-----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, Vz49BapIhv64ftVn3GElVVJOEDMq4vrM5C3tfD5s4RpQIxQIDxdx295lRRjvP5KI 1o9DHdUSanLI5wEx1M699w== 0001047469-04-036331.txt : 20041207 0001047469-04-036331.hdr.sgml : 20041207 20041207150928 ACCESSION NUMBER: 0001047469-04-036331 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040930 FILED AS OF DATE: 20041207 DATE AS OF CHANGE: 20041207 EFFECTIVENESS DATE: 20041207 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE INSURED OHIO MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196876 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21226 FILM NUMBER: 041188396 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 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND II CENTRAL INDEX KEY: 0001196875 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21218 FILM NUMBER: 041188397 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 MICHIGAN MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196872 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21224 FILM NUMBER: 041188399 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 MASSACHUSETTS MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196871 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21225 FILM NUMBER: 041188400 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 FLORIDA MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196870 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21222 FILM NUMBER: 041188401 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 CALIFORNIA MUNICIPAL BOND FUND II CENTRAL INDEX KEY: 0001196869 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21217 FILM NUMBER: 041188402 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 PENNSYLVANIA MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196877 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21227 FILM NUMBER: 041188403 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 NEW JERSEY MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0001196874 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21229 FILM NUMBER: 041188398 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 MUNICIPAL BOND FUND II CENTRAL INDEX KEY: 0001196867 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21219 FILM NUMBER: 041188395 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 N-CSR 1 a2148042zn-csr.txt N-CSR 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 September 30, 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 Municipal Bond Fund II ----------------------------------------------------- (Exact Name of registrant as Specified in Charter) The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Address of Principal Executive Offices) Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 ----------------------------------------------------------------------- (Name and Address of Agent for Services) (617) 482-8260 -------------- (registrant's Telephone Number) September 30 ------------ Date of Fiscal Year End September 30, 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 September 30, 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 September 30, 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 September 30, 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 September 30, 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 September 30, 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 September 30, 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 September 30, 2004 ------------------ Date of Reporting Period ITEM 1. REPORTS TO STOCKHOLDERS [EV LOGO] [GRAPHIC IMAGE] ANNUAL REPORT SEPTEMBER 30, 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. Each Fund will file a schedule of its portfolio holdings on Form N-Q with the Securities and Exchange Commission (the "SEC") for the first and third quarters of each fiscal year. Each Fund's Form N-Q will be available on the Eaton Vance website www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC's website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC's public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room). 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 September 30, 2004 LETTER TO SHAREHOLDERS [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter President The municipal bond market consists of a broad array of bond issues, with widely varying features and performance characteristics that may make them appropriate for a specific investment scenario. In this edition of our continuing educational series, we will feature zero coupon bonds - a variety of bond that has seen increasing use by investors over the past 20 years - and discuss why they can provide flexibility in managing a bond portfolio. THE 1980's BROUGHT NEW VARIATIONS TO THE BOND MARKET... Any discussion of zero coupon bonds should start with the term "coupon." Traditionally, bonds were issued in certificate form, with interest coupons attached, which the owner would clip and present for payment. The coupon rate indicates the rate of annual interest the issuer pays to the bondholder. For example, a $1,000 bond with a 5% coupon makes two semiannual interest payments of $25 each. Today, most bonds are issued as "book-entry bonds," registered in the owner's name on the books of the issuer, but not delivered in certificate form. That change has not only replaced the antiquated coupon-clipping system, but also encouraged the development of new types of bonds - including zero coupon bonds, introduced in 1982. ZERO-COUPONS: NO INTEREST PAYMENTS, BUT A PREDICTABLE LUMP-SUM PAYMENT AT MATURITY... Zero coupon bonds do not have coupons attached and do not make regular interest payments. Instead, they are issued at a discount, usually well below par, or face value. As with coupon bonds, the bondholder receives face value if the bond is held to its maturity date. Over time - from its issuance to its maturity - zero coupon bonds accrete to par, meaning that their price appreciates over time to reflect the accrual of "imputed" compound interest. An investor holding a zero coupon bond to maturity receives a lump sum payment from the issuer for face value reflecting the initial investment plus interest that has accrued. Although zero coupon bonds do not pay any interest until they mature, the accrual of "imputed" compound interest is recognized currently. Mutual funds are required to distribute substantially all of their income (including accrued income) annually. A fund may therefore be required to sell securities to obtain cash needed for income distributions. ZERO COUPON BONDS PROVIDE PORTFOLIO MANAGERS ADDITIONAL FLEXIBILITY... For a portfolio manager, zero coupons can play a useful strategic role. Like other bonds, zero coupon bond prices are affected by market conditions, changes in an issuer's underlying fundamentals and fluctuations in interest rates. Because they pay no coupon or periodic interest payments, they typically display more price sensitivity than other bonds in response to changes in interest rates. Therefore, zero coupon bonds can provide more appreciation potential in a declining interest rate environment. Of course, zero coupons display increased DOWNSIDE volatility in the event of an INCREASE in interest rates. Some zero coupon bonds start out as coupon-bearing bonds, which are then deposited with a trustee and subsequently "stripped" of their coupons. New securities are then created from principal and coupon payments. This allows an investor to choose a maturity to match the time when funds will be needed. Moreover, because of their many permutations, zero coupon bonds can help balance income-oriented bonds with performance-oriented zero coupons, providing more versatility in managing a municipal portfolio. Sincerely, /s/ Thomas J. Fetter Thomas J. Fetter President November 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 September 30, 2004 MARKET RECAP The U.S. economy continued to expand in the year ended September 30, 2004, although at a somewhat more moderate rate as the fiscal year drew to a close. One key economic factor was the surge in gasoline and energy prices, which raised fears that inflation could re-emerge. Amid those concerns, bond market performance was less robust in the second half of the year than in the first half. IN AN UNEVEN ECONOMY, SOME SECTORS GENERATED GROWTH... The nation's Gross Domestic Product grew by 3.7% in the third quarter of 2004, following a 2.8% rise in the second quarter. Economic activity was uneven, with some segments slowing, while others grew at varying rates. For example, retail sales slowed in reaction to consumer concerns over inflation and ongoing geo-political events. Auto sales were impacted by higher gas prices, with buyers opting for fuel-efficient smaller vehicles over SUVs and trucks. Interestingly, manufacturing activity grew stronger, driven by rising demand for durable goods and capital equipment. Demand for aerospace equipment, steel products, industrial machinery, and information technology products was especially strong. Non-durable goods manufacturing, tied more closely to consumer spending, weakened significantly. The construction sector followed recent patterns, with residential building on the rise, while commercial activity lagged. HOWEVER ERRATIC, JOB GROWTH HAS GAINED SOME STRENGTH... Meanwhile, job growth continued to puzzle many economists throughout much of the year. Having made significant productivity improvements during the recent economic downturn, many businesses were slow to return to previous employment levels. As a result, job gains during the summer and early fall fell short of expectations. However, later reports brought news of a surge in new employment, with strength in construction areas, as well as in the energy, transportation, health care and service sectors. The nation's unemployment rate fell to 5.4% in September 2004, down from 6.1% a year earlier. [CHART] Municipal bond yields were 98% of Treasury yields 30-Year AAA-rated General Obligation (GO) Bonds* 4.81% Taxable equivalent yield in 35.0% tax bracket 7.40% 30-Year Treasury Bond 4.91%
Principal and interest payments of Treasury securities are guaranteed by the U.S. government. *GO yields are a compilation of a representative variety of general obligations and are not necessarily representative of a Fund's yield. Statistics as of September 30, 2004. Past performance is no guarantee of future results. Source: Bloomberg, L.P. THE FEDERAL RESERVE REMAINED VIGILANT IN LIGHT OF RISING INFLATION... Inflation re-emerged as a concern to investors and to the Federal Reserve. Oil prices soared amid supply concerns, which were exacerbated by the continuing turmoil in the Middle East, hurricanes in the Gulf of Mexico and surging demand from China. Against that backdrop, the Federal Reserve emphasized that it would wage a vigorous fight against inflation. After maintaining a stable interest rate policy for more than a year, the Fed raised its benchmark Federal Funds rate by 25 basis points in June, August and September 2004. Following a strong rally in the first half of the year, the municipal bond market lost some momentum in the second half, as inflation exerted upward pressure on interest rates. For the year ended September 30, 2004, the Lehman Brothers Municipal Bond Index had a total return of 4.60%.* *It is not possible to invest directly in an Index. The Index's total return does not reflect commissions or expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. THE VIEWS EXPRESSED THROUGHOUT THIS REPORT ARE THOSE OF THE VARIOUS PORTFOLIO MANAGERS AND ARE CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER. THESE VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS, AND EATON VANCE DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE INVESTMENT DECISIONS FOR AN EATON VANCE FUND ARE BASED ON MANY FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY EATON VANCE FUND. 3 EATON VANCE INSURED MUNICIPAL BOND FUND II as of September 30, 2004 INVESTMENT UPDATE THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 14.59% for the year ended September 30, 2004. That return was the result of an increase in share price from $14.00 on September 30, 2003 to $14.82 on September 30, 2004 and the reinvestment of $1.001 in regular monthly dividends and $0.158 in capital gain distributions.(1) - - Based on net asset value, the Fund had a total return of 10.00% for the year ended September 30, 2004. That return was the result of an increase in net asset value per share from $14.79 on September 30, 2003 to $15.03 on September 30, 2004, and the reinvestment of all distributions. - - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.60% during the year ended September 30, 2004.(2) - - Based on the most recent dividend and a share price of $14.82, the Fund had a market yield of 6.75% at September 30, 2004.(3) The Fund's market yield is equivalent to a taxable yield of 10.38%.(4) [CHART] RATING DISTRIBUTION(5),(6) By total investments AAA 84.4% AA 3.9% A 10.5% BBB 0.2% Non-Rated 1.0%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF WILLIAM H. AHERN] William H. Ahern Portfolio Manager MANAGEMENT UPDATE - - The U.S. economy continued to expand modestly in 2004, although consumers grew increasingly worried about rising fuel costs. Economic growth was supported primarily by capital spending, as businesses made new investments in computers and machinery. The U.S. jobless rate was 5.4% in September 2004, down from 6.1% a year ago. - - Insured* transportation bonds were the Fund's largest sector weighting at September 30, 2004. These bonds financed the construction and upgrading of major transportation projects, including those for highways and turnpike authorities, bridges and tunnels, rapid transit, skyway and monorail construction. - - Insured* general obligations (GOs) were a major focus of the Fund. In an uneven recovery, the revenue outlook for states and municipalities has remained under careful scrutiny. Insured* GOs provided a dependable revenue stream, as well as very high quality. - - Insured* water revenue bonds were a large commitment of the Fund. Essential service revenues have tended to be less affected by the overall economy. Water issues have constituted a large portion of municipal issuance in recent years, as states have addressed the issues of growth and aging infrastructure. - - At September 30, 2004, the Fund had leverage in the amount of approximately 37% of the Fund's total assets. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income, but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL AND ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN NET ASSET VALUE OR SHARE PRICE (AS APPLICABLE) WITH ALL DISTRIBUTIONS REINVESTED. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, 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 THE QUOTED RETURN. FUND INFORMATION as of September 30, 2004 PERFORMANCE(7) Average Annual Total Return (by share price, American Stock Exchange) One Year 14.59% Life of Fund (11/29/02) 9.23 Average Annual Total Return (by net asset value) One Year 10.00% Life of Fund (11/29/02) 10.07
(1) A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO FEDERAL INCOME TAX AND/OR ALTERNATIVE MINIMUM TAX; INCOME MAY BE SUBJECT TO STATE INCOME TAX. (2) IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THE INDEX'S TOTAL RETURN DOES NOT REFLECT THE COMMISSIONS OR EXPENSES THAT WOULD HAVE BEEN INCURRED IF AN INVESTOR INDIVIDUALLY PURCHASED OR SOLD THE SECURITIES REPRESENTED IN THE INDEX. (3) 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. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 35.00% FEDERAL INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE FUND'S CURRENT OR FUTURE INVESTMENTS. (6) RATING DISTRIBUTION IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE FUND. (7) 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. 4 EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND II as of September 30, 2004 INVESTMENT UPDATE THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 13.27% for the year ended September 30, 2004. That return was the result of an increase in share price from $13.80 on September 30, 2003 to $14.58 on September 30, 2004 and the reinvestment of $0.948 in regular monthly dividends and $0.060 in capital gain distributions.(1) - - Based on net asset value, the Fund had a total return of 6.84% for the year ended September 30, 2004. That return was the result of a decrease in net asset value per share from $14.56 on September 30, 2003 to $14.51 on September 30, 2004, and the reinvestment of all distributions. - - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.60% during the year ended September 30, 2004.(2) - - Based on the most recent dividend and a share price of $14.58, the Fund had a market yield of 6.50% at September 30, 2004.(3) The Fund's market yield is equivalent to a taxable yield of 11.03%.(4) [CHART] RATING DISTRIBUTION(5),(6) By total investments AAA 93.4% AA 2.9% A 3.7%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT UPDATE - - While the California economy managed to halt its job losses in 2004, the state continued to lag the nation in new job creation. Although the state's information technology area was slow to recover, business services, energy and construction sectors were strong. The state's September 2004 jobless rate was 5.9%, down from 6.7% a year ago. - - Insured* general obligations (GOs) constituted the Fund's largest sector weighting at September 30, 2004. The Fund's investments focused primarily on local school district bonds. Given the slow recovery of the California economy, insured* GOs provided an added measure of security. - - Insured* lease revenue/certificates of participation (COPs) constituted significant investments. COPs are an alternative financing tool employed to finance educational facilities, water facilities and public improvements. - - Insured* sewer revenue bonds were large investments for the Fund. With California facing critical water shortages, large communities such as Los Angeles and the Bay Area play a major role in developing more efficient water and wastewater treatment facilities. - - At September 30, 2004, the Fund had leverage in the amount of approximately 38% of the Fund's total assets. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income, but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL AND ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN NET ASSET VALUE OR SHARE PRICE (AS APPLICABLE) WITH ALL DISTRIBUTIONS REINVESTED. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, 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 THE QUOTED RETURN. FUND INFORMATION as of September 30, 2004 PERFORMANCE(7) Average Annual Total Return (by share price, American Stock Exchange) One Year 13.27% Life of Fund (11/29/02) 7.62 Average Annual Total Return (by net asset value) One Year 6.84% Life of Fund (11/29/02) 7.34
(1) A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO FEDERAL INCOME TAX AND/OR ALTERNATIVE MINIMUM TAX; INCOME MAY BE SUBJECT TO STATE INCOME TAX. (2) IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THE INDEX'S TOTAL RETURN DOES NOT REFLECT THE COMMISSIONS OR EXPENSES THAT WOULD HAVE BEEN INCURRED IF AN INVESTOR INDIVIDUALLY PURCHASED OR SOLD THE SECURITIES REPRESENTED IN THE INDEX. (3) 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. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 41.05% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE FUND'S CURRENT OR FUTURE INVESTMENTS. (6) RATING DISTRIBUTION IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE FUND. (7) 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. 5 EATON VANCE INSURED FLORIDA MUNICIPAL BOND FUND as of September 30, 2004 INVESTMENT UPDATE THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 12.29% for the year ended September 30, 2004. That return was the result of an increase in share price from $14.10 on September 30, 2003 to $14.75 on September 30, 2004 and the reinvestment of $0.930 in regular monthly dividends and $0.080 in capital gain distributions.(1) - - Based on net asset value, the Fund had a total return of 7.12% for the year ended September 30, 2004. That return was the result of a decrease in net asset value per share from $14.55 on September 30, 2003 to $14.52 on September 30, 2004, and the reinvestment of all distributions. - - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.60% during the year ended September 30, 2004.(2) - - Based on the most recent dividend and a share price of $14.75, the Fund had a market yield of 6.31% at September 30, 2004.(3) The Fund's market yield is equivalent to a taxable yield of 9.71%.(4) [CHART] RATING DISTRIBUTION(5),(6) By total investments AAA 92.0% AA 5.2% A 2.8%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF CRAIG BRANDON] Craig Brandon Portfolio Manager MANAGEMENT UPDATE - - Florida's economic recovery has remained among the strongest in the nation. Residential building has fueled a robust construction sector, while tourism - despite the disruptions caused by a very active hurricane season - has continued to recover. The state's jobless rate was 4.5% in September 2004, down from 5.1% a year ago. - - Insured* special tax revenue bonds were the Fund's largest sector weightings at September 30, 2004. These bonds are secured by the levy of special assessments - as opposed to property taxes - by local governments. The levies help defray costs on improvements or infrastructures that benefit local property owners. - - Within the insured* hospital sector, the Fund focused its investments on institutions with lean operations, sound finances and in-demand specialties, such as cancer and cardiac care and children's health services. - - Insured* general obligations (GOs) were a significant investment. In a strong state economic recovery, Florida municipalities have seen a rebound in tax receipts. - - At September 30, 2004, the Fund had leverage in the amount of approximately 38% of the Fund's total assets. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income, but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL AND ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN NET ASSET VALUE OR SHARE PRICE (AS APPLICABLE) WITH ALL DISTRIBUTIONS REINVESTED. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, 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 THE QUOTED RETURN. FUND INFORMATION as of September 30, 2004 PERFORMANCE(7) Average Annual Total Return (by share price, American Stock Exchange) One Year 12.29% Life of Fund (11/29/02) 8.27 Average Annual Total Return (by net asset value) One Year 7.12% Life of Fund (11/29/02) 7.35
(1) A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO FEDERAL INCOME TAX AND/OR ALTERNATIVE MINIMUM TAX AND STATE INTANGIBLES TAX. (2) IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THE INDEX'S TOTAL RETURN DOES NOT REFLECT THE COMMISSIONS OR EXPENSES THAT WOULD HAVE BEEN INCURRED IF AN INVESTOR INDIVIDUALLY PURCHASED OR SOLD THE SECURITIES REPRESENTED IN THE INDEX. (3) 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. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 35.00% COMBINED FEDERAL AND STATE INTANGIBLES TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE FUND'S CURRENT OR FUTURE INVESTMENTS. (6) RATING DISTRIBUTION IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE FUND. (7) 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. 6 EATON VANCE INSURED MASSACHUSETTS MUNICIPAL BOND FUND as of September 30, 2004 INVESTMENT UPDATE THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 16.66% for the year ended September 30, 2004. That return was the result of an increase in share price from $14.45 on September 30, 2003 to $15.57 on September 30, 2004 and the reinvestment of $0.948 in regular monthly dividends and $0.225 in capital gain distributions.(1) - - Based on net asset value, the Fund had a total return of 9.74% for the year ended September 30, 2004. That return was the result of an increase in net asset value per share from $14.67 on September 30, 2003 to $14.87 on September 30, 2004, and the reinvestment of all distributions. - - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.60% during the year ended September 30, 2004.(2) - - Based on the most recent dividend and a share price of $15.57, the Fund had a market yield of 6.09% at September 30, 2004.(3) The Fund's market yield is equivalent to a taxable yield of 9.89%.(4) [CHART] RATING DISTRIBUTION(5),(6) By total investments AAA 84.7% AA 5.2% A 7.3% BBB 2.8%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF ROBERT B. MACINTOSH] Robert B. MacIntosh Portfolio Manager MANAGEMENT UPDATE - - The Massachusetts economy continued to improve in 2004, although job growth trailed the national economy. Construction activity was strong, especially in the residential segment. The state's financial sector reflected the recovery of the financial markets. The state's September 2004 jobless rate was 4.6%, down from 5.9% a year ago and below the national rate. - - Insured* private and public education bonds were among the Fund's largest sector weighting at September 30, 2004, including some of Massachusetts's finest universities. Historically, these institutions have tended to enjoy strong applicant demand and stable revenues, irrespective of the economic environment. - - Insured general obligations (GOs)* remained a significant focus for the Fund. Secured by the Commonwealth's various taxing powers - or, for local issuers, by local property taxes - these bonds are deemed the most secure of all municipal debt. - - Insured* lease revenue/certificates of participation (COPs) were major Fund holdings. These are bonds whose principal and interest are payable from rental payments from a lessee, often drawn from the earnings of an enterprise or taxes levied by the lessee. - - At September 30, 2004, the Fund had leverage in the amount of approximately 37% of the Fund's total assets. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income, but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL AND ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN NET ASSET VALUE OR SHARE PRICE (AS APPLICABLE) WITH ALL DISTRIBUTIONS REINVESTED. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, 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 THE QUOTED RETURN. FUND INFORMATION as of September 30, 2004 PERFORMANCE(7) Average Annual Total Return (by share price, American Stock Exchange) One Year 16.66% Life of Fund (11/29/02) 12.01 Average Annual Total Return (by net asset value) One Year 9.74% Life of Fund (11/29/02) 9.24
