-----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, H/arhLl1+95mTn4PfMOcYQWsgZPEBuef9YmiJoDxzRJBPmVIodA5OhqYWYLSJ6uy 7jZTU9RK1HrqFJVINlCK+A== 0001047469-04-019105.txt : 20040602 0001047469-04-019105.hdr.sgml : 20040602 20040602122534 ACCESSION NUMBER: 0001047469-04-019105 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040331 FILED AS OF DATE: 20040602 EFFECTIVENESS DATE: 20040602 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE INSURED FLORIDA MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196870 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21222 FILM NUMBER: 04843460 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21227 FILM NUMBER: 04843454 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 MUNICIPAL BOND FUND II CENTRAL INDEX KEY: 0001196867 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21219 FILM NUMBER: 04843453 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 CALIFORNIA MUNICIPAL BOND FUND II CENTRAL INDEX KEY: 0001196869 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21217 FILM NUMBER: 04843461 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21225 FILM NUMBER: 04843459 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21224 FILM NUMBER: 04843458 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 YORK MUNICIPAL BOND FUND II CENTRAL INDEX KEY: 0001196875 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21218 FILM NUMBER: 04843456 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 NEW JERSEY MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196874 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21229 FILM NUMBER: 04843457 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 OHIO MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196876 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21226 FILM NUMBER: 04843455 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-CSRS 1 a2136070zn-csrs.txt N-CSRS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21219 --------- 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 March 31, 2004 -------------- Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21217 --------- Eaton Vance Insured California II 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 March 31, 2004 -------------- Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21222 --------- 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 March 31, 2004 -------------- Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21225 --------- 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 March 31, 2004 -------------- Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21224 --------- 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 March 31, 2004 -------------- Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21229 --------- 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 March 31, 2004 -------------- Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21218 --------- 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 March 31, 2004 -------------- Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21226 --------- 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 March 31, 2004 -------------- Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File Number: 811-21227 --------- 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 March 31, 2004 -------------- Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS [EV LOGO] [GRAPHIC IMAGE] SEMIANNUAL REPORT MARCH 31, 2004 EATON VANCE INSURED MUNICIPAL BOND FUNDS CLOSED-END FUNDS: INSURED MUNICIPAL II INSURED CALIFORNIA 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 permits 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, 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 March 31, 2004 LETTER TO SHAREHOLDERS [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter President Amid the market volatility of recent years, many investors have become more concerned with risk management. That trend has been especially true in the municipal bond market, where the use of bond insurance has become increasingly common. Today, roughly half of all municipal bond issuance is composed of insured bonds. As part of our continuing educational series, we thought it might be helpful to discuss bond insurance and its impact on the municipal market. THE USE OF BOND INSURANCE HAS GROWN DRAMATICALLY OVER THE YEARS... Municipal bond insurance was initially developed in 1971, when AMBAC Assurance Corp., the nation's first municipal insurer, offered insurance as a way to guarantee principal and interest payments on bond issues in the event of a bond default. Over the following three decades, the municipal market has witnessed a surge in the use of insurance. For example, in 1980, just 3% of all municipal issuance was insured. However, by late 2003, that figure had risen to roughly 50%. Insurance has clear benefits for purchasers: the elimination of default risk of the underlying issuer, AAA quality ratings and an enhancement of an issue's liquidity. (It's important to note that, while insured bonds are insured as to principal and interest payments, they still remain subject to interest rate and market risks.) THE MECHANICS OF MUNICIPAL BOND INSURANCE... We start with the underlying reality that an issuer with a AAA credit rating will pay less in interest expense than an issuer with a lower credit rating. Thus, an issuer must first determine whether purchasing insurance is financially feasible. That is, will the interest savings offset the cost of insurance? If so, the issuer must then qualify for insurance. Just as an individual must qualify for insurance, so must a bond issuer meet certain criteria. The issuer provides key financial data and documents to potential insurers that are then used to assess the issuer's financial strength and underlying fundamentals. If the issuer qualifies, insurance is then effected by "direct purchase," with the payment of a one-time premium by the issuer. The premium fee is calculated as a percentage of the value of the bond issue - typically, around 50 basis points (0.50%), but more if the credit entails higher risk. (An alternative method of purchase involves "elective bidding," in which the insurance is purchased by bond dealers, who determine at the time the bond is sold whether it is more attractive as an insured or uninsured bond.) IN-DEPTH CREDIT ANALYSIS INCLUDES INSURERS AS WELL AS BOND ISSUERS... When analyzing municipal bonds, an investor naturally researches the issuer's fundamentals. However, if the bond is insured, the analyst is concerned with the soundness of the insurer as well. At Eaton Vance, analysis of the insured segment is an integral part of our total municipal research effort. Research includes, among other areas, analysis of an insurer's claims-paying ability, its capital structure and the overall quality of its portfolio of policies. Based on claims-paying ability, there are currently six bond insurers rated AAA by Moody's Investors Service, Standard & Poor's and Fitch Ratings - the nation's leading rating agencies. INSURERS CAN PLAY A VALUABLE ROLE IN STRUCTURING BOND DEALS AND IMPROVING CREDIT QUALITY... Insurers play an important role in capital formation for municipal borrowers, working closely with municipal officials to forge deals that raise capital for vital projects at affordable interest rates. In so doing, the insurers can help states and municipalities achieve more efficient fiscal management. Insurers often re-structure bond deals by insisting on provisions that are intended to make the deal more secure. That has proved a major benefit to investors in recent years. In a more risk-conscious climate, we believe that an ongoing analysis of the insured market is a necessary discipline to invest successfully in today's municipal market. Sincerely, /s/ Thomas J. Fetter Thomas J. Fetter President May 10, 2004 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 EATON VANCE INSURED MUNICIPAL BOND FUNDS as of March 31, 2004 MARKET RECAP U.S. economic activity continued to make progress in the six months ended March 31, 2004, although the pace of the recovery was a topic of strong debate. Businesses increased capital spending, reinvesting in plants and equipment. Meanwhile, consumer spending remained very resilient, despite deepening concerns over the continuing conflict in Iraq, slow job growth and sharply rising gasoline prices. However, the investment climate remained generally positive and, against this backdrop, the bond market generated solid returns during the period. THE CONSTRUCTION AND BUSINESS SERVICE SECTORS WERE AMONG THE LEADERS IN JOB GROWTH... Construction employment, while subject to seasonal fluctuations, contributed strongly to the economy. Gains were also seen in the service sector, where business services, health care, education, retailing and leisure showed strength. Interestingly, temporary employment agencies reported some weakness, suggesting that employers may be increasingly inclined to begin hiring permanent employees. The manufacturing sector remained lackluster. However, hopes rose that recent trends showing less deterioration might mark an end to the relentless job losses dating to 2000. WHILE KEEPING INTEREST RATES AT A RECORD LOW, THE FEDERAL RESERVE CONTINUED TO MONITOR THE ECONOMY CLOSELY FOR INFLATION... The nation's Gross Domestic Product grew by 4.2% in the first quarter of 2004, following a 4.1% rise in the fourth quarter of 2003. While the data suggested a sound overall economy, the the slow pace of job creation remained a concern. The nation's unemployment rate was 5.7% in March 2004, down just 0.1% from 5.8% a year earlier. Recent labor market data have been unusually volatile. The Federal Reserve is likely to keep a close eye on future jobs reports - as well as prices of key commodities and consumer goods - for signs of a return of inflation. Late in the period, inflation appeared to be edging somewhat higher, especially energy, transportation and clothing costs. Nevertheless, through March, the Federal Reserve held its Federal Funds rate - a key short-term interest rate barometer - at 1.00%, where it has stood since June 2003. MUNICIPAL BOND YIELDS NEARLY EQUALLED TREASURY YIELDS [CHART] 30-Year AAA-rated General Obligation (GO) Bonds* 4.75% Taxable equivalent yield in 35.0% tax bracket 7.31% 30-Year Treasury Bond 4.77%
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 the Funds' yield. Statistics as of March 31, 2004. Past performance is no guarantee of future results. Source: Bloomberg, L.P. The municipal bond market performed generally in line with the Treasury market during the six-month period ended March 31, 2004. Ten-year Treasury bond yields - - which were around 3.93% at September 30, 2003 - declined to 3.83% by March 31, 2004, while 10-year municipal yields fell from 3.76% to 3.64%. The Lehman Brothers Municipal Bond Index posted a total return of 3.12% for the six months ended March 31, 2004.* STATE TAX RATES ROSE AGAIN IN 2003, INCREASING THE BURDEN ON STATE TAXPAYERS... While federal taxes declined, state taxes rose significantly in 2002 and 2003, according to the Tax Foundation. Over the past decade, the fastest growing category of state tax collections was individual income taxes, which rose at an average annual rate of 7.7%. That trend has left taxpayers with a larger state tax bill and made a strong case for municipal bonds as one of the few remaining ways to pare one's tax burden. Thus, we continue to believe that municipal bonds remain a worthwhile consideration for 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 March 31, 2004 INVESTMENT UPDATE [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT UPDATE - - While some measures suggested the U.S. economy was slowly recovering, job growth remained sluggish. The nation's manufacturing sector continued to shed jobs, while global outsourcing took an increasing toll on the technology and service sectors. The nation's jobless rate was 5.7% in March 2004, down from 5.8% a year ago. - - Insured* transportation bonds constituted the Fund's largest sector weighting at March 31, 2004. The Fund's holdings were well diversified by geographic region and by project type. Investments included projects for rapid transit, toll bridges, highways, a monorail and an urban skywalk. - - Insured* general obligation bonds (GOs) were notable investments for the Fund. These issues represented high quality at a time when revenues for industrial and economically-sensitive issuers were less certain. - - Insured* water and sewer issuers were large investments. Large population growth in selected areas, such as Atlanta, has escalated the pace of residential building, increasing the need for water and wastewater improvements. That trend has resulted in additional opportunities within this sector. - - The Fund made structural changes, as necessary, to adjust to changing market conditions. Management maintained a well-diversified investment mix, emphasizing diversification according to sector, issuer and coupon. FUND STATISTICS(1) - - Number of Issues: 55 - - Effective Maturity: 11.1 years - - Average Rating: AAA - - Average Call: 10.8 years - - Average Dollar Price: $94.94
THE FUND PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 15.34% for the six months ended March 31, 2004. That return was the result of an increase in share price to $15.45 on March 31, 2004 from $14.00 on September 30, 2003, and the reinvestment of $0.500 in regular monthly dividends and $0.158 in capital gain distributions.(3) - - Based on net asset value, the Fund had a total return of 4.02% for the six months ended March 31, 2004. That return was the result of a decrease in net asset value to $14.72 on March 31, 2004 from $14.79 on September 30, 2003, and the reinvestment of all distributions.(3) - - Based on the most recent dividend and a share price of $15.45, the Fund had a market yield of 6.48% at March 31, 2004.(4) The Fund's market yield is equivalent to a taxable yield of 9.97%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments Non-Rated 1.0% A 3.0% A 4.7% AA 5.8% AAA 85.5%
FUND INFORMATION AS OF MARCH 31, 2004 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One year 16.70% Life of Fund (11/29/02) 13.45
Average Annual Total Returns (by net asset value) One year 7.79% Life of Fund (11/29/02) 9.42
(1) FUND STATISTICS AND RATING DISTRIBUTION 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 AND STATE INCOME 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. PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM THE FUND'S ISSUANCE OF AUCTION PREFERRED SHARES. * 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. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN QUOTED RETURN. 4 EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND II as of March 31, 2004 INVESTMENT UPDATE [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT UPDATE - - The California economy saw stagnant job growth in 2003, as the manufacturing, government, information and entertainment sectors struggled. Construction, financial services, leisure, tourism and selected service sectors led the way in job creation. The state's March 2004 jobless rate was 6.5%, down from 6.8% a year ago. - - Against the backdrop of a slow-to-recover state economy, insured* general obligation bonds were the Fund's largest sector weightings at March 31, 2004. In a slow economy, insured* bonds provided an extra measure of security against the possibility of declining municipal or state revenues. - - Insured* lease revenue/certificates of participation (COPs) were large investments for the Fund. Through COPs, communities are able to finance their needs in a flexible and cost-effective manner. - - Insured* special assessment revenue bonds provided an attractive income stream. These issues provide California communities flexibility in financing a wide variety of public initiatives and infrastructure-related projects. - - With continued low interest rates, management continued to emphasize coupon structure and call features, as market conditions dictated. Coupon structure and call features can have a significant influence on the Fund's performance. FUND STATISTICS(1) - - Number of Issues: 42 - - Effective Maturity: 8.7 years - - Average Rating: AAA - - Average Call: 8.2 years - - Average Dollar Price: $98.12
THE FUND PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 12.37% for the six months ended March 31, 2004. That return was the result of an increase in share price to $14.96 on March 31, 2004 from $13.80 on September 30, 2003, and the reinvestment of $0.474 in regular monthly dividends and $0.060 in capital gain distributions.(3) - - Based on net asset value, the Fund had a total return of 6.86% for the six months ended March 31, 2004. That return was the result of an increase in net asset value to $15.01 on March 31, 2004 from $14.56 on September 30, 2003, and the reinvestment of all distributions.(3) - - Based on the most recent dividend and a share price of $14.96, the Fund had a market yield of 6.34% at March 31, 2004.(4) The Fund's market yield is equivalent to a taxable yield of 10.75%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments BBB 1.9% A 1.7% AA 2.8% AAA 93.6%
FUND INFORMATION AS OF MARCH 31, 2004 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One year 14.76% Life of Fund (11/29/02) 9.95
Average Annual Total Returns (by net asset value) One year 9.86% Life of Fund (11/29/02) 10.23
(1) FUND STATISTICS AND RATING DISTRIBUTION 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 AND STATE INCOME 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% 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. PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM THE FUND'S ISSUANCE OF AUCTION PREFERRED SHARES. * 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. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN QUOTED RETURN. 5 EATON VANCE INSURED FLORIDA MUNICIPAL BOND FUND as of March 31, 2004 INVESTMENT UPDATE [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT UPDATE - - While Florida's economy registered only modest job growth in late 2003 and early 2004, it nonetheless managed to outpace the nation as a whole. The state's key tourism sector and its construction sector - fueled by a surging housing market - have been the primary drivers of job growth. The state's jobless rate was 4.8% in March 2004, down from 5.3% a year ago. - - Insured* special tax revenue bonds were the Fund's largest sector weighting at March 31, 2004. These bonds are secured by the levy of special assessments by local governments, and helped defray costs on improvements or infrastructures that benefited local property owners. - - Management also found opportunities in non-sector-specific bonds. These insured* miscellaneous bonds included issues for a variety of tourism, housing, transportation and entertainment-related projects for communities throughout Florida. - - The Fund remained selective within the hospital sector. With the industry facing the pressure of strict Medicare reimbursement, the Fund focused on insured* issues of institutions management believes have superior management and a solid market share. - - Management emphasized diversification by issuer, sector and coupon. Selected insured* Puerto Rico bonds added further flexibility in this regard and included general obligations, electric utilities, lease revenue, transportation and special tax revenue bonds. FUND STATISTICS(1) - - Number of Issues: 44 - - Effective Maturity: 10.7 years - - Average Rating: AAA - - Average Call: 10.0 years - - Average Dollar Price: $102.08
THE FUND PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 11.20% for the six months ended March 31, 2004. That return was the result of an increase in share price to $15.11 on March 31, 2004 from $14.10 on September 30, 2003, and the reinvestment of $0.465 in regular monthly dividends and $0.080 in capital gain distributions.(3) - - Based on net asset value, the Fund had a total return of 6.83% for the six months ended March 31, 2004. That return was the result of an increase in net asset value to $14.98 on March 31, 2004 from $14.55 on September 30, 2003, and the reinvestment of all distributions.(3) - - Based on the most recent dividend and a share price of $15.11, the Fund had a market yield of 6.15% at March 31, 2004.(4) The Fund's market yield is equivalent to a taxable yield of 9.46%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments A 1.8% AA 5.2% AAA 93.0%
FUND INFORMATION AS OF MARCH 31, 2004 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One year 10.37% Life of Fund (11/29/02) 10.72
Average Annual Total Returns (by net asset value) One year 9.50% Life of Fund (11/29/02) 10.01
(1) FUND STATISTICS AND RATING DISTRIBUTION 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 AND 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 INCOME 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. PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM THE FUND'S ISSUANCE OF AUCTION PREFERRED SHARES. * 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. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN QUOTED RETURN. 6 EATON VANCE INSURED MASSACHUSETTS MUNICIPAL BOND FUND as of March 31, 2004 INVESTMENT UPDATE [PHOTO OF ROBERT B. MACINTOSH] Robert B. MacIntosh Portfolio Manager MANAGEMENT UPDATE - - The Massachusetts economy has bounced back somewhat from the severe job declines suffered following the 2001 recession. However, employment in the technology and finance sectors, which drove the Commonwealth's economy in the previous decade, remained well below its pre-recession peak. The state's March 2004 jobless rate was 5.1%, down from 5.9% a year ago. - - Insured* private education bonds remained the Fund's largest weighting at March 31, 2004. Management was able to take advantage of fairly active new issuance of education issues. The Fund's investments included some of the Commonwealth's most renowned colleges and universities. - - Insured* general obligation bonds (GOs) were a significant investment. With some communities facing revenue shortfalls, the risk of downgrades has risen commensurately. Insured* GOs represented high quality and a partial refuge from those pressures. - - Insured* lease revenue/certificates of participation remained large investments for the Fund. These agreements provide combined financing for communities, affording them a flexible and cost-effective funding source for joint borrowers. - - The Fund took advantage of strong retail demand as an opportunity to sell premium coupon bonds in favor of current coupon issues. Management continued to emphasize diversification according to issuer, sector and insurer. FUND STATISTICS(1) - - Number of Issues: 34 - - Effective Maturity: 9.8 years - - Average Rating: AAA - - Average Call: 9.5 years - - Average Dollar Price: $101.14
THE FUND PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 16.24% for the six months ended March 31, 2004. That return was the result of an increase in share price to $16.03 on March 31, 2004 from $14.45 on September 30, 2003, and the reinvestment of $0.474 in regular monthly dividends and $0.225 in capital gain distributions.(3) - - Based on net asset value, the Fund had a total return of 6.56% for the six months ended March 31, 2004. That return was the result of an increase in net asset value to $14.92 on March 31, 2004 from $14.67 on September 30, 2003, and the reinvestment of all distributions.(3) - - Based on the most recent dividend and a share price of $16.03, the Fund had a market yield of 5.91% at March 31, 2004.(4) The Fund's market yield is equivalent to a taxable yield of 9.60%.(5) [CHART] RATING DISTRIBUTION(1) By total investments BBB 2.7% A 1.9% AA 7.7% AAA 87.7%
FUND INFORMATION AS OF MARCH 31, 2004 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One year 13.92% Life of Fund (11/29/02) 16.53
Average Annual Total Returns (by net asset value) One year 10.23% Life of Fund (11/29/02) 10.46
(1) FUND STATISTICS AND RATING DISTRIBUTION 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 AND STATE INCOME 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 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. PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM THE FUND'S ISSUANCE OF AUCTION PREFERRED SHARES. * 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. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN QUOTED RETURN. 7 EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND as of March 31, 2004 INVESTMENT UPDATE [PHOTO OF WILLIAM H. AHERN] William H. Ahern Portfolio Manager MANAGEMENT UPDATE - - The Michigan economy continued to see signs of weakness in early 2004, as manufacturing remained in a slump. Major automakers reported that automobile production levels in early 2004 were below those of 2003. The construction sector was mixed, with residential much stronger than the commercial segment. The state's March 2004 jobless rate was 6.9%, down from 7.0% a year ago. - - Insured* general obligation bonds (GOs) were the Fund's largest sector weighting at March 31, 2004. The Fund's holdings were represented by larger urban issuers and small towns alike, and included issues for school districts and building authorities. - - As elsewhere in the nation, the Michigan hospital industry remains under the pressure of strict Medicare reimbursement. Hospital issues constituted a significant investment, with the focus on hospital finance authority issues that funded the acquisition, construction and improvement of well-situated acute care facilities. - - The Fund took advantage of opportunities in insured* special tax revenue bonds. The Fund's investments included projects for building development programs, as well as an issue supporting hotel construction at Detroit's Metropolitan Airport. - - Amid continued low interest rates, management continued to adjust coupon structure and monitor call characteristics. Coupons and call features can impact the Fund's performance as interest rates change. FUND STATISTICS(1) - - Number of Issues: 33 - - Effective Maturity: 9.9 years - - Average Rating: AAA - - Average Call: 9.4 years - - Average Dollar Price: $96.74
