UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-21227

 

Eaton Vance Insured Pennsylvania Municipal Bond Fund

(Exact name of registrant as specified in charter)

 

The Eaton Vance Building, 255 State Street, Boston, Massachusetts

 

02109

(Address of principal executive offices)

 

(Zip code)

 

Maureen A. Gemma

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, 2008

 

 


 


 

Item 1. Reports to Stockholders

 



Semiannual Report March 31, 2008

EATON VANCE
INSURED
MUNICIPAL
BOND
FUNDS

CLOSED-END FUNDS:

Insured Municipal II

Insured California II

Insured Florida Plus

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, 2008

 

TABLE OF CONTENTS

 

Investment Update

2-3

 

 

Performance Information and Portfolio Composition

 

 

 

Insured Municipal Bond Fund II

4

Insured California Municipal Bond Fund II

5

Insured Florida Plus Municipal Bond Fund

6

Insured Massachusetts Municipal Bond Fund

7

Insured Michigan Municipal Bond Fund

8

Insured New Jersey Municipal Bond Fund

9

Insured New York Municipal Bond Fund II

10

Insured Ohio Municipal Bond Fund

11

Insured Pennsylvania Municipal Bond Fund

12

 

 

Financial Statements

13

 

 

Dividend Reinvestment Plan

76

 

 

Board of Trustees’ Annual Approval of the Investment Advisory Agreements

78

 

 

Investment Management

81

 

1



 

Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

 

INVESTMENT UPDATE

 

The investment objective of each Eaton Vance Insured Municipal Bond Fund (the “Funds”), closed-end funds traded on the American Stock Exchange, is to provide current income exempt from regular federal income tax, federal alternative minimum tax and, in state specific funds, state personal income taxes, as applicable. 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

 

Economic growth in the first quarter of 2008 measured 0.6%, according to preliminary Commerce Department data reported in April 2008, following the 0.6% growth rate achieved in the fourth quarter 2007. The housing sector continued to struggle in the first quarter due to market concerns related to subprime mortgages. Although the weaker dollar was having a beneficial effect on export-related industries, tourism, and U.S.-based multinational companies, consumers started to curtail spending, as food and energy costs continued to climb, according to Commerce Department data, and consumer confidence levels fell to 25-year lows, according to University of Michigan data.

 

On March 16, 2008, the Federal Reserve (the “Fed”) took extraordinary actions to support orderly market functioning after it learned that Bear Stearns faced a liquidity crisis which could have triggered a wider market crisis. In addition to approving a financing arrangement to support JPMorgan Chase’s acquisition of Bear Stearns, the Fed created a new lending facility that expanded the potential collateral it would accept from member banks and extended the new lending facility to securities firms. The Fed also lowered the Discount Rate, the rate at which it will lend to these firms, to 3.25% from 3.50%. Two days later, on March 18, 2008, at a regularly scheduled meeting of the Federal Open Market Committee, the Fed lowered the Federal Funds Rate by 75 basis points to 2.25% from 3.00% and further lowered the Discount Rate to 2.50%. The Federal Funds Rate has been lowered by a total of 300 basis points (3.00%) since September 18, 2007, from 5.25%, and the Discount Rate has been lowered by a total of 375 basis points (3.75%) since August 17, 2007, from 6.25%. Management believes that all of these actions were aimed at providing market liquidity during this period of extreme uncertainty and tight credit conditions that first surfaced in August 2007.

 

Management Discussion

 

The Funds invest primarily in bonds with stated maturities of 10 years or longer at the time of investment, as longer-maturity bonds historically have provided greater tax-exempt income for investors than shorter-maturity bonds.

 

The Funds underperformed their benchmark, the Lehman Brothers Municipal Bond Index – a broadbased, unmanaged index of municipal bonds – for the six months ended March 31, 2008.(1) Management believes that much of the underperformance can be attributed to the broader-based credit crisis that has shaken the fixed-income markets since August 2007, which led investors to move their capital into the Treasury market, particularly in shorter-maturity bonds. This move was originally driven by uncertainty surrounding financial companies’ exposure to mortgage backed collateralized debt obligations (CDOs). More recently, the municipal bond market has been impacted by the downgrade of major municipal bond insurers due to their exposure to mortgage-related CDO debt. As a result of an active management style that focuses on income and longer call protection, the Funds generally hold longer-duration bonds. Although the municipal bond market stabilized and fund performance improved during March 2008, management believes that investors’ flight – from September 2007 through February 2008 – to shorter-maturity uninsured bonds from longer- maturity insured bonds resulted in the Funds’ relative underperformance for the period.

 

The ratio of yields on current coupon AAA-rated insured bonds to the yield on 30-year Treasury bonds was 116% as of March 31, 2008, with many individual bonds trading higher than 116%.(2) Management believes that this was the result of dislocation in the fixed-income marketplace caused by fears of subprime contagion, insurance companies’ mark-to-market risks and the decentralized nature of the municipal marketplace. Historically, this is a rare occurrence in the municipal bond market and is generally considered a signal that municipal bonds are significantly undervalued compared to Treasuries.

 

With this backdrop, management continues to manage all of its municipal funds with the same relative value approach that it has traditionally employed – maintaining a long-term perspective when markets exhibit extreme short-term volatility. We believe this approach has provided excellent long-term benefits to our investors over time.

 


(1)

It is not possible to invest directly in an Index. 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.

(2)

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.

 

Private insurance does not decrease the risk of loss associated with Fund shares.

 

Past performance is no guarantee of future results.

 

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. Portfolio information provided in the report may not be representative of the Funds’ current or future investments and may change due to active management.

 

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.

 

2



 

As has been widely reported since mid-February 2008, the normal functioning of the auction market in the U.S. for certain types of “auction rate securities” has been disrupted by an imbalance between buy and sell orders. Consistent with patterns in the broader market for auction rate securities, the Funds have, since mid-February, experienced unsuccessful Auction Preferred Share (APS) auctions. In the event of an unsuccessful auction, the affected APS shares remain outstanding, and the dividend rate reverts to the specified maximum payable rate. We believe that the earnings rate on the Funds’ assets continues to exceed the cost of the APS, and that leveraging the Funds remains appropriate. Management continues to closely monitor developments in the APS market and is engaged with other market participants to develop solutions that are in the best interests of both common stock shareholders and APS shareholders to restore liquidity to holders of APS.

 

3



 

Eaton Vance Insured Municipal Bond Fund II as of March 31, 2008

 

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance(1)

 

American Stock Exchange Symbol

 

EIV

 

 

 

 

 

Average Annual Total Return (by share price)

 

 

 

Six Months

 

-9.29

%

One Year

 

-15.99

 

Five Years

 

4.13

 

Life of Fund (11/29/02)

 

4.15

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

-11.17

%

One Year

 

-12.30

 

Five Years

 

4.33

 

Life of Fund (11/29/02)

 

4.94

 

 

Market Yields

 

Market Yield(2)

 

5.88

%

Taxable-Equivalent Market Yield(3)

 

9.05

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.75

%

One Year

 

1.90

 

Five Years

 

3.92

 

Life of Fund (11/30/02)

 

4.31

 

 

Lipper Averages(5)

 

Lipper Insured Municipal Debt Funds (Leveraged) Classification - Average Annual Total Returns (by net asset value)

 

 

 

Six Months

 

-3.64

%

One Year

 

-3.76

 

Five Years

 

3.56

 

Life of Fund (11/30/02)

 

4.24

 

 

Portfolio Manager: William H. Ahern, CFA

 

Rating Distribution*(6)

 

By total investments

 

 


* The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at 3/31/08, is as follows and the average rating is AA+:

 

AAA

 

79.5

%

AA

 

5.4

%

A

 

11.1

%

BBB

 

3.4

%

CCC

 

0.6

%

 

Fund Statistics(7)

 

·

Number of Issues:

 

80

 

·

Average Maturity:

 

26.9 years

 

·

Average Effective Maturity:

 

21.9 years

 

·

Average Call Protection:

 

9.7 years

 

·

Average Dollar Price:

 

$86.71

 

·

Leverage:**

 

40.2%

 

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s net assets applicable to common shares plus Auction Preferred Shares. 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).

 

(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.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per common share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) 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.

(5) The Lipper Averages are the average annual 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 (closed-end) contained 23 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month-end only.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements.

 

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. For performance as of the most recent month-end, please refer to www.eatonvance.com.

