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)

 

(Zip code)

 

Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(617) 482-8260

 

 

Date of fiscal year end:

September 30

 

 

Date of reporting period:

March 31, 2006

 

 



 

Item 1. Reports to Stockholders

 



Semiannual Report March 31, 2006

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



IMPORTANT NOTICES REGARDING PRIVACY,
DELIVERY OF SHAREHOLDER DOCUMENTS,
PORTFOLIO HOLDINGS AND PROXY VOTING

Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy ("Privacy 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. This may include information such as name, address, social security number, tax status, account balances and transactions.

•  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). In the normal course of servicing a customer's account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker/dealers.

•  Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information.

•  We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com.

Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Boston Management and Research, and Eaton Vance Distributors, Inc.

In addition, our Privacy Policy only applies to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer's account (i.e., fund shares) is held in the name of a third-party financial adviser/ broker-dealer, it is likely that only such adviser's privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures.

For more information about Eaton Vance's Privacy Policy, please call 1-800-262-1122.

Delivery of Shareholder Documents. The Securities and Exchange Commission (the "SEC") 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.

Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio (if applicable) will file a schedule of its portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The 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).

Proxy Voting. 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 (if applicable) 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 and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12 month period ended June 30, without charge, upon request, by calling 1-800-262-1122. This description is also available on the SEC's website at www.sec.gov.




 

Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

TABLE OF CONTENTS

 

Investment Update

2

 

 

Performance Information and Portfolio Composition

 

 

 

Insured Municipal Bond Fund II

3

Insured California Municipal Bond Fund II

4

Insured Florida Municipal Bond Fund

5

Insured Massachusetts Municipal Bond Fund

6

Insured Michigan Municipal Bond Fund

7

Insured New Jersey Municipal Bond Fund

8

Insured New York Municipal Bond Fund II

9

Insured Ohio Municipal Bond Fund

10

Insured Pennsylvania Municipal Bond Fund

11

 

 

Financial Statements

12

 

 

Dividend Reinvestment Plan

69

 

 

Board of Trustees’ Annual Approval of the Investment Advisory Agreements

71

 

 

Investment Management

74

 

1



 

Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

INVESTMENT UPDATE

 

Eaton Vance Insured Municipal Bond Funds (the “Funds”) are designed to provide current income exempt from regular federal income tax, federal alternative minimum tax and, in state specific funds, state personal income taxes. The Funds invest primarily in high-grade municipal securities that are insured as to the timely payment of principal and interest.

 

Economic and Market Conditions

 

The economy expanded at a 4.8% pace in the first quarter of 2006, an increase from the 1.7% rate in the fourth quarter. Even with a cooling housing market, the economy generated respectable growth in 2005 and early 2006. Despite high energy prices, rising mortgage rates and a persistent tightening by the Federal Reserve (the “Fed”), the economy continued to create jobs – 211,000 in March 2006. The economy appeared to be sustaining growth in both the manufacturing and service sectors, with moderate signs of inflationary pressures.

 

Investor sentiment regarding the Fed’s monetary policy appears to have stabilized in recent months as investors have begun to anticipate the end of the Fed’s series of interest rate hikes (which began in June 2004). The Fed has raised rates at all of the last 15 Open Market Committee meetings, with the current Federal Funds rate standing at 4.75%.

 

Boosted by lower-than-anticipated long-term interest rates, the municipal market saw record supply in 2005, more than $400 billion in new issuance. However, supply has lagged thus far in 2006, contributing to municipal bond outperformance. At March 31, 2006, long-term AAA-rated insured municipal bonds yielded 93% of U.S. Treasury bonds with similar maturities.*

 

For the six months ended March 31, 2006, the Lehman Brothers Municipal Bond Index (the “Index”), a broad-based, unmanaged municipal market index, posted a modest gain of 0.98%. For information about each Fund’s performance and the performance of funds in the same Lipper Classification, see the Performance Information and Portfolio Composition pages that follow.  

 

Management Discussion

 

The Funds invest primarily in bonds with maturities of 10 years or longer, as longer-maturity bonds historically have provided greater tax-exempt income for investors than shorter-maturity bonds. Given the flattening of the yield curve for fixed-income securities over the past 18 months — with shorter-maturity yields rising more than longer-maturity yields — the long end of the curve was a relatively attractive place to be positioned. However, given the leveraged nature of the Funds, rising short-term rates have increased the borrowing costs associated with the leverage. As borrowing costs have risen, the income generated by the Funds has declined. Please see the Performance Information and Portfolio Compostion pages that follow for a description of each Fund’s leverage as of March 31, 2006.

 

During the six months ended March 31, 2006, the Fed raised short-term interest rates at regular intervals, and commodities prices rose significantly. However, the economy grew at a solid pace, with moderate inflation. In this climate, Fund management continued to maintain a somewhat cautious outlook on interest rates and positioned the Funds’ durations accordingly. Duration measures a bond fund’s sensitivity to changes in interest rates.

 

During the past year, management invested in bonds with attractive coupons and long call protection. These strategies contributed positively to the Funds’ performances over the 6-month period.

 

Management continued to focus on finding relative value within the marketplace — in issuer names, coupons, maturities and sectors. Relative value trading, which seeks to capitalize on undervalued securities, has enhanced the Funds’ returns during the year. Finally, management continued to monitor closely call protection in the Funds. Call protection remains an important strategic consideration for municipal bond investors, especially because refinancing activity has increased over the past six months.

 


*Source: Bloomberg L.P. Yields are a compilation of a representative variety of general obligations and are not necessarily representative of a Fund’s yield.

It is not possible to invest directly in an Index or Lipper Classification. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.

Past performance is no guarantee of future results.

 

Fund shares 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.

 

The views expressed throughout this report are those of the 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 the investment adviser disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund are based on many factors, may not be relied on as an indication of trading intent on behalf of any Eaton Vance fund.

 

2



 

Eaton Vance Insured Municipal Bond Fund II as of March 31, 2006

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance as of 3/31/06(1)

 

 

 

 

 

 

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

 

 

 

 

Six Months

 

-4.80

%

One Year

 

6.15

 

Life of Fund (11/29/02)

 

8.29

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

 

 

 

 

Six Months

 

4.25

%

One Year

 

8.96

 

Life of Fund (11/29/02)

 

9.47

 

 


(1)         Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

 

Index Performance(2)

 

 

 

 

 

 

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

0.98

%

One Year

 

3.81

 

Life of Fund (11/30/02)

 

4.72

 

 

 

 

 

Lipper Averages(3)

 

 

 

 

 

 

 

Lipper Insured Municipal Debt Funds (Leveraged) Classification - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

1.16

%

One Year

 

4.79

 

Life of Fund (11/30/02)

 

6.02

 

 

 

 

 

Market Yields

 

 

 

 

 

 

 

Market Yield(4)

 

5.42

%

Taxable Equivalent Market Yield(5)

 

8.34

 

 

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 sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

 

Portfolio Manager: William H. Ahern, CFA

 

Rating Distribution(6), (7)

 

By total investments

 

 

Fund Statistics(7)

 

• Number of Issues:

 

67

 

• Average Maturity:

 

27.3 years

 

• Effective Maturity:

 

10.0 years

 

• Average Rating:

 

AA+

 

• Average Call:

 

8.9 years

 

• Average Dollar Price:

 

$94.87

 

• Leverage:*

 

36%

 

 


*                 The leverage amount is a percentage 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).

 

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only. (3) The Lipper Averages are the average total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Insured Municipal Debt Funds (Leveraged) Classification contained 26, 26 and 26 funds for the 6-month, 1-year and Life-of-Fund time periods, respectively. Lipper Averages are available as of month end only. (4) The Fund’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate would result in a lower tax-equivalent figure. (6) As of 3/31/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (7) Fund information may not be representative of the Fund’s current or future investments and may change due to active management.

 

3



 

Eaton Vance Insured California Municipal Bond Fund II as of March 31, 2006

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance as of 3/31/06(1)

 

 

 

 

 

 

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

 

 

 

 

Six Months

 

2.67

%

One Year

 

6.09

 

Life of Fund (11/29/02)

 

7.35

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

 

 

 

 

Six Months

 

3.37

%

One Year

 

8.27

 

Life of Fund (11/29/02)

 

7.66

 

 


(1)         Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

 

Index Performance (2)

 

 

 

 

 

 

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

0.98

%

One Year

 

3.81

 

Life of Fund (11/30/02)

 

4.72

 

 

 

 

 

LipperAverages (3)

 

 

 

 

 

 

 

Lipper California Insured Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

1.55

%

One Year

 

5.53

 

Life of Fund (11/30/02)

 

6.24

 

 

 

 

 

Market Yields

 

 

 

 

 

 

 

Market Yield (4)

 

5.19

%

Taxable Market Yield Equivalent (5)

 

8.80

 

 

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 sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

 

Portfolio Manager: Cynthia J. Clemson

 

Rating Distribution(6), (7)

 

By total investments

 

 

Fund Statistics(7)

 

• Number of Issues:

 

47

 

• Average Maturity:

 

25.2 years

 

• Effective Maturity:

 

9.6 years

 

• Average Rating:

 

AAA

 

• Average Call:

 

8.7 years

 

• Average Dollar Price:

 

$94.89

 

• Leverage:*

 

37%

 

 


*   The leverage amount is a percentage 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).

 

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only.(3) The Lipper Averages are the average total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper California Insured Municipal Debt Funds Classification contained 13, 13 and 13 funds for the 6-month, 1-year and Life-of-Fund time periods, respectively. Lipper Averages are available as of month end only. (4) The Fund’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent figure assumes a maximum 41.05% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. (6) As of 3/31/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (7) Fund information may not be representative of the Fund’s current or future investments and may change due to active management.

 

4



 

Eaton Vance Insured Florida Municipal Bond Fund as of March 31, 2006

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance as of 3/31/06(1)

 

 

 

 

 

 

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

 

 

 

 

Six Months

 

-3.13

%

One Year

 

5.98

 

Life of Fund (11/29/02)

 

5.88

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

 

 

 

 

Six Months

 

2.63

%

One Year

 

6.98

 

Life of Fund (11/29/02)

 

7.49

 

 


(1)         Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

 

Index Performance(2)

 

 

 

 

 

 

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

0.98

%

One Year

 

3.81

 

Life of Fund (11/30/02)

 

4.72

 

 

 

 

 

Lipper Averages(3)

 

 

 

 

 

 

 

Lipper Florida Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

1.30

%

One Year

 

4.84

 

Life of Fund (11/30/02)

 

6.31

 

 

 

 

 

Market Yields

 

 

 

 

 

 

 

Market Yield (4)

 

5.02

%

Taxable Equivalent Market Yield(5)

 

7.72

 

 

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 sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

 

Portfolio Manager: Craig R. Brandon, CFA

 

Rating Distribution(6), (7)

 

By total investments

 

 

Fund Statistics(7)

 

• Number of Issues:

 

57

 

• Average Maturity:

 

24.9 years

 

• Effective Maturity:

 

10.1 years

 

• Average Rating:

 

AAA

 

• Average Call:

 

8.6 years

 

• Average Dollar Price:

 

$95.55

 

• Leverage:*

 

36%

 

 


*                 The leverage amount is a percentage 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).

 

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only. (3) The Lipper Averages are the average total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Florida Municipal Debt Funds Classification contained 17, 17 and 16 funds for the 6-month, 1-year and Life-of-Fund time periods, respectively. Lipper Averages are available as of month end only. (4) The Fund’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate would result in a lower tax-equivalent figure. (6) As of 3/31/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (7) Fund information may not be representative of the Fund’s current or future investments and may change due to active management.

 

5



 

Eaton Vance Insured Massachusetts Municipal Bond Fund as of March 31, 2006

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance as of 3/31/06(1)

 

 

 

 

 

 

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

 

 

 

 

Six Months

 

-8.14

%

One Year

 

-0.62

%

Life of Fund (11/29/02)

 

9.11

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

 

 

 

 

Six Months

 

3.16

%

One Year

 

7.54

 

Life of Fund (11/29/02)

 

8.37

 

 


(1)   Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

 

Index Performance(2)

 

 

 

 

 

 

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

0.98

%

One Year

 

3.81

 

Life of Fund (11/30/02)

 

4.72

 

 

 

 

 

LipperAverages(3)

 

 

 

 

 

 

 

Lipper Other States Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

1.03

%

One Year

 

5.01

 

Life of Fund (11/30/02)

 

6.89

 

 

 

 

 

Market Yields

 

 

 

 

 

 

 

Market Yield(4)

 

4.95

%

Taxable Equivalent Market Yield(5)

 

8.04

 

 

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 sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

 

Portfolio Manager: Robert B. MacIntosh, CFA

 

Rating Distribution(6), (7)

 

By total investments

 

 

Fund Statistics(7)

 

• Number of Issues:

 

38

 

• Average Maturity:

 

27.8 years

 

• Effective Maturity:

 

12.5 years

 

• Average Rating:

 

AA+

 

• Average Call:

 

10.5 years

 

• Average Dollar Price:

 

$100.71

 

• Leverage:*

 

36%

 

 


*      The leverage amount is a percentage 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).

 

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only. (3) The Lipper Averages are the average total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification contained 44, 44 and 44 funds for the 6-month, 1-year and Life-of-Fund time periods, respectively. Lipper Averages are available as of month end only. (4) The Fund’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent figure assumes a maximum 38.45% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. (6) As of 3/31/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (7) Fund information may not be representative of the Fund’s current or future investments and may change due to active management.

 

6



 

Eaton Vance Insured Michigan Municipal Bond Fund as of March 31, 2006

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance as of 3/31/06(1)

 

 

 

 

 

 

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

 

 

 

 

Six Months

 

-5.84

%

One Year

 

-5.24

 

Life of Fund (11/29/02)

 

7.27

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

 

 

 

 

Six Months

 

2.93

%

One Year

 

7.80

 

Life of Fund (11/29/02)

 

7.66

 

 


(1)         Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

 

Index Performance(2)

 

 

 

 

 

 

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

0.98

%

One Year

 

3.81

 

Life of Fund (11/30/02)

 

4.72

 

 

 

 

 

LipperAverages(3)

 

 

 

 

 

 

 

Lipper Michigan Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

1.10

%

One Year

 

5.02

 

Life of Fund (11/30/02)

 

 6.64

 

 

 

 

 

Market Yields

 

 

 

 

 

 

 

Market Yield(4)

 

5.04

%

Taxable Market Yield Equivalent(5)

 

 8.07

 

 

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 sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

 

Portfolio Manager: William H. Ahern, CFA

 

Rating Distribution(6), (7)

 

By total investments

 

 

Fund Statistics(7)

 

• Number of Issues:

 

32

 

• Average Maturity:

 

24.1 years

 

• Effective Maturity:

 

8.2 years

 

• Average Rating:

 

AA+

 

• Average Call:

 

7.9 years

 

• Average Dollar Price:

 

$97.28

 

• Leverage:*

 

37%

 

 


*                 The leverage amount is a percentage 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).

 

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only. (3) The Lipper Averages are the average total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Michigan Municipal Debt Funds Classification contained 7, 7 and 7 funds for the 6-month, 1-year and Life-of-Fund time periods, respectively. Lipper Averages are available as of month end only. (4) The Fund’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent figure assumes a maximum 37.54% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. (6) As of 3/31/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (7) Fund information may not be representative of the Fund’s current or future investments and may change due to active management.

 

7



 

Eaton Vance Insured New Jersey Municipal Bond Fund as of March 31, 2006

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance as of 3/31/06(1)

 

 

 

 

 

 

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

 

 

 

 

Six Months

 

-0.54

%

One Year

 

9.70

 

Life of Fund

 

9.61

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

 

 

 

 

Six Months

 

2.88

%

One Year

 

7.12

 

Life of Fund (11/29/02)

 

8.64

 

 


(1)         Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

 

Index Performance (2)

 

 

 

 

 

 

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

0.98

%

One Year

 

3.81

 

Life of Fund (11/30/02)

 

4.72

 

 

 

 

 

LipperAverages (3)

 

 

 

 

 

 

 

Lipper New Jersey Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

1.45

%

One Year

 

5.71

 

Life of Fund (11/30/02)

 

7.61

 

 

 

 

 

Market Yields

 

 

 

 

 

 

 

Market Yield (4)

 

5.10

%

Taxable Equivalent Market Yield(5)

 

8.62

 

 

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 sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

 

Portfolio Manager: Robert B. MacIntosh, CFA

 

Rating Distribution(6), (7)

 

By total investments

 

 

Fund Statistics(7)

 

• Number of Issues:

 

52

 

• Average Maturity:

 

25.5 years

 

• Effective Maturity:

 

12.9 years

 

• Average Rating:

 

AA+

 

• Average Call:

 

11.9 years

 

• Average Dollar Price:

 

$90.83

 

• Leverage:*

 

36%

 

 


*                 The leverage amount is a percentage 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).

 

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only. (3) The Lipper Averages are the average total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper New Jersey Municipal Debt Funds Classification contained 13, 13 and 13 funds for the 6-month, 1-year and Life-of-Fund time periods, respectively. Lipper Averages are available as of month end only. (4) The Fund’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent figure assumes a maximum 40.83% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. (6) As of 3/31/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (7) Fund information may not be representative of the Fund’s current or future investments and may change due to active management.

 

8



 

Eaton Vance Insured New York Municipal Bond Fund II as of March 31, 2006

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance as of 3/31/06(1)

 

Average Annual Total Return (by share price, American Stock Exchange)

 

Six Months

 

2.48

%

One Year

 

5.68

 

Life of Fund (11/29/02)

 

7.20

 

 

Average Annual Total Return (by net asset value)

 

Six Months

 

3.46

%

One Year

 

8.46

 

Life of Fund (11/29/02)

 

9.09

 

 

 


(1)   Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

 

Index Performance(2)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

Six Months

 

0.98

%

One Year

 

3.81

 

Life of Fund (11/30/02)

 

4.72

 

 

Lipper Averages(3)

 

Lipper New York Insured Municipal Debt Funds Classification - Average Annual Total Returns

 

Six Months

 

0.85

%

One Year

 

4.65

 

Life of Fund (11/30/02)

 

6.42

 

 

Market Yields

 

Market Yield(4)

 

4.82

%

Taxable Equivalent Market Yield(5)

 

8.03

 

 

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 sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

 

Portfolio Manager: Craig R. Brandon, CFA

 

Rating Distribution(6), (7)

 

By total investments

 

 

Fund Statistics(7)

 

Number of Issues:

 

47

 

Average Maturity:

 

26.3 years

 

Effective Maturity:

 

11.1 years

 

Average Rating:

 

AA+

 

Average Call:

 

10.5 years

 

Average Dollar Price:

 

$95.98

 

Leverage:*

 

36%

 

 


*      The leverage amount is a percentage 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).

 

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only.(3) The Lipper Averages are the average total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper New York Insured Municipal Debt Funds Classification contained 12, 12 and 12 funds for the 6-month, 1-year and Life-of-Fund time periods, respectively. Lipper Averages are available as of month end only. (4) The Fund’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent figure assumes a maximum 40.01% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. (6) As of 3/31/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (7) Fund information may not be representative of the Fund’s current or future investments and may change due to active management.

 

9



 

 

Eaton Vance Insured Ohio Municipal Bond Fund as of March 31, 2006

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance as of 3/31/06(1)

 

Average Annual Total Return (by share price, American Stock Exchange)

 

Six Months

 

4.13

%

One

 

3.61

 

Life of Fund (11/29/02)

 

6.88

 

 

Average Annual Total Return (by net asset value)

 

Six Months

 

3.54

%

One Year

 

7.74

 

Life of Fund (11/29/02)

 

7.40

 

 


(1)   Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

 

Index Performance(2)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

Six Months

 

0.98

%

One Year

 

3.81

 

Life of Fund (11/30/02)

 

4.72

 

 

Lipper Averages(3)

 

Lipper Other States Municipal Debt Funds Classification - Average Annual Total Returns

 

Six Months

 

1.03

%

One Year

 

5.01

%

Life of Fund (11/30/02)

 

6.89

 

 

Market Yields

 

Market Yield(4)

 

4.97

%

Taxable Equivalent Market Yield(5)

 

8.21

 

 

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 sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

 

Portfolio Manager: William H. Ahern, CFA

 

Rating Distribution(6), (7)

 

By total investments

 

 

Fund Statistics(7)

 

Number of Issues:

44

Average Maturity:

23.8 years

Effective Maturity:

9.9 years

Average Rating

AA+

Average Call:

9.7 years

Average Dollar Price:

$94.24

Leverage:*

36%

 

*      The leverage amount is a percentage 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).

 

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only.(3) The Lipper Averages are the average total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Other States Municipal Debt Funds Classification contained 44, 44 and 44 funds for the 6-month, 1-year and Life-of-Fund time periods, respectively. Lipper Averages are available as of month end only. (4) The Fund’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent figure assumes a maximum 39.47% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. (6) As of 3/31/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (7) Fund information may not be representative of the Fund’s current or future investments and may change due to active management.

 

10



 

Eaton Vance Insured Pennsylvania Municipal Bond Fund as of March 31, 2006

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance as of 3/31/06(1)

 

 

 

 

 

 

 

Average Annual Total Return (by share price, American Stock Exchange)

 

 

 

 

 

 

 

Six Months

 

-2.18

%

One Year

 

4.83

 

Life of Fund (11/29/02)

 

7.45

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

 

 

 

 

Six Months

 

3.81

%

One Year

 

10.35

 

Life of Fund (11/29/02)

 

8.07

 

 


(1)   Returns are historical and are calculated by determining the percentage change in share price or net asset value with all distributions reinvested. The Fund’s performance at market share price will differ from its results at NAV. Although share price performance generally reflects investment results over time, during shorter periods, returns at share price can also be affected by factors such as changing perceptions about the Fund, market conditions, fluctuations in supply and demand for the Fund’s shares, or changes in Fund distributions. Performance results reflect the effect of leverage resulting from the Fund’s issuance of Auction Preferred Shares.