THE FUND PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 17.06% for the six months ended March 31, 2004. That return was the result of an increase in share price to $16.35 on March 31, 2004 from $14.41 on September 30, 2003, and the reinvestment of $0.474 in regular monthly dividends.(3) - - Based on net asset value, the Fund had a total return of 6.16% for the six months ended March 31, 2004. That return was the result of an increase in net asset value to $14.94 on March 31, 2004 from $14.52 on September 30, 2003, and the reinvestment of all distributions.(3) - - Based on the most recent dividend and a share price of $16.35, the Fund had a market yield of 5.80% at March 31, 2004.(4) The Fund's market yield is equivalent to a taxable yield of 9.29%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments A 13.7% AA 4.4% AAA 81.9%
FUND INFORMATION AS OF MARCH 31, 2004 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One year 15.32% Life of Fund (11/29/02) 16.91
Average Annual Total Returns (by net asset value) One year 8.62% Life of Fund (11/29/02) 9.30
(1) FUND STATISTICS AND RATING DISTRIBUTION 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 AND STATE INCOME 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 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. PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM THE FUND'S ISSUANCE OF AUCTION PREFERRED SHARES. * 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. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN QUOTED RETURN. 8 EATON VANCE INSURED NEW JERSEY MUNICIPAL BOND FUND as of March 31, 2004 INVESTMENT UPDATE [PHOTO OF ROBERT B. MACINTOSH] Robert B. MacIntosh Portfolio Manager MANAGEMENT UPDATE - - New Jersey's economy continued to produce jobs faster than the nation as a whole. Among the state's stronger sectors were education, health care, retail, government, and professional and business services, while information, utilities and transportation lagged. The state's March 2004 jobless rate was 5.2%, down from 6.1% a year ago. - - Insured* public education bonds were the Fund's largest sector weighting at March 31, 2004. The Fund's investments included an issue for the state's University of Medicine and Dentistry, which trains students for careers in internal and osteopathic medicine, dentistry and a range of allied health professions. - - Insured* general obligation bonds (GOs) were in ample supply. The Fund's investments represented a geographical mix consisting of urban areas and smaller communities, with a main focus on board of education bonds. - - The Fund identified some opportunities in insured* transportation bonds. The Fund's investments included issues for the massive Port Authority in the metropolitan New York area, as well as transportation authorities in the southern portion of the state. - - The Fund took advantage of strong retail demand as an opportunity to sell premium coupon bonds in favor of current coupon issues. Management continued to emphasize diversification according to issuer, sector and insurer. FUND STATISTICS(1) - - Number of Issues: 39 - - Effective Maturity: 11.8 years - - Average Rating: AAA - - Average Call: 10.9 years - - Average Dollar Price: $94.61
THE FUND PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 14.64% for the six months ended March 31, 2004. That return was the result of an increase in share price to $15.91 on March 31, 2004 from $14.52 on September 30, 2003, and the reinvestment of $0.480 in regular monthly dividends and $0.206 in capital gain distributions.(3) - - Based on net asset value, the Fund had a total return of 8.24% for the six months ended March 31, 2004. That return was the result of an increase in net asset value to $15.27 on March 31, 2004 from $14.76 on September 30, 2003, and the reinvestment of all distributions.(3) - - Based on the most recent dividend and a share price of $15.91, the Fund had a market yield of 6.03% at March 31, 2004.(4) The Fund's market yield is equivalent to a taxable yield of 9.91%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments BBB 2.0% A 6.9% AA 6.4% AAA 84.7%
FUND INFORMATION AS OF MARCH 31, 2004 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One year 19.19% Life of Fund (11/29/02) 15.77
Average Annual Total Returns (by net asset value) One year 11.23% Life of Fund (11/29/02) 12.28
(1) FUND STATISTICS AND RATING DISTRIBUTION 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 AND STATE INCOME 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 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. PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM THE FUND'S ISSUANCE OF AUCTION PREFERRED SHARES. * 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. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN QUOTED RETURN. 9 EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND II as of March 31, 2004 INVESTMENT UPDATE [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT UPDATE - - The New York economy improved in 2003 and early 2004, although job creation was sporadic. The pace of hiring in the key financial services and manufacturing sectors remained central to the still-evolving recovery of the New York economy. The state's March 2004 jobless rate was 6.5%, up slightly from 6.3% a year ago. - - Insured* transportation bonds, which are among New York's largest issuers, remained the Fund's largest sector weighting at March 31, 2004. The Fund's investments included issues for rapid transit, port authorities, bridges and tunnels and highway projects. - - Insured* private education bonds remained a significant focus of the Fund. The Fund's investments focused on Dormitory Authority bonds that financed facilities for some of the state's most renowned universities. - - Insured* lease revenue/certificates of participation bonds were large holdings. Providing lease financing for various municipal projects, these issues afford economies of scale and low fixed-rate interest costs, an attractive feature for municipal borrowers. - - Management continued to adjust the Fund's coupon structure. Selected Puerto Rico bonds gave the Fund additional flexibility in this respect, as well as further diversification through insured* general obligations, lease revenue and transportation bonds. FUND STATISTICS(1) - - Number of Issues: 38 - - Effective Maturity: 9.4 years - - Average Rating: AA+ - - Average Call: 9.1 years - - Average Dollar Price: $98.85
THE FUND PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 16.75% for the six months ended March 31, 2004. That return was the result of an increase in share price to $15.27 on March 31, 2004 from $13.71 on September 30, 2003, and the reinvestment of $0.482 in regular monthly dividends and $0.221 in capital gain distributions.(3) - - Based on net asset value, the Fund had a total return of 6.30% for the six months ended March 31, 2004. That return was the result of an increase in net asset value to $15.08 on March 31, 2004 from $14.87 on September 30, 2003, and the reinvestment of all distributions.(3) - - Based on the most recent dividend and a share price of $15.27, the Fund had a market yield of 6.31% at March 31, 2004.(4) The Fund's market yield is equivalent to a taxable yield of 10.52%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments Non-Rated 1.8% BBB 3.0% A 4.7% AA 7.0% AAA 83.5%
FUND INFORMATION as of March 31, 2004 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One year 14.13% Life of Fund (11/29/02) 12.57
Average Annual Total Returns (by net asset value) One year 11.25% Life of Fund (11/29/02) 11.52
(1) FUND STATISTICS AND RATING DISTRIBUTION 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 AND STATE INCOME 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 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. PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM THE FUND'S ISSUANCE OF AUCTION PREFERRED SHARES. * 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. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN QUOTED RETURN. 10 EATON VANCE INSURED OHIO MUNICIPAL BOND FUND as of March 31, 2004 INVESTMENT UPDATE [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT UPDATE - - Ohio's economy continued to shed jobs in the manufacturing sector, which accounts for 16% of the state's workforce, with especially severe losses in the steel and auto areas. Meanwhile, education, health care and financial services continued to generate some job momentum. The state's March 2004 jobless rate was 5.7%, down from 6.3% a year ago. - - Insured* general obligation bonds (GOs) were the Fund's largest sector weighting at March 31, 2004. Insured* school district GOs have been valued by investors in an uncertain economy that has continued to pressure industrial and economically sensitive issuers. - - Insured* public education bonds constituted another major investment. The Fund's investments included some of the prominent institutions within the state university system, including those offering advanced degree, technical and vocational programs. - - Insured* transportation bonds remained a significant investment for the Fund. The Fund's largest holding was an issue for Cleveland Airport, which has undertaken a $1.4 billion expansion program that will address the demands of traffic growth and contribute to the midwest region's economy. - - Puerto Rico bonds played a role in management's efforts to maintain a broad diversification. The Fund's insured* Puerto Rico holdings included lease revenue, special tax revenue and transportation bonds. FUND STATISTICS(1) - - Number of Issues: 37 - - Effective Maturity: 10.2 years - - Average Rating: AA+ - - Average Call: 10.0 years - - Average Dollar Price: $96.08
THE FUND PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 12.88% for the six months ended March 31, 2004. That return was the result of an increase in share price to $15.76 on March 31, 2004 from $14.43 on September 30, 2003, and the reinvestment of $0.465 in regular monthly dividends and $0.033 in capital gain distributions.(3) - - Based on net asset value, the Fund had a total return of 3.57% for the six months ended March 31, 2004. That return was the result of an increase in net asset value to $14.65 on March 31, 2004 from $14.62 on September 30, 2003, and the reinvestment of all distributions.(3) - - Based on the most recent dividend and a share price of $15.76, the Fund had a market yield of 5.90% at March 31, 2004.(4) The Fund's market yield is equivalent to a taxable yield of 9.81%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments Non-Rated 3.3% A 3.5% AA 11.5% AAA 81.7%
FUND INFORMATION AS OF MARCH 31, 2004 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One year 11.09% Life of Fund (11/29/02) 13.89
Average Annual Total Returns (by net asset value) One year 7.09% Life of Fund (11/29/02) 7.85
(1) FUND STATISTICS AND RATING DISTRIBUTION 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 AND STATE INCOME 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 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. PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM THE FUND'S ISSUANCE OF AUCTION PREFERRED SHARES. * 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. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN QUOTED RETURN. 11 EATON VANCE INSURED PENNSYLVANIA MUNICIPAL BOND FUND as of March 31, 2004 INVESTMENT UPDATE [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT UPDATE - - Pennsylvania's recovery from recession has been hindered by continued weakness in its manufacturing sector, especially in the western part of the state, which offset service sector gains elsewhere. Sectors showing strength included education, health care, information and government. The state's March 2004 jobless rate was 5.3%, down from 5.8% a year ago. - - Insured* general obligation bonds (GOs) were the Fund's largest sector weighting at March 31, 2004. With the weak recovery, many Pennsylvania communities, cities and towns have faced revenue shortfalls. Insured* GOs represented high quality and a partial refuge from those revenue pressures. - - Insured* transportation bonds played a major role in the fund. Investments included turnpike authority bonds, some of which were used to finance maintenance and construction of highways. - - Insured* private education bonds were significant investments for the Fund. The Fund found investment opportunities in issues for schools at the university, college preparatory and vocational levels. - - In an uncertain economy, essential services bonds stand out for their stable revenues. The Fund had investments in a variety of insured* water and sewer bonds, including issues for Erie and major urban centers Pittsburgh and Philadelphia. FUND STATISTICS(1) - - Number of Issues: 49 - - Effective Maturity: 8.5 years - - Average Rating: AAA - - Average Call: 8.1 years - - Average Dollar Price: $100.58
THE FUND PERFORMANCE FOR THE PAST SIX MONTHS - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 16.69% for the six months ended March 31, 2004. That return was the result of an increase in share price to $16.06 on March 31, 2004 from $14.33 on September 30, 2003, and the reinvestment of $0.469 in regular monthly dividends and $0.140 in capital gain distributions.(3) - - Based on net asset value, the Fund had a total return of 6.55% for the six months ended March 31, 2004. That return was the result of an increase in net asset value to $14.92 on March 31, 2004 from $14.58 on September 30, 2003, and the reinvestment of all distributions.(3) - - Based on the most recent dividend and a share price of $16.06, the Fund had a market yield of 5.84% at March 31, 2004.(4) The Fund's market yield is equivalent to a taxable yield of 9.27%.(5) [CHART] RATING DISTRIBUTION(1),(2) By total investments BBB 0.5% A 7.2% AAA 92.3%
FUND INFORMATION AS OF MARCH 31, 2004 PERFORMANCE(6) Average Annual Total Returns (by share price, American Stock Exchange) One year 13.26% Life of Fund (11/29/02) 16.21
Average Annual Total Returns (by net asset value) One year 9.91% Life of Fund (11/29/02) 10.00
(1) FUND STATISTICS AND RATING DISTRIBUTION 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 AND STATE INCOME 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 37.00% 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. PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM THE FUND'S ISSUANCE OF AUCTION PREFERRED SHARES. * 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. PERFORMANCE IS FOR THE STATED TIME PERIOD ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN QUOTED RETURN. 12 INSURED MUNICIPAL BOND FUND II as of March 31, 2004 PORTFOLIO OF INVESTMENTS (Unaudited) TAX-EXEMPT INVESTMENTS -- 158.7%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 9.7% $ 5,750 California, 5.25%, 4/1/30 $ 5,876,155 2,215 California, 5.50%, 11/1/33 2,321,608 5,000 New York City, NY, 5.25%, 1/15/33 5,245,350 1,500 North Carolina, Variable Rate, 3/1/28(1)(2) 800,100 - ----------------------------------------------------------------------------------------------- $ 14,243,213 - ----------------------------------------------------------------------------------------------- HOSPITAL -- 6.2% $ 750 Cuyahoga County, OH, (Cleveland Clinic Health System), 5.50%, 1/1/29 $ 785,078 1,000 Hawaii Pacific Health, 5.60%, 7/1/33 1,017,600 1,000 Highlands County, FL, Health Facilities Authority, (Adventist Health System), 5.375%, 11/15/35 1,031,390 1,500 Lehigh County, PA, General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32 1,543,560 4,500 South Miami, FL, Health Facility Authority, (Baptist Health), 5.25%, 11/15/33 4,616,370 - ----------------------------------------------------------------------------------------------- $ 8,993,998 - ----------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 8.3% $ 22,685 Chelan County, WA, Public Utility District No. 1, (Columbia River), (MBIA), 0.00%, 6/1/23 $ 8,480,560 2,000 Forsyth, MT, PCR, (Puget Sound Energy), (AMBAC), 5.00%, 3/1/31 2,091,440 1,500 Municipal Energy Agency, NE, (Power Supply System), (FSA), 5.00%, 4/1/36 1,558,725 - ----------------------------------------------------------------------------------------------- $ 12,130,725 - ----------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 23.8% $ 1,600 Alvin, TX, Independent School District, (MBIA), 3.25%, 2/15/27 $ 1,275,376 1,640 California, (XLCA), Variable Rate, 10/1/28(2)(3) 1,806,886 10,000 Chicago, IL, Board of Education, (FGIC), 0.00%, 12/1/23 3,740,600 5,700 Chicago, IL, Board of Education, (FSA), 5.00%, 12/1/31 5,877,156 8,330 King County, WA, (MBIA), 5.25%, 1/1/34 8,695,687 5,000 Massachusetts, (AMBAC), 5.50%, 8/1/30 5,779,300 2,080 Philadelphia, PA, (FSA), Variable Rate, 9/15/31(2)(3) 2,285,150 2,000 Phoenix, AZ, (AMBAC), 3.00%, 7/1/28 1,527,380 10,000 Washington, (Motor Vehicle Fuel), (MBIA), 0.00%, 12/1/23 3,719,200 - ----------------------------------------------------------------------------------------------- $ 34,706,735 - ----------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 2.7% $ 3,000 Maryland HEFA, (Medlantic/Helix Issue), (FSA), Variable Rate, 8/15/38(2)(3) $ 3,929,880 - ----------------------------------------------------------------------------------------------- $ 3,929,880 - ----------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 3.0% $ 4,250 Massachusetts Development Finance Agency, (MBIA), 5.125%, 2/1/34 $ 4,422,040 - ----------------------------------------------------------------------------------------------- $ 4,422,040 - ----------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 3.8% $ 2,500 Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59 $ 2,950,200 2,500 Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33 2,618,250 - ----------------------------------------------------------------------------------------------- $ 5,568,450 - ----------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 3.8% $ 5,335 University of California, (AMBAC), 5.00%, 9/1/27 $ 5,525,833 - ----------------------------------------------------------------------------------------------- $ 5,525,833 - ----------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 1.8% $ 2,575 Tacoma, WA, Sewer Revenue, (FGIC), 5.00%, 12/1/31 $ 2,656,705 - ----------------------------------------------------------------------------------------------- $ 2,656,705 - ----------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 10.8% $ 11,000 Metropolitan Pier and Exposition Authority, (McCormick Place Expansion), IL, (MBIA), 0.00%, 12/15/25 $ 3,668,280 4,000 Metropolitan Pier and Exposition Authority, (McCormick Place Expansion), IL, (MBIA), 5.25%, 6/15/42 4,219,160 2,165 San Jose, CA, Redevelopment Agency Tax, (MBIA), Variable Rate, 8/1/32(2)(3) 2,369,246 5,325 Utah Transportation Authority Sales Tax, (FSA), 5.00%, 6/15/32 5,522,451 - ----------------------------------------------------------------------------------------------- $ 15,779,137 - ----------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 35.0% $ 4,000 Chicago, IL, Transportation, (Skywalk), (AMBAC), 5.25%, 1/1/31 $ 4,206,200 1,250 Dallas, TX, Area Rapid Transportation Sales Tax, (AMBAC), 5.00%, 12/1/31 1,289,663
See notes to financial statements 13
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION (CONTINUED) $ 11,900 E-470 Public Highway Authority, CO, (MBIA), 0.00%, 9/1/22 $ 4,766,664 12,390 E-470 Public Highway Authority, CO, (MBIA), 0.00%, 9/1/24 4,380,485 3,835 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), Variable Rate, 1/1/37(2)(3) 4,013,826 13,885 Nevada Department of Business and Industry, (Las Vegas Monorail-1st Tier), (AMBAC), 0.00%, 1/1/20 6,457,775 5,000 South Carolina Transportation Infrastructure, (AMBAC), 5.25%, 10/1/31 5,270,650 10,000 Texas Turnpike Authority, (AMBAC), 5.00%, 8/15/42 10,264,300 10,000 Triborough Bridge and Tunnel Authority, NY, (MBIA), 5.00%, 11/15/32 10,408,000 - ----------------------------------------------------------------------------------------------- $ 51,057,563 - ----------------------------------------------------------------------------------------------- INSURED-UTILITIES -- 9.9% $ 6,500 Los Angeles, CA, Department of Water and Power, (FGIC), 5.00%, 7/1/43 $ 6,672,770 1,500 Los Angeles, CA, Department of Water and Power, (MBIA), 5.125%, 7/1/41 1,551,150 6,000 Philadelphia, PA, Gas Works Revenue, (FSA), 5.00%, 8/1/32 6,249,000 - ----------------------------------------------------------------------------------------------- $ 14,472,920 - ----------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 22.0% $ 3,240 Atlanta, GA, Water and Sewer, (FGIC), 5.00%, 11/1/38(4) $ 3,338,204 4,895 Atlanta, GA, Water and Wastewater, (MBIA), 5.00%, 11/1/39 5,056,780 10,705 Birmingham, AL, Waterworks and Sewer Board, (MBIA), 5.00%, 1/1/37 11,068,328 10,750 Houston, TX, Water & Sewer System, (FSA), 5.00%, 12/1/30 11,135,495 1,275 Pittsburgh, PA, Water and Sewer Authority, (AMBAC), Variable Rate, 12/1/27(2)(3) 1,467,053 - ----------------------------------------------------------------------------------------------- $ 32,065,860 - ----------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 10.2% $ 2,330 Contra Costa, CA, Water District, (FSA), Variable Rate, 10/1/32(2)(3) $ 2,608,668 3,450 Detroit, MI, Water Supply System, (MBIA), Variable Rate, 7/1/34(2)(3) 3,867,588 3,500 Metropolitan Water District, CA, (FGIC), 5.00%, 10/1/36 3,649,205 4,610 Texas Southmost Regional Water Authority, (MBIA), 5.00%, 9/1/32 4,765,910 - ----------------------------------------------------------------------------------------------- $ 14,891,371 - ----------------------------------------------------------------------------------------------- OTHER REVENUE -- 1.6% $ 1,500 Capital Trust Agency, FL, (Seminole Tribe Convention), 8.95%, 10/1/33 $ 1,764,270 430 Capital Trust Agency, FL, (Seminole Tribe Convention), 10.00%, 10/1/33 534,352 - ----------------------------------------------------------------------------------------------- $ 2,298,622 - ----------------------------------------------------------------------------------------------- TRANSPORTATION -- 6.1% $ 8,500 Metropolitan Transportation Authority of New York, 5.125%, 1/1/29 $ 8,853,260 - ----------------------------------------------------------------------------------------------- $ 8,853,260 - ----------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 158.7% (IDENTIFIED COST $221,850,294) $ 231,596,312 - ----------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 1.3% $ 1,847,410 - ----------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (60.0)% $ (87,539,392) - ----------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 145,904,330 - -----------------------------------------------------------------------------------------------
AMBAC - AMBAC Financial Group, Inc. FGIC - Financial Guaranty Insurance Company FSA - Financial Security Assurance, 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 March 31, 2004, 85.2% 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 an individual financial institution ranged from 3.2% to 37.4% 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 March 31, 2004 PORTFOLIO OF INVESTMENTS (Unaudited) TAX-EXEMPT INVESTMENTS -- 155.7%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 5.6% $ 750 California, 5.00%, 2/1/21 $ 767,430 900 California, 5.25%, 4/1/30 919,746 1,465 California, 5.50%, 11/1/33 1,535,510 - ----------------------------------------------------------------------------------------------- $ 3,222,686 - ----------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 10.4% $ 3,475 Glendale Electric, (MBIA), 5.00%, 2/1/32 $ 3,603,888 1,650 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(1)(2) 1,884,630 455 Sacramento Municipal Electric Utility District, (FSA), Variable Rate, 8/15/28(2)(3) 503,553 - ----------------------------------------------------------------------------------------------- $ 5,992,071 - ----------------------------------------------------------------------------------------------- INSURED-ESCROWED/PREREFUNDED -- 5.1% $ 800 Metropolitan Water District, (Southern California Waterworks), (MBIA), Prerefunded to 1/1/07, Variable Rate, 7/1/27(2)(3) $ 1,016,576 1,750 Metropolitan Water District, (Southern California Waterworks), (MBIA), Prerefunded to 1/1/08, 5.00%, 7/1/30 1,962,047 - ----------------------------------------------------------------------------------------------- $ 2,978,623 - ----------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 31.3% $ 1,250 California, (AMBAC), 5.00%, 4/1/27 $ 1,291,175 415 California, (XLCA), Variable Rate, 10/1/28(2)(3) 457,230 5,000 Clovis Unified School District, (FGIC), 0.00%, 8/1/20 2,276,700 2,000 Laguna Salada Union School District, (FGIC), 0.00%, 8/1/22 805,160 2,350 Long Beach Unified School District, (Election of 1999), (FSA), 5.00%, 8/1/31 2,433,707 1,710 Los Angeles Unified School District, (FGIC), 5.375%, 7/1/25 1,839,567 1,945 Los Osos Community Services, Wastewater Assessment District, (MBIA), 5.00%, 9/2/33 2,025,153 1,000 Mount Diablo Unified School District, (FSA), 5.00%, 8/1/25 1,045,330 4,300 San Mateo County Community College District, (Election of 2001), (FGIC), 0.00%, 9/1/21 1,836,444 1,750 Santa Ana Unified School District, (MBIA), 5.00%, 8/1/32 1,818,652 3,200 Union Elementary School District, (FGIC), 0.00%, 9/1/22 1,284,320 $ 2,600 Union Elementary School District, (FGIC), 0.00%, 9/1/23 $ 980,148 - ----------------------------------------------------------------------------------------------- $ 18,093,586 - ----------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 20.7% $ 4,000 Anaheim, Public Financing Authority Lease Revenue, (FSA), 5.00%, 3/1/37 $ 4,092,920 4,250 California Public Works Board Lease Revenue, (Department of General Services), (AMBAC), 5.00%, 12/1/27(4) 4,408,568 2,250 Orange County Water District Certificates of Participation, (MBIA), 5.00%, 8/15/34 2,334,960 1,075 San Jose Financing Authority, (Civic Center), (AMBAC), 5.00%, 6/1/32 1,112,152 - ----------------------------------------------------------------------------------------------- $ 11,948,600 - ----------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 14.0% $ 4,000 California University, (AMBAC), 5.00%, 11/1/33 $ 4,153,920 3,790 University of California, (FGIC), 5.125%, 9/1/31 3,965,288 - ----------------------------------------------------------------------------------------------- $ 8,119,208 - ----------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 16.3% $ 5,700 East Bay Municipal Utility District Water System, (MBIA), 5.00%, 6/1/38 $ 5,856,294 3,425 Los Angeles Wastewater Treatment System, (FGIC), 5.00%, 6/1/28 3,558,541 - ----------------------------------------------------------------------------------------------- $ 9,414,835 - ----------------------------------------------------------------------------------------------- INSURED-SPECIAL ASSESSMENT REVENUE -- 15.7% $ 2,500 Cathedral City Public Financing Authority, (Housing Redevelopment), (MBIA), 5.00%, 8/1/33 $ 2,603,300 2,500 Cathedral City Public Financing Authority, (Tax Allocation Redevelopment), (MBIA), 5.00%, 8/1/33 2,603,300 1,750 Irvine Public Facility and Infrastructure Authority Assessment, (AMBAC), 5.00%, 9/2/26 1,805,335 2,000 Murrieta Redevelopment Agency Tax, (MBIA), 5.00%, 8/1/32 2,083,300 - ----------------------------------------------------------------------------------------------- $ 9,095,235 - ----------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 9.3% $ 3,750 San Francisco Bay Area Rapid Transportation District, (AMBAC), 5.125%, 7/1/36 $ 3,892,200 1,335 San Jose Redevelopment Agency Tax, (MBIA), Variable Rate, 8/1/32(2)(3) 1,460,944 - ----------------------------------------------------------------------------------------------- $ 5,353,144 - -----------------------------------------------------------------------------------------------