 

4



 

Eaton Vance Insured California Municipal Bond Fund II as of March 31, 2008

 

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance(1)

 

American Stock Exchange Symbol

 

EIA

 

 

 

 

 

Average Annual Total Return (by share price)

 

 

 

Six Months

 

-1.04

%

One Year

 

-5.01

 

Five Years

 

5.66

 

Life of Fund (11/29/02)

 

5.09

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

-10.39

%

One Year

 

-10.98

 

Five Years

 

3.70

 

Life of Fund (11/29/02)

 

4.17

 

 

Market Yields

 

Market Yield(2)

 

5.08

%

Taxable-Equivalent Market Yield(3)

 

8.62

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.75

%

One Year

 

1.90

 

Five Years

 

3.92

 

Life of Fund (11/30/02)

 

4.31

 

 

Lipper Averages(5)

 

Lipper California Insured Municipal Debt Funds Classification - Average Annual Total Returns (by net asset value)

 

 

 

Six Months

 

-3.72

%

One Year

 

-3.60

 

Five Years

 

3.80

 

Life of Fund (11/30/02)

 

4.32

 

 

Portfolio Manager: Cynthia J. Clemson

 

Rating Distribution*(6)

 

By total investments

 

 


The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at 3/31/08, is as follows and the average rating is AA+:

 

AAA

 

71.8

%

AA

 

12.9

%

A

 

15.3

%

 

Fund Statistics(7)

 

·

Number of Issues:

 

57

 

·

Average Maturity:

 

24.7 years

 

·

Average Effective Maturity:

 

19.0 years

 

·

Average Call Protection:

 

8.0 years

 

·

Average Dollar Price:

 

$85.36

 

·

Leverage:**

 

40.2%

 

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s net assets applicable to common shares plus Auction Preferred Shares. 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).

 

(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.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per common share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) 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.

(4) 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.

(5) The Lipper Averages are the average annual 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 (closed-end) contained 13 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month-end only.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements.

 

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. For performance as of the most recent month-end, please refer to www.eatonvance.com.

 

5



 

Eaton Vance Insured Florida Plus Municipal Bond Fund as of March 31, 2008

 

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance(1)

 

American Stock Exchange Symbol

 

EIF

 

 

 

 

 

Average Annual Total Return (by share price)

 

 

 

Six Months

 

-10.03

%

One Year

 

-12.72

 

Five Years

 

1.57

 

Life of Fund (11/29/02)

 

2.19

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

-9.25

%

One Year

 

-10.43

 

Five Years

 

3.55

 

Life of Fund (11/29/02)

 

4.05

 

 

Market Yields

 

Market Yield(2)

 

5.34

%

Taxable-Equivalent Market Yield(3)

 

8.22

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.75

%

One Year

 

1.90

 

Five Years

 

3.92

 

Life of Fund (11/30/02)

 

4.31

 

 

Lipper Averages(5)

 

Lipper Florida Municipal Debt Funds Classification - Average Annual Total Returns (by net asset value)

 

 

 

Six Months

 

-2.86

%

One Year

 

-3.08

 

Five Years

 

3.80

 

Life of Fund (11/30/02)

 

4.44

 

 

Portfolio Manager: Craig R. Brandon, CFA

 

Rating Distribution*(6)

 

By total investments

 

 


The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at 3/31/08, is as follows and the average rating is AAA:

 

AAA

 

86.1

%

AA

 

5.6

%

A

 

6.2

%

Non-Rated

 

2.1

 

 

Fund Statistics(7)

 

·

Number of Issues:

 

57

 

·

Average Maturity:

 

24.6 years

 

·

Average Effective Maturity:

 

18.9 years

 

·

Average Call Protection:

 

10.4 years

 

·

Average Dollar Price:

 

$91.42

 

·

Leverage:**

 

40.0%

 

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s net assets applicable to common shares plus Auction Preferred Shares. 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).

 

(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.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per common share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) 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.

(5) The Lipper Averages are the average annual 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 (closed-end) contained 15, 15, 14 and 14 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month-end only.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements.

 

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. For performance as of the most recent month-end, please refer to www.eatonvance.com.

 

6



 

Eaton Vance Insured Massachusetts Municipal Bond Fund as of March 31, 2008

 

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance(1)

 

American Stock Exchange Symbol

 

MAB

 

 

 

 

 

Average Annual Total Return (by share price)

 

 

 

Six Months

 

-0.85

%

One Year

 

-3.63

 

Five Years

 

4.74

 

Life of Fund (11/29/02)

 

5.91

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

-7.61

%

One Year

 

-8.88

 

Five Years

 

4.46

 

Life of Fund (11/29/02)

 

4.88

 

 

Market Yields

 

Market Yield(2)

 

4.66

%

Taxable-Equivalent Market Yield(3)

 

7.57

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.75

%

One Year

 

1.90

 

Five Years

 

3.92

 

Life of Fund (11/30/02)

 

4.31

 

 

Lipper Averages(5)

 

Lipper Other States Municipal Debt Funds Classification - Average Annual Total Returns (by net asset value)

 

 

 

Six Months

 

-2.32

%

One Year

 

-2.64

 

Five Years

 

4.23

 

Life of Fund (11/30/02)

 

4.91

 

 

Portfolio Manager: Robert B. MacIntosh, CFA

 

Rating Distribution*(6)

 

By total investments

 

 


* The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at 3/31/08, is as follows and the average rating is AA+:

 

AAA

 

71.8

%

AA

 

7.7

%

A

 

17.1

%

BBB

 

1.6

%

Non-Rated

 

1.8

%

 

Fund Statistics(7)

 

·

Number of Issues:

 

45

 

·

Average Maturity:

 

26.2 years

 

·

Average Effective Maturity:

 

19.6 years

 

·

Average Call Protection:

 

9.7 years

 

·

Average Dollar Price:

 

$95.92

 

·

Leverage:**

 

39.3%

 

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s net assets applicable to common shares plus Auction Preferred Shares. 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).

 

(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.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per common share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) 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.

(4) 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.

(5) The Lipper Averages are the average annual 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 (closed-end) contained 46 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month-end only.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements.

 

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. For performance as of the most recent month-end, please refer to www.eatonvance.com.

 

7



 

Eaton Vance Insured Michigan Municipal Bond Fund as of March 31, 2008

 

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance(1)

 

American Stock Exchange Symbol

 

MIW

 

 

 

 

 

Average Annual Total Return (by share price)

 

 

 

Six Months

 

-6.47

%

One Year

 

-8.10

 

Five Years

 

2.34

 

Life of Fund (11/29/02)

 

3.48

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

-5.27

%

One Year

 

-5.19

 

Five Years

 

4.82

 

Life of Fund (11/29/02)

 

5.23

 

 

Market Yields

 

Market Yield(2)

 

5.22

%

Taxable-Equivalent Market Yield(3)

 

8.40

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.75

%

One Year

 

1.90

 

Five Years

 

3.92

 

Life of Fund (11/30/02)

 

4.31

 

 

Lipper Averages(5)

 

Lipper Michigan Municipal Debt Funds Classification - Average Annual Total Returns (by net asset value)

 

 

 

Six Months

 

-2.74

%

One Year

 

-2.74

 

Five Years

 

3.96

 

Life of Fund (11/30/02)

 

4.70

 

 

Portfolio Manager: William H. Ahern, CFA

 

Rating Distribution*(6)

 

By total investments

 

 


* The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at 3/31/08, is as follows and the average rating is AA+:

 

AAA

 

68.4

%

AA

 

4.5

%

A

 

26.1

%

BBB

 

1.0

%

 

Fund Statistics(7)

 

·

Number of Issues:

 

36

 

·

Average Maturity:

 

22.8 years

 

·

Average Effective Maturity:

 

11.2 years

 

·

Average Call Protection:

 

6.6 years

 

·

Average Dollar Price:

 

$92.62

 

·

Leverage:**

 

38.9%

 

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s net assets applicable to common shares plus Auction Preferred Shares. 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).

 

(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.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per common share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 37.83% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) 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.

(5) The Lipper Averages are the average annual 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 (closed-end) contained 7 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month-end only.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements.

 

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. For performance as of the most recent month-end, please refer to www.eatonvance.com.