(1) A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO FEDERAL INCOME TAX AND/OR ALTERNATIVE MINIMUM TAX; INCOME MAY BE SUBJECT TO STATE INCOME TAX. (2) IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THE INDEX'S TOTAL RETURN DOES NOT REFLECT THE COMMISSIONS OR EXPENSES THAT WOULD HAVE BEEN INCURRED IF AN INVESTOR INDIVIDUALLY PURCHASED OR SOLD THE SECURITIES REPRESENTED IN THE INDEX. (3) 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. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 38.45% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE FUND'S CURRENT OR FUTURE INVESTMENTS. (6) RATING DISTRIBUTION IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE FUND. (7) 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. 7 EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND as of September 30, 2004 INVESTMENT UPDATE THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 14.60% for the year ended September 30, 2004. That return was the result of an increase in share price from $14.41 on September 30, 2003 to $15.49 on September 30, 2004 and the reinvestment of $0.948 in regular monthly dividends.(1) - - Based on net asset value, the Fund had a total return of 8.96% for the year ended September 30, 2004. That return was the result of an increase in net asset value per share from $14.52 on September 30, 2003 to $14.84 on September 30, 2004, and the reinvestment of all distributions. - - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.60% during the year ended September 30, 2004.(2) - - Based on the most recent dividend and a share price of $15.49, the Fund had a market yield of 6.12% at September 30, 2004.(3) The Fund's market yield is equivalent to a taxable yield of 9.80%.(4) [CHART] RATING DISTRIBUTION(5),(6) By total investments AAA 81.9% AA 4.4% A 13.7%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF WILLIAM H. AHERN] William H. Ahern Portfolio Manager MANAGEMENT UPDATE - - Michigan's economy saw a weak recovery in 2004, with employment growth among the slowest of the 50 states. Manufacturing continued to shed jobs, despite new sales incentives in the key auto sector, while government jobs declined amid budgetary concerns. The state's September 2004 jobless rate was 6.8%, down from 7.6% a year ago. - - Insured* general obligations (GOs) constituted the Fund's largest sector weighting at September 30, 2004 and provided a high-quality investment in a still-recovering economy. The Fund's investments were focused on school district and local board of education issues, which typically have fairly stable revenues. - - In a highly competitive hospital sector, the Fund remained very selective. Management emphasized insured* bonds of institutions it believes have a competitive advantage due to marketable health care services and underlying financial strength. - - Insured* special tax revenue bonds were significant investments. Secured by the levy of special assessments, the bonds helped finance improvements that benefited local property owners. - - At September 30, 2004, the Fund had leverage in the amount of approximately 38% of the Fund's total assets. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income, but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL AND ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN NET ASSET VALUE OR SHARE PRICE (AS APPLICABLE) WITH ALL DISTRIBUTIONS REINVESTED. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, 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 THE QUOTED RETURN. FUND INFORMATION as of September 30, 2004 PERFORMANCE(7) Average Annual Total Return (by share price, American Stock Exchange) One Year 14.60% Life of Fund (11/29/02) 10.76 Average Annual Total Return (by net asset value) One Year 8.96% Life of Fund (11/29/02) 8.21
(1) A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO FEDERAL INCOME TAX AND/OR ALTERNATIVE MINIMUM TAX; INCOME MAY BE SUBJECT TO STATE INCOME TAX. (2) IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THE INDEX'S TOTAL RETURN DOES NOT REFLECT THE COMMISSIONS OR EXPENSES THAT WOULD HAVE BEEN INCURRED IF AN INVESTOR INDIVIDUALLY PURCHASED OR SOLD THE SECURITIES REPRESENTED IN THE INDEX. (3) 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. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 37.54% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE FUND'S CURRENT OR FUTURE INVESTMENTS. (6) RATING DISTRIBUTION IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE FUND. (7) 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. 8 EATON VANCE INSURED NEW JERSEY MUNICIPAL BOND FUND as of September 30, 2004 INVESTMENT UPDATE THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 15.37% for the year ended September 30, 2004. That return was the result of an increase in share price from $14.52 on September 30, 2003 to $15.49 on September 30, 2004 and the reinvestment of $0.960 in regular monthly dividends and $0.206 in capital gain distributions.(1) - - Based on net asset value, the Fund had a total return of 9.83% for the year ended September 30, 2004. That return was the result of an increase in net asset value per share from $14.76 on September 30, 2003 to $14.99 on September 30, 2004, and the reinvestment of all distributions. - - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.60% during the year ended September 30, 2004.(2) - - Based on the most recent dividend and a share price of $15.49, the Fund had a market yield of 6.20% at September 30, 2004.(3) The Fund's market yield is equivalent to a taxable yield of 10.48%.(4) [CHART] RATING DISTRIBUTION(5),(6) By total investments AAA 85.1% AA 6.4% A 3.6% BBB 4.9%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF ROBERT B. MACINTOSH] Robert B. MacIntosh Portfolio Manager MANAGEMENT UPDATE - - The New Jersey economy continued to expand in 2004, with new employment generated across the state. Job growth exceeded the national rate, with the strongest areas in construction, health care, state and local government and business services. The state's September 2004 jobless rate was 4.8%, down from 5.8% a year ago. - - Insured* public education bonds were the Fund's largest sector weighting at September 30, 2004, and generally enjoyed stable enrollment and revenues. The Fund's investments included bonds for the state university system, a community college and the state's medical and dentistry school. - - Insured* transportation bonds were major components of the Fund. Investments included bonds for river authorities, port facilities and regional transportation authorities, which are key elements of New Jersey's economic infrastructure. - - Insured* general obligations bonds represented a significant investment for the Fund. With a focus on issuers management believed likely to weather a still uncertain economic outlook, the Fund's holdings were investments of high quality and liquidity. - - At September 30, 2004, the Fund had leverage in the amount of approximately 37% of the Fund's total assets. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income, but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL AND ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN NET ASSET VALUE OR SHARE PRICE (AS APPLICABLE) WITH ALL DISTRIBUTIONS REINVESTED. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, 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 THE QUOTED RETURN. FUND INFORMATION as of September 30, 2004 PERFORMANCE(7) Average Annual Total Return (by share price, American Stock Exchange) One Year 15.37% Life of Fund (11/29/02) 11.63 Average Annual Total Return (by net asset value) One Year 9.83% Life of Fund (11/29/02) 9.66
(1) A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO FEDERAL INCOME TAX AND/OR ALTERNATIVE MINIMUM TAX; INCOME MAY BE SUBJECT TO STATE INCOME TAX. (2) IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THE INDEX'S TOTAL RETURN DOES NOT REFLECT THE COMMISSIONS OR EXPENSES THAT WOULD HAVE BEEN INCURRED IF AN INVESTOR INDIVIDUALLY PURCHASED OR SOLD THE SECURITIES REPRESENTED IN THE INDEX. (3) 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. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 40.83% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE FUND'S CURRENT OR FUTURE INVESTMENTS. (6) RATING DISTRIBUTION IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE FUND. (7) 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. 9 EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND II as of September 30, 2004 INVESTMENT UPDATE THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 14.39% for the year ended September 30, 2004. That return was the result of an increase in share price from $13.71 on September 30, 2003 to $14.46 on September 30, 2004 and the reinvestment of $0.963 in regular monthly dividends and $0.221 in capital gain distributions.(1) - - Based on net asset value, the Fund had a total return of 8.75% for the year ended September 30, 2004. That return was the result of an increase in net asset value per share from $14.87 on September 30, 2003 to $14.91 on September 30, 2004, and the reinvestment of all distributions. - - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.60% during the year ended September 30, 2004.(2) - - Based on the most recent dividend and a share price of $14.46, the Fund had a market yield of 6.66% at September 30, 2004.(3) The Fund's market yield is equivalent to a taxable yield of 11.10%.(4) [CHART] RATING DISTRIBUTION(5),(6) By total investments AAA 84.5% AA 6.9% A 3.8% BBB 3.0% Non-Rated 1.8%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT UPDATE - - In 2004, the New York economy registered its strongest growth since the 2001 recession. The state saw a significant upturn in key sectors, such as business services, information, technology and continued growth in health care, education and tourism. These areas offset job losses in manufacturing, banking and government. The state's September 2004 jobless rate was 5.5%, down from 6.4% a year ago. - - Insured* transportation bonds were the Fund's largest weighting at September 30, 2004. Holdings included issues for toll bridges, mass transit and port authorities, which have increased their investments to meet the New York area's growth and security needs. - - Insured* private education bonds were a significant focus of the Fund, with an emphasis on dormitory issues. These bonds provides financing for the construction and expansion of dormitories, classrooms and lab facilities for public and private universities throughout the state. - - Insured* water and sewer bonds represented a major investment. Many New York communities have needed to modernize their water facilities. Increased issuance of bonds to finance these projects has provided the Fund with income opportunities. - - At September 30, 2004, the Fund had leverage in the amount of approximately 37% of the Fund's total assets. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income, but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL AND ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN NET ASSET VALUE OR SHARE PRICE (AS APPLICABLE) WITH ALL DISTRIBUTIONS REINVESTED. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, 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 THE QUOTED RETURN. FUND INFORMATION as of September 30, 2004 PERFORMANCE(7) Average Annual Total Return (by share price, American Stock Exchange) One Year 14.39% Life of Fund (11/29/02) 7.80 Average Annual Total Return (by net asset value) One Year 8.75% Life of Fund (11/29/02) 9.61
(1) A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO FEDERAL INCOME TAX AND/OR ALTERNATIVE MINIMUM TAX; INCOME MAY BE SUBJECT TO STATE INCOME TAX. (2) IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THE INDEX'S TOTAL RETURN DOES NOT REFLECT THE COMMISSIONS OR EXPENSES THAT WOULD HAVE BEEN INCURRED IF AN INVESTOR INDIVIDUALLY PURCHASED OR SOLD THE SECURITIES REPRESENTED IN THE INDEX. (3) 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. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 40.01% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE FUND'S CURRENT OR FUTURE INVESTMENTS. (6) RATING DISTRIBUTION IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE FUND. (7) 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. 10 EATON VANCE INSURED OHIO MUNICIPAL BOND FUND as of September 30, 2004 INVESTMENT UPDATE THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 12.49% for the year ended September 30, 2004. That return was the result of an increase in share price from $14.43 on September 30, 2003 to $15.20 on September 30, 2004 and the reinvestment of $0.930 in regular monthly dividends and $0.033 in capital gain distributions.(1) - - Based on net asset value, the Fund had a total return of 6.94% for the year ended September 30, 2004. That return was the result of an increase in net asset value per share from $14.62 on September 30, 2003 to $14.64 on September 30, 2004, and the reinvestment of all distributions. - - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.60% during the year ended September 30, 2004.(2) - - Based on the most recent dividend and a share price of $15.20, the Fund had a market yield of 6.12% at September 30, 2004.(3) The Fund's market yield is equivalent to a taxable yield of 10.18%.(4) [CHART] RATING DISTRIBUTION(5),(6) By total investments AAA 82.8% AA 6.1% A 5.3% BBB 2.6% Non-Rated 3.2%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF THOMAS J. FETTER] Thomas J. Fetter Portfolio Manager MANAGEMENT UPDATE - - Ohio's economy continued to stabilize in 2004, as the pace of job loss eased significantly. While the long-troubled manufacturing sector contracted further, the health care and educational sectors remained a strong source of new job creation. The state's September 2004 jobless rate was 6.0%, down slightly from 6.1% a year ago. - - Insured* general obligations (GOs) were the Fund's largest sector weighting at September 30, 2004, a high-quality investment in a still-recovering economy. The Fund's investments were focused on school district and local board of education issues, which typically had stable revenues, a characteristic valued by investors. - - Insured* public education bonds represented the second largest weighting within the Fund. Investments included universities whose stable tuition and fee income have provided some insulation in an uncertain economic climate. - - Insured* special tax revenue bonds provided an attractive income stream. Investments included issues for Hamilton County and Puerto Rico, providing issuers added flexibility in financing infrastructure-related projects. - - At September 30, 2004, the Fund had leverage in the amount of approximately 37% of the Fund's total assets. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income, but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL AND ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN NET ASSET VALUE OR SHARE PRICE (AS APPLICABLE) WITH ALL DISTRIBUTIONS REINVESTED. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, 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 THE QUOTED RETURN. FUND INFORMATION as of September 30, 2004 PERFORMANCE(7) Average Annual Total Return (by share price, American Stock Exchange) One Year 12.49% Life of Fund (11/29/02) 9.73 Average Annual Total Return (by net asset value) One Year 6.94% Life of Fund (11/29/02) 7.51
(1) A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO FEDERAL INCOME TAX AND/OR ALTERNATIVE MINIMUM TAX; INCOME MAY BE SUBJECT TO STATE INCOME TAX. (2) IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THE INDEX'S TOTAL RETURN DOES NOT REFLECT THE COMMISSIONS OR EXPENSES THAT WOULD HAVE BEEN INCURRED IF AN INVESTOR INDIVIDUALLY PURCHASED OR SOLD THE SECURITIES REPRESENTED IN THE INDEX. (3) 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. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 39.88% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE FUND'S CURRENT OR FUTURE INVESTMENTS. (6) RATING DISTRIBUTION IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE FUND. (7) 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. 11 EATON VANCE INSURED PENNSYLVANIA MUNICIPAL BOND FUND as of September 30, 2004 INVESTMENT UPDATE THE FUND - - Based on share price (traded on the American Stock Exchange), the Fund had a total return of 12.57% for the year ended September 30, 2004. That return was the result of an increase in share price from $14.33 on September 30, 2003 to $14.98 on September 30, 2004 and the reinvestment of $0.937 in regular monthly dividends and $0.140 in capital gain distributions.(1) - - Based on net asset value, the Fund had a total return of 6.43% for the year ended September 30, 2004. That return was the result of a decrease in net asset value per share from $14.58 on September 30, 2003 to $14.41 on September 30, 2004, and the reinvestment of all distributions. - - In comparison, the Lehman Brothers Municipal Bond Index had a total return of 4.60% during the year ended September 30, 2004.(2) - - Based on the most recent dividend and a share price of $14.98, the Fund had a market yield of 6.26% at September 30, 2004.(3) The Fund's market yield is equivalent to a taxable yield of 9.94%.(4) [CHART] RATING DISTRIBUTION(5),(6) By total investments AAA 91.1% A 8.4% BBB 0.5%
* Private insurance does not decrease the risk of loss of principal associated with this investment. [PHOTO OF CYNTHIA J. CLEMSON] Cynthia J. Clemson Portfolio Manager MANAGEMENT UPDATE - - Pennsylvania's job growth turned positive in 2004, following three years of job losses. Employment gains were spread across a range of industries, including retail, business services, education, health care, leisure and tourism. The Commonwealth's September 2004 jobless rate was 5.3%, down from 5.4% a year ago. - - Insured* general obligations (GOs) were the Fund's largest sector weighting at September 30, 2004. With a slow recovery holding down tax revenue growth, the Fund emphasized communities and school districts that management deemed to have stable property values and reliable revenue sources. - - Insured* transportation bonds were prominent in the Fund. Transportation plays a key role in Pennsylvania's manufacturing-based economy. Investments included issues for highways, turnpikes and port authorities. - - Insured* private education bonds were significant holdings. These investments provided quality investments from well-regarded issuers and included issues from private universities, a vocational institution and a private preparatory school. - - At September 30, 2004, the Fund had leverage in the amount of approximately 38% of the Fund's total assets. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income, but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL AND ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN NET ASSET VALUE OR SHARE PRICE (AS APPLICABLE) WITH ALL DISTRIBUTIONS REINVESTED. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, 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 THE QUOTED RETURN. FUND INFORMATION as of September 30, 2004 PERFORMANCE(7) Average Annual Total Return (by share price, American Stock Exchange) One Year 12.57% Life of Fund (11/29/02) 9.40 Average Annual Total Return (by net asset value) One Year 6.43% Life of Fund (11/29/02) 7.12
(1) A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO FEDERAL INCOME TAX AND/OR ALTERNATIVE MINIMUM TAX; INCOME MAY BE SUBJECT TO STATE INCOME TAX. (2) IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THE INDEX'S TOTAL RETURN DOES NOT REFLECT THE COMMISSIONS OR EXPENSES THAT WOULD HAVE BEEN INCURRED IF AN INVESTOR INDIVIDUALLY PURCHASED OR SOLD THE SECURITIES REPRESENTED IN THE INDEX. (3) 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. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM 37.00% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF THE FUND'S CURRENT OR FUTURE INVESTMENTS. (6) RATING DISTRIBUTION IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL INVESTMENTS OF THE FUND. (7) 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. 12 INSURED MUNICIPAL BOND FUND II as of September 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 157.2%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 1.6% $ 1,600 Cohasset, MN, PCR, (Allete, Inc.), 4.95%, 7/1/22 $ 1,621,520 750 Minnesota Municipal Power Agency, 5.00%, 10/1/34 752,520 - ----------------------------------------------------------------------------------------------------------- $ 2,374,040 - ----------------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 7.4% $ 4,500 California, 5.25%, 4/1/30 $ 4,627,755 2,215 California, 5.50%, 11/1/33 2,348,919 4,000 New York City, NY, 5.25%, 1/15/33 4,125,760 - ----------------------------------------------------------------------------------------------------------- $ 11,102,434 - ----------------------------------------------------------------------------------------------------------- HOSPITAL -- 5.4% $ 380 Cuyahoga County, OH, (Cleveland Clinic Health System), 5.50%, 1/1/29 $ 392,624 500 Hawaii Pacific Health, 5.60%, 7/1/33 506,335 1,000 Highlands County, FL, Health Facilities Authority, (Adventist Health System), 5.375%, 11/15/35 1,026,040 1,500 Lehigh County, PA, General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32 1,507,215 4,500 South Miami, FL, Health Facility Authority, (Baptist Health), 5.25%, 11/15/33 4,589,460 - ----------------------------------------------------------------------------------------------------------- $ 8,021,674 - ----------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 11.4% $ 2,500 Burlington, KS, PCR, (Kansas Gas & Electric Co.), (MBIA), 5.30%, 6/1/31 $ 2,640,200 22,685 Chelan County, WA, Public Utility District No. 1, (Columbia River), (MBIA), 0.00%, 6/1/23 8,875,733 3,900 Jea, FL, Electric System, (FSA), 5.00%, 10/1/34 3,938,649 1,500 Municipal Energy Agency, NE, (Power Supply System), (FSA), 5.00%, 4/1/36 1,530,510 - ----------------------------------------------------------------------------------------------------------- $ 16,985,092 - ----------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 21.1% $ 1,600 Alvin, TX, Independent School District, (MBIA), 3.25%, 2/15/27 $ 1,245,391 2,550 Butler County, KS, Unified School District No. 394, (FSA), 3.50%, 9/1/24 2,179,128 1,640 California, (XLCA), Variable Rate, 10/1/28(1)(2) 1,762,246 1,515 Chicago, IL, (MBIA), 5.00%, 1/1/42 1,523,529 10,000 Chicago, IL, Board of Education, (FGIC), 0.00%, 12/1/23 3,851,300 2,000 Desert Sands, CA, Unified School District, (Election of 2001), (FSA), 5.00%, 6/1/24 2,089,560 $ 5,830 King County, WA, (MBIA), 5.25%, 1/1/34 $ 6,046,818 2,080 Philadelphia, PA, (FSA), Variable Rate, 9/15/31(1)(2) 2,177,885 1,400 Phoenix, AZ, (AMBAC), 3.00%, 7/1/28 1,056,566 5,490 Port Orange, FL, Capital Improvements, (FGIC), 5.00%, 10/1/35 5,612,921 10,000 Washington, (Motor Vehicle Fuel), (MBIA), 0.00%, 12/1/23 3,851,300 - ----------------------------------------------------------------------------------------------------------- $ 31,396,644 - ----------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 2.5% $ 3,000 Maryland HEFA, (Medlantic/Helix Issue), (FSA), Variable Rate, 8/15/38(1)(2) $ 3,697,860 - ----------------------------------------------------------------------------------------------------------- $ 3,697,860 - ----------------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 2.9% $ 4,250 Massachusetts Development Finance Agency, (MBIA), 5.125%, 2/1/34 $ 4,354,635 - ----------------------------------------------------------------------------------------------------------- $ 4,354,635 - ----------------------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 3.8% $ 2,500 Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59 $ 3,022,225 2,500 Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33 2,596,650 - ----------------------------------------------------------------------------------------------------------- $ 5,618,875 - ----------------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 7.8% $ 3,500 College of Charleston, SC, Academic and Administrative Facilities, (XLCA), 5.125%, 4/1/30 $ 3,609,690 5,335 University of California, (AMBAC), 5.00%, 9/1/27 5,452,103 2,500 University of Massachusetts Building Authority, (AMBAC), 5.25%, 11/1/29 2,635,025 - ----------------------------------------------------------------------------------------------------------- $ 11,696,818 - ----------------------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 1.7% $ 2,575 Tacoma, WA, Sewer Revenue, (FGIC), 5.00%, 12/1/31 $ 2,611,230 - ----------------------------------------------------------------------------------------------------------- $ 2,611,230 - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 7.9% $ 4,000 Metropolitan Pier and Exposition Authority, (McCormick Place Expansion), IL, (MBIA), 5.25%, 6/15/42 $ 4,142,440
See notes to financial statements 13
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE (CONTINUED) $ 2,165 San Jose, CA, Redevelopment Agency Tax, (MBIA), Variable Rate, 8/1/32(1)(2) $ 2,242,940 5,325 Utah Transportation Authority Sales Tax, (FSA), 5.00%, 6/15/32 5,410,626 - ----------------------------------------------------------------------------------------------------------- $ 11,796,006 - ----------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 38.4% $ 4,000 Chicago, IL, Transportation, (Skywalk), (AMBAC), 5.25%, 1/1/31 $ 4,162,280 11,900 E-470 Public Highway Authority, CO, (MBIA), 0.00%, 9/1/22 4,980,745 12,390 E-470 Public Highway Authority, CO, (MBIA), 0.00%, 9/1/24 4,517,270 2,345 Massachusetts Turnpike Authority, Metropolitan Highway System, (AMBAC), 5.00%, 1/1/39 2,362,588 5,000 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.00%, 1/1/37 5,042,450 3,835 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), Variable Rate, 1/1/37(1)(2) 3,932,754 13,885 Nevada Department of Business and Industry, (Las Vegas Monorail-1st Tier), (AMBAC), 0.00%, 1/1/20 6,703,956 5,000 South Carolina Transportation Infrastructure, (AMBAC), 5.25%, 10/1/31 5,228,300 10,000 Texas Turnpike Authority, (AMBAC), 5.00%, 8/15/42 10,041,400 10,000 Triborough Bridge and Tunnel Authority, NY, (MBIA), 5.00%, 11/15/32 10,210,300 - ----------------------------------------------------------------------------------------------------------- $ 57,182,043 - ----------------------------------------------------------------------------------------------------------- INSURED-UTILITIES -- 8.5% $ 6,500 Los Angeles, CA, Department of Water and Power, (FGIC), 5.00%, 7/1/43 $ 6,550,180 6,000 Philadelphia, PA, Gas Works Revenue, (FSA), 5.00%, 8/1/32 6,119,400 - ----------------------------------------------------------------------------------------------------------- $ 12,669,580 - ----------------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 12.7% $ 2,240 Atlanta, GA, Water and Sewer, (FGIC), 5.00%, 11/1/38(3) $ 2,265,334 4,895 Atlanta, GA, Water and Wastewater, (MBIA), 5.00%, 11/1/39 4,950,216 8,155 Birmingham, AL, Waterworks and Sewer Board, (MBIA), 5.00%, 1/1/37 8,295,021 1,950 New York City, NY, Municipal Water Finance Authority, (Water and Sewer System), (AMBAC), 5.00%, 6/15/38 1,985,003 1,275 Pittsburgh, PA, Water and Sewer Authority, (AMBAC), Variable Rate, 12/1/27(1)(2) 1,410,061 - ----------------------------------------------------------------------------------------------------------- $ 18,905,635 - ----------------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 14.1% $ 2,330 Contra Costa, CA, Water District, (FSA), Variable Rate, 10/1/32(1)(2) $ 2,476,976 3,450 Detroit, MI, Water Supply System, (MBIA), Variable Rate, 7/1/34(1)(2) 3,647,651 7,000 Metropolitan Water District, CA, (FGIC), 5.00%, 10/1/36 7,155,260 2,870 San Antonio, TX, Water Revenue, (FGIC), 5.00%, 5/15/23 2,993,496 4,610 Texas Southmost Regional Water Authority, (MBIA), 5.00%, 9/1/32 4,675,416 - ----------------------------------------------------------------------------------------------------------- $ 20,948,799 - ----------------------------------------------------------------------------------------------------------- LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 3.1% $ 4,500 Metropolitan Transportation Authority of New York, Lease Contract, 5.125%, 1/1/29 $ 4,603,635 - ----------------------------------------------------------------------------------------------------------- $ 4,603,635 - ----------------------------------------------------------------------------------------------------------- OTHER REVENUE -- 1.5% $ 1,500 Capital Trust Agency, FL, (Seminole Tribe Convention), 8.95%, 10/1/33 $ 1,743,465 430 Capital Trust Agency, FL, (Seminole Tribe Convention), 10.00%, 10/1/33 515,690 - ----------------------------------------------------------------------------------------------------------- $ 2,259,155 - ----------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 5.4% $ 7,980 Puerto Rico Highway and Transportation Authority, 5.125%, 7/1/43 $ 8,111,111 - ----------------------------------------------------------------------------------------------------------- $ 8,111,111 - ----------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 157.2% (IDENTIFIED COST $226,809,767) $ 234,335,266 - ----------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 1.5% $ 2,260,939 - ----------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (58.7)% $ (87,539,187) - ----------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 149,057,018 - -----------------------------------------------------------------------------------------------------------