See notes to financial statements 15
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 15.7% $ 4,000 California Infrastructure and Economic Development, (Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/36 $ 4,166,600 2,250 Los Angeles County Metropolitan Transportation Authority, (FGIC), 5.25%, 7/1/30 2,378,610 500 San Francisco City and County Airports Commission International, (FGIC), 5.00%, 5/1/29 513,290 6,670 San Joaquin Hills Transportation Corridor Agency, (MBIA), 0.00%, 1/15/27 2,036,218 - ----------------------------------------------------------------------------------------------- $ 9,094,718 - ----------------------------------------------------------------------------------------------- INSURED-UTILITIES -- 5.6% $ 1,400 Los Angeles Department of Water and Power, (FGIC), 5.00%, 7/1/38 $ 1,443,316 1,750 Los Angeles Department of Water and Power, (FGIC), 5.125%, 7/1/41 1,809,675 - ----------------------------------------------------------------------------------------------- $ 3,252,991 - ----------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 1.6% $ 835 Contra Costa Water District, (FSA), Variable Rate, 10/1/32(2)(3) $ 934,866 - ----------------------------------------------------------------------------------------------- $ 934,866 - ----------------------------------------------------------------------------------------------- WATER REVENUE -- 4.4% $ 2,500 California Water Resource, (Central Valley), 5.00%, 12/1/29 $ 2,562,400 - ----------------------------------------------------------------------------------------------- $ 2,562,400 - ----------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 155.7% (IDENTIFIED COST $86,337,097) $ 90,062,963 - ----------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 2.6% $ 1,521,240 - ----------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (58.3)% $ (33,750,000) - ----------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 57,834,203 - -----------------------------------------------------------------------------------------------
AMBAC - AMBAC Financial Group, Inc. FGIC - Financial Guaranty Insurance Company FSA - Financial Security Assurance, 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 March 31, 2004, 93.6% 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 an individual financial institution ranged from 0.5% to 32.6% 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 March 31, 2004 PORTFOLIO OF INVESTMENTS (Unaudited) TAX-EXEMPT INVESTMENTS -- 155.9%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 5.4% $ 2,000 Jacksonville Electric Authority, (Electric System), 5.25%, 10/1/31 $ 2,069,000 - ----------------------------------------------------------------------------------------------- $ 2,069,000 - ----------------------------------------------------------------------------------------------- HOSPITAL -- 5.5% $ 1,050 Highlands County, Health Facility Authority, (Adventist Health), 5.25%, 11/15/23 $ 1,081,857 1,000 South Miami Health Facility Authority, (Baptist Health), 5.25%, 11/15/33 1,025,860 - ----------------------------------------------------------------------------------------------- $ 2,107,717 - ----------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 1.5% $ 500 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(1)(2) $ 571,100 - ----------------------------------------------------------------------------------------------- $ 571,100 - ----------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 2.9% $ 1,025 Dade County, Professional Sports Franchise Facility, (MBIA), Escrowed to Maturity, 5.25%, 10/1/30 $ 1,133,988 - ----------------------------------------------------------------------------------------------- $ 1,133,988 - ----------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 16.8% $ 1,345 Florida Board of Education Capital Outlay, (Public Education), (MBIA), 5.00%, 6/1/32 $ 1,403,292 2,000 Florida Board of Education Capital Outlay, (Public Education), (MBIA), 5.00%, 6/1/32 2,086,680 1,520 Florida Municipal Loan Council Revenue, (MBIA), 0.00%, 4/1/23 601,525 1,520 Florida Municipal Loan Council Revenue, (MBIA), 0.00%, 4/1/24 565,106 1,700 Puerto Rico, (FSA), 5.125%, 7/1/30 1,795,999 - ----------------------------------------------------------------------------------------------- $ 6,452,602 - ----------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 18.4% $ 1,500 Jacksonville Economic Development Commission, (Mayo Clinic), (MBIA), 5.50%, 11/15/36 $ 1,625,580 1,000 Jacksonville Economic Development Commission, (Mayo Clinic), (MBIA), 5.50%, 11/15/36 1,083,720 1,500 Miami-Dade County, Health Facilities Authority, (Miami Children's Hospital), (AMBAC), 5.125%, 8/15/26 1,568,445 $ 1,510 Sarasota County, Public Hospital Board, (Sarasota Memorial Hospital), (MBIA), 5.25%, 7/1/24(3) $ 1,651,940 1,000 Sarasota County, Public Hospital Board, (Sarasota Memorial Hospital), (MBIA), 5.50%, 7/1/28 1,137,790 - ----------------------------------------------------------------------------------------------- $ 7,067,475 - ----------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 7.7% $ 1,605 Port Palm Beach District, (Improvements), (XLCA), 0.00%, 9/1/24 $ 578,041 1,950 Port Palm Beach District, (Improvements), (XLCA), 0.00%, 9/1/25 662,473 1,700 Port Palm Beach District, (Improvements), (XLCA), 0.00%, 9/1/26 544,374 1,000 Puerto Rico Public Building Authority, (XLCA), 5.50%, 7/1/21 1,164,390 - ----------------------------------------------------------------------------------------------- $ 2,949,278 - ----------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 22.7% $ 1,500 Miami-Dade County, (Professional Sports Franchise), (MBIA), 4.75%, 10/1/30 $ 1,513,770 1,740 Orange County Tourist Development, (AMBAC), 5.125%, 10/1/25 1,832,098 750 Orange County Tourist Development, (AMBAC), Variable Rate, 10/1/30(2)(4) 859,778 1,500 Polk County, Transportation Improvements, (FSA), 5.375%, 12/1/25 1,610,580 2,750 Village Center Community Development District, (MBIA), 5.00%, 11/1/32 2,877,875 - ----------------------------------------------------------------------------------------------- $ 8,694,101 - ----------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 6.8% $ 2,500 Pinellas County, Sewer, (FSA), 5.00%, 10/1/32 $ 2,610,900 - ----------------------------------------------------------------------------------------------- $ 2,610,900 - ----------------------------------------------------------------------------------------------- INSURED-SPECIAL ASSESSMENT REVENUE -- 7.5% $ 2,780 Julington Creek, Plantation Community Development District, (MBIA), 5.00%, 5/1/29 $ 2,892,062 - ----------------------------------------------------------------------------------------------- $ 2,892,062 - ----------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 34.5% $ 1,000 Bay County, Sales Tax, (AMBAC), 5.125%, 9/1/27 $ 1,052,510 1,250 Bay County, Sales Tax, (AMBAC), 5.125%, 9/1/32 1,312,413 1,000 Dade County, Special Obligation Residual Certificates, (AMBAC), Variable Rate, 10/1/35(2)(4) 1,045,840
See notes to financial statements 17
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE (CONTINUED) $ 1,500 Jacksonville Capital Improvements, (AMBAC), 5.00%, 10/1/30 $ 1,561,635 4,000 Jacksonville Transportation, (MBIA), 5.00%, 10/1/31 4,148,040 1,275 Jacksonville, Excise Tax, (FGIC), 5.125%, 10/1/27 1,342,550 225 Miami-Dade County, Special Obligation, (MBIA), 5.00%, 10/1/37 231,131 1,420 Orange County, Sales Tax, (FGIC), 5.125%, 1/1/23 1,512,584 440 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(4) 486,103 1,120 Sunrise Public Facility, (MBIA), 0.00%, 10/1/20 525,011 - ----------------------------------------------------------------------------------------------- $ 13,217,817 - ----------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 7.8% $ 1,500 Florida Turnpike Authority, (Department of Transportation), (FGIC), 4.50%, 7/1/27 $ 1,489,215 330 Puerto Rico Highway and Transportation Authority, (FSA), Variable Rate, 7/1/32(2)(4) 380,097 940 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 7/1/36(2)(4) 1,126,562 - ----------------------------------------------------------------------------------------------- $ 2,995,874 - ----------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 12.6% $ 2,000 Marco Island Utility System, (MBIA), 5.00%, 10/1/27 $ 2,093,620 1,500 Marion County Utility System, (MBIA), 5.00%, 12/1/33 1,567,155 1,000 Sunrise Utility System, (AMBAC), 5.50%, 10/1/18 1,158,440 - ----------------------------------------------------------------------------------------------- $ 4,819,215 - ----------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 5.8% $ 1,640 Tampa Bay Water Utility System, (FGIC), 5.00%, 10/1/31 $ 1,700,696 500 Tampa Bay Water Utility System, (FGIC), Variable Rate, 10/1/27(1)(2) 510,470 - ----------------------------------------------------------------------------------------------- $ 2,211,166 - ----------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 155.9% (IDENTIFIED COST $57,237,651) $ 59,792,295 - ----------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 2.8% $ 1,056,833 - ----------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS --(58.7)% $ (22,501,114) NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 38,348,014
AMBAC - AMBAC Financial Group, Inc. FGIC - Financial Guaranty Insurance Company FSA - Financial Security Assurance, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, 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 March 31, 2004, 93.0% 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 an individual financial institution ranged from 4.9% to 47.3% 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 March 31, 2004 PORTFOLIO OF INVESTMENTS (Unaudited) TAX-EXEMPT INVESTMENTS -- 157.5%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- HOSPITAL -- 6.2% $ 1,500 Massachusetts HEFA, (Partners Healthcare System), 5.75%, 7/1/32 $ 1,618,395 - ----------------------------------------------------------------------------------------------- $ 1,618,395 - ----------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 4.1% $ 1,000 Puerto Rico Electric Power Authority, (FSA), 5.125%, 7/1/26 $ 1,072,450 - ----------------------------------------------------------------------------------------------- $ 1,072,450 - ----------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 3.8% $ 3,000 Massachusetts College Building Authority, (MBIA), Escrowed to Maturity, 0.00%, 5/1/26 $ 982,320 - ----------------------------------------------------------------------------------------------- $ 982,320 - ----------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 15.7% $ 1,220 Martha's Vineyard, (AMBAC), 5.00%, 5/1/32(1) $ 1,268,898 500 Massachusetts, (MBIA), 5.00%, 8/1/27 520,110 1,020 Maynard, (MBIA), 5.50%, 2/1/22 1,152,651 1,000 Puerto Rico, (FGIC), Variable Rate, 7/1/32(2)(3) 1,151,810 - ----------------------------------------------------------------------------------------------- $ 4,093,469 - ----------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 11.6% $ 1,750 Massachusetts HEFA, (Harvard Pilgrim Health), (FSA), 5.00%, 7/1/28 $ 1,775,463 1,210 Massachusetts HEFA, (New England Medical Center ), (FGIC), 5.00%, 5/15/25 1,250,305 - ----------------------------------------------------------------------------------------------- $ 3,025,768 - ----------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 15.5% $ 1,750 Massachusetts Development Finance Agency, (MBIA), 5.125%, 2/1/34 $ 1,820,840 1,000 Plymouth County Correctional Facility, (AMBAC), 5.00%, 4/1/22 1,038,250 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(2)(3) 1,173,130 - ----------------------------------------------------------------------------------------------- $ 4,032,220 - ----------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 15.7% $ 2,000 Boston Convention Center, (AMBAC), 5.00%, 5/1/27 $ 2,082,060 $ 1,000 Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.375%, 1/1/42 $ 1,066,090 800 Puerto Rico Municipal Finance Agency, (FSA), Variable Rate, 8/1/27(2)(3) 930,072 - ----------------------------------------------------------------------------------------------- $ 4,078,222 - ----------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 32.3% $ 1,000 Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59 $ 1,180,080 2,000 Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33 2,094,600 2,500 Massachusetts HEFA, (Brandeis University), (MBIA), 5.00%, 10/1/26 2,592,875 1,000 Massachusetts IFA, (College of the Holy Cross), (MBIA), 5.00%, 9/1/23 1,032,060 1,500 Massachusetts IFA, (Tufts University), (MBIA), 4.75%, 2/15/28 1,508,145 - ----------------------------------------------------------------------------------------------- $ 8,407,760 - ----------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 11.1% $ 700 Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39 $ 807,121 1,000 Massachusetts HEFA, (University of Massachusetts), (FGIC), 5.125%, 10/1/34 1,047,270 1,000 Massachusetts HEFA, (Worcester State College), (AMBAC), 5.00%, 11/1/32 1,042,470 - ----------------------------------------------------------------------------------------------- $ 2,896,861 - ----------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 11.8% $ 500 Massachusetts Turnpike Authority, (AMBAC), 5.00%, 1/1/39 $ 511,365 5,700 Massachusetts Turnpike Authority, (MBIA), 0.00%, 1/1/28 1,717,182 415 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), Variable Rate, 1/1/37(2)(3) 434,351 335 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 7/1/36(2)(3) 401,487 - ----------------------------------------------------------------------------------------------- $ 3,064,385 - ----------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 9.9% $ 2,500 Massachusetts Water Resource Authority, (FSA), 5.00%, 8/1/32 $ 2,591,025 - ----------------------------------------------------------------------------------------------- $ 2,591,025 - -----------------------------------------------------------------------------------------------
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 $ 508,980 750 Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33 767,220 600 Massachusetts Development Finance Agency, (Western New England College), 6.125%, 12/1/32 618,468 500 Massachusetts HEFA, (Boston College), 5.125%, 6/1/24 527,730 1,000 Massachusetts IFA, (Groton School), 5.00%, 3/1/28 1,026,830 - ----------------------------------------------------------------------------------------------- $ 3,449,228 - ----------------------------------------------------------------------------------------------- SPECIAL TAX REVENUE -- 6.6% $ 1,650 Massachusetts Bay Transportation Authority, Sales Tax, 5.00%, 7/1/32 $ 1,709,681 - ----------------------------------------------------------------------------------------------- $ 1,709,681 - ----------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 157.5% (IDENTIFIED COST $39,456,799) $ 41,021,784 - ----------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 2.0% $ 529,953 - ----------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (59.5)% $ (15,501,860) - ----------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 26,049,877 - -----------------------------------------------------------------------------------------------
AMBAC - AMBAC Financial Group, Inc. CIFG - CDC IXIS Financial Guaranty North America, Inc. FGIC - Financial Guaranty Insurance Company FSA - Financial Security Assurance, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, 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 March 31, 2004, 83.5% 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 an individual financial institution ranged from 2.9% to 29.6% 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 March 31, 2004 PORTFOLIO OF INVESTMENTS (Unaudited) TAX-EXEMPT INVESTMENTS -- 157.2%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 5.8% $ 1,250 Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29 $ 1,306,725 - ----------------------------------------------------------------------------------------------- $ 1,306,725 - ----------------------------------------------------------------------------------------------- HOSPITAL -- 22.7% $ 1,000 Michigan Hospital Finance Authority, (McLaren Obligated Group), 4.50%, 10/15/21 $ 958,380 1,000 Michigan Hospital Finance Authority, (Oakwood Hospital), 5.75%, 4/1/32 1,055,530 1,500 Michigan Hospital Finance Authority, (Sparrow Obligation Group), 5.625%, 11/15/36 1,542,480 1,500 Michigan Hospital Finance Authority, (Trinity Health), 5.375%, 12/1/30 1,567,500 - ----------------------------------------------------------------------------------------------- $ 5,123,890 - ----------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 2.3% $ 500 Michigan Strategic Fund Resource Recovery, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32 $ 522,185 - ----------------------------------------------------------------------------------------------- $ 522,185 - ----------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 4.8% $ 1,000 Michigan Hospital Finance Authority, (St. John Health System), (AMBAC), Escrowed to Maturity, 5.00%, 5/15/28 $ 1,074,640 - ----------------------------------------------------------------------------------------------- $ 1,074,640 - ----------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 40.6% $ 1,000 Avondale School District, (FSA), 5.00%, 5/1/29 $ 1,042,589 1,550 Detroit School District, (School Bond Loan Fund), (FSA), 5.125%, 5/1/31 1,623,222 1,960 Grand Rapids and Kent County Joint Building Authority, (Devos Place), (MBIA), 0.00%, 12/1/27 588,333 4,000 Grand Rapids and Kent County Joint Building Authority, (MBIA), 0.00%, 12/1/30 1,020,160 750 Greenville Public Schools, (MBIA), 5.00%, 5/1/25 778,260 1,000 Melvindle-Northern Allen Park School District, (Building and Site), (FSA), 5.00%, 5/1/28 1,041,670 2,130 Okemos Public School District, (MBIA), 0.00%, 5/1/19 1,069,516 700 Portland Public Schools, (School Bond Loan Fund), (MBIA), 5.00%, 5/1/29 725,662 1,095 Puerto Rico, (FGIC), Variable Rate, 7/1/32(1)(2) 1,261,232 - ----------------------------------------------------------------------------------------------- $ 9,150,644 - ----------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 9.6% $ 500 Michigan Hospital Finance Authority, Mid-Michigan Obligation Group, (AMBAC), 5.00%, 4/15/32 $ 512,930 1,590 Royal Oak Hospital Finance Authority Revenue, (William Beaumont Hospital), (MBIA), 5.25%, 11/15/35 1,647,049 - ----------------------------------------------------------------------------------------------- $ 2,159,979 - ----------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 12.9% $ 1,750 Michigan House of Representatives, (AMBAC), 0.00%, 8/15/22 $ 719,092 2,615 Michigan House of Representatives, (AMBAC), 0.00%, 8/15/23 1,008,370 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(1)(2) 1,173,130 - ----------------------------------------------------------------------------------------------- $ 2,900,592 - ----------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 10.5% $ 1,500 Central Michigan University, (AMBAC), 5.05%, 10/1/32(3) $ 1,569,825 750 Lake Superior University, (AMBAC), 5.125%, 11/15/26 786,683 - ----------------------------------------------------------------------------------------------- $ 2,356,508 - ----------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 5.8% $ 1,250 Detroit Sewer Disposal, (FGIC), 5.125%, 7/1/31 $ 1,303,838 - ----------------------------------------------------------------------------------------------- $ 1,303,838 - ----------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX -- 4.6% $ 1,000 Ypsilanti Community Utilities Authority, (San Sewer System), (FGIC), 5.00%, 5/1/32 $ 1,037,100 - ----------------------------------------------------------------------------------------------- $ 1,037,100 - ----------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 16.1% $ 500 Detroit Downtown Development, (MBIA), 4.75%, 7/1/25 $ 503,310 1,500 Lansing Building Authority, (MBIA), 5.00%, 6/1/29 1,564,320 1,500 Wayne Charter County, (Airport Hotel-Detroit Metropolitan Airport), (MBIA), 5.00%, 12/1/30 1,560,345 - ----------------------------------------------------------------------------------------------- $ 3,627,975 - ----------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 4.6% $ 1,000 Michigan Trunk Line, (FSA), 5.00%, 11/1/25 $ 1,039,930 - ----------------------------------------------------------------------------------------------- $ 1,039,930 - -----------------------------------------------------------------------------------------------
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 $ 1,047,060 510 Lansing Board Water Supply, Steam and Eletctric Utility, (FSA), 5.00%, 7/1/26 533,608 - ----------------------------------------------------------------------------------------------- $ 1,580,668 - ----------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 9.9% $ 1,300 Detroit Water Supply System, (FGIC), 5.00%, 7/1/30 $ 1,345,032 800 Detroit Water Supply System, (MBIA), Variable Rate, 7/1/34(1)(2) 896,832 - ----------------------------------------------------------------------------------------------- $ 2,241,864 - ----------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 157.2% (IDENTIFIED COST $33,818,087) $ 35,426,538 - ----------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 2.7% $ 611,962 - ----------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (59.9)% $ (13,500,336) - ----------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 22,538,164 - -----------------------------------------------------------------------------------------------