 

8



 

Eaton Vance Insured New Jersey Municipal Bond Fund as of March 31, 2008

 

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance(1)

 

American Stock Exchange Symbol

 

ENJ

 

 

 

 

 

Average Annual Total Return (by share price)

 

 

 

Six Months

 

-1.86

%

One Year

 

-6.19

 

Five Years

 

5.70

 

Life of Fund (11/29/02)

 

5.74

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

-8.44

%

One Year

 

-8.35

 

Five Years

 

4.90

 

Life of Fund (11/29/02)

 

5.54

 

 

Market Yields

 

Market Yield(2)

 

5.04

%

Taxable-Equivalent Market Yield(3)

 

8.52

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.75

%

One Year

 

1.90

 

Five Years

 

3.92

 

Life of Fund (11/30/02)

 

4.31

 

 

Lipper Averages(5)

 

Lipper New Jersey Municipal Debt Funds Classification - Average Annual Total Returns (by net asset value)

 

 

 

Six Months

 

-3.73

%

One Year

 

-4.40

 

Five Years

 

4.54

 

Life of Fund (11/30/02)

 

5.13

 

 

Portfolio Manager: Robert B. MacIntosh, CFA

 

Rating Distribution*(6)

 

By total investments

 

 


* The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statement. Absent such securities, the Fund’s rating distribution at 3/31/08, is as follows and the average rating is AA+:

 

AAA

 

80.3

%

A

 

12.8

%

BBB

 

6.9

%

 

Fund Statistics(7)

 

·

Number of Issues:

 

63

 

·

Average Maturity:

 

24.4 years

 

·

Average Effective Maturity:

 

19.7 years

 

·

Average Call Protection:

 

9.9 years

 

·

Average Dollar Price:

 

$86.41

 

·

Leverage:**

 

38.9%

 

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s net assets applicable to common shares plus Auction 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).

 

(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.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per common share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) 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.

(4) 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.

(5) The Lipper Averages are the average annual 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 (closed-end) contained 13 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month-end only.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements.

 

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. For performance as of the most recent month-end, please refer to www.eatonvance.com.

 

9



 

Eaton Vance Insured New York Municipal Bond Fund II as of March 31, 2008

 

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance(1)

 

American Stock Exchange Symbol

 

NYH

 

 

 

 

 

Average Annual Total Return (by share price)

 

 

 

Six Months

 

-4.68

%

One Year

 

-10.33

 

Five Years

 

5.00

 

Life of Fund (11/29/02)

 

5.20

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

-9.68

%

One Year

 

-9.98

 

Five Years

 

4.73

 

Life of Fund (11/29/02)

 

5.20

 

 

Market Yields

 

Market Yield(2)

 

5.26

%

Taxable-Equivalent Market Yield(3)

 

8.69

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.75

%

One Year

 

1.90

 

Five Years

 

3.92

 

Life of Fund (11/30/02)

 

4.31

 

 

Lipper Averages(5)

 

Lipper New York Insured Municipal Debt Funds Classification - Average Annual Total Returns (by net asset value)

 

 

 

Six Months

 

-2.58

%

One Year

 

-2.27

 

Five Years

 

3.97

 

Life of Fund (11/30/02)

 

4.63

 

 

Portfolio Manager: Craig R. Brandon, CFA

 

Rating Distribution*(6)

 

By total investments

 

 


* The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at 3/31/08, is as follows and the average rating is AAA:

 

AAA

 

86.3

%

AA

 

4.9

%

A

 

7.4

%

BBB

 

1.4

%

 

Fund Statistics(7)

 

·

Number of Issues:

 

48

 

·

Average Maturity:

 

27.6 years

 

·

Average Effective Maturity:

 

20.8 years

 

·

Average Call Protection:

 

9.2 years

 

·

Average Dollar Price:

 

$90.67

 

·

Leverage:**

 

39.9%

 

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s net assets applicable to common shares plus Auction Preferred Shares. 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).

 

(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.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per common share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 39.45% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) 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.

(5) The Lipper Averages are the average annual 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 (closed-end) contained 12 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month-end only.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements.

 

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. For performance as of the most recent month-end, please refer to www.eatonvance.com.

 

10



 

Eaton Vance Insured Ohio Municipal Bond Fund as of March 31, 2008

 

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance(1)

 

American Stock Exchange Symbol

 

EIO

 

 

 

 

 

Average Annual Total Return (by share price)

 

 

 

Six Months

 

-10.06

%

One Year

 

-17.01

 

Five Years

 

0.89

 

Life of Fund (11/29/02)

 

2.15

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

-10.32

%

One Year

 

-11.22

 

Five Years

 

3.37

 

Life of Fund (11/29/02)

 

3.79

 

 

Market Yields

 

Market Yield(2)

 

5.17

%

Taxable-Equivalent Market Yield(3)

 

8.51

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.75

%

One Year

 

1.90

 

Five Years

 

3.92

 

Life of Fund (11/30/02)

 

4.31

 

 

Lipper Averages(5)

 

Lipper Other States Municipal Debt Funds Classification - Average Annual Total Returns (by net asset value)

 

 

 

Six Months

 

-2.32

%

One Year

 

-2.64

 

Five Years

 

4.23

 

Life of Fund (11/30/02)

 

4.91

 

 

Portfolio Manager: William H. Ahern, CFA

 

Rating Distribution*(6)

 

By total investments

 

 


* The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at 3/31/08, is as follows and the average rating is AA+:

 

AAA

 

81.2

%

AA

 

3.6

%

A

 

12.7

%

BBB

 

2.5

%

 

Fund Statistics(7)

 

·

Number of Issues:

 

53

 

·

Average Maturity:

 

23.4 years

 

·

Average Effective Maturity:

 

19.8 years

 

·

Average Call Protection:

 

9.2 years

 

·

Average Dollar Price:

 

$86.53

 

·

Leverage:**

 

39.9%

 

 


**

The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s net assets applicable to common shares plus Auction Preferred Shares. 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).

 

(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.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per common share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) Taxable-equivalent figure assumes a maximum 39.26% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) 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.

(5) The Lipper Averages are the average annual 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 (closed-end) contained 46 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month-end only.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements.

 

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. For performance as of the most recent month-end, please refer to www.eatonvance.com.

 

11



 

Eaton Vance Insured Pennsylvania Municipal Bond Fund as of March 31, 2008

 

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund Performance(1)

 

American Stock Exchange Symbol

 

EIP

 

 

 

 

 

Average Annual Total Return (by share price)

 

 

 

Six Months

 

1.64

%

One Year

 

-2.89

 

Five Years

 

4.19

 

Life of Fund (11/29/02)

 

5.42

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

-5.89

%

One Year

 

-6.06

 

Five Years

 

5.08

 

Life of Fund (11/29/02)

 

5.41

 

 

Market Yields

 

Market Yield(2)

 

4.98

%

Taxable-Equivalent Market Yield(3)

 

7.90

 

 

Index Performance(4)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.75

%

One Year

 

1.90

 

Five Years

 

3.92

 

Life of Fund (11/30/02)

 

4.31

 

 

Lipper Averages(5)

 

Lipper Pennsylvania Municipal Debt Funds Classification - Average Annual Total Returns (by net asset value)

 

 

 

Six Months

 

-4.33

%

One Year

 

-4.81

 

Five Years

 

3.80

 

Life of Fund (11/30/02)

 

4.54

 

 

Portfolio Manager: Adam A. Weigold, CFA

 

Rating Distribution*(6)

 

By total investments

 

 


* The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements. Absent such securities, the Fund’s rating distribution at 3/31/08, is as follows and the average rating is AA+:

 

AAA

 

73.0

%

AA

 

7.8

%

A

 

16.7

%

BBB

 

1.2

%

Non-Rated

 

1.3

%

 

Fund Statistics(7)

 

·

Number of Issues:

 

58

 

·

Average Maturity:

 

23.7 years

 

·

Average Effective Maturity:

 

17.7 years

 

·

Average Call Protection:

 

8.5 years

 

·

Average Dollar Price:

 

$92.89

 

·

Leverage:**

 

39.0%

 

 


**The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s net assets applicable to common shares plus Auction Preferred Shares. 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).

 

(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.

(2) The Fund’s market yield is calculated by dividing the last dividend paid per common share of the semi-annual period by the share price at the end of the semi-annual period and annualizing the result.

(3) 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.

(4) 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

(5) The Lipper Averages are the average annual 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 (closed-end) contained 9 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month-end only.

(6) Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.

(7) Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1H to the Fund’s financial statements.

 

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. For performance as of the most recent month-end, please refer to www.eatonvance.com.