 

Index Performance(2)

 

 

 

 

 

 

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

0.98

%

One Year

 

3.81

 

Life of Fund (11/30/02)

 

4.72

 

 

 

 

 

LipperAverages(3)

 

 

 

 

 

 

 

Lipper Pennsylvania Municipal Debt Funds Classification - Average Annual Total Returns

 

 

 

 

 

 

 

Six Months

 

1.36

%

One Year

 

5.44

 

Life of Fund (11/30/02)

 

7.00

 

 

 

 

 

Market Yields

 

 

 

 

 

 

 

Market Yield (4)

 

4.93

%

Taxable Equivalent Market Yield(5)

 

7.83

 

 

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 sold, may be worth more or less than their original cost. Fund performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. 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.

 

Portfolio Manager: Thomas M. Metzold, CFA

 

Rating Distribution(6), (7)

 

By total investments

 

 

Fund Statistics(7)

 

• Number of Issues:

 

57

 

• Average Maturity:

 

24.7 years

 

• Effective Maturity:

 

9.6 years

 

• Average Rating:

 

AAA

 

• Average Call:

 

9.2 years

 

• Average Dollar Price:

 

$96.78

 

• Leverage:*

 

37%

 

 


*                 The leverage amount is a percentage 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).

 

(2)   It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only. (3) The Lipper Averages are the average total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Pennsylvania Municipal Debt Funds Classification contained 9, 9 and 9 funds for the 6-month, 1-year and Life-of-Fund time periods, respectively. Lipper Averages are available as of month end only. (4) The Fund’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent figure assumes a maximum 37.00% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. (6) As of 3/31/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. 7 Fund information may not be representative of the Fund’s current or future investments and may change due to active management.

 

11



Eaton Vance Insured Municipal Bond Fund II as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 154.3%      
Principal Amount
(000's omitted)
 
Security
 
Value
 
Electric Utilities — 2.7%      
$ 2,500     Long Island Power Authority, NY, Electric Systems Revenue,
4.50%, 12/1/24
  $ 2,458,000    
  1,600     Sabine River Authority, TX, (TXU Energy Co. LLC),
5.20%, 5/1/28
    1,638,752    
            $ 4,096,752    
Escrowed / Prerefunded — 1.0%      
$ 1,250     Capital Trust Agency, FL, (Seminole Tribe Convention),
Prerefunded to 10/1/12, 8.95%, 10/1/33(1)
  $ 1,558,212    
            $ 1,558,212    
General Obligations — 7.3%      
$ 4,500     California, 5.25%, 4/1/30   $ 4,696,155    
  2,215     California, 5.50%, 11/1/33     2,407,151    
  4,000     New York City, NY, 5.25%, 1/15/33     4,191,440    
            $ 11,294,746    
Hospital — 9.3%      
$ 1,275     Brevard County, FL, Health Facilities Authority,
(Health First, Inc.), 5.00%, 4/1/36
  $ 1,296,586    
  3,335     California Health Facilities Financing Authority,
(Cedars-Sinai Medical Center), 5.00%, 11/15/34
    3,384,458    
  400     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.00%, 2/15/25
    402,112    
  900     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.00%, 2/15/35
    890,316    
  750     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.25%, 2/15/27
    762,990    
  380     Cuyahoga County, OH, (Cleveland Clinic Health System),
5.50%, 1/1/29
    402,773    
  500     Hawaii Department of Budget and Finance,
(Hawaii Pacific Health), 5.60%, 7/1/33
    517,430    
  1,000     Highlands County, FL, Health Facilities Authority,
(Adventist Health System), 5.375%, 11/15/35
    1,034,090    
  1,000     Lehigh County, PA, General Purpose Authority,
(Lehigh Valley Health Network), 5.25%, 7/1/32
    1,023,090    
  4,500     South Miami, FL, Health Facility Authority,
(Baptist Health), 5.25%, 11/15/33
    4,644,270    
            $ 14,358,115    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Electric Utilities — 11.9%      
$ 2,500     Burlington, KS, PCR, (Kansas Gas & Electric Co.),
(MBIA), 5.30%, 6/1/31
  $ 2,654,750    
  22,685     Chelan County, WA, Public Utility District No. 1,
(Columbia River), (MBIA), 0.00%, 6/1/23
    10,167,190    
  3,900     JEA, FL, Electric System, (FSA), 5.00%, 10/1/34     3,997,383    
  1,500     Municipal Energy Agency, NE, (Power Supply System),
(FSA), 5.00%, 4/1/36
    1,547,790    
            $ 18,367,113    
Insured-General Obligations — 19.6%      
$ 1,600     Alvin, TX, Independent School District, (MBIA),
3.25%, 2/15/27
  $ 1,281,600    
  2,550     Butler County, KS, Unified School District No. 394,
(FSA), 3.50%, 9/1/24
    2,214,114    
  1,640     California, (XLCA), Variable Rate, 8.415%, 10/1/28(1)(2)     1,798,309    
  1,515     Chicago, IL, (MBIA), 5.00%, 1/1/42     1,547,951    
  10,000     Chicago, IL, Board of Education, (FGIC), 0.00%, 12/1/23     4,424,000    
  1,000     Desert Sands, CA, Unified School District, (Election of 2001),
(FSA), 5.00%, 6/1/24
    1,045,270    
  4,830     King County, WA, (MBIA), 5.25%, 1/1/34     4,979,972    
  2,080     Philadelphia, PA, (FSA), Variable Rate, 8.378%, 9/15/31(1)(2)     2,221,253    
  770     Phoenix, AZ, (AMBAC), 3.00%, 7/1/28     595,172    
  5,490     Port Orange, FL, Capital Improvements, (FGIC),
5.00%, 10/1/35
    5,685,773    
  10,000     Washington, (Motor Vehicle Fuel), (MBIA), 0.00%, 12/1/23     4,378,400    
            $ 30,171,814    
Insured-Hospital — 2.7%      
$ 3,000     Maryland HEFA, (Medlantic/Helix Issue), (FSA),
Variable Rate, 9.30%, 8/15/38(1)(2)
  $ 4,119,420    
            $ 4,119,420    
Insured-Lease Revenue / Certificates of
Participation — 2.9%
     
$ 4,250     Massachusetts Development Finance Agency, (MBIA),
5.125%, 2/1/34
  $ 4,398,580    
    $ 4,398,580    
Insured-Other Revenue — 1.0%      
$ 1,500     Golden State Tobacco Securitization Corp., CA, (AGC),
5.00%, 6/1/45
  $ 1,530,300    
          $ 1,530,300    

 

See notes to financial statements

12



Eaton Vance Insured Municipal Bond Fund II as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Private Education — 3.7%      
$ 2,500     Massachusetts Development Finance Agency,
(Boston University), (XLCA), 6.00%, 5/15/59
  $ 3,071,250    
  2,500     Massachusetts Development Finance Agency,
(Franklin W. Olin College), (XLCA), 5.25%, 7/1/33
    2,624,975    
          $ 5,696,225    
Insured-Public Education — 7.7%      
$ 3,500     College of Charleston, SC, Academic and Administrative
Facilities, (XLCA), 5.125%, 4/1/30
  $ 3,647,770    
  5,335     University of California, (AMBAC), 5.00%, 9/1/27     5,508,921    
  2,500     University of Massachusetts Building Authority, (AMBAC),
5.25%, 11/1/29
    2,669,800    
          $ 11,826,491    
Insured-Sewer Revenue — 1.7%      
$ 2,575     Tacoma, WA, Sewer Revenue, (FGIC), 5.00%, 12/1/31   $ 2,635,384    
          $ 2,635,384    
Insured-Special Assessment Revenue — 1.5%      
$ 2,165     San Jose, CA, Redevelopment Agency Tax, (MBIA),
Variable Rate, 8.415%, 8/1/32(1)(2)
  $ 2,333,480    
          $ 2,333,480    
Insured-Special Tax Revenue — 4.4%      
$ 4,000     Metropolitan Pier and Exposition Authority, IL, (McCormick
Place Expansion), (MBIA), 5.25%, 6/15/42
  $ 4,212,800    
  2,500     New York Convention Center Development Corp., (AMBAC),
4.75%, 11/15/45
    2,501,975    
          $ 6,714,775    
Insured-Transportation — 31.8%      
$ 1,000     Central, TX, Regional Mobility Authority, (FGIC),
5.00%, 1/1/45
  $ 1,020,170    
  11,900     E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/22
    5,559,323    
  12,390     E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/24
    5,209,747    
  3,835     Massachusetts Turnpike Authority, Metropolitan Highway
System, (MBIA), Variable Rate, 8.375%, 1/1/37(1)(2)
    3,991,890    
  13,885     Nevada Department of Business and Industry, (Las Vegas
Monorail-1st Tier), (AMBAC), 0.00%, 1/1/20
    7,330,447    
  5,000     South Carolina Transportation Infrastructure, (AMBAC),
5.25%, 10/1/31
    5,276,800    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Transportation (continued)      
$ 10,000     Texas Turnpike Authority, (AMBAC), 5.00%, 8/15/42   $ 10,188,900    
  10,000     Triborough Bridge and Tunnel Authority, NY, (MBIA),
5.00%, 11/15/32
    10,314,900    
          $ 48,892,177    
Insured-Utilities — 8.4%      
$ 6,500     Los Angeles, CA, Department of Water and Power, (FGIC),
5.00%, 7/1/43
  $ 6,668,480    
  6,000     Philadelphia, PA, Gas Works Revenue, (FSA),
5.00%, 8/1/32
    6,179,580    
          $ 12,848,060    
Insured-Water and Sewer — 12.4%      
$ 2,240     Atlanta, GA, Water and Sewer, (FGIC), 5.00%, 11/1/38(3)   $ 2,269,478    
  4,895     Atlanta, GA, Water and Wastewater, (MBIA),
5.00%, 11/1/39
    5,006,802    
  8,155     Birmingham, AL, Waterworks and Sewer Board, (MBIA),
5.00%, 1/1/37
    8,391,903    
  1,950     New York City, NY, Municipal Water Finance Authority,
(Water and Sewer System), (AMBAC), 5.00%, 6/15/38
    2,007,486    
  1,275     Pittsburgh, PA, Water and Sewer Authority, (AMBAC),
Variable Rate, 8.76%, 12/1/27(1)(2)
    1,469,081    
          $ 19,144,750    
Insured-Water Revenue — 17.5%      
$ 2,330     Contra Costa, CA, Water District, (FSA), Variable Rate,
8.418%, 10/1/32(1)(2)
  $ 2,544,943    
  3,450     Detroit, MI, Water Supply System, (MBIA), Variable Rate,
8.25%, 7/1/34(1)(2)
    3,737,385    
  6,500     Massachusetts Water Resource Authority, (AMBAC),
4.00%, 8/1/40
    5,623,995    
  7,000     Metropolitan Water District, CA, (FGIC), 5.00%, 10/1/36     7,241,010    
  2,870     San Antonio, TX, Water Revenue, (FGIC), 5.00%, 5/15/23     2,981,413    
  4,610     Texas Southmost Regional Water Authority, (MBIA),
5.00%, 9/1/32
    4,722,853    
          $ 26,851,599    
Special Tax Revenue — 1.5%      
$ 750     New Jersey EDA, (Cigarette Tax), 5.50%, 6/15/24   $ 777,623    
  1,480     New Jersey EDA, (Cigarette Tax), 5.75%, 6/15/29     1,558,425    
          $ 2,336,048    
Transportation — 5.3%      
$ 7,980     Puerto Rico Highway and Transportation Authority,
5.125%, 7/1/43
  $ 8,121,166    
          $ 8,121,166    

 

See notes to financial statements

13



Eaton Vance Insured Municipal Bond Fund II as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Total Tax-Exempt Investments — 154.3%
(identified cost $225,809,153)
    $ 237,295,207    
Other Assets, Less Liabilities — 2.6%       $ 4,013,186    
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (56.9)%
      $ (87,500,475 )  
Net Assets Applicable to Common
Shares — 100.0%
      $ 153,807,918    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2006, 82.4% of total 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 0.6% to 34.9% of total investments.

(1)  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 March 31, 2006, the aggregate value of the securities is $23,773,973 or 15.5% of the Fund's net assets applicable to common shares.

(2)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2006.

(3)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

See notes to financial statements

14



Eaton Vance Insured California Municipal Bond Fund II as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 156.6%      
Principal Amount
(000's omitted)
 
Security
 
Value
 
General Obligations — 4.4%      
$ 900     California, 5.25%, 4/1/30   $ 939,231    
  1,465     California, 5.50%, 11/1/33     1,592,089    
          $ 2,531,320    
Hospital — 6.9%      
$ 925     California Health Facilities Financing Authority, (Cedars Sinai
Hospital), Variable Rate, 6.43%, 11/15/34(1)(2)
  $ 952,445    
  2,940     California Statewide Communities Development Authority,
(Huntington Memorial Hospital), 5.00%, 7/1/35
    2,997,595    
          $ 3,950,040    
Insured-Electric Utilities — 6.7%      
$ 1,475     Glendale Electric, (MBIA), 5.00%, 2/1/32   $ 1,519,014    
  1,650     Puerto Rico Electric Power Authority, (FSA), Variable Rate,
7.20%, 7/1/29(1)(2)
    1,841,268    
  455     Sacramento Municipal Electric Utility District, (FSA), Variable
Rate, 8.416%, 8/15/28(1)(3)
    497,329    
          $ 3,857,611    
Insured-General Obligations — 39.9%      
$ 1,250     California, (AMBAC), 5.00%, 4/1/27   $ 1,290,900    
  415     California, (XLCA), Variable Rate, 8.415%, 10/1/28(1)(3)     455,060    
  5,000     Clovis Unified School District, (FGIC), 0.00%, 8/1/20     2,579,950    
  2,000     Laguna Salada Union School District, (FGIC), 0.00%, 8/1/22     934,980    
  2,350     Long Beach Unified School District, (Election of 1999), (FSA),
5.00%, 8/1/31
    2,412,298    
  1,000     Los Angeles Unified School District, (FGIC), 5.00%, 7/1/22     1,053,280    
  1,945     Los Osos Community Services, Wastewater Assessment District,
(MBIA), 5.00%, 9/2/33
    2,001,619    
  1,000     Mount Diablo Unified School District, (FSA), 5.00%, 8/1/25     1,038,900    
  735     San Diego Unified School District, (MBIA), Variable Rate,
9.915%, 7/1/24(1)(3)
    1,050,484    
  4,300     San Mateo County Community College District, (Election
of 2001), (FGIC), 0.00%, 9/1/21
    2,101,023    
  1,750     Santa Ana Unified School District, (MBIA), 5.00%, 8/1/32     1,808,660    
  2,620     Santa Clara Unified School District, (Election of 2004), (FSA),
4.375%, 7/1/30
    2,526,807    
  1,000     Simi Valley Unified School District, (MBIA), 5.00%, 8/1/28     1,041,780    
  3,200     Union Elementary School District, (FGIC), 0.00%, 9/1/22     1,494,944    
  2,600     Union Elementary School District, (FGIC), 0.00%, 9/1/23     1,153,724    
          $ 22,944,409    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Lease Revenue / Certificates of
Participation — 20.6%
     
$ 4,000     Anaheim, Public Financing Authority Lease Revenue, (FSA),
5.00%, 3/1/37
  $ 4,061,000    
  4,250     California Public Works Board Lease Revenue, (Department of
General Services), (AMBAC), 5.00%, 12/1/27(4)
    4,387,020    
  2,250     Orange County Water District Certificates of Participation,
(MBIA), 5.00%, 8/15/34
    2,319,097    
  1,075     San Jose Financing Authority, (Civic Center), (AMBAC),
5.00%, 6/1/32
    1,104,003    
          $ 11,871,120    
Insured-Public Education — 15.7%      
$ 4,000     California State University, (AMBAC), 5.00%, 11/1/33   $ 4,116,160    
  1,000     University of California, (FGIC), 4.75%, 5/15/37     1,005,980    
  3,790     University of California, (FGIC), 5.125%, 9/1/31     3,928,032    
          $ 9,050,172    
Insured-Sewer Revenue — 4.4%      
$ 2,425     Los Angeles Wastewater Treatment System, (FGIC),
5.00%, 6/1/28
  $ 2,503,352    
          $ 2,503,352    
Insured-Special Assessment Revenue — 18.2%      
$ 2,500     Cathedral City Public Financing Authority, (Housing
Redevelopment), (MBIA), 5.00%, 8/1/33
  $ 2,585,025    
  2,500     Cathedral City Public Financing Authority, (Tax Allocation
Redevelopment), (MBIA), 5.00%, 8/1/33
    2,585,025    
  1,750     Irvine Public Facility and Infrastructure Authority Assessment,
(AMBAC), 5.00%, 9/2/26
    1,805,562    
  2,000     Murrieta Redevelopment Agency Tax, (MBIA), 5.00%, 8/1/32     2,069,160    
  1,335     San Jose Redevelopment Agency Tax, (MBIA), Variable Rate,
8.415%, 8/1/32(1)(3)
    1,438,890    
          $ 10,483,662    
Insured-Special Tax Revenue — 12.4%      
$ 2,000     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/28
  $ 704,020    
  1,060     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/37
    238,913    
  8,000     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/44
    1,263,360    
  1,000     San Francisco Bay Area Rapid Transportation District Sales
Tax Revenue, (AMBAC), 5.00%, 7/1/31
    1,026,140    
  3,750     San Francisco Bay Area Rapid Transportation District, (AMBAC),
5.125%, 7/1/36
    3,869,737    
          $ 7,102,170    

 

See notes to financial statements

15



Eaton Vance Insured California Municipal Bond Fund II as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Transportation — 15.7%      
$ 4,000     California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/36
  $ 4,133,520    
  2,250     Los Angeles County Metropolitan Transportation Authority,
(FGIC), 5.25%, 7/1/30
    2,379,150    
  6,670     San Joaquin Hills Transportation Corridor Agency, (MBIA),
0.00%, 1/15/27
    2,490,178    
          $ 9,002,848    
Insured-Utilities — 3.1%      
$ 1,750     Los Angeles Department of Water and Power, (FGIC),
5.125%, 7/1/41
  $ 1,796,725    
          $ 1,796,725    
Insured-Water Revenue — 4.2%      
$ 835     Contra Costa Water District, (FSA), Variable Rate,
8.418%, 10/1/32(1)(3)
  $ 912,029    
  1,630     San Francisco City and County Public Utilities Commission
Water Revenue, (FSA), 4.25%, 11/1/33
    1,527,506    
          $ 2,439,535    
Water Revenue — 4.4%      
$ 2,500     California Water Resource, (Central Valley),
5.00%, 12/1/29
  $ 2,544,625    
          $ 2,544,625    
  Total Tax-Exempt Investments — 156.6%
(identified cost $86,892,773)
        $ 90,077,589    
  Other Assets, Less Liabilities — 2.1%         $ 1,183,043    
  Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (58.7)%
        $ (33,755,543 )  
  Net Assets Applicable to Common
Shares — 100.0%
        $ 57,505,089    

 

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 March31, 2006, 90.0% of total 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 26.6% of total investments.

(1)  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 March 31, 2006, the aggregate value of the securities is $7,147,505 or 12.4% of the Fund's net assets applicable to common shares.

(2)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2006.

(3)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2006.