AMBAC - AMBAC Financial Group, Inc. CIFG - CDC IXIS Financial Guaranty North America, Inc. FGIC - Financial Guaranty Insurance Company FSA - Financial Security Assurance, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, 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 March 31, 2004, 81.8% 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 an individual financial institution ranged from 1.5% to 29.2% 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 March 31, 2004 PORTFOLIO OF INVESTMENTS (Unaudited) TAX-EXEMPT INVESTMENTS -- 155.9%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- EDUCATION -- 3.3% $ 1,250 New Jersey Educational Facilities Authority, (Stevens Institute of Technology), 5.25%, 7/1/32 $ 1,298,625 - ----------------------------------------------------------------------------------------------- $ 1,298,625 - ----------------------------------------------------------------------------------------------- HOSPITAL -- 1.6% $ 610 New Jersey Health Care Facilities Financing Authority, (Capital Health System), 5.375%, 7/1/33 $ 616,594 - ----------------------------------------------------------------------------------------------- $ 616,594 - ----------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 28.0% $ 2,260 Bayonne, (FSA), 0.00%, 7/1/22 $ 948,409 2,415 Bayonne, (FSA), 0.00%, 7/1/23 955,543 1,500 Bordentown Regional School District Board of Education, (FGIC), 5.00%, 1/15/30(1) 1,574,970 5,500 Irvington Township, (FSA), 0.00%, 7/15/26 1,843,435 1,500 Jersey City, (FSA), 5.25%, 9/1/23 1,627,980 1,550 Puerto Rico, (FGIC), Variable Rate, 7/1/32(2)(3) 1,785,305 1,130 Rutherford Board of Education, (FGIC), 4.75%, 1/15/27 1,154,521 1,000 Washington Township and Mercer County Board of Education, (FGIC), 5.00%, 1/1/27 1,045,320 - ----------------------------------------------------------------------------------------------- $ 10,935,483 - ----------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 11.3% $ 2,750 New Jersey Health Care Facilities, (Englewood Hospital), (MBIA), 5.00%, 8/1/31 $ 2,857,112 1,500 New Jersey Health Care Facilities, (Jersey City Medical Center), (FSA), 5.00%, 8/1/41 1,545,270 - ----------------------------------------------------------------------------------------------- $ 4,402,382 - ----------------------------------------------------------------------------------------------- INSURED-INDUSTRIAL DEVELOPMENT REVENUE -- 8.4% $ 3,170 Lafayette Yard, Community Development Corporation, (Hotel and Conference Center), (FGIC), 5.00%, 4/1/35 $ 3,267,351 - ----------------------------------------------------------------------------------------------- $ 3,267,351 - ----------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 14.0% $ 10,000 Garden State New Jersey Preservation Trust, (FSA), 0.00%, 11/1/28 $ 2,968,500 1,250 Middlesex County, (MBIA), 5.00%, 8/1/31 1,304,062 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(2)(3) 1,173,130 - ----------------------------------------------------------------------------------------------- $ 5,445,692 - ----------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 2.8% $ 950 Puerto Rico Municipal Finance Agency, (FSA), Variable Rate, 8/1/27(2)(3) $ 1,104,460 - ----------------------------------------------------------------------------------------------- $ 1,104,460 - ----------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 5.4% $ 2,000 New Jersey Educational Facilities Authority, (Kean University), (FGIC), 5.00%, 7/1/28 $ 2,100,340 - ----------------------------------------------------------------------------------------------- $ 2,100,340 - ----------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 30.2% $ 1,400 Monmouth, (Brookdale Community College), (AMBAC), 5.00%, 8/1/29 $ 1,450,218 1,000 New Jersey Educational Facilities Authority, (Rowan University), (FGIC), 5.00%, 7/1/27 1,047,060 1,600 New Jersey Educational Facilities Authority, (Rowan University), (FGIC), 5.00%, 7/1/33 1,669,648 1,500 New Jersey Educational Facilities Authority, (Rowan University), (FGIC), 5.125%, 7/1/30 1,589,415 775 Rutgers University, (FGIC), 4.75%, 5/1/27 789,981 500 University of New Jersey Medicine and Dentistry, (AMBAC), 5.00%, 12/1/31 523,045 4,490 University of New Jersey Medicine and Dentistry, (AMBAC), 5.00%, 4/15/32 4,703,365 - ----------------------------------------------------------------------------------------------- $ 11,772,732 - ----------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 6.5% $ 900 Long Branch Sewer Authority, (FGIC), 4.75%, 6/1/23 $ 941,049 2,350 Passaic Valley Sewer Commissioners, (FGIC), 2.50%, 12/1/32 1,591,608 - ----------------------------------------------------------------------------------------------- $ 2,532,657 - ----------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 17.1% $ 4,000 Delaware River and Bay Authority, (MBIA), 5.00%, 1/1/33 $ 4,191,720 1,290 Port Authority of New York and New Jersey, (FSA), Variable Rate, 11/1/27(2)(3) 1,488,957 950 South Jersey Transportation Authority, (AMBAC), 5.00%, 11/1/29 987,991 - ----------------------------------------------------------------------------------------------- $ 6,668,668 - ----------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 4.3% $ 4,500 Middlesex County Improvements Authority Utilities System, (Perth Amboy), (AMBAC), 0.00%, 9/1/24 $ 1,676,520 - ----------------------------------------------------------------------------------------------- $ 1,676,520 - -----------------------------------------------------------------------------------------------
See notes to financial statements 23
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 1.5% $ 600 Bayonne Municipal Utilities Authority, Water and Sewer Revenue, (XLCA), Variable Rate, 4/1/28(2)(3) $ 594,228 - ----------------------------------------------------------------------------------------------- $ 594,228 - ----------------------------------------------------------------------------------------------- LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 4.0% $ 1,500 New Jersey EDA, (School Facilities), 5.00%, 6/15/26 $ 1,566,855 - ----------------------------------------------------------------------------------------------- $ 1,566,855 - ----------------------------------------------------------------------------------------------- OTHER REVENUE -- 2.6% $ 1,000 New Jersey Environmental Infrastructure Trust, 4.75%, 9/1/23 $ 1,025,420 - ----------------------------------------------------------------------------------------------- $ 1,025,420 - ----------------------------------------------------------------------------------------------- SENIOR LIVING / LIFE CARE -- 1.5% $ 600 New Jersey EDA, (Fellowship Village), 5.50%, 1/1/25 $ 599,574 - ----------------------------------------------------------------------------------------------- $ 599,574 - ----------------------------------------------------------------------------------------------- TRANSPORTATION -- 13.4% $ 300 Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/24 $ 311,112 700 Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/28 723,142 2,250 Port Authority of New York and New Jersey, 5.00%, 9/1/38 2,328,143 1,825 South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33 1,875,553 - ----------------------------------------------------------------------------------------------- $ 5,237,950 - ----------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 155.9% (IDENTIFIED COST $57,887,515) $ 60,845,531 - ----------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 1.7% $ 687,581 - ----------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (57.6)% $ (22,501,114) - ----------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 39,031,998 - -----------------------------------------------------------------------------------------------
AMBAC - AMBAC Financial Group, Inc. CIFG - CDC IXIS Financial Guaranty North America, Inc. FGIC - Financial Guaranty Insurance Company FSA - Financial Security Assurance, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, 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 March 31, 2004, 83.0% 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 an individual financial institution ranged from 1.0% to 30.5% 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. See notes to financial statements 24 INSURED NEW YORK MUNICIPAL BOND FUND II as of March 31, 2004 PORTFOLIO OF INVESTMENTS (Unaudited) TAX-EXEMPT INVESTMENTS -- 154.9%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 7.2% $ 2,650 New York, NY, 5.25%, 1/15/28 $ 2,779,055 - ----------------------------------------------------------------------------------------------- $ 2,779,055 - ----------------------------------------------------------------------------------------------- HOSPITAL -- 2.0% $ 750 Suffolk County Industrial Development Agency, (Huntington Hospital), 5.875%, 11/1/32 $ 787,140 - ----------------------------------------------------------------------------------------------- $ 787,140 - ----------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 7.6% $ 6,800 Long Island Power Authority Electric Systems Revenue, (FSA), 0.00%, 6/1/22 $ 2,942,292 - ----------------------------------------------------------------------------------------------- $ 2,942,292 - ----------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 4.4% $ 1,500 New York University Dormitory Authority, (State University), (XLCA), Prerefunded to 7/1/12, 5.00%, 7/1/25 $ 1,695,510 - ----------------------------------------------------------------------------------------------- $ 1,695,510 - ----------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 10.2% $ 500 Puerto Rico, (FGIC), Variable Rate, 7/1/32(1)(2) $ 575,905 1,500 Sachem School District, (MBIA), 5.00%, 6/15/27 1,581,945 1,700 Spencerport Central School District, (MBIA), 5.00%, 6/15/22 1,785,323 - ----------------------------------------------------------------------------------------------- $ 3,943,173 - ----------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 14.5% $ 2,250 New York City Health and Hospital Corp., (Health Systems), (AMBAC), 5.00%, 2/15/23 $ 2,362,500 6,125 New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (MBIA), 0.00%, 7/1/26 2,111,104 3,365 New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (MBIA), 0.00%, 7/1/27 1,103,114 - ----------------------------------------------------------------------------------------------- $ 5,576,718 - ----------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 16.6% $ 1,000 New York City Industrial Development Agency, (New York University), (AMBAC), 5.00%, 7/1/31 $ 1,035,890 4,005 New York Urban Development Corp., (Personal Income Tax), (FGIC), 5.00%, 3/15/33 4,173,651 $ 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(1)(2) $ 1,173,130 - ----------------------------------------------------------------------------------------------- $ 6,382,671 - ----------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 4.6% $ 1,000 New York City Cultural Resource Trust, (Museum of Modern Art), (AMBAC), 5.125%, 7/1/31 $ 1,054,240 580 New York City Trust Cultural Resources, (Museum of History), (AMBAC), Variable Rate, 7/1/29(1)(2) 728,497 - ----------------------------------------------------------------------------------------------- $ 1,782,737 - ----------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 18.6% $ 2,500 New York Dormitory Authority, (Brooklyn Law School), (XLCA), 5.125%, 7/1/30 $ 2,625,675 1,500 New York Dormitory Authority, (Fordham University), (FGIC), 5.00%, 7/1/32 1,558,965 1,000 New York Dormitory Authority, (New York University), (AMBAC), 5.00%, 7/1/31 1,035,890 750 New York Dormitory Authority, (New York University), (AMBAC), 5.00%, 7/1/41 772,695 1,125 New York Dormitory Authority, (University of Rochester), (MBIA), 5.00%, 7/1/27 1,161,281 - ----------------------------------------------------------------------------------------------- $ 7,154,506 - ----------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 6.6% $ 2,245 New York Dormitory Authority, (School Districts Financing Program), (MBIA), 5.00%, 10/1/30 $ 2,338,863 200 New York Dormitory Authority, (Upstate Community College), (MBIA), 5.00%, 7/1/27 208,284 - ----------------------------------------------------------------------------------------------- $ 2,547,147 - ----------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 6.6% $ 2,500 New York City Transitional Finance Authority, (MBIA), 4.75%, 5/1/23 $ 2,538,825 - ----------------------------------------------------------------------------------------------- $ 2,538,825 - ----------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 21.1% $ 1,000 Metropolitan Transportation Authority, (FGIC), 5.00%, 11/15/31 $ 1,036,150 2,000 Metropolitan Transportation Authority, (FGIC), 5.25%, 11/15/31 2,133,360 750 Metropolitan Transportation Authority, (FSA), 5.00%, 11/15/30 781,688
See notes to financial statements 25
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION (CONTINUED) $ 835 Port Authority of New York and New Jersey, (FSA), Variable Rate, 11/1/27(1)(2) $ 963,782 1,000 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 7/1/28(1)(2) 1,113,920 $ 2,000 Triborough Bridge and Tunnel Authority, (MBIA), 5.00%, 11/15/32 $ 2,081,600 - ----------------------------------------------------------------------------------------------- $ 8,110,500 - ----------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 13.6% $ 2,700 New York City Municipal Water Finance Authority, (Water and Sewer System), (FGIC), 4.75%, 6/15/31(3) $ 2,719,008 2,400 Niagara Falls, Public Water Authority and Sewer System, (MBIA), 5.00%, 7/15/34 2,503,080 - ----------------------------------------------------------------------------------------------- $ 5,222,088 - ----------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 4.7% $ 750 Buffalo Municipal Water Finance Authority, (FSA), 5.00%, 7/1/27 $ 782,123 1,000 Buffalo Municipal Water Finance Authority, (FSA), 5.125%, 7/1/32 1,049,990 - ----------------------------------------------------------------------------------------------- $ 1,832,113 - ----------------------------------------------------------------------------------------------- MISCELLANEOUS -- 1.8% $ 500 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/32(1)(2) $ 677,150 - ----------------------------------------------------------------------------------------------- $ 677,150 - ----------------------------------------------------------------------------------------------- PRIVATE EDUCATION -- 4.0% $ 1,000 Dutchess County, Industrial Development Agency, (Marist College), 5.00%, 7/1/22 $ 1,027,130 500 Rensselaer County Industrial Development Agency, (Rensselaer Polytech Institute), 5.125%, 8/1/27 514,645 - ----------------------------------------------------------------------------------------------- $ 1,541,775 - ----------------------------------------------------------------------------------------------- TRANSPORTATION -- 10.8% $ 1,500 Port Authority of New York and New Jersey, 5.00%, 9/1/38 $ 1,552,095 2,500 Triborough Bridge and Tunnel Authority, 5.125%, 1/1/31 2,606,925 - ----------------------------------------------------------------------------------------------- $ 4,159,020 - ----------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 154.9% (IDENTIFIED COST $56,799,311) $ 59,672,420 - ----------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 3.5% $ 1,340,983 - ----------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (58.4)% $ (22,500,574) - ----------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 38,512,829 - -----------------------------------------------------------------------------------------------
AMBAC - AMBAC Financial Group, Inc. CIFG - CDC IXIS Financial Guaranty North America, Inc. FGIC - Financial Guaranty Insurance Company FSA - Financial Security Assurance, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, 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 March 31, 2004, 83.3% 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 an individual financial institution ranged from 2.0% to 29.2% 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 26 INSURED OHIO MUNICIPAL BOND FUND as of March 31, 2004 PORTFOLIO OF INVESTMENTS (Unaudited) TAX-EXEMPT INVESTMENTS -- 158.3%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- ESCROWED / PREREFUNDED -- 2.8% $ 925 Ohio, (Infrastructure Improvements), Prerefunded to 3/01/12, 4.875%, 3/1/23 $ 1,030,866 - ----------------------------------------------------------------------------------------------- $ 1,030,866 - ----------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 9.6% $ 3,415 Granville School District, 5.00%, 12/1/24 $ 3,531,178 - ----------------------------------------------------------------------------------------------- $ 3,531,178 - ----------------------------------------------------------------------------------------------- HOSPITAL -- 2.6% $ 900 Cuyahoga County, (Cleveland Clinic Health System), 5.50%, 1/1/29 $ 942,093 - ----------------------------------------------------------------------------------------------- $ 942,093 - ----------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 9.6% $ 4,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/25 $ 1,389,920 1,775 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/26 581,472 5,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/27 1,549,900 - ----------------------------------------------------------------------------------------------- $ 3,521,292 - ----------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 46.8% $ 1,500 Ashtabula School District, (Construction Improvements), (FGIC), 5.00%, 12/1/30(1) $ 1,560,345 2,000 Cincinnati School District, (School Improvements), (FSA), 5.00%, 12/1/22 2,112,880 2,500 Cuyahoga Community College District, (AMBAC), 5.00%, 12/1/32 2,606,125 2,500 Olentangy School District, (School Facility Construction and Improvements), (MBIA), 5.00%, 12/1/30 2,600,575 1,400 Plain School District, (FGIC), 0.00%, 12/1/27 427,966 2,500 Plain School District, (FGIC), 5.00%, 12/1/30 2,605,300 1,400 Powell, (FGIC), 5.50%, 12/1/32 1,526,308 2,600 Trotwood-Madison School District, (School Improvements), (FGIC), 5.00%, 12/1/30 2,704,598 1,000 Zanesville School District, (School Improvements), (MBIA), 5.05%, 12/1/29 1,051,660 - ----------------------------------------------------------------------------------------------- $ 17,195,757 - ----------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 5.6% $ 2,000 Franklin County, (Ohio Health Corp.), (MBIA), 5.00%, 5/15/33 $ 2,061,200 - ----------------------------------------------------------------------------------------------- $ 2,061,200 - ----------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 12.7% $ 1,400 Cleveland, (Cleveland Stadium), (AMBAC), 5.25%, 11/15/27 $ 1,481,144 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(2)(3) 1,173,130 900 Puerto Rico Public Buildings Authority, Government Facility Revenue, (XLCA), 5.25%, 7/1/36 962,856 1,000 Summit County, (Civic Theater Project), (AMBAC), 5.00%, 12/1/33 1,035,010 - ----------------------------------------------------------------------------------------------- $ 4,652,140 - ----------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 0.9% $ 280 Puerto Rico Municipal Finance Agency, (FSA), Variable Rate, 8/1/27(2)(3) $ 325,525 - ----------------------------------------------------------------------------------------------- $ 325,525 - ----------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 16.6% $ 3,000 Cincinnati Technical and Community College, (AMBAC), 5.00%, 10/1/28 $ 3,131,430 1,170 Ohio University, (FSA), 5.25%, 12/1/23 1,268,163 500 University of Akron, (FGIC), Variable Rate, 1/1/29(2)(4) 669,665 1,000 University of Cincinnati, (AMBAC), 5.00%, 6/1/31 1,040,960 - ----------------------------------------------------------------------------------------------- $ 6,110,218 - ----------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 15.5% $ 4,315 Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/22 $ 1,784,339 5,000 Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/23 1,942,750 1,000 Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/24 362,990 875 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(2)(4) 936,119 615 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3) 679,440 - ----------------------------------------------------------------------------------------------- $ 5,705,638 - -----------------------------------------------------------------------------------------------
See notes to financial statements 27
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 16.0% $ 4,750 Cleveland Airport System, (FSA), 5.00%, 1/1/31 $ 4,901,953 885 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 7/1/28(2)(3) 985,819 - ----------------------------------------------------------------------------------------------- $ 5,887,772 - ----------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 10.8% $ 3,800 Cleveland Waterworks, (FGIC), 5.00%, 1/1/25 $ 3,954,432 - ----------------------------------------------------------------------------------------------- $ 3,954,432 - ----------------------------------------------------------------------------------------------- POOLED LOANS -- 0.6% $ 190 Rickenbacker Port Authority Capital Funding (Oasbo), 5.375%, 1/1/32 $ 205,417 - ----------------------------------------------------------------------------------------------- $ 205,417 - ----------------------------------------------------------------------------------------------- PRIVATE EDUCATION -- 8.2% $ 1,000 Ohio Higher Educational Facilities Authority, (Oberlin College), 5.00%, 10/1/33 $ 1,039,480 1,000 Ohio Higher Educational Facilities Authority, (Oberlin College), Variable Rate, 10/1/29(2)(4) 1,064,350 850 Ohio Higher Educational Facilities Commission, (John Carroll University), 5.25%, 11/15/33 895,560 - ----------------------------------------------------------------------------------------------- $ 2,999,390 - ----------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 158.3% (IDENTIFIED COST $55,865,133) $ 58,122,918 - ----------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 1.3% $ 468,500 - ----------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (59.6)% $ (21,876,704) - ----------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 36,714,714 - -----------------------------------------------------------------------------------------------
AMBAC - AMBAC Financial Group, Inc. CIFG - CDC IXIS Financial Guaranty North America, Inc. FGIC - Financial Guaranty Insurance Company FSA - Financial Security Assurance, Inc. MBIA - Municipal Bond Insurance Association XLCA - XL Capital Assurance, 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 March 31, 2004, 85.0% 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 an individual financial institution ranged from 1.7% to 27.5% 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 March 31, 2004 PORTFOLIO OF INVESTMENTS (Unaudited) TAX-EXEMPT INVESTMENTS -- 157.1%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 0.8% $ 325 Puerto Rico Electric Power Authority, Variable Rate, 7/1/29(1)(2) $ 354,165 - ----------------------------------------------------------------------------------------------- $ 354,165 - ----------------------------------------------------------------------------------------------- HOSPITAL -- 8.0% $ 750 Lancaster County Hospital Authority, 5.50%, 3/15/26 $ 777,105 350 Lebanon County Health Facility Authority, (Good Samaritan Hospital), 6.00%, 11/15/35 362,120 1,500 Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32 1,543,560 750 Pennsylvania HEFA, (UPMC Health System), 6.00%, 1/15/31 805,867 - ----------------------------------------------------------------------------------------------- $ 3,488,652 - ----------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 4.5% $ 400 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(2)(3) $ 485,320 1,400 Puerto Rico Electric Power Authority, (FSA), 5.125%, 7/1/26 1,501,430 - ----------------------------------------------------------------------------------------------- $ 1,986,750 - ----------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 2.3% $ 1,000 Pennsylvania Turnpike Commision, Oil Franchise Tax, (AMBAC), Escrowed to Maturity, 4.75%, 12/1/27 $ 1,022,740 - ----------------------------------------------------------------------------------------------- $ 1,022,740 - ----------------------------------------------------------------------------------------------- INSURED-GAS UTILITIES -- 5.3% $ 1,355 Philadelphia Natural Gas Works, (FSA), 5.125%, 8/1/31 $ 1,413,942 875 Philadelphia Natural Gas Works, (FSA), Variable Rate, 7/1/28(1) 914,156 - ----------------------------------------------------------------------------------------------- $ 2,328,098 - ----------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 46.2% $ 250 Allegheny County, (FGIC), 5.25%, 11/1/21 $ 269,438 1,650 Armstrong County, (MBIA), 5.40%, 6/1/31 1,759,676 4,845 Canon McMillan School District, (FGIC), 0.00%, 12/1/33 1,062,654 500 Canon McMillan School District, (FGIC), 5.25%, 12/1/34 530,320 1,000 Cranberry Township, (FGIC), 5.00%, 12/1/25 1,040,280 4,500 East Allegheny School District, (FGIC), 5.00%, 4/1/32 4,665,690 1,080 Fairview School District, (FGIC), 5.125%, 2/1/29 1,128,352 $ 1,000 Gateway, School District Alleghany County, (FGIC), 5.00%, 10/15/32 $ 1,042,120 2,555 McKeesport School District, (MBIA), 0.00%, 10/1/21 1,108,691 2,000 Pennridge School District, (MBIA), 5.00%, 2/15/29 2,082,180 500 Philadelphia, (FSA), 5.00%, 9/15/31 516,435 300 Philadelphia, (FSA), 5.25%, 9/15/25 317,064 585 Philadelphia, (FSA), Variable Rate, 9/15/31(2)(3) 642,699 1,000 Pine-Richland School District, (FSA), 5.00%, 9/1/29 1,035,980 400 Puerto Rico, (FGIC), Variable Rate, 7/1/32(2)(3) 460,724 2,500 Upper Clair Township School District, (FSA), 5.00%, 7/15/32 2,594,275 - ----------------------------------------------------------------------------------------------- $ 20,256,578 - ----------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 5.9% $ 2,500 Washington County Hospital Authority, (Washington Hospital), (AMBAC), 5.125%, 7/1/28 $ 2,579,650 - ----------------------------------------------------------------------------------------------- $ 2,579,650 - ----------------------------------------------------------------------------------------------- INSURED-INDUSTRIAL DEVELOPMENT REVENUE -- 4.0% $ 1,700 Allegheny County IDA, (MBIA), 5.00%, 11/1/29 $ 1,768,867 - ----------------------------------------------------------------------------------------------- $ 1,768,867 - ----------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 7.2% $ 1,300 Philadelphia Authority for Industrial Development Lease Revenue, (FSA), 5.125%, 10/1/26 $ 1,363,141 1,700 Philadelphia Authority for Industrial Development Lease Revenue, (FSA), 5.25%, 10/1/30 1,804,652 - ----------------------------------------------------------------------------------------------- $ 3,167,793 - ----------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 18.5% $ 1,000 Chester County IDA Educational Facility, (Westtown School), (AMBAC), 5.00%, 1/1/31 $ 1,035,980 3,365 Delaware County, (Villanova University), (MBIA), 5.00%, 12/1/28 3,461,172 3,000 Pennsylvania HEFA, (Temple University), (MBIA), 5.00%, 4/1/29(4) 3,087,780 500 Pennsylvania Public School Building Authority, (Lehigh Career and Technical Institute), (MBIA), 5.00%, 10/1/31 517,535 - ----------------------------------------------------------------------------------------------- $ 8,102,467 - -----------------------------------------------------------------------------------------------
