underwriting discounts $ (0.090) - ------------------------------------------------------------------------------------------------------------------ Net asset value -- End of period (Common shares) $ 14.580 - ------------------------------------------------------------------------------------------------------------------ Market value -- End of period (Common shares) $ 14.330 - ------------------------------------------------------------------------------------------------------------------ Total Investment Return on Net Asset Value(4) 6.63% - ------------------------------------------------------------------------------------------------------------------ Total Investment Return on Market Value(4) 4.80% - ------------------------------------------------------------------------------------------------------------------
See notes to financial statements. 56
INSURED PENNSYLVANIA FUND ----------------------------- PERIOD ENDED SEPTEMBER 30, 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 42,822 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(5) 1.03%(6) Net expenses after custodian fee reduction(5) 0.97%(6) Net investment income(5) 6.64%(6) Portfolio Turnover 34% + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios and net investment income per share would have been as follows: Ratios (As a percentage of average net assets applicable to common shares): Expenses(5) 1.28%(6) Expenses after custodian fee reduction(5) 1.22%(6) Net investment income(5) 6.39%(6) Net investment income per share $ 0.780 - ------------------------------------------------------------------------------------------------------------------ ++ The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows: Ratios (As a percentage of average total net assets): Net expenses 0.68%(6) Net expenses after custodian fee reduction 0.64%(6) Net investment income 4.37%(6) + The operating expenses of the Fund reflect a reduction of the investment adviser fee and a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 0.84%(6) Expenses after custodian fee reduction 0.80%(6) Net investment income 4.20%(6) - ------------------------------------------------------------------------------------------------------------------ Senior Securities: Total preferred shares outstanding 1,040 Asset coverage per preferred share(7) $ 66,178 Involuntary liquidation preference per preferred share(8) $ 25,000 Approximate market value per preferred share(8) $ 25,000 - ------------------------------------------------------------------------------------------------------------------
(1) Computed using average common shares outstanding. (2) For the period from the start of business, November 29, 2002, to September 30, 2003. (3) Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price. (4) Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis. (5) Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Fund's leveraged capital structure. (6) Annualized. (7) Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding. (8) Plus accumulated and unpaid dividends. See notes to financial statements. 57 EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2003 NOTES TO FINANCIAL STATEMENTS 1 SIGNIFICANT ACCOUNTING POLICIES Eaton Vance Insured Municipal Bond Fund II (Insured Municipal Fund II), Eaton Vance Insured California Municipal Bond Fund II (Insured California Fund II), Eaton Vance Insured Florida Municipal Bond Fund (Insured Florida Fund), Eaton Vance Insured Massachusetts Municipal Bond Fund (Insured Massachusetts Fund), Eaton Vance Insured Michigan Municipal Bond Fund (Insured Michigan Fund), Eaton Vance Insured New Jersey Municipal Bond Fund (Insured New Jersey Fund), Eaton Vance Insured New York Municipal Bond Fund II (Insured New York Fund II), Eaton Vance Insured Ohio Municipal Bond Fund (Insured Ohio Fund), and Eaton Vance Insured Pennsylvania Municipal Bond Fund (Insured Pennsylvania Fund) (individually referred to as the Fund or collectively the Funds) are registered under the Investment Company Act of 1940, as amended, as non-diversified, closed-end management investment companies. Each of the Funds was organized under the laws of The Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated October 3, 2002. Each Fund's investment objective is to achieve current income exempt from regular federal income tax, including alternative minimum tax, and taxes in its specified state. Each Fund seeks to achieve its objective by investing primarily in high grade municipal obligations that are insured as to the timely payment of principal and interest. The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America. A INVESTMENT VALUATION -- Municipal bonds are normally valued on the basis of valuations furnished by a pricing service. Futures contracts listed on the commodity exchanges are valued at closing settlement prices. Interest rate swaps are normally valued on the basis of valuations furnished by a broker. Short-term obligations, maturing in sixty days or less, are valued at amortized cost, which approximates fair value. Investments for which valuations or market quotations are unavailable are valued at fair value using methods determined in good faith by or at the direction of the Trustees. B INVESTMENT TRANSACTIONS -- Investment transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined using the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may be settled a month or more after the transaction date. The securities so purchased are subject to market fluctuations during this period. To the extent that when-issued or delayed delivery purchases are outstanding, the Fund instructs the custodian to segregate assets in a separate account, with a current value at least equal to the amount of its purchase commitments. C INCOME -- Interest income is determined on the basis of interest accrued, adjusted for amortization of premium or discount. D FEDERAL TAXES -- Each Fund's policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year all of its taxable, if any, and tax-exempt income, including any net realized gain on investments. Therefore, no provision for federal income or excise tax is necessary In addition, each Fund intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in municipal obligations, which are exempt from regular federal income taxes when received by each Fund, as exempt-interest dividends. Additionally, at September 30, 2003, Insured Municipal Fund II, Insured California Fund II, Insured Florida Fund, Insured Michigan Fund and Insured Pennsylvania Fund had net capital losses of $622,940, $175,668, $74,414, $271,775, and $61,966 respectively, attributable to security transactions incurred after October 31, 2002. These are treated as arising on the first day of each Fund's taxable year ending September 20, 2004. E ORGANIZATION AND OFFERING COSTS -- Costs incurred by each Fund in connection with its organization have been expensed. Costs