 

12



Eaton Vance Insured Municipal Bond Fund II as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited)


Tax-Exempt Investments — 188.8%
     
Principal Amount
(000's omitted)
 
Security
 
Value
 
Electric Utilities — 1.0%      
$ 1,600     Sabine River Authority, TX, (TXU Energy Co. LLC),
5.20%, 5/1/28
  $ 1,243,776    
          $ 1,243,776    
General Obligations — 4.5%      
$ 2,215     California, 5.50%, 11/1/33   $ 2,262,113    
  3,610     New York City, NY, 5.25%, 1/15/33     3,623,321    
          $ 5,885,434    
Hospital — 5.6%      
$ 400     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.00%, 2/15/25
  $ 369,064    
  900     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.00%, 2/15/35
    769,932    
  750     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.25%, 2/15/27
    698,932    
  380     Cuyahoga County, OH, (Cleveland Clinic Health System),
5.50%, 1/1/29
    384,275    
  500     Hawaii Department of Budget and Finance,
(Hawaii Pacific Health), 5.60%, 7/1/33
    486,780    
  1,315     Highlands County, FL, Health Facilities Authority,
(Adventist Health System), 5.25%, 11/15/36
    1,247,843    
  2,255     Knox County, TN, Health, Educational & Housing
Facilities Board, (Covenant Health), 0.00%, 1/1/38
    343,121    
  5,000     Knox County, TN, Health, Educational & Housing
Facilities Board, (Covenant Health), 0.00%, 1/1/39
    714,150    
  1,000     Lehigh County, PA, General Purpose Authority,
(Lehigh Valley Health Network), 5.25%, 7/1/32
    978,440    
  1,440     Michigan Hospital Finance Authority, (Henry Ford Health
System), 5.00%, 11/15/38
    1,316,995    
          $ 7,309,532    
Industrial Development Revenue — 9.5%      
$ 7,875     Liberty Development Corp., NY, (Goldman Sachs
Group, Inc.), 5.25%, 10/1/35(1)
  $ 7,978,635    
  5,000     St. John Baptist Parish, LA, (Marathon Oil Corp.),
5.125%, 6/1/37
    4,416,000    
          $ 12,394,635    
Insured-Electric Utilities — 19.5%      
$ 1,000     Burlington, KS, Pollution Control Revenue,
(Kansas Gas & Electric Co.), (MBIA), 5.30%, 6/1/31
  $ 1,005,670    
  22,685     Chelan County, WA, Public Utility District No. 1,
(Columbia River), (MBIA), 0.00%, 6/1/23
    10,095,506    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Electric Utilities (continued)      
$ 3,900     JEA, FL, Electric System Revenue, (FSA), 5.00%, 10/1/34   $ 3,871,686    
  5,000     Kentucky Municipal Power Agency, (Prairie Street Project),
(MBIA), 5.00%, 9/1/37
    4,931,550    
  2,990     Mississippi Development Bank, (Municipal Energy), (XLCA),
5.00%, 3/1/41
    2,691,389    
  2,990     Missouri Joint Municipal Electric Utility Commission,
(AMBAC), 4.50%, 1/1/37
    2,737,554    
          $ 25,333,355    
Insured-Escrowed / Prerefunded — 13.7%      
$ 6,250     Philadelphia, PA, (FSA), Prerefunded to 3/15/11,
5.00%, 9/15/31(1)
  $ 6,678,480    
  3,825     Pittsburgh, PA, Water and Sewer Authority, (AMBAC),
Prerefunded to 6/1/12, 5.125%, 12/1/27(1)
    4,162,582    
  6,500     San Jose, CA, Redevelopment Agency Tax, (MBIA),
Prerefunded to 8/1/10, 5.00%, 8/1/32(1)
    6,959,240    
          $ 17,800,302    
Insured-General Obligations — 20.7%      
$ 2,550     Butler County, KS, Unified School District No. 394, (FSA),
3.50%, 9/1/24
  $ 2,202,537    
  1,950     California, (FSA), (AMBAC), 3.50%, 10/1/27     1,562,613    
  12,165     Chabot-Las Positas, CA, Community College District,
(AMBAC), 0.00%, 8/1/43
    1,491,064    
  17,000     Coast Community College District, CA, (Election of 2002),
(FSA), 0.00%, 8/1/33
    4,046,340    
  2,995     District of Columbia, (FGIC), 4.75%, 6/1/33     2,794,874    
  1,500     Goodyear, AZ, (MBIA), 3.00%, 7/1/26     1,146,570    
  1,025     King County, WA, Public Hospital District No. 1, (AGC),
5.00%, 12/1/37
    1,015,539    
  1,675     Port Arthur, TX, Independent School District, (AGC),
4.75%, 2/15/38
    1,605,303    
  5,490     Port Orange, FL, Capital Improvements, (FGIC),
5.00%, 10/1/35
    5,433,343    
  5,630     Washington State, (FSA), 5.00%, 7/1/25     5,751,721    
          $ 27,049,904    
Insured-Hospital — 15.6%      
$ 1,700     Highlands County, FL, Health Facilities Authority,
(Adventist Health System), (MBIA), 5.00%, 11/15/35
  $ 1,640,687    
  380     Maryland Health and Higher Educational Facilities Authority,
(Lifebridge Health), (AGC), 4.75%, 7/1/38
    361,825    
  2,775     Maryland Health and Higher Educational Facilities Authority,
(Lifebridge Health), (AGC), 4.75%, 7/1/47
    2,591,184    
  9,000     Maryland Health and Higher Educational Facilities Authority,
(Medlantic/Helix Issue), (FSA), 5.25%, 8/15/38(1)
    9,306,180    

 

See notes to financial statements
13



Eaton Vance Insured Municipal Bond Fund II as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Hospital (continued)      
$ 555     New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center), (AGC),
5.25%, 1/1/31(2)
  $ 560,012    
  1,120     New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center), (AGC),
5.25%, 1/1/36(2)
    1,130,114    
  1,400     New York Dormitory Authority, (Health Quest Systems),
(AGC), 5.125%, 7/1/37
    1,401,414    
  1,300     Washington Health Care Facilities Authority, (Providence
Health Care), Series C, (FSA), 5.25%, 10/1/33
    1,300,000    
  1,235     Washington Health Care Facilities Authority, (Providence
Health Care), Series D, (FSA), 5.25%, 10/1/33(2)
    1,253,698    
  650     Washington Health Care Facilities Authority, (Providence
Health Care), Series E, (FSA), 5.25%, 10/1/33(2)
    654,609    
          $ 20,199,723    
Insured-Lease Revenue / Certificates of
Participation — 3.2%
     
$ 4,250     Massachusetts Development Finance Agency, (MBIA),
5.125%, 2/1/34
  $ 4,198,702    
          $ 4,198,702    
Insured-Other Revenue — 5.2%      
$ 2,540     Harris County-Houston, TX, Sports Authority, (MBIA),
0.00%, 11/15/34
  $ 483,413    
  1,000     New York City, NY, Industrial Development Agency,
(Queens Baseball Stadium), (AMBAC), 5.00%, 1/1/39
    984,480    
  5,500     New York City, NY, Industrial Development Agency,
(Queens Baseball Stadium), (AMBAC), 5.00%, 1/1/46
    5,353,920    
          $ 6,821,813    
Insured-Private Education — 3.9%      
$ 2,500     Massachusetts Development Finance Agency,
(Boston University), (XLCA), 6.00%, 5/15/59
  $ 2,643,300    
  2,500     Massachusetts Development Finance Agency,
(Franklin W. Olin College), (XLCA), 5.25%, 7/1/33
    2,441,700    
          $ 5,085,000    
Insured-Public Education — 2.3%      
$ 3,090     University of California, (FSA), 4.50%, 5/15/28   $ 2,932,843    
          $ 2,932,843    
Insured-Special Tax Revenue — 13.9%      
$ 5,415     Metropolitan Pier and Exposition Authority, IL,
(McCormick Place Expansion), (MBIA), 0.00%, 12/15/34
  $ 1,238,898    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Special Tax Revenue (continued)      
$ 4,000     Metropolitan Pier and Exposition Authority, IL,
(McCormick Place Expansion), (MBIA), 5.25%, 6/15/42
  $ 4,023,360    
  2,500     New York Convention Center Development Corp.,
Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45
    2,370,475    
  3,010     New York Convention Center Development Corp.,
Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44
    2,963,074    
  35,675     Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54     2,350,626    
  6,085     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44     730,626    
  12,065     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45     1,365,517    
  7,595     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46     809,627    
  2,275     Utah Transportation Authority, Sales Tax Revenue, (FSA),
4.75%, 6/15/32(2)
    2,220,468    
          $ 18,072,671    
Insured-Transportation — 30.4%      
$ 11,900     E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/22
  $ 5,412,477    
  10,000     Maryland Transportation Authority, (FSA), 5.00%, 7/1/41     10,023,100    
  1,500     Metropolitan Atlanta Rapid Transit Authority, GA, (FSA),
4.50%, 7/1/32
    1,385,265    
  5,255     Minneapolis-St. Paul, MN, Metropolitan Airports Commission,
(FGIC), 4.50%, 1/1/32
    4,651,516    
  13,885     Nevada Department of Business and Industry,
(Las Vegas Monorail -1st Tier), (AMBAC), 0.00%, 1/1/20
    6,332,254    
  3,640     New Jersey Transportation Trust Fund Authority,
(Transportation System), (AMBAC), 5.00%, 12/15/25
    3,738,353    
  8,150     Texas Turnpike Authority, (AMBAC), 5.00%, 8/15/42(3)     7,957,334    
          $ 39,500,299    
Insured-Utilities — 3.0%      
$ 4,000     Philadelphia, PA, Gas Works Revenue, (FSA),
5.00%, 8/1/32
  $ 3,944,320    
          $ 3,944,320    
Insured-Water and Sewer — 14.3%      
$ 2,240     Atlanta, GA, Water and Wastewater, (FGIC),
5.00%, 11/1/38(4)
  $ 2,168,342    
  3,690     Atlanta, GA, Water and Wastewater, (MBIA),
5.00%, 11/1/39
    3,645,351    
  4,075     Houston, TX, Utility System, (FSA), 5.00%, 11/15/33     4,080,949    
  11,390     Pearland, TX, Waterworks and Sewer Systems, (MBIA),
3.50%, 9/1/31
    8,772,350    
          $ 18,666,992    
Insured-Water Revenue — 21.6%      
$ 7,000     Contra Costa, CA, Water District, (FSA),
5.00%, 10/1/32(1)
  $ 6,970,758    