(4)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

See notes to financial statements

16



Eaton Vance Insured Florida Municipal Bond Fund as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 158.8%      
Principal Amount
(000's omitted)
 
Security
 
Value
 
Hospital — 11.5%      
$ 1,150     Brevard County, Health Facilities Authority,
(Health First, Inc.), 5.00%, 4/1/36
  $ 1,169,469    
  500     Highlands County, Health Facilities Authority, (Adventist
Glenoaks Hospital/Adventist Healthcare),
5.00%, 11/15/31
    505,110    
  1,160     Highlands County, Health Facilities Authority, (Adventist
Health), 5.25%, 11/15/23
    1,200,890    
  500     Orange County, Health Facilities Authority, (Orlando Regional
Healthcare), 5.125%, 11/15/39
    510,990    
  1,000     South Miami Health Facility Authority, (Baptist Health),
5.25%, 11/15/33
    1,032,060    
          $ 4,418,519    
Insured-Education — 3.7%      
$ 1,460     Broward County, Educational Facilities Authority, (Nova
Southeastern), (AGC), 4.50%, 4/1/36(1)
  $ 1,405,338    
          $ 1,405,338    
Insured-Electric Utilities — 11.9%      
$ 1,500     Deltona, Utility System Revenue, (MBIA), 5.00%, 10/1/33   $ 1,551,645    
  2,435     Jacksonville Electric Authority, Electric System Revenue,
(FSA), 4.75%, 10/1/34
    2,454,407    
  500     Puerto Rico Electric Power Authority, (FSA), Variable Rate,
7.20%, 7/1/29(2)(3)
    557,960    
          $ 4,564,012    
Insured-Escrowed / Prerefunded — 4.3%      
$ 1,025     Dade County, Professional Sports Franchise Facility, (MBIA),
Escrowed to Maturity, 5.25%, 10/1/30
  $ 1,150,706    
  440     Puerto Rico Infrastructure Financing Authority, (AMBAC),
Prerefunded to 1/1/08, Variable Rate,
8.076%, 7/1/28(2)(4)
    481,985    
          $ 1,632,691    
Insured-General Obligations — 9.0%      
$ 1,345     Florida Board of Education Capital Outlay,
(Public Education), (MBIA), 5.00%, 6/1/32
  $ 1,390,474    
  2,000     Florida Board of Education Capital Outlay,
(Public Education), (MBIA), 5.00%, 6/1/32(5)
    2,067,620    
          $ 3,458,094    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Hospital — 14.1%      
$ 1,000     Coral Gables Health Facilities Authority, (Baptist Health
System of South Florida), (FSA), 5.00%, 8/15/29
  $ 1,035,210    
  1,500     Miami-Dade County, Health Facilities Authority,
(Miami Children's Hospital), (AMBAC), 5.125%, 8/15/26
    1,555,140    
  1,510     Sarasota County, Public Hospital Board, (Sarasota Memorial
Hospital), (MBIA), 5.25%, 7/1/24(6)
    1,658,765    
  1,000     Sarasota County, Public Hospital Board, (Sarasota Memorial
Hospital), (MBIA), 5.50%, 7/1/28
    1,144,950    
          $ 5,394,065    
Insured-Miscellaneous — 9.3%      
$ 1,500     Miami-Dade County, (Professional Sports Franchise),
(MBIA), 4.75%, 10/1/30
  $ 1,508,145    
  2,000     Village Center Community Development District, (MBIA),
5.00%, 11/1/32
    2,063,000    
          $ 3,571,145    
Insured-Pooled Loans — 3.5%      
$ 1,520     Florida Municipal Loan Council Revenue, (MBIA),
0.00%, 4/1/23
  $ 693,454    
  1,520     Florida Municipal Loan Council Revenue, (MBIA),
0.00%, 4/1/24
    659,847    
          $ 1,353,301    
Insured-Sewer Revenue — 2.7%      
$ 1,000     Pinellas County, Sewer, (FSA), 5.00%, 10/1/32   $ 1,034,750    
          $ 1,034,750    
Insured-Special Assessment Revenue — 7.5%      
$ 2,780     Julington Creek, Plantation Community
Development District, (MBIA), 5.00%, 5/1/29
  $ 2,871,073    
          $ 2,871,073    
Insured-Special Tax Revenue — 37.4%      
$ 1,000     Bay County, Sales Tax, (AMBAC), 5.125%, 9/1/27   $ 1,042,100    
  1,250     Bay County, Sales Tax, (AMBAC), 5.125%, 9/1/32     1,298,163    
  1,000     Dade County, Special Obligation Residual Certificates,
(AMBAC), Variable Rate, 8.375%, 10/1/35(2)(4)
    1,054,620    
  1,500     Jacksonville Capital Improvements, (AMBAC), 5.00%, 10/1/30     1,544,850    
  3,750     Jacksonville Transportation, (MBIA), 5.00%, 10/1/31     3,843,225    
  1,275     Jacksonville, Excise Tax, (FGIC), 5.125%, 10/1/27     1,329,328    
  600     Miami-Dade County, Special Obligation, (MBIA),
0.00%, 10/1/35
    129,522    
  8,000     Miami-Dade County, Special Obligation, (MBIA),
0.00%, 10/1/39
    1,390,080    

 

See notes to financial statements

17



Eaton Vance Insured Florida Municipal Bond Fund as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Special Tax Revenue (continued)      
$ 225     Miami-Dade County, Special Obligation, (MBIA),
5.00%, 10/1/37
  $ 227,869    
  500     Orange County Tourist Development, (AMBAC),
5.125%, 10/1/25
    524,930    
  750     Orange County Tourist Development, (AMBAC), Variable Rate,
8.75%, 10/1/30(2)(4)
    835,815    
  445     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/28
    156,644    
  2,000     Puerto Rico Infrastructure Financing Authority, (FGIC),
0.00%, 7/1/42
    348,580    
  1,120     Sunrise Public Facility, (MBIA), 0.00%, 10/1/20     580,843    
          $ 14,306,569    
Insured-Transportation — 17.2%      
$ 1,500     Florida Turnpike Authority, Water& Sewer Revenue,
(Department of Transportation), (FGIC), 4.50%, 7/1/27
  $ 1,478,700    
  1,500     Miami-Dade County, Expressway Authority, (FGIC),
5.00%, 7/1/33
    1,553,730    
  1,605     Port Palm Beach District, (Improvements), (XLCA),
0.00%, 9/1/24
    680,969    
  1,950     Port Palm Beach District, (Improvements), (XLCA),
0.00%, 9/1/25
    786,708    
  1,700     Port Palm Beach District, (Improvements), (XLCA),
0.00%, 9/1/26
    651,933    
  330     Puerto Rico Highway and Transportation Authority, (FSA),
Variable Rate, 8.415%, 7/1/32(2)(4)
    362,360    
  940     Puerto Rico Highway and Transportation Authority, (MBIA),
Variable Rate, 8.419%, 7/1/36(2)(4)
    1,072,286    
          $ 6,586,686    
Insured-Utilities — 7.2%      
$ 1,550     Daytona Beach, Utility System Revenue, (AMBAC),
5.00%, 11/15/32
  $ 1,599,259    
  4,675     Port St. Lucie, Utility System Revenue, (MBIA), 0.00%, 9/1/32     1,138,503    
          $ 2,737,762    
Insured-Water and Sewer — 17.9%      
$ 640     Fort Myers, Utility System Revenue, (MBIA),
4.50%, 10/1/36(1)
  $ 625,965    
  1,500     Jacksonville Electric Authority, Water and Sewer System,
(MBIA), 4.75%, 10/1/30
    1,513,050    
  2,000     Marco Island Utility System, (MBIA), 5.00%, 10/1/27     2,077,900    
  1,000     Marion County Utility System, (MBIA), 5.00%, 12/1/33     1,035,010    
  1,000     Sunrise Utility System, (AMBAC), 5.00%, 10/1/28     1,058,700    
  500     Tampa Bay Water Utility System, (FGIC), Variable Rate,
6.13%, 10/1/27(2)(3)
    523,540    
          $ 6,834,165    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Transportation — 1.6%  
$ 250     Puerto Rico Highway and Transportation Authority,
5.125%, 7/1/39
  $ 254,695    
  350     Puerto Rico Highway and Transportation Authority,
5.125%, 7/1/43
    356,192    
      $ 610,887    
Total Tax-Exempt Investments — 158.8%
(identified cost $58,565,697)
      $ 60,779,057    
Other Assets, Less Liabilities — 0.0%       $ 3,430    
Auction Preferred Shares Plus
Cumulative Unpaid Dividends — (58.8)%
      $ (22,507,394 )  
Net Assets Applicable to Common
Shares — 100.0%
      $ 38,275,093    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by Florida municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2006, 91.7% of total 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 2.3% to 50.0% of total investments.

(1)  When-issued security.

(2)  Security exempt from registration under Rule144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2006, the aggregate value of the securities is $4,888,566 or 12.8% of the Fund's net assets applicable to common shares.

(3)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2006.

(4)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2006.

(5)  Security (or a portion thereof) has been segregated to cover when-issued securities.

(6)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

See notes to financial statements

18



Eaton Vance Insured Massachusetts Municipal Bond Fund as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 158.4%      
Principal Amount
(000's omitted)
 
Security
 
Value
 
Escrowed / Prerefunded — 2.6%      
$ 600     Massachusetts Development Finance Agency, (Western
New England College), Prerefunded to 12/1/12,
6.125%, 12/1/32
  $ 680,532    
          $ 680,532    
Hospital — 10.1%      
$ 1,500     Massachusetts HEFA, (Partners Healthcare System),
5.75%, 7/1/32
  $ 1,619,370    
  1,000     Massachusetts HEFA, (South Shore Hospital),
5.75%, 7/1/29
    1,058,580    
          $ 2,677,950    
Insured-Escrowed / Prerefunded — 9.1%      
$ 3,000     Massachusetts College Building Authority, (MBIA),
Escrowed to Maturity, 0.00%, 5/1/26
  $ 1,198,800    
  1,000     Puerto Rico, (FGIC), Prerefunded to 7/1/12,
Variable Rate, 8.41%, 7/1/32(1)(2)
    1,209,630    
          $ 2,408,430    
Insured-General Obligations — 10.4%      
$ 2,000     Massachusetts, (MBIA), 5.25%, 8/1/28   $ 2,253,860    
  500     Sandwich, (MBIA), 4.50%, 7/15/29     500,630    
          $ 2,754,490    
Insured-Hospital — 7.4%      
$ 750     Massachusetts HEFA, (Lahey Clinic Medical Center),
(FGIC), 4.50%, 8/15/35
  $ 721,582    
  1,210     Massachusetts HEFA, (New England Medical Center ),
(FGIC), 5.00%, 5/15/25
    1,256,694    
          $ 1,978,276    
Insured-Lease Revenue / Certificates of
Participation — 15.3%
     
$ 1,750     Massachusetts Development Finance Agency, (MBIA),
5.125%, 2/1/34
  $ 1,811,180    
  1,000     Plymouth County Correctional Facility, (AMBAC),
5.00%, 4/1/22
    1,035,520    
  1,000     Puerto Rico Public Building Authority, (CIFG), Variable Rate,
9.165%, 7/1/36(1)(2)
    1,218,330    
          $ 4,065,030    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Miscellaneous — 8.4%      
$ 2,100     Massachusetts Development Finance Agency,
(WGBH Educational Foundation), (AMBAC), 5.375%, 1/1/42
  $ 2,243,493    
          $ 2,243,493    
Insured-Pooled Loans — 3.4%      
$ 800     Puerto Rico Municipal Finance Agency, (FSA),
Variable Rate, 8.415%, 8/1/27(1)(2)
  $ 904,592    
          $ 904,592    
Insured-Private Education — 21.9%      
$ 1,000     Massachusetts Development Finance Agency, (Boston
University), (XLCA), 5.375%, 5/15/39
  $ 1,118,300    
  1,000     Massachusetts Development Finance Agency, (Boston
University), (XLCA), 6.00%, 5/15/59
    1,228,500    
  1,000     Massachusetts Development Finance Agency, (College of the
Holy Cross), (AMBAC), 5.25%, 9/1/32
    1,131,110    
  1,500     Massachusetts Development Finance Agency, (Franklin W. Olin
College), (XLCA), 5.25%, 7/1/33
    1,574,985    
  500     Massachusetts Development Finance Agency,
(Western New England College, (AGC), 5.00%, 9/1/33
    514,935    
  250     Massachusetts IFA, (Tufts University), (MBIA),
4.75%, 2/15/28
    251,285    
          $ 5,819,115    
Insured-Public Education — 17.4%      
$ 700     Massachusetts College Building Authority, (XLCA),
5.50%, 5/1/39
  $ 815,535    
  1,000     Massachusetts HEFA, (University of Massachusetts), (FGIC),
5.125%, 10/1/34
    1,037,170    
  1,150     Massachusetts HEFA, (Worcester State College), (AMBAC),
5.00%, 11/1/32
    1,188,030    
  1,500     University of Massachusetts Building Authority, (AMBAC),
5.125%, 11/1/34
    1,568,250    
          $ 4,608,985    
Insured-Special Tax Revenue — 8.1%      
$ 1,280     Martha's Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32(3)   $ 1,321,152    
  750     Massachusetts Bay Transportation Authority, Revenue
Assessment, (MBIA), 4.00%, 7/1/33
    665,220    
  500     Puerto Rico Infrastructure Financing Authority, (FGIC),
0.00%, 7/1/30
    160,010    
          $ 2,146,382    
Insured-Transportation — 15.6%      
$ 5,700     Massachusetts Turnpike Authority, (MBIA), 0.00%, 1/1/28   $ 2,049,777    
  1,250     Massachusetts Turnpike Authority, Metropolitan Highway System,
(AMBAC), 5.00%, 1/1/39
    1,264,375    

 

See notes to financial statements

19



Eaton Vance Insured Massachusetts Municipal Bond Fund as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Transportation (continued)      
$ 415     Massachusetts Turnpike Authority, Metropolitan Highway System,
(MBIA), Variable Rate, 8.375%, 1/1/37(1)(2)
  $ 431,978    
  335     Puerto Rico Highway and Transportation Authority, (MBIA),
Variable Rate, 8.419%, 7/1/36(1)(2)
    382,145    
          $ 4,128,275    
Insured-Water and Sewer — 14.6%      
$ 1,500     Massachusetts Water Resource Authority, (AMBAC),
4.00%, 8/1/40
  $ 1,297,845    
  2,500     Massachusetts Water Resource Authority, (FSA),
5.00%, 8/1/32
    2,568,775    
          $ 3,866,620    
Nursing Home — 2.7%      
$ 745     Massachusetts Development Finance Agency, (Berkshire
Retirement Community, Inc./Edgecombe),
5.15%, 7/1/31
  $ 727,351    
          $ 727,351    
Private Education — 6.8%      
$ 500     Massachusetts Development Finance Agency,
(Massachusetts College of Pharmacy), 5.75%, 7/1/33
  $ 526,780    
  750     Massachusetts Development Finance Agency,
(Middlesex School), 5.00%, 9/1/33
    764,865    
  500     Massachusetts HEFA, (Boston College), 5.125%, 6/1/24     521,360    
          $ 1,813,005    
Transportation — 4.6%      
$ 1,200     Puerto Rico Highway and Transportation Authority,
5.125%, 7/1/43
  $ 1,221,228    
          $ 1,221,228    
  Total Tax-Exempt Investments — 158.4%
(identified cost $40,013,404)
        $ 42,043,754    
  Other Assets, Less Liabilities — (0.0)%         $ (4,128 )  
  Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (58.4)%
        $ (15,501,293 )  
  Net Assets Applicable to Common
Shares — 100.0%
        $ 26,538,333    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

CIFG - CDC IXIS Financial Guaranty North America, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2006, 83.1% of total 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 1.2% to 26.3% of total investments.

(1)  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 March 31, 2006, the aggregate value of the securities is $4,146,675 or 15.6% of the Fund's net assets applicable to common shares.

(2)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2006.

(3)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

See notes to financial statements

20



Eaton Vance Insured Michigan Municipal Bond Fund as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 156.4%      
Principal Amount
(000's omitted)
 
Security
 
Value
 
Education — 2.2%      
$ 500     Michigan Higher Education Facilities Authority, (Hillsdale
College), 5.00%, 3/1/35
  $ 507,490    
          $ 507,490    
Electric Utilities — 5.7%      
$ 1,250     Michigan Strategic Fund, (Detroit Edison Pollution Control),
5.45%, 9/1/29
  $ 1,283,437    
          $ 1,283,437    
Hospital — 20.2%      
$ 400     Michigan Hospital Finance Authority, (Chelsea Community
Hospital), 5.00%, 5/15/30
  $ 394,188    
  1,000     Michigan Hospital Finance Authority, (Oakwood Hospital),
5.75%, 4/1/32
    1,058,050    
  1,500     Michigan Hospital Finance Authority, (Sparrow Obligation
Group), 5.625%, 11/15/36
    1,560,345    
  1,500     Michigan Hospital Finance Authority, (Trinity Health),
5.375%, 12/1/30
    1,573,890    
          $ 4,586,473    
Insured-Electric Utilities — 2.3%      
$ 500     Michigan Strategic Fund Resource Recovery,
(Detroit Edison Co.), (XLCA), 5.25%, 12/15/32
  $ 520,905    
          $ 520,905    
Insured-Escrowed / Prerefunded — 34.8%      
$ 1,550     Detroit School District, (School Bond Loan Fund), Prerefunded
to 5/1/12, (FSA), 5.125%, 5/1/31
  $ 1,659,523    
  1,000     Melvindale-Northern Allen Park School District, (Building and
Site), Prerefunded to 11/1/12, (FSA), 5.00%, 5/1/28
    1,067,000    
  1,150     Michigan Hospital Finance Authority, (St. John Health System),
Escrowed to Maturity, (AMBAC), 5.00%, 5/15/28
    1,180,923    
  1,000     Michigan Trunk Line, Prerefunded to 11/1/11, (FSA),
5.00%, 11/1/25
    1,062,000    
  1,095     Puerto Rico, Prerefunded to 7/1/12, Variable Rate,
(FGIC), 8.41%, 7/1/32(1)(2)
    1,324,545    
  1,500     Reed City Public Schools, Prerefunded to 5/1/14,
(FSA), 5.00%, 5/1/29
    1,605,675    
          $ 7,899,666    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-General Obligations — 15.3%      
$ 1,960     Grand Rapids and Kent County Joint Building Authority,
(Devos Place), (MBIA), 0.00%, 12/1/27
  $ 704,306    
  4,000     Grand Rapids and Kent County Joint Building Authority,
(MBIA), 0.00%, 12/1/30
    1,241,440    
  750     Greenville Public Schools, (MBIA), 5.00%, 5/1/25     778,815    
  1,330     Okemos Public School District, (MBIA), 0.00%, 5/1/19     741,116    
          $ 3,465,677    
Insured-Hospital — 9.5%      
$ 500     Michigan Hospital Finance Authority, Mid-Michigan
Obligation Group, (AMBAC), 5.00%, 4/15/32
  $ 510,535    
  1,590     Royal Oak Hospital Finance Authority Revenue,
(William Beaumont Hospital), (MBIA),
5.25%, 11/15/35
    1,646,175    
          $ 2,156,710    
Insured-Lease Revenue / Certificates of
Participation — 14.2%
     
$ 1,750     Michigan House of Representatives, (AMBAC),
0.00%, 8/15/22
  $ 829,798    
  2,615     Michigan House of Representatives, (AMBAC),
0.00%, 8/15/23
    1,178,685    
  1,000     Puerto Rico Public Building Authority, (CIFG), Variable Rate,
9.165%, 7/1/36(1)(2)
    1,218,330    
          $ 3,226,813    
Insured-Public Education — 10.3%      
$ 1,500     Central Michigan University, (AMBAC), 5.05%, 10/1/32(3)   $ 1,555,800    
  750     Lake Superior University, (AMBAC), 5.125%, 11/15/26     778,260    
          $ 2,334,060    
Insured-Sewer Revenue — 5.7%      
$ 1,250     Detroit Sewer Disposal, (FGIC), 5.125%, 7/1/31   $ 1,300,838    
          $ 1,300,838    
Insured-Special Tax Revenue — 18.2%      
$ 1,500     Lansing Building Authority, (MBIA), 5.00%, 6/1/29   $ 1,554,255    
  1,500     Wayne Charter County, (Airport Hotel-Detroit Metropolitan
Airport), (MBIA), 5.00%, 12/1/30
    1,550,985    
  1,000     Ypsilanti Community Utilities Authority, (San Sewer System),
(FGIC), 5.00%, 5/1/32
    1,028,190    
          $ 4,133,430    

 

See notes to financial statements

21



Eaton Vance Insured Michigan Municipal Bond Fund as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Utility — 6.9%      
$ 1,000     Lansing Board Water Supply, Steam and Electric Utility,
(FSA), 5.00%, 7/1/25
  $ 1,039,980    
  510     Lansing Board Water Supply, Steam and Electric Utility,
(FSA), 5.00%, 7/1/26
    529,268    
          $ 1,569,248    
Insured-Water Revenue — 11.1%      
$ 1,600     Detroit Water Supply System, (FGIC), 5.00%, 7/1/30   $ 1,638,800    
  800     Detroit Water Supply System, (MBIA), Variable Rate,
8.25%, 7/1/34(1)(2)
    866,640    
          $ 2,505,440    
  Total Tax-Exempt Investments — 156.4%
(identified cost $33,529,555)
        $ 35,490,187    
  Other Assets, Less Liabilities — 3.1%         $ 705,342    
  Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (59.5)%
        $ (13,503,216 )  
  Net Assets Applicable to
Common Shares — 100.0%
        $ 22,692,313    

 

AMBAC - AMBAC Financial Group, Inc.

CIFG - CDC IXIS Financial Guaranty North America, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2006, 82.0% of total 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 25.6% of total investments.

(1)  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 March 31, 2006, the aggregate value of the securities is $3,409,515 or 15.0% of the Fund's net assets applicable to common shares.

(2)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2006.