incurred by each Fund in connection with the offerings of the common shares and preferred shares were recorded as a reduction of capital paid in excess of par applicable to common shares. F FINANCIAL FUTURES CONTRACTS -- Upon the entering of a financial futures contract, a Fund is required to deposit (initial margin) either in cash or securities an amount equal to a certain percentage of the purchase price indicated in the financial futures contract. Subsequent payments are made or received by a Fund (margin maintenance) each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for book purposes as unrealized gains or losses by a Fund. A Fund's investment in 58 financial futures contracts is designed for both hedging against anticipated future changes in interest rates and investment purposes. Should interest rates move unexpectedly, a Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. G USE OF ESTIMATES -- The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. H EXPENSE REDUCTION -- Investors Bank & Trust Company (IBT) serves as custodian of the Funds. Pursuant to the respective custodian agreements, IBT receives a fee reduced by credits which are determined based on the average daily cash balances each Fund maintains with IBT. All significant credit balances used to reduce the Funds' custodian fees are reported as a reduction of total expenses in the Statement of Operations. 2 AUCTION PREFERRED SHARES (APS) Each Fund issued Auction Preferred Shares on January 15, 2003 in a public offering. The underwriting discounts and other offering costs were recorded as a reduction of capital of the common shares of each Fund. Dividends on the APS, which accrue daily, are cumulative at a rate which was established at the offering of each Fund's APS and have been reset every seven days thereafter by an auction. Initially, the Insured Municipal Fund II has elected an Initial Dividend Period for Series B of 360 days. The Insured Municipal Fund II pays the Series B accumulated dividends on the first business day of each month. Final payment will be made on January 12, 2004. Series A and Series B are identical in all respects except for the dates of reset for the dividend rates. Auction Preferred Shares issued and outstanding as of September 30, 2003 and dividend rate ranges for the period from the date of accumulation of initial rate, January 17, 2003, to September 30, 2003 are as indicated below:
PREFERRED SHARES ISSUED AND DIVIDENDS RATE FUND OUTSTANDING RANGES -------------------------------------------------------------------------- Insured Municipal Fund II Series A 1,750 0.65% - 1.20% Insured Municipal Fund II Series B 1,750 1.35% Insured California Fund II 1,350 0.40% - 1.15% Insured Florida Fund 900 0.75% - 1.25% Insured Massachusetts Fund 620 0.70% - 1.15% Insured Michigan Fund 540 0.45% - 1.20% Insured New Jersey Fund 900 0.65% - 1.15% Insured New York Fund II 900 0.40% - 1.15% Insured Ohio Fund 875 0.70% - 1.20% Insured Pennsylvania Fund 1,040 0.70% - 1.20%
The APS are redeemable at the option of each Fund at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends on any dividend payment date. The APS are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if any Fund is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS shall remain unpaid in an amount equal to two full years' dividends, the holders of the APS as a class have the right to elect a majority of the Board of Trustees. In general, the holders of the APS and the Common Shares have equal voting rights of one vote per share, except that the holders of the APS, as a separate class, have the right to elect at least two members of the Board of Trustees. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. Each Fund is required to maintain certain asset coverage with respect to the APS as defined in each Trust's By-Laws and the Investment Company Act of 1940. Each Fund pays an annual fee equivalent to 0.25% of the preferred shares liquidation value for the remarketing efforts associated with the preferred auction. 3 DISTRIBUTIONS TO SHAREHOLDERS Each Fund intends to make monthly distributions of net investment income, after payments of any dividends on any outstanding APS. Distributions are recorded on the ex-dividend date. Distributions to preferred shareholders are recorded daily and are payable at the end of each dividend period. Each dividend payment period for the APS is generally seven days. Effective January 17, 2003, the Series B shares of the Insured Municipal Fund II set a special dividend period of 360 days. The Insured Municipal Fund II Series B pays accumulated dividends on the first business day of each month. Final payment will be made on January 12, 2004. The applicable dividend rate for APS on September 30, 2003 are listed below. For the period ended September 30, 2003, the amount of dividends each Fund paid to Auction Preferred 59 shareholders and average APS dividend rates for such period were as follows:
DIVIDENDS PAID TO PREFERRED AVERAGE APS APS SHAREHOLDERS DIVIDEND RATES DIVIDEND RATES FOR THE YEAR FOR THE AS OF ENDED YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, FUND 2003 2003 2003 ----------------------------------------------------------------------------------------- Insured Municipal Fund II Series A 0.70% $ 285,933 0.93% Insured Municipal Fund II Series B 1.35% 415,888 1.35% Insured California Fund II 0.45% 192,472 0.81% Insured Florida Fund 0.99% 152,002 0.96% Insured Massachusetts Fund 0.95% 99,094 0.91% Insured Michigan Fund 0.90% 86,751 0.91% Insured New Jersey Fund 0.95% 143,861 0.91% Insured New York Fund II 0.85% 143,577 0.91% Insured Ohio Fund 0.95% 147,817 0.96% Insured Pennsylvania Fund 0.95% 175,228 0.96%
The Funds distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Permanent differences between book and tax accounting relating to distributions are reclassified to paid in capital. These differences relate primarily to the method for amortizing premiums. 