See notes to financial statements 29
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 4.8% $ 1,000 Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32 $ 1,058,090 1,000 Pennsylvania HEFA, (Clarion University Foundation), (XLCA), 5.00%, 7/1/33 1,035,510 - ----------------------------------------------------------------------------------------------- $ 2,093,600 - ----------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 10.2% $ 4,350 Pittsburgh and Allegheny County Public Auditorium, (AMBAC), 5.00%, 2/1/29 $ 4,486,590 - ----------------------------------------------------------------------------------------------- $ 4,486,590 - ----------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 21.8% $ 2,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/25 $ 2,082,800 1,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29 1,038,010 1,500 Pennsylvania Turnpike Commission Registration Fee, (AMBAC), 5.00%, 7/15/31 1,562,130 3,750 Pennsylvania Turnpike Commission, (AMBAC), 5.00%, 7/15/41 3,880,725 815 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 7/1/36(2)(3) 976,753 - ----------------------------------------------------------------------------------------------- $ 9,540,418 - ----------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 14.3% $ 1,555 Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25 $ 522,667 2,155 Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25 724,339 1,920 Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26 610,963 2,500 Pennsylvania University Sewer Authority, (MBIA), 5.00%, 11/1/26 2,598,200 1,000 Philadelphia Water & Wastewater, (FGIC), Variable Rate, 11/1/31(2)(3) 1,117,620 580 Pittsburgh Water and Sewer Authority, (AMBAC), Variable Rate, 12/1/27(2)(3) 667,365 - ----------------------------------------------------------------------------------------------- $ 6,241,154 - ----------------------------------------------------------------------------------------------- TRANSPORTATION -- 3.3% $ 1,400 Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/28 $ 1,446,284 - ----------------------------------------------------------------------------------------------- $ 1,446,284 - ----------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 157.1% (IDENTIFIED COST $66,214,453) $ 68,863,806 - ----------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 2.2% $ 981,328 - ----------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (59.3)% $ (26,003,852) - ----------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 43,841,282 - -----------------------------------------------------------------------------------------------
AMBAC - AMBAC Financial Group, Inc. FGIC - Financial Guaranty Insurance Company FSA - Financial Security Assurance, 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 March 31, 2004, 92.3% 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 an individual financial institution ranged from 1.5% to 26.4% 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 30 EATON VANCE INSURED MUNICIPAL BOND FUNDS as of March 31, 2004 FINANCIAL STATEMENTS (Unaudited) STATEMENTS OF ASSETS AND LIABILITIES AS OF MARCH 31, 2004
INSURED INSURED INSURED MUNICIPAL FUND II CALIFORNIA FUND II FLORIDA FUND - --------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments -- Identified cost $ 221,850,294 $ 86,337,097 $ 57,237,651 Unrealized appreciation 9,746,018 3,725,866 2,554,644 - --------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $ 231,596,312 $ 90,062,963 $ 59,792,295 - --------------------------------------------------------------------------------------------------------------------------------- Cash 965,399 577,614 -- Interest receivable 3,084,804 1,050,086 1,148,687 Prepaid expenses 85,404 5,946 5,946 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 235,731,919 $ 91,696,609 $ 60,946,928 - --------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable for investments purchased $ 1,542,600 $ -- $ -- Payable for daily variation margin on open financial futures contracts 687,500 85,937 58,437 Due to bank -- -- 16,316 Accrued expenses 58,097 26,469 23,047 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 2,288,197 $ 112,406 $ 97,800 - --------------------------------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends 87,539,392 33,750,000 22,501,114 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 145,904,330 $ 57,834,203 $ 38,348,014 - --------------------------------------------------------------------------------------------------------------------------------- SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 99,147 $ 38,522 $ 25,596 Additional paid-in capital 140,587,855 54,601,713 36,279,545 Accumulated net realized loss (computed on the basis of identified cost) (3,463,631) (658,172) (507,545) Accumulated undistributed net investment income 1,243,878 413,915 191,370 Net unrealized appreciation (computed on the basis of identified cost) 7,437,081 3,438,225 2,359,048 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 145,904,330 $ 57,834,203 $ 38,348,014 - --------------------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING (LIQUIDATION PREFERENCE OF $25,000 PER SHARE) 3,500 1,350 900 - --------------------------------------------------------------------------------------------------------------------------------- COMMON SHARES OUTSTANDING 9,914,712 3,852,199 2,559,594 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 14.72 $ 15.01 $ 14.98 - ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 31 AS OF MARCH 31, 2004
INSURED INSURED INSURED MASSACHUSETTS FUND MICHIGAN FUND NEW JERSEY FUND - --------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments -- Identified cost $ 39,456,799 $ 33,818,087 $ 57,887,515 Unrealized appreciation 1,564,985 1,608,451 2,958,016 - --------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $ 41,021,784 $ 35,426,538 $ 60,845,531 - --------------------------------------------------------------------------------------------------------------------------------- Cash $ 12,483 $ 89,350 $ -- Interest receivable 585,697 583,281 808,373 Receivable from the Transfer Agent -- 951 4,003 Prepaid expenses 5,946 -- -- - --------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 41,625,910 $ 36,100,120 $ 61,657,907 - --------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable for daily variation margin on open financial futures contracts $ 55,000 $ 48,194 $ 68,750 Due to bank -- -- 41,496 Payable to affiliate for Trustees' fees -- 179 49 Accrued expenses 19,173 13,247 14,500 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 74,173 $ 61,620 $ 124,795 - --------------------------------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends 15,501,860 13,500,336 22,501,114 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 26,049,877 $ 22,538,164 $ 39,031,998 - --------------------------------------------------------------------------------------------------------------------------------- SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 17,454 $ 15,083 $ 25,563 Additional paid-in capital 24,721,550 21,359,971 36,226,665 Accumulated net realized loss (computed on the basis of identified cost) (302,128) (452,751) (302,647) Accumulated undistributed net investment income 231,794 173,909 354,123 Net unrealized appreciation (computed on the basis of identified cost) 1,381,207 1,441,952 2,728,294 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 26,049,877 $ 22,538,164 $ 39,031,998 - --------------------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING (LIQUIDATION PREFERENCE OF $25,000 PER SHARE) 620 540 900 - --------------------------------------------------------------------------------------------------------------------------------- COMMON SHARES OUTSTANDING 1,745,386 1,508,282 2,556,260 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 14.92 $ 14.94 $ 15.27 - ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 32 AS OF MARCH 31, 2004
INSURED INSURED INSURED NEW YORK FUND II OHIO FUND PENNSYLVANIA FUND - ---------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments -- Identified cost $ 56,799,311 $ 55,865,133 $ 66,214,453 Unrealized appreciation 2,873,109 2,257,785 2,649,353 - ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $ 59,672,420 $ 58,122,918 $ 68,863,806 - ---------------------------------------------------------------------------------------------------------------------------------- Cash $ 662,732 $ -- $ 63,894 Interest receivable 786,336 863,107 1,000,438 Receivable from the Transfer Agent -- 6,089 2,409 Prepaid expenses -- 5,945 -- - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 61,121,488 $ 58,998,059 $ 69,930,547 - ---------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable for daily variation margin on open financial futures contracts $ 85,937 $ 113,437 $ 66,000 Due to bank -- 268,665 -- Payable to affiliate for Trustees' fees -- -- 844 Accrued expenses 22,148 24,539 18,569 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 108,085 $ 406,641 $ 85,413 - ---------------------------------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends 22,500,574 21,876,704 26,003,852 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 38,512,829 $ 36,714,714 $ 43,841,282 - ---------------------------------------------------------------------------------------------------------------------------------- SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 25,536 $ 25,066 $ 29,392 Additional paid-in capital 36,186,792 35,520,838 41,656,893 Accumulated net realized loss (computed on the basis of identified cost) (540,664) (834,965) (523,220) Accumulated undistributed net investment income 256,673 126,965 249,772 Net unrealized appreciation (computed on the basis of identified cost) 2,584,492 1,876,810 2,428,445 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 38,512,829 $ 36,714,714 $ 43,841,282 - ---------------------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING (LIQUIDATION PREFERENCE OF $25,000 PER SHARE) 900 875 1,040 - ---------------------------------------------------------------------------------------------------------------------------------- COMMON SHARES OUTSTANDING 2,553,603 2,506,586 2,939,188 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 15.08 $ 14.65 $ 14.92 - ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 33 STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 2004
INSURED INSURED INSURED MUNICIPAL FUND II CALIFORNIA FUND II FLORIDA FUND - --------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 6,467,470 $ 2,343,646 $ 1,567,699 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 6,467,470 $ 2,343,646 $ 1,567,699 - --------------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment adviser fee $ 646,256 $ 250,523 $ 166,535 Trustees fees and expenses 4,398 3,354 870 Legal and accounting services 22,836 18,635 16,974 Printing and postage 15,005 5,772 4,720 Custodian fee 53,851 22,600 15,310 Transfer and dividend disbursing agent 68,317 25,220 18,165 Preferred shares remarketing agent fee 54,838 42,302 28,202 Miscellaneous 45,433 11,563 9,345 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES $ 910,934 $ 379,969 $ 260,121 - --------------------------------------------------------------------------------------------------------------------------------- Deduct -- Reduction of custodian fee $ -- $ 3,363 $ 2,087 Reduction of investment adviser fee 176,252 68,325 45,419 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSE REDUCTIONS $ 176,252 $ 71,688 $ 47,506 - --------------------------------------------------------------------------------------------------------------------------------- NET EXPENSES $ 734,682 $ 308,281 $ 212,615 - --------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $ 5,732,788 $ 2,035,365 $ 1,355,084 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) -- Investment transactions (identified cost basis) $ 2,559,788 $ 55,714 $ 33,648 Financial futures contracts (7,026,823) (957,749) (696,600) - --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED LOSS $ (4,467,035) $ (902,035) $ (662,952) - --------------------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ 5,126,876 $ 2,442,101 $ 1,660,414 Financial futures contracts (129,540) 363,828 248,502 - --------------------------------------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 4,997,336 $ 2,805,929 $ 1,908,916 - --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN $ 530,301 $ 1,903,894 $ 1,245,964 - --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income $ (343,034) $ (129,935) $ (82,725) From net realized gain (171,657) (14,985) (16,866) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (514,691) $ (144,920) $ (99,591) - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 5,748,398 $ 3,794,339 $ 2,501,457 - ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 34 FOR THE SIX MONTHS ENDED MARCH 31, 2004
INSURED INSURED INSURED MASSACHUSETTS FUND MICHIGAN FUND NEW JERSEY FUND - --------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 1,127,855 $ 975,248 $ 1,641,719 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 1,127,855 $ 975,248 $ 1,641,719 - --------------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment adviser fee $ 114,120 $ 98,628 $ 168,107 Trustees fees and expenses 870 266 919 Legal and accounting services 15,660 13,701 14,231 Printing and postage 3,354 745 205 Custodian fee 13,775 10,699 13,480 Transfer and dividend disbursing agent 14,074 12,687 17,416 Preferred shares remarketing agent fee 19,952 16,922 28,202 Miscellaneous 8,634 15,145 16,886 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES $ 190,439 $ 168,793 $ 259,446 - --------------------------------------------------------------------------------------------------------------------------------- Deduct -- Reduction of investment adviser fee $ 31,123 $ 26,899 $ 45,847 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSE REDUCTIONS $ 31,123 $ 26,899 $ 45,847 - --------------------------------------------------------------------------------------------------------------------------------- NET EXPENSES $ 159,316 $ 141,894 $ 213,599 - --------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $ 968,539 $ 833,354 $ 1,428,120 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) -- Investment transactions (identified cost basis) $ 39,490 $ 26,633 $ 143,305 Financial futures contracts (504,956) (404,563) (631,195) - --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED LOSS $ (465,466) $ (377,930) $ (487,890) - --------------------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ 1,062,571 $ 938,755 $ 2,008,179 Financial futures contracts 174,133 21,470 217,667 - --------------------------------------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 1,236,704 $ 960,225 $ 2,225,846 - --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN $ 771,238 $ 582,295 $ 1,737,956 - --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income $ (47,140) $ (61,258) $ (66,260) From net realized gain (28,935) -- (38,781) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (76,075) $ (61,258) $ (105,041) - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,663,702 $ 1,354,391 $ 3,061,035 - ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 35 FOR THE SIX MONTHS ENDED MARCH 31, 2004
INSURED INSURED INSURED NEW YORK FUND II OHIO FUND PENNSYLVANIA FUND - ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 1,594,983 $ 1,530,929 $ 1,796,945 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 1,594,983 $ 1,530,929 $ 1,796,945 - ---------------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment adviser fee $ 167,735 $ 161,392 $ 191,348 Trustees fees and expenses 870 870 1,714 Legal and accounting services 16,803 17,173 14,518 Printing and postage 4,138 5,842 1,025 Custodian fee 18,113 14,907 13,164 Transfer and dividend disbursing agent 21,177 19,176 21,218 Preferred shares remarketing agent fee 28,202 27,419 32,589 Miscellaneous 14,664 8,613 17,915 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES $ 271,702 $ 255,392 $ 293,491 - ---------------------------------------------------------------------------------------------------------------------------------- Deduct -- Reduction of investment adviser fee $ 45,746 $ 44,016 $ 52,186 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSE REDUCTIONS $ 45,746 $ 44,016 $ 52,186 - ---------------------------------------------------------------------------------------------------------------------------------- NET EXPENSES $ 225,956 $ 211,376 $ 241,305 - ---------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $ 1,369,027 $ 1,319,553 $ 1,555,640 - ---------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) -- Investment transactions (identified cost basis) $ 289,348 $ 11,473 $ (15,420) Increase from payment by affiliate 10,000 -- -- Net loss realized on the disposal of an investment in violation of restrictions (10,000) -- -- Financial futures contracts (852,294) (1,084,874) (735,661) - ---------------------------------------------------------------------------------------------------------------------------------- NET REALIZED LOSS $ (562,946) $ (1,073,401) $ (751,081) - ---------------------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ 1,649,104 $ 1,332,858 $ 1,834,683 Financial futures contracts (35,312) (159,333) 279,529 - ---------------------------------------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 1,613,792 $ 1,173,525 $ 2,114,212 - ---------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN $ 1,050,846 $ 100,124 $ 1,363,131 - ---------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income $ (56,887) $ (95,912) $ (100,084) From net realized gain (40,869) (6,904) (32,614) - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (97,756) $ (102,816) $ (132,698) - ---------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,322,117 $ 1,316,861 $ 2,786,073 - ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 36 STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX MONTHS ENDED MARCH 31, 2004
INSURED INSURED INSURED INCREASE (DECREASE) IN NET ASSETS MUNICIPAL FUND II CALIFORNIA FUND II FLORIDA FUND - --------------------------------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 5,732,788 $ 2,035,365 $ 1,355,084 Net realized loss (4,467,035) (902,035) (662,952) Net change in unrealized appreciation (depreciation) 4,997,336 2,805,929 1,908,916 Distributions to preferred shareholders From net investment income (343,034) (129,935) (82,725) From net realized gain (171,657) (14,985) (16,866) - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 5,748,398 $ 3,794,339 $ 2,501,457 - --------------------------------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (4,957,445) $ (1,825,794) $ (1,189,548) From net realized gain (1,566,389) (231,517) (203,870) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (6,523,834) $ (2,057,311) $ (1,393,418) - --------------------------------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 106,173 $ 13,781 $ 53,868 - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ 106,173 $ 13,781 $ 53,868 - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS $ (669,263) $ 1,750,809 $ 1,161,907 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES At beginning of period $ 146,573,593 $ 56,083,394 $ 37,186,107 - --------------------------------------------------------------------------------------------------------------------------------- AT END OF PERIOD $ 145,904,330 $ 57,834,203 $ 38,348,014 - --------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES AT END OF PERIOD $ 1,243,878 $ 413,915 $ 191,370 - ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 37 FOR THE SIX MONTHS ENDED MARCH 31, 2004
INSURED INSURED INSURED INCREASE (DECREASE) IN NET ASSETS MASSACHUSETTS FUND MICHIGAN FUND NEW JERSEY FUND - --------------------------------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 968,539 $ 833,354 $ 1,428,120 Net realized loss (465,466) (377,930) (487,890) Net change in unrealized appreciation (depreciation) 1,236,704 960,225 2,225,846 Distributions to preferred shareholders From net investment income (47,140) (61,258) (66,260) From net realized gain (28,935) -- (38,781) - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,663,702 $ 1,354,391 $ 3,061,035 - --------------------------------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (826,991) $ (714,826) $ (1,226,372) From net realized gain (392,319) -- (525,716) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1,219,310) $ (714,826) $ (1,752,088) - --------------------------------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 19,973 $ 5,342 $ 36,263 - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ 19,973 $ 5,342 $ 36,263 - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 464,365 $ 644,907 $ 1,345,210 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES At beginning of period $ 25,585,512 $ 21,893,257 $ 37,686,788 - --------------------------------------------------------------------------------------------------------------------------------- AT END OF PERIOD $ 26,049,877 $ 22,538,164 $ 39,031,998 - --------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES AT END OF PERIOD $ 231,794 $ 173,909 $ 354,123 - ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 38 FOR THE SIX MONTHS ENDED MARCH 31, 2004
INSURED INSURED INSURED INCREASE (DECREASE) IN NET ASSETS NEW YORK FUND II OHIO FUND PENNSYLVANIA FUND - ---------------------------------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 1,369,027 $ 1,319,553 $ 1,555,640 Net realized loss (562,946) (1,073,401) (751,081) Net change in unrealized appreciation (depreciation) 1,613,792 1,173,525 2,114,212 Distributions to preferred shareholders From net investment income (56,887) (95,912) (100,084) From net realized gain (40,869) (6,904) (32,614) - ---------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,322,117 $ 1,316,861 $ 2,786,073 - ---------------------------------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (1,229,560) $ (1,164,903) $ (1,377,346) From net realized gain (563,836) (82,913) (412,505) - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1,793,396) $ (1,247,816) $ (1,789,851) - ---------------------------------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ -- $ 36,126 $ 23,451 - ---------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ -- $ 36,126 $ 23,451 - ---------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 528,721 $ 105,171 $ 1,019,673 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES At beginning of period $ 37,984,108 $ 36,609,543 $ 42,821,609 - ---------------------------------------------------------------------------------------------------------------------------------- AT END OF PERIOD $ 38,512,829 $ 36,714,714 $ 43,841,282 - ---------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES AT END OF PERIOD $ 256,673 $ 126,965 $ 249,772 - ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 39 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 from net investment income (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 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 40 FOR THE PERIOD ENDED SEPTEMBER 30, 2003(1)
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 from net investment income (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 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 41 FOR THE PERIOD ENDED SEPTEMBER 30, 2003(1)