(3)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

See notes to financial statements

22




Eaton Vance Insured New Jersey Municipal Bond Fund as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 156.6%      
Principal Amount
(000's omitted)
  Security   Value  
Hospital — 8.4%      
$ 100     Camden County Improvement Authority, (Cooper Health),
5.00%, 2/15/25
  $ 100,528    
  180     Camden County Improvement Authority, (Cooper Health),
5.00%, 2/15/35
    178,063    
  150     Camden County Improvement Authority, (Cooper Health),
5.25%, 2/15/27
    152,598    
  1,300     Camden County Improvement Authority, (Cooper Health),
5.75%, 2/15/34
    1,362,686    
  610     New Jersey Health Care Facilities Financing Authority,
(Capital Health System), 5.375%, 7/1/33
    626,519    
  575     New Jersey Health Care Facilities Financing Authority,
(Capital Health System), 5.75%, 7/1/23
    612,956    
  250     New Jersey Health Care Facilities Financing Authority,
(Hunterdon Medical Center), 5.125%, 7/1/35
    253,425    
            $ 3,286,775    
Insured-Escrowed / Prerefunded — 4.8%      
$ 1,550     Puerto Rico, (FGIC), Prerefunded to 7/1/12,
Variable Rate, 8.41%, 7/1/32(1)(2)
  $ 1,874,926    
            $ 1,874,926    
Insured-General Obligations — 23.8%      
$ 2,260     Bayonne, (FSA), 0.00%, 7/1/22   $ 1,074,201    
  2,415     Bayonne, (FSA), 0.00%, 7/1/23     1,089,141    
  1,500     Bordentown Regional School District Board of Education,
(FGIC), 5.00%, 1/15/30(3)
    1,555,950    
  265     Florence Township Fire District No. 1, (MBIA),
5.125%, 7/15/28
    284,260    
  170     Florence Township Fire District No.1, (MBIA),
5.125%, 7/15/29
    181,917    
  800     Freehold Township Board of Education, (MBIA),
4.375%, 2/15/32
    774,664    
  5,500     Irvington Township, (FSA), 0.00%, 7/15/26     2,134,495    
  1,250     Jersey City, (FSA), 5.25%, 9/1/23     1,336,000    
  530     Madison Boro Board of Education, (MBIA),
4.75%, 7/15/35
    535,719    
  350     Monroe Township Board of Education Middlesex County,
(MBIA), 4.50%, 4/1/33(4)
    341,922    
            $ 9,308,269    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Hospital — 9.6%      
$ 2,750     New Jersey Health Care Facilities, (Englewood Hospital),
(MBIA), 5.00%, 8/1/31
  $ 2,827,165    
  900     New Jersey Health Care Facilities,
(Jersey City Medical Center), (AMBAC), 5.00%, 8/1/41
    918,423    
            $ 3,745,588    
Insured-Lease Revenue / Certificates of
Participation — 14.8%
     
$ 530     Gloucester County Improvements Authority, (MBIA),
4.75%, 9/1/30
  $ 537,420    
  2,670     Lafayette Yard, Community Development Corporation,
(Hotel and Conference Center), (FGIC), 5.00%, 4/1/35(5)
    2,728,580    
  1,250     Middlesex County, (MBIA), 5.00%, 8/1/31     1,278,975    
  1,000     Puerto Rico Public Building Authority, (CIFG), Variable Rate,
9.165%, 7/1/36(1)(2)
    1,218,330    
            $ 5,763,305    
Insured-Pooled Loans — 2.8%      
$ 950     Puerto Rico Municipal Finance Agency, (FSA), Variable Rate,
8.415%, 8/1/27(1)(2)
  $ 1,074,203    
            $ 1,074,203    
Insured-Private Education — 5.1%      
$ 1,000     New Jersey Educational Facilities Authority,
(Kean University), (FGIC), 5.00%, 7/1/28
  $ 1,037,150    
  1,000     New Jersey Educational Facilities Authority,
(Kean University), (MBIA), 4.50%, 7/1/37
    964,960    
            $ 2,002,110    
Insured-Public Education — 19.1%      
$ 1,200     New Jersey EDA, (School Facilities), (FGIC),
5.00%, 7/1/33
  $ 1,236,576    
  1,500     New Jersey Educational Facilities Authority,
(Rowan University), (FGIC), 5.125%, 7/1/30
    1,567,245    
  4,490     University of New Jersey Medicine and Dentistry, (AMBAC),
5.00%, 4/15/32
    4,643,782    
            $ 7,447,603    
Insured-Sewer Revenue — 4.7%      
$ 1,350     Passaic Valley Sewer Commissioners, (FGIC),
2.50%, 12/1/32
  $ 930,811    
  2,500     Rahway Valley, Sewerage Authority, (MBIA),
0.00%, 9/1/27
    909,225    
            $ 1,840,036    

 

See notes to financial statements

23



Eaton Vance Insured New Jersey Municipal Bond Fund as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Special Tax Revenue — 13.6%      
$ 10,000     Garden State New Jersey Preservation Trust, (FSA),
0.00%, 11/1/28
  $ 3,456,300    
  1,660     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/28
    584,337    
  890     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/37
    200,597    
  6,500     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/43
    1,078,350    
            $ 5,319,584    
Insured-Transportation — 27.0%      
$ 800     Newark Housing Authority, (Newark Marine Terminal),
(MBIA), 5.00%, 1/1/23
  $ 832,512    
  1,500     Newark Housing Authority, (Newark Marine Terminal),
(MBIA), 5.00%, 1/1/37
    1,549,995    
  1,290     Port Authority of New York and New Jersey, (FSA),
Variable Rate, 8.395%, 11/1/27(1)(2)
    1,453,765    
  2,520     Puerto Rico Highway and Transportation Authority,
(AMBAC), 5.25%, 7/1/38
    2,851,506    
  1,000     Puerto Rico Highway and Transportation Authority,
(MBIA), 5.00%, 7/1/33
    1,035,890    
  770     South Jersey Transportation Authority, (FGIC), 4.50%, 11/1/35     750,904    
  2,000     South Jersey Transportation Authority, (FGIC), 5.00%, 11/1/33     2,079,860    
            $ 10,554,432    
Insured-Water and Sewer — 4.9%      
$ 4,500     Middlesex County Improvements Authority Utilities System,
(Perth Amboy), (AMBAC), 0.00%, 9/1/24
  $ 1,912,680    
            $ 1,912,680    
Private Education — 3.3%      
$ 1,250     New Jersey Educational Facilities Authority,
(Stevens Institute of Technology), 5.25%, 7/1/32
  $ 1,289,025    
            $ 1,289,025    
Senior Living / Life Care — 1.5%      
$ 600     New Jersey EDA, (Fellowship Village), 5.50%, 1/1/25   $ 602,664    
            $ 602,664    
Special Tax Revenue — 5.1%      
$ 150     New Jersey EDA, (Cigarette Tax), 5.50%, 6/15/24   $ 155,524    
  500     New Jersey EDA, (Cigarette Tax), 5.50%, 6/15/31     514,415    
  500     New Jersey EDA, (Cigarette Tax), 5.75%, 6/15/29     526,495    
  750     New Jersey EDA, (Cigarette Tax), 5.75%, 6/15/34     787,163    
            $ 1,983,597    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Transportation — 8.1%  
$ 1,250     Port Authority of New York and New Jersey,
5.00%, 9/1/38
  $ 1,289,263    
  1,825     South Jersey Port Authority, (Marine Terminal),
5.10%, 1/1/33
    1,873,673    
        $ 3,162,936    
Total Tax-Exempt Investments — 156.6%
(identified cost $58,364,519)
      $ 61,167,733    
Other Assets, Less Liabilities — 1.0%       $ 390,618    
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (57.6)%
      $ (22,505,991 )  
Net Assets Applicable to
Common Shares — 100.0%
      $ 39,052,360    

 

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

The Fund invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2006, 83.1% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.0% to 22.5% of total investments.

(1)  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 March 31, 2006, the aggregate value of the securities is $5,621,224 or 14.4% of the Fund's net assets applicable to common shares.

(2)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2006.

(3)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

(4)  When-issued security.

(5)  Security (or a portion thereof) has been segregated to cover when-issued securities.

See notes to financial statements

24



Eaton Vance Insured New York Municipal Bond Fund II as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 155.3%      
Principal Amount
(000's omitted)
  Security   Value  
Electric Utilities — 1.6%      
$ 625     Long Island Power Authority, (NY Electic System),
4.50%, 12/1/24
  $ 614,500    
            $ 614,500    
General Obligations — 8.4%      
$ 1,000     New York, 5.00%, 6/1/30   $ 1,028,900    
  500     New York, 5.25%, 8/15/26     530,370    
  1,650     New York, NY, 5.25%, 1/15/28     1,731,922    
            $ 3,291,192    
Hospital — 2.0%      
$ 750     Suffolk County, IDA, (Huntington Hospital),
5.875%, 11/1/32
  $ 785,962    
            $ 785,962    
Housing — 2.1%      
$ 835     New York City Housing Development Corp.,
(Multi-Family Housing), 4.65%, 5/1/26
  $ 839,459    
            $ 839,459    
Industrial Development Revenue — 3.0%      
$ 1,160     New York City, IDA, (Liberty-IAC/Interactive Corp.),
5.00%, 9/1/35
  $ 1,168,619    
            $ 1,168,619    
Insured-Electric Utilities — 6.0%      
$ 2,250     Long Island Power Authority, (NY Electric System),
(AMBAC), 5.00%, 9/1/34
  $ 2,332,485    
            $ 2,332,485    
Insured-Escrowed / Prerefunded — 3.3%      
$ 580     New York City Trust Cultural Resources,
(Museum of History), Prerefunded to 7/1/09,
(AMBAC), Variable Rate, 10.549%, 7/1/29(1)(2)
  $ 705,280    
  500     Puerto Rico, (FGIC), Prerefunded to 7/1/12,
Variable Rate, 8.41%, 7/1/32(1)(2)
    604,815    
            $ 1,310,095    

 

Principal Amount
(000's omitted) 
Security
    Value  
Insured-General Obligations — 9.9%  
$ 2,245     New York Dormitory Authority, (School Districts
Financing Program), (MBIA), 5.00%, 10/1/30
  $ 2,317,222    
  1,500     Sachem School District, (MBIA), 5.00%, 6/15/27     1,565,790    
        $ 3,883,012    
Insured-Health Care Miscellaneous — 4.6%  
$ 1,000     New York City, IDA, (American National Red Cross Project),
(AMBAC), 5.00%, 2/1/36
  $ 1,039,720    
  750     New York Dormitory Authority, (Mental Health Services
Facilities), (FGIC), 5.00%, 2/15/24
    782,445    
        $ 1,822,165    
Insured-Hospital — 8.0%  
$ 4,575     New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), (MBIA), 0.00%, 7/1/26
  $ 1,850,587    
  3,365     New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), (MBIA), 0.00%, 7/1/27
    1,290,848    
        $ 3,141,435    
Insured-Lease Revenue / Certificates of
Participation — 3.1%
 
$ 1,000     Puerto Rico Public Building Authority, (CIFG),
Variable Rate, 9.165%, 7/1/36(1)(2)
  $ 1,218,330    
        $ 1,218,330    
Insured-Other Revenue — 10.4%  
$ 1,930     New York City Cultural Resource Trust, (American Museum
of Natural History), (MBIA), 5.00%, 7/1/44
  $ 1,986,646    
  2,000     New York City Cultural Resource Trust, (Museum of
Modern Art), (AMBAC), 5.125%, 7/1/31
    2,077,800    
        $ 4,064,446    
Insured-Private Education — 22.5%  
$ 1,000     New York City Industrial Development Agency,
(New York University), (AMBAC), 5.00%, 7/1/31
  $ 1,026,140    
  2,500     New York Dormitory Authority, (Brooklyn Law School),
(XLCA), 5.125%, 7/1/30
    2,602,625    
  2,265     New York Dormitory Authority, (FIT Student Housing Corp.),
(FGIC), 5.00%, 7/1/29
    2,355,645    
  605     New York Dormitory Authority, (Fordham University),
(FGIC), 5.00%, 7/1/32
    623,574    
  1,000     New York Dormitory Authority, (New York University),
(AMBAC), 5.00%, 7/1/31
    1,026,140    

 

See notes to financial statements

25



Eaton Vance Insured New York Municipal Bond Fund II as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted) 
Security
    Value  
Insured-Private Education (continued)  
$ 500     New York Dormitory Authority, (Skidmore College),
(FGIC), 5.00%, 7/1/33
  $ 518,260    
  625     New York Dormitory Authority, (University of Rochester),
(MBIA), 5.00%, 7/1/27
    643,725    
        $ 8,796,109    
Insured-Public Education — 7.1%  
$ 1,000     New York Dormitory Authority, (Educational Housing
Services), (AMBAC), 5.25%, 7/1/25
  $ 1,104,710    
  1,500     New York Dormitory Authority, (Educational Housing
Services), (AMBAC), 5.25%, 7/1/30
    1,673,235    
        $ 2,777,945    
Insured-Special Tax Revenue — 12.1%  
$ 700     New York Convention Center Development Corp., (AMBAC),
4.75%, 11/15/45
  $ 700,553    
  1,385     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/28
    487,534    
  1,700     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/35
    424,762    
  740     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/37
    166,789    
  2,500     Puerto Rico Infrastructure Financing Authority, (FGIC),
0.00%, 7/1/33
    693,225    
  14,975     Puerto Rico Infrastructure Financing Authority, (FGIC),
0.00%, 7/1/45
    2,250,892    
        $ 4,723,755    
Insured-Transportation — 22.2%  
$ 2,000     Metropolitan Transportation Authority, Transportation
Revenue Bonds, (FGIC), 5.25%, 11/15/31
  $ 2,121,980    
  835     Port Authority of New York and New Jersey, (FSA),
Variable Rate, 8.395%, 11/1/27(1)(2)
    941,003    
  1,000     Puerto Rico Highway and Transportation Authority, (AMBAC),
Variable Rate, 8.505%, 7/1/28(1)(2)
    1,087,930    
  375     Puerto Rico Highway and Transportation Authority, (CIFG),
5.25%, 7/1/41
    414,836    
  2,000     Puerto Rico Highway and Transportation Authority, (MBIA),
5.00%, 7/1/33
    2,071,780    
  2,000     Triborough Bridge and Tunnel Authority, (MBIA),
5.00%, 11/15/32
    2,062,980    
        $ 8,700,509    

 

Principal Amount
(000's omitted) 
Security
    Value  
Insured-Water and Sewer — 14.2%  
$ 3,000     New York City Municipal Water Finance Authority,
(AMBAC), 5.00%, 6/15/38(3)
  $ 3,088,440    
  2,400     Niagara Falls, Public Water Authority and Sewer System,
(MBIA), 5.00%, 7/15/34
    2,478,072    
        $ 5,566,512    
Insured-Water Revenue — 5.4%  
$ 2,215     New York Environmental Facilities Corp., (MBIA),
4.25%, 6/15/28
  $ 2,127,087    
        $ 2,127,087    
Other Revenue — 1.6%  
$ 500     Puerto Rico Infrastructure Financing Authority,
Variable Rate, 10.028%, 10/1/32(1)(2)
  $ 610,470    
        $ 610,470    
Private Education — 5.2%  
$ 1,000     Dutchess County, Industrial Development Agency,
(Marist College), 5.00%, 7/1/22
  $ 1,028,390    
  1,000     New York City Industrial Development Agency,
(St. Francis College), 5.00%, 10/1/34
    1,018,580    
        $ 2,046,970    
Transportation — 2.6%  
$ 1,000     Port Authority of New York and New Jersey,
5.00%, 9/1/38
  $ 1,031,410    
        $ 1,031,410    
Total Tax-Exempt Investments — 155.3%
(identified cost $58,710,870)
      $ 60,852,467    
Other Assets, Less Liabilities — 2.1%       $ 832,318    
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (57.4)%
      $ (22,505,359 )  
Net Assets Applicable to
Common Shares — 100.0%
      $ 39,179,426    

 

See notes to financial statements

26



Eaton Vance Insured New York Municipal Bond Fund II as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

AMBAC - AMBAC Financial Group, Inc.

CIFG - CDC IXIS Financial Guaranty North America, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2006, 82.9% of total 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 30.2% of total investments.

(1)  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 March 31, 2006, the aggregate value of the securities is $5,167,828 or 13.2% of the Fund's net assets applicable to common shares.

(2)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2006.

(3)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

See notes to financial statements

27



Eaton Vance Insured Ohio Municipal Bond Fund as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 155.4%      
Principal Amount
(000's omitted)
  Security   Value  
Electric Utilities — 2.8%      
$ 1,000     Puerto Rico Electric Power Authority, 5.125%, 7/1/29   $ 1,036,410    
            $ 1,036,410    
Hospital — 2.5%      
$ 900     Cuyahoga County, (Cleveland Clinic Health System),
5.50%, 1/1/29
  $ 953,937    
            $ 953,937    
Insured-Electric Utilities — 17.0%      
$ 1,500     Ohio Air Quality Development Authority, (Dayton Power &
Light Co.), (FGIC), 4.80%, 1/1/34
  $ 1,508,805    
  4,000     Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/25
    1,673,800    
  1,775     Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/26
    705,119    
  5,000     Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/27
    1,884,500    
  600     Puerto Rico Electric Power Authority, (MBIA), Variable Rate,
7.81%, 7/1/33(1)(2)
    622,458    
            $ 6,394,682    
Insured-Escrowed / Prerefunded — 3.3%      
$ 615     Puerto Rico Infrastructure Financing Authority, (AMBAC),
Prerefunded to 1/1/08, Variable Rate,
8.076%, 7/1/28(1)(2)
  $ 673,683    
  500     University of Akron, (FGIC), Prerefunded to 1/1/10,
Variable Rate, 8.13%, 1/1/29(1)(3)
    580,730    
            $ 1,254,413    
Insured-General Obligations — 55.6%      
$ 1,500     Ashtabula School District, (Construction Improvements),
(FGIC), 5.00%, 12/1/30(4)
  $ 1,546,620    
  1,000     Cleveland, Municipal School District, (FSA),
5.00%, 12/1/27
    1,039,690    
  1,500     Columbus School District, (FSA), 5.00%, 12/1/32     1,559,250    
  2,250     Cuyahoga Community College District, (AMBAC),
5.00%, 12/1/32
    2,324,340    
  575     Gallipolis School District, (Construction Improvements),
(MBIA), 4.50%, 12/1/33(5)
    560,314    
  1,190     Jefferson County, (AMBAC), 4.75%, 12/1/34     1,206,481    
  600     Lakota School District, (FGIC), 5.25%, 12/1/26     673,530    
  2,500     Olentangy School District, (School Facility Construction and
Improvements), (MBIA), 5.00%, 12/1/30
    2,577,700    

 

Principal Amount
(000's omitted) 
Security
    Value  
Insured-General Obligations (continued)  
$ 2,400     Plain School District, (FGIC), 0.00%, 12/1/27   $ 825,120    
  1,400     Powell, (FGIC), 5.50%, 12/1/32     1,509,172    
  2,500     Springboro Community School District, (MBIA),
5.00%, 12/1/32
    2,594,000    
  750     Tecumseh School District, (FGIC), 4.75%, 12/1/31     758,723    
  2,600     Trotwood-Madison School District, (School Improvements),
(FGIC), 5.00%, 12/1/30
    2,683,824    
  1,000     Zanesville School District, (School Improvements), (MBIA),
5.05%, 12/1/29
    1,044,210    
        $ 20,902,974    
Insured-Hospital — 6.9%  
$ 1,000     Hamilton County, (Cincinnati Childrens Hospital), (FGIC),
5.00%, 5/15/32
  $ 1,029,740    
  1,500     Hamilton County, (Cincinnati Childrens Hospital), (FGIC),
5.125%, 5/15/28
    1,566,225    
        $ 2,595,965    
Insured-Lease Revenue / Certificates of
Participation — 9.4%
 
$ 1,000     Cleveland, (Cleveland Stadium), (AMBAC),
5.25%, 11/15/27
  $ 1,039,750    
  1,000     Puerto Rico Public Building Authority, (CIFG), Variable Rate,
9.165%, 7/1/36(1)(2)
    1,218,330    
  235     Puerto Rico Public Buildings Authority, Government Facilities
Revenue, (XLCA), 5.25%, 7/1/36
    247,620    
  1,000     Summit County, (Civic Theater Project), (AMBAC),
5.00%, 12/1/33
    1,024,450    
        $ 3,530,150    
Insured-Pooled Loans — 0.9%  
$ 280     Puerto Rico Municipal Finance Agency, (FSA), Variable Rate,
8.415%, 8/1/27(1)(2)
  $ 316,607    
        $ 316,607    
Insured-Public Education — 14.3%  
$ 3,000     Cincinnati Technical and Community College, (AMBAC),
5.00%, 10/1/28
  $ 3,112,950    
  1,170     Ohio University, (FSA), 5.25%, 12/1/23     1,252,356    
  1,000     University of Cincinnati, (AMBAC), 5.00%, 6/1/31     1,029,910    
        $ 5,395,216    

 

See notes to financial statements

28



Eaton Vance Insured Ohio Municipal Bond Fund as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted) 
Security
    Value  
Insured-Special Tax Revenue — 12.5%  
$ 4,315     Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/22   $ 2,025,332    
  5,000     Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/23     2,231,150    
  1,000     Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/24     424,760    
        $ 4,681,242    
Insured-Transportation — 14.9%  
$ 4,000     Cleveland Airport System, (FSA), 5.00%, 1/1/31(6)   $ 4,085,280    
  500     Puerto Rico Highway and Transportation Authority,
(AMBAC), 5.25%, 7/1/38
    565,775    
  885     Puerto Rico Highway and Transportation Authority,
(AMBAC), Variable Rate, 8.505%, 7/1/28(1)(2)
    962,818    
        $ 5,613,873    
Pooled Loans — 7.3%  
$ 1,500     Cleveland-Cuyahoga County Port Authority,
(Garfield Heights), 5.25%, 5/15/23
  $ 1,525,245    
  1,150     Rickenbacker Port Authority Capital Funding, (Oasbo),
5.375%, 1/1/32
    1,231,972    
        $ 2,757,217    
Private Education — 8.0%  
$ 1,000     Ohio Higher Educational Facilities Authority,
(Oberlin College), 5.00%, 10/1/33
  $ 1,029,930    
  1,000     Ohio Higher Educational Facilities Authority,
(Oberlin College), Variable Rate, 6.63%, 10/1/29(1)(3)
    1,099,220    
  850     Ohio Higher Educational Facilities Commission,
(John Carroll University), 5.25%, 11/15/33
    891,268    
        $ 3,020,418    
Total Tax-Exempt Investments — 155.4%
(identified cost $55,897,698)
      $ 58,453,104    
Other Assets, Less Liabilities — 2.8%       $ 1,046,378    
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (58.2)%
      $ (21,875,000 )  
Net Assets Applicable to
Common Shares — 100.0%
      $ 37,624,482    

 

AMBAC - AMBAC Financial Group, Inc.

CIFG - CDC IXIS Financial Guaranty North America, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2006, 86.7% of total 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 0.4% to 28.4% of total investments.

(1)  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 March 31, 2006, the aggregate value of the securities is $5,473,846 or 14.5% of the Fund's net assets applicable to common shares.

(2)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2006.

(3)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2006.

(4)  Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

(5)  When-issued security.

(6)  Security (or a portion thereof) has been segregated to cover when-issued securities.