4 INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES The investment adviser fee, computed at an annual rate of 0.55% of each Fund's average weekly gross assets, was earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Fund. Except for Trustees of each Fund who are not members of EVM's organization, officers and Trustees receive remuneration for their services to each Fund out of such investment adviser fee. For the period from the start of business November 29, 2002, to September 30, 2003, the fee was equivalent to 0.55% (annualized) of each Fund's average weekly gross assets and amounted to $1,003,100, $386,099, $256,780, $175,757, $152,044, $258,507, $258,678, $250,253 and $295,042, for Insured Municipal Fund II, Insured California Fund II, Insured Florida Fund, Insured Massachusetts Fund, Insured Michigan Fund, Insured New Jersey Fund, Insured New York Fund II, Insured Ohio Fund and Insured Pennsylvania Fund, respectively. EVM also serves as the administrator of the Funds, but currently receives no compensation. In addition, EVM has contractually agreed to reimburse the Fund for fees and other expenses in the amount of 0.15% of average weekly total assets of each Fund during the first five full years of each Fund's operations, 0.10% of average weekly total assets of each Fund in year six, and 0.05% in year seven. For the period from the start of business November 29, 2002, to September 30, 2003, EVM contractually waived $273,573, $105,356, $70,169, $47,930, $41,466, $70,502, $70,549, $68,251 and $80,466 for Insured Municipal Fund II, Insured California Fund II, Insured Florida Fund, Insured Massachusetts Fund, Insured Michigan Fund, Insured New Jersey Fund, Insured New York Fund II, Insured Ohio Fund and Insured Pennsylvania Fund, respectively. Eaton Vance has agreed to pay offering costs (other than sales load) that exceed $0.03 per common share. Eaton Vance has agreed to reimburse all Fund organization costs. Certain officers and one Trustee of each Fund are officers of the above organization. 5 INVESTMENTS Purchases and sales of investments, other than U.S. Government securities and short-term obligations, for the period from the start of business, November 29, 2002, to September 30, 2003 were as follows: Insured Municipal Fund II Purchases $ 369,102,810 Sales 141,127,948 Insured California Fund II Purchases $ 115,895,636 Sales 28,407,343 Insured Florida Fund Purchases $ 71,058,896 Sales 13,618,421 Insured Massachusetts Fund Purchases $ 67,888,965 Sales 26,831,352
60 Insured Michigan Fund Purchases $ 58,729,625 Sales 24,406,113 Insured New Jersey Fund Purchases $ 94,762,080 Sales 36,037,965 Insured New York Fund II Purchases $ 93,253,519 Sales 34,984,355 Insured Ohio Fund Purchases $ 72,936,204 Sales 16,320,686 Insured Pennsylvania Fund Purchases $ 86,518,801 Sales 19,831,799
6 FEDERAL INCOME TAX BASIS OF UNREALIZED APPRECIATION (DEPRECIATION) The cost and unrealized appreciation (depreciation) in value of the investments owned by each Fund at September 30, 2003, as computed for Federal income tax purposes, were as follows: Insured Municipal Fund II Aggregate cost $ 230,819,860 -------------------------------------------------------- Gross unrealized appreciation $ 6,086,653 Gross unrealized depreciation (1,453,262) -------------------------------------------------------- Net unrealized appreciation $ 4,633,391 -------------------------------------------------------- Insured California Fund II Aggregate cost $ 87,760,534 -------------------------------------------------------- Gross unrealized appreciation $ 1,298,329 Gross unrealized depreciation -- -------------------------------------------------------- Net unrealized appreciation $ 1,298,329 -------------------------------------------------------- Insured Florida Fund Aggregate cost $ 57,513,082 -------------------------------------------------------- Gross unrealized appreciation $ 913,373 Gross unrealized depreciation (12,684) -------------------------------------------------------- Net unrealized appreciation $ 900,689 -------------------------------------------------------- Insured Massachusetts Fund Aggregate cost $ 41,240,081 -------------------------------------------------------- Gross unrealized appreciation $ 575,776 Gross unrealized depreciation (68,055) -------------------------------------------------------- Net unrealized appreciation $ 507,721 -------------------------------------------------------- Insured Michigan Fund Aggregate cost $ 34,453,541 -------------------------------------------------------- Gross unrealized appreciation $ 701,554 Gross unrealized depreciation (22,873) -------------------------------------------------------- Net unrealized appreciation $ 678,681 -------------------------------------------------------- Insured New Jersey Fund Aggregate cost $ 59,075,698 -------------------------------------------------------- Gross unrealized appreciation $ 1,140,636 Gross unrealized depreciation (190,284) -------------------------------------------------------- Net unrealized appreciation $ 950,352 -------------------------------------------------------- Insured New York Fund II Aggregate cost $ 58,622,060 -------------------------------------------------------- Gross unrealized appreciation $ 1,332,851 Gross unrealized depreciation (101,888) -------------------------------------------------------- Net unrealized appreciation $ 1,230,963 -------------------------------------------------------- Insured Ohio Fund Aggregate cost $ 56,853,524 -------------------------------------------------------- Gross unrealized appreciation $ 969,441 Gross unrealized depreciation (27,605) -------------------------------------------------------- Net unrealized appreciation $ 941,836 -------------------------------------------------------- Insured Pennsylvania Fund Aggregate cost $ 67,063,893 -------------------------------------------------------- Gross unrealized appreciation $ 850,887 Gross unrealized depreciation (31,853) -------------------------------------------------------- Net unrealized appreciation $ 819,034 --------------------------------------------------------
61 7 SHARES OF BENEFICIAL INTEREST The Declaration of Trust permits the Funds to issue an unlimited number of full and fractional $0.01 par value common shares. Transactions in common shares for the period from the start of business November 29, 2002, to September 30, 2003 were as follows:
INSURED MUNICIPAL FUND II ------------------------ PERIOD ENDED SEPTEMBER 30, 2003 ----------------------------------------------------------------- Sales 9,897,891 Shares issued pursuant to the Trust's dividend reinvestment plan 3,023 ----------------------------------------------------------------- Net increase 9,900,914 -----------------------------------------------------------------
INSURED CALIFORNIA FUND II ------------------------ PERIOD ENDED SEPTEMBER 30, 2003 ----------------------------------------------------------------- Sales 3,844,564 Shares issued pursuant to the Trust's dividend reinvestment plan 26 ----------------------------------------------------------------- Net increase 3,844,590 -----------------------------------------------------------------
INSURED FLORIDA FUND ------------------------ PERIOD ENDED SEPTEMBER 30, 2003 ----------------------------------------------------------------- Sales 2,535,523 Shares issued pursuant to the Trust's dividend reinvestment plan 13,733 ----------------------------------------------------------------- Net increase 2,549,256 -----------------------------------------------------------------
INSURED MASSACHUSETTS FUND ------------------------ PERIOD ENDED SEPTEMBER 30, 2003 ----------------------------------------------------------------- Sales 1,736,767 Shares issued pursuant to the Trust's dividend reinvestment plan 606 ----------------------------------------------------------------- Net increase 1,737,373 -----------------------------------------------------------------