 

See notes to financial statements
14



Eaton Vance Insured Municipal Bond Fund II as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Water Revenue (continued)      
$ 5,655     Los Angeles, CA, Department of Water and Power,
Water Revenue, (FGIC), 5.00%, 7/1/43
  $ 5,561,579    
  835     Marysville, OH, Wastewater Treatment System, (XLCA),
4.75%, 12/1/46
    742,816    
  6,110     Massachusetts Water Resources Authority, (AMBAC),
4.00%, 8/1/40
    5,003,907    
  6,865     Metropolitan Water District, CA, (FGIC), 5.00%, 10/1/36     6,874,817    
  2,870     San Antonio, TX, Water Revenue, (FGIC),
5.00%, 5/15/23
    2,910,610    
          $ 28,064,487    
Other Revenue — 0.3%      
$ 500     Main Street National Gas Inc., GA, 5.50%, 9/15/27   $ 449,285    
          $ 449,285    
Special Tax Revenue — 0.6%      
$ 750     New Jersey Economic Development Authority,
(Cigarette Tax), 5.50%, 6/15/24
  $ 722,685    
          $ 722,685    
Total Tax-Exempt Investments — 188.8%
(identified cost $253,166,841)
  $ 245,675,758    
Other Assets, Less Liabilities — (21.5)%   $ (27,995,931 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (67.3)%
  $ (87,523,217 )  
Net Assets Applicable to
Common Shares — 100.0%
  $ 130,156,610    

 

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.

At March 31, 2008, the concentration of the Fund's investments in the various states, determined as a percentage of total investments, is as follows:

California     15.7 %  
Texas     11.0 %  
New York     10.0 %  
Others, representing less than 10% individually     63.3 %  

 

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, 2008, 88.6% 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 3.5% to 27.8% of total investments.

(1)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

(2)  When-issued security.

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

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

See notes to financial statements
15



Eaton Vance Insured California Municipal Bond Fund II as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited)


Tax-Exempt Investments — 176.9%
     
Principal Amount
(000's omitted)
 
Security
 
Value
 
General Obligations — 3.0%      
$ 1,465     California, 5.50%, 11/1/33   $ 1,496,161    
          $ 1,496,161    
Hospital — 18.1%      
$ 1,445     California Health Facilities Financing Authority,
(Cedars-Sinai Medical Center), 5.00%, 11/15/34
  $ 1,356,999    
  2,940     California Statewide Communities Development Authority,
(Huntington Memorial Hospital), 5.00%, 7/1/35
    2,772,949    
  405     California Statewide Communities Development Authority,
(John Muir Health), 5.00%, 8/15/34
    382,879    
  1,000     California Statewide Communities Development Authority,
(John Muir Health), 5.00%, 8/15/36
    940,820    
  1,400     California Statewide Communities Development Authority,
(Kaiser Permanente), 5.00%, 3/1/41
    1,289,022    
  1,900     California Statewide Communities Development Authority,
(Kaiser Permanente), 5.25%, 3/1/45
    1,806,539    
  555     Washington Township Health Care District, 5.00%, 7/1/32     521,212    
          $ 9,070,420    
Insured-Electric Utilities — 9.0%      
$ 1,475     Glendale Electric, (MBIA), 5.00%, 2/1/32   $ 1,476,785    
  1,600     Los Angeles Department of Water & Power,
Power Systems Revenue, (AMBAC), 5.00%, 7/1/26
    1,630,752    
  1,370     Sacramento Municipal Electric Utility District, (FSA),
5.00%, 8/15/28(1)
    1,380,042    
          $ 4,487,579    
Insured-Escrowed / Prerefunded — 9.3%      
$ 395     Orange County Water District, Certificates of Participation,
Escrowed to Maturity, (MBIA), 5.00%, 8/15/34
  $ 395,861    
  4,000     San Jose Redevelopment Agency Tax, (MBIA),
Prerefunded to 8/1/10, 5.00%, 8/1/32(1)
    4,283,180    
          $ 4,679,041    
Insured-General Obligations — 54.0%      
$ 740     Antelope Valley Community College District,
(Election of 2004), (MBIA), 5.25%, 8/1/39
  $ 752,950    
  8,680     Arcadia Unified School District, (FSA), 0.00%, 8/1/38     1,465,965    
  3,115     Arcadia Unified School District, (FSA), 0.00%, 8/1/40     464,073    
  3,270     Arcadia Unified School District, (FSA), 0.00%, 8/1/41     459,598    
  820     California, (AMBAC), 5.00%, 4/1/27     822,353    
  1,500     Carlsbad Unified School District, (Election 2006),
(MBIA), 5.25%, 8/1/32
    1,532,415    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-General Obligations (continued)      
$ 19,350     Chabot-Las Positas Community College District,
(AMBAC), 0.00%, 8/1/43
  $ 2,371,729    
  5,000     Clovis Unified School District, (FGIC), 0.00%, 8/1/20     2,693,200    
  6,675     Coast Community College District, (Election of 2002),
(FSA), 0.00%, 8/1/35
    1,412,964    
  2,350     Long Beach Unified School District, (Election of 1999),
(FSA), 5.00%, 8/1/31
    2,340,224    
  695     Los Angeles Unified School District, (FSA),
4.50%, 7/1/24
    685,499    
  1,845     Los Osos Community Services, Wastewater Assessment District,
(MBIA), 5.00%, 9/2/33
    1,750,850    
  1,000     Mount Diablo Unified School District, (FSA),
5.00%, 8/1/25
    1,012,360    
  2,205     San Diego Unified School District, (MBIA),
5.50%, 7/1/24(1)
    2,435,577    
  4,300     San Mateo County Community College District,
(Election of 2001), (FGIC), 0.00%, 9/1/21
    2,156,665    
  1,750     Santa Ana Unified School District, (MBIA),
5.00%, 8/1/32
    1,755,285    
  1,620     Santa Clara Unified School District, (Election of 2004),
(FSA), 4.375%, 7/1/30
    1,488,343    
  3,200     Union Elementary School District, (FGIC),
0.00%, 9/1/22
    1,509,568    
          $ 27,109,618    
Insured-Lease Revenue / Certificates of
Participation — 14.3%
     
$ 4,250     California Public Works Board Lease Revenue,
(Department of General Services), (AMBAC),
5.00%, 12/1/27(2)
  $ 4,268,997    
  1,855     Orange County Water District, Certificates of Participation,
(MBIA), 5.00%, 8/15/34
    1,842,516    
  1,075     San Jose Financing Authority, (Civic Center), (AMBAC),
5.00%, 6/1/32
    1,076,408    
          $ 7,187,921    
Insured-Public Education — 12.0%      
$ 4,000     California State University, (AMBAC), 5.00%, 11/1/33   $ 3,994,080    
  1,000     University of California, (FSA), 4.50%, 5/15/26     966,260    
  1,110     University of California, (FSA), 4.50%, 5/15/28     1,053,545    
          $ 6,013,885    
Insured-Special Assessment Revenue — 17.3%      
$ 2,500     Cathedral City Public Financing Authority,
(Housing Redevelopment), (MBIA),
5.00%, 8/1/33
  $ 2,478,550    

 