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 from net investment income (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 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 42 EATON VANCE INSURED MUNICIPAL BOND FUNDS as of March 31, 2004 FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED MUNICIPAL FUND II ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 14.790 $ 14.325(3) - ------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.578 $ 0.879 Net realized and unrealized gain 0.062 0.508 Distributions to preferred shareholders From net investment income (0.035) (0.071) From net realized gain (0.017) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.588 $ 1.316 - ------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.500) $ (0.714) From net realized gain (0.158) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.658) $ (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) $ 14.720 $ 14.790 - ------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 15.450 $ 14.000 - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 4.02%(4) 8.46%(5) - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 15.34%(4) 2.67%(5) - -------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 43 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED MUNICIPAL FUND II ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 145,904 $ 146,574 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.00%(7) 0.86%(7) Net expenses after custodian fee reduction(6) 1.00%(7) 0.84%(7) Net investment income(6) 7.77%(7) 7.14%(7) Portfolio Turnover 10% 79% + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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(6) 1.24%(7) 1.09%(7) Expenses after custodian fee reduction(6) 1.24%(7) 1.07%(7) Net investment income(6) 7.53%(7) 6.91%(7) Net investment income per share $ 0.560 $ 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 0.63%(7) 0.57%(7) Net expenses after custodian fee reduction 0.63%(7) 0.56%(7) Net investment income 4.88%(7) 4.72%(7) + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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 0.78%(7) 0.72%(7) Expenses after custodian fee reduction 0.78%(7) 0.71%(7) Net investment income 4.73%(7) 4.57%(7) - ------------------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 3,500 3,500 Asset coverage per preferred share(8) $ 66,698 $ 66,893 Involuntary liquidation preference per preferred share(9) $ 25,000 $ 25,000 Approximate market value per preferred share(9) $ 25,000 $ 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) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis. (5) 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. (6) 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. (7) Annualized. (8) 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. (9) Plus accumulated and unpaid dividends. See notes to financial statements 44 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED CALIFORNIA FUND II ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- BEGINNING OF PERIOD (COMMON SHARES) $ 14.560 $ 14.325(3) - ------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.528 $ 0.822 Net realized and unrealized gain 0.494 0.281 Distributions to preferred shareholders From net investment income (0.034) (0.050) From net realized gain (0.004) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.984 $ 1.053 - ------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.474) $ (0.675) From net realized gain (0.060) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.534) $ (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) $ 15.010 $ 14.560 - ------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.960 $ 13.800 - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 6.86%(4) 6.62%(5) - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 12.37%(4) 1.06%(5) - -------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 45 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED CALIFORNIA FUND II ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 57,834 $ 56,083 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.08%(7) 0.98%(7) Net expenses after custodian fee reduction(6) 1.07%(7) 0.96%(7) Net investment income(6) 7.09%(7) 6.75%(7) Portfolio Turnover 4% 36% + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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(6) 1.32%(7) 1.22%(7) Expenses after custodian fee reduction(6) 1.31%(7) 1.20%(7) Net investment income(6) 6.85%(7) 6.51%(7) Net investment income per share $ 0.510 $ 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 0.69%(7) 0.64%(7) Net expenses after custodian fee reduction 0.68%(7) 0.63%(7) Net investment income 4.47%(7) 4.46%(7) + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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%(7) 0.80%(7) Expenses after custodian fee reduction 0.83%(7) 0.79%(7) Net investment income 4.32%(7) 4.30%(7) - ------------------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 1,350 1,350 Asset coverage per preferred share(8) $ 67,840 $ 66,545 Involuntary liquidation preference per preferred share(9) $ 25,000 $ 25,000 Approximate market value per preferred share(9) $ 25,000 $ 25,000
(1) Computed using average 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) Returns are historical and are calculated by determining the percentage change in net asset value or maket value with all distributions reinvested. Total return is not computed on an annualized basis. (5) 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. (6) 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. (7) Annualized. (8) 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. (9) Plus accumulated and unpaid dividends. See notes to financial statements 46 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED FLORIDA FUND ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 14.550 $ 14.325(3) - ------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.530 $ 0.788 Net realized and unrealized gain 0.484 0.319 Distributions to preferred shareholders From net investment income (0.032) (0.060) From net realized gain (0.007) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.975 $ 1.047 - ------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.465) $ (0.675) From net realized gain (0.080) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.545) $ (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) $ 14.980 $ 14.550 - ------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 15.110 $ 14.100 - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 6.83%(4) 6.37%(5) - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 11.20%(4) 3.08%(5) - -------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 47 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED FLORIDA FUND ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 38,348 $ 37,186 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.13%(7) 1.04%(7) Net expenses after custodian fee reduction(6) 1.12%(7) 0.98%(7) Net investment income(6) 7.12%(7) 6.45%(7) Portfolio Turnover 6% 29% + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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(6) 1.37%(7) 1.29%(7) Expenses after custodian fee reduction(6) 1.36%(7) 1.23%(7) Net investment income(6) 6.88%(7) 6.20%(7) Net investment income per share $ 0.512 $ 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 0.71%(7) 0.69%(7) Net expenses after custodian fee reduction 0.70%(7) 0.65%(7) Net investment income 4.47%(7) 4.25%(7) + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios would be as follows: Ratios (As a percentage of average total net assets): Expenses 0.86%(7) 0.86%(7) Expenses after custodian fee reduction 0.85%(7) 0.82%(7) Net investment income 4.32%(7) 4.08%(7) - ------------------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 900 900 Asset coverage per preferred share(8) $ 67,610 $ 66,319 Involuntary liquidation preference per preferred share(9) $ 25,000 $ 25,000 Approximate market value per preferred share(9) $ 25,000 $ 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) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis. (5) 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. (6) 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. (7) Annualized. (8) 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. (9) Plus accumulated and unpaid dividends. See notes to financial statements 48 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED MASSACHUSETTS FUND ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 14.670 $ 14.325(3) - ------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.555 $ 0.823 Net realized and unrealized gain 0.438 0.411 Distributions to preferred shareholders From net investment income (0.027) (0.058) From net realized gain (0.017) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.949 $ 1.176 - ------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.474) $ (0.675) From net realized gain (0.225) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.699) $ (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) $ 14.920 $ 14.670 - ------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 16.030 $ 14.450 - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 6.56%(4) 7.22%(5) - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 16.24%(4) 5.61%(5) - -------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 49 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED MASSACHUSETTS FUND ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 26,050 $ 25,586 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.23%(7) 1.10%(7) Net expenses after custodian fee reduction(6) 1.23%(7) 1.06%(7) Net investment income(6) 7.45%(7) 6.73%(7) Portfolio Turnover 14% 81% + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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(6) 1.47%(7) 1.36%(7) Expenses after custodian fee reduction(6) 1.47%(7) 1.32%(7) Net investment income(6) 7.21%(7) 6.47%(7) Net investment income per share $ 0.537 $ 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 0.77%(7) 0.73%(7) Net expenses after custodian fee reduction 0.77%(7) 0.70%(7) Net investment income 4.67%(7) 4.42%(7) + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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 0.92%(7) 0.90%(7) Expenses after custodian fee reduction 0.92%(7) 0.87%(7) Net investment income 4.52%(7) 4.25%(7) - ------------------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 620 620 Asset coverage per preferred share(8) $ 67,019 $ 66,270 Involuntary liquidation preference per preferred share(9) $ 25,000 $ 25,000 Approximate market value per preferred share(9) $ 25,000 $ 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) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis. (5) 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. (6) 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. (7) Annualized. (8) 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. (9) Plus accumulated and unpaid dividends. See notes to financial statements 50 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED MICHIGAN FUND ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 14.520 $ 14.325(3) - ------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.553 $ 0.824 Net realized and unrealized gain 0.382 0.262 Distribution to preferred shareholders From net investment income (0.041) (0.058) - ------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.894 $ 1.028 - ------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.474) $ (0.675) - ------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.474) $ (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) $ 14.940 $ 14.520 - ------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 16.350 $ 14.410 - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 6.16%(4) 6.12%(5) - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 17.06%(4) 5.31%(5) - -------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 51 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED MICHIGAN FUND ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 22,538 $ 21,893 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.27%(7) 1.14%(7) Net expenses after custodian fee reduction(6) 1.27%(7) 1.09%(7) Net investment income(6) 7.45%(7) 6.75%(7) Portfolio Turnover 3% 79% + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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(6) 1.51%(7) 1.41%(7) Expenses after custodian fee reduction(6) 1.51%(7) 1.36%(7) Net investment income(6) 7.21%(7) 6.48%(7) Net investment income per share $ 0.535 $ 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 0.79%(7) 0.75%(7) Net expenses after custodian fee reduction 0.79%(7) 0.71%(7) Net investment income 4.65%(7) 4.42%(7) + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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 0.94%(7) 0.93%(7) Expenses after custodian fee reduction 0.94%(7) 0.89%(7) Net investment income 4.50%(7) 4.25%(7) - ------------------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 540 540 Asset coverage per preferred share(8) $ 66,738 $ 65,543 Involuntary liquidation preference per preferred share(9) $ 25,000 $ 25,000 Approximate market value per preferred share(9) $ 25,000 $ 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) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis. (5) 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. (6) 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. (7) Annualized. (8) Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this number by the number of preferred shares outstanding. (9) Plus accumulated and unpaid dividends. See notes to financial statements 52 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED NEW JERSEY FUND ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 14.760 $ 14.325(3) - ------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.559 $ 0.826 Net realized and unrealized gain 0.678 0.489 Distribution to preferred shareholders From net investment income (0.026) (0.058) From net realized gain (0.015) - ------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 1.196 $ 1.257 - ------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.480) $ (0.675) From net realized gain (0.206) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.686) $ (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) $ 15.270 $ 14.760 - ------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 15.910 $ 14.520 - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 8.24%(4) 7.89%(5) - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 14.64%(4) 6.14%(5) - -------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 53 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED NEW JERSEY FUND ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 39,032 $ 37,687 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.10%(7) 1.03%(7) Net expenses after custodian fee reduction(6) 1.10%(7) 0.99%(7) Net investment income(6) 7.39%(7) 6.69%(7) Portfolio Turnover 5% 68% + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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(6) 1.34%(7) 1.28%(7) Expenses after custodian fee reduction(6) 1.34%(7) 1.24%(7) Net investment income(6) 7.15%(7) 6.44%(7) Net investment income per share $ 0.541 $ 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 follows: Ratios (As a percentage of average total net assets): Net expenses 0.70%(7) 0.69%(7) Net expenses after custodian fee reduction 0.70%(7) 0.66%(7) Net investment income 4.67%(7) 4.43%(7) + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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%(7) 0.85%(7) Expenses after custodian fee reduction 0.85%(7) 0.82%(7) Net investment income 4.52%(7) 4.26%(7) - ------------------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 900 900 Asset coverage per preferred share(8) $ 68,370 $ 66,875 Involuntary liquidation preference per preferred share(9) $ 25,000 $ 25,000 Approximate market value per preferred share(9) $ 25,000 $ 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) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis. (5) 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. (6) 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. (7) Annualized. (8) 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 or preferred shares outstanding. (9) Plus accumulated and unpaid dividends See notes to financial statements 54 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED NEW YORK FUND II ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 14.870 $ 14.325(3) - ------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.536 $ 0.818 Net realized and unrealized gain 0.415 0.617 Distributions to preferred shareholders From net investment income (0.022) (0.057) From net realized gain (0.016) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.913 $ 1.378 - ------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.482) $ (0.686) From net realized gain (0.221) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.703) $ (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) $ 15.080 $ 14.870 - ------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 15.270 $ 13.710 - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 6.30%(4)(10) 8.87%(5) - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 16.75%(4)(10) 0.38%(5) - -------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 55 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED NEW YORK FUND II ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 38,513 $ 37,984 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.17%(7) 1.03%(7) Net expenses after custodian fee reduction(6) 1.17%(7) 0.98%(7) Net investment income(6) 7.11%(7) 6.65%(7) Portfolio Turnover 7% 66% + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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(6) 1.41%(7) 1.28%(7) Expenses after custodian fee reduction(6) 1.41%(7) 1.23%(7) Net investment income(6) 6.87%(7) 6.40%(7) Net investment income per share $ 0.518 $ 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 0.74%(7) 0.68%(7) Net expenses after custodian fee reduction 0.74%(7) 0.65%(7) Net investment income 4.49%(7) 4.40%(7) + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios would be as follows: Ratios (As a percentage of average total net assets): Expenses 0.89%(7) 0.85%(7) Expenses after custodian fee reduction 0.89%(7) 0.82%(7) Net investment income 4.34%(7) 4.23%(7) - ------------------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 900 900 Asset coverage per preferred share(8) $ 67,793 $ 67,209 Involuntary liquidation preference per preferred share(9) $ 25,000 $ 25,000 Approximate market value per preferred share(9) $ 25,000 $ 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) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis. (5) 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. (6) 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. (7) Annualized. (8) 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. (9) Plus accumulated and unpaid dividends. (10) During the six months ended March 31, 2004, the investment adviser reimbursed the Fund for a net loss realized on the disposal of an investment in violation of restrictions. This reimbursement was less than $0.01 per common share and had no effect on total investment return on net asset value and total investment return on market value for the six months ended March 31, 2004. See notes to financial statements 56 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED OHIO FUND ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 14.620 $ 14.325(3) - ------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.527 $ 0.776 Net realized and unrealized gain 0.042 0.402 Distributions to preferred shareholders From net investment income (0.038) (0.060) From net realized gain (0.003) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.528 $ 1.118 - ------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.465) $ (0.675) From net realized gain (0.033) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.498) $ (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) $ 14.650 $ 14.620 - ------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 15.760 $ 14.430 - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 3.57%(4) 6.85%(5) - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 12.88%(4) 5.46%(5) - -------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 57 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED OHIO FUND ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 36,715 $ 36,610 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.15%(7) 1.05%(7) Net expenses after custodian fee reduction(6) 1.15%(7) 0.99%(7) Net investment income(6) 7.17%(7) 6.38%(7) Portfolio Turnover 4% 32% + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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(6) 1.39%(7) 1.30%(7) Expenses after custodian fee reduction(6) 1.39%(7) 1.24%(7) Net investment income(6) 6.93%(7) 6.13%(7) Net investment income per share $ 0.509 $ 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 0.72%(7) 0.69%(7) Net expenses after custodian fee reduction 0.72%(7) 0.65%(7) Net investment income 4.50%(7) 4.21%(7) + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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 0.87%(7) 0.86%(7) Expenses after custodian fee reduction 0.87%(7) 0.82%(7) Net investment income 4.35%(7) 4.04%(7) - ------------------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 875 875 Asset coverage per preferred share(8) $ 66,962 $ 66,841 Involuntary liquidation preference per preferred share(9) $ 25,000 $ 25,000 Approximate market value per preferred share(9) $ 25,000 $ 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) Returns are historical and are calculated by determining the percentage change in net asset value or maket value with all distributions reinvested. Total return is not computed on an annualized basis. (5) 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 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 current maket 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. (6) 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. (7) Annualized. (8) 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. (9) Plus accumulated and unpaid dividends. See notes to financial statements 58 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED PENNSYLVANIA FUND ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 14.580 $ 14.325(3) - ------------------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 0.529 $ 0.811 Net realized and unrealized gain 0.465 0.331 Distributions to preferred shareholders From net investment income (0.034) (0.060) From net realized gain (0.011) -- - ------------------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.949 $ 1.082 - ------------------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.469) $ (0.681) From net realized gain (0.140) - ------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.609) $ (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) $ 14.920 $ 14.580 - ------------------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 16.060 $ 14.330 - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 6.55%(4) 6.63%(5) - ------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 16.69%(4) 4.80%(5) - -------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 59 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED PENNSYLVANIA FUND ----------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2004 ------------------------ (UNAUDITED)(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 43,841 $ 42,822 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.11%(7) 1.03%(7) Net expenses after custodian fee reduction(6) 1.11%(7) 0.97%(7) Net investment income(6) 7.14%(7) 6.64%(7) Portfolio Turnover 5% 34% + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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(6) 1.35%(7) 1.28%(7) Expenses after custodian fee reduction(6) 1.35%(7) 1.22%(7) Net investment income(6) 6.90%(7) 6.39%(7) Net investment income per share $ 0.512 $ 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 0.69%(7) 0.68%(7) Net expenses after custodian fee reduction 0.69%(7) 0.64%(7) Net investment income 4.47%(7) 4.37%(7) + The operating expenses of the Fund may reflect a reduction of the investment adviser fee and/or 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%(7) 0.84%(7) Expenses after custodian fee reduction 0.84%(7) 0.80%(7) Net investment income 4.32%(7) 4.20%(7) - ------------------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 1,040 1,040 Asset coverage per preferred share(8) $ 67,159 $ 66,178 Involuntary liquidation preference per preferred share(9) $ 25,000 $ 25,000 Approximate market value per preferred share(9) $ 25,000 $ 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) Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis. (5) 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. (6) 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. (7) Annualized. (8) 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. (9) Plus accumulated and unpaid dividends. See notes to financial statements 60 EATON VANCE INSURED MUNICIPAL BOND FUNDS as of March 31, 2004 NOTES TO FINANCIAL STATEMENTS (Unaudited) 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. Exchange-traded options are valued at the last sale price for the day of valuation as quoted on the principal exchange or board of trade on which the options are traded or, in the absence of sales on such date, at the mean between the latest bid and asked prices therefore. 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 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 30, 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 61 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 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 OPTIONS ON FINANCIAL FUTURES CONTRACTS -- Upon the purchase of a put option on a financial futures contract by a Fund, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, a Fund will realize a loss in the amount of the cost of the option. When a Fund enters into a closing sale transaction, a Fund will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the cost of the option. When a Fund exercises a put option, settlement is made in cash. The risk associated with purchasing put options is limited to the premium originally paid. H 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. I INDEMNIFICATIONS -- Under each Fund's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each Fund and shareholders are indemnified against personal liability for the obligations of each Fund. Additionally, in the normal course of business, each Fund enters into agreements with service providers that may contain indemnification clauses. Each Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Fund that have not yet occurred. J 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. K INTERIM FINANCIAL STATEMENTS -- The interim financial statements relating to March 31, 2004 and for the six months then ended have not been audited by independent certified public accountants, but in the opinion of the Funds' management reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements. 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 elected an Initial Dividend Period for Series B of 360 days. 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 March 31, 2004 and dividend rate ranges for the six months ended March 31, 2004 are as indicated below:
PREFERRED SHARES DIVIDENDS RATE FUND ISSUED AND OUTSTANDING RANGES --------------------------------------------------------------------------- Insured Municipal II Series A 1,750 0.45% - 1.75% Insured Municipal II Series B 1,750 1.06% - 1.35% Insured California II 1,350 0.40% - 1.50% Insured Florida 900 0.45% - 1.19% Insured Massachusetts 620 0.45% - 1.75% Insured Michigan 540 0.60% - 1.20% Insured New Jersey 900 0.40% - 2.00% Insured New York II 900 0.45% - 1.25% Insured Ohio 875 0.75% - 1.75% Insured Pennsylvania 1,040 0.82% - 1.15%