INSURED MICHIGAN FUND ------------------------ PERIOD ENDED SEPTEMBER 30, 2003 ----------------------------------------------------------------- Sales 1,500,707 Shares issued pursuant to the Trust's dividend reinvestment plan 556 ----------------------------------------------------------------- Net increase 1,501,263 -----------------------------------------------------------------
INSURED NEW JERSEY FUND ------------------------ PERIOD ENDED SEPTEMBER 30, 2003 ----------------------------------------------------------------- Sales 2,546,634 Shares issued pursuant to the Trust's dividend reinvestment plan 553 ----------------------------------------------------------------- Net increase 2,547,187 -----------------------------------------------------------------
INSURED NEW YORK FUND II ------------------------ PERIOD ENDED SEPTEMBER 30, 2003 ----------------------------------------------------------------- Sales 2,546,647 Shares issued pursuant to the Trust's dividend reinvestment plan 289 ----------------------------------------------------------------- Net increase 2,546,936 -----------------------------------------------------------------
INSURED OHIO FUND ------------------------ PERIOD ENDED SEPTEMBER 30, 2003 ----------------------------------------------------------------- Sales 2,496,446 Shares issued pursuant to the Trust's dividend reinvestment plan 1,073 ----------------------------------------------------------------- Net increase 2,497,519 -----------------------------------------------------------------
INSURED PENNSYLVANIA FUND ------------------------ PERIOD ENDED SEPTEMBER 30, 2003 ----------------------------------------------------------------- Sales 2,930,531 Shares issued pursuant to the Trust's dividend reinvestment plan 426 ----------------------------------------------------------------- Net increase 2,930,957 -----------------------------------------------------------------
62 8 FINANCIAL INSTRUMENTS Each Fund may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments include futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment each Fund has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. A summary of obligations under these financial instruments at September 30, 2003 is as follows: FUTURES CONTRACTS
EXPIRATION NET UNREALIZED FUND DATE CONTRACTS POSITION DEPRECIATION ----------------------------------------------------------------------------------------------- Insured Municipal II 12/03 375 U.S. Treasury Bond Short $ (2,179,397) ----------------------------------------------------------------------------------------------- Insured California II 12/03 125 U.S. Treasury Bond Short $ (651,469) ----------------------------------------------------------------------------------------------- Insured Florida 12/03 85 U.S. Treasury Bond Short $ (444,098) ----------------------------------------------------------------------------------------------- Insured Massachusetts 12/03 60 U.S. Treasury Bond Short $ (357,911) ----------------------------------------------------------------------------------------------- Insured Michigan 12/03 47 U.S. Treasury Bond Short $ (187,969) ----------------------------------------------------------------------------------------------- Insured New Jersey 12/03 75 U.S. Treasury Bond Short $ (447,389) ----------------------------------------------------------------------------------------------- Insured New York II 12/03 40 U.S. Treasury Bond Short $ (253,305) ----------------------------------------------------------------------------------------------- Insured Ohio 12/03 35 U.S. Treasury Bond Short $ (221,642) ----------------------------------------------------------------------------------------------- Insured Pennsylvania 12/03 96 U.S. Treasury Bond Short $ (500,437) -----------------------------------------------------------------------------------------------
At September 30, 2003, each Fund had sufficient cash and/or securities to cover margin requirements on open future contracts. 9 ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED) Each Fund held its Annual Meeting of Shareholders on July 25, 2003. The following action was taken by the shareholders of each Fund: Item 1: The election of Jessica M. Bibliowicz and William H. Park as Trustees of the Fund for a three-year term expiring in 2006.
NOMINEE FOR TRUSTEE NOMINEE FOR TRUSTEE ELECTED BY ALL ELECTED BY ALL SHAREHOLDERS SHAREHOLDERS FUND JESSICA M. BIBLIOWICZ WILLIAM H. PARK ------------------------------------------------------------------------------- Insured Municipal Fund II For 9,822,474 9,823,308 Withheld 59,717 58,883 Insured California Fund II For 3,819,284 3,819,284 Withheld 7,809 7,809 Insured Florida Fund For 2,484,057 2,484,057 Withheld 15,231 15,231 Insured Massachusetts Fund For 1,707,098 1,707,098 Withheld 5,820 5,820 Insured Michigan Fund For 1,489,114 1,489,114 Withheld 11,673 11,673 Insured New Jersey Fund For 2,536,240 2,538,240 Withheld 4,800 2,800 Insured New York Fund II For 2,464,633 2,464,813 Withheld 41,170 40,990 Insured Ohio Fund For 2,456,532 2,458,272 Withheld 20,720 18,980 Insured Pennsylvania Fund For 2,868,198 2,875,698 Withheld 27,973 20,473
Mr. Park replaces Donald R. Dwight as a Trustee of each Fund. As of July 2003, Mr. Dwight retired from each Fund's Board of Trustees. In addition, at their June 2003 Board meeting, the Trustees of each Fund appointed Ronald A. Pearlman as a new Trustee of each Fund. As of June 2003, each Fund's Audit Committee membership also changed and now consists of the following independent Trustees: Norton H. Reamer (chairman), Samuel L. Hayes, III, William H. Park, and Lynn A. Stout. 63 EATON VANCE INSURED MUNICIPAL BONDS FUND as of September 30, 2003 INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES AND SHAREHOLDERS OF EATON VANCE EATON VANCE INSURED MUNICIPAL BOND FUND II, EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND II, EATON VANCE INSURED FLORIDA MUNICIPAL BOND FUND, EATON VANCE INSURED MASSACHUSETTS MUNICIPAL BOND FUND, EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND, EATON VANCE INSURED NEW JERSEY MUNICIPAL BOND FUND, EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND II, EATON VANCE INSURED OHIO MUNICIPAL BOND FUND, AND EATON VANCE INSURED PENNSYLVANIA MUNICIPAL BOND FUND: We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Eaton Vance Insured Municipal Bond Fund II, Eaton Vance Insured California Municipal Bond Fund II, Eaton Vance Insured Florida Municipal Bond Fund, Eaton Vance Insured Massachusetts Municipal Bond Fund, Eaton Vance Insured Michigan Municipal Bond Fund, Eaton Vance Insured New Jersey Municipal Bond Fund, Eaton Vance Insured New York Municipal Bond Fund II, Eaton Vance Insured Ohio Municipal Bond Fund, and Eaton Vance Insured Pennsylvania Municipal Bond Fund (the "Funds") as of September 30, 2003, and the related statements of operations and changes in net assets and financial highlights for the period from the start of business, November 29, 2002 to September 30, 2003. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. Our procedures included confirmation of securities held as of September 30, 2003 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights, referred to above, present fairly, in all material respects, the financial position of Eaton Vance Insured Municipal Bond Fund II, Eaton Vance Insured California Municipal Bond Fund II, Eaton Vance Insured Florida Municipal Bond Fund, Eaton Vance Insured Massachusetts Municipal Bond Fund, Eaton Vance Insured Michigan Municipal Bond Fund, Eaton Vance Insured New Jersey Municipal Bond Fund, Eaton Vance Insured New York Municipal Bond Fund II, Eaton Vance Insured Ohio Municipal Bond Fund, and Eaton Vance Insured Pennsylvania Municipal Bond Fund at September 30, 2003, the results of their operations, the changes in their net assets and their financial highlights for the period from the start of business, November 29, 2002 to September 30, 2003, in conformity with accounting principles generally accepted in the United States of America. DELOITTE & TOUCHE LLP Boston, Massachusetts November 18, 2003 64 EATON VANCE INSURED MUNICIPAL BOND FUNDS DIVIDEND REINVESTMENT PLAN Each Fund offers a dividend reinvestment plan (the Plan) pursuant to which shareholders may elect to have dividends and capital gains distributions automatically reinvested in common shares (the Shares) of the same Fund. You may elect to participate in the Plan by completing the Dividend Reinvestment Plan Application Form. If you do not participate, you will receive all distributions in cash paid by check mailed directly to you by PFPC Inc. as dividend paying agent. On the distribution payment date, if the net asset value per Share is equal to or less than the market price per Share plus estimated brokerage commissions, then new Shares will be issued. The number of Shares shall be determined by the greater of the net asset value per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by the Plan Agent. Distributions subject to income tax (if any) are taxable whether or not shares are reinvested. If your shares are in the name of a brokerage firm, bank, or other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that your shares be re-registered in your name with each Fund's transfer agent, PFPC Inc., or you will not be able to participate. The Plan Agent's service fee for handling distributions will be paid by each Fund. Each participant will be charged their pro rata share of brokerage commissions on all open-market purchases. Plan participants may withdraw from the Plan at any time by writing to the Plan Agent at the address noted on the following page. If you withdraw, you will receive shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Plan Agent to have the Plan Agent sell part or all of his or her Shares and remit the proceeds, the Plan Agent is authorized to deduct a $5.00 fee plus brokerage commissions from the proceeds. If you wish to participate in the Plan and your shares are held in your own name, you may complete the form on the following page and deliver it to the Plan Agent. Any inquiries regarding the Plan can be directed to the Plan Agent, PFPC Inc., at 1-800-331-1710. 65 EATON VANCE INSURED MUNICIPAL BOND FUNDS APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan. The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan. ---------------------------------------------- Please print exact name on account ---------------------------------------------- Shareholder signature Date ---------------------------------------------- Shareholder signature Date Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign. YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY. THIS AUTHORIZATION FORM, WHEN SIGNED, SHOULD BE MAILED TO THE FOLLOWING ADDRESS: Eaton Vance Insured Municipal Bond Funds c/o PFPC Inc. P.O. Box 43027 Providence, RI 02940-3027 800-331-1710 NUMBER OF EMPLOYEES Each Fund is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end, nondiversified, management investment company and has no employees. NUMBER OF SHAREHOLDERS As of September 30, 2003, our records indicate that there are 32, 7, 9, 6, 8, 9, 20, 21 and 55 registered shareholders for Insured Municipal Fund II, Insured California Fund II, Insured Florida Fund, Insured Massachusetts Fund, Insured Michigan Fund, Insured New Jersey Fund, Insured New York Fund II, Insured Ohio Fund and Insured Pennsylvania Fund, respectively, and approximately 4,600, 1,500, 1,200, 800, 900, 1,500, 1,200, 1,500 and 1,900 shareholders owning the Fund shares in street name, such as through brokers, banks, and financial intermediaries for Insured Municipal Fund II, Insured California Fund II, Insured Florida Fund, Insured Massachusetts Fund, Insured Michigan Fund, Insured New Jersey Fund, Insured New York Fund II, Insured Ohio Fund and Insured Pennsylvania Fund, respectively. If you are a street name shareholder and wish to receive Fund reports directly, which contain important information about a Fund, please write or call: Eaton Vance Distributors, Inc. The Eaton Vance Building 255 State Street Boston, MA 02109 1-800-225-6265 66 AMERICAN STOCK EXCHANGE SYMBOLS Insured Municipal Fund II EIV Insured California Fund II EIA Insured Florida Fund EIF Insured Massachusetts Fund MAB Insured Michigan Fund MIW Insured New Jersey Fund EMJ Insured New York Fund II NYH Insured Ohio Fund EIO Insured Pennsylvania Fund EIP 67 EATON VANCE INSURED MUNICIPAL BOND FUNDS MANAGEMENT AND ORGANIZATION Fund Management. The Trustees and officers of Eaton Vance Insured Municipal Bond Fund II (EIV), Eaton Vance Insured California Municipal Bond Fund II (EIA), Eaton Vance Insured Florida Municipal Bond Fund (EIF), Eaton Vance Insured Massachusetts Municipal Bond Fund (MAB), Eaton Vance Insured Michigan Municipal Bond Fund (MIW), Eaton Vance Insured New Jersey Municipal Bond Fund (EMJ), Eaton Vance Insured New York Municipal Bond Fund II (NYH), Eaton Vance Insured Ohio Municipal Bond Fund (EIO), and Eaton Vance Pennsylvania Municipal Bond Fund (EIP), (the Funds) are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. The "noninterested Trustees" consist of those Trustees who are not "interested persons" of the Funds, as that term is defined under the 1940 Act. The business address of each Trustee and officer is The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109. As used below, "EVC" refers to Eaton Vance Corp., "EV" refers to Eaton Vance, Inc, "EVM" refers to Eaton Vance Management, "BMR" refers to Boston Management and Research and "EVD" refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is the Funds' principal underwriter and a wholly-owned subsidiary of EVM.