See notes to financial statements 14 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 September 30, 2004, 84.4% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 4.7% to 36.3% of total investments. (1) Security has been issued as a leveraged inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2004, the aggregate value of the securities is $21,348,373 or 14.3% of the Fund's net assets. (3) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. See notes to financial statements 15 INSURED CALIFORNIA MUNICIPAL BOND FUND II as of September 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 155.8%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 5.8% $ 750 California, 5.00%, 2/1/21 $ 785,070 900 California, 5.25%, 4/1/30 925,551 1,465 California, 5.50%, 11/1/33 1,553,574 - ----------------------------------------------------------------------------------------------------------- $ 3,264,195 - ----------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 10.4% $ 3,475 Glendale Electric, (MBIA), 5.00%, 2/1/32 $ 3,544,569 1,650 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(1)(2) 1,818,234 455 Sacramento Municipal Electric Utility District, (FSA), Variable Rate, 8/15/28(2)(3) 486,582 - ----------------------------------------------------------------------------------------------------------- $ 5,849,385 - ----------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 36.2% $ 1,250 California, (AMBAC), 5.00%, 4/1/27 $ 1,280,225 415 California, (XLCA), Variable Rate, 10/1/28(2)(3) 445,934 5,000 Clovis Unified School District, (FGIC), 0.00%, 8/1/20 2,346,350 2,000 Laguna Salada Union School District, (FGIC), 0.00%, 8/1/22 828,140 2,350 Long Beach Unified School District, (Election of 1999), (FSA), 5.00%, 8/1/31 2,394,109 1,710 Los Angeles Unified School District, (FGIC), 5.375%, 7/1/25 1,826,023 1,945 Los Osos Community Services, Wastewater Assessment District, (MBIA), 5.00%, 9/2/33 1,972,288 1,000 Mount Diablo Unified School District, (FSA), 5.00%, 8/1/25 1,034,990 735 San Diego Unified School District, (MBIA), Variable Rate, 7/1/24(2)(3) 1,079,818 4,300 San Mateo County Community College District, (Election of 2001), (FGIC), 0.00%, 9/1/21 1,887,829 1,750 Santa Ana Unified School District, (MBIA), 5.00%, 8/1/32 1,786,155 1,000 Simi Valley Unified School District, (MBIA), 5.00%, 8/1/28 1,030,100 3,200 Union Elementary School District, (FGIC), 0.00%, 9/1/22 1,320,960 2,600 Union Elementary School District, (FGIC), 0.00%, 9/1/23 1,006,798 - ----------------------------------------------------------------------------------------------------------- $ 20,239,719 - ----------------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 21.0% $ 4,000 Anaheim, Public Financing Authority Lease Revenue, (FSA), 5.00%, 3/1/37 $ 4,032,800 $ 4,250 California Public Works Board Lease Revenue, (Department of General Services), (AMBAC), 5.00%, 12/1/27(4) $ 4,336,827 2,250 Orange County Water District Certificates of Participation, (MBIA), 5.00%, 8/15/34 2,281,928 1,075 San Jose Financing Authority, (Civic Center), (AMBAC), 5.00%, 6/1/32 1,089,341 - ----------------------------------------------------------------------------------------------------------- $ 11,740,896 - ----------------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 14.3% $ 4,000 California University, (AMBAC), 5.00%, 11/1/33 $ 4,078,440 3,790 University of California, (FGIC), 5.125%, 9/1/31 3,905,974 - ----------------------------------------------------------------------------------------------------------- $ 7,984,414 - ----------------------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 16.6% $ 5,700 East Bay Municipal Utility District Water System, (MBIA), 5.00%, 6/1/38 $ 5,776,779 3,425 Los Angeles Wastewater Treatment System, (FGIC), 5.00%, 6/1/28 3,509,152 - ----------------------------------------------------------------------------------------------------------- $ 9,285,931 - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL ASSESSMENT REVENUE -- 15.9% $ 2,500 Cathedral City Public Financing Authority, (Housing Redevelopment), (MBIA), 5.00%, 8/1/33 $ 2,539,650 2,500 Cathedral City Public Financing Authority, (Tax Allocation Redevelopment), (MBIA), 5.00%, 8/1/33 2,539,650 1,750 Irvine Public Facility and Infrastructure Authority Assessment, (AMBAC), 5.00%, 9/2/26 1,796,183 2,000 Murrieta Redevelopment Agency Tax, (MBIA), 5.00%, 8/1/32 2,032,360 - ----------------------------------------------------------------------------------------------------------- $ 8,907,843 - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 11.2% $ 1,000 San Francisco Bay Area Rapid Transportation District Sales Tax Revenue, (AMBAC), 5.00%, 7/1/31 $ 1,018,560 3,750 San Francisco Bay Area Rapid Transportation District, (AMBAC), 5.125%, 7/1/36 3,846,488 1,335 San Jose Redevelopment Agency Tax, (MBIA), Variable Rate, 8/1/32(2)(3) 1,383,060 - ----------------------------------------------------------------------------------------------------------- $ 6,248,108 - ----------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 15.1% $ 4,000 California Infrastructure and Economic Development, (Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/36 $ 4,086,440
See notes to financial statements 16
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION (CONTINUED) $ 2,250 Los Angeles County Metropolitan Transportation Authority, (FGIC), 5.25%, 7/1/30 $ 2,340,135 6,670 San Joaquin Hills Transportation Corridor Agency, (MBIA), 0.00%, 1/15/27 2,058,095 - ----------------------------------------------------------------------------------------------------------- $ 8,484,670 - ----------------------------------------------------------------------------------------------------------- INSURED-UTILITIES -- 3.2% $ 1,750 Los Angeles Department of Water and Power, (FGIC), 5.125%, 7/1/41 $ 1,775,690 - ----------------------------------------------------------------------------------------------------------- $ 1,775,690 - ----------------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 1.6% $ 835 Contra Costa Water District, (FSA), Variable Rate, 10/1/32(2)(3) $ 887,672 - ----------------------------------------------------------------------------------------------------------- $ 887,672 - ----------------------------------------------------------------------------------------------------------- WATER REVENUE -- 4.5% $ 2,500 California Water Resource, (Central Valley), 5.00%, 12/1/29 $ 2,534,475 - ----------------------------------------------------------------------------------------------------------- $ 2,534,475 - ----------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 155.8% (IDENTIFIED COST $85,114,128) $ 87,202,998 - ----------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 4.5% $ 2,511,805 - ----------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (60.3)% $ (33,759,746) - ----------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 55,955,057 - -----------------------------------------------------------------------------------------------------------
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 September 30, 2004, 93.3% 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 0.5% to 32.1% 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 sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2004, the aggregate value of the securities is $6,101,300 or 10.9% of the Fund's net assets. (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 17 INSURED FLORIDA MUNICIPAL BOND FUND as of September 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 158.2%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 5.4% $ 2,000 Jacksonville Electric Authority, (Electric System), 5.25%, 10/1/31 $ 2,017,080 - ----------------------------------------------------------------------------------------------------------- $ 2,017,080 - ----------------------------------------------------------------------------------------------------------- HOSPITAL -- 5.6% $ 1,050 Highlands County, Health Facility Authority, (Adventist Health), 5.25%, 11/15/23 $ 1,069,110 1,000 South Miami Health Facility Authority, (Baptist Health), 5.25%, 11/15/33 1,019,880 - ----------------------------------------------------------------------------------------------------------- $ 2,088,990 - ----------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 5.6% $ 1,500 Deltona, Utility System Revenue, (MBIA), 5.00%, 10/1/33 $ 1,532,175 500 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(1)(2) 550,980 - ----------------------------------------------------------------------------------------------------------- $ 2,083,155 - ----------------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 6.1% $ 1,025 Dade County, Professional Sports Franchise Facility, (MBIA), Escrowed to Maturity, 5.25%, 10/1/30 $ 1,119,689 1,000 Polk County, Transportation Improvements, Prerefunded to 12/1/10, (FSA), 5.375%, 12/1/25 1,140,590 - ----------------------------------------------------------------------------------------------------------- $ 2,260,279 - ----------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 14.2% $ 1,345 Florida Board of Education Capital Outlay, (Public Education), (MBIA), 5.00%, 6/1/32 $ 1,368,672 2,000 Florida Board of Education Capital Outlay, (Public Education), (MBIA), 5.00%, 6/1/32 2,035,200 1,520 Florida Municipal Loan Council Revenue, (MBIA), 0.00%, 4/1/23 611,861 1,520 Florida Municipal Loan Council Revenue, (MBIA), 0.00%, 4/1/24 575,882 655 Puerto Rico, (FSA), 5.125%, 7/1/30 678,488 - ----------------------------------------------------------------------------------------------------------- $ 5,270,103 - ----------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 21.6% $ 1,000 Coral Gables Health Facilities Authority, (Baptist Health System of South Florida), (FSA), 5.00%, 8/15/29 $ 1,018,290 1,500 Jacksonville Economic Development Commission, (Mayo Clinic), (MBIA), 5.50%, 11/15/36 1,610,325 $ 1,000 Jacksonville Economic Development Commission, (Mayo Clinic), (MBIA), 5.50%, 11/15/36 $ 1,073,550 1,500 Miami-Dade County, Health Facilities Authority, (Miami Children's Hospital), (AMBAC), 5.125%, 8/15/26 1,547,955 1,510 Sarasota County, Public Hospital Board, (Sarasota Memorial Hospital), (MBIA), 5.25%, 7/1/24(3) 1,658,116 1,000 Sarasota County, Public Hospital Board, (Sarasota Memorial Hospital), (MBIA), 5.50%, 7/1/28 1,114,900 - ----------------------------------------------------------------------------------------------------------- $ 8,023,136 - ----------------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 8.0% $ 1,605 Port Palm Beach District, (Improvements), (XLCA), 0.00%, 9/1/24 $ 589,163 1,950 Port Palm Beach District, (Improvements), (XLCA), 0.00%, 9/1/25 666,939 1,700 Port Palm Beach District, (Improvements), (XLCA), 0.00%, 9/1/26 540,685 1,000 Puerto Rico Public Building Authority, (XLCA), 5.50%, 7/1/21 1,163,740 - ----------------------------------------------------------------------------------------------------------- $ 2,960,527 - ----------------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 16.4% $ 1,500 Miami-Dade County, (Professional Sports Franchise), (MBIA), 4.75%, 10/1/30 $ 1,492,230 1,740 Orange County Tourist Development, (AMBAC), 5.125%, 10/1/25 1,814,785 2,750 Village Center Community Development District, (MBIA), 5.00%, 11/1/32 2,803,817 - ----------------------------------------------------------------------------------------------------------- $ 6,110,832 - ----------------------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 2.7% $ 1,000 Pinellas County, Sewer, (FSA), 5.00%, 10/1/32 $ 1,021,670 - ----------------------------------------------------------------------------------------------------------- $ 1,021,670 - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL ASSESSMENT REVENUE -- 7.6% $ 2,780 Julington Creek, Plantation Community Development District, (MBIA), 5.00%, 5/1/29 $ 2,835,294 - ----------------------------------------------------------------------------------------------------------- $ 2,835,294 - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 35.9% $ 1,000 Bay County, Sales Tax, (AMBAC), 5.125%, 9/1/27 $ 1,037,030 1,250 Bay County, Sales Tax, (AMBAC), 5.125%, 9/1/32 1,289,000 1,000 Dade County, Special Obligation Residual Certificates, (AMBAC), Variable Rate, 10/1/35(2)(4) 1,026,610
See notes to financial statements 18
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE (CONTINUED) $ 1,500 Jacksonville Capital Improvements, (AMBAC), 5.00%, 10/1/30 $ 1,526,220 4,000 Jacksonville Transportation, (MBIA), 5.00%, 10/1/31 4,060,160 1,275 Jacksonville, Excise Tax, (FGIC), 5.125%, 10/1/27 1,322,417 225 Miami-Dade County, Special Obligation, (MBIA), 5.00%, 10/1/37 227,045 750 Orange County Tourist Development, (AMBAC), Variable Rate, 10/1/30(2)(4) 820,628 1,000 Orange County, Sales Tax, (FGIC), 5.125%, 1/1/23 1,059,230 440 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(2)(4) 470,171 1,120 Sunrise Public Facility, (MBIA), 0.00%, 10/1/20 533,792 - ----------------------------------------------------------------------------------------------------------- $ 13,372,303 - ----------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 7.7% $ 1,500 Florida Turnpike Authority, Water & Sewer Revenue, (Department of Transportation), (FGIC), 4.50%, 7/1/27 $ 1,459,275 330 Puerto Rico Highway and Transportation Authority, (FSA), Variable Rate, 7/1/32(2)(4) 356,486 940 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 7/1/36(2)(4) 1,037,704 - ----------------------------------------------------------------------------------------------------------- $ 2,853,465 - ----------------------------------------------------------------------------------------------------------- INSURED-UTILITY -- 4.2% $ 1,550 Daytona Beach, Utility System Revenue, (AMBAC), 5.00%, 11/15/32 $ 1,577,885 - ----------------------------------------------------------------------------------------------------------- $ 1,577,885 - ----------------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 14.2% $ 2,000 Marco Island Utility System, (MBIA), 5.00%, 10/1/27 $ 2,056,200 1,000 Marion County Utility System, (MBIA), 5.00%, 12/1/33 1,021,700 1,000 Sunrise Utility System, (AMBAC), 5.00%, 10/1/28 1,035,200 1,000 Sunrise Utility System, (AMBAC), 5.50%, 10/1/18 1,159,980 - ----------------------------------------------------------------------------------------------------------- $ 5,273,080 - ----------------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 1.4% $ 500 Tampa Bay Water Utility System, (FGIC), Variable Rate, 10/1/27(1)(2) $ 501,295 - ----------------------------------------------------------------------------------------------------------- $ 501,295 - ----------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 1.6% $ 250 Puerto Rico Highway and Transportation Authority, 5.125%, 7/1/39 $ 254,690 350 Puerto Rico Highway and Transportation Authority, 5.125%, 7/1/43 355,751 - ----------------------------------------------------------------------------------------------------------- $ 610,441 - ----------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 158.2% (IDENTIFIED COST $57,137,949) $ 58,859,535 - ----------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 2.3% $ 853,770 - ----------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (60.5)% $ (22,501,845) - ----------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 37,211,460 - -----------------------------------------------------------------------------------------------------------
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 September 30, 2004, 92.0% 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 5.0% to 48.9% 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 sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2004, the aggregate value of the securities is $4,763,874 or 12.8% of the Fund's net assets. (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 19 INSURED MASSACHUSETTS MUNICIPAL BOND FUND as of September 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 157.9%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- HOSPITAL -- 10.2% $ 1,500 Massachusetts HEFA, (Partners Healthcare System), 5.75%, 7/1/32 $ 1,617,765 1,000 Massachusetts HEFA, (South Shore Hospital), 5.75%, 7/1/29 1,028,310 - ----------------------------------------------------------------------------------------------------------- $ 2,646,075 - ----------------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 9.1% $ 3,000 Massachusetts College Building Authority, (MBIA), Escrowed to Maturity, 0.00%, 5/1/26 $ 1,013,730 1,000 Puerto Rico, (FGIC), Prerefunded to 7/1/12, Variable Rate, 7/1/32(1)(2) 1,349,470 - ----------------------------------------------------------------------------------------------------------- $ 2,363,200 - ----------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 18.7% $ 1,500 Martha's Vineyard, (AMBAC), 5.00%, 5/1/32(3) $ 1,532,700 2,000 Massachusetts, (MBIA), 5.25%, 8/1/28 2,200,420 1,020 Maynard, (MBIA), 5.50%, 2/1/22 1,136,749 - ----------------------------------------------------------------------------------------------------------- $ 4,869,869 - ----------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 11.6% $ 1,750 Massachusetts HEFA, (Harvard Pilgrim Health), (FSA), 5.00%, 7/1/28 $ 1,762,302 1,210 Massachusetts HEFA, (New England Medical Center ), (FGIC), 5.00%, 5/15/25 1,245,078 - ----------------------------------------------------------------------------------------------------------- $ 3,007,380 - ----------------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 15.9% $ 1,750 Massachusetts Development Finance Agency, (SRBC Project), (MBIA), 5.125%, 2/1/34 $ 1,793,085 1,000 Plymouth County Correctional Facility, (AMBAC), 5.00%, 4/1/22 1,040,320 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(1)(2) 1,302,960 - ----------------------------------------------------------------------------------------------------------- $ 4,136,365 - ----------------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 12.0% $ 2,100 Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.375%, 1/1/42 $ 2,225,685 800 Puerto Rico Municipal Finance Agency, (FSA), Variable Rate, 8/1/27(1)(2) 883,008 - ----------------------------------------------------------------------------------------------------------- $ 3,108,693 - ----------------------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 20.4% $ 1,000 Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59 $ 1,208,890 1,500 Massachusetts Development Finance Agency, (Franklin W. Olin College), (XLCA), 5.25%, 7/1/33 1,557,990 1,000 Massachusetts IFA, (College of the Holy Cross), (MBIA), 5.00%, 9/1/23 1,033,250 1,500 Massachusetts IFA, (Tufts University), (MBIA), 4.75%, 2/15/28 1,501,335 - ----------------------------------------------------------------------------------------------------------- $ 5,301,465 - ----------------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 17.5% $ 700 Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39 $ 791,819 1,000 Massachusetts HEFA, (University of Massachusetts), (FGIC), 5.125%, 10/1/34 1,030,090 1,150 Massachusetts HEFA, (Worcester State College), (AMBAC), 5.00%, 11/1/32 1,175,818 1,500 University of Massachusetts Building Authority, (AMBAC), 5.125%, 11/1/34 1,550,550 - ----------------------------------------------------------------------------------------------------------- $ 4,548,277 - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 4.1% $ 1,000 Massachusetts State Special Obligation--Convention Center, (FGIC), 5.25%, 1/1/29 $ 1,053,470 - ----------------------------------------------------------------------------------------------------------- $ 1,053,470 - ----------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 14.6% $ 5,700 Massachusetts Turnpike Authority, (MBIA), 0.00%, 1/1/28 $ 1,731,603 1,250 Massachusetts Turnpike Authority, Metropolitan Highway System, (AMBAC), 5.00%, 1/1/39 1,259,375 415 Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), Variable Rate, 1/1/37(1)(2) 425,578 335 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 7/1/36(1)(2) 369,820 - ----------------------------------------------------------------------------------------------------------- $ 3,786,376 - ----------------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 9.8% $ 2,500 Massachusetts Water Resource Authority, (FSA), 5.00%, 8/1/32 $ 2,541,800 - ----------------------------------------------------------------------------------------------------------- $ 2,541,800 - ----------------------------------------------------------------------------------------------------------- PRIVATE EDUCATION -- 9.3% $ 500 Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), 5.75%, 7/1/33 $ 517,805 750 Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33 759,120
See notes to financial statements 20
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- PRIVATE EDUCATION (CONTINUED) $ 600 Massachusetts Development Finance Agency, (Western New England College), 6.125%, 12/1/32 $ 630,414 500 Massachusetts HEFA, (Boston College), 5.125%, 6/1/24 522,125 - ----------------------------------------------------------------------------------------------------------- $ 2,429,464 - ----------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 4.7% $ 1,200 Puerto Rico Highway and Transportation Authority, 5.125%, 7/1/43 $ 1,219,716 - ----------------------------------------------------------------------------------------------------------- $ 1,219,716 - ----------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 157.9% (IDENTIFIED COST $39,277,400) $ 41,012,150 - ----------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 1.8% $ 469,974 - ----------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (59.7)% $ (15,500,000) - ----------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 25,982,124 - -----------------------------------------------------------------------------------------------------------
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 September 30, 2004, 84.7% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 3.2% to 27.3% of total investments. (1) Security has been issued as a leveraged inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2004, the aggregate value of the securities is $4,330,836 or 16.7% of the Fund's net assets. (3) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. See notes to financial statements 21 INSURED MICHIGAN MUNICIPAL BOND FUND as of September 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 157.5%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 5.7% $ 1,250 Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29 $ 1,285,525 - ----------------------------------------------------------------------------------------------------------- $ 1,285,525 - ----------------------------------------------------------------------------------------------------------- HOSPITAL -- 22.7% $ 1,000 Michigan Hospital Finance Authority, (McLaren Obligated Group), 4.50%, 10/15/21 $ 969,290 1,000 Michigan Hospital Finance Authority, (Oakwood Hospital), 5.75%, 4/1/32 1,038,310 1,500 Michigan Hospital Finance Authority, (Sparrow Obligation Group), 5.625%, 11/15/36 1,523,340 1,500 Michigan Hospital Finance Authority, (Trinity Health), 5.375%, 12/1/30 1,542,810 - ----------------------------------------------------------------------------------------------------------- $ 5,073,750 - ----------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 2.3% $ 500 Michigan Strategic Fund Resource Recovery, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32 $ 517,480 - ----------------------------------------------------------------------------------------------------------- $ 517,480 - ----------------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 5.3% $ 1,150 Michigan Hospital Finance Authority, (St. John Health System), (AMBAC), Escrowed to Maturity, 5.00%, 5/15/28 $ 1,192,216 - ----------------------------------------------------------------------------------------------------------- $ 1,192,216 - ----------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 38.9% $ 1,550 Detroit School District, (School Bond Loan Fund), (FSA), 5.125%, 5/1/31 $ 1,594,361 1,960 Grand Rapids and Kent County Joint Building Authority, (Devos Place), (MBIA), 0.00%, 12/1/27 595,272 4,000 Grand Rapids and Kent County Joint Building Authority, (MBIA), 0.00%, 12/1/30 1,020,120 750 Greenville Public Schools, (MBIA), 5.00%, 5/1/25 770,925 1,000 Melvindle-Northern Allen Park School District, (Building and Site), (FSA), 5.00%, 5/1/28 1,022,990 1,330 Okemos Public School District, (MBIA), 0.00%, 5/1/19 690,988 1,095 Puerto Rico, (FGIC), Variable Rate, 7/1/32(1)(2) 1,477,670 1,500 Reed City Public Schools, (FSA), 5.00%, 5/1/29 1,538,430 - ----------------------------------------------------------------------------------------------------------- $ 8,710,756 - ----------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 9.6% $ 500 Michigan Hospital Finance Authority, Mid-Michigan Obligation Group, (AMBAC), 5.00%, 4/15/32 $ 506,790 1,590 Royal Oak Hospital Finance Authority Revenue, (William Beaumont Hospital), (MBIA), 5.25%, 11/15/35 1,638,463 - ----------------------------------------------------------------------------------------------------------- $ 2,145,253 - ----------------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 13.8% $ 1,750 Michigan House of Representatives, (AMBAC), 0.00%, 8/15/22 $ 744,362 2,615 Michigan House of Representatives, (AMBAC), 0.00%, 8/15/23 1,040,979 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(1)(2) 1,302,960 - ----------------------------------------------------------------------------------------------------------- $ 3,088,301 - ----------------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 10.4% $ 1,500 Central Michigan University, (AMBAC), 5.05%, 10/1/32(3) $ 1,539,840 750 Lake Superior University, (AMBAC), 5.125%, 11/15/26 776,783 - ----------------------------------------------------------------------------------------------------------- $ 2,316,623 - ----------------------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 5.7% $ 1,250 Detroit Sewer Disposal, (FGIC), 5.125%, 7/1/31 $ 1,282,375 - ----------------------------------------------------------------------------------------------------------- $ 1,282,375 - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX -- 4.6% $ 1,000 Ypsilanti Community Utilities Authority, (San Sewer System), (FGIC), 5.00%, 5/1/32 $ 1,017,770 - ----------------------------------------------------------------------------------------------------------- $ 1,017,770 - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 15.9% $ 500 Detroit Downtown Development, (MBIA), 4.75%, 7/1/25 $ 502,610 1,500 Lansing Building Authority, (MBIA), 5.00%, 6/1/29 1,535,400 1,500 Wayne Charter County, (Airport Hotel-Detroit Metropolitan Airport), (MBIA), 5.00%, 12/1/30 1,529,625 - ----------------------------------------------------------------------------------------------------------- $ 3,567,635 - ----------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 4.6% $ 1,000 Michigan Trunk Line, (FSA), 5.00%, 11/1/25 $ 1,029,710 - ----------------------------------------------------------------------------------------------------------- $ 1,029,710 - -----------------------------------------------------------------------------------------------------------
See notes to financial statements 22
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 $ 1,036,880 510 Lansing Board Water Supply, Steam and Eletctric Utility, (FSA), 5.00%, 7/1/26 525,453 - ----------------------------------------------------------------------------------------------------------- $ 1,562,333 - ----------------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 11.0% $ 1,600 Detroit Water Supply System, (FGIC), 5.00%, 7/1/30 $ 1,626,928 800 Detroit Water Supply System, (MBIA), Variable Rate, 7/1/34(1)(2) 845,832 - ----------------------------------------------------------------------------------------------------------- $ 2,472,760 - ----------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 157.5% (IDENTIFIED COST $33,729,275) $ 35,262,487 - ----------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 2.8% $ 634,263 - ----------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (60.3)% $ (13,501,071) - ----------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 22,395,679 - -----------------------------------------------------------------------------------------------------------