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 62 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 of realized capital gains, if any, are made at least annually. 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 9, 2004, the Series B shares of the Insured Municipal Fund II set a special dividend period of 366 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 10, 2005. The applicable dividend rate for Auction Preferred Shares on March 31, 2004 are listed below. For the six months ended March 31, 2004, the amount of dividends each Fund paid to Auction Preferred shareholders and average APS dividend rates for such period were as follows:
DIVIDENDS PAID TO PREFERRED SHAREHOLDERS FROM NET INVESTMENT INCOME AVERAGE APS APS AND NET REALIZED DIVIDEND RATES DIVIDEND RATES GAIN FOR THE FOR THE SIX MONTHS AS OF SIX MONTHS ENDED ENDED FUND MARCH 31, 2004 MARCH 31, 2004 MARCH 31, 2004 ------------------------------------------------------------------------------------ Insured Municipal II Series A 0.90% 260,452 0.93% Insured Municipal II Series B 1.06% 254,239 1.27% Insured California II 0.45% 144,920 0.85% Insured Florida 0.90% 99,591 0.88% Insured Massachusetts 0.73% 76,075 0.98% Insured Michigan 0.90% 61,258 0.90% Insured New Jersey 0.90% 105,041 0.93% Insured New York II 0.94% 97,756 0.87% Insured Ohio 0.95% 102,816 0.94% Insured Pennsylvania 0.90% 132,698 0.93%
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 six months ended March 31, 2004, the fee was equivalent to 0.55% (annualized) of each Fund's average weekly gross assets and amounted to $646,256, $250,523, $166,535, $114,120, $98,628, $168,107, $167,735, $161,392 and $191,348 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 six months ended March 31, 2004, EVM contractually waived $176,252, $68,325, $45,419, $31,123, $26,899, $45,847, $45,746, $44,016 and $52,186 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. EVM made a voluntary reimbursement to the Eaton Vance Insured New York Municipal Bond Fund II of $10,000 to compensate the Fund for a realized loss incurred from the sale of an investment security in violation of the Fund's investment restrictions. 63 Certain officers and one Trustee of each Fund are officers of the above organization. During the six months ended March 31, 2004, the Insured Florida Fund engaged in a sale transaction in the amount of $512,305 with a Portfolio which utilizes Boston Management and Research, a wholly-owned subsidiary of EVM, as an investment adviser. The sale transaction complied with Rule 17a-7 under the Investment Company Act of 1940. 5 INVESTMENTS Purchases and sales of investments, other than U.S. Government securities and short-term obligations, for the six months ended March 31, 2004 were as follows: INSURED MUNICIPAL FUND II Purchases $ 23,877,307 Sales 36,285,993 INSURED CALIFORNIA FUND II Purchases $ 3,496,567 Sales 5,201,220 INSURED FLORIDA FUND Purchases $ 3,359,230 Sales 3,727,206 INSURED MASSACHUSETTS FUND Purchases $ 5,756,656 Sales 7,623,894 INSURED MICHIGAN FUND Purchases $ 1,008,130 Sales 1,788,436 INSURED NEW JERSEY FUND Purchases $ 3,266,377 Sales 4,788,648 INSURED NEW YORK FUND II Purchases $ 4,405,160 Sales 6,620,428 INSURED OHIO FUND Purchases $ 2,202,732 Sales 3,383,109 INSURED PENNSYLVANIA FUND Purchases $ 3,716,463 Sales 4,624,178
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 March 31, 2004, as computed for Federal income tax purposes, were as follows: INSURED MUNICIPAL FUND II AGGREGATE COST $ 221,787,116 ------------------------------------------------------------ Gross unrealized appreciation $ 10,709,338 Gross unrealized depreciation (900,142) ------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 9,809,196 ------------------------------------------------------------ INSURED CALIFORNIA FUND II AGGREGATE COST $ 86,314,140 ------------------------------------------------------------ Gross unrealized appreciation $ 3,748,823 Gross unrealized depreciation -- ------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 3,748,823 ------------------------------------------------------------ INSURED FLORIDA FUND AGGREGATE COST $ 57,227,193 ------------------------------------------------------------ Gross unrealized appreciation $ 2,565,102 Gross unrealized depreciation -- ------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 2,565,102 ------------------------------------------------------------ INSURED MASSACHUSETTS FUND AGGREGATE COST $ 39,447,810 ------------------------------------------------------------ Gross unrealized appreciation $ 1,591,194 Gross unrealized depreciation (17,220) ------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 1,573,974 ------------------------------------------------------------ INSURED MICHIGAN FUND AGGREGATE COST $ 33,805,685 ------------------------------------------------------------ Gross unrealized appreciation $ 1,620,853 Gross unrealized depreciation -- ------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 1,620,853 ------------------------------------------------------------
64 INSURED NEW JERSEY FUND AGGREGATE COST $ 57,886,572 ------------------------------------------------------------ Gross unrealized appreciation $ 2,965,664 Gross unrealized depreciation (6,705) ------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 2,958,959 ------------------------------------------------------------ INSURED NEW YORK FUND II AGGREGATE COST $ 56,787,798 ------------------------------------------------------------ Gross unrealized appreciation $ 2,884,622 Gross unrealized depreciation -- ------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 2,884,622 ------------------------------------------------------------ INSURED OHIO FUND AGGREGATE COST $ 55,837,218 ------------------------------------------------------------ Gross unrealized appreciation $ 2,286,403 Gross unrealized depreciation (703) ------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 2,285,700 ------------------------------------------------------------ INSURED PENNSYLVANIA FUND AGGREGATE COST $ 66,207,343 ------------------------------------------------------------ Gross unrealized appreciation $ 2,656,463 Gross unrealized depreciation -- ------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 2,656,463 ------------------------------------------------------------
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 six months ended March 31, 2004 were as follows:
INSURED MUNICIPAL FUND II -------------------------------------------- SIX MONTHS ENDED MARCH 31, 2004 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2003(1) ----------------------------------------------------------------------------------------- Sales -- 9,897,891 Shares issued pursuant to the Fund's dividend reinvestment plan 7,131 3,023 ----------------------------------------------------------------------------------------- NET INCREASE 7,131 9,900,914 -----------------------------------------------------------------------------------------
INSURED CALIFORNIA FUND II -------------------------------------------- SIX MONTHS ENDED MARCH 31, 2004 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2003(1) ----------------------------------------------------------------------------------------- Sales -- 3,844,564 Shares issued pursuant to the Fund's dividend reinvestment plan 942 26 ----------------------------------------------------------------------------------------- NET INCREASE 942 3,844,590 -----------------------------------------------------------------------------------------
INSURED FLORIDA FUND -------------------------------------------- SIX MONTHS ENDED MARCH 31, 2004 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2003(1) ----------------------------------------------------------------------------------------- Sales -- 2,535,523 Shares issued pursuant to the Fund's dividend reinvestment plan 3,671 13,733 ----------------------------------------------------------------------------------------- NET INCREASE 3,671 2,549,256 -----------------------------------------------------------------------------------------
INSURED MASSACHUSETTS FUND -------------------------------------------- SIX MONTHS ENDED MARCH 31, 2004 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2003(1) ----------------------------------------------------------------------------------------- Sales -- 1,736,767 Shares issued pursuant to the Fund's dividend reinvestment plan 1,346 606 ----------------------------------------------------------------------------------------- NET INCREASE 1,346 1,737,373 -----------------------------------------------------------------------------------------
INSURED MICHIGAN FUND -------------------------------------------- SIX MONTHS ENDED MARCH 31, 2004 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2003(1) ----------------------------------------------------------------------------------------- Sales -- 1,500,707 Shares issued pursuant to the Fund's dividend reinvestment plan 352 556 ----------------------------------------------------------------------------------------- NET INCREASE 352 1,501,263 -----------------------------------------------------------------------------------------
INSURED NEW JERSEY FUND -------------------------------------------- SIX MONTHS ENDED MARCH 31, 2004 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2003(1) ----------------------------------------------------------------------------------------- Sales -- 2,546,634 Shares issued pursuant to the Fund's dividend reinvestment plan 2,406 553 ----------------------------------------------------------------------------------------- NET INCREASE 2,406 2,547,187 -----------------------------------------------------------------------------------------
65
INSURED NEW YORK FUND II -------------------------------------------- SIX MONTHS ENDED MARCH 31, 2004 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2003(1) ----------------------------------------------------------------------------------------- Sales -- 2,546,647 Shares issued pursuant to the Fund's dividend reinvestment plan -- 289 ----------------------------------------------------------------------------------------- NET INCREASE -- 2,546,936 -----------------------------------------------------------------------------------------
INSURED OHIO FUND -------------------------------------------- SIX MONTHS ENDED MARCH 31, 2004 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2003(1) ----------------------------------------------------------------------------------------- Sales -- 2,496,446 Shares issued pursuant to the Fund's dividend reinvestment plan 2,400 1,073 ----------------------------------------------------------------------------------------- NET INCREASE 2,400 2,497,519 -----------------------------------------------------------------------------------------
INSURED PENNSYLVANIA FUND -------------------------------------------- SIX MONTHS ENDED MARCH 31, 2004 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2003(1) ----------------------------------------------------------------------------------------- Sales -- 2,930,531 Shares issued pursuant to the Fund's dividend reinvestment plan 1,564 426 ----------------------------------------------------------------------------------------- NET INCREASE 1,564 2,930,957 -----------------------------------------------------------------------------------------
(1) For the period from the start of business, November 29, 2002, to September 30, 2003. 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 March 31, 2004 is as follows: FUTURES CONTRACTS
EXPIRATION NET UNREALIZED FUND DATE CONTRACTS POSITION DEPRECIATION ------------------------------------------------------------------------------------------- Insured Municipal II 6/04 1,000 U.S. Treasury Bond Short $ (2,308,937) ------------------------------------------------------------------------------------------- Insured California II 6/04 125 U.S. Treasury Bond Short $ (287,641) ------------------------------------------------------------------------------------------- Insured Florida 6/04 85 U.S. Treasury Bond Short $ (195,596) ------------------------------------------------------------------------------------------- Insured Massachusetts 6/04 80 U.S. Treasury Bond Short $ (183,778) ------------------------------------------------------------------------------------------- Insured Michigan 6/04 77 U.S. Treasury Bond Short $ (166,499) ------------------------------------------------------------------------------------------- Insured New Jersey 6/04 100 U.S. Treasury Bond Short $ (229,722) ------------------------------------------------------------------------------------------- Insured New York II 6/04 125 U.S. Treasury Bond Short $ (288,617) ------------------------------------------------------------------------------------------- Insured Ohio 6/04 165 U.S. Treasury Bond Short $ (380,975) ------------------------------------------------------------------------------------------- Insured Pennsylvania 6/04 96 U.S. Treasury Bond Short $ (220,908) -------------------------------------------------------------------------------------------
At March 31, 2004, each Fund had sufficient cash and/or securities to cover margin requirements on open future contracts. 66 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. 67 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 March 31, 2004, our records indicate that there are 32, 11, 9, 7, 9, 9, 20, 23 and 56 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 4,700, 1,500, 1,200, 900, 900, 1,500, 1,300, 1,400 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 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 68 EATON VANCE INSURED MUNICIPAL BOND FUNDS INVESTMENT MANAGEMENT EATON VANCE INSURED MUNICIPAL BOND FUNDS OFFICERS Thomas J. Fetter President and Portfolio Manager of Insured Municipal Bond Fund II, Insured New York Municipal Bond Fund II and Insured Ohio Municipal Bond Fund James B. Hawkes Vice President and Trustee William H. Ahern, Jr. Vice President and Portfolio Manager of Insured Michigan Municipal Bond Fund Cynthia J. Clemson Vice President and Portfolio Manager of Insured California Municipal Bond Fund II, Insured Florida Municipal Bond Fund and Insured Pennsylvania Municipal Bond Fund Robert B. MacIntosh Vice President and Portfolio Manager of Insured Massachusetts Municipal Bond Fund and Insured New Jersey Municipal Bond Fund James L O'Connor Treasurer Alan R. Dynner Secretary TRUSTEES Samuel L. Hayes, III William H. Park Ronald A. Pearlman Norton H. Reamer Lynn A. Stout 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 EATON VANCE INSURED MUNICIPAL BOND FUNDS THE EATON VANCE BUILDING 255 STATE STREET BOSTON, MA 02109 1557-5/04 9IMBIISRC 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 (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, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), 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. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund except as contemplated under the Fund Policy. The Board's Special Committee will instruct the investment adviser on the appropriate course of action. The Policies are designed to promote accountability of a company's management to its shareholders and to align the interests of management with those shareholders. The investment adviser will generally support company management on proposals relating to environmental and social policy issues and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), the investment adviser will review each matter on a case-by-case basis and reserves the right to deviate from the Policies guidelines when it believes the situation warrants such a deviation. The Policy includes voting guidelines for matters relating to, among other things, the election of directors, approval of independent auditors, executive compensation, corporate structure and anti-takeover defenses. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote. In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser's personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 [is/will be] available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission's website at http://www.sec.gov. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not required in this filing. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Effective February 9, 2004, the Governance Committee of the Board of Trustees formalized the procedures by which a Fund's shareholders may recommend nominees to the registrant's Board of Trustees. The Governance Committee shall, when identifying candidates for the position of Independent Trustee, consider any such candidate recommended by a shareholder of a Fund if such recommendation contains sufficient background information concerning the candidate, and is received in a sufficiently timely manner (and in any event no later than the date specified for receipt of shareholder proposals in any applicable proxy statement with respect to a Fund). Shareholders shall be directed to address any such recommendations to the attention of the Governance Committee, c/o the Secretary of the Fund. ITEM 10. 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 changes in the registrant's internal controls over financial reporting during the period that has materially affected, or is reasonably likely to materially affect the registrant's internal control over financial reporting. ITEM 11. 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: May 20, 2004 ------------ Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor ----------------------------------------------- James L. O'Connor Treasurer Date: May 20, 2004 ------------ By: /s/ Thomas J. Fetter ----------------------------------------------- Thomas J. Fetter President Date: May 20, 2004 ------------ 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 (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, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), 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. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund except as contemplated under the Fund Policy. The Board's Special Committee will instruct the investment adviser on the appropriate course of action. The Policies are designed to promote accountability of a company's management to its shareholders and to align the interests of management with those shareholders. The investment adviser will generally support company management on proposals relating to environmental and social policy issues and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), the investment adviser will review each matter on a case-by-case basis and reserves the right to deviate from the Policies guidelines when it believes the situation warrants such a deviation. The Policy includes voting guidelines for matters relating to, among other things, the election of directors, approval of independent auditors, executive compensation, corporate structure and anti-takeover defenses. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote. In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser's personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 [is/will be] available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission's website at http://www.sec.gov. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not required in this filing. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Effective February 9, 2004, the Governance Committee of the Board of Trustees formalized the procedures by which a Fund's shareholders may recommend nominees to the registrant's Board of Trustees. The Governance Committee shall, when identifying candidates for the position of Independent Trustee, consider any such candidate recommended by a shareholder of a Fund if such recommendation contains sufficient background information concerning the candidate, and is received in a sufficiently timely manner (and in any event no later than the date specified for receipt of shareholder proposals in any applicable proxy statement with respect to a Fund). Shareholders shall be directed to address any such recommendations to the attention of the Governance Committee, c/o the Secretary of the Fund. ITEM 10. 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 changes in the registrant's internal controls over financial reporting during the period that has materially affected, or is reasonably likely to materially affect the registrant's internal control over financial reporting. ITEM 11. 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 II MUNICIPAL BOND FUND By: /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: May 20, 2004 ------------ Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /S/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: May 20, 2004 ------------ By: /S/ Thomas J. Fetter --------------------- Thomas J. Fetter President Date: May 20, 2004 ------------ 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 (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, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), 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. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund except as contemplated under the Fund Policy. The Board's Special Committee will instruct the investment adviser on the appropriate course of action. The Policies are designed to promote accountability of a company's management to its shareholders and to align the interests of management with those shareholders. The investment adviser will generally support company management on proposals relating to environmental and social policy issues and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), the investment adviser will review each matter on a case-by-case basis and reserves the right to deviate from the Policies guidelines when it believes the situation warrants such a deviation. The Policy includes voting guidelines for matters relating to, among other things, the election of directors, approval of independent auditors, executive compensation, corporate structure and anti-takeover defenses. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote. In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser's personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 [is/will be] available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission's website at http://www.sec.gov. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not required in this filing. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Effective February 9, 2004, the Governance Committee of the Board of Trustees formalized the procedures by which a Fund's shareholders may recommend nominees to the registrant's Board of Trustees. The Governance Committee shall, when identifying candidates for the position of Independent Trustee, consider any such candidate recommended by a shareholder of a Fund if such recommendation contains sufficient background information concerning the candidate, and is received in a sufficiently timely manner (and in any event no later than the date specified for receipt of shareholder proposals in any applicable proxy statement with respect to a Fund). Shareholders shall be directed to address any such recommendations to the attention of the Governance Committee, c/o the Secretary of the Fund. ITEM 10. 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 changes in the registrant's internal controls over financial reporting during the period that has materially affected, or is reasonably likely to materially affect the registrant's internal control over financial reporting. ITEM 11. 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: May 20, 2004 ------------ Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: May 20, 2004 ------------ By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: May 20, 2004 ------------ 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 (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, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), 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. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund except as contemplated under the Fund Policy. The Board's Special Committee will instruct the investment adviser on the appropriate course of action. The Policies are designed to promote accountability of a company's management to its shareholders and to align the interests of management with those shareholders. The investment adviser will generally support company management on proposals relating to environmental and social policy issues and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), the investment adviser will review each matter on a case-by-case basis and reserves the right to deviate from the Policies guidelines when it believes the situation warrants such a deviation. The Policy includes voting guidelines for matters relating to, among other things, the election of directors, approval of independent auditors, executive compensation, corporate structure and anti-takeover defenses. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote. In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser's personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 [is/will be] available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission's website at http://www.sec.gov. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not required in this filing. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Effective February 9, 2004, the Governance Committee of the Board of Trustees formalized the procedures by which a Fund's shareholders may recommend nominees to the registrant's Board of Trustees. The Governance Committee shall, when identifying candidates for the position of Independent Trustee, consider any such candidate recommended by a shareholder of a Fund if such recommendation contains sufficient background information concerning the candidate, and is received in a sufficiently timely manner (and in any event no later than the date specified for receipt of shareholder proposals in any applicable proxy statement with respect to a Fund). Shareholders shall be directed to address any such recommendations to the attention of the Governance Committee, c/o the Secretary of the Fund. ITEM 10. 