See notes to financial statements
16



Eaton Vance Insured California Municipal Bond Fund II as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Special Assessment Revenue (continued)      
$ 2,500     Cathedral City Public Financing Authority,
(Tax Allocation Redevelopment), (MBIA),
5.00%, 8/1/33
  $ 2,478,550    
  1,750     Irvine Public Facility and Infrastructure Authority, (AMBAC),
5.00%, 9/2/26
    1,754,042    
  2,000     Murrieta Redevelopment Agency Tax, (MBIA),
5.00%, 8/1/32
    1,988,720    
          $ 8,699,862    
Insured-Special Tax Revenue — 10.5%      
$ 2,195     Hesperia Public Financing Authority,
(Redevelopment and Housing Project),
(XLCA), 5.00%, 9/1/37
  $ 2,029,804    
  13,650     Puerto Rico Sales Tax Financing,
(AMBAC), 0.00%, 8/1/54
    899,398    
  2,325     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    279,163    
  4,610     Puerto Rico Sales Tax Financing,
(MBIA), 0.00%, 8/1/45
    521,760    
  2,905     Puerto Rico Sales Tax Financing,
(MBIA), 0.00%, 8/1/46
    309,673    
  260     San Francisco Bay Area Rapid Transportation District,
Sales Tax Revenue, (AMBAC), 5.00%, 7/1/31
    258,214    
  985     San Francisco Bay Area Rapid Transportation District,
Sales Tax Revenue, (AMBAC), 5.125%, 7/1/36
    986,527    
          $ 5,284,539    
Insured-Transportation — 6.1%      
$ 2,000     Puerto Rico Highway and Transportation Authority,
(FGIC), 5.25%, 7/1/39
  $ 1,914,100    
  3,670     San Joaquin Hills Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/27
    1,167,427    
          $ 3,081,527    
Insured-Utilities — 3.5%      
$ 1,750     Los Angeles Department of Water and Power,
(FGIC), 5.125%, 7/1/41
  $ 1,752,713    
          $ 1,752,713    
Insured-Water Revenue — 14.8%      
$ 1,235     Calleguas Las Virgenes Public Financing Authority,
(Municipal Water District), (FGIC), 4.75%, 7/1/37
  $ 1,184,069    
  2,500     Contra Costa Water District, (FSA), 5.00%, 10/1/32(1)     2,489,521    
  1,500     Los Angeles Department of Water and Power, (MBIA),
3.00%, 7/1/30
    1,082,100    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Water Revenue (continued)      
$ 1,475     San Francisco City and County Public Utilities Commission,
(FSA), 4.25%, 11/1/33
  $ 1,309,623    
  1,655     Santa Clara Valley Water District, (FSA), 3.75%, 6/1/28     1,372,012    
          $ 7,437,325    
Water Revenue — 5.0%      
$ 2,500     California Water Resource, (Central Valley),
5.00%, 12/1/29
  $ 2,506,550    
          $ 2,506,550    
Total Tax-Exempt Investments — 176.9%
(identified cost $92,560,944)
  $ 88,807,141    
Other Assets, Less Liabilities — (9.7)%   $ (4,852,336 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (67.2)%
  $ (33,764,927 )  
Net Assets Applicable to
Common Shares — 100.0%
  $ 50,189,878    

 

AMBAC - AMBAC Financial Group, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2008, 85.3% 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 29.9% of total investments.

(1)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

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

See notes to financial statements
17



Eaton Vance Insured Florida Plus Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited)


Tax-Exempt Investments — 184.9%
     
Principal Amount
(000's omitted)
 
Security
 
Value
 
Electric Utilities — 2.0%      
$ 200     Puerto Rico Electric Power Authority, DRIVERS,
Variable Rate, 10.00%, 7/1/25(1)(2)
  $ 188,742    
  600     Puerto Rico Electric Power Authority, DRIVERS,
Variable Rate, 10.00%, 7/1/37(1)(2)
    477,114    
          $ 665,856    
Escrowed / Prerefunded — 3.4%      
$ 1,050     Highlands County Health Facilities Authority,
(Adventist Health), Prerefunded to 11/15/12,
5.25%, 11/15/23
  $ 1,150,181    
          $ 1,150,181    
Hospital — 4.1%      
$ 500     Michigan Hospital Finance Authority,
(Henry Ford Health System), 5.00%, 11/15/38
  $ 457,290    
  1,000     South Miami Health Facilities Authority,
(Baptist Health), 5.00%, 8/15/42(3)
    937,740    
          $ 1,395,030    
Industrial Development Revenue — 5.9%      
$ 1,950     Liberty Development Corp., NY, (Goldman Sachs Group, Inc.),
5.25%, 10/1/35(3)
  $ 1,975,662    
          $ 1,975,662    
Insured-Electric Utilities — 6.6%      
$ 1,300     Jacksonville Electric Authority, Electric System Revenue,
(FSA), 4.75%, 10/1/34
  $ 1,238,263    
  1,000     Northern Municipal Power Agency, IL, (Prairie Street Project),
(MBIA), 5.00%, 1/1/32
    987,600    
          $ 2,225,863    
Insured-Escrowed / Prerefunded — 19.7%      
$ 1,025     Dade County, Professional Sports Franchise Facility,
(MBIA), Escrowed to Maturity, 5.25%, 10/1/30
  $ 1,080,053    
  2,250     Orange County Tourist Development Tax, (AMBAC),
Prerefunded to 4/1/12, 5.125%, 10/1/30(3)
    2,440,012    
  2,825     Puerto Rico Highway and Transportation Authority,
(MBIA), Prerefunded to 7/1/16, 5.00%, 7/1/36(3)
    3,133,151    
          $ 6,653,216    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-General Obligations — 29.5%      
$ 2,000     Bowling Green, OH, City School District, (FSA),
5.00%, 12/1/34
  $ 2,004,240    
  280     King County, WA, Public Hospital District No. 1, (AGC),
5.00%, 12/1/37
    277,416    
  3,000     Mobile, AL, (FSA), 5.00%, 2/15/28(5)     3,037,140    
  1,100     Monroe Township, NJ, Board of Education, Middlesex County,
(AGC), 4.75%, 3/1/38
    1,067,473    
  1,775     Portage, MI, Public Schools, (FSA), 5.00%, 5/1/31     1,784,709    
  420     Port Arthur, TX, Independent School District, (AGC),
4.75%, 2/15/38
    402,524    
  3,005     San Juan, CA, Unified School District, (FSA),
0.00%, 8/1/23
    1,365,652    
          $ 9,939,154    
Insured-Hospital — 10.3%      
$ 255     Maryland Health and Higher Educational Facilities Authority,
(Lifebridge Health), (AGC), 4.75%, 7/1/38
  $ 242,803    
  1,700     Maryland Health and Higher Educational Facilities Authority,
(Lifebridge Health), (AGC), 4.75%, 7/1/47(3)
    1,587,435    
  545     New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center), (AGC),
5.25%, 1/1/31(4)
    549,921    
  1,100     New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center), (AGC),
5.25%, 1/1/36(4)
    1,109,933    
          $ 3,490,092    
Insured-Lease Revenue / Certificates of
Participation — 2.3%
     
$ 750     Scago, SC, Educational Facility Corp., Pickens School District,
(FSA), 5.00%, 12/1/24
  $ 762,083    
          $ 762,083    
Insured-Other Revenue — 5.9%      
$ 2,000     Village Center Community Development District, (MBIA),
5.00%, 11/1/32
  $ 1,980,920    
          $ 1,980,920    
Insured-Public Education — 7.8%      
$ 1,700     Florida Gulf Coast University Financing Corporation, (MBIA),
4.75%, 8/1/32
  $ 1,624,316    
  1,025     University of Vermont and State Agricultural College,
(MBIA), 5.00%, 10/1/40
    1,011,696    
          $ 2,636,012    

 