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 September 30, 2004, 86.9% 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 1.6% to 27.4% of total investments. (1) Security has been issued as a leveraged inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2004, the aggregate value of the securities is $3,626,462 or 16.2% of the Fund's net assets. (3) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. See notes to financial statements 23 INSURED NEW JERSEY MUNICIPAL BOND FUND as of September 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 157.0%
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 $ 1,273,162 - ----------------------------------------------------------------------------------------------------------- $ 1,273,162 - ----------------------------------------------------------------------------------------------------------- HOSPITAL -- 2.9% $ 500 Camden County Improvement Authority, (Cooper Health), 5.75%, 2/15/34 $ 504,270 610 New Jersey Health Care Facilities Financing Authority, (Capital Health System), 5.375%, 7/1/33 613,751 - ----------------------------------------------------------------------------------------------------------- $ 1,118,021 - ----------------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 5.5% $ 1,550 Puerto Rico, (FGIC), Prerefunded to 7/1/12, Variable Rate, 7/1/32(1)(2) $ 2,091,679 - ----------------------------------------------------------------------------------------------------------- $ 2,091,679 - ----------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 22.1% $ 2,260 Bayonne, (FSA), 0.00%, 7/1/22 $ 971,122 2,415 Bayonne, (FSA), 0.00%, 7/1/23 978,703 1,500 Bordentown Regional School District Board of Education, (FGIC), 5.00%, 1/15/30(3) 1,543,140 265 Florence Township Fire District No. 1, (MBIA), 5.125%, 7/15/28 276,896 170 Florence Township Fire District No.1, (MBIA), 5.125%, 7/15/29 177,332 5,500 Irvington Township, (FSA), 0.00%, 7/15/26 1,868,955 1,500 Jersey City, (FSA), 5.25%, 9/1/23 1,612,065 1,000 Washington Township and Mercer County Board of Education, (FGIC), 5.00%, 1/1/27 1,029,640 - ----------------------------------------------------------------------------------------------------------- $ 8,457,853 - ----------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 10.5% $ 2,750 New Jersey Health Care Facilities, (Englewood Hospital), (MBIA), 5.00%, 8/1/31 $ 2,806,100 1,200 New Jersey Health Care Facilities, (Jersey City Medical Center), (AMBAC), 5.00%, 8/1/41 1,218,732 - ----------------------------------------------------------------------------------------------------------- $ 4,024,832 - ----------------------------------------------------------------------------------------------------------- INSURED-INDUSTRIAL DEVELOPMENT REVENUE -- 8.4% $ 3,170 Lafayette Yard, Community Development Corporation, (Hotel and Conference Center), (FGIC), 5.00%, 4/1/35 $ 3,222,051 - ----------------------------------------------------------------------------------------------------------- $ 3,222,051 - ----------------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 14.6% $ 10,000 Garden State New Jersey Preservation Trust, (FSA), 0.00%, 11/1/28 $ 3,001,100 1,250 Middlesex County, (MBIA), 5.00%, 8/1/31 1,277,125 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(1)(2) 1,302,960 - ----------------------------------------------------------------------------------------------------------- $ 5,581,185 - ----------------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 2.7% $ 950 Puerto Rico Municipal Finance Agency, (FSA), Variable Rate, 8/1/27(1)(2) $ 1,048,572 - ----------------------------------------------------------------------------------------------------------- $ 1,048,572 - ----------------------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 2.7% $ 1,000 New Jersey Educational Facilities Authority, (Kean University), (FGIC), 5.00%, 7/1/28 $ 1,029,790 - ----------------------------------------------------------------------------------------------------------- $ 1,029,790 - ----------------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 26.8% $ 1,400 Monmouth, (Brookdale Community College), (AMBAC), 5.00%, 8/1/29 $ 1,427,930 1,000 New Jersey Educational Facilities Authority, (Rowan University), (FGIC), 5.00%, 7/1/27 1,029,910 1,600 New Jersey Educational Facilities Authority, (Rowan University), (FGIC), 5.00%, 7/1/33 1,637,552 1,500 New Jersey Educational Facilities Authority, (Rowan University), (FGIC), 5.125%, 7/1/30 1,559,940 4,490 University of New Jersey Medicine and Dentistry, (AMBAC), 5.00%, 4/15/32 4,606,650 - ----------------------------------------------------------------------------------------------------------- $ 10,261,982 - ----------------------------------------------------------------------------------------------------------- INSURED-SEWER REVENUE -- 6.5% $ 900 Long Branch Sewer Authority, (FGIC), 4.75%, 6/1/23 $ 934,524 2,350 Passaic Valley Sewer Commissioners, (FGIC), 2.50%, 12/1/32 1,554,314 - ----------------------------------------------------------------------------------------------------------- $ 2,488,838 - -----------------------------------------------------------------------------------------------------------
See notes to financial statements 24
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 2.2% $ 750 New Jersey EDA, (Motor Vehicle Surcharges), (MBIA), 5.25%, 7/1/26 $ 824,708 - ----------------------------------------------------------------------------------------------------------- $ 824,708 - ----------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 22.5% $ 780 Delaware River and Bay Authority, (MBIA), 5.00%, 1/1/33 $ 800,904 800 Newark Housing Authority, (Newark Marine Terminal), (MBIA), 5.00%, 1/1/23 838,280 1,500 Newark Housing Authority, (Newark Marine Terminal), (MBIA), 5.00%, 1/1/37 1,531,305 1,290 Port Authority of New York and New Jersey, (FSA), Variable Rate, 11/1/27(1)(2) 1,413,027 1,000 Puerto Rico Highway and Transportation Authority, (MBIA), 5.00%, 7/1/33 1,028,850 950 South Jersey Transportation Authority, (AMBAC), 5.00%, 11/1/29 972,430 2,000 South Jersey Transportation Authority, (FGIC), 5.00%, 11/1/33 2,058,200 - ----------------------------------------------------------------------------------------------------------- $ 8,642,996 - ----------------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 4.5% $ 4,500 Middlesex County Improvements Authority Utilities System, (Perth Amboy), (AMBAC), 0.00%, 9/1/24 $ 1,723,995 - ----------------------------------------------------------------------------------------------------------- $ 1,723,995 - ----------------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 4.7% $ 1,800 Bayonne Municipal Utilities Authority, Water and Sewer Revenue, (XLCA), 4.75%, 4/1/33 $ 1,801,872 - ----------------------------------------------------------------------------------------------------------- $ 1,801,872 - ----------------------------------------------------------------------------------------------------------- LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 4.0% $ 1,500 New Jersey EDA, (School Facilities), 5.00%, 6/15/26 $ 1,540,920 - ----------------------------------------------------------------------------------------------------------- $ 1,540,920 - ----------------------------------------------------------------------------------------------------------- SENIOR LIVING / LIFE CARE -- 1.5% $ 600 New Jersey EDA, (Fellowship Village), 5.50%, 1/1/25 $ 585,282 - ----------------------------------------------------------------------------------------------------------- $ 585,282 - ----------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 11.6% $ 300 Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/24 $ 310,293 2,250 Port Authority of New York and New Jersey, 5.00%, 9/1/38 2,286,855 1,825 South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33 1,861,810 - ----------------------------------------------------------------------------------------------------------- $ 4,458,958 - ----------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 157.0% (IDENTIFIED COST $57,443,552) $ 60,176,696 - ----------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 1.7% $ 652,427 - ----------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (58.7)% $ (22,502,793) - ----------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 38,326,330 - -----------------------------------------------------------------------------------------------------------
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 September 30, 2004, 85.1% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.2% to 29.4% of total investments. (1) Security has been issued as a leveraged inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2004, the aggregate value of the securities is $5,856,238 or 15.3% of the Fund's net assets. (3) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. See notes to financial statements 25 INSURED NEW YORK MUNICIPAL BOND FUND II as of September 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 155.6%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 5.9% $ 500 New York, 5.25%, 8/15/26 $ 524,120 1,650 New York, NY, 5.25%, 1/15/28 1,713,789 - ----------------------------------------------------------------------------------------------------------- $ 2,237,909 - ----------------------------------------------------------------------------------------------------------- HOSPITAL -- 2.0% - ----------------------------------------------------------------------------------------------------------- $ 750 Suffolk County Industrial Development Agency, (Huntington Hospital), 5.875%, 11/1/32 $ 773,400 - ----------------------------------------------------------------------------------------------------------- $ 773,400 - ----------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 14.0% $ 6,800 Long Island Power Authority Electric Systems Revenue, (FSA), 0.00%, 6/1/22 $ 3,041,844 2,250 Long Island Power Authority, (NY Electric System), (AMBAC), 5.00%, 9/1/34 2,300,085 - ----------------------------------------------------------------------------------------------------------- $ 5,341,929 - ----------------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 3.7% $ 580 New York City Trust Cultural Resources, (Museum of History), Prerefunded to 7/1/09, (AMBAC), Variable Rate, 7/1/29(1)(2) $ 735,852 500 Puerto Rico, (FGIC), Prerefunded to 7/1/12, Variable Rate, 7/1/32(1)(2) 674,735 - ----------------------------------------------------------------------------------------------------------- $ 1,410,587 - ----------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 4.1% $ 1,500 Sachem School District, (MBIA), 5.00%, 6/15/27 $ 1,552,890 - ----------------------------------------------------------------------------------------------------------- $ 1,552,890 - ----------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 11.9% $ 1,250 New York City Health and Hospital Corp., (Health Systems), (AMBAC), 5.00%, 2/15/23 $ 1,305,125 6,125 New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (MBIA), 0.00%, 7/1/26 2,134,624 3,365 New York Dormitory Authority, (Memorial Sloan-Kettering Center), (MBIA), 0.00%, 7/1/27 1,104,898 - ----------------------------------------------------------------------------------------------------------- $ 4,544,647 - ----------------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 11.5% $ 3,000 New York Urban Development Corp., (Personal Income Tax), (FGIC), 5.00%, 3/15/33 $ 3,065,310 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(1)(2) 1,302,960 - ----------------------------------------------------------------------------------------------------------- $ 4,368,270 - ----------------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 5.4% $ 2,000 New York City Cultural Resource Trust, (Museum of Modern Art), (AMBAC), 5.125%, 7/1/31 $ 2,065,700 - ----------------------------------------------------------------------------------------------------------- $ 2,065,700 - ----------------------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 26.6% $ 1,000 New York City Industrial Development Agency, (New York University), (AMBAC), 5.00%, 7/1/31 $ 1,019,140 2,500 New York Dormitory Authority, (Brooklyn Law School), (XLCA), 5.125%, 7/1/30 2,579,875 2,265 New York Dormitory Authority, (FIT Student Housing Corp.), (FGIC), 5.00%, 7/1/29 2,327,333 1,500 New York Dormitory Authority, (Fordham University), (FGIC), 5.00%, 7/1/32 1,530,315 1,000 New York Dormitory Authority, (New York University), (AMBAC), 5.00%, 7/1/31 1,019,140 500 New York Dormitory Authority, (Skidmore College), (FGIC), 5.00%, 7/1/33 512,180 1,125 New York Dormitory Authority, (University of Rochester), (MBIA), 5.00%, 7/1/27 1,147,151 - ----------------------------------------------------------------------------------------------------------- $ 10,135,134 - ----------------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 6.0% $ 2,245 New York Dormitory Authority, (School Districts Financing Program), (MBIA), 5.00%, 10/1/30 $ 2,296,253 - ----------------------------------------------------------------------------------------------------------- $ 2,296,253 - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 6.7% $ 2,500 New York City Transitional Finance Authority, (MBIA), 4.75%, 5/1/23 $ 2,543,450 - ----------------------------------------------------------------------------------------------------------- $ 2,543,450 - -----------------------------------------------------------------------------------------------------------
See notes to financial statements 26
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 24.2% $ 1,000 Metropolitan Transportation Authority, (FGIC), 5.00%, 11/15/31 $ 1,020,060 2,000 Metropolitan Transportation Authority, (FGIC), 5.25%, 11/15/31 2,097,840 835 Port Authority of New York and New Jersey, (FSA), Variable Rate, 11/1/27(1)(2) 914,634 1,000 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 7/1/28(1)(2) 1,074,330 2,000 Puerto Rico Highway and Transportation Authority, (MBIA), 5.00%, 7/1/33 2,057,700 2,000 Triborough Bridge and Tunnel Authority, (MBIA), 5.00%, 11/15/32 2,042,060 - ----------------------------------------------------------------------------------------------------------- $ 9,206,624 - ----------------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 14.5% $ 3,000 New York City Municipal Water Finance Authority, (AMBAC), 5.00%, 6/15/38(3) $ 3,053,850 2,400 Niagara Falls, Public Water Authority and Sewer System, (MBIA), 5.00%, 7/15/34 2,452,056 - ----------------------------------------------------------------------------------------------------------- $ 5,505,906 - ----------------------------------------------------------------------------------------------------------- INSURED-WATER REVENUE -- 2.7% $ 1,000 Buffalo Municipal Water Finance Authority, (FSA), 5.125%, 7/1/32 $ 1,029,570 - ----------------------------------------------------------------------------------------------------------- $ 1,029,570 - ----------------------------------------------------------------------------------------------------------- OTHER REVENUE -- 1.6% $ 500 Puerto Rico Infrastructure Financing Authority, Variable Rate, 10/1/32(1)(2) $ 627,090 - ----------------------------------------------------------------------------------------------------------- $ 627,090 - ----------------------------------------------------------------------------------------------------------- PRIVATE EDUCATION -- 4.1% $ 1,000 Dutchess County, Industrial Development Agency, (Marist College), 5.00%, 7/1/22 $ 1,028,850 500 Rensselaer County Industrial Development Agency, (Rensselaer Polytech Institute), 5.125%, 8/1/27 512,415 - ----------------------------------------------------------------------------------------------------------- $ 1,541,265 - ----------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 10.7% $ 1,500 Port Authority of New York and New Jersey, 5.00%, 9/1/38 $ 1,524,570 2,500 Triborough Bridge and Tunnel Authority, 5.125%, 1/1/31 2,566,800 - ----------------------------------------------------------------------------------------------------------- $ 4,091,370 - ----------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 155.6% (IDENTIFIED COST $57,024,545) $ 59,271,994 - ----------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 3.5% $ 1,318,509 - ----------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (59.1)% $ (22,501,862) - ----------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES-- 100.0% $ 38,088,641 - -----------------------------------------------------------------------------------------------------------
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 September 30, 2004, 84.4% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.2% to 29.2% of total investments. (1) Security has been issued as a leveraged inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2004, the aggregate value of the securities is $5,329,601 or 14.0% of the Fund's net assets. (3) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. See notes to financial statements 27 INSURED OHIO MUNICIPAL BOND FUND as of September 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 156.5%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 2.8% $ 1,000 Puerto Rico Electric Power Authority, 5.125%, 7/1/29 $ 1,030,140 - ----------------------------------------------------------------------------------------------------------- $ 1,030,140 - ----------------------------------------------------------------------------------------------------------- GENERAL OBLIGATIONS -- 4.0% $ 1,415 Granville School District, 5.00%, 12/1/24 $ 1,463,549 - ----------------------------------------------------------------------------------------------------------- $ 1,463,549 - ----------------------------------------------------------------------------------------------------------- HOSPITAL -- 2.5% $ 900 Cuyahoga County, (Cleveland Clinic Health System), 5.50%, 1/1/29 $ 929,898 - ----------------------------------------------------------------------------------------------------------- $ 929,898 - ----------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 10.0% $ 4,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/25 $ 1,459,480 1,775 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/26 606,180 5,000 Ohio Municipal Electric Generation Agency, (MBIA), 0.00%, 2/15/27 1,609,750 - ----------------------------------------------------------------------------------------------------------- $ 3,675,410 - ----------------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 2.0% $ 665 Puerto Rico Public Buildings Authority, Government Facilities Revenue, (XLCA), Prerefunded to 7/1/12, 5.25%, 7/1/36 $ 746,502 - ----------------------------------------------------------------------------------------------------------- $ 746,502 - ----------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 55.9% $ 1,500 Ashtabula School District, (Construction Improvements), (FGIC), 5.00%, 12/1/30(1) $ 1,532,700 2,000 Cincinnati School District, (School Improvements), (FSA), 5.00%, 12/1/22 2,101,800 1,000 Cleveland, Municipal School District, (FSA), 5.00%, 12/1/27 1,028,830 1,500 Columbus School District, (FSA), 5.00%, 12/1/32 1,540,350 2,500 Cuyahoga Community College District, (AMBAC), 5.00%, 12/1/32 2,556,300 2,500 Olentangy School District, (School Facility Construction and Improvements), (MBIA), 5.00%, 12/1/30 2,554,500 2,400 Plain School District, (FGIC), 0.00%, 12/1/27 719,112 1,400 Powell, (FGIC), 5.50%, 12/1/32 1,513,708 $ 2,500 Springboro Community School District, (MBIA), 5.00%, 12/1/32 $ 2,564,625 750 Tecumseh School District, (FGIC), 4.75%, 12/1/31 750,855 2,600 Trotwood-Madison School District, (School Improvements), (FGIC), 5.00%, 12/1/30 2,656,680 1,000 Zanesville School District, (School Improvements), (MBIA), 5.05%, 12/1/29 1,035,170 - ----------------------------------------------------------------------------------------------------------- $ 20,554,630 - ----------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 7.0% $ 1,000 Hamilton County, (Cincinnati Childrens Hospital), (FGIC), 5.00%, 5/15/32 $ 1,018,770 1,500 Hamilton County, (Cincinnati Childrens Hospital), (FGIC), 5.125%, 5/15/28 1,554,105 - ----------------------------------------------------------------------------------------------------------- $ 2,572,875 - ----------------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 11.0% $ 1,400 Cleveland, (Cleveland Stadium), (AMBAC), 5.25%, 11/15/27 $ 1,464,652 1,000 Puerto Rico Public Building Authority, (CIFG), Variable Rate, 7/1/36(2)(3) 1,302,960 235 Puerto Rico Public Buildings Authority, Government Facilities Revenue, (XLCA), 5.25%, 7/1/36 246,207 1,000 Summit County, (Civic Theater Project), (AMBAC), 5.00%, 12/1/33 1,018,320 - ----------------------------------------------------------------------------------------------------------- $ 4,032,139 - ----------------------------------------------------------------------------------------------------------- INSURED-MISCELLANEOUS -- 0.9% $ 280 Puerto Rico Municipal Finance Agency, (FSA), Variable Rate, 8/1/27(2)(3) $ 309,053 - ----------------------------------------------------------------------------------------------------------- $ 309,053 - ----------------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 16.4% $ 3,000 Cincinnati Technical and Community College, (AMBAC), 5.00%, 10/1/28 $ 3,084,510 1,170 Ohio University, (FSA), 5.25%, 12/1/23 1,259,400 500 University of Akron, (FGIC), Variable Rate, 1/1/29(3)(4) 648,325 1,000 University of Cincinnati, (AMBAC), 5.00%, 6/1/31 1,021,110 - ----------------------------------------------------------------------------------------------------------- $ 6,013,345 - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 15.7% $ 4,315 Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/22 $ 1,836,550 5,000 Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/23 1,993,450
See notes to financial statements 28
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE (CONTINUED) $ 1,000 Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/24 $ 374,890 875 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(3)(4) 914,996 615 Puerto Rico Infrastructure Financing Authority, (AMBAC), Variable Rate, 7/1/28(2)(3) 657,171 - ----------------------------------------------------------------------------------------------------------- $ 5,777,057 - ----------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 15.7% - ----------------------------------------------------------------------------------------------------------- $ 4,750 Cleveland Airport System, (FSA), 5.00%, 1/1/31 $ 4,822,248 885 Puerto Rico Highway and Transportation Authority, (AMBAC), Variable Rate, 7/1/28(2)(3) 950,782 - ----------------------------------------------------------------------------------------------------------- $ 5,773,030 - ----------------------------------------------------------------------------------------------------------- POOLED LOANS -- 4.6% $ 1,500 Cleveland-Cuyahoga County Port Authority, (Garfield Heights), 5.25%, 5/15/23 $ 1,482,360 190 Rickenbacker Port Authority Capital Funding, (Oasbo), 5.375%, 1/1/32 198,637 - ----------------------------------------------------------------------------------------------------------- $ 1,680,997 - ----------------------------------------------------------------------------------------------------------- PRIVATE EDUCATION -- 8.0% $ 1,000 Ohio Higher Educational Facilities Authority, (Oberlin College), 5.00%, 10/1/33 $ 1,019,240 1,000 Ohio Higher Educational Facilities Authority, (Oberlin College), Variable Rate, 10/1/29(3)(4) 1,030,540 850 Ohio Higher Educational Facilities Commission, (John Carroll University), 5.25%, 11/15/33 884,323 - ----------------------------------------------------------------------------------------------------------- $ 2,934,103 - ----------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 156.5% (IDENTIFIED COST $55,590,179) $ 57,492,728 - ----------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 3.1% $ 1,131,748 - ----------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (59.6)% $ (21,878,594) - ----------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES-- 100.0% $ 36,745,882 - -----------------------------------------------------------------------------------------------------------
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 September 30, 2004, 86.0% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.7% to 27.6% of total investments. (1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. (2) Security has been issued as a leveraged inverse floater bond. (3) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2004, the aggregate value of the securities is $5,813,827 or 15.8% of the Fund's net assets. (4) Security has been issued as an inverse floater bond. See notes to financial statements 29 INSURED PENNSYLVANIA MUNICIPAL BOND FUND as of September 30, 2004 PORTFOLIO OF INVESTMENTS TAX-EXEMPT INVESTMENTS -- 158.9%
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- ELECTRIC UTILITIES -- 0.8% $ 325 Puerto Rico Electric Power Authority, Variable Rate, 7/1/29(1)(2) $ 344,591 - ----------------------------------------------------------------------------------------------------------- $ 344,591 - ----------------------------------------------------------------------------------------------------------- HOSPITAL -- 8.1% $ 750 Lancaster County Hospital Authority, 5.50%, 3/15/26 $ 764,475 350 Lebanon County Health Facility Authority, (Good Samaritan Hospital), 6.00%, 11/15/35 357,486 1,500 Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32 1,507,215 750 Pennsylvania HEFA, (UPMC Health System), 6.00%, 1/15/31 792,713 - ----------------------------------------------------------------------------------------------------------- $ 3,421,889 - ----------------------------------------------------------------------------------------------------------- INSURED-ELECTRIC UTILITIES -- 4.6% $ 400 Puerto Rico Electric Power Authority, (FSA), Variable Rate, 7/1/29(2)(3) $ 461,176 1,400 Puerto Rico Electric Power Authority, (FSA), 5.125%, 7/1/26 1,474,326 - ----------------------------------------------------------------------------------------------------------- $ 1,935,502 - ----------------------------------------------------------------------------------------------------------- INSURED-ESCROWED / PREREFUNDED -- 2.4% $ 1,000 Pennsylvania Turnpike Commision, Oil Franchise Tax, (AMBAC), Escrowed to Maturity, 4.75%, 12/1/27 $ 1,018,600 - ----------------------------------------------------------------------------------------------------------- $ 1,018,600 - ----------------------------------------------------------------------------------------------------------- INSURED-GAS UTILITIES -- 5.4% $ 1,355 Philadelphia Natural Gas Works, (FSA), 5.125%, 8/1/31 $ 1,390,474 875 Philadelphia Natural Gas Works, (FSA), Variable Rate, 7/1/28(1) 895,029 - ----------------------------------------------------------------------------------------------------------- $ 2,285,503 - ----------------------------------------------------------------------------------------------------------- INSURED-GENERAL OBLIGATIONS -- 41.9% $ 250 Allegheny County, (FGIC), 5.25%, 11/1/21 $ 271,225 1,650 Armstrong County, (MBIA), 5.40%, 6/1/31 1,756,524 4,300 Butler School District, (FSA), 5.00%, 4/1/31 4,399,588 4,845 Canon McMillan School District, (FGIC), 0.00%, 12/1/33 1,058,875 500 Canon McMillan School District, (FGIC), 5.25%, 12/1/34 522,410 1,000 Gateway, School District Alleghany County, (FGIC), 5.00%, 10/15/32 1,021,650 2,555 McKeesport School District, (MBIA), 0.00%, 10/1/21 1,136,822 $ 2,000 Pennridge School District, (MBIA), 5.00%, 2/15/29 $ 2,045,900 500 Philadelphia, (FSA), 5.00%, 9/15/31 507,845 300 Philadelphia, (FSA), 5.25%, 9/15/25 318,471 585 Philadelphia, (FSA), Variable Rate, 9/15/31(2)(3) 612,530 1,000 Pine-Richland School District, (FSA), 5.00%, 9/1/29 1,018,390 400 Puerto Rico, (FGIC), Variable Rate, 7/1/32(2)(3) 539,788 2,500 Upper Clair Township School District, (FSA), 5.00%, 7/15/32 2,545,025 - ----------------------------------------------------------------------------------------------------------- $ 17,755,043 - ----------------------------------------------------------------------------------------------------------- INSURED-HOSPITAL -- 6.1% $ 1,500 Southcentral Pennsylvania General Authority, (York Hospital/Wellspan Health), (MBIA), 5.25%, 5/15/31 $ 1,551,300 1,000 Washington County Hospital Authority, (Washington Hospital), (AMBAC), 5.125%, 7/1/28 1,020,630 - ----------------------------------------------------------------------------------------------------------- $ 2,571,930 - ----------------------------------------------------------------------------------------------------------- INSURED-INDUSTRIAL DEVELOPMENT REVENUE -- 4.1% $ 1,700 Allegheny County IDA, (MBIA), 5.00%, 11/1/29 $ 1,735,632 - ----------------------------------------------------------------------------------------------------------- $ 1,735,632 - ----------------------------------------------------------------------------------------------------------- INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 7.4% $ 1,300 Philadelphia Authority for Industrial Development Lease Revenue, (FSA), 5.125%, 10/1/26 $ 1,345,084 1,700 Philadelphia Authority for Industrial Development Lease Revenue, (FSA), 5.25%, 10/1/30 1,769,241 - ----------------------------------------------------------------------------------------------------------- $ 3,114,325 - ----------------------------------------------------------------------------------------------------------- INSURED-PRIVATE EDUCATION -- 17.6% $ 1,000 Chester County IDA Educational Facility, (Westtown School), (AMBAC), 5.00%, 1/1/31 $ 1,017,260 3,365 Delaware County, (Villanova University), (MBIA), 5.00%, 12/1/28 3,413,557 3,000 Pennsylvania HEFA, (Temple University), (MBIA), 5.00%, 4/1/29(4) 3,045,360 - ----------------------------------------------------------------------------------------------------------- $ 7,476,177 - ----------------------------------------------------------------------------------------------------------- INSURED-PUBLIC EDUCATION -- 8.3% $ 2,400 Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32 $ 2,506,968 1,000 Pennsylvania HEFA, (Clarion University Foundation), (XLCA), 5.00%, 7/1/33 1,015,870 - ----------------------------------------------------------------------------------------------------------- $ 3,522,838 - -----------------------------------------------------------------------------------------------------------