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 changes in the registrant's internal controls over financial reporting during the period that has materially affected, or is reasonably likely to materially affect the registrant's internal control over financial reporting. ITEM 11. 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: May 20, 2004 ------------ Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: May 20, 2004 ------------ By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: May 20, 2004 ------------ 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 (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, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), 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. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund except as contemplated under the Fund Policy. The Board's Special Committee will instruct the investment adviser on the appropriate course of action. The Policies are designed to promote accountability of a company's management to its shareholders and to align the interests of management with those shareholders. The investment adviser will generally support company management on proposals relating to environmental and social policy issues and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), the investment adviser will review each matter on a case-by-case basis and reserves the right to deviate from the Policies guidelines when it believes the situation warrants such a deviation. The Policy includes voting guidelines for matters relating to, among other things, the election of directors, approval of independent auditors, executive compensation, corporate structure and anti-takeover defenses. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote. In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser's personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 [is/will be] available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission's website at http://www.sec.gov. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not required in this filing. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Effective February 9, 2004, the Governance Committee of the Board of Trustees formalized the procedures by which a Fund's shareholders may recommend nominees to the registrant's Board of Trustees. The Governance Committee shall, when identifying candidates for the position of Independent Trustee, consider any such candidate recommended by a shareholder of a Fund if such recommendation contains sufficient background information concerning the candidate, and is received in a sufficiently timely manner (and in any event no later than the date specified for receipt of shareholder proposals in any applicable proxy statement with respect to a Fund). Shareholders shall be directed to address any such recommendations to the attention of the Governance Committee, c/o the Secretary of the Fund. ITEM 10. 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 changes in the registrant's internal controls over financial reporting during the period that has materially affected, or is reasonably likely to materially affect the registrant's internal control over financial reporting. ITEM 11. 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: May 20, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /S/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: May 20, 2004 By: /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: May 20, 2004 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 (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, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), 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. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund except as contemplated under the Fund Policy. The Board's Special Committee will instruct the investment adviser on the appropriate course of action. The Policies are designed to promote accountability of a company's management to its shareholders and to align the interests of management with those shareholders. The investment adviser will generally support company management on proposals relating to environmental and social policy issues and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), the investment adviser will review each matter on a case-by-case basis and reserves the right to deviate from the Policies guidelines when it believes the situation warrants such a deviation. The Policy includes voting guidelines for matters relating to, among other things, the election of directors, approval of independent auditors, executive compensation, corporate structure and anti-takeover defenses. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote. In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser's personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 [is/will be] available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission's website at http://www.sec.gov. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not required in this filing. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Effective February 9, 2004, the Governance Committee of the Board of Trustees formalized the procedures by which a Fund's shareholders may recommend nominees to the registrant's Board of Trustees. The Governance Committee shall, when identifying candidates for the position of Independent Trustee, consider any such candidate recommended by a shareholder of a Fund if such recommendation contains sufficient background information concerning the candidate, and is received in a sufficiently timely manner (and in any event no later than the date specified for receipt of shareholder proposals in any applicable proxy statement with respect to a Fund). Shareholders shall be directed to address any such recommendations to the attention of the Governance Committee, c/o the Secretary of the Fund. ITEM 10. 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 changes in the registrant's internal controls over financial reporting during the period that has materially affected, or is reasonably likely to materially affect the registrant's internal control over financial reporting. ITEM 11. 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: May 20, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /S/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: May 20, 2004 By: /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: May 20, 2004 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 (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, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), 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. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund except as contemplated under the Fund Policy. The Board's Special Committee will instruct the investment adviser on the appropriate course of action. The Policies are designed to promote accountability of a company's management to its shareholders and to align the interests of management with those shareholders. The investment adviser will generally support company management on proposals relating to environmental and social policy issues and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), the investment adviser will review each matter on a case-by-case basis and reserves the right to deviate from the Policies guidelines when it believes the situation warrants such a deviation. The Policy includes voting guidelines for matters relating to, among other things, the election of directors, approval of independent auditors, executive compensation, corporate structure and anti-takeover defenses. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote. In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser's personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 [is/will be] available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission's website at http://www.sec.gov. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not required in this filing. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Effective February 9, 2004, the Governance Committee of the Board of Trustees formalized the procedures by which a Fund's shareholders may recommend nominees to the registrant's Board of Trustees. The Governance Committee shall, when identifying candidates for the position of Independent Trustee, consider any such candidate recommended by a shareholder of a Fund if such recommendation contains sufficient background information concerning the candidate, and is received in a sufficiently timely manner (and in any event no later than the date specified for receipt of shareholder proposals in any applicable proxy statement with respect to a Fund). Shareholders shall be directed to address any such recommendations to the attention of the Governance Committee, c/o the Secretary of the Fund. ITEM 10. 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 changes in the registrant's internal controls over financial reporting during the period that has materially affected, or is reasonably likely to materially affect the registrant's internal control over financial reporting. ITEM 11. 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: May 20, 2004 ------------ Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor ------------------------------------------- James L. O'Connor Treasurer Date: May 20, 2004 ------------ By: /s/ Thomas J. Fetter -------------------------------------------------- Thomas J. Fetter President Date: May 20, 2004 ------------ 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 (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, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), 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. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund except as contemplated under the Fund Policy. The Board's Special Committee will instruct the investment adviser on the appropriate course of action. The Policies are designed to promote accountability of a company's management to its shareholders and to align the interests of management with those shareholders. The investment adviser will generally support company management on proposals relating to environmental and social policy issues and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), the investment adviser will review each matter on a case-by-case basis and reserves the right to deviate from the Policies guidelines when it believes the situation warrants such a deviation. The Policy includes voting guidelines for matters relating to, among other things, the election of directors, approval of independent auditors, executive compensation, corporate structure and anti-takeover defenses. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote. In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser's personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 [is/will be] available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission's website at http://www.sec.gov. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not required in this filing. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Effective February 9, 2004, the Governance Committee of the Board of Trustees formalized the procedures by which a Fund's shareholders may recommend nominees to the registrant's Board of Trustees. The Governance Committee shall, when identifying candidates for the position of Independent Trustee, consider any such candidate recommended by a shareholder of a Fund if such recommendation contains sufficient background information concerning the candidate, and is received in a sufficiently timely manner (and in any event no later than the date specified for receipt of shareholder proposals in any applicable proxy statement with respect to a Fund). Shareholders shall be directed to address any such recommendations to the attention of the Governance Committee, c/o the Secretary of the Fund. ITEM 10. 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 changes in the registrant's internal controls over financial reporting during the period that has materially affected, or is reasonably likely to materially affect the registrant's internal control over financial reporting. ITEM 11. 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: May 20, 2004 ------------ Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: May 20, 2004 ------------ By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: May 20, 2004 ------------ 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 (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, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), 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. SCHEDULE OF INVESTMENTS Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the "Fund Policy"), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund's investment adviser and adopted the investment adviser's proxy voting policies and procedures (the "Policies") which are described below. The Trustees will review the Fund's proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board of the Fund except as contemplated under the Fund Policy. The Board's Special Committee will instruct the investment adviser on the appropriate course of action. The Policies are designed to promote accountability of a company's management to its shareholders and to align the interests of management with those shareholders. The investment adviser will generally support company management on proposals relating to environmental and social policy issues and on matters regarding the state of organization of the company. On all other matters, the investment adviser will take management's proposals under advisement but will consider each matter in light of the guidelines set forth in the Policies. Except in the instance of routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders (on which the investment adviser will routinely vote with management), the investment adviser will review each matter on a case-by-case basis and reserves the right to deviate from the Policies guidelines when it believes the situation warrants such a deviation. The Policy includes voting guidelines for matters relating to, among other things, the election of directors, approval of independent auditors, executive compensation, corporate structure and anti-takeover defenses. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote. In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund's shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser's personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the investment adviser's general counsel or chief equity investment officer. The general counsel or chief equity investment officer will determine if a conflict exists. If a conflict does exist, the proxy will either be voted strictly in accordance with the Policy or the investment adviser will seek instruction on how to vote from the Board. Effective August 31, 2004, information on how the Fund voted proxies relating to portfolio securities during the 12 month period ended June 30, 2004 [is/will be] available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission's website at http://www.sec.gov. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not required in this filing. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Effective February 9, 2004, the Governance Committee of the Board of Trustees formalized the procedures by which a Fund's shareholders may recommend nominees to the registrant's Board of Trustees. The Governance Committee shall, when identifying candidates for the position of Independent Trustee, consider any such candidate recommended by a shareholder of a Fund if such recommendation contains sufficient background information concerning the candidate, and is received in a sufficiently timely manner (and in any event no later than the date specified for receipt of shareholder proposals in any applicable proxy statement with respect to a Fund). Shareholders shall be directed to address any such recommendations to the attention of the Governance Committee, c/o the Secretary of the Fund. ITEM 10. 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 changes in the registrant's internal controls over financial reporting during the period that has materially affected, or is reasonably likely to materially affect the registrant's internal control over financial reporting. ITEM 11. 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: May 20, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /S/ James L. O'Connor --------------------- James L. O'Connor Treasurer Date: May 20, 2004 By: /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: May 20, 2004 EX-99.CERT 2 a2136070zex-99_cert.txt EX 99.CERT Exhibit 99.cert EXHIBIT 11(a)(2)(i) EATON VANCE INSURED MUNICIPAL BOND FUND II FORM N-CSR CERTIFICATION 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Dated: May 20, 2004 /s/ James L. O'Connor --------------------------- James L. O'Connor Treasurer EXHIBIT 11(a)(2)(ii) EATON VANCE INSURED MUNICIPAL BOND FUND II FORM N-CSR CERTIFICATION 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 20, 2004 /s/ Thomas J. Fetter ---------------------------- Thomas J. Fetter President Exhibit 99.cert EXHIBIT 11(a)(2)(i) EATON VANCE INSURED CALIFORNIA II MUNICIPAL BOND FUND FORM N-CSR CERTIFICATION I, James L. O'Connor, certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured California II 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Dated: May 20, 2004 /S/ James L. O'Connor --------------------- James L. O'Connor Treasurer EXHIBIT 11(a)(2)(ii) EATON VANCE INSURED CALIFORNIA II MUNICIPAL BOND FUND FORM N-CSR CERTIFICATION I, Thomas J. Fetter certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured California II 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 20, 2004 /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Exhibit 99.cert EXHIBIT 11(a)(2)(i) EATON VANCE INSURED FLORIDA MUNICIPAL BOND FUND FORM N-CSR CERTIFICATION 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Dated: May 20, 2004 /s/ James L. O'Connor ---------------------- James L. O'Connor Treasurer EXHIBIT 11(a)(2)(ii) EATON VANCE INSURED FLORIDA MUNICIPAL BOND FUND FORM N-CSR CERTIFICATION 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 20, 2004 /s/Thomas J Fetter ------------------ Thomas J. Fetter President Exhibit 99.cert EXHIBIT 11(a)(2)(i) EATON VANCE INSURED MASSACHUSETTS MUNICIPAL BOND FUND FORM N-CSR CERTIFICATION 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Dated: May 20, 2004 /s/ James L. O'Connor ------------------------------ James L. O'Connor Treasurer EXHIBIT 11(a)(2)(ii) EATON VANCE INSURED MASSACHUSETTS MUNICIPAL BOND FUND FORM N-CSR CERTIFICATION 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 20, 2004 /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Exhibit 99.cert EXHIBIT 11(a)(2)(i) EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND FORM N-CSR CERTIFICATION I, James L. O'Connor, certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Dated: May 20, 2004 /S/ James L. O'Connor --------------------- James L. O'Connor Treasurer EXHIBIT 11(a)(2)(ii) EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND FORM N-CSR CERTIFICATION I, Thomas J. Fetter certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 20, 2004 /S/ Thomas J. Fetter --------------------- Thomas J. Fetter President Exhibit 99.cert EXHIBIT 11(a)(2)(i) EATON VANCE INSURED NEW JERSEY MUNICIPAL BOND FUND FORM N-CSR CERTIFICATION I, James L. O'Connor, certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Dated: May 20, 2004 /S/ James L. O'Connor --------------------- James L. O'Connor Treasurer EXHIBIT 11(a)(2)(ii) EATON VANCE INSURED NEW JERSEY MUNICIPAL BOND FUND FORM N-CSR CERTIFICATION I, Thomas J. Fetter certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 20, 2004 /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President Exhibit 99.cert EXHIBIT 11(a)(2)(i) EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND II FORM N-CSR CERTIFICATION 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Dated: May 20, 2004 /s/ James L. O'Connor ------------------------ James L. O'Connor Treasurer EXHIBIT 11(a)(2)(ii) EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND II FORM N-CSR CERTIFICATION 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 20, 2004 /s/ Thomas J. Fetter ---------------------------- Thomas J. Fetter President Exhibit 99.cert EXHIBIT 11(a)(2)(i) EATON VANCE INSURED OHIO MUNICIPAL BOND FUND FORM N-CSR CERTIFICATION 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Dated: May 20, 2004 /s/ James L. O'Connor --------------------- James L. O'Connor Treasurer EXHIBIT 11(a)(2)(ii) EATON VANCE INSURED OHIO MUNICIPAL BOND FUND FORM N-CSR CERTIFICATION 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 20, 2004 /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Exhibit 99.cert EXHIBIT 11(a)(2)(i) EATON VANCE INSURED PENNSYLVANIA MUNICIPAL BOND FUND FORM N-CSR CERTIFICATION 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Dated: May 20, 2004 /S/ James L. O'Connor --------------------- James L. O'Connor Treasurer EXHIBIT 11(a)(2)(ii) EATON VANCE INSURED PENNSYLVANIA MUNICIPALS BOND FUND FORM N-CSR CERTIFICATION I, Thomas J. Fetter certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured Pennsylvania Municipals 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [omitted]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 20, 2004 /S/ Thomas J. Fetter -------------------- Thomas J. Fetter President EX-99.906CERT 3 a2136070zex-99_906cert.txt EX 99.906CERT Exhibit 99.906.cert FORM N-CSR ITEM 11(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 Semi-Annual Report of the Fund on Form N-CSR for the period ended March 31, 2004 (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: May 20, 2004 ------------ /s/ James L. O'Connor - ---------------------------------- James L. O'Connor Treasurer Date: May 20, 2004 ------------ /s/ Thomas J. Fetter - ---------------------------------- Thomas J. Fetter President Exhibit 99.906.cert FORM N-CSR ITEM 11(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 II Municipal Bond Fund (the "Fund"), that: (a) the Semi-Annual Report of the Fund on Form N-CSR for the period ended March 31, 2004 (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: May 20, 2004 ------------ /S/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: May 20, 2004 ------------ /S/ Thomas J. Fetter - -------------------- Thomas J. Fetter President Exhibit 99.906.cert FORM N-CSR ITEM 11(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 Semi-Annual Report of the Fund on Form N-CSR for the period ended March 31, 2004 (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: May 20, 2004 ------------ /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: May 20, 2004 ------------ /s/ Thomas J. Fetter - -------------------- Thomas J. Fetter President Exhibit 99.906.cert FORM N-CSR ITEM 11(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 Semi-Annual Report of the Fund on Form N-CSR for the period ended March 31, 2004 (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: May 20, 2004 ------------ /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: May 20, 2004 ------------ /s/ Thomas J. Fetter - -------------------- Thomas J. Fetter President Exhibit 99.906.cert FORM N-CSR ITEM 11(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 Semi-Annual Report of the Fund on Form N-CSR for the period ended March 31, 2004 (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: Date: May 20, 2004 ------------------ /S/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: Date: May 20, 2004 ------------------ /S/ Thomas J. Fetter - -------------------- Thomas J. Fetter President Exhibit 99.906.cert FORM N-CSR ITEM 11(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 Semi-Annual Report of the Fund on Form N-CSR for the period ended March 31, 2004 (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: Date: May 20, 2004 ------------------ /S/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: Date: May 20, 2004 ------------------ /S/ Thomas J. Fetter - -------------------- Thomas J. Fetter President Exhibit 99.906.cert FORM N-CSR ITEM 11(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 Semi-Annual Report of the Fund on Form N-CSR for the period ended March 31, 2004 (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: May 20, 2004 ------------ /s/ James L. O'Connor - ------------------------------ James L. O'Connor Treasurer Date: May 20, 2004 ------------ /s/ Thomas J. Fetter - ------------------------------ Thomas J. Fetter President Exhibit 99.906.cert FORM N-CSR ITEM 11(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 Semi-Annual Report of the Fund on Form N-CSR for the period ended March 31, 2004 (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: May 20, 2004 ------------ /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: May 20, 2004 ------------ /s/ Thomas J. Fetter - -------------------- Thomas J. Fetter President Exhibit 99.906 FORM N-CSR ITEM 11(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 Semi-Annual Report of the Fund on Form N-CSR for the period ended March 31, 2004 (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: Date: May 20, 2004 ------------------ /S/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: Date: May 20, 2004 ------------------ /S/ Thomas J. Fetter - -------------------- Thomas J. Fetter President -----END PRIVACY-ENHANCED MESSAGE-----