TERM OF NUMBER OF PORTFOLIOS POSITION(S) OFFICE AND IN FUND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH FUNDS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD - ----------------------------------------------------------------------------------------------------------------------------------- INTERESTED TRUSTEE(S) Jessica M. Bibliowicz Trustee Until 2006. 3 years. President and Chief 191 None 11/28/59 Trustee since 2002. Executive Officer of National Financial Partners (financial services company) (since April 1999). President and Chief Operating Officer of John A. Levin & Co. (registered investment adviser) (July 1997 to April 1999) and a Director of Baker, Fentress & Company, which owns John A. Levin & Co. (July 1997 to April 1999). Ms. Bibliowicz is an interested person because of her affiliation with a brokerage firm. James B. Hawkes Trustee and Until 2004. 3 years. Chairman, President and 193 Director of EVC 11/9/41 Vice Trustee since 2002. Chief Executive Officer President of BMR, EVC, EVM and EV; Director of EV; Vice President and Director of EVD. Trustee and/or officer of 193 registered investment companies in the Eaton Vance Fund Complex. Mr. Hawkes is an interested person because of his positions with BMR, EVM, EVC and EV, which are affiliates of the Funds. TERM OF NUMBER OF PORTFOLIOS POSITION(S) OFFICE AND IN FUND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH FUNDS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD - ----------------------------------------------------------------------------------------------------------------------------------- NONINTERESTED TRUSTEE(S) Samuel L. Hayes, III(A) Trustee Until 2004. 3 years. Jacob H. Schiff 193 Director of Tiffany & Co. 2/23/35 Trustee since 2002. Professor of Investment (specialty retailer) and Banking Emeritus, Telect, Inc. Harvard University (telecommunication Graduate School of services company) Business Administration. William H. Park Trustee Until 2006. 3 years. President and Chief 190 None 9/19/47 Trustee since 2003. Executive Officer, Prizm Capital Management, LLC (investment management firm) (since 2002). Executive Vice President and Chief Financial Officer, United Asset Management Corporation (a holding company owning institutional investment management firms) (1982-2001).
68
TERM OF NUMBER OF PORTFOLIOS POSITION(S) OFFICE AND IN FUND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH FUNDS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD - ----------------------------------------------------------------------------------------------------------------------------------- NONINTERESTED TRUSTEE(S) (CONTINUED) Ronald A. Pearlman Trustee Until 2005. 3 years. Professor of Law, 190 None 7/10/40 Trustee since 2003. Georgetown University Law Center (since 1999). Tax Partner, Covington & Burling, Washington, DC (1991-2000). Norton H. Reamer(A) Trustee Until 2005. 3 years. President and Chief 193 None 9/21/35 Trustee since 2002. Executive Officer of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) (since October 2003). President, Unicorn Corporation (an investment and financial advisory services company) (since September 2000). Formerly, Chairman, Hellman, Jordan Management Co., Inc. (an investment management company) (2000-2003). Formerly, Advisory Director of Berkshire Capital Corporation (investment banking firm) (2000-2003). Formerly, Chairman of the Board, United Asset Management Corporation (a holding company owning institutional investment management firms) and Chairman, President and Director, UAM Funds (mutual funds) (1980-2000). Lynn A. Stout Trustee Until 2005. 3 years. Professor of Law, 193 None 9/14/57 Trustee since 2002. University of California at Los Angeles School of Law (since July 2001). Formerly, Professor of Law, Georgetown University Law Center.
PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES
TERM OF POSITION(S) OFFICE AND NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) DATE OF BIRTH FUNDS SERVICE DURING PAST FIVE YEARS - --------------------------------------------------------------------------------------------------------------------------------- Thomas J. Fetter President Since 2002 Vice President of EVM and BMR. Trustee and President of The 8/20/43 Massachusetts Health & Education Tax-Exempt Trust. Officer of 128 registered investment companies managed by EVM or BMR. William H. Ahern, Jr. Vice President of MIW Since 2002 Vice President of EVM and BMR. Officer of 36 registered 7/28/59 investment companies managed by EVM or BMR. Cynthia J. Clemson Vice President of EIA, Since 2002 Vice President of EVM and BMR. Officer of 20 registered 3/2/63 EIF, and EIP investment companies managed by EVM or BMR. Robert B. MacIntosh Vice President Since 2002 Vice President of EVM and BMR. Officer of 128 registered 1/22/57 investment companies managed by EVM or BMR. Alan R. Dynner Secretary Since 2002 Vice President, Secretary and Chief Legal Officer of BMR, EVM, 10/10/40 EVD, EV and EVC. Officer of 193 registered investment companies managed by EVM or BMR. James L. O'Connor Treasurer Since 2002 Vice President of BMR, EVM and EVD. Officer of 115 registered 4/1/45 investment companies managed by EVM or BMR.