See notes to financial statements 30
PRINCIPAL AMOUNT (000'S OMITTED) SECURITY VALUE - ----------------------------------------------------------------------------------------------------------- INSURED-SPECIAL TAX REVENUE -- 10.4% $ 4,350 Pittsburgh and Allegheny County Public Auditorium, (AMBAC), 5.00%, 2/1/29 $ 4,418,991 - ----------------------------------------------------------------------------------------------------------- $ 4,418,991 - ----------------------------------------------------------------------------------------------------------- INSURED-TRANSPORTATION -- 22.0% $ 2,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/25 $ 2,061,780 1,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29 1,019,510 1,500 Pennsylvania Turnpike Commission Registration Fee, (AMBAC), 5.00%, 7/15/31 1,532,535 3,750 Pennsylvania Turnpike Commission, (AMBAC), 5.00%, 7/15/41 3,793,613 815 Puerto Rico Highway and Transportation Authority, (MBIA), Variable Rate, 7/1/36(2)(3) 899,711 - ----------------------------------------------------------------------------------------------------------- $ 9,307,149 - ----------------------------------------------------------------------------------------------------------- INSURED-WATER AND SEWER -- 14.5% $ 1,555 Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25 $ 534,360 2,155 Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25 740,544 1,920 Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26 620,582 2,500 Pennsylvania University Sewer Authority, (MBIA), 5.00%, 11/1/26 2,560,550 1,000 Philadelphia Water & Wastewater, (FGIC), Variable Rate, 11/1/31(2)(3) 1,056,820 580 Pittsburgh Water and Sewer Authority, (AMBAC), Variable Rate, 12/1/27(2)(3) 641,439 - ----------------------------------------------------------------------------------------------------------- $ 6,154,295 - ----------------------------------------------------------------------------------------------------------- TRANSPORTATION -- 5.3% $ 1,400 Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/28 $ 1,422,022 800 Puerto Rico Highway and Transportation Authority, 5.125%, 7/1/43 813,144 - ----------------------------------------------------------------------------------------------------------- $ 2,235,166 - ----------------------------------------------------------------------------------------------------------- TOTAL TAX-EXEMPT INVESTMENTS -- 158.9% (IDENTIFIED COST $65,541,147) $ 67,297,631 - ----------------------------------------------------------------------------------------------------------- OTHER ASSETS, LESS LIABILITIES -- 2.5% $ 1,054,616 - ----------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES PLUS CUMULATIVE UNPAID DIVIDENDS -- (61.4)% $ (26,000,000) - ----------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES -- 100.0% $ 42,352,247 - -----------------------------------------------------------------------------------------------------------
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 September 30, 2004, 91.1% of the securities in the portfolio of investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.5% to 27.0% of total investments. (1) Security has been issued as an inverse floater bond. (2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2004, the aggregate value of the securities is $4,556,055 or 10.8% of the Fund's net assets. (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 31 EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2004 FINANCIAL STATEMENTS STATEMENTS OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 2004
INSURED INSURED INSURED MUNICIPAL FUND II CALIFORNIA FUND II FLORIDA FUND - -------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments -- Identified cost $ 226,809,767 $ 85,114,128 $ 57,137,949 Unrealized appreciation 7,525,499 2,088,870 1,721,586 - -------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $ 234,335,266 $ 87,202,998 $ 58,859,535 - -------------------------------------------------------------------------------------------------------------------------------- Cash $ -- $ 1,437,428 $ -- Receivable from the Transfer Agent -- 24,024 16,773 Interest receivable 3,264,744 1,010,809 1,139,979 Receivable for daily variation margin on open financial futures contracts 203,125 81,250 53,625 Prepaid expenses 33,830 -- -- - -------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 237,836,965 $ 89,756,509 $ 60,069,912 - -------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Due to bank $ 1,183,720 $ -- $ 315,862 Accrued expenses 57,040 41,706 40,745 - -------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 1,240,760 $ 41,706 $ 356,607 - -------------------------------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends 87,539,187 33,759,746 22,501,845 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 149,057,018 $ 55,955,057 $ 37,211,460 - -------------------------------------------------------------------------------------------------------------------------------- SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 99,161 $ 38,555 $ 25,635 Additional paid-in capital 140,606,199 54,650,147 36,336,339 Accumulated net realized gain (loss) (computed on the basis of identified cost) 101,748 (954,948) (899,763) Accumulated undistributed net investment income 1,566,379 456,720 241,693 Net unrealized appreciation (computed on the basis of identified cost) 6,683,531 1,764,583 1,507,556 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 149,057,018 $ 55,955,057 $ 37,211,460 - -------------------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING (LIQUIDATION PREFERENCE OF $25,000 PER SHARE) 3,500 1,350 900 - -------------------------------------------------------------------------------------------------------------------------------- COMMON SHARES OUTSTANDING 9,916,105 3,855,544 2,563,484 - -------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 15.03 $ 14.51 $ 14.52 - --------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 32
INSURED INSURED INSURED MASSACHUSETTS FUND MICHIGAN FUND NEW JERSEY FUND - ---------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments -- Identified cost $ 39,277,400 $ 33,729,275 $ 57,443,552 Unrealized appreciation 1,734,750 1,533,212 2,733,144 - ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $ 41,012,150 $ 35,262,487 $ 60,176,696 - ---------------------------------------------------------------------------------------------------------------------------------- Cash $ -- $ 64,830 $ -- Receivable from the Transfer Agent 4,299 2,583 4,104 Interest receivable 556,516 568,713 788,967 Receivable for daily variation margin on open financial futures contracts 32,500 34,531 40,625 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 41,605,465 $ 35,933,144 $ 61,010,392 - ---------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Due to bank $ 86,339 $ -- $ 142,053 Accrued expenses 37,002 36,394 39,216 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 123,341 $ 36,394 $ 181,269 - ---------------------------------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends 15,500,000 13,501,071 22,502,793 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 25,982,124 $ 22,395,679 $ 38,326,330 - ---------------------------------------------------------------------------------------------------------------------------------- SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 17,472 $ 15,090 $ 25,576 Additional paid-in capital 24,747,251 21,371,031 36,245,454 Accumulated net realized loss (computed on the basis of identified cost) (657,399) (556,618) (934,961) Accumulated undistributed net investment income 291,640 207,270 446,605 Net unrealized appreciation (computed on the basis of identified cost) 1,583,160 1,358,906 2,543,656 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 25,982,124 $ 22,395,679 $ 38,326,330 - ---------------------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING (LIQUIDATION PREFERENCE OF $25,000 PER SHARE) 620 540 900 - ---------------------------------------------------------------------------------------------------------------------------------- COMMON SHARES OUTSTANDING 1,747,195 1,509,044 2,557,596 - ---------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 14.87 $ 14.84 $ 14.99 - ----------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 33
INSURED INSURED INSURED NEW YORK FUND II OHIO FUND PENNSYLVANIA FUND - --------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments -- Identified cost $ 57,024,545 $ 55,590,179 $ 65,541,147 Unrealized appreciation 2,247,449 1,902,549 1,756,484 - --------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS, AT VALUE $ 59,271,994 $ 57,492,728 $ 67,297,631 - --------------------------------------------------------------------------------------------------------------------------------- Cash $ 505,038 $ 295,299 $ 71,984 Receivable from the Transfer Agent -- 6,045 2,690 Interest receivable 793,493 820,560 952,706 Receivable for daily variation margin on open financial futures contracts 54,844 50,781 61,344 Prepaid expenses 439 -- -- - --------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 60,625,808 $ 58,665,413 $ 68,386,355 - --------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to affiliate for Trustees' fees $ -- $ -- $ 75 Accrued expenses 35,305 40,937 34,033 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES $ 35,305 $ 40,937 $ 34,108 - --------------------------------------------------------------------------------------------------------------------------------- Auction preferred shares at liquidation value plus cumulative unpaid dividends 22,501,862 21,878,594 26,000,000 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 38,088,641 $ 36,745,882 $ 42,352,247 - --------------------------------------------------------------------------------------------------------------------------------- SOURCES OF NET ASSETS Common Shares, $0.01 par value, unlimited number of shares authorized $ 25,539 $ 25,092 $ 29,397 Additional paid-in capital 36,190,165 35,558,119 41,664,298 Accumulated net realized loss (computed on the basis of identified cost) (450,730) (645,737) (1,160,706) Accumulated undistributed net investment income 303,550 142,718 307,611 Net unrealized appreciation (computed on the basis of identified cost) 2,020,117 1,665,690 1,511,647 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES $ 38,088,641 $ 36,745,882 $ 42,352,247 - --------------------------------------------------------------------------------------------------------------------------------- AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING (LIQUIDATION PREFERENCE OF $25,000 PER SHARE) 900 875 1,040 - --------------------------------------------------------------------------------------------------------------------------------- COMMON SHARES OUTSTANDING 2,553,906 2,509,226 2,939,752 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER COMMON SHARE NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY COMMON SHARES ISSUED AND OUTSTANDING $ 14.91 $ 14.64 $ 14.41 - ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 34 STATEMENTS OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 2004
INSURED INSURED INSURED MUNICIPAL FUND II CALIFORNIA FUND II FLORIDA FUND - --------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 12,966,594 $ 4,689,506 $ 3,140,813 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 12,966,594 $ 4,689,506 $ 3,140,813 - --------------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment adviser fee $ 1,281,462 $ 494,512 $ 328,560 Trustees' fees and expenses 7,994 6,158 1,530 Legal and accounting services 41,423 39,832 37,024 Printing and postage 21,327 7,453 5,690 Custodian fee 117,333 44,425 31,964 Transfer and dividend disbursing agent 119,363 48,019 34,067 Preferred shares remarketing agent fee 187,886 84,605 56,404 Miscellaneous 29,907 22,387 19,874 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES $ 1,806,695 $ 747,391 $ 515,113 - --------------------------------------------------------------------------------------------------------------------------------- Deduct -- Reduction of custodian fee $ 7,368 $ 6,210 $ 2,742 Reduction of investment adviser fee 349,490 134,867 89,607 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSE REDUCTIONS $ 356,858 $ 141,077 $ 92,349 - --------------------------------------------------------------------------------------------------------------------------------- NET EXPENSES $ 1,449,837 $ 606,314 $ 422,764 - --------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $ 11,516,757 $ 4,083,192 $ 2,718,049 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) -- Investment transactions (identified cost basis) $ 3,128,364 $ 359,677 $ 37,600 Financial futures contracts (4,078,495) (1,575,255) (1,101,036) - --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED LOSS $ (950,131) $ (1,215,578) $ (1,063,436) - --------------------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ 2,906,357 $ 805,105 $ 827,356 Financial futures contracts 1,337,429 327,182 230,068 - --------------------------------------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 4,243,786 $ 1,132,287 $ 1,057,424 - --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN (LOSS) $ 3,293,655 $ (83,291) $ (6,012) - --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income $ (797,793) $ (291,894) $ (196,442) From net realized gain (171,657) (14,985) (16,866) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (969,450) $ (306,879) $ (213,308) - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 13,840,962 $ 3,693,022 $ 2,498,729 - ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 35
INSURED INSURED INSURED MASSACHUSETTS FUND MICHIGAN FUND NEW JERSEY FUND - --------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 2,251,389 $ 1,945,243 $ 3,280,972 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 2,251,389 $ 1,945,243 $ 3,280,972 - --------------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment adviser fee $ 225,727 $ 195,467 $ 331,927 Trustees' fees and expenses 1,530 153 1,529 Legal and accounting services 37,114 30,499 31,616 Printing and postage 3,940 3,490 4,029 Custodian fee 27,122 25,403 35,126 Transfer and dividend disbursing agent 25,576 25,999 35,863 Preferred shares remarketing agent fee 38,855 33,540 55,964 Miscellaneous 18,364 19,422 23,903 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES $ 378,228 $ 333,973 $ 519,957 - --------------------------------------------------------------------------------------------------------------------------------- Deduct -- Reduction of custodian fee $ 1,068 $ 1,775 $ 2,658 Reduction of investment adviser fee 61,562 53,309 90,526 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSE REDUCTIONS $ 62,630 $ 55,084 $ 93,184 - --------------------------------------------------------------------------------------------------------------------------------- NET EXPENSES $ 315,598 $ 278,889 $ 426,773 - --------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $ 1,935,791 $ 1,666,354 $ 2,854,199 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) -- Investment transactions (identified cost basis) $ (120,767) $ 8,066 $ (115,507) Financial futures contracts (707,361) (500,919) (1,006,191) - --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED LOSS $ (828,128) $ (492,853) $ (1,121,698) - --------------------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ 1,232,336 $ 863,516 $ 1,783,307 Financial futures contracts 206,321 13,663 257,901 - --------------------------------------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 1,438,657 $ 877,179 $ 2,041,208 - --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN $ 610,529 $ 384,326 $ 919,510 - --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income $ (120,070) $ (134,802) $ (171,798) From net realized gain (28,935) -- (38,781) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (149,005) $ (134,802) $ (210,579) - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,397,315 $ 1,915,878 $ 3,563,130 - ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 36
INSURED INSURED INSURED NEW YORK FUND II OHIO FUND PENNSYLVANIA FUND - --------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 3,185,844 $ 3,062,921 $ 3,613,648 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME $ 3,185,844 $ 3,062,921 $ 3,613,648 - --------------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment adviser fee $ 331,401 $ 319,329 $ 377,313 Trustees' fees and expenses 1,529 1,530 1,604 Legal and accounting services 31,641 36,742 31,579 Printing and postage 5,752 7,008 5,270 Custodian fee 36,950 32,894 35,283 Transfer and dividend disbursing agent 38,018 39,568 43,577 Preferred shares remarketing agent fee 56,404 54,687 64,027 Miscellaneous 19,071 18,782 20,555 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES $ 520,766 $ 510,540 $ 579,208 - --------------------------------------------------------------------------------------------------------------------------------- Deduct -- Reduction of custodian fee $ 3,227 $ 3,380 $ 2,355 Reduction of investment adviser fee 90,382 87,090 102,904 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSE REDUCTIONS $ 93,609 $ 90,470 $ 105,259 - --------------------------------------------------------------------------------------------------------------------------------- NET EXPENSES $ 427,157 $ 420,070 $ 473,949 - --------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME $ 2,758,687 $ 2,642,851 $ 3,139,699 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) -- Investment transactions (identified cost basis) $ 416,319 $ (22,912) $ (205,640) Financial futures contracts (898,747) (883,389) (1,188,389) Increase from payment by affiliate 10,000 -- -- Net loss realized on the disposal of an investment in violation of restrictions (10,000) -- -- - --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED LOSS $ (482,428) $ (906,301) $ (1,394,029) - --------------------------------------------------------------------------------------------------------------------------------- Change in unrealized appreciation (depreciation) -- Investments (identified cost basis) $ 1,023,444 $ 977,622 $ 941,814 Financial futures contracts 25,973 (15,217) 255,600 - --------------------------------------------------------------------------------------------------------------------------------- NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 1,049,417 $ 962,405 $ 1,197,414 - --------------------------------------------------------------------------------------------------------------------------------- NET REALIZED AND UNREALIZED GAIN (LOSS) $ 566,989 $ 56,104 $ (196,615) - --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income $ (161,738) $ (215,359) $ (243,715) From net realized gain (40,869) (6,904) (32,614) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO PREFERRED SHAREHOLDERS $ (202,607) $ (222,263) $ (276,329) - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,123,069 $ 2,476,692 $ 2,666,755 - ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 37 STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 2004
INSURED INSURED INSURED INCREASE (DECREASE) IN NET ASSETS MUNICIPAL FUND II CALIFORNIA FUND II FLORIDA FUND - --------------------------------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 11,516,757 $ 4,083,192 $ 2,718,049 Net realized loss from investments and financial futures contracts transactions (950,131) (1,215,578) (1,063,436) Net change in unrealized appreciation (depreciation) from investments and financial futures contracts 4,243,786 1,132,287 1,057,424 Distributions to preferred shareholders From net investment income (797,793) (291,894) (196,442) From net realized gain (171,657) (14,985) (16,866) - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 13,840,962 $ 3,693,022 $ 2,498,729 - --------------------------------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (9,917,512) $ (3,652,192) $ (2,380,578) From net realized gain (1,566,389) (231,517) (203,870) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (11,483,901) $ (3,883,709) $ (2,584,448) - --------------------------------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 126,364 $ 62,350 $ 111,072 - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ 126,364 $ 62,350 $ 111,072 - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS $ 2,483,425 $ (128,337) $ 25,353 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES At beginning of year $ 146,573,593 $ 56,083,394 $ 37,186,107 - --------------------------------------------------------------------------------------------------------------------------------- AT END OF YEAR $ 149,057,018 $ 55,955,057 $ 37,211,460 - --------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES AT END OF YEAR $ 1,566,379 $ 456,720 $ 241,693 - ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 38
INSURED INSURED INSURED INCREASE (DECREASE) IN NET ASSETS MASSACHUSETTS FUND MICHIGAN FUND NEW JERSEY FUND - --------------------------------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 1,935,791 $ 1,666,354 $ 2,854,199 Net realized loss from investments and financial futures contracts (828,128) (492,853) (1,121,698) Net change in unrealized appreciation (depreciation) from investments and financial futures contracts 1,438,657 877,179 2,041,208 Distributions to preferred shareholders From net investment income (120,070) (134,802) (171,798) From net realized gain (28,935) -- (38,781) - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,397,315 $ 1,915,878 $ 3,563,130 - --------------------------------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (1,654,712) $ (1,429,865) $ (2,453,611) From net realized gain (392,319) -- (525,716) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (2,047,031) $ (1,429,865) $ (2,979,327) - --------------------------------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 46,328 $ 16,409 $ 55,739 - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ 46,328 $ 16,409 $ 55,739 - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS $ 396,612 $ 502,422 $ 639,542 - --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES At beginning of year $ 25,585,512 $ 21,893,257 $ 37,686,788 - --------------------------------------------------------------------------------------------------------------------------------- AT END OF YEAR $ 25,982,124 $ 22,395,679 $ 38,326,330 - --------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES AT END OF YEAR $ 291,640 $ 207,270 $ 446,605 - ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 39
INSURED INSURED INSURED INCREASE (DECREASE) IN NET ASSETS NEW YORK FUND II OHIO FUND PENNSYLVANIA FUND - --------------------------------------------------------------------------------------------------------------------------------- From operations -- Net investment income $ 2,758,687 $ 2,642,851 $ 3,139,699 Net realized loss from investments and financial futures contracts transactions (482,428) (906,301) (1,394,029) Net change in unrealized appreciation (depreciation) from investments and financial futures contracts 1,049,417 962,405 1,197,414 Distributions to preferred shareholders From net investment income (161,738) (215,359) (243,715) From net realized gain (40,869) (6,904) (32,614) - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,123,069 $ 2,476,692 $ 2,666,755 - --------------------------------------------------------------------------------------------------------------------------------- Distributions to common shareholders -- From net investment income $ (2,459,266) $ (2,330,988) $ (2,755,136) From net realized gain (563,836) (82,913) (412,505) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (3,023,102) $ (2,413,901) $ (3,167,641) - --------------------------------------------------------------------------------------------------------------------------------- Capital share transactions -- Reinvestment of distributions to common shareholders $ 4,566 $ 73,548 $ 31,524 - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS $ 4,566 $ 73,548 $ 31,524 - --------------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN NET ASSETS $ 104,533 $ 136,339 $ (469,362) - --------------------------------------------------------------------------------------------------------------------------------- NET ASSETS APPLICABLE TO COMMON SHARES At beginning of year $ 37,984,108 $ 36,609,543 $ 42,821,609 - --------------------------------------------------------------------------------------------------------------------------------- AT END OF YEAR $ 38,088,641 $ 36,745,882 $ 42,352,247 - --------------------------------------------------------------------------------------------------------------------------------- ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES AT END OF YEAR $ 303,550 $ 142,718 $ 307,611 - ---------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements 40 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 from investments and financial futures contracts transactions 2,695,195 475,791 369,619 Net change in unrealized appreciation (depreciation) from investments and financial futures contracts 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 year $ 100,000 $ 100,000 $ 100,000 - --------------------------------------------------------------------------------------------------------------------------------- AT END OF YEAR $ 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 YEAR $ 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 41