See notes to financial statements
18



Eaton Vance Insured Florida Plus Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Sewer Revenue — 3.0%      
$ 1,000     Pinellas County Sewer, (FSA), 5.00%, 10/1/32(5)   $ 995,800    
          $ 995,800    
Insured-Special Tax Revenue — 25.0%      
$ 1,580     Baton Rouge, LA, Public Improvement, (FSA),
4.25%, 8/1/32(6)
  $ 1,389,894    
  1,250     Cape Coral Utility Improvements Assessment,
(Southwest 5 & Surfside Areas), (MBIA),
4.75%, 9/1/28
    1,181,200    
  1,275     Jacksonville, Excise Tax, (FGIC), 5.125%, 10/1/27     1,284,410    
  380     Louisiana Gas and Fuels Tax, (FGIC), (FSA),
5.00%, 5/1/41
    375,136    
  600     Miami-Dade County, Special Obligation, (MBIA),
0.00%, 10/1/35
    121,740    
  8,000     Miami-Dade County, Special Obligation, (MBIA),
0.00%, 10/1/39
    1,272,640    
  740     New York Convention Center Development Corp.,
Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44
    728,463    
  9,835     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
    648,028    
  1,690     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    202,918    
  3,350     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/45
    379,153    
  2,105     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/46
    224,393    
  1,120     Sunrise Public Facilities, (MBIA), 0.00%, 10/1/20     611,531    
          $ 8,419,506    
Insured-Transportation — 30.4%      
$ 1,155     Central Puget Sound, WA, Regional Transportation Authority,
Sales Revenue, (FSA), 5.00%, 11/1/34
  $ 1,160,186    
  420     Chicago, IL, (O'Hare International Airport), (FSA),
4.50%, 1/1/38
    378,874    
  3,000     Chicago, IL, (O'Hare International Airport), (FSA),
5.00%, 1/1/33
    2,987,100    
  1,385     Florida Mid-Bay Bridge Authority, (AMBAC),
4.625%, 10/1/32
    1,299,088    
  1,470     Florida Turnpike Authority, Water & Sewer Revenue,
(Department of Transportation), (FGIC), 4.50%, 7/1/27
    1,386,651    
  575     Metropolitan Atlanta Rapid Transit Authority, GA,
(FSA), 5.00%, 7/1/34
    577,915    
  670     Port Authority of New York and New Jersey, (FSA),
5.00%, 8/15/33
    676,955    
  1,605     Port Palm Beach District, (Improvements), (XLCA),
0.00%, 9/1/24
    672,447    
  1,950     Port Palm Beach District, (Improvements), (XLCA),
0.00%, 9/1/25
    764,400    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Transportation (continued)      
$ 1,000     Port Palm Beach District, (Improvements), (XLCA),
0.00%, 9/1/26
  $ 367,500    
          $ 10,271,116    
Insured-Water and Sewer — 27.5%      
$ 2,210     Austin, TX, Water and Wastewater System,
(FSA), 5.00%, 11/15/33
  $ 2,214,486    
  1,000     Emerald Coast, Utility Authority Revenue, (FGIC),
4.75%, 1/1/31
    951,830    
  2,000     Fernley, NV, (AGC), 5.00%, 2/1/38(4)     1,993,700    
  370     Houston, TX, Utility System, (FSA), 5.00%, 11/15/33     370,540    
  1,250     Jacksonville Electric Authority, Water and Sewer System,
(MBIA), 4.75%, 10/1/30
    1,199,925    
  2,000     Marco Island Utility System, (MBIA), 5.00%, 10/1/27     2,010,500    
  570     Pearland, TX, Waterworks and Sewer Systems, (FSA),
4.50%, 9/1/34
    523,049    
          $ 9,264,030    
Insured-Water Revenue — 1.5%      
$ 500     Tampa Bay Water Utility System, (FGIC), Variable Rate,
7.01%, 10/1/27(1)(7)
  $ 506,065    
          $ 506,065    
Total Tax-Exempt Investments — 184.9%
(identified cost $63,408,573)
  $ 62,330,586    
Other Assets, Less Liabilities — (18.1)%   $ (6,111,579 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (66.8)%
  $ (22,500,000 )  
Net Assets Applicable to
Common Shares — 100.0%
  $ 33,719,007    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

DRIVERS - Derivative Inverse Tax-Exempt Receipts

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

See notes to financial statements
19



Eaton Vance Insured Florida Plus Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

At March 31, 2008, the concentration of the Fund's investments in the various states, determined as a percentage of total investments, is as follows:

Florida     40.2 %  
Others, representing less than 10% individually     59.8 %  

 

The Fund invests primarily in debt securities issued by Florida and other state 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, 2008, 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 2.9% to 35.0% 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, 2008, the aggregate value of the securities is $1,171,921 or 3.5% 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, 2008.

(3)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

(4)  When-issued security.

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

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

(7)  Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at March 31, 2008.

See notes to financial statements
20




Eaton Vance Insured Massachusetts Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited)


Tax-Exempt Investments — 180.7%
     
Principal Amount
(000's omitted)
  Security   Value  
Escrowed / Prerefunded — 11.9%      
$ 500     Massachusetts Development Finance Agency,
(Massachusetts College of Pharmacy),
Prerefunded to 7/1/13, 5.75%, 7/1/33
  $ 572,025    
  600     Massachusetts Development Finance Agency,
(Western New England College),
Prerefunded to 12/1/12, 6.125%, 12/1/32
    687,888    
  1,445     Massachusetts Health and Educational Facilities Authority,
(Partners Healthcare System),
Prerefunded to 7/1/11, 5.75%, 7/1/32
    1,597,997    
            $ 2,857,910    
Hospital — 4.4%      
$ 55     Massachusetts Health and Educational Facilities Authority,
(Partners Healthcare Systems), 5.75%, 7/1/32
  $ 56,402    
  1,000     Massachusetts Health and Educational Facilities Authority,
(South Shore Hospital), 5.75%, 7/1/29
    1,004,600    
            $ 1,061,002    
Housing — 3.5%      
$ 985     Massachusetts Housing Finance Agency 4.50%, 6/1/38   $ 845,849    
            $ 845,849    
Insured-Escrowed / Prerefunded — 32.0%      
$ 2,900     Massachusetts College Building Authority,
(MBIA), Escrowed to Maturity, 0.00%, 5/1/26
  $ 1,180,996    
  350     Massachusetts Development Finance Agency,
(WGBH Educational Foundation), (AMBAC),
Prerefunded to 1/1/12, 5.375%, 1/1/42
    384,548    
  50     Massachusetts Health and Educational Facilities Authority,
(New England Medical Center), (FGIC),
Prerefunded to 5/15/12, 5.00%, 5/15/25
    54,111    
  3,000     Puerto Rico, (FGIC), Prerefunded to
7/1/12, 5.00%, 7/1/32(1)
    3,254,450    
  1,000     Puerto Rico Highway and Transportation Authority, (MBIA),
Prerefunded to 7/1/16, 5.00%, 7/1/36(1)
    1,109,820    
  1,500     University of Massachusetts Building Authority, (AMBAC),
Prerefunded to 11/1/14, 5.125%, 11/1/34
    1,671,840    
            $ 7,655,765    
Insured-General Obligations — 12.8%      
$ 2,000     Massachusetts, (MBIA), 5.25%, 8/1/28   $ 2,123,940    
  1,000     Milford, (FSA), 4.25%, 12/15/46     858,190    

 

Principal Amount
(000's omitted)
  Security   Value  
Insured-General Obligations (continued)      
$ 75     Sandwich, (MBIA), 4.50%, 7/15/29   $ 72,015    
            $ 3,054,145    
Insured-Hospital — 4.6%      
$ 1,160     Massachusetts Health and Educational Facilities Authority,
(New England Medical Center), (FGIC), 5.00%, 5/15/25
  $ 1,106,014    
            $ 1,106,014    
Insured-Lease Revenue / Certificates of
Participation — 14.7%
     
$ 1,750     Massachusetts Development Finance Agency, (MBIA),
5.125%, 2/1/34
  $ 1,728,877    
  1,000     Plymouth County Correctional Facility, (AMBAC),
5.00%, 4/1/22
    1,022,080    
  795     Puerto Rico Public Buildings Authority, (CIFG),
5.25%, 7/1/36
    760,020    
            $ 3,510,977    
Insured-Other Revenue — 4.7%      
$ 1,000     Massachusetts Development Finance Agency,
(WGBH Educational Foundation), (AMBAC),
5.75%, 1/1/42
  $ 1,121,580    
            $ 1,121,580    
Insured-Pooled Loans — 10.1%      
$ 2,400     Puerto Rico Municipal Finance Agency, (FSA),
5.00%, 8/1/27(1)
  $ 2,408,184    
            $ 2,408,184    
Insured-Private Education — 26.8%      
$ 1,000     Massachusetts Development Finance Agency,
(Boston University), (XLCA), 5.375%, 5/15/39
  $ 1,007,370    
  1,105     Massachusetts Development Finance Agency,
(Boston University), (XLCA), 6.00%, 5/15/59
    1,168,339    
  750     Massachusetts Development Finance Agency,
(College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1)
    791,532    
  1,500     Massachusetts Development Finance Agency,
(Franklin W. Olin College), (XLCA), 5.25%, 7/1/33
    1,465,020    
  750     Massachusetts Development Finance Agency,
(Massachusetts College of Pharmacy), (AGC),
5.00%, 7/1/35
    735,712    
  1,000     Massachusetts Development Finance Agency,
(Massachusetts College of Pharmacy), (AGC),
5.00%, 7/1/37
    990,810    

 