(1) Includes both master and feeder funds in a master-feeder structure. (A) APS Trustee. 69 INVESTMENT ADVISER AND ADMINISTRATOR OF EATON VANCE INSURED MUNICIPAL BOND FUNDS EATON VANCE MANAGEMENT The Eaton Vance Building 255 State Street Boston, MA 02109 CUSTODIAN INVESTORS BANK & TRUST COMPANY 200 Clarendon Street Boston, MA 02116 TRANSFER AGENT AND DIVIDEND DISBURSING AGENT PFPC INC. Attn: Eaton Vance Insured Municipal Bond Funds P.O. BOX 43027 Providence, RI 02940-3027 (800) 331-1710 INDEPENDENT AUDITORS DELOITTE & TOUCHE LLP 200 Berkeley Street Boston, MA 02116-5022 EATON VANCE INSURED MUNICIPAL BOND FUNDS THE EATON VANCE BUILDING 255 STATE STREET BOSTON, MA 02109 1557-11/03 91MBIISRC ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES 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. Eaton Vance Insured Municipal Bond Fund II - ------------------------------------------- By: /s/ Thomas J. Fetter ----------------------------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- 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/ James L. O'Connor ----------------------------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- By: /s/ Thomas J. Fetter ----------------------------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES 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. Eaton Vance Insured California Municipal Bond Fund II - ----------------------------------------------------- By: /S/ Thomas J. Fetter ------------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- 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/ James L. O'Connor ------------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- By: /S/ Thomas J. Fetter ------------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES 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. Eaton Vance Insured Florida Municipal Bond Fund - ----------------------------------------------- By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- 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/ James L. O'Connor -------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES 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. Eaton Vance Insured Massachusetts Municipal Bond Fund - ----------------------------------------------------- By: /S/ Thomas J. Fetter ------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- 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/ Jams L. O'Connor ----------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- By: /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES 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. Eaton Vance Insured Michigan Municipal Bond Fund - ------------------------------------------------ By: /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- 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/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- By: /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES 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. Eaton Vance Insured New Jersey Municipal Bond Fund By: /S/ Thomas J. Fetter ------------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- 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/ James L. O'Connor -------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- By: /S/ Thomas J. Fetter ----------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES 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. Eaton Vance Insured New York Municipal Bond Fund II - --------------------------------------------------- By: /s/ Thomas J. Fetter --------------------------------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- 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/ James L. O'Connor --------------------------------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- By: /s/ Thomas J. Fetter --------------------------------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES 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. Eaton Vance Insured Ohio Municipal Bond Fund - -------------------------------------------- By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- 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/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The registrant's Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the President and Chief Executive Officer of Prizm Capital Management, LLC (a fixed income investment management firm). Previously, he served as Executive Vice President and Chief Financial Officer of United Asset Management Corporation ("UAM") (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President of Unicorn Capital (an investment and financial advisory services company), Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm). Previously, Mr. Reamer was Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds). ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not required in this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not required in this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not required in this filing since the registrant invests exclusively in non-voting securities. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS (a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2). (a)(2)(i) Treasurer's Section 302 certification. (a)(2)(ii) President's Section 302 certification. (b) Combined Section 906 certification. SIGNATURES 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. Eaton Vance Insured Pennsylvania Municipal Bond Fund - ---------------------------------------------------- By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- 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/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 18, 2003 ----------------- EX-99.CERT 3 a2122718zex-99_cert.txt EXHIBIT 99.CERT Exhibit 99.Cert FORM N-CSR ITEMS 10(a)(2)(i) & 10(a)(2)(ii) EXHIBIT I, James L. O'Connor; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured Municipal Bond Fund II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /s/ James L. O'Connor - --------------------------------------------- James L. O'Connor Treasurer I, Thomas J. Fetter; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured Municipal Bond Fund II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /s/ Thomas J. Fetter - -------------------------------------------- Thomas J. Fetter President Exhibit 99.Cert FORM N-CSR ITEMS 10(a)(2)(i) & 10(a)(2)(ii) EXHIBIT I, James L. O'Connor; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured California Municipal Bond Fund II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /S/ James L. O'Connor - ----------------------------- James L. O'Connor Treasurer I, Thomas J. Fetter; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured California Municipal Bond Fund II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /S/ Thomas J. Fetter - ------------------------------ Thomas J. Fetter President Exhibit 99.Cert FORM N-CSR ITEMS 10(a)(2)(i) & 10(a)(2)(ii) EXHIBIT I, James L. O'Connor; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured Florida Municipal Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer I, Thomas J. Fetter; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured Florida Municipal Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /s/ Thomas J. Fetter - -------------------- Thomas J. Fetter President Exhibit 99.Cert FORM N-CSR ITEMS 10(a)(2)(i) & 10(a)(2)(ii) EXHIBIT I, James L. O'Connor; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured Massachusetts Municipal Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /S/ James L. O'Connor - --------------------- James L. O'Connor Treasurer I, Thomas J. Fetter; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured Massachusetts Municipal Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /S/ Thomas J. Fetter - -------------------- Thomas J. Fetter President Exhibit 99.Cert FORM N-CSR ITEMS 10(a)(2)(i) & 10(a)(2)(ii) EXHIBIT I, James L. O'Connor certify that: 1. I have reviewed this report on Form N-CSR of Insured Michigan Municipal Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /S/ James L. O'Connor - --------------------- James L. O'Connor Treasurer I, Thomas J. Fetter; certify that: 1. I have reviewed this report on Form N-CSR of Insured Michigan Municipal Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /S/ Thomas J. Fetter - -------------------- Thomas J. Fetter President Exhibit 99.Cert FORM N-CSR ITEMS 10(a)(2)(i) & 10(a)(2)(ii) EXHIBIT I, James L. O'Connor certify that: 1. I have reviewed this report on Form N-CSR of Insured New Jersey Municipal Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /S/ James L. O'Connor - ---------------------- James L. O'Connor Treasurer I, Thomas J. Fetter; certify that: 1. I have reviewed this report on Form N-CSR of Insured New Jersey Municipal Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /S/ Thomas J. Fetter - ----------------------- Thomas J. Fetter President Exhibit 99.Cert FORM N-CSR ITEMS 