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) from investments and financial futures contracts 579,251 (83,806) 748,013 Net change in unrealized appreciation (depreciation) from investments and financial futures contracts 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 year $ 100,000 $ 100,000 $ 100,000 - --------------------------------------------------------------------------------------------------------------------------------- AT END OF YEAR $ 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 YEAR $ 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 42
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 from investments and financial futures contracts transactions 619,801 311,341 668,618 Net change in unrealized appreciation (depreciation) from investments and financial futures contracts 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 year $ 100,000 $ 100,000 $ 100,000 - --------------------------------------------------------------------------------------------------------------------------- AT END OF YEAR $ 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 YEAR $ 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 43 FINANCIAL HIGHLIGHTS SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED MUNICIPAL FUND II ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.790 $ 14.325(3) - ------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.162 $ 0.879 Net realized and unrealized gain 0.334 0.508 Distributions to preferred shareholders From net investment income (0.080) (0.071) From net realized gain (0.017) -- - ------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 1.399 $ 1.316 - ------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (1.001) $ (0.714) From net realized gain (0.158) -- - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.159) $ (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 YEAR (COMMON SHARES) $ 15.030 $ 14.790 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 14.820 $ 14.000 - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 10.00%(4) 8.46%(5) - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 14.59%(4) 2.67%(5) - -------------------------------------------------------------------------------------------------------
See notes to financial statements 44 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED MUNICIPAL FUND II ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 149,057 $ 146,574 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.00% 0.86%(7) Net expenses after custodian fee reduction(6) 1.00% 0.84%(7) Net investment income(6) 7.92% 7.14%(7) Portfolio Turnover 34% 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% 1.09%(7) Expenses after custodian fee reduction(6) 1.24% 1.07%(7) Net investment income(6) 7.68% 6.91%(7) Net investment income per share $ 1.127 $ 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% 0.57%(7) Net expenses after custodian fee reduction 0.62% 0.56%(7) Net investment income 4.94% 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 and net investment income per share would have been as follows: Ratios (As a percentage of average total net assets): Expenses 0.78% 0.72%(7) Expenses after custodian fee reduction 0.77% 0.71%(7) Net investment income 4.79% 4.57%(7) - ----------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 3,500 3,500 Asset coverage per preferred share(8) $ 67,599 $ 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 45 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED CALIFORNIA FUND II ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.560 $ 14.325(3) - ------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.060 $ 0.822 Net realized and unrealized gain (loss) (0.022) 0.281 Distributions to preferred shareholders From net investment income (0.076) (0.050) From net realized gain (0.004) -- - ------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.958 $ 1.053 - ------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.948) $ (0.675) From net realized gain (0.060) -- - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.008) $ (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 YEAR (COMMON SHARES) $ 14.510 $ 14.560 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 14.580 $ 13.800 - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 6.84%(4) 6.62%(5) - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 13.27%(4) 1.06%(5) - -------------------------------------------------------------------------------------------------------
See notes to financial statements 46 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED CALIFORNIA FUND II ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 55,955 $ 56,083 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.09% 0.98%(7) Net expenses after custodian fee reduction(6) 1.08% 0.96%(7) Net investment income(6) 7.27% 6.75%(7) Portfolio Turnover 13% 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) 1.33% 1.22%(7) Expenses after custodian fee reduction(6) 1.32% 1.20%(7) Net investment income(6) 7.03% 6.51%(7) Net investment income per share $ 1.025 $ 0.793 - ----------------------------------------------------------------------------------------------------------------- ++ 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 0.68% 0.64%(7) Net expenses after custodian fee reduction 0.67% 0.63%(7) Net investment income 4.54% 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 0.83% 0.80%(7) Expenses after custodian fee reduction 0.82% 0.79%(7) Net investment income 4.39% 4.30%(7) - ----------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 1,350 1,350 Asset coverage per preferred share(8) $ 66,455 $ 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 47 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED FLORIDA FUND ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.550 $ 14.325(3) - ------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.062 $ 0.788 Net realized and unrealized gain 0.002(4) 0.319 Distributions to preferred shareholders From net investment income (0.077) (0.060) From net realized gain (0.007) -- - ------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.980 $ 1.047 - ------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.930) $ (0.675) From net realized gain (0.080) -- - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.010) $ (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) $ 14.520 $ 14.550 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.750 $ 14.100 - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 7.12%(5) 6.37%(6) - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 12.29%(5) 3.08%(6) - -------------------------------------------------------------------------------------------------------
See notes to financial statements 48 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED FLORIDA FUND ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 37,211 $ 37,186 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(7) 1.14% 1.04%(8) Net expenses after custodian fee reduction(7) 1.14% 0.98%(8) Net investment income(7) 7.30% 6.45%(8) Portfolio Turnover 19% 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(7) 1.38% 1.29%(8) Expenses after custodian fee reduction(7) 1.38% 1.23%(8) Net investment income(7) 7.06% 6.20%(8) Net investment income per share $ 1.027 $ 0.757 - ----------------------------------------------------------------------------------------------------------------- ++ 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 0.71% 0.69%(8) Net expenses after custodian fee reduction 0.71% 0.65%(8) Net investment income 4.55% 4.25%(8) + 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 0.86% 0.86%(8) Expenses after custodian fee reduction 0.86% 0.82%(8) Net investment income 4.40% 4.08%(8) - ----------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 900 900 Asset coverage per preferred share(9) $ 66,348 $ 66,319 Involuntary liquidation preference per preferred share(10) $ 25,000 $ 25,000 Approximate market value per preferred share(10) $ 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) The per share amount does not reflect the actual net realized and unrealized gain/loss for the period because of the timing of reinvested shares of the Fund and the amount of per share realized gains and losses at such time. (5) 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. (6) 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. (7) 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. (8) Annualized. (9) 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. (10) Plus accumulated and unpaid dividends. See notes to financial statements 49 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED MASSACHUSETTS FUND ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of period (Common shares) $ 14.670 $ 14.325(3) - ------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.109 $ 0.823 Net realized and unrealized gain 0.350 0.411 Distributions to preferred shareholders From net investment income (0.069) (0.058) From net realized gain (0.017) -- - ------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 1.373 $ 1.176 - ------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.948) $ (0.675) From net realized gain (0.225) -- - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.173) $ (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) $ 14.870 $ 14.670 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 15.570 $ 14.450 - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 9.74%(4) 7.22%(5) - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 16.66%(4) 5.61%(5) - -------------------------------------------------------------------------------------------------------
See notes to financial statements 50 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED MASSACHUSETTS FUND ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of period (000's omitted) $ 25,982 $ 25,586 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.24% 1.10%(7) Net expenses after custodian fee reduction(6) 1.24% 1.06%(7) Net investment income(6) 7.58% 6.73%(7) Portfolio Turnover 39% 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) 1.48% 1.36%(7) Expenses after custodian fee reduction(6) 1.48% 1.32%(7) Net investment income(6) 7.34% 6.47%(7) Net investment income per share $ 1.074 $ 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% 0.73%(7) Net expenses after custodian fee reduction 0.77% 0.70%(7) Net investment income 4.72% 4.42%(7) + The operating expenses of the Fund 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% 0.90%(7) Expenses after custodian fee reduction 0.92% 0.87%(7) Net investment income 4.57% 4.25%(7) - ----------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 620 620 Asset coverage per preferred share(8) $ 66,907 $ 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 51 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED MICHIGAN FUND ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.520 $ 14.325(3) - ------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.105 $ 0.824 Net realized and unrealized gain 0.252 0.262 Distribution to preferred shareholders from net investment income (0.089) (0.058) - ------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 1.268 $ 1.028 - ------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM NET INVESTMENT INCOME $ (0.948) $ (0.675) - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.948) $ (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) $ 14.840 $ 14.520 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 15.490 $ 14.410 - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 8.96%(4) 6.12%(5) - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 14.60%(4) 5.31%(5) - -------------------------------------------------------------------------------------------------------
See notes to financial statements 52 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED MICHIGAN FUND ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 22,396 $ 21,893 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.28% 1.14%(7) Net expenses after custodian fee reduction(6) 1.27% 1.09%(7) Net investment income(6) 7.56% 6.75%(7) Portfolio Turnover 8% 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) 1.52% 1.41%(7) Expenses after custodian fee reduction(6) 1.51% 1.36%(7) Net investment income(6) 7.32% 6.48%(7) Net investment income per share $ 1.070 $ 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% 0.75%(7) Net expenses after custodian fee reduction 0.78% 0.71%(7) Net investment income 4.69% 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% 0.93%(7) Expenses after custodian fee reduction 0.93% 0.89%(7) Net investment income 4.54% 4.25%(7) - ----------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 540 540 Asset coverage per preferred share(8) $ 66,475 $ 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 53 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED NEW JERSEY FUND ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.760 $ 14.325(3) - ------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.117 $ 0.826 Net realized and unrealized gain 0.361 0.489 Distributions to preferred shareholders From net investment income (0.067) (0.058) From net realized gain (0.015) -- - ------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 1.396 $ 1.257 - ------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.960) $ (0.675) From net realized gain (0.206) -- - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.166) $ (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 YEAR (COMMON SHARES) $ 14.990 $ 14.760 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 15.490 $ 14.520 - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 9.83%(4) 7.89%(5) - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 15.37%(4) 6.14%(5) - -------------------------------------------------------------------------------------------------------
See notes to financial statements 54 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED NEW JERSEY FUND ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 38,326 $ 37,687 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.13% 1.03%(7) Net expenses after custodian fee reduction(6) 1.13% 0.99%(7) Net investment income(6) 7.54% 6.69%(7) Portfolio Turnover 22% 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) 1.37% 1.28%(7) Expenses after custodian fee reduction(6) 1.37% 1.24%(7) Net investment income(6) 7.30% 6.44%(7) Net investment income per share $ 1.081 $ 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 0.71% 0.69%(7) Net expenses after custodian fee reduction 0.71% 0.66%(7) Net investment income 4.73% 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 action not been taken, the ratios would have been as follows: Ratios (As a percentage of average total net assets): Expenses 0.86% 0.85%(7) Expenses after custodian fee reduction 0.86% 0.82%(7) Net investment income 4.58% 4.26%(7) - ----------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 900 900 Asset coverage per preferred share(8) $ 67,588 $ 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 55 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED NEW YORK FUND II ------------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------------ 2004(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.870 $ 14.325(3) - ------------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.080 $ 0.818 Net realized and unrealized gain 0.223 0.617 Distributions to preferred shareholders From net investment income (0.063) (0.057) From net realized gain (0.016) -- - ------------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 1.224 $ 1.378 - ------------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.963) $ (0.686) From net realized gain (0.221) -- - ------------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.184) $ (0.686) - ------------------------------------------------------------------------------------------------------------- PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ (0.058) - ------------------------------------------------------------------------------------------------------------- PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ (0.089) - ------------------------------------------------------------------------------------------------------------- NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.910 $ 14.870 - ------------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.460 $ 13.710 - ------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 8.75%(4)(10) 8.87%(5) - ------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 14.39%(4)(10) 0.38%(5) - -------------------------------------------------------------------------------------------------------------
See notes to financial statements 56 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED NEW YORK FUND II ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 38,089 $ 37,984 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.14% 1.03%(7) Net expenses after custodian fee reduction(6) 1.13% 0.98%(7) Net investment income(6) 7.31% 6.65%(7) Portfolio Turnover 28% 66% + The operating expenses of the Fund 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) 1.38% 1.28%(7) Expenses after custodian fee reduction(6) 1.37% 1.23%(7) Net investment income(6) 7.07% 6.40%(7) Net investment income per share $ 1.045 $ 0.787 - ----------------------------------------------------------------------------------------------------------------- ++ 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 0.71% 0.68%(7) Net expenses after custodian fee reduction 0.71% 0.65%(7) Net investment income 4.58% 4.40%(7) + The operating expenses of the Fund 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 0.86% 0.85%(7) Expenses after custodian fee reduction 0.86% 0.82%(7) Net investment income 4.43% 4.23%(7) - ----------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 900 900 Asset coverage per preferred share(8) $ 67,323 $ 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 year ended September 30, 2004, the investment adviser reimbursed the Fund for a net loss realized on the disposal of an investment in violation of restrictions. The 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 year ended September 30, 2004. See notes to financial statements 57 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED OHIO FUND ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.620 $ 14.325(3) - ------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.054 $ 0.776 Net realized and unrealized gain 0.018 0.402 Distributions to preferred shareholders From net investment income (0.086) (0.060) From net realized gain (0.003) -- - ------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.983 $ 1.118 - ------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.930) $ (0.675) From net realized gain (0.033) -- - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.963) $ (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) $ 14.640 $ 14.620 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 15.200 $ 14.430 - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 6.94%(4) 6.85%(5) - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 12.49%(4) 5.46%(5) - -------------------------------------------------------------------------------------------------------
See notes to financial statements 58 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED OHIO FUND ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 36,746 $ 36,610 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.17% 1.05%(7) Net expenses after custodian fee reduction(6) 1.16% 0.99%(7) Net investment income(6) 7.30% 6.38%(7) Portfolio Turnover 25% 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) 1.41% 1.30%(7) Expenses after custodian fee reduction(6) 1.40% 1.24%(7) Net investment income(6) 7.06% 6.13%(7) Net investment income per share $ 1.019 $ 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 0.73% 0.69%(7) Net expenses after custodian fee reduction 0.72% 0.65%(7) Net investment income 4.55% 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 0.88% 0.86%(7) Expenses after custodian fee reduction 0.87% 0.82%(7) Net investment income 4.40% 4.04%(7) - ----------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 875 875 Asset coverage per preferred share(7) $ 66,999 $ 66,841 Involuntary liquidation preference per preferred share(8) $ 25,000 $ 25,000 Approximate market value per preferred share(8) $ 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 59 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED PENNSYLVANIA FUND ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ------------------------------------------------------------------------------------------------------- Net asset value -- Beginning of year (Common shares) $ 14.580 $ 14.325(3) - ------------------------------------------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS Net investment income $ 1.068 $ 0.811 Net realized and unrealized gain (loss) (0.066) 0.331 Distributions to preferred shareholders From net investment income (0.083) (0.060) From net realized gain (0.011) -- - ------------------------------------------------------------------------------------------------------- TOTAL INCOME FROM OPERATIONS $ 0.908 $ 1.082 - ------------------------------------------------------------------------------------------------------- LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income $ (0.938) $ (0.681) From net realized gain (0.140) -- - ------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (1.078) $ (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) $ 14.410 $ 14.580 - ------------------------------------------------------------------------------------------------------- MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.980 $ 14.330 - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON NET ASSET VALUE 6.43%(4) 6.63%(5) - ------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT RETURN ON MARKET VALUE 12.57%(4) 4.80%(5) - -------------------------------------------------------------------------------------------------------
See notes to financial statements 60 SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
INSURED PENNSYLVANIA FUND ------------------------------ YEAR ENDED SEPTEMBER 30, ------------------------------ 2004(1) 2003(1)(2) - ----------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA+ ++ Net assets applicable to common shares, end of year (000's omitted) $ 42,352 $ 42,822 Ratios (As a percentage of average net assets applicable to common shares): Net expenses(6) 1.12% 1.03%(7) Net expenses after custodian fee reduction(6) 1.11% 0.97%(7) Net investment income(6) 7.37% 6.64%(7) Portfolio Turnover 17% 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) 1.36% 1.28%(7) Expenses after custodian fee reduction(6) 1.35% 1.22%(7) Net investment income(6) 7.13% 6.39%(7) Net investment income per share $ 1.033 $ 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% 0.68%(7) Net expenses after custodian fee reduction 0.69% 0.64%(7) Net investment income 4.58% 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% 0.84%(7) Expenses after custodian fee reduction 0.84% 0.80%(7) Net investment income 4.43% 4.20%(7) - ----------------------------------------------------------------------------------------------------------------- Senior Securities: Total preferred shares outstanding 1,040 1,040 Asset coverage per preferred share(8) $ 65,723 $ 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 61 EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2004 NOTES TO FINANCIAL STATEMENTS 1 SIGNIFICANT ACCOUNTING POLICIES Eaton Vance Insured Municipal Bond Fund II (Insured Municipal Fund II), Eaton Vance Insured California Municipal Bond Fund II (Insured California Fund II), Eaton Vance Insured Florida Municipal Bond Fund (Insured Florida Fund), Eaton Vance Insured Massachusetts Municipal Bond Fund (Insured Massachusetts Fund), Eaton Vance Insured Michigan Municipal Bond Fund (Insured Michigan Fund), Eaton Vance Insured New Jersey Municipal Bond Fund (Insured New Jersey Fund), Eaton Vance Insured New York Municipal Bond Fund II (Insured New York Fund II), Eaton Vance Insured Ohio Municipal Bond Fund (Insured Ohio Fund), and Eaton Vance Insured Pennsylvania Municipal Bond Fund (Insured Pennsylvania Fund) (individually referred to as the Fund or collectively the Funds) are registered under the Investment Company Act of 1940, as amended, as non-diversified, closed-end management investment companies. Each of the Funds was organized under the laws of the Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated October 3, 2002. Each Fund's investment objective is to achieve current income exempt from regular federal income tax, including alternative minimum tax, and taxes in its specified state. Each Fund seeks to achieve its objective by investing primarily in high grade municipal obligations that are insured as to the timely payment of principal and interest. The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America. A INVESTMENT VALUATION -- Municipal bonds are normally valued on the basis of valuations furnished by a pricing service. Taxable obligations, if any, for which price quotations are readily available are normally valued at the mean between the bid and asked prices. Futures contracts and options on 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 not readily available 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. At September 30, 2004, the Funds, for federal income tax purposes, had a capital loss carryover which will reduce taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Internal Revenue Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. The amounts and expiration dates of the capital loss carryovers are as follows:
FUND AMOUNT EXPIRES ------------------------------------------------------------ Insured Michigan Fund $ 113,378 September 30, 2012 Insured Ohio Fund 37,328 September 30, 2012
Additionally, at September 30, 2004, 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 had net capital losses of $854,540, $1,310,426, $1,128,423, $816,432, $631,302, $1,125,725, $694,063, $884,190, and $1,415,291 respectively, attributable to security transactions incurred after October 31, 2003. These are treated as arising on the first day of each Fund's taxable year ending September 30, 2005. 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, 62 which are exempt from regular federal income taxes when received by each Fund, as exempt-interest dividends. E ORGANIZATION AND OFFERING COSTS -- Costs incurred by each Fund in connection with its organization have been expensed. Costs incurred by each Fund in connection with the offerings of the common shares and preferred shares were recorded as a reduction of capital paid in excess of par applicable to common shares. F FINANCIAL FUTURES CONTRACTS -- Upon the entering of a financial futures contract, a Fund is required to deposit (initial margin) either in cash or securities an amount equal to a certain percentage of the purchase price indicated in the financial futures contract. Subsequent payments are made or received by a Fund (margin maintenance) each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for book purposes as unrealized gains or losses by a Fund. A Fund's investment in 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 credit balances used to reduce the Funds' custodian fees are reported as a reduction of total expenses in the Statement of Operations. 2 AUCTION PREFERRED SHARES (APS) Each Fund issued Auction Preferred Shares on January 15, 2003 in a public offering. The underwriting discounts and other offering costs were recorded as a reduction of capital of the common shares of each Fund. Dividends on the APS, which accrue daily, are cumulative at a rate which was established at the offering of each Fund's APS and generally have been reset every seven days thereafter by an auction unless a special dividend period has been set. Initially, the Insured Municipal Fund II elected an Initial Dividend Period for Series B of 360 days. Effective January 9, 2004, a special dividend period was set on the Series B shares of the Insured Municipal Fund II. The dividend rate, which matures on January 7, 2005, is 1.06%. Series A and Series B are identical in all respects except for the dates of reset for the dividend rates. Auction Preferred Shares issued and outstanding as of September 30, 2004 and dividend rate ranges for the year ended September 30, 2004 are as indicated below:
PREFERRED SHARES DIVIDENDS RATE FUND ISSUED AND OUTSTANDING RANGES ------------------------------------------------------------------------------ Insured Municipal II Fund Series A 1,750 0.45% - 1.75% Insured Municipal II Fund Series B 1,750 1.06% - 1.35% Insured California Fund II 1,350 0.40% - 1.50% Insured Florida Fund 900 0.45% - 1.30% Insured Massachusetts Fund 620 0.45% - 1.75% Insured Michigan Fund 540 0.60% - 1.45% Insured New Jersey Fund 900 0.40% - 2.00% Insured New York Fund II 900 0.45% - 1.51% Insured Ohio Fund 875 0.75% - 1.75% Insured Pennsylvania Fund 1,040 0.82% - 1.75%
63 The APS are redeemable at the option of each Fund at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends on any dividend payment date. The APS are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if any Fund is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS shall remain unpaid in an amount equal to two full years' dividends, the holders of the APS as a class have the right to elect a majority of the Board of Trustees. In general, the holders of the APS and the Common Shares have equal voting rights of one vote per share, except that the holders of the APS, as a separate class, have the right to elect at least two members of the Board of Trustees. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. Each Fund is required to maintain certain asset coverage with respect to the APS as defined in each Trust's By-Laws and the Investment Company Act of 1940. Each Fund pays an annual fee equivalent to 0.25% of the preferred shares liquidation value for the remarketing efforts associated with the preferred auction. 3 DISTRIBUTIONS TO SHAREHOLDERS Each Fund intends to make monthly distributions of net investment income, after payments of any dividends on any outstanding APS. Distributions are recorded on the ex-dividend date. Distributions 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 rates for Auction Preferred Shares on September 30, 2004 are listed below. For the year ended September 30, 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 AVERAGE NET INVESTMENT APS APS INCOME AND DIVIDEND DIVIDEND RATES REALIZED GAIN FOR RATES FOR AS OF THE YEAR ENDED THE YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, FUND 2004 2004 2004 ---------------------------------------------------------------------------------------- Insured Municipal Fund II Series A 0.89% 425,901 0.97% Insured Municipal Fund II Series B 1.06% 543,549 1.24% Insured California Fund II 1.10% 306,879 0.91% Insured Florida Fund 1.00% 213,308 0.95% Insured Massachusetts Fund 1.40% 149,005 0.96% Insured Michigan Fund 1.45% 134,802 1.00% Insured New Jersey Fund 1.51% 210,579 0.94% Insured New York Fund II 1.51% 202,607 0.90% Insured Ohio Fund 1.50% 222,263 1.02% Insured Pennsylvania Fund 1.45% 276,329 1.06%
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 difference in method for accreting market discount and amortizing premiums. The tax character of distributions paid for the years ended September 30, 2004 and for the period from the start of business, November 29, 2002 to September 30, 2003 was as follows:
INSURED INSURED INSURED MUNICIPAL II CALIFORNIA II FLORIDA ------------------------------------------------------------------------------------ YEAR ENDED 9/30/04 Distributions declared from: Tax-exempt income $ 10,715,305 $ 3,944,086 $ 2,577,020 Ordinary income $ 1,738,046 $ 76,309 $ 88,904 Long-term capital gain -- $ 170,193 $ 131,832 PERIOD ENDED 9/30/03 Distributions declared from: Tax-exempt income $ 7,778,655 $ 2,792,069 $ 1,872,500
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INSURED INSURED INSURED MASSACHUSETTS MICHIGAN NEW JERSEY ------------------------------------------------------------------------------------ YEAR ENDED 9/30/04 Distributions declared from: Tax-exempt income $ 1,774,782 $ 1,564,667 $ 2,625,409 Ordinary income $ 244,245 -- $ 349,671 Long-term capital gain $ 177,009 -- $ 214,826 PERIOD ENDED 9/30/03 Distributions declared from: Tax-exempt income $ 1,276,077 $ 1,104,383 $ 1,867,451
INSURED INSURED INSURED NEW YORK II OHIO PENNSYLVANIA ------------------------------------------------------------------------------------ YEAR ENDED 9/30/04 Distributions declared from: Tax-exempt income $ 2,621,004 $ 2,546,347 $ 2,998,851 Ordinary income $ 514,935 $ 43,959 $ 309,085 Long-term capital gain $ 89,770 $ 45,858 $ 136,034 PERIOD ENDED 9/30/03 Distributions declared from: Tax-exempt income $ 1,895,841 $ 1,837,742 $ 2,174,471
During the year ended September 30, 2004, the following amounts were reclassified due to differences between book and tax accounting for amortization and accretion on debt securities, market discount on disposal of securities, and capital losses:
INSURED INSURED INSURED MUNICIPAL II CALIFORNIA II FLORIDA ------------------------------------------------------------------------------------ Increase (decrease): Paid in capital $ (1,833) $ (102) $ (371) Accumulated net realized gain/(loss) on investments $ 48,475 $ 16,767 $ 8,266 Accumulated undistributed income $ (46,642) $ (16,665) $ (7,895)
INSURED INSURED INSURED MASSACHUSETTS MICHIGAN NEW JERSEY ------------------------------------------------------------------------------------ Increase (decrease): Paid in capital $ (636) -- $ (674) Accumulated net realized gain/(loss) on investments $ 7,391 $ 11,056 $ 1,494 Accumulated undistributed income $ (6,755) $ (11,056) $ (820)
INSURED INSURED INSURED NEW YORK II OHIO PENNSYLVANIA ------------------------------------------------------------------------------------ Increase (decrease): Paid in capital $ (1,190) $ (115) $ (663) Accumulated net realized gain/(loss) on investments $ 9,416 $ 22,128 $ 5,462 Accumulated undistributed income $ (8,226) $ (22,013) $ (4,799)
These changes had no effect on the net assets or net asset value per share of the Funds. As of September 30, 2004, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
INSURED INSURED INSURED MUNICIPAL II CALIFORNIA II FLORIDA ------------------------------------------------------------------------------------ Undistributed Income $ 1,637,028 $ 466,403 $ 243,538 Capital loss carryforward -- -- -- Unrealized gain $ 6,766,389 $ 1,795,774 $ 1,522,186 Other temporary differences $ (51,759) $ (995,822) $ (916,238)
INSURED INSURED INSURED MASSACHUSETTS MICHIGAN NEW JERSEY ------------------------------------------------------------------------------------ Undistributed Income $ 291,640 $ 208,342 $ 449,398 Capital loss carryforward -- $ (113,378) -- Unrealized gain $ 1,590,603 $ 1,372,662 $ 2,544,932 Other temporary differences $ (664,842) $ (458,068) $ (939,030)
INSURED INSURED INSURED NEW YORK II OHIO PENNSYLVANIA ------------------------------------------------------------------------------------ Undistributed Income $ 305,412 $ 146,312 $ 310,301 Capital loss carryforward -- $ (37,328) -- Unrealized gain $ 2,036,118 $ 1,704,612 $ 1,521,395 Other temporary differences $ (468,593) $ (650,925) $ (1,173,144)
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 year ended September 30, 2004, the fee was equivalent to 0.55% of each Fund's average weekly gross assets and amounted to 65 $1,281,462, $494,512, $328,560, $225,727, $195,467, $331,927, $331,401, $319,329 and $377,313 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 year ended September 30, 2004, EVM contractually waived $349,490, $134,867, $89,607, $61,562, $53,309, $90,526, $90,382, $87,090 and $102,904 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 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. Certain officers and one Trustee of each Fund are officers of the above organization. During the year ended September 30, 2004, certain Funds engaged in purchase and sale transactions with other Funds that also utilize EVM or Boston Management and Research, a wholly-owned subsidiary of EVM, as an investment adviser. These purchase and sale transactions complied with Rule 17a-7 under the Investment Company Act of 1940 and amounted to:
FUND PURCHASES SALES ------------------------------------------------------------------ Insured Florida -- $ 512,305 Insured Massachusetts -- $ 1,226,682
5 INVESTMENTS Purchases and sales of investments, other than U.S. Government securities and short-term obligations, for the year ended September 30, 2004 were as follows: INSURED MUNICIPAL FUND II Purchases $ 79,558,626 Sales 88,318,549 INSURED CALIFORNIA FUND II Purchases $ 11,631,911 Sales 15,079,073 INSURED FLORIDA FUND Purchases $ 11,151,362 Sales 11,678,450 INSURED MASSACHUSETTS FUND Purchases $ 15,954,104 Sales 17,881,783 INSURED MICHIGAN FUND Purchases $ 2,922,313 Sales 3,871,241 INSURED NEW JERSEY FUND Purchases $ 13,441,706 Sales 15,346,393 INSURED NEW YORK FUND II Purchases $ 16,782,850 Sales 19,010,459 INSURED OHIO FUND Purchases $ 14,268,587 Sales 15,863,229 INSURED PENNSYLVANIA FUND Purchases $ 11,635,018 Sales 13,099,740
66 6 FEDERAL INCOME TAX BASIS OF UNREALIZED APPRECIATION (DEPRECIATION) The cost and unrealized appreciation (depreciation) in value of the investments owned by each Fund at September 30, 2004, as computed for Federal income tax purposes, were as follows: INSURED MUNICIPAL FUND II AGGREGATE COST $ 226,726,909 ------------------------------------------------------------------ Gross unrealized appreciation $ 8,786,440 Gross unrealized depreciation (1,178,083) ------------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 7,608,357 ------------------------------------------------------------------ INSURED CALIFORNIA FUND II AGGREGATE COST $ 85,082,937 ------------------------------------------------------------------ Gross unrealized appreciation $ 2,120,061 Gross unrealized depreciation -- ------------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 2,120,061 ------------------------------------------------------------------ INSURED FLORIDA FUND AGGREGATE COST $ 57,123,319 ------------------------------------------------------------------ Gross unrealized appreciation $ 1,736,216 Gross unrealized depreciation -- ------------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 1,736,216 ------------------------------------------------------------------ INSURED MASSACHUSETTS FUND AGGREGATE COST $ 39,269,957 ------------------------------------------------------------------ Gross unrealized appreciation $ 1,763,546 Gross unrealized depreciation (21,353) ------------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 1,742,193 ------------------------------------------------------------------ INSURED MICHIGAN FUND AGGREGATE COST $ 33,715,519 ------------------------------------------------------------------ Gross unrealized appreciation $ 1,546,968 Gross unrealized depreciation -- ------------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 1,546,968 ------------------------------------------------------------------ INSURED NEW JERSEY FUND AGGREGATE COST $ 57,442,276 ------------------------------------------------------------------ Gross unrealized appreciation $ 2,744,158 Gross unrealized depreciation (9,738) ------------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 2,734,420 ------------------------------------------------------------------ INSURED NEW YORK FUND II AGGREGATE COST $ 57,008,544 ------------------------------------------------------------------ Gross unrealized appreciation $ 2,263,450 Gross unrealized depreciation -- ------------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 2,263,450 ------------------------------------------------------------------ INSURED OHIO FUND AGGREGATE COST $ 55,551,257 ------------------------------------------------------------------ Gross unrealized appreciation $ 1,965,451 Gross unrealized depreciation (23,980) ------------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 1,941,471 ------------------------------------------------------------------ INSURED PENNSYLVANIA FUND AGGREGATE COST $ 65,531,399 ------------------------------------------------------------------ Gross unrealized appreciation $ 1,766,232 Gross unrealized depreciation -- ------------------------------------------------------------------ NET UNREALIZED APPRECIATION $ 1,766,232 ------------------------------------------------------------------
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 were as follows:
INSURED MUNICIPAL FUND II --------------------------------- YEAR ENDED SEPTEMBER 30, --------------------------------- 2004 2003(1) ------------------------------------------------------------------------------------ Sales -- 9,897,891 ------------------------------------------------------------------------------------ Shares issued pursuant to the Fund's dividend reinvestment plan 8,524 3,023 ------------------------------------------------------------------------------------ NET INCREASE 8,524 9,900,914 ------------------------------------------------------------------------------------
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INSURED CALIFORNIA FUND II --------------------------------- YEAR ENDED SEPTEMBER 30, --------------------------------- 2004 2003(1) ------------------------------------------------------------------------------------ Sales -- 3,844,564 ------------------------------------------------------------------------------------ Shares issued pursuant to the Fund's dividend reinvestment plan 4,287 26 ------------------------------------------------------------------------------------ NET INCREASE 4,287 3,844,590 ------------------------------------------------------------------------------------ INSURED FLORIDA FUND --------------------------------- YEAR ENDED SEPTEMBER 30, --------------------------------- 2004 2003(1) ------------------------------------------------------------------------------------ Sales -- 2,535,523 ------------------------------------------------------------------------------------ Shares issued pursuant to the Fund's dividend reinvestment plan 7,561 13,733 ------------------------------------------------------------------------------------ NET INCREASE 7,561 2,549,256 ------------------------------------------------------------------------------------ INSURED MASSACHUSETTS FUND --------------------------------- YEAR ENDED SEPTEMBER 30, --------------------------------- 2004 2003(1) ------------------------------------------------------------------------------------ Sales -- 1,736,767 ------------------------------------------------------------------------------------ Shares issued pursuant to the Fund's dividend reinvestment plan 3,155 606 ------------------------------------------------------------------------------------ NET INCREASE 3,155 1,737,373 ------------------------------------------------------------------------------------ INSURED MICHIGAN FUND --------------------------------- YEAR ENDED SEPTEMBER 30, --------------------------------- 2004 2003(1) ------------------------------------------------------------------------------------ Sales -- 1,500,707 ------------------------------------------------------------------------------------ Shares issued pursuant to the Fund's dividend reinvestment plan 1,114 556 ------------------------------------------------------------------------------------ NET INCREASE 1,114 1,501,263 ------------------------------------------------------------------------------------ INSURED NEW JERSEY FUND --------------------------------- YEAR ENDED SEPTEMBER 30, --------------------------------- 2004 2003(1) ------------------------------------------------------------------------------------ Sales -- 2,546,634 ------------------------------------------------------------------------------------ Shares issued pursuant to the Fund's dividend reinvestment plan 3,742 553 ------------------------------------------------------------------------------------ NET INCREASE 3,742 2,547,187 ------------------------------------------------------------------------------------ INSURED NEW YORK FUND II --------------------------------- YEAR ENDED SEPTEMBER 30, --------------------------------- 2004 2003(1) ------------------------------------------------------------------------------------ Sales -- 2,546,647 ------------------------------------------------------------------------------------ Shares issued pursuant to the Fund's dividend reinvestment plan 303 289 ------------------------------------------------------------------------------------ NET INCREASE 303 2,546,936 ------------------------------------------------------------------------------------ INSURED OHIO FUND --------------------------------- YEAR ENDED SEPTEMBER 30, --------------------------------- 2004 2003(1) ------------------------------------------------------------------------------------ Sales -- 2,496,446 ------------------------------------------------------------------------------------ Shares issued pursuant to the Fund's dividend reinvestment plan 5,040 1,073 ------------------------------------------------------------------------------------ NET INCREASE 5,040 2,497,519 ------------------------------------------------------------------------------------ INSURED PENNSYLVANIA FUND --------------------------------- YEAR ENDED SEPTEMBER 30, --------------------------------- 2004 2003(1) ------------------------------------------------------------------------------------ Sales -- 2,930,531 ------------------------------------------------------------------------------------ Shares issued pursuant to the Fund's dividend reinvestment plan 2,128 426 ------------------------------------------------------------------------------------ NET INCREASE 2,128 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. 68 A summary of obligations under these financial instruments at September 30, 2004 is as follows: FUTURES CONTRACTS
EXPIRATION AGGREGATE NET UNREALIZED FUND DATE CONTRACTS POSITION COST VALUE DEPRECIATION -------------------------------------------------------------------------------------------------------------------------------- Insured Municipal II 12/04 500 U.S. Treasury Bond Short $ (55,267,407) $ (56,109,375) $ (841,968) -------------------------------------------------------------------------------------------------------------------------------- Insured California II 12/04 200 U.S. Treasury Bond Short $ (22,119,463) $ (22,443,750) $ (324,287) -------------------------------------------------------------------------------------------------------------------------------- Insured Florida 12/04 132 U.S. Treasury Bond Short $ (14,598,845) $ (14,812,875) $ (214,030) -------------------------------------------------------------------------------------------------------------------------------- Insured Massachusetts 12/04 80 U.S. Treasury Bond Short $ (8,825,910) $ (8,977,500) $ (151,590) -------------------------------------------------------------------------------------------------------------------------------- Insured Michigan 12/04 85 U.S. Treasury Bond Short $ (9,364,288) $ (9,538,594) $ (174,306) -------------------------------------------------------------------------------------------------------------------------------- Insured New Jersey 12/04 100 U.S. Treasury Bond Short $ (11,032,387) $ (11,221,875) $ (189,488) -------------------------------------------------------------------------------------------------------------------------------- Insured New York II 12/04 135 U.S. Treasury Bond Short $ (14,922,199) $ (15,149,531) $ (227,332) -------------------------------------------------------------------------------------------------------------------------------- Insured Ohio 12/04 125 U.S. Treasury Bond Short $ (13,790,485) $ (14,027,344) $ (236,859) -------------------------------------------------------------------------------------------------------------------------------- Insured Pennsylvania 12/04 151 U.S. Treasury Bond Short $ (16,700,194) $ (16,945,031) $ (244,837) --------------------------------------------------------------------------------------------------------------------------------
At September 30, 2004, each Fund had sufficient cash and/or securities to cover margin requirements on open future contracts. 9 OVERDRAFT ADVANCES Pursuant to the custodian agreement between the Funds and Investors Bank & Trust (the Bank), the Bank may in its discretion advance funds to the Funds to make properly authorized payments. When such payments result in an overdraft by the Funds, the Funds are obligated to repay the Bank at the current rate of interest charged by the Bank for secured loans (currently, a rate above the federal funds rate). This obligation is payable on demand to the Bank. At September 30, 2004, the Insured Municipal Fund II, the Insured Florida Fund, the Insured Massachusetts Fund and the Insured New Jersey Fund had payments due to the Bank pursuant to the foregoing arrangement of $1,183,720, $315,862, $86,339 and $142,053, respectively. 10 ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED) Each Fund held its Annual Meeting of Shareholders on July 23, 2004. The following action was taken by the shareholders of each Fund: Item 1: The election of James B. Hawkes and Samuel L. Hayes, III as Class II Trustees of the Fund for a three-year term expiring in 2007. Mr. Hayes was designated the Nominee to be elected by APS shareholders:
NOMINEE FOR NOMINEE FOR CLASS II TRUSTEE CLASS II TRUSTEE ELECTED BY APS ELECTED BY ALL SHAREHOLDERS: SHAREHOLDERS FUND SAMUEL L. HAYES, III JAMES B. HAWKES --------------------------------------------------------------------------------- Insured Municipal Fund II For 3,500 8,292,491 Withheld 0 53,208 --------------------------------------------------------------------------------- Insured California Fund II For 1,263 3,141,957 Withheld 0 6,111 --------------------------------------------------------------------------------- Insured Florida Fund For 828 2,033,100 Withheld 1 15,837 --------------------------------------------------------------------------------- Insured Massachusetts Fund For 620 1,499,861 Withheld 0 13,265 --------------------------------------------------------------------------------- Insured Michigan Fund For 366 1,352,686 Withheld 0 12,292 --------------------------------------------------------------------------------- Insured New Jersey Fund For 816 2,237,926 Withheld 0 7,525 --------------------------------------------------------------------------------- Insured New York Fund II For 810 2,127,167 Withheld 0 42,138 --------------------------------------------------------------------------------- Insured Ohio Fund For 864 1,931,250 Withheld 0 17,366 --------------------------------------------------------------------------------- Insured Pennsylvania Fund For 943 2,571,100 Withheld 0 32,401 ---------------------------------------------------------------------------------
69 EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2004 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE TRUSTEES AND SHAREHOLDERS OF EATON VANCE INSURED MUNICIPAL BOND FUND II, EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND II, EATON VANCE INSURED FLORIDA MUNICIPAL BOND FUND, EATON VANCE INSURED MASSACHUSETTS MUNICIPAL BOND FUND, EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND, EATON VANCE INSURED NEW JERSEY MUNICIPAL BOND FUND, EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND II, EATON VANCE INSURED OHIO MUNICIPAL BOND FUND, AND EATON VANCE INSURED PENNSYLVANIA MUNICIPAL BOND FUND : We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Eaton Vance Insured Municipal Bond Fund II, Eaton Vance Insured California Municipal Bond Fund II, Eaton Vance Insured Florida Municipal Bond Fund, Eaton Vance Insured Massachusetts Municipal Bond Fund, Eaton Vance Insured Michigan Municipal Bond Fund, Eaton Vance Insured New Jersey Municipal Bond Fund, Eaton Vance Insured New York Municipal Bond Fund II, Eaton Vance Insured Ohio Municipal Bond Fund, and Eaton Vance Insured Pennsylvania Municipal Bond Fund (the "Funds") as of September 30, 2004, and the related statements of operations for the year then ended and the statements of changes in net assets and financial highlights for the year then ended and for the period from the start of business, November 29, 2002 to September 30, 2003. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. Our procedures included confirmation of securities held as of September 30, 2004 by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements and financial highlights, referred to above, present fairly, in all material respects, the financial position of Eaton Vance Insured Municipal Bond Fund II, Eaton Vance Insured California Municipal Bond Fund II, Eaton Vance Insured Florida Municipal Bond Fund, Eaton Vance Insured Massachusetts Municipal Bond Fund, Eaton Vance Insured Michigan Municipal Bond Fund, Eaton Vance Insured New Jersey Municipal Bond Fund, Eaton Vance Insured New York Municipal Bond Fund II, Eaton Vance Insured Ohio Municipal Bond Fund, and Eaton Vance Insured Pennsylvania Municipal Bond Fund at September 30, 2004, the results of their operations, the changes in their net assets and their financial highlights for the year then ended and for the period from the start of business, November 29, 2002 to September 30, 2004, in conformity with accounting principles generally accepted in the United States of America. DELOITTE & TOUCHE LLP Boston, Massachusetts November 17, 2004 70 EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2004 FEDERAL TAX INFORMATION (Unaudited) The Form 1099-DIV you receive in January 2005 will show the tax status of all distributions paid to your account in calendar 2004. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in the Fund. As required by the Internal Revenue Code regulations, shareholders must be notified within 60 days of the Fund's fiscal year end regarding exempt-interest dividends and capital gains dividends. EXEMPT-INTEREST DIVIDENDS -- The Funds designate the following amounts of dividends from net investment income as an exempt-interest dividend. Insured Municipal Bond Fund II 100.00% Insured California Municipal Bond Fund II 100.00% Insured Florida Municipal Bond Fund 100.00% Insured Massachusetts Municipal Bond Fund 100.00% Insured Michigan Municipal Bond Fund 100.00% Insured New Jersey Municipal Bond Fund 100.00% Insured New York Municipal Bond Fund II 100.00% Insured Ohio Municipal Bond Fund 100.00% Insured Pennsylvania Municipal Bond Fund 100.00%
CAPITAL GAINS DIVIDENDS -- The Funds designate the following amounts as capital gain dividends. Insured Municipal Bond Fund II -- Insured California Municipal Bond Fund II $ 170,193 Insured Florida Municipal Bond Fund $ 131,832 Insured Massachusetts Municipal Bond Fund $ 177,009 Insured Michigan Municipal Bond Fund -- Insured New Jersey Municipal Bond Fund $ 214,826 Insured New York Municipal Bond Fund II $ 89,770 Insured Ohio Municipal Bond Fund $ 45,858 Insured Pennsylvania Municipal Bond Fund $ 136,034
71 EATON VANCE INSURED MUNICIPAL BOND FUNDS MANAGEMENT AND ORGANIZATION FUND MANAGEMENT. The Trustees and officers of Eaton Vance Insured Municipal Bond Fund II (EIV), Eaton Vance Insured California Municipal Bond Fund II (EIA), Eaton Vance Insured Florida Municipal Bond Fund (EIF), Eaton Vance Insured Massachusetts Municipal Bond Fund (MAB), Eaton Vance Insured Michigan Municipal Bond Fund (MIW), Eaton Vance Insured New Jersey Municipal Bond Fund (EMJ), Eaton Vance Insured New York Municipal Bond Fund II (NYH), Eaton Vance Insured Ohio Municipal Bond Fund (EIO), and Eaton Vance Pennsylvania Municipal Bond Fund (EIP), (the Funds) are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. The "noninterested Trustees" consist of those Trustees who are not "interested persons" of the Funds, as that term is defined under the 1940 Act. The business address of each Trustee and officer is The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109. As used below, "EVC" refers to Eaton Vance Corp., "EV" refers to Eaton Vance, Inc., "EVM" refers to Eaton Vance Management, "BMR" refers to Boston Management and Research and "EVD" refers to Eaton Vance Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is the Funds' principal underwriter and a wholly-owned subsidiary of EVM.