See notes to financial statements

29



Eaton Vance Insured Pennsylvania Municipal Bond Fund as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 156.3%      
Principal Amount
(000's omitted)
  Security   Value  
Electric Utilities — 0.8%      
$ 325     Puerto Rico Electric Power Authority, Variable Rate,
6.897%, 7/1/29(1)(2)
  $ 348,673    
            $ 348,673    
Hospital — 7.9%      
$ 750     Lancaster County Hospital Authority, 5.50%, 3/15/26   $ 780,892    
  350     Lebanon County Health Facility Authority, (Good Samaritan
Hospital), 6.00%, 11/15/35
    373,369    
  1,500     Lehigh County General Purpose Authority, (Lehigh Valley
Health Network), 5.25%, 7/1/32
    1,534,635    
  750     Pennsylvania HEFA, (UPMC Health System), 6.00%, 1/15/31     814,957    
            $ 3,503,853    
Insured-Electric Utilities — 7.8%      
$ 1,500     Lehigh County IDA, Pollution Control, (PPL Electric
Utilities Corp.), (FGIC), 4.70%, 9/1/29
  $ 1,500,480    
  1,500     Lehigh County IDA, Pollution Control, (PPL Electric
Utilities Corp.), (FGIC), 4.75%, 2/15/27
    1,511,265    
  400     Puerto Rico Electric Power Authority, (FSA), Variable Rate,
9.11%, 7/1/29(1)(3)
    469,552    
            $ 3,481,297    
Insured-Escrowed / Prerefunded — 18.8%      
$ 1,000     Butler School District, (FSA), Prerefunded to 4/1/14 ,
5.00%, 4/1/31
  $ 1,070,360    
  2,050     Pennsylvania Turnpike Commission, (AMBAC),
Prerefunded to 7/15/11, 5.00%, 7/15/41
    2,191,901    
  1,355     Philadelphia Natural Gas Works, (FSA), Prerefunded to
8/1/11, 5.125%, 8/1/31
    1,446,124    
  400     Puerto Rico, (FGIC), Prerefunded to 7/1/12, Variable Rate,
8.41%, 7/1/32(1)(3)
    483,852    
  270     Southcentral General Authority, (MBIA), Escrowed to
Maturity, 5.25%, 5/15/31
    286,446    
  1,230     Southcentral General Authority, (MBIA), Prerefunded to
5/15/11, 5.25%, 5/15/31
    1,323,886    
  1,440     Upper Clair Township School District, (FSA), Prerefunded to
7/15/12, 5.00%, 7/15/32
    1,534,363    
            $ 8,336,932    
Insured-Gas Utilities — 2.1%      
$ 875     Philadelphia Natural Gas Works, (FSA), Variable Rate,
6.62%, 7/1/28(2)
  $ 927,211    
            $ 927,211    

 

Principal Amount
(000's omitted) 
Security
    Value  
Insured-General Obligations — 30.1%  
$ 1,650     Armstrong County, (MBIA), 5.40%, 6/1/31   $ 1,750,601    
  4,845     Canon McMillan School District, (FGIC), 0.00%, 12/1/33     1,290,224    
  500     Canon McMillan School District, (FGIC), 5.25%, 12/1/34     526,570    
  1,000     Gateway, School District Alleghany County, (FGIC),
5.00%, 10/15/32
    1,033,910    
  2,555     McKeesport School District, (MBIA), 0.00%, 10/1/21     1,243,927    
  1,000     Neshaminy School District, (AMBAC), 4.375%, 5/1/27     971,120    
  2,000     Pennridge School District, (MBIA), 5.00%, 2/15/29     2,069,800    
  500     Philadelphia, (FSA), 5.00%, 9/15/31     511,320    
  585     Philadelphia, (FSA), Variable Rate,
8.378%, 9/15/31(1)(3)
    624,727    
  1,000     Pine-Richland School District, (FSA), 5.00%, 9/1/29     1,027,390    
  1,390     Steel Valley School District, Allegheny County, (FSA),
0.00%, 11/1/29
    455,725    
  1,390     Steel Valley School District, Allegheny County, (FSA),
0.00%, 11/1/30
    429,482    
  1,290     Steel Valley School District, Allegheny County, (FSA),
0.00%, 11/1/31
    376,216    
  1,060     Upper Clair Township School District, (FSA),
5.00%, 7/15/32
    1,089,553    
        $ 13,400,565    
Insured-Hospital — 2.3%  
$ 1,000     Washington County Hospital Authority, (Washington
Hospital), (AMBAC), 5.125%, 7/1/28
  $ 1,030,440    
        $ 1,030,440    
Insured-Industrial Development Revenue — 3.9%  
$ 1,700     Allegheny County IDA, (MBIA), 5.00%, 11/1/29   $ 1,755,233    
        $ 1,755,233    
Insured-Lease Revenue / Certificates of
Participation — 7.1%
 
$ 1,300     Philadelphia Authority for Industrial Development Lease
Revenue, (FSA), 5.125%, 10/1/26
  $ 1,366,807    
  1,700     Philadelphia Authority for Industrial Development Lease
Revenue, (FSA), 5.25%, 10/1/30
    1,782,382    
        $ 3,149,189    
Insured-Private Education — 15.7%  
$ 1,000     Chester County IDA Educational Facility, (Westtown School),
(AMBAC), 5.00%, 1/1/31
  $ 1,026,800    
  3,315     Delaware County, (Villanova University), (MBIA),
5.00%, 12/1/28
    3,400,892    

 

See notes to financial statements

30



Eaton Vance Insured Pennsylvania Municipal Bond Fund as of March 31, 2006

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted) 
Security
    Value  
Insured-Private Education (continued)  
$ 2,500     Pennsylvania HEFA, (Temple University), (MBIA),
5.00%, 4/1/29(4)
  $ 2,562,675    
        $ 6,990,367    
Insured-Public Education — 8.0%  
$ 2,400     Lycoming County Authority, (Pennsylvania College of
Technology), (AMBAC), 5.25%, 5/1/32
  $ 2,529,096    
  1,000     Pennsylvania HEFA, (Clarion University Foundation), (XLCA),
5.00%, 7/1/33
    1,027,150    
        $ 3,556,246    
Insured-Special Tax Revenue — 15.5%  
$ 4,350     Pittsburgh and Allegheny County Public Auditorium, (AMBAC),
5.00%, 2/1/29
  $ 4,485,981    
  1,925     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/28
    677,619    
  1,180     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/37
    265,960    
  8,700     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/43
    1,443,330    
        $ 6,872,890    
Insured-Transportation — 17.3%  
$ 2,000     Allegheny County Port Authority, (FGIC), 5.00%, 3/1/25   $ 2,076,720    
  1,000     Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29     1,029,610    
  950     Pennsylvania Turnpike Commission, Registration Fee, (FSA),
Variable Rate, 9.04%, 1/15/23(1)(3)
    1,310,031    
  2,100     Puerto Rico Highway and Transportation Authority, (CIFG),
5.25%, 7/1/41
    2,323,083    
  815     Puerto Rico Highway and Transportation Authority, (MBIA),
Variable Rate, 8.419%, 7/1/36(1)(3)
    929,695    
        $ 7,669,139    
Insured-Water and Sewer — 13.9%  
$ 1,555     Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25   $ 617,693    
  2,155     Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25     856,031    
  1,920     Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26     727,699    
  1,500     Pennsylvania University Sewer Authority, (MBIA),
5.00%, 11/1/26
    1,543,695    
  1,000     Philadelphia Water & Wastewater, (FGIC), Variable Rate,
8.375%, 11/1/31(1)(3)
    1,088,850    
  580     Pittsburgh Water and Sewer Authority, (AMBAC),
Variable Rate, 8.76%, 12/1/27(1)(3)
    668,288    
  650     Saxonburg Water and Sewer Authority, (AGC),
5.00%, 3/1/35
    668,148    
        $ 6,170,404    

 

Principal Amount
(000's omitted) 
Security
    Value  
Transportation — 5.1%  
$ 1,400     Delaware River Joint Toll Bridge Commission,
5.00%, 7/1/28
  $ 1,437,562    
  800     Puerto Rico Highway and Transportation Authority,
5.125%, 7/1/43
    814,152    
        $ 2,251,714    
Total Tax-Exempt Investments — 156.3%
(identified cost $66,758,165)
      $ 69,444,153    
Other Assets, Less Liabilities — 2.2%       $ 992,147    
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (58.5)%
      $ (26,002,061 )  
Net Assets Applicable to
Common Shares — 100.0%
      $ 44,434,239    

 

AGC - Assured Guaranty Corp.

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 Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2006, 91.2% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.0% to 25.2% of total investments.

(1)  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 March 31, 2006, the aggregate value of the securities is $5,923,668 or 13.3% of the Fund's net assets applicable to common shares.

(2)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2006.

(3)  Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2006.

(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 March 31, 2006

FINANCIAL STATEMENTS (Unaudited)

Statements of Assets and Liabilities

As of March 31, 2006

    Insured
Municipal Fund II
  Insured
California Fund II
  Insured
Florida Fund
 
Assets  
Investments —  
Identified cost   $ 225,809,153     $ 86,892,773     $ 58,565,697    
Unrealized appreciation     11,486,054       3,184,816       2,213,360    
Investments, at value   $ 237,295,207     $ 90,077,589     $ 60,779,057    
Cash   $ 1,084,058     $ 253,909     $ 65,598    
Receivable for investments sold                 1,000,000    
Interest receivable     3,064,823       989,177       1,016,950    
Receivable for daily variation margin on open financial futures contracts     18,750       6,250       4,821    
Prepaid expenses     8,452       8,100       8,089    
Total assets   $ 241,471,290     $ 91,335,025     $ 62,874,515    
Liabilities  
Payable for when-issued securities   $     $     $ 2,033,939    
Payable to affiliate for investment advisory fees     82,440       31,190       20,741    
Accrued expenses     80,457       43,203       37,348    
Total liabilities   $ 162,897     $ 74,393     $ 2,092,028    
Auction preferred shares at liquidation value plus cumulative unpaid dividends     87,500,475       33,755,543       22,507,394    
Net assets applicable to common shares   $ 153,807,918     $ 57,505,089     $ 38,275,093    
Sources of Net Assets  
Common Shares, $0.01 par value, unlimited number of shares authorized   $ 99,254     $ 38,614     $ 25,755    
Additional paid-in capital     140,750,921       54,736,873       36,515,052    
Accumulated net realized loss (computed on the basis of identified cost)     (1,073,745 )     (1,319,388 )     (985,124 )  
Undistributed net investment income     382,518       143,202       73,282    
Net unrealized appreciation (computed on the basis of identified cost)     13,648,970       3,905,788       2,646,128    
Net assets applicable to common shares   $ 153,807,918     $ 57,505,089     $ 38,275,093    
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      3,500       1,350       900    
Common Shares Outstanding  
      9,925,378       3,861,403       2,575,502    
Net Asset Value Per Common Share  
Net assets applicable to common shares ÷ common shares issued and outstanding   $ 15.50     $ 14.89     $ 14.86    

 

See notes to financial statements

32



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Assets and Liabilities

As of March 31, 2006

    Insured
Massachusetts Fund
  Insured
Michigan Fund
  Insured
New Jersey Fund
 
Assets  
Investments —  
Identified cost   $ 40,013,404     $ 33,529,555     $ 58,364,519    
Unrealized appreciation     2,030,350       1,960,632       2,803,214    
Investments, at value   $ 42,043,754     $ 35,490,187     $ 61,167,733    
Cash   $     $ 204,133     $ 101,403    
Receivable from the transfer agent     3,504                
Interest receivable     520,194       536,200       675,714    
Receivable for daily variation margin on open financial futures contracts     3,125       1,844       4,687    
Prepaid expenses     8,101                
Total assets   $ 42,578,678     $ 36,232,364     $ 61,949,537    
Liabilities  
Payable for investments purchased   $     $     $ 345,324    
Due to custodian     491,594                
Payable to affiliate for investment advisory fees     14,380       12,368       21,136    
Accrued expenses     33,078       24,467       24,726    
Total liabilities   $ 539,052     $ 36,835     $ 391,186    
Auction preferred shares at liquidation value plus cumulative unpaid dividends     15,501,293       13,503,216       22,505,991    
Net assets applicable to common shares   $ 26,538,333     $ 22,692,313     $ 39,052,360    
Sources of Net Assets  
Common Shares, $0.01 par value, unlimited number of shares authorized   $ 17,521     $ 15,118     $ 25,625    
Additional paid-in capital     24,825,835       21,413,714       36,321,807    
Accumulated net realized loss (computed on the basis of identified cost)     (790,351 )     (933,381 )     (760,554 )  
Undistributed net investment income     85,091       17,996       107,437    
Net unrealized appreciation (computed on the basis of identified cost)     2,400,237       2,178,866       3,358,045    
Net assets applicable to common shares   $ 26,538,333     $ 22,692,313     $ 39,052,360    
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      620       540       900    
Common Shares Outstanding  
      1,752,139       1,511,845       2,562,538    
Net Asset Value Per Common Share  
Net assets applicable to common shares ÷ common shares issued and outstanding   $ 15.15     $ 15.01     $ 15.24    

 

See notes to financial statements

33



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Assets and Liabilities

As of March 31, 2006

    Insured
New York Fund II
  Insured
Ohio Fund
  Insured
Pennsylvania Fund
 
Assets  
Investments —  
Identified cost   $ 58,710,870     $ 55,897,698     $ 66,758,165    
Unrealized appreciation     2,141,597       2,555,406       2,685,988    
Investments, at value   $ 60,852,467     $ 58,453,104     $ 69,444,153    
Cash   $ 142,099     $ 841,883     $ 201,340    
Receivable from the transfer agent           3,416          
Interest receivable     740,611       804,834       836,263    
Receivable for daily variation margin on open financial futures contracts     5,352       5,406       7,031    
Prepaid expenses           9,013          
Total assets   $ 61,740,529     $ 60,117,656     $ 70,488,787    
Liabilities  
Payable for when-issued securities   $     $ 563,379     $    
Payable to affiliate for investment advisory fees     21,111       20,295       24,066    
Accrued expenses     34,633       34,500       28,421    
Total liabilities   $ 55,744     $ 618,174     $ 52,487    
Auction preferred shares at liquidation value plus cumulative unpaid dividends     22,505,359       21,875,000       26,002,061    
Net assets applicable to common shares   $ 39,179,426     $ 37,624,482     $ 44,434,239    
Sources of Net Assets  
Common Shares, $0.01 par value, unlimited number of shares authorized   $ 25,549     $ 25,127     $ 29,432    
Additional paid-in capital     36,205,691       35,610,746       41,716,097    
Accumulated net realized gain (loss) (computed on the basis of identified cost)     163,173       (1,292,369 )     (824,693 )  
Undistributed net investment income     126,829       58,635       72,512    
Net unrealized appreciation (computed on the basis of identified cost)     2,658,184       3,222,343       3,440,891    
Net assets applicable to common shares   $ 39,179,426     $ 37,624,482     $ 44,434,239    
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      900       875       1,040    
Common Shares Outstanding  
      2,554,928       2,512,727       2,943,172    
Net Asset Value Per Common Share  
Net assets applicable to common shares ÷ common shares issued and outstanding   $ 15.33     $ 14.97     $ 15.10    

 

See notes to financial statements

34



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Operations

For the Six Months Ended March 31, 2006

    Insured
Municipal Fund II
  Insured
California Fund II
  Insured
Florida Fund
 
Investment Income  
Interest   $ 6,033,897     $ 2,226,388     $ 1,491,508    
Total investment income   $ 6,033,897     $ 2,226,388     $ 1,491,508    
Expenses  
Investment adviser fee   $ 656,972     $ 249,293     $ 166,123    
Trustees' fees and expenses     6,021       3,560       879    
Legal and accounting services     20,792       21,897       15,872    
Printing and postage     10,428       5,886       4,682    
Custodian fee     77,040       27,721       20,921    
Transfer and dividend disbursing agent     59,782       26,967       19,756    
Preferred shares remarketing agent fee     109,076       42,071       28,048    
Miscellaneous     21,110       14,239       13,768    
Total expenses   $ 961,221     $ 391,634     $ 270,049    
Deduct —  
Reduction of custodian fee   $ 11,738     $ 6,472     $ 1,652    
Reduction of investment adviser fee     179,174       67,989       45,307    
Total expense reductions   $ 190,912     $ 74,461     $ 46,959    
Net expenses   $ 770,309     $ 317,173     $ 223,090    
Net investment income   $ 5,263,588     $ 1,909,215     $ 1,268,418    
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) —  
Investment transactions (identified cost basis)   $ 70,306     $ (148,776 )   $ 89,825    
Financial futures contracts     2,437,563       871,600       458,477    
Net realized gain   $ 2,507,869     $ 722,824     $ 548,302    
Change in unrealized appreciation (depreciation) —  
Investments (identified cost basis)   $ (903,759 )   $ (468,902 )   $ (609,552 )  
Financial futures contracts     590,467       134,322       78,006    
Net change in unrealized appreciation (depreciation)   $ (313,292 )   $ (334,580 )   $ (531,546 )  
Net realized and unrealized gain   $ 2,194,577     $ 388,244     $ 16,756    
Distributions to preferred shareholders  
From net investment income   $ (1,161,263 )   $ (423,131 )   $ (305,229 )  
Net increase in net assets from operations   $ 6,296,902     $ 1,874,328     $ 979,945    

 

See notes to financial statements

35



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Operations

For the Six Months Ended March 31, 2006

    Insured
Massachusetts Fund
  Insured
Michigan Fund
  Insured
New Jersey Fund
 
Investment Income  
Interest   $ 1,031,288     $ 896,736     $ 1,515,568    
Total investment income   $ 1,031,288     $ 896,736     $ 1,515,568    
Expenses  
Investment adviser fee   $ 114,964     $ 98,982     $ 168,552    
Trustees' fees and expenses     879       67       863    
Legal and accounting services     15,829       13,388       14,753    
Printing and postage     4,241       2,220       4,002    
Custodian fee     17,594       19,442       25,488    
Transfer and dividend disbursing agent     14,743       12,899       19,313    
Preferred shares remarketing agent fee     19,321       16,182       28,048    
Miscellaneous     12,582       16,270       17,641    
Total expenses   $ 200,153     $ 179,450     $ 278,660    
Deduct —  
Reduction of custodian fee   $ 3,158     $ 2,723     $ 3,744    
Reduction of investment adviser fee     31,352       26,995       45,969    
Total expense reductions   $ 34,510     $ 29,718     $ 49,713    
Net expenses   $ 165,643     $ 149,732     $ 228,947    
Net investment income   $ 865,645     $ 747,004     $ 1,286,621    
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) —  
Investment transactions (identified cost basis)   $ 76,805     $     $ 117,392    
Financial futures contracts     392,085       243,594       588,127    
Net realized gain   $ 468,890     $ 243,594     $ 705,519    
Change in unrealized appreciation (depreciation) —  
Investments (identified cost basis)   $ (411,460 )   $ (232,976 )   $ (742,409 )  
Financial futures contracts     110,937       74,093       166,406    
Net change in unrealized appreciation (depreciation)   $ (300,523 )   $ (158,883 )   $ (576,003 )  
Net realized and unrealized gain   $ 168,367     $ 84,711     $ 129,516    
Distributions to preferred shareholders  
From net investment income   $ (207,284 )   $ (177,995 )   $ (294,558 )  
Net increase in net assets from operations   $ 826,728     $ 653,720     $ 1,121,579    

 

See notes to financial statements

36



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Operations

For the Six Months Ended March 31, 2006

    Insured
New York Fund II
  Insured
Ohio Fund
  Insured
Pennsylvania Fund
 
Investment Income  
Interest   $ 1,486,547     $ 1,441,840     $ 1,723,168    
Total investment income   $ 1,486,547     $ 1,441,840     $ 1,723,168    
Expenses  
Investment adviser fee   $ 168,444     $ 162,078     $ 192,034    
Trustees' fees and expenses     727       879       912    
Legal and accounting services     18,825       16,257       14,756    
Printing and postage     3,619       4,550       4,255    
Custodian fee     21,386       18,493       35,893    
Transfer and dividend disbursing agent     8,455       18,355       21,422    
Preferred shares remarketing agent fee     28,048       27,269       32,411    
Miscellaneous     19,001       12,295       18,636    
Total expenses   $ 268,505     $ 260,176     $ 320,319    
Deduct —  
Reduction of custodian fee   $ 4,272     $ 4,120     $ 5,528    
Reduction of investment adviser fee     45,940       44,204       52,373    
Total expense reductions   $ 50,212     $ 48,324     $ 57,901    
Net expenses   $ 218,293     $ 211,852     $ 262,418    
Net investment income   $ 1,268,254     $ 1,229,988     $ 1,460,750    
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) —  
Investment transactions (identified cost basis)   $ 288,304     $ 79,556     $ (93 )  
Financial futures contracts     633,446       588,915       948,910    
Net realized gain   $ 921,750     $ 668,471     $ 948,817    
Change in unrealized appreciation (depreciation) —  
Investments (identified cost basis)   $ (714,854 )   $ (501,757 )   $ (592,035 )  
Financial futures contracts     112,992       192,581       177,539    
Net change in unrealized appreciation (depreciation)   $ (601,862 )   $ (309,176 )   $ (414,496 )  
Net realized and unrealized gain   $ 319,888     $ 359,295     $ 534,321    
Distributions to preferred shareholders  
From net investment income   $ (274,205 )   $ (299,885 )   $ (340,307 )  
From net realized gain     (37,328 )              
Total distributions to preferred shareholders   $ (311,533 )   $ (299,885 )   $ (340,307 )  
Net increase in net assets from operations   $ 1,276,609     $ 1,289,398     $ 1,654,764    

 

See notes to financial statements

37



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Six Months Ended March 31, 2006

Increase (Decrease) in Net Assets   Insured
Municipal Fund II
  Insured
California Fund II
  Insured
Florida Fund
 
From operations —  
Net investment income   $ 5,263,588     $ 1,909,215     $ 1,268,418    
Net realized gain from investment transactions and financial futures contracts     2,507,869       722,824       548,302    
Net change in unrealized appreciation (depreciation) from investments and
financial futures contracts
    (313,292 )     (334,580 )     (531,546 )  
Distributions to preferred shareholders  
From net investment income     (1,161,263 )     (423,131 )     (305,229 )  
Net increase in net assets from operations   $ 6,296,902     $ 1,874,328     $ 979,945    
Distributions to common shareholders —  
From net investment income   $ (4,493,014 )   $ (1,556,142 )   $ (997,781 )  
Total distributions to common shareholders   $ (4,493,014 )   $ (1,556,142 )   $ (997,781 )  
Capital share transactions —  
Reinvestment of distributions to common shareholders   $ 67,445     $     $ 24,117    
Net increase in net assets from capital share transactions   $ 67,445     $     $ 24,117    
Net increase in net assets   $ 1,871,333     $ 318,186     $ 6,281    
Net Assets Applicable to Common Shares  
At beginning of period   $ 151,936,585     $ 57,186,903     $ 38,268,812    
At end of period   $ 153,807,918     $ 57,505,089     $ 38,275,093    
Undistributed net investment income included
in net assets applicable to common shares
 