10(a)(2)(i) & 10(a)(2)(ii) EXHIBIT I, James L. O'Connor; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured New York Municipal Bond Fund II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /s/ James L. O'Connor - --------------------------------------------- James L. O'Connor Treasurer I, Thomas J. Fetter; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured New York Municipal Bond Fund II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /s/ Thomas J. Fetter - -------------------------------------------- Thomas J. Fetter President Exhibit 99.Cert FORM N-CSR ITEMS 10(a)(2)(i) & 10(a)(2)(ii) EXHIBIT I, James L. O'Connor; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured Ohio Municipal Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer I, Thomas J. Fetter; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured Ohio Municipal Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /s/ Thomas J. Fetter - -------------------- Thomas J. Fetter President Exhibit 99.Cert FORM N-CSR ITEMS 10(a)(2)(i) & 10(a)(2)(ii) EXHIBIT I, James L. O'Connor; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured Pennsylvania Municipal Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer I, Thomas J. Fetter; certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured Pennsylvania Municipal Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of the internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: November 18, 2003 ----------------- /s/ Thomas J. Fetter - -------------------- Thomas J. Fetter President EX-99.906CERT 4 a2122718zex-99_906cert.txt EXHIBIT 99.CERT.906 Exhibit 99.Cert.906 FORM N-CSR ITEM 10(b) EXHIBIT CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 The undersigned hereby certify in their capacity as Treasurer and President, respectively, of EATON VANCE INSURED MUNICIPAL BOND FUND II (the "Fund"), that: (a) the Annual Report of the Fund on Form N-CSR for the period ended September 30, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Fund for such period. A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906 HAS BEEN PROVIDED TO THE FUND AND WILL BE RETAINED BY THE FUND AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. Date: November 18, 2003 ----------------- /s/ James L. O'Connor - --------------------------------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- /s/ Thomas J. Fetter - -------------------------------------------- Thomas J. Fetter President Exhibit 99.Cert.906 FORM N-CSR ITEM 10(b) EXHIBIT CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 The undersigned hereby certify in their capacity as Treasurer and President, respectively, of EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND II (the "Fund"), that: (a) the Annual Report of the Fund on Form N-CSR for the period ended September 30, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Fund for such period. A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906 HAS BEEN PROVIDED TO THE FUND AND WILL BE RETAINED BY THE FUND AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. Date: November 18, 2003 ----------------- /S/ James L. O'Connor - --------------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- /S/ Thomas J. Fetter - ----------------------------- Thomas J. Fetter President Exhibit 99.Cert.906 FORM N-CSR ITEM 10(b) EXHIBIT CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 The undersigned hereby certify in their capacity as Treasurer and President, respectively, of EATON VANCE INSURED FLORIDA MUNICIPAL BOND FUND (the "Fund"), that: (a) the Annual Report of the Fund on Form N-CSR for the period ended September 30, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Fund for such period. A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906 HAS BEEN PROVIDED TO THE FUND AND WILL BE RETAINED BY THE FUND AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. Date: November 18, 2003 ----------------- /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- /s/ Thomas J. Fetter - -------------------- Thomas J. Fetter President Exhibit 99.Cert.906 FORM N-CSR ITEM 10(b) EXHIBIT CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 The undersigned hereby certify in their capacity as Treasurer and President, respectively, of EATON VANCE INSURED MASSACHUSETTS MUNICIPAL BOND FUND (the "Fund"), that: (a) the Annual Report of the Fund on Form N-CSR for the period ended September 30, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Fund for such period. A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906 HAS BEEN PROVIDED TO THE FUND AND WILL BE RETAINED BY THE FUND AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. Date: November 18, 2003 ----------------- /S/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- /S/ Thomas J. Fetter - -------------------- Thomas J. Fetter President Exhibit 99.Cert.906 FORM N-CSR ITEM 10(b) EXHIBIT CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 The undersigned hereby certify in their capacity as Treasurer and President, respectively, of EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND (the "Fund"), that: (a) the Annual Report of the Fund on Form N-CSR for the period ended September 30, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Fund for such period. A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906 HAS BEEN PROVIDED TO THE FUND AND WILL BE RETAINED BY THE FUND AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. Date: November 18, 2003 ----------------- /S/ James L. O'Connor - ------------------------ James L. O'Connor Treasurer Date: November 18, 2003 ----------------- /S/ Thomas J. Fetter - ---------------------- Thomas J. Fetter President Exhibit 99.Cert.906 FORM N-CSR ITEM 10(b) EXHIBIT CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 The undersigned hereby certify in their capacity as Treasurer and President, respectively, of EATON VANCE INSURED NEW JERSEY MUNICIPAL BOND FUND (the "Fund"), that: (a) the Annual Report of the Fund on Form N-CSR for the period ended September 30, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Fund for such period. A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906 HAS BEEN PROVIDED TO THE FUND AND WILL BE RETAINED BY THE FUND AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. Date: November 18, 2003 ----------------- /S/ James L. O'Connor - ----------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- /S/ Thomas J. Fetter - ------------------------ Thomas J. Fetter President Exhibit 99.Cert.906 FORM N-CSR ITEM 10(b) EXHIBIT CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 The undersigned hereby certify in their capacity as Treasurer and President, respectively, of EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND II (the "Fund"), that: (a) the Annual Report of the Fund on Form N-CSR for the period ended September 30, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Fund for such period. A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906 HAS BEEN PROVIDED TO THE FUND AND WILL BE RETAINED BY THE FUND AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. Date: November 18, 2003 ----------------- /s/ James L. O'Connor - --------------------------------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- /s/ Thomas J. Fetter - -------------------------------------------- Thomas J. Fetter President Exhibit 99.Cert.906 FORM N-CSR ITEM 10(b) EXHIBIT CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 The undersigned hereby certify in their capacity as Treasurer and President, respectively, of EATON VANCE INSURED OHIO MUNICIPAL BOND FUND (the "Fund"), that: (a) the Annual Report of the Fund on Form N-CSR for the period ended September 30, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Fund for such period. A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906 HAS BEEN PROVIDED TO THE FUND AND WILL BE RETAINED BY THE FUND AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. Date: November 18, 2003 ----------------- /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- /s/ Thomas J. Fetter - -------------------- Thomas J. Fetter President Exhibit 99.Cert.906 FORM N-CSR ITEM 10(b) EXHIBIT CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 The undersigned hereby certify in their capacity as Treasurer and President, respectively, of EATON VANCE INSURED PENNSYLVANIA MUNICIPAL BOND FUND (the "Fund"), that: (a) the Annual Report of the Fund on Form N-CSR for the period ended September 30, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and the results of operations of the Fund for such period. A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906 HAS BEEN PROVIDED TO THE FUND AND WILL BE RETAINED BY THE FUND AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. Date: November 18, 2003 ----------------- /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: November 18, 2003 ----------------- /s/ Thomas J. Fetter - -------------------- Thomas J. Fetter President -----END PRIVACY-ENHANCED MESSAGE-----