TERM OF NUMBER OF PORTFOLIOS POSITION(S) OFFICE AND IN FUND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH FUNDS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD - ---------------------------------------------------------------------------------------------------------------------------------- INTERESTED TRUSTEE James B. Hawkes Trustee Until 2007. 3 Chairman, President and 195 Director of EVC 11/9/41 and Vice years. Trustee Chief Executive Officer of President since 2002. BMR, EVC, EVM and EV; Director of EV; Vice President and Director of EVD. Trustee and/or officer of 195 registered investment companies in the Eaton Vance Fund Complex. Mr.Hawkes is an interested person because of his positions with BMR, EVM, EVC and EV, which are affiliates of the Funds. NONINTERESTED TRUSTEE(S) Samuel L. Hayes, Trustee(A) Until 2007. 3 Jacob H. Schiff Professor of 195 Director of Tiffany & Co. III years. Trustee Investment Banking Emeritus, (specialty retailer) and 2/23/35 since 2002. Harvard University Graduate Telect, Inc. School of Business (telecommunication Administration. services company) William H. Park Trustee Until 2006. 3 President and Chief 195 None 9/19/47 years. Trustee Executive Officer, Prizm since 2003. Capital Management, LLC (investment management firm) (since 2002). Executive Vice President and Chief Financial Officer, United Asset Management Corporation (a holding company owning institutional investment management firms) (1982-2001). Ronald A. Trustee Until 2005. 3 Professor of Law, Georgetown 195 None Pearlman years. Trustee University Law Center (since 7/10/40 since 2003. 1999). Tax Partner, Covington & Burling, Washington, DC (1991-2000). Norton H. Reamer Trustee (A) Until 2005. 3 President, Chief Executive 195 None 9/21/35 years. Trustee Officer and a Director of since 2002. Asset Management Finance Corp. (a specialty finance company serving the investment management industry) (since October 2003). President, Unicorn Corporation (an investment and financial advisory services company) (since September 2000). Formerly, Chairman, Hellman, Jordan Management Co., Inc. (an investment management company) (2000-2003). Formerly, Advisory Director of Berkshire Capital Corporation (investment banking firm) (2002-2003). Formerly Chairman of the Board, United Asset Management Corporation (a holding company owning institutional investment management firms) and Chairman, President and Director, UAM Funds (mutual funds) (1980-2000).
72
TERM OF NUMBER OF PORTFOLIOS POSITION(S) OFFICE AND IN FUND COMPLEX NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY DATE OF BIRTH FUNDS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD - ---------------------------------------------------------------------------------------------------------------------------------- NONINTERESTED TRUSTEE(S) (CONTINUED) Lynn A. Stout Trustee Until 2005. 3 Professor of Law, University 195 None 9/14/57 years. Trustee of California at Los Angeles since 2002. School of Law (since July 2001). Formerly, Professor of Law, Georgetown University Law Center.
PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES
TERM OF POSITION(S) OFFICE AND NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) DATE OF BIRTH FUNDS SERVICE DURING PAST FIVE YEARS - ---------------------------------------------------------------------------------------------------------------------------------- Thomas J. Fetter President Since 2002 Vice President of EVM and BMR. Officer of 124 8/20/43 registered investment companies managed by EVM or BMR. William H. Ahern, Jr. Vice President of Vice President of MIW Vice President of EVM and BMR. Officer of 78 registered 7/28/59 MIW and EIV since 2002; of EIV since investment companies managed by EVM or BMR. 2004 Craig R. Brandon Vice President of EIF Since 2004 Vice President of EVM and BMR. Officer of 44 12/31/66 registered investment companies managed by EVM or BMR. Cynthia J. Clemson Vice President Vice President of EIA, Vice President of EVM and BMR. Officer of 84 3/2/63 EIF and EIP since 2002; registered investment companies managed by EVM or BMR. of EIV, MAB, MIW, EMJ, NYH and EIO since 2004 Robert B. MacIntosh Vice President Since 2002 Vice President of EVM and BMR. Officer of 124 1/22/57 registered investment companies managed by EVM or BMR. Alan R. Dynner Secretary Since 2002 Vice President, Secretary and Chief Legal Officer of 10/10/40 BMR, EVM, EVD, EV and EVC. Officer of 195 registered investment companies managed by EVM or BMR. James L. O'Connor Treasurer Since 2002 Vice President of BMR, EVM and EVD. Officer of 116 4/1/45 registered investment companies managed by EVM or BMR. Paul M. O'Neil Chief Compliance Since 2004 Vice President of BMR and EVM. Officer of 195 7/11/53 Officer registered investment companies managed by EVM and BMR.
(1) Includes both master and feeder funds in a master-feeder structure. (A) APS Trustee. 73 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. 74 EATON VANCE INSURED MUNICIPAL BOND FUNDS APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan. The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan. --------------------------------------------- Please print exact name on account --------------------------------------------- Shareholder signature Date --------------------------------------------- Shareholder signature Date Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign. YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY. THIS AUTHORIZATION FORM, WHEN SIGNED, SHOULD BE MAILED TO THE FOLLOWING ADDRESS: Eaton Vance Insured Municipal Bond Funds c/o PFPC Inc. P.O. Box 43027 Providence, RI 02940-3027 800-331-1710 NUMBER OF EMPLOYEES Each Fund is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end, nondiversified, management investment company and has no employees. NUMBER OF SHAREHOLDERS As of September 30, 2004, our records indicate that there are 36, 12, 8, 6, 10, 10, 21, 24 and 57 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 4,900, 1,700, 1,300, 2,200, 1,000, 2,600, 1,300, 1,500 and 1,900 shareholders owning the Fund shares in street name, such as through brokers, banks, and financial intermediaries for Insured Municipal Fund II, Insured California Fund II, Insured Florida Fund, Insured Massachusetts Fund, Insured Michigan Fund, Insured New Jersey Fund, Insured New York Fund II, Insured Ohio Fund and Insured Pennsylvania Fund, respectively. If you are a street name shareholder and wish to receive Fund reports directly, which contain important information about a Fund, please write or call: Eaton Vance Distributors, Inc. The Eaton Vance Building 255 State Street Boston, MA 02109 1-800-225-6265 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 75 This Page Intentionally Left Blank This Page Intentionally Left Blank INVESTMENT ADVISER AND ADMINISTRATOR OF EATON VANCE INSURED MUNICIPAL BOND FUNDS EATON VANCE MANAGEMENT The Eaton Vance Building 255 State Street Boston, Ma 02109 CUSTODIAN INVESTORS BANK & TRUST COMPANY 200 Clarendon Street Boston, Ma 02116 TRANSFER AGENT AND DIVIDEND DISBURSING AGENT PFPC INC. Attn: Eaton Vance Insured Municipal Bond Funds P.O. Box 43027 Providence, RI 02940-3027 (800) 331-1710 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DELOITTE & TOUCHE LLP 200 Berkeley Street Boston, MA 02116-5022 EATON VANCE INSURED MUNICIPAL BOND FUNDS THE EATON VANCE BUILDING 255 STATE STREET BOSTON, MA 02109 1557-11/04 8IMBIISRC 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended September 30, 2003 and September 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- Audit Fees $ 25,132 $ 28,263 Audit-Related Fees(1) 3,500 3,600 Tax Fees(2) 5,400 6,100 All Other Fees(3) 0 0 ----------------------------- Total $ 34,032 $ 37,963 =============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. During the fiscal year ended September 30, 2004, $35,000 was billed by D&T, the principal accountant for certain of the Series, for work done in connection with its Rule 17Ad-13 examination of Eaton Vance Management's assertion that it has maintained an effective internal control structure over the sub-transfer agent and registrar functions, such services being pre-approved in accordance with Rule 2-01(c) (7) (ii) of Regulation S-X. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- REGISTRANT $ 8,900 $ 9,700 EATON VANCE(1) $ 448,295 $ 329,084
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. 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 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 Applicable. 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: November 17, 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: November 17, 2004 By: /s/ Thomas J. Fetter ------------------------------------------ Thomas J. Fetter President Date: November 17, 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended September 30, 2003 and September 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- Audit Fees $ 19,055 $ 24,679 Audit-Related Fees(1) 3,500 3,600 Tax Fees(2) 5,400 6,100 All Other Fees(3) 0 0 ----------------------------- Total $ 27,955 $ 34,379 =============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant's auction preferred shares. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- REGISTRANT $ 8,900 $ 9,700 EATON VANCE(1) $ 448,295 $ 329,084
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. 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 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 Applicable. 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 MUNICIPAL BOND FUND II By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 17, 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: November 17, 2004 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 17, 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended September 30, 2003 and September 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- Audit Fees $ 16,171 $ 21,898 Audit-Related Fees(1) 3,500 3,600 Tax Fees(2) 5,400 6,100 All Other Fees(3) 0 0 ----------------------------- Total $ 25,071 $ 31,598 =============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant's auction preferred shares. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- REGISTRANT $ 8,900 $ 9,700 EATON VANCE(1) $ 448,295 $ 329,084
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. 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 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 Applicable. 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: November 17, 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: November 17, 2004 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 17, 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended September 30, 2003 and September 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- Audit Fees $ 13,596 $ 21,898 Audit-Related Fees(1) 3,500 3,600 Tax Fees(2) 5,400 6,100 All Other Fees(3) 0 0 ----------------------------- Total $ 22,496 $ 31,598 =============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant's auction preferred shares. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- REGISTRANT $ 8,900 $ 9,700 EATON VANCE(1) $ 448,295 $ 329,084
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. 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 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 Applicable. 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: November 17, 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: November 17, 2004 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 17, 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended September 30, 2003 and September 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- Audit Fees $ 13,557 $ 17,654 Audit-Related Fees(1) 3,500 3,600 Tax Fees(2) 5,400 6,100 All Other Fees(3) 0 0 ----------------------------- Total $ 22,457 $ 27,354 =============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant's auction preferred shares. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- REGISTRANT $ 8,900 $ 9,700 EATON VANCE(1) $ 448,295 $ 329,084
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. 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 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 applicable. 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. INSURED MICHIGAN MUNICIPAL BOND FUND By: /s/Thomas J. Fetter ------------------------- Thomas J. Fetter President Date: November 17, 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: November 17, 2004 ----------------- By: /s/Thomas J. Fetter --------------------- Thomas J. Fetter President Date: November 17, 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended September 30, 2003 and September 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- Audit Fees $ 16,171 $ 20,435.20 Audit-Related Fees(1) 3,500 3,600 Tax Fees(2) 5,400 6,100 All Other Fees(3) 0 0 ----------------------------- Total $ 25,071 $ 27,354.20 =============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. During the fiscal year ended September 30, 2004, $35,000 was billed by D&T, the principal accountant for certain of the Series, for work done in connection with its Rule 17Ad-13 examination of Eaton Vance Management's assertion that it has maintained an effective internal control structure over the sub-transfer agent and registrar functions, such services being pre-approved in accordance with Rule 2-01(c) (7) (ii) of Regulation S-X. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- REGISTRANT $ 8,900 $ 9,700 EATON VANCE(1) $ 448,295 $ 329,084
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. 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 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 applicable. 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. INSURED NEW JERSEY MUNICIPAL BOND FUND By: /s/Thomas J. Fetter ------------------------ Thomas J. Fetter President Date: November 17, 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: November 17, 2004 ----------------- By: /s/Thomas J. Fetter ------------------------ Thomas J. Fetter President Date: November 17, 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended September 30, 2003 and September 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- Audit Fees $ 16,171 $ 20,435 Audit-Related Fees(1) 3,500 3,600 Tax Fees(2) 5,400 6,100 All Other Fees(3) 0 0 ----------------------------- Total $ 25,071 $ 30,135 =============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. During the fiscal year ended September 30, 2004, $35,000 was billed by D&T, the principal accountant for certain of the Series, for work done in connection with its Rule 17Ad-13 examination of Eaton Vance Management's assertion that it has maintained an effective internal control structure over the sub-transfer agent and registrar functions, such services being pre-approved in accordance with Rule 2-01(c) (7) (ii) of Regulation S-X. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- REGISTRANT $ 8,900 $ 9,700 EATON VANCE(1) $ 448,295 $ 329,084
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. 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 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 Applicable. 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: November 17, 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: November 17, 2004 By: /s/ Thomas J. Fetter ------------------------------------------ Thomas J. Fetter President Date: November 17, 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended September 30, 2003 and September 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- Audit Fees $ 16,171 $ 21,898 Audit-Related Fees(1) 3,500 3,600 Tax Fees(2) 5,400 6,100 All Other Fees(3) 0 0 ----------------------------- Total $ 25,071 $ 31,598 =============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant's auction preferred shares. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- REGISTRANT $ 8,900 $ 9,700 EATON VANCE(1) $ 448,295 $ 329,084
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. 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 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 Applicable. 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: November 17, 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: November 17, 2004 By: /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Date: November 17, 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 (a) -(d) The following table presents the aggregate fees billed to the registrant for the registrant's fiscal years ended September 30, 2003 and September 30, 2004 by the registrant's principal accountant for professional services rendered for the audit of the registrant's annual financial statements and fees billed for other services rendered by the principal accountant during such period.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- Audit Fees $ 16,132 $ 44,846.20 Audit-Related Fees(1) 3,500 4,950 Tax Fees(2) 5,400 6,100 All Other Fees(3) 0 0 ----------------------------- Total $ 25,032 $ 55,896.20 =============================
(1) Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees. (2) Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning. (3) All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. During the fiscal year ended September 30, 2004, $35,000 was billed by D&T, the principal accountant for certain of the Series, for work done in connection with its Rule 17Ad-13 examination of Eaton Vance Management's assertion that it has maintained an effective internal control structure over the sub-transfer agent and registrar functions, such services being pre-approved in accordance with Rule 2-01(c) (7) (ii) of Regulation S-X. (e)(1) The registrant's audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant's principal accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the audit committee. The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant's audit committee at least annually. The registrant's audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant's principal accountant. (e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant's audit committee pursuant to the "de minimis exception" set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the registrant by its principal accountant for the registrant's last two fiscal years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed for services rendered to the Eaton Vance organization for the registrant's last two fiscal years.
FISCAL YEAR ENDED 9/30/03 9/30/04 - -------------------------------------------------------------------------------- REGISTRANT $ 8,900 $ 11,050 EATON VANCE(1) $ 448,295 $ 329,084
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the registrant's investment adviser and administrator. (h) The registrant's audit committee has considered whether the provision by the registrant's principal accountant of non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members of the registrant's audit committee. 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 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 applicable. 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. INSURED PENNSYLVANIA MUNICIPAL BOND FUND By: /s/Thomas J. Fetter ------------------------ Thomas J. Fetter President Date: November 17, 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: November 17, 2004 ----------------- By: /s/Thomas J. Fetter ------------------------ Thomas J. Fetter President Date: November 17, 2004 ----------------- EX-99.CERT 2 a2148042zex-99_cert.txt EXHIBIT-99.CERT Exhibit 99.cert EATON VANCE INSURED MUNICIPAL BOND FUND II FORM N-CSR EXHIBIT 11(a)(2)(i) 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: November 17, 2004 /s/ James L. O'Connor --------------------- James L O'Connor Treasurer EATON VANCE INSURED MUNICIPAL BOND FUND II FORM N-CSR EXHIBIT 11(a)(2)(ii) 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: November 17, 2004 /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Exhibit 99.cert EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND II FORM N-CSR EXHIBIT 11(a)(2)(i) CERTIFICATION I, James L O'Connor, certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured California Municipal Bond Fund II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying 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: November 17, 2004 /s/ James L. O'Connor -------------------------- James L O'Connor Treasurer EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND II FORM N-CSR EXHIBIT 11(a)(2)(ii) CERTIFICATION I, Thomas J. Fetter certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured California Municipal Bond Fund II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying 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: November 17, 2004 /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Exhibit 99.cert EATON VANCE INSURED FLORIDA MUNICIPAL BOND FUND FORM N-CSR EXHIBIT 11(a)(2)(i) 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: November 17, 2004 /s/ James L. O'Connor --------------------- James L O'Connor Treasurer EATON VANCE INSURED FLORIDA MUNICIPAL BOND FUND FORM N-CSR EXHIBIT 11(a)(2)(ii) 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: November 17, 2004 /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Exhibit 99.cert EATON VANCE INSURED MASSACHUSETTS MUNICIPAL BOND FUND FORM N-CSR EXHIBIT 11(a)(2)(i) 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: November 17, 2004 /s/ James L. O'Connor --------------------- James L O'Connor Treasurer EATON VANCE INSURED MASSACHUSETTS MUNICIPAL BOND FUND FORM N-CSR EXHIBIT 11(a)(2)(ii) 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: November 17, 2004 /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Exhibit 99.cert EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND FORM N-CSR EXHIBIT 11(a)(2)(i) 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: November 17, 2004 /s/James L. O'Connor ----------------------- James L. O'Connor Treasurer EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND FORM N-CSR EXHIBIT 11(a)(2)(ii) 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: November 17, 2004 /s/Thomas J. Fetter -------------------------- Thomas J. Fetter President Exhibit 99.cert EATON VANCE INSURED NEW JERSEY MUNICIPAL BOND FUND FORM N-CSR EXHIBIT 11(a)(2)(i) 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: November 17, 2004 /s/James L. O'Connor --------------------- James L. O'Connor Treasurer EATON VANCE INSURED NEW JERSEY MUNICIPAL BOND FUND FORM N-CSR EXHIBIT 11(a)(2)(ii) 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: November 17, 2004 /s/Thomas J. Fetter --------------------- Thomas J. Fetter President Exhibit 99.cert EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND II FORM N-CSR EXHIBIT 11(a)(2)(i) 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: November 17, 2004 /s/ James L. O'Connor --------------------- James L O'Connor Treasurer EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND II FORM N-CSR EXHIBIT 11(a)(2)(ii) 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: November 17, 2004 /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Exhibit 99.cert EATON VANCE INSURED OHIO MUNICIPAL BOND FUND FORM N-CSR EXHIBIT 11(a)(2)(i) 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: November 17, 2004 /s/ James L. O'Connor --------------------- James L. O'Connor Treasurer EATON VANCE INSURED OHIO MUNICIPAL BOND FUND FORM N-CSR EXHIBIT 11(a)(2)(ii) 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: November 17, 2004 /s/ Thomas J. Fetter -------------------- Thomas J. Fetter President Exhibit 99.cert EATON VANCE INSURED PENNSYLVANIA MUNICIPAL BOND FUND FORM N-CSR EXHIBIT 11(a)(2)(i) 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: November 17, 2004 /s/James L. O'Connor --------------------- James L. O'Connor Treasurer EATON VANCE INSURED PENNSYLVANIA MUNICIPAL BOND FUND FORM N-CSR EXHIBIT 11(a)(2)(ii) CERTIFICATION I, Thomas J. Fetter certify that: 1. I have reviewed this report on Form N-CSR of Eaton Vance Insured Pennsylvania Municipal Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying 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: November 17, 2004 /s/Thomas J. Fetter ----------------------- Thomas J. Fetter President EX-99.906CERT 3 a2148042zex-99_906cert.txt EXHIBIT-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 Annual Report of the Fund on Form N-CSR for the period ended September 30, 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: November 17, 2004 ----------------- /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: November 17, 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 MUNICIPAL BOND FUND II (the "Fund"), that: (a) the Annual Report of the Fund on Form N-CSR for the period ended September 30, 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: November 17, 2004 ----------------- /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: November 17, 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 Annual Report of the Fund on Form N-CSR for the period ended September 30, 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: November 17, 2004 ----------------- /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: November 17, 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 Annual Report of the Fund on Form N-CSR for the period ended September 30, 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: November 17, 2004 ----------------- /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: November 17, 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 Annual Report of the Fund on Form N-CSR for the period ended September 30, 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: November 17, 2004 ----------------- /s/James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: November 17, 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 Annual Report of the Fund on Form N-CSR for the period ended September 30, 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: November 17, 2004 ----------------- /s/James L. O'Connor - ----------------------- James L. O'Connor Treasurer Date: November 17, 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 Annual Report of the Fund on Form N-CSR for the period ended September 30, 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: November 17, 2004 ----------------- /s/ James L. O'Connor - ------------------------ James L. O'Connor Treasurer Date: November 17, 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 Annual Report of the Fund on Form N-CSR for the period ended September 30, 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: November 17, 2004 ----------------- /s/ James L. O'Connor - --------------------- James L. O'Connor Treasurer Date: November 17, 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 PENNSYLVANIA MUNICIPAL BOND FUND (the "Fund"), that: (a) the Annual Report of the Fund on Form N-CSR for the period ended September 30, 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: November 17, 2004 ----------------- /s/James L. O'Connor - ------------------------ James L. O'Connor Treasurer Date: November 17, 2004 ----------------- /s/Thomas J. Fetter - ----------------------- Thomas J. Fetter President -----END PRIVACY-ENHANCED MESSAGE-----