At end of period   $ 382,518     $ 143,202     $ 73,282    

 

See notes to financial statements

38



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Six Months Ended March 31, 2006

Increase (Decrease) in Net Assets   Insured
Massachusetts Fund
  Insured
Michigan Fund
  Insured
New Jersey Fund
 
From operations —  
Net investment income   $ 865,645     $ 747,004     $ 1,286,621    
Net realized gain from investment transactions and financial futures contracts     468,890       243,594       705,519    
Net change in unrealized appreciation (depreciation) from investments and
financial futures contracts
    (300,523 )     (158,883 )     (576,003 )  
Distributions to preferred shareholders  
From net investment income     (207,284 )     (177,995 )     (294,558 )  
Net increase in net assets from operations   $ 826,728     $ 653,720     $ 1,121,579    
Distributions to common shareholders —  
From net investment income   $ (751,324 )   $ (640,920 )   $ (1,127,158 )  
Total distributions to common shareholders   $ (751,324 )   $ (640,920 )   $ (1,127,158 )  
Capital share transactions —  
Reinvestment of distributions to common shareholders   $ 21,480     $ 9,334     $ 25,602    
Net increase in net assets from capital share transactions   $ 21,480     $ 9,334     $ 25,602    
Net increase in net assets   $ 96,884     $ 22,134     $ 20,023    
Net Assets Applicable to Common Shares  
At beginning of period   $ 26,441,449     $ 22,670,179     $ 39,032,337    
At end of period   $ 26,538,333     $ 22,692,313     $ 39,052,360    
Undistributed net investment income included
in net assets applicable to common shares
 
At end of period   $ 85,091     $ 17,996     $ 107,437    

 

See notes to financial statements

39



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Six Months Ended March 31, 2006

Increase (Decrease) in Net Assets   Insured
New York Fund II
  Insured
Ohio Fund
  Insured
Pennsylvania Fund
 
From operations —  
Net investment income   $ 1,268,254     $ 1,229,988     $ 1,460,750    
Net realized gain from investment transactions and financial futures contracts     921,750       668,471       948,817    
Net change in unrealized appreciation (depreciation) from investments and
financial futures contracts
    (601,862 )     (309,176 )     (414,496 )  
Distributions to preferred shareholders  
From net investment income     (274,205 )     (299,885 )     (340,307 )  
From net realized gain     (37,328 )              
Net increase in net assets from operations   $ 1,276,609     $ 1,289,398     $ 1,654,764    
Distributions to common shareholders —  
From net investment income   $ (979,812 )   $ (919,658 )   $ (1,154,999 )  
From net realized gain     (217,935 )              
Total distributions to common shareholders   $ (1,197,747 )   $ (919,658 )   $ (1,154,999 )  
Capital share transactions —  
Reinvestment of distributions to common shareholders   $     $     $ 14,661    
Net increase in net assets from capital share transactions   $     $     $ 14,661    
Net increase in net assets   $ 78,862     $ 369,740     $ 514,426    
Net Assets Applicable to Common Shares  
At beginning of period   $ 39,100,564     $ 37,254,742     $ 43,919,813    
At end of period   $ 39,179,426     $ 37,624,482     $ 44,434,239    
Undistributed net investment income included
in net assets applicable to common shares
 
At end of period   $ 126,829     $ 58,635     $ 72,512    

 

See notes to financial statements

40



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Statements of Changes in Net Assets

For the Year Ended September 30, 2005

Increase (Decrease) in Net Assets   Insured
Municipal Fund II
  Insured
California Fund II
  Insured
Florida Fund
 
From operations —  
Net investment income   $ 10,846,557     $ 3,890,616     $ 2,614,424    
Net realized loss from investment transactions and financial futures contracts     (3,697,302 )     (1,103,866 )     (642,114 )  
Net change in unrealized appreciation (depreciation) from investments and
financial futures contracts
    7,278,731       2,475,785       1,670,118    
Distributions to preferred shareholders
From net investment income
    (1,672,528 )     (558,126 )     (408,998 )  
From net realized gain     (2,835 )              
Net increase in net assets from operations   $ 12,752,623     $ 4,704,409     $ 3,233,430    
Distributions to common shareholders —  
From net investment income   $ (9,921,669 )   $ (3,559,348 )   $ (2,330,794 )  
From net realized gain     (28,757 )              
Total distributions to common shareholders   $ (9,950,426 )   $ (3,559,348 )   $ (2,330,794 )  
Capital share transactions —  
Reinvestment of distributions to common shareholders   $ 77,370     $ 86,785     $ 154,716    
Net increase in net assets from capital share transactions   $ 77,370     $ 86,785     $ 154,716    
Net increase in net assets   $ 2,879,567     $ 1,231,846     $ 1,057,352    
Net Assets Applicable to Common Shares  
At beginning of year   $ 149,057,018     $ 55,955,057     $ 37,211,460    
At end of year   $ 151,936,585     $ 57,186,903     $ 38,268,812    
Undistributed net investment income included
in net assets applicable to common shares
 
At end of year   $ 773,207     $ 213,260     $ 107,874    

 

See notes to financial statements

41



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Statements of Changes in Net Assets

For the Year Ended September 30, 2005

Increase (Decrease) in Net Assets   Insured
Massachusetts Fund
  Insured
Michigan Fund
  Insured
New Jersey Fund
 
From operations —  
Net investment income   $ 1,802,336     $ 1,568,355     $ 2,659,492    
Net realized loss from investment transactions and financial futures contracts     (609,169 )     (627,156 )     (531,919 )  
Net change in unrealized appreciation (depreciation) from investments and
financial futures contracts
    1,117,600       978,843       1,390,392    
Distributions to preferred shareholders  
From net investment income     (250,700 )     (247,412 )     (406,069 )  
Net increase in net assets from operations   $ 2,060,067     $ 1,672,630     $ 3,111,896    
Distributions to common shareholders —  
From net investment income   $ (1,657,895 )   $ (1,431,507 )   $ (2,456,689 )  
Total distributions to common shareholders   $ (1,657,895 )   $ (1,431,507 )   $ (2,456,689 )  
Capital share transactions —  
Reinvestment of distributions to common shareholders   $ 57,153     $ 33,377     $ 50,800    
Net increase in net assets from capital share transactions   $ 57,153     $ 33,377     $ 50,800    
Net increase in net assets   $ 459,325     $ 274,500     $ 706,007    
Net Assets Applicable to Common Shares  
At beginning of year   $ 25,982,124     $ 22,395,679     $ 38,326,330    
At end of year   $ 26,441,449     $ 22,670,179     $ 39,032,337    
Undistributed net investment income included
in net assets applicable to common shares
 
At end of year   $ 178,054     $ 89,907     $ 242,532    

 

See notes to financial statements

42



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Statements of Changes in Net Assets

For the Year Ended September 30, 2005

Increase (Decrease) in Net Assets   Insured
New York Fund II
  Insured
Ohio Fund
  Insured
Pennsylvania Fund
 
From operations —  
Net investment income   $ 2,574,609     $ 2,526,350     $ 2,997,257    
Net realized loss from investment transactions and financial futures contracts     (60,395 )     (1,337,713 )     (617,701 )  
Net change in unrealized appreciation (depreciation) from investments and
financial futures contracts
    1,239,929       1,865,829       2,343,740    
Distributions to preferred shareholders  
From net investment income     (378,349 )     (434,877 )     (507,628 )  
Net increase in net assets from operations   $ 3,375,794     $ 2,619,589     $ 4,215,668    
Distributions to common shareholders —  
From net investment income   $ (2,379,407 )   $ (2,163,391 )   $ (2,685,275 )  
Total distributions to common shareholders   $ (2,379,407 )   $ (2,163,391 )   $ (2,685,275 )  
Capital share transactions —  
Reinvestment of distributions to common shareholders   $ 15,536     $ 52,662     $ 37,173    
Net increase in net assets from capital share transactions   $ 15,536     $ 52,662     $ 37,173    
Net increase in net assets   $ 1,011,923     $ 508,860     $ 1,567,566    
Net Assets Applicable to Common Shares  
At beginning of year   $ 38,088,641     $ 36,745,882     $ 42,352,247    
At end of year   $ 39,100,564     $ 37,254,742     $ 43,919,813    
Undistributed net investment income included
in net assets applicable to common shares
 
At end of year   $ 112,592     $ 48,190     $ 107,068    

 

See notes to financial statements

43




Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Municipal Fund II  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.310     $ 15.030     $ 14.790     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.530     $ 1.094     $ 1.162     $ 0.879    
Net realized and unrealized gain     0.230       0.359       0.334       0.508    
Distributions to preferred shareholders  
From net investment income     (0.117 )     (0.169 )     (0.080 )     (0.071 )  
From net realized gain           0.000 (4)      (0.017 )        
Total income from operations   $ 0.643     $ 1.284     $ 1.399     $ 1.316    
Less distributions to common shareholders  
From net investment income   $ (0.453 )   $ (1.001 )   $ (1.001 )   $ (0.714 )  
From net realized gain           (0.003 )     (0.158 )        
Total distributions to common shareholders   $ (0.453 )   $ (1.004 )   $ (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 period (Common shares)   $ 15.500     $ 15.310     $ 15.030     $ 14.790    
Market value — End of period (Common shares)   $ 14.950     $ 16.170     $ 14.820     $ 14.000    
Total Investment Return on Net Asset Value(5)      4.25 %     8.77 %     10.00 %     8.46 %(6)   
Total Investment Return on Market Value(5)      (4.80 )%     16.51 %     14.59 %     2.67 %(6)   

 

See notes to financial statements

44



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Municipal Fund II  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data† ††   
Net assets applicable to common shares, end of period (000's omitted)   $ 153,808     $ 151,937     $ 149,057     $ 146,574    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(7)     1.04 %(8)     1.03 %     1.00 %     0.86 %(8)  
Net expenses after custodian fee reduction(7)     1.02 %(8)     1.02 %     1.00 %     0.84 %(8)  
Net investment income(7)     6.94 %(8)     7.11 %     7.92 %     7.14 %(8)  
Portfolio Turnover     10 %     11 %     34 %     79 %  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, 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)     1.27 %(8)     1.27 %     1.24 %     1.09 %(8)  
Expenses after custodian fee reduction(7)     1.25 %(8)     1.26 %     1.24 %     1.07 %(8)  
Net investment income(7)     6.70 %(8)     6.87 %     7.68 %     6.91 %(8)  
Net investment income per share   $ 0.512     $ 1.057     $ 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     0.65 %(8)     0.65 %     0.63 %     0.57 %(8)  
Net expenses after custodian fee reduction     0.64 %(8)     0.65 %     0.62 %     0.56 %(8)  
Net investment income     4.41 %(8)     4.52 %     4.94 %     4.72 %(8)  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, 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     0.80 %(8)     0.80 %     0.78 %     0.72 %(8)  
Expenses after custodian fee reduction     0.79 %(8)     0.80 %     0.77 %     0.71 %(8)  
Net investment income     4.26 %(8)     4.37 %     4.79 %     4.57 %(8)  
Senior Securities:  
Total preferred shares outstanding     3,500       3,500       3,500       3,500    
Asset coverage per preferred share(9)   $ 68,945     $ 68,411     $ 67,599     $ 66,893    
Involuntary liquidation preference per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(10)   $ 25,000     $ 25,000     $ 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)  Equal to less than $0.001 per share.

(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

45



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured California Fund II  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 14.810     $ 14.510     $ 14.560     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.494     $ 1.008     $ 1.060     $ 0.822    
Net realized and unrealized gain (loss)     0.099       0.360       (0.022 )     0.281    
Distributions to preferred shareholders  
From net investment income     (0.110 )     (0.145 )     (0.076 )     (0.050 )  
From net realized gain                 (0.004 )        
Total income from operations   $ 0.483     $ 1.223     $ 0.958     $ 1.053    
Less distributions to common shareholders  
From net investment income   $ (0.403 )   $ (0.923 )   $ (0.948 )   $ (0.675 )  
From net realized gain                 (0.060 )        
Total distributions to common shareholders   $ (0.403 )   $ (0.923 )   $ (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 period (Common shares)   $ 14.890     $ 14.810     $ 14.510     $ 14.560    
Market value — End of period (Common shares)   $ 14.750     $ 14.770     $ 14.580     $ 13.800    
Total Investment Return on Net Asset Value(4)      3.37 %     8.65 %     6.84 %     6.62 %(5)   
Total Investment Return on Market Value(4)      2.67 %     7.84 %     13.27 %     1.06 %(5)   

 

See notes to financial statements

46



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured California Fund II  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data† ††   
Net assets applicable to common shares, end of period (000's omitted)   $ 57,505     $ 57,187     $ 55,955     $ 56,083    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(6)     1.13 %(7)     1.10 %     1.09 %     0.98 %(7)  
Net expenses after custodian fee reduction(6)     1.11 %(7)     1.06 %     1.08 %     0.96 %(7)  
Net investment income(6)     6.70 %(7)     6.81 %     7.27 %     6.75 %(7)  
Portfolio Turnover     8 %     15 %     13 %     36 %  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios and net investment income per share would have been as follows:

Ratios (As a percentage of average net assets applicable to common shares):  
Expenses(6)     1.37 %(7)     1.34 %     1.33 %     1.22 %(7)  
Expenses after custodian fee reduction(6)     1.35 %(7)     1.30 %     1.32 %     1.20 %(7)  
Net investment income(6)     6.46 %(7)     6.57 %     7.03 %     6.51 %(7)  
Net investment income per share   $ 0.477     $ 0.973     $ 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     0.71 %(7)     0.69 %     0.68 %     0.64 %(7)  
Net expenses after custodian fee reduction     0.70 %(7)     0.67 %     0.67 %     0.63 %(7)  
Net investment income     4.21 %(7)     4.28 %     4.54 %     4.46 %(7)  

 

†  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, 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 %(7)     0.84 %     0.83 %     0.80 %(7)  
Expenses after custodian fee reduction     0.85 %(7)     0.82 %     0.82 %     0.79 %(7)  
Net investment income     4.06 %(7)     4.13 %     4.39 %     4.30 %(7)  
Senior Securities:  
Total preferred shares outstanding     1,350       1,350       1,350       1,350    
Asset coverage per preferred share(8)   $ 67,600     $ 67,364     $ 66,455     $ 66,545    
Involuntary liquidation preference per preferred share(9)   $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(9)   $ 25,000     $ 25,000     $ 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 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

47



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Florida Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 14.870     $ 14.520     $ 14.550     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.493     $ 1.018     $ 1.062     $ 0.788    
Net realized and unrealized gain     0.004       0.399       0.002 (4)      0.319    
Distributions to preferred shareholders  
From net investment income     (0.119 )     (0.159 )     (0.077 )     (0.060 )  
From net realized gain                 (0.007 )        
Total income from operations   $ 0.378     $ 1.258     $ 0.980     $ 1.047    
Less distributions to common shareholders  
From net investment income   $ (0.388 )   $ (0.908 )   $ (0.930 )   $ (0.675 )  
From net realized gain                 (0.080 )        
Total distributions to common shareholders   $ (0.388 )   $ (0.908 )   $ (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)   $ 14.860     $ 14.870     $ 14.520     $ 14.550    
Market value — End of period (Common shares)   $ 14.130     $ 14.980     $ 14.750     $ 14.100    
Total Investment Return on Net Asset Value(5)      2.63 %     8.85 %     7.12 %     6.37 %(6)   
Total Investment Return on Market Value(5)      (3.13 )%     7.94 %     12.29 %     3.08 %(6)   

 

See notes to financial statements

48



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Florida Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data† ††   
Net assets applicable to common shares, end of period (000's omitted)   $ 38,275     $ 38,269     $ 37,211     $ 37,186    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(7)     1.18 %(8)     1.17 %     1.14 %     1.04 %(8)  
Net expenses after custodian fee reduction(7)     1.17 %(8)     1.16 %     1.14 %     0.98 %(8)  
Net investment income(7)     6.68 %(8)     6.84 %     7.30 %     6.45 %(8)  
Portfolio Turnover     8 %     14 %     19 %     29 %  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, 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)     1.42 %(8)     1.41 %     1.38 %     1.29 %(8)  
Expenses after custodian fee reduction(7)     1.41 %(8)     1.40 %     1.38 %     1.23 %(8)  
Net investment income(7)     6.44 %(8)     6.60 %     7.06 %     6.20 %(8)  
Net investment income per share   $ 0.475     $ 0.982     $ 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     0.75 %(8)     0.74 %     0.71 %     0.69 %(8)  
Net expenses after custodian fee reduction     0.74 %(8)     0.73 %     0.71 %     0.65 %(8)  
Net investment income     4.20 %(8)     4.30 %     4.55 %     4.25 %(8)  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios would have been as follows:

Ratios (As a percentage of average total net assets):  
Expenses     0.90 %(8)     0.89 %     0.86 %     0.86 %(8)  
Expenses after custodian fee reduction     0.89 %(8)     0.88 %     0.86 %     0.82 %(8)  
Net investment income     4.05 %(8)     4.15 %     4.40 %     4.08 %(8)  
Senior Securities:  
Total preferred shares outstanding     900       900       900       900    
Asset coverage per preferred share(9)   $ 67,536     $ 67,528     $ 66,348     $ 66,319    
Involuntary liquidation preference per preferred share(10)   $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(10)   $ 25,000     $ 25,000     $ 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 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 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 number by the number of preferred shares outstanding.

(10)  Plus accumulated and unpaid dividends.

See notes to financial statements

49



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Massachusetts Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.100     $ 14.870     $ 14.670     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.494     $ 1.031     $ 1.109     $ 0.823    
Net realized and unrealized gain     0.103       0.290       0.350       0.411    
Distributions to preferred shareholders  
From net investment income     (0.118 )     (0.143 )     (0.069 )     (0.058 )  
From net realized gain                 (0.017 )        
Total income from operations   $ 0.479     $ 1.178     $ 1.373     $ 1.176    
Less distributions to common shareholders  
From net investment income   $ (0.429 )   $ (0.948 )   $ (0.948 )   $ (0.675 )  
From net realized gain                 (0.225 )        
Total distributions to common shareholders   $ (0.429 )   $ (0.948 )   $ (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)   $ 15.150     $ 15.100     $ 14.870     $ 14.670    
Market value — End of period (Common shares)   $ 15.500     $ 17.350     $ 15.570     $ 14.450    
Total Investment Return on Net Asset Value(4)      3.16 %     7.74 %     9.74 %     7.22 %(5)   
Total Investment Return on Market Value(4)      (8.14 )%     18.23 %     16.66 %     5.61 %(5)   

 

See notes to financial statements

50



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Massachusetts Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data† ††   
Net assets applicable to common shares, end of period (000's omitted)   $ 26,538     $ 26,441     $ 25,982     $ 25,586    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(6)     1.28 %(7)     1.25 %     1.24 %     1.10 %(7)  
Net expenses after custodian fee reduction(6)     1.26 %(7)     1.24 %     1.24 %     1.06 %(7)  
Net investment income(6)     6.57 %(7)     6.79 %     7.58 %     6.73 %(7)  
Portfolio Turnover     4 %     12 %     39 %     81 %  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, 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 %(7)     1.49 %     1.48 %     1.36 %(7)  
Expenses after custodian fee reduction(6)     1.50 %(7)     1.48 %     1.48 %     1.32 %(7)  
Net investment income(6)     6.33 %(7)     6.55 %     7.34 %     6.47 %(7)  
Net investment income per share   $ 0.476     $ 0.994     $ 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     0.81 %(7)     0.79 %     0.77 %     0.73 %(7)  
Net expenses after custodian fee reduction     0.79 %(7)     0.78 %     0.77 %     0.70 %(7)  
Net investment income     4.14 %(7)     4.29 %     4.72 %     4.42 %(7)  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, 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     0.96 %(7)     0.94 %     0.92 %     0.90 %(7)  
Expenses after custodian fee reduction     0.94 %(7)     0.93 %     0.92 %     0.87 %(7)  
Net investment income     3.99 %(7)     4.14 %     4.57 %     4.25 %(7)  
Senior Securities:  
Total preferred shares outstanding     620       620       620       620    
Asset coverage per preferred share(8)   $ 67,806     $ 67,649     $ 66,907     $ 66,270    
Involuntary liquidation preference per preferred share(9)   $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(9)   $ 25,000     $ 25,000     $ 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 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

51



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Michigan Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.000     $ 14.840     $ 14.520     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.494     $ 1.039     $ 1.105     $ 0.824    
Net realized and unrealized gain     0.058       0.233       0.252       0.262    
Distributions to preferred shareholders  
From net investment income     (0.118 )     (0.164 )     (0.089 )     (0.058 )  
Total income from operations   $ 0.434     $ 1.108     $ 1.268     $ 1.028    
Less distributions to common shareholders  
From net investment income   $ (0.424 )   $ (0.948 )   $ (0.948 )   $ (0.675 )  
Total distributions to common shareholders   $ (0.424 )   $ (0.948 )   $ (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)   $ 15.010     $ 15.000     $ 14.840     $ 14.520    
Market value — End of period (Common shares)   $ 14.830     $ 16.200     $ 15.490     $ 14.410    
Total Investment Return on Net Asset Value(4)      2.93 %     7.52 %     8.96 %     6.12 %(5)   
Total Investment Return on Market Value(4)      (5.84 )%     11.26 %     14.60 %     5.31 %(5)   

 

See notes to financial statements

52



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Michigan Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data† ††   
Net assets applicable to common shares, end of period (000's omitted)   $ 22,692     $ 22,670     $ 22,396     $ 21,893    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(6)     1.35 %(7)     1.28 %     1.28 %     1.14 %(7)  
Net expenses after custodian fee reduction(6)     1.33 %(7)     1.27 %     1.27 %     1.09 %(7)  
Net investment income(6)     6.63 %(7)     6.88 %     7.56 %     6.75 %(7)  
Portfolio Turnover     0 %     6 %     8 %     79 %  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, 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)     1.59 %(7)     1.52 %     1.52 %     1.41 %(7)  
Expenses after custodian fee reduction(6)     1.57 %(7)     1.51 %     1.51 %     1.36 %(7)  
Net investment income(6)     6.39 %(7)     6.64 %     7.32 %     6.48 %(7)  
Net investment income per share   $ 0.476     $ 1.004     $ 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     0.85 %(7)     0.81 %     0.79 %     0.75 %(7)  
Net expenses after custodian fee reduction     0.83 %(7)     0.80 %     0.78 %     0.71 %(7)  
Net investment income     4.15 %(7)     4.32 %     4.69 %     4.42 %(7)  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, a reimbursement of expenses by the Adviser. 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     1.00 %(7)     0.96 %     0.94 %     0.93 %(7)  
Expenses after custodian fee reduction     0.98 %(7)     0.95 %     0.93 %     0.89 %(7)  
Net investment income     4.00 %(7)     4.17 %     4.54 %     4.25 %(7)  
Senior Securities:  
Total preferred shares outstanding     540       540       540       540    
Asset coverage per preferred share(8)   $ 67,029     $ 66,986     $ 66,475     $ 65,543    
Involuntary liquidation preference per preferred share(9)   $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(9)   $ 25,000     $ 25,000     $ 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 by the number of preferred shares outstanding.

(9)  Plus accumulated and unpaid dividends.

See notes to financial statements

53



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured New Jersey Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.240     $ 14.990     $ 14.760     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.502     $ 1.039     $ 1.117     $ 0.826    
Net realized and unrealized gain     0.053       0.330       0.361       0.489    
Distributions to preferred shareholders  
From net investment income     (0.115 )     (0.159 )     (0.067 )     (0.058 )  
From net realized gain                 (0.015 )        
Total income from operations   $ 0.440     $ 1.210     $ 1.396     $ 1.257    
Less distributions to common shareholders  
From net investment income   $ (0.440 )   $ (0.960 )   $ (0.960 )   $ (0.675 )  
From net realized gain                 (0.206 )        
Total distributions to common shareholders   $ (0.440 )   $ (0.960 )   $ (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 period (Common shares)   $ 15.240     $ 15.240     $ 14.990     $ 14.760    
Market value — End of period (Common shares)   $ 15.700     $ 16.240     $ 15.490     $ 14.520    
Total Investment Return on Net Asset Value(4)      2.88 %     8.18 %     9.83 %     7.89 %(5)   
Total Investment Return on Market Value(4)      (0.54 )%     11.56 %     15.37 %     6.14 %(5)   

 

See notes to financial statements

54



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured New Jersey Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data† ††   
Net assets applicable to common shares, end of period (000's omitted)   $ 39,052     $ 39,032     $ 38,326     $ 37,687    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(6)     1.20 %(7)     1.15 %     1.13 %     1.03 %(7)  
Net expenses after custodian fee reduction(6)     1.18 %(7)     1.14 %     1.13 %     0.99 %(7)  
Net investment income(6)     6.62 %(7)     6.78 %     7.54 %     6.69 %(7)  
Portfolio Turnover     12 %     18 %     22 %     68 %  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, 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)     1.44 %(7)     1.39 %     1.37 %     1.28 %(7)  
Expenses after custodian fee reduction(6)     1.42 %(7)     1.38 %     1.37 %     1.24 %(7)  
Net investment income(6)     6.38 %(7)     6.54 %     7.30 %     6.44 %(7)  
Net investment income per share   $ 0.484     $ 1.003     $ 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     0.76 %(7)     0.73 %     0.71 %     0.69 %(7)  
Net expenses after custodian fee reduction     0.75 %(7)     0.72 %     0.71 %     0.66 %(7)  
Net investment income     4.20 %(7)     4.31 %     4.73 %     4.43 %(7)  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, 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     0.91 %(7)     0.88 %     0.86 %     0.85 %(7)  
Expenses after custodian fee reduction     0.90 %(7)     0.87 %     0.86 %     0.82 %(7)  
Net investment income     4.05 %(7)     4.16 %     4.58 %     4.26 %(7)  
Senior Securities:  
Total preferred shares outstanding     900       900       900       900    
Asset coverage per preferred share(8)   $ 68,398     $ 68,375     $ 67,588     $ 66,875    
Involuntary liquidation preference per preferred share(9)   $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(9)   $ 25,000     $ 25,000     $ 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

55



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured New York Fund II  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.300     $ 14.910     $ 14.870     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.496     $ 1.008     $ 1.080     $ 0.818    
Net realized and unrealized gain     0.124       0.462       0.223       0.617    
Distributions to preferred shareholders  
From net investment income     (0.107 )     (0.148 )     (0.063 )     (0.057 )  
From net realized gain     (0.015 )           (0.016 )        
Total income from operations   $ 0.498     $ 1.322     $ 1.224     $ 1.378    
Less distributions to common shareholders  
From net investment income   $ (0.383 )   $ (0.932 )   $ (0.963 )   $ (0.686 )  
From net realized gain     (0.085 )           (0.221 )        
Total distributions to common shareholders   $ (0.468 )   $ (0.932 )   $ (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)   $ 15.330     $ 15.300     $ 14.910     $ 14.870    
Market value — End of period (Common shares)   $ 14.460     $ 14.570     $ 14.460     $ 13.710    
Total Investment Return on Net Asset Value     3.46 %(4)      9.17 %(4)      8.75 %(4)(10)      8.87 %(5)   
Total Investment Return on Market Value     2.48 %(4)      7.19 %(4)      14.39 %(4)(10)      0.38 %(5)   

 

See notes to financial statements

56



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured New York Fund II  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data† ††   
Net assets applicable to common shares, end of period (000's omitted)   $ 39,179     $ 39,101     $ 38,089     $ 37,984    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(6)     1.15 %(7)     1.21 %     1.14 %     1.03 %(7)  
Net expenses after custodian fee reduction(6)     1.13 %(7)     1.19 %     1.13 %     0.98 %(7)  
Net investment income(6)     6.54 %(7)     6.60 %     7.31 %     6.65 %(7)  
Portfolio Turnover     14 %     31 %     28 %     66 %  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, 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 %(7)     1.45 %     1.38 %     1.28 %(7)  
Expenses after custodian fee reduction(6)     1.36 %(7)     1.43 %     1.37 %     1.23 %(7)  
Net investment income(6)     6.30 %(7)     6.36 %     7.07 %     6.40 %(7)  
Net investment income per share   $ 0.478     $ 0.972     $ 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     0.72 %(7)     0.77 %     0.71 %     0.68 %(7)  
Net expenses after custodian fee reduction     0.71 %(7)     0.76 %     0.71 %     0.65 %(7)  
Net investment income     4.14 %(7)     4.18 %     4.58 %     4.40 %(7)  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios would have been as follows:

Ratios (As a percentage of average total net assets):  
Expenses     0.87 %(7)     0.92 %     0.86 %     0.85 %(7)  
Expenses after custodian fee reduction     0.86 %(7)     0.91 %     0.86 %     0.82 %(7)  
Net investment income     3.99 %(7)     4.03 %     4.43 %     4.23 %(7)  
Senior Securities:  
Total preferred shares outstanding     900       900       900       900    
Asset coverage per preferred share(8)   $ 68,532     $ 68,450     $ 67,323     $ 67,209    
Involuntary liquidation preference per preferred share(9)   $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(9)   $ 25,000     $ 25,000     $ 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



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Ohio Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 14.830     $ 14.640     $ 14.620     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.490     $ 1.006     $ 1.054     $ 0.776    
Net realized and unrealized gain     0.135       0.219       0.018       0.402    
Distributions to preferred shareholders  
From net investment income     (0.119 )     (0.173 )     (0.086 )     (0.060 )  
From net realized gain                 (0.003 )        
Total income from operations   $ 0.506     $ 1.052     $ 0.983     $ 1.118    
Less distributions to common shareholders  
From net investment income   $ (0.366 )   $ (0.862 )   $ (0.930 )   $ (0.675 )  
From net realized gain                 (0.033 )        
Total distributions to common shareholders   $ (0.366 )   $ (0.862 )   $ (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)   $ 14.970     $ 14.830     $ 14.640     $ 14.620    
Market value — End of period (Common shares)   $ 14.730     $ 14.510     $ 15.200     $ 14.430    
Total Investment Return on Net Asset Value(4)      3.54 %     7.29 %     6.94 %     6.85 %(5)   
Total Investment Return on Market Value(4)      4.13 %     1.11 %     12.49 %     5.46 %(5)   

 

See notes to financial statements

58



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Ohio Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data† ††   
Net assets applicable to common shares, end of period (000's omitted)   $ 37,624     $ 37,255     $ 36,746     $ 36,610    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(6)     1.16 %(7)     1.18 %     1.17 %     1.05 %(7)  
Net expenses after custodian fee reduction(6)     1.14 %(7)     1.16 %     1.16 %     0.99 %(7)  
Net investment income(6)     6.63 %(7)     6.76 %     7.30 %     6.38 %(7)  
Portfolio Turnover     11 %     8 %     25 %     32 %  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios and net investment income would have been as follows:

Ratios (As a percentage of average net assets applicable to common shares):  
Expenses(6)     1.40 %(7)     1.42 %     1.41 %     1.30 %(7)  
Expenses after custodian fee reduction(6)     1.38 %(7)     1.40 %     1.40 %     1.24 %(7)  
Net investment income(6)     6.39 %(7)     6.52 %     7.06 %     6.13 %(7)  
Net investment income per share   $ 0.472     $ 0.971     $ 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 %(7)     0.74 %     0.73 %     0.69 %(7)  
Net expenses after custodian fee reduction     0.72 %(7)     0.73 %     0.72 %     0.65 %(7)  
Net investment income     4.17 %(7)     4.26 %     4.55 %     4.21 %(7)  

 

  The operating expenses of the Fund reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, 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 %(7)     0.89 %     0.88 %     0.86 %(7)  
Expenses after custodian fee reduction     0.87 %(7)     0.88 %     0.87 %     0.82 %(7)  
Net investment income     4.02 %(7)     4.11 %     4.40 %     4.04 %(7)  
Senior Securities:  
Total preferred shares outstanding     875       875       875       875    
Asset coverage per preferred share(8)   $ 67,999     $ 67,586     $ 66,999     $ 66,841    
Involuntary liquidation preference per preferred share(9)   $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(9)   $ 25,000     $ 25,000     $ 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

59



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Pennsylvania Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 14.930     $ 14.410     $ 14.580     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.496     $ 1.019     $ 1.068     $ 0.811    
Net realized and unrealized gain (loss)     0.182       0.587       (0.066 )     0.331    
Distributions to preferred shareholders  
From net investment income     (0.116 )     (0.173 )     (0.083 )     (0.060 )  
From net realized gain                 (0.011 )        
Total income from operations   $ 0.562     $ 1.433     $ 0.908     $ 1.082    
Less distributions to common shareholders  
From net investment income   $ (0.392 )   $ (0.913 )   $ (0.938 )   $ (0.681 )  
From net realized gain                 (0.140 )        
Total distributions to common shareholders   $ (0.392 )   $ (0.913 )   $ (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)   $ 15.100     $ 14.930     $ 14.410     $ 14.580    
Market value — End of period (Common shares)   $ 14.810     $ 15.540     $ 14.980     $ 14.330    
Total Investment Return on Net Asset Value(4)      3.81 %     10.01 %     6.43 %     6.63 %(5)   
Total Investment Return on Market Value(4)      (2.18 )%     10.15 %     12.57 %     4.80 %(5)   

 

See notes to financial statements

60



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Pennsylvania Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data† ††   
Net assets applicable to common shares, end of period (000's omitted)   $ 44,434     $ 43,920     $ 42,352     $ 42,822    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(6)     1.23 %(7)     1.16 %     1.12 %     1.03 %(7)  
Net expenses after custodian fee reduction(6)     1.20 %(7)     1.15 %     1.11 %     0.97 %(7)  
Net investment income(6)     6.65 %(7)     6.91 %     7.37 %     6.64 %(7)  
Portfolio Turnover     15 %     21 %     17 %     34 %  

 

  The operating expenses of the Fund may reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, 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)     1.46 %(7)     1.40 %     1.36 %     1.28 %(7)  
Expenses after custodian fee reduction(6)     1.43 %(7)     1.39 %     1.35 %     1.22 %(7)  
Net investment income(6)     6.42 %(7)     6.67 %     7.13 %     6.39 %(7)  
Net investment income per share   $ 0.479     $ 0.984     $ 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     0.77 %(7)     0.73 %     0.69 %     0.68 %(7)  
Net expenses after custodian fee reduction     0.75 %(7)     0.72 %     0.69 %     0.64 %(7)  
Net investment income     4.18 %(7)     4.32 %     4.58 %     4.37 %(7)  

 

  The operating expenses of the Fund may reflect a reduction of the investment adviser fee and, during the year ended September 30, 2003, a reimbursement of expenses by the Adviser. Had such actions not been taken, the ratios would have been as follows:

Ratios (As a percentage of average total net assets):  
Expenses     0.92 %(7)     0.88 %     0.84 %     0.84 %(7)  
Expenses after custodian fee reduction     0.90 %(7)     0.87 %     0.84 %     0.80 %(7)  
Net investment income     4.03 %(7)     4.17 %     4.43 %     4.20 %(7)  
Senior Securities:  
Total preferred shares outstanding     1,040       1,040       1,040       1,040    
Asset coverage per preferred share(8)   $ 67,727     $ 67,232     $ 65,723     $ 66,178    
Involuntary liquidation preference per preferred share(8)   $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(9)   $ 25,000     $ 25,000     $ 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 March 31, 2006

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1  Significant Accounting Policies

Eaton Vance Insured Municipal Bond Fund II (Insured Municipal Fund II), Eaton Vance Insured California Municipal Bond Fund II (Insured California Fund II), Eaton Vance Insured Florida Municipal Bond Fund (Insured Florida Fund), Eaton Vance Insured Massachusetts Municipal Bond Fund (Insured Massachusetts Fund), Eaton Vance Insured Michigan Municipal Bond Fund (Insured Michigan Fund), Eaton Vance Insured New Jersey Municipal Bond Fund (Insured New Jersey Fund), Eaton Vance Insured New York Municipal Bond Fund II (Insured New York Fund II), Eaton Vance Insured Ohio Municipal Bond Fund (Insured Ohio Fund), and Eaton Vance Insured Pennsylvania Municipal Bond Fund (Insured Pennsylvania Fund) (individually referred to as the Fund or collectively the Funds) are registered under the Investment Company Act of 1940, as amended, as non-diversified, closed-end management investment companies. Each of the Funds was organized under the laws of the Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated October 3, 2002. Each Fund's investment objective is to achieve current income exempt from regular federal income tax, including alternative minimum tax, and taxes in its specified state. Each Fund seeks to achieve its objective by investing primarily in high grade municipal obligations that are insured as to the timely payment of principal and interest.

The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America.

A  Investment Valuation — Municipal bonds and taxable obligations, if any, are normally valued on the basis of valuations furnished by a pricing service. Financial futures contracts and options on financial futures contracts listed on the commodity exchanges are valued at closing settlement prices. Over-the-counter options on financial futures contracts are normally valued at the mean between the latest bid and asked prices. Interest rate swaps are normally valued on the basis of valuations furnished by a pricing service. Short-term obligations, maturing in sixty days or less, are valued at amortized cost, which approximates value. Investments for which valuations or market quotations are unavailable, and investments for which the price of the security is not believed to represent its fair market value, are valued at fair value using methods determined in good faith by or at the direction of the Trustees.

B  Income — Interest income is determined on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.

C  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, 2005, the Funds, for federal income tax purposes, had capital loss carryovers 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 Municipal Fund II   $ 1,552,113     September 30, 2013  
Insured California Fund II     1,503,181     September 30, 2013  
Insured Florida Fund     1,201,589     September 30, 2013  
Insured Massachusetts Fund     934,910     September 30, 2013  
Insured Michigan Fund     113,378     September 30, 2012  
      754,279     September 30, 2013  
Insured New Jersey Fund     1,078,916     September 30, 2013  
Insured New York Fund II     106,272     September 30, 2013  
Insured Ohio Fund     37,328     September 30, 2012  
      1,087,315     September 30, 2013  
Insured Pennsylvania Fund     1,210,799     September 30, 2013  

 

Additionally, at September 30, 2005, Insured Municipal Fund II, Insured Massachusetts Fund, Insured Michigan Fund and Insured Ohio Fund had net capital losses of $585,190, $85,301, $185,697, and $423,373 respectively, attributable to security transactions incurred after October 31, 2004. These are treated as arising on the first day of each Fund's taxable year ending September 30, 2006.

In addition, each Fund intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in municipal obligations, which are exempt from regular federal income taxes when received by each Fund, as exempt-interest dividends.

D  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

62



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

preferred shares were recorded as a reduction of capital paid in excess of par applicable to common shares.

E  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.

F  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.

G  When-Issued and Delayed Delivery Transactions — The Funds may engage in when-issued and delayed delivery transactions. The Funds record when-issued securities on trade date and maintain security positions such that sufficient liquid assets will be available to make payments for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked-to-market daily and begin earning interest on settlement date.

H  Legal Fees — Legal fees and other related expenses incurred as part of negotiations of the terms and requirements of capital infusions, or that are expected to result in the restructuring of or a plan of reorganization for an investment are recorded as realized losses. Ongoing expenditures to protect or enhance an investment are treated as operating expenses.

I  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.

J  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.

K  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 balance 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 Statements of Operations.

L  Other — Investment transactions are accounted for on a trade date basis. Realized gains and losses are computed based on the specific identification of the securities sold.

M  Interim Financial Statements — The interim financial statements relating to March 31, 2006 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Funds' management reflects all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.

2  Auction Preferred Shares (APS)

Each Fund issued Auction Preferred Shares on January 15, 2003 in a public offering. The underwriting discounts and other offering costs were recorded as a reduction of capital of the common shares of each Fund. Dividends on the APS, which accrue daily, are cumulative at a rate which was established at the offering of each Fund's APS and generally have been reset every seven days thereafter by an auction,

63



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

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 6, 2006, the Series B shares of the Insured Municipal Fund II elected a weekly reset dividend period. Series A and Series B are identical in all respects except for the dates of reset for the dividend rates. Auction Preferred Shares issued and outstanding as of March 31, 2006 and dividend rate ranges for the six months ended March 31, 2006 are as indicated below:

Fund   Preferred Shares
Issued and Outstanding
  Dividends Rate
Ranges
 
Insured Municipal II Series A     1,750       2.20 % – 3.35%  
Insured Municipal II Series B     1,750       2.198 % – 3.10%  
Insured California Fund II     1,350       1.586 % – 3.00%  
Insured Florida Fund     900       1.90 % – 3.30%  
Insured Massachusetts Fund     620       1.90 % – 3.20%  
Insured Michigan Fund     540       1.81 % – 3.20%  
Insured New Jersey Fund     900       2.05 % – 3.20%  
Insured New York Fund II     900       2.25 % – 4.40%  
Insured Ohio Fund     875       2.20 % – 3.20%  
Insured Pennsylvania Fund     1,040       1.00 % – 3.30%  

 

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. The applicable dividend rates for Auction Preferred Shares on March 31, 2006 are listed below. For the six months ended March 31, 2006, the amount of dividends each Fund paid to Auction Preferred shareholders and average APS dividend rates for such period were as follows:

Fund  




APS
Dividend Rates
as of
March 31,
2006
  Dividends
Paid to
Preferred
Shareholders
from net investment
income and net
realized gain for the
six months ended
March 31,
2006
 

Average
APS
Dividend
Rates for the
six months
ended
March 31,
2006
 
Insured Municipal Fund II
Series A
    3.15 %   $ 602,663       2.76 %  
Insured Municipal Fund II
Series B
    2.95 %   $ 558,600       2.56 %  
Insured California Fund II     3.00 %   $ 423,131       2.51 %  
Insured Florida Fund     3.00 %   $ 305,229       2.72 %  
Insured Massachusetts Fund     3.05 %   $ 207,284       2.71 %  
Insured Michigan Fund     2.90 %   $ 177,995       2.67 %  
Insured New Jersey Fund     2.43 %   $ 294,558       2.63 %  
Insured New York Fund II     2.90 %   $ 311,533       2.78 %  
Insured Ohio Fund     2.85 %   $ 299,885       2.75 %  
Insured Pennsylvania Fund     2.90 %   $ 340,307       2.64 %  

 

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.

64



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

4  Investment Adviser Fee and Other Transactions with Affiliates  

The investment adviser fee, computed at an annual rate of 0.55% of each Fund's average weekly gross assets, was earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Fund. Except for Trustees of each Fund who are not members of EVM's organization, officers and Trustees receive remuneration for their services to each Fund out of such investment adviser fee. For the six months ended March 31, 2006, the fee was equivalent to 0.55% (annualized) of each Fund's average weekly gross assets and amounted to $656,972, $249,293, $166,123, $114,964, $98,982, $168,552, $168,444, $162,078 and $192,034 for Insured Municipal Fund II, Insured California Fund II, Insured Florida Fund, Insured Massachusetts Fund, Insured Michigan Fund, Insured New Jersey Fund, Insured New York Fund II, Insured Ohio Fund and Insured Pennsylvania Fund, respectively. EVM also serves as the administrator of the Funds, but currently receives no compensation.

In addition, EVM has contractually agreed to reimburse the Fund for fees and other expenses in the amount of 0.15% of average weekly total assets of each Fund during the first five full years of each Fund's operations, 0.10% of average weekly total assets of each Fund in year six, and 0.05% in year seven. For the six months ended March 31, 2006, EVM contractually waived $179,174, $67,989, $45,307, $31,352, $26,995, $45,969, $45,940, $44,204 and $52,373 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.

Certain officers and one Trustee of each Fund are officers of the above organization.

5  Investments  

Purchases and sales of investments, other than U.S. Government securities and short-term obligations, for the six months ended March 31, 2006 were as follows:

Insured Municipal Fund II  
Purchases   $ 24,637,876    
Sales     25,730,679    
Insured California Fund II  
Purchases   $ 8,290,970    
Sales     7,481,933    

 

Insured Florida Fund  
Purchases   $ 6,340,425    
Sales     4,998,191    
Insured Massachusetts Fund  
Purchases   $ 2,216,075    
Sales     1,555,165    
Insured Michigan Fund  
Purchases   $ 0    
Sales     0    
Insured New Jersey Fund  
Purchases   $ 8,496,228    
Sales     7,633,342    
Insured New York Fund II  
Purchases   $ 8,471,801    
Sales     10,073,458    
Insured Ohio Fund  
Purchases   $ 7,230,133    
Sales     6,542,416    
Insured Pennsylvania Fund  
Purchases   $ 10,718,392    
Sales     10,209,398    

 

6  Federal Income Tax Basis of Unrealized Appreciation (Depreciation)

The cost and unrealized appreciation (depreciation) in value of the investments owned by each Fund at March 31, 2006, as computed for Federal income tax purposes, were as follows:

Insured Municipal Fund II  
Aggregate Cost   $ 225,660,126    
Gross unrealized appreciation   $ 12,330,537    
Gross unrealized depreciation     (695,456 )  
Net unrealized appreciation   $ 11,635,081    

 

65



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

Insured California Fund II  
Aggregate Cost   $ 86,837,496    
Gross unrealized appreciation   $ 3,365,891    
Gross unrealized depreciation     (125,798 )  
Net unrealized appreciation   $ 3,240,093    
Insured Florida Fund  
Aggregate Cost   $ 58,538,414    
Gross unrealized appreciation   $ 2,286,000    
Gross unrealized depreciation     (45,357 )  
Net unrealized appreciation   $ 2,240,643    
Insured Massachusetts Fund  
Aggregate Cost   $ 39,989,897    
Gross unrealized appreciation   $ 2,156,703    
Gross unrealized depreciation     (102,846 )  
Net unrealized appreciation   $ 2,053,857    
Insured Michigan Fund  
Aggregate Cost   $ 33,505,471    
Gross unrealized appreciation   $ 1,988,274    
Gross unrealized depreciation     (3,558 )  
Net unrealized appreciation   $ 1,984,716    
Insured New Jersey Fund  
Aggregate Cost   $ 58,363,847    
Gross unrealized appreciation   $ 2,921,896    
Gross unrealized depreciation     (118,010 )  
Net unrealized appreciation   $ 2,803,886    
Insured New York Fund II  
Aggregate Cost   $ 58,709,448    
Gross unrealized appreciation   $ 2,287,730    
Gross unrealized depreciation     (144,711 )  
Net unrealized appreciation   $ 2,143,019    

 

Insured Ohio Fund  
Aggregate Cost   $ 55,825,249    
Gross unrealized appreciation   $ 2,690,590    
Gross unrealized depreciation     (62,735 )  
Net unrealized appreciation   $ 2,627,855    
Insured Pennsylvania Fund  
Aggregate Cost   $ 66,741,281    
Gross unrealized appreciation   $ 2,861,582    
Gross unrealized depreciation     (158,710 )  
Net unrealized appreciation   $ 2,702,872    

 

7  Shares of Beneficial Interest

Each Declaration of Trust permits the Trustees 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  
    Six Months Ended
March 31, 2006
(Unaudited)
  Year Ended
September 30, 2005
 
Shares issued pursuant to
the Fund's dividend reinvestment plan
    4,301       4,972    
Net increase     4,301       4,972    
    Insured California Fund II  
    Six Months Ended
March 31, 2006
(Unaudited)
  Year Ended
September 30, 2005
 
Shares issued pursuant to
the Fund's dividend reinvestment plan
          5,859    
Net increase           5,859    
    Insured Florida Fund  
    Six Months Ended
March 31, 2006
(Unaudited)
  Year Ended
September 30, 2005
 
Shares issued pursuant to
the Fund's dividend reinvestment plan
    1,642       10,376    
Net increase     1,642       10,376    

 

66



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

    Insured Massachusetts Fund  
    Six Months Ended
March 31, 2006
(Unaudited)
  Year Ended
September 30, 2005
 
Shares issued pursuant to
the Fund's dividend reinvestment plan
    1,395       3,549    
Net increase     1,395       3,549    
    Insured Michigan Fund  
    Six Months Ended
March 31, 2006
(Unaudited)
  Year Ended
September 30, 2005
 
Shares issued pursuant to
the Fund's dividend reinvestment plan
    620       2,181    
Net increase     620       2,181    
    Insured New Jersey Fund  
    Six Months Ended
March 31, 2006
(Unaudited)
  Year Ended
September 30, 2005
 
Shares issued pursuant to
the Fund's dividend reinvestment plan
    1,653       3,289    
Net increase     1,653       3,289    
    Insured New York Fund II  
    Six Months Ended
March 31, 2006
(Unaudited)
  Year Ended
September 30, 2005
 
Shares issued pursuant to
the Fund's dividend reinvestment plan
          1,022    
Net increase           1,022    
    Insured Ohio Fund  
    Six Months Ended
March 31, 2006
(Unaudited)
  Year Ended
September 30, 2005
 
Shares issued pursuant to
the Fund's dividend reinvestment plan
          3,501    
Net increase           3,501    
    Insured Pennsylvania Fund  
    Six Months Ended
March 31, 2006
(Unaudited)
  Year Ended
September 30, 2005
 
Shares issued pursuant to
the Fund's dividend reinvestment plan
    975       2,445    
Net increase     975       2,445    

 

8  Financial Instruments

The Funds regularly trade in financial instruments with off-balance sheet risk in the normal course of their 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 a Fund has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.

A summary of obligations under these financial instruments at March 31, 2006 is as follows:

Futures Contracts  

 



Fund
 
Expiration
Date
 

Contracts
 

Position
 
Aggregate
Cost
 

Value
  Net
Unrealized
Appreciation
 
Insured
Municipal II
  06/06   600
U.S. Treasury Bond
  Short   $ (67,656,666 )   $ (65,493,750 )   $ 2,162,916    
Insured
California II
  06/06   200
U.S. Treasury Bond
  Short   $ (22,552,222 )   $ (21,831,250 )   $ 720,972    
Insured
Florida
  06/06   117
U.S. Treasury Bond
  Short   $ (13,204,049 )   $ (12,771,281 )   $ 432,768    
Insured
Massachusetts
  06/06   100
U.S. Treasury Bond
  Short   $ (11,285,512 )   $ (10,915,625 )   $ 369,887    
Insured
Michigan
  06/06   59
U.S. Treasury Bond
  Short   $ (6,658,453 )   $ (6,440,219 )   $ 218,234    
Insured
New Jersey
  06/06   150
U.S. Treasury Bond
  Short   $ (16,928,268 )   $ (16,373,437 )   $ 554,831    
Insured
New York II
  06/06   134
U.S. Treasury Bond
  Short   $ (15,143,525 )   $ (14,626,938 )   $ 516,587    
Insured
Ohio
  06/06   173
U.S. Treasury Bond
  Short   $ (19,550,968 )   $ (18,884,031 )   $ 666,937    
Insured
Pennsylvania
  06/06   225
U.S. Treasury Bond
  Short   $ (25,315,059 )   $ (24,560,156 )   $ 754,903    

 

At March 31, 2006, the Funds had sufficient cash and/or securities to cover margin requirements on open future contracts.

67



Eaton Vance Insured Municipal Bond Funds as of March 31, 2006

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

9  Overdraft Advances

Pursuant to the custodian agreement between the Funds and IBT, IBT 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 IBT at the current rate of interest charged by IBT for secured loans (currently, a rate above the Federal Funds rate). This obligation is payable on demand to IBT. IBT has a lien on the Fund's assets to the extent of any overdraft. At March 31, 2006, the Insured Massachusetts Fund had a payment due to IBT pursuant to the foregoing arrangement of $491,594.

68




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.

69



Eaton Vance Insured Municipal Bond Funds

APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN

This form is for shareholders who hold their common shares in their own names. If your common shares are held in the name of a brokerage firm, bank, or other nominee, you should contact your nominee to see if it will participate in the Plan on your behalf. If you wish to participate in the Plan, but your brokerage firm, bank, or nominee is unable to participate on your behalf, you should request that your common shares be re-registered in your own name which will enable your participation in the Plan.

The following authorization and appointment is given with the understanding that I may terminate it at any time by terminating my participation in the Plan as provided in the terms and conditions of the Plan.

  Please print exact name on account

  Shareholder signature  Date

  Shareholder signature  Date

  Please sign exactly as your common shares are registered. All persons whose names appear on the share certificate must sign.

YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.

This authorization form, when signed, should be mailed to the following address:

  Eaton Vance Insured Municipal Bond Funds
c/o PFPC Inc.
P.O. Box 43027
Providence, RI 02940-3027
800-331-1710

Number of Employees

Each Fund is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a closed-end, nondiversified, management investment company and has no employees.

Number of Shareholders

As of March 31, 2006, our records indicate that there are 34, 11, 4, 7, 11, 11, 20, 22 and 53 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, 1,200, 1,500 and 1,900 shareholders owning the Fund shares in street name, such as through brokers, banks, and financial intermediaries for Insured Municipal Fund II, Insured California Fund II, Insured Florida Fund, Insured Massachusetts Fund, Insured Michigan Fund, Insured New Jersey Fund, Insured New York Fund II, Insured Ohio Fund and Insured Pennsylvania Fund, respectively.

If you are a street name shareholder and wish to receive Fund reports directly, which contain important information about a Fund, please write or call:

  Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
1-800-225-6265

American Stock Exchange symbols

Insured Municipal Fund II   EIV   Insured New Jersey Fund   EMJ  
Insured California Fund II   EIA   Insured New York Fund II   NYH  
Insured Florida Fund   EIF   Insured Ohio Fund   EIO  
Insured Massachusetts Fund   MAB   Insured Pennsylvania Fund   EIP  
Insured Michigan Fund   MIW      

 

70



Eaton Vance Insured Municipal Bond Funds

BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS

Overview of the Contract Review Process

The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund's board of trustees, including by a vote of a majority of the trustees who are not "interested persons" of the fund ("Independent Trustees") cast in person at a meeting called for the purpose of considering such approval.

At a meeting of the Boards of Trustees (each a "Board") of the Eaton Vance group of mutual funds (the "Eaton Vance Funds") held on March 27, 2006, the Board, including a majority of the Independent Trustees, voted to approve continuation of existing advisory and sub-advisory agreements for the Eaton Vance Funds for an additional one-year period. In voting its approval, the Board relied upon the affirmative recommendation of the Special Committee of the Board, which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Special Committee reviewed information furnished for a series of meetings of the Special Committee held in February and March 2006. Such information included, among other things, the following:

Information about Fees, Performance and Expenses

•  An independent report comparing the advisory and related fees paid by each fund with fees paid by comparable funds;

•  An independent report comparing each fund's total expense ratio and its components to comparable funds;

•  An independent report comparing the investment performance of each fund to the investment performance of comparable funds over various time periods;

•  Data regarding investment performance in comparison to relevant peer groups of funds and appropriate indices;

•  Comparative information concerning fees charged by each adviser for managing other mutual funds and institutional accounts using investment strategies and techniques similar to those used in managing the fund;

•  Profitability analyses for each adviser with respect to each fund managed by it;

Information about Portfolio Management

•  Descriptions of the investment management services provided to each fund, including the investment strategies and processes employed;

•  Information concerning the allocation of brokerage and the benefits received by each adviser as a result of brokerage allocation, including information concerning the acquisition of research through "soft dollar" benefits received in connection with the funds' brokerage, and the implementation of a soft dollar reimbursement program established with respect to the funds;

•  Data relating to portfolio turnover rates of each fund;

•  The procedures and processes used to determine the fair value of fund assets and actions taken to monitor and test the effectiveness of such procedures and processes;

Information about the Adviser

•  Reports detailing the financial results and condition of each adviser;

•  Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts;

•  Copies of the Codes of Ethics of each adviser and its affiliates, together with information relating to compliance with and the administration of such codes;

•  Information concerning the resources devoted to compliance efforts undertaken by each adviser and its affiliates on behalf of the funds (including descriptions of various compliance programs) and their record of compliance with investment policies and restrictions, including policies with respect to market-timing, late trading and selective portfolio disclosure, and with policies on personal securities transactions;

•  Descriptions of the business continuity and disaster recovery plans of each adviser and its affiliates;

Other Relevant Information

•  Information concerning the nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance Management and its affiliates;

•  Information concerning management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds' administrator; and

•  The terms of each advisory agreement.

71



Eaton Vance Insured Municipal Bond Funds

BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS CONT'D

In addition to the information identified above, the Special Committee considered information provided from time to time by each adviser throughout the year at meetings of the Board and its committees. Over the course of the twelve month period ended March 31, 2006, the Board met nine times and the Special Committee, the Audit Committee and the Governance Committee, each of which is a Committee comprised solely of Independent Trustees, met eight, twelve and five times, respectively. At such meetings, the Trustees received, among other things, presentations by the portfolio managers and other investment professionals of each adviser relating to the investment performance of each fund and the investment strategies used in pursuing the fund's investment objective.

For funds that invest through one or more underlying portfolios, the Board considered similar information about the portfolio(s) when considering the approval of advisory agreements. In addition, in cases where the fund's investment adviser has engaged a sub-adviser, the Board considered similar information about the sub-adviser when considering the approval of any sub-advisory agreement.

The Special Committee was assisted throughout the contract review process by Goodwin Procter LLP, legal counsel for the Independent Trustees. The members of the Special Committee relied upon the advice of such counsel and their own business judgment in determining the material factors to be considered in evaluating each advisory and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each advisory and sub-advisory agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Special Committee may have placed varying emphasis on particular factors in reaching conclusions with respect to each advisory and sub-advisory agreement.

Results of the Process

Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Special Committee concluded that the continuance of the investment advisory agreements of the following funds:

•  Insured Municipal Bond Fund II

•  Insured California Municipal Bond Fund II

•  Insured Florida Municipal Bond Fund

•  Insured Massachusetts Municipal Bond Fund

•  Insured Michigan Municipal Bond Fund

•  Insured New Jersey Municipal Bond Fund

•  Insured New York Municipal Bond Fund II

•  Insured Ohio Municipal Bond Fund

•  Insured Pennsylvania Municipal Bond Fund

(the "Funds"), each with Eaton Vance Management (the "Adviser"), including their fee structures, is in the interests of shareholders and, therefore, the Special Committee recommended to the Board approval of each agreement. The Board accepted the recommendation of the Special Committee as well as the factors considered and conclusions reached by the Special Committee with respect to each agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the advisory agreement for each Fund.

Nature, Extent and Quality of Services

In considering whether to approve the investment advisory agreements of the Funds, the Board evaluated the nature, extent and quality of services provided to the Funds by the Adviser.

The Board considered the Adviser's management capabilities and investment process with respect to the types of investments held by each Fund, including the education, experience and number of its investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Funds, and recent changes in the identity of such personnel. In particular, the Board evaluated, where relevant, the abilities and experience of such investment personnel in analyzing factors such as credit risk, tax efficiency, and special considerations relevant to investing in municipal bonds. Specifically, the Board considered the Adviser's 30-person municipal bond team, which includes six portfolio managers and nine credit specialists who provide services to the Funds. The Board also took into account the resources dedicated to portfolio management and other services, including the compensation paid to recruit and retain investment personnel, and the time and attention devoted to each Fund in the complex by senior management.

The Board reviewed the compliance programs of the Adviser and relevant affiliates thereof. Among other matters, the Board considered compliance and reporting matters relating to personal trading by investment personnel, selective disclosure of portfolio holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also evaluated the responses of the Adviser and its affiliates to requests from regulatory authorities such as the Securities and Exchange Commission and the National Association of Securities Dealers.

72



Eaton Vance Insured Municipal Bond Funds

BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS CONT'D

The Board also considered shareholder and other administrative services provided or managed by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large family of funds.

After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by the Adviser, taken as a whole, are appropriate and consistent with the terms of the respective investment advisory agreements.

Fund Performance

The Board compared each Fund's investment performance to a relevant universe of similarly managed funds identified by an independent data provider and appropriate benchmark indices. The Board reviewed comparative performance data for the one-year period ended September 30, 2005 for each Fund. On the basis of the foregoing and other relevant information, the Board concluded that the performance of each Fund is satisfactory.

Management Fees and Expenses

The Board reviewed contractual investment advisory fee rates payable by each Fund (referred to as "management fees").

As part of its review, the Board considered each Fund's management fee and total expense ratio for the one-year period ended September 30, 2005, as compared to a group of similarly managed funds selected by an independent data provider. The Board considered the fact that the Adviser had waived fees and/or paid expenses for each of the Funds.

After reviewing the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded with respect to each Fund that the management fee charged to the Fund for advisory and related services and the total expense ratio of the Fund are reasonable.

Profitability

The Board reviewed the level of profits realized by the Adviser and, if applicable, its affiliates in providing investment advisory and administrative services to each Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to revenue sharing or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect benefits received by the Adviser and its affiliates in connection with their relationship with the Funds.

The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates are reasonable.

Economies of Scale

In reviewing management fees and profitability, the Board also considered the extent to which the Adviser and its affiliates, on the one hand, and each Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from the economies of scale with respect to the management of any specific fund or group of funds. The Board also considered the fact that none of the Funds is continuously offered and concluded that, in light of the level of the adviser's profits with respect to each Fund, the implementation of breakpoints in the advisory fee schedule is not appropriate. Based upon the foregoing, the Board concluded that the benefits from economies of scale are currently being shared equitably by the Adviser and its affiliates and each Fund.

73




Eaton Vance Insured Municipal Bond Funds

INVESTMENT MANAGEMENT

Eaton Vance Insured Municipal Bond Funds(1)

Officers
Cynthia J. Clemson
President of EIA, EIF, MIW, NYH,
EIO and EIP;
Vice President of EIV,
MAB and EMJ and Portfolio Manager of EIA
Robert B. MacIntosh
President of EIV, MAB and EMJ;
Vice President of EIA, EIF, MIW,
NYH, EIO and EIP and Portfolio
Manager of MAB and EMJ
James B. Hawkes
Vice President and Trustee
William H. Ahern
Vice President and Portfolio Manager of EIV, MIW and EIO
Craig R. Brandon
Vice President and Portfolio Manager of EIF and NYH
Thomas M. Metzold
Vice President and Portfolio Manager of EIP
Barbara E. Campbell
Treasurer
Alan R. Dynner
Secretary
Paul M. O'Neil
Chief Compliance Officer
  Trustees
Samuel L. Hayes, III
Chairman
Benjamin C. Esty
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
Ralph F. Verni
 

 

(1) Defined by American Stock Exchange symbol, located on page 70.

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Investment Adviser and Administrator of Eaton Vance Insured Municipal Bond Funds
Eaton Vance Management

The Eaton Vance Building
255 State Street
Boston, MA 02109

Custodian
Investors Bank & Trust Company

200 Clarendon Street
Boston, MA 02116

Transfer Agent and Dividend Disbursing Agent
PFPC Inc.

Attn: Eaton Vance Insured Municipal Bond Funds
P.O. Box 43027
Providence, RI 02940-3027
(800) 331-1710

Eaton Vance Insured Municipal Bond Funds
The Eaton Vance Building
255 State Street
Boston, MA 02109



1557-5/06  9IMBIISRC




 

Item 2. Code of Ethics

 

The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122.

 

Item 3. Audit Committee Financial Expert

 

The registrant’s Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the Vice Chairman of Commercial Industrial Finance Corp (specialty finance company). Previously, he served as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm) and as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (“UAM”) (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds).

 

Item 4. Principal Accountant Fees and Services

 

Not required in this filing

 

Item 5. Audit Committee of Listed registrants

 

Not required in this filing.

 

Item 6. Schedule of Investments

 

Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.

 



 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

 

The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the “Policies”) which are described below. The Trustees will review the Fund’s proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board’s Special Committee 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, on matters regarding the state of organization of the company and routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders. On all other matters, 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 Policies include 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 members of senior management of the investment adviser identified in the Policies. Such members of senior management will determine if a conflict exists. If a conflict does exist, the investment adviser will seek instruction on how to vote from the Special Committee.

 

Information on how the Fund voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 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. Portfolio Managers of Closed-End Management Investment Companies

 

Not required in this filing.

 



 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

No such purchases this period.

 

Item 10. Submission of Matters to a Vote of Security Holders.

 

Effective February 7, 2005, the Governance Committee of the Board of Trustees revised the procedures by which a Fund’s shareholders may recommend nominees to the registrant’s Board of Trustees to add the following (highlighted):

 

 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 (i)sufficient background information concerning the candidate, including evidence the candidate is willing to serve as an Independent Trustee if selected for the position; and (ii) 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 in writing to the attention of the Governance Committee, c/o the Secretary of the Fund. The Secretary shall retain copies of any shareholder recommendations which meet the foregoing requirements for a period of not more than 12 months following receipt. The Secretary shall have no obligation to acknowledge receipt of any shareholder recommendations.

 

Item 11. 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. 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/ Cynthia J. Clemson

 

 

Cynthia J. Clemson

 

President

 

 

 

 

Date:

May 18, 2006

 

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/ Barbara E. Campbell

 

 

Barbara E. Campbell

 

Treasurer

 

 

 

 

Date:

May 18, 2006

 

 

By:

/s/ Cynthia J. Clemson

 

 

Cynthia J. Clemson

 

President

 

 

 

 

Date:

May 18, 2006