See notes to financial statements
21



Eaton Vance Insured Massachusetts Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
  Security   Value  
Insured-Private Education (continued)      
$ 250     Massachusetts Industrial Finance Agency,
(Tufts University), (MBIA), 4.75%, 2/15/28
  $ 243,708    
            $ 6,402,491    
Insured-Public Education — 12.1%      
$ 700     Massachusetts College Building Authority, (XLCA),
5.50%, 5/1/39
  $ 744,191    
  1,000     Massachusetts Health and Educational Facilities Authority,
(University of Massachusetts), (FGIC),
5.125%, 10/1/34
    993,550    
  1,150     Massachusetts Health and Educational Facilities Authority,
(Worcester State College), (AMBAC), 5.00%, 11/1/32
    1,146,723    
            $ 2,884,464    
Insured-Special Tax Revenue — 10.5%      
$ 1,280     Martha's Vineyard Land Bank, (AMBAC),
5.00%, 5/1/32
  $ 1,280,512    
  380     Massachusetts Bay Transportation Authority,
Revenue Assessment, (MBIA), 4.00%, 7/1/33
    318,622    
  6,200     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
    408,518    
  1,055     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    126,674    
  2,095     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/45
    237,112    
  1,325     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/46
    141,245    
            $ 2,512,683    
Insured-Transportation — 10.4%      
$ 3,700     Massachusetts Turnpike Authority, (MBIA),
0.00%, 1/1/28
  $ 1,262,255    
  1,250     Massachusetts Turnpike Authority,
Metropolitan Highway System, (AMBAC),
5.00%, 1/1/39
    1,232,513    
            $ 2,494,768    
Insured-Water Revenue — 14.3%      
$ 1,125     Massachusetts Water Resources Authority, (AMBAC),
4.00%, 8/1/40
  $ 921,341    
  2,500     Massachusetts Water Resources Authority, (FSA),
5.00%, 8/1/32
    2,489,375    
            $ 3,410,716    

 

Principal Amount
(000's omitted)
  Security   Value  
Nursing Home — 2.7%      
$ 745     Massachusetts Development Finance Agency,
(Berkshire Retirement Community, Inc./Edgecombe),
5.15%, 7/1/31
  $ 648,441    
            $ 648,441    
Private Education — 5.2%      
$ 750     Massachusetts Development Finance Agency,
(Middlesex School), 5.00%, 9/1/33
  $ 731,010    
  500     Massachusetts Health and Educational Facilities Authority,
(Boston College), 5.125%, 6/1/24
    508,925    
            $ 1,239,935    
Total Tax-Exempt Investments
(identified cost $43,499,127)
  $ 43,214,924    
Short-Term Investments — 3.0%      
Principal Amount
(000's omitted)
  Description   Value  
$ 710     Massachusetts Development Finance Agency,
(Wentworth Institute), (AMBAC), (SPA: State Street
Bank and Trust Co.), Variable Rate,
6.25%, 10/1/30(2)
  $ 710,000    
Total Short-Term Investments
(identified cost $710,000)
  $ 710,000    
Total Investments — 183.7%
(identified cost $44,209,127)
  $ 43,924,924    
Other Assets, Less Liabilities — (18.8)%   $ (4,503,539 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (64.9)%
  $ (15,505,484 )  
Net Assets Applicable to
Common Shares — 100.0%
  $ 23,915,901    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

CIFG - CIFG Assurance North America, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

See notes to financial statements
22



Eaton Vance Insured Massachusetts Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

SPA - Standby Bond Purchase Agreement

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, 2008, 84.9% 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 1.7% to 24.3% of total investments.

(1)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

(2)  Variable rate demand obligation. The stated interest rate represents the rate in effect at March 31, 2008.

See notes to financial statements
23



Eaton Vance Insured Michigan Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 169.3%      
Principal Amount
(000's omitted)
  Security   Value  
Electric Utilities — 6.0%      
$ 1,250     Michigan Strategic Fund, (Detroit Edison
Pollution Control), 5.45%, 9/1/29
  $ 1,258,825    
            $ 1,258,825    
Escrowed / Prerefunded — 7.8%      
$ 1,500     Michigan Hospital Finance Authority,
(Sparrow Obligation Group), Prerefunded to
11/15/11, 5.625%, 11/15/36
  $ 1,659,330    
            $ 1,659,330    
Hospital — 13.5%      
$ 400     Michigan Hospital Finance Authority, (Chelsea Community
Hospital), 5.00%, 5/15/30
  $ 348,244    
  1,000     Michigan Hospital Finance Authority, (Oakwood Hospital
System), 5.75%, 4/1/32
    1,003,010    
  1,500     Michigan Hospital Finance Authority, (Trinity Health),
5.375%, 12/1/30
    1,508,175    
            $ 2,859,429    
Insured-Electric Utilities — 2.3%      
$ 500     Michigan Strategic Fund, (Detroit Edison Co.), (XLCA),
5.25%, 12/15/32
  $ 485,810    
            $ 485,810    
Insured-Escrowed / Prerefunded — 52.1%      
$ 750     Detroit School District, (School Bond Loan Fund), (FSA),
Prerefunded to 5/1/12, 5.125%, 5/1/31
  $ 815,070    
  1,250     Detroit Sewer Disposal, (FGIC), Prerefunded to
7/1/11, 5.125%, 7/1/31
    1,347,500    
  1,500     Lansing Building Authority, (MBIA), Prerefunded to
6/1/13, 5.00%, 6/1/29
    1,646,295    
  1,150     Michigan Hospital Finance Authority, (St. John Health
System), (AMBAC), Escrowed to Maturity, 5.00%, 5/15/28
    1,154,071    
  1,000     Michigan Trunk Line, (FSA), Prerefunded to
11/1/11, 5.00%, 11/1/25
    1,080,700    
  3,275     Puerto Rico, (FGIC), Prerefunded to
7/1/12, 5.00%, 7/1/32(1)
    3,553,623    
  1,300     Reed City Public Schools, (FSA), Prerefunded to
5/1/14, 5.00%, 5/1/29
    1,434,589    
            $ 11,031,848    

 

Principal Amount
(000's omitted)
  Security   Value  
Insured-General Obligations — 10.5%      
$ 1,960     Grand Rapids and Kent County Joint Building Authority,
(DeVos Place), (MBIA), 0.00%, 12/1/27
  $ 672,986    
  750     Greenville Public Schools, (MBIA), 5.00%, 5/1/25     755,505    
  1,330     Okemos Public School District, (MBIA), 0.00%, 5/1/19     788,756    
            $ 2,217,247    
Insured-Hospital — 9.9%      
$ 500     Michigan Hospital Finance Authority, (Mid-Michigan
Obligation Group), (AMBAC), 5.00%, 4/15/32
  $ 492,425    
  1,590     Royal Oak Hospital Finance Authority, (William Beaumont
Hospital), (MBIA), 5.25%, 11/15/35
    1,592,035    
            $ 2,084,460    
Insured-Lease Revenue / Certificates of
Participation — 18.3%
     
$ 1,000     Michigan Building Authority, (FGIC),
0.00%, 10/15/29
  $ 291,250    
  1,750     Michigan House of Representatives, (AMBAC),
0.00%, 8/15/22
    830,952    
  2,615     Michigan House of Representatives, (AMBAC),
0.00%, 8/15/23
    1,164,930    
  3,100     Michigan State Building Authority, (FGIC),
0.00%, 10/15/30
    825,065    
  795     Puerto Rico Public Buildings Authority, (CIFG),
5.25%, 7/1/36
    760,020    
            $ 3,872,217    
Insured-Public Education — 16.2%      
$ 1,500     Central Michigan University, (AMBAC),
5.05%, 10/1/32(2)
  $ 1,500,720    
  750     Lake Superior State University, (AMBAC),
5.125%, 11/15/26
    744,180    
  1,200     Wayne University, (MBIA), 5.00%, 11/15/37     1,192,584    
            $ 3,437,484    
Insured-Special Tax Revenue — 15.9%      
$ 7,030     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
  $ 463,207    
  845     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    101,459    
  1,675     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/45
    189,577    
  1,115     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/46
    118,859    

 

See notes to financial statements
24



Eaton Vance Insured Michigan Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
  Security   Value  
Insured-Special Tax Revenue (continued)      
$ 1,500     Wayne Charter County, (Airport Hotel-Detroit Metropolitan
Airport), (MBIA), 5.00%, 12/1/30
  $ 1,501,755    
  1,000     Ypsilanti Community Utilities Authority, (Sanitary Sewer
System), (FGIC), 5.00%, 5/1/32
    983,450    
            $ 3,358,307    
Insured-Utilities — 7.2%      
$ 1,000     Lansing Board of Water and Light, (Water Supply,
Steam and Electric Utility), (FSA), 5.00%, 7/1/25
  $ 1,014,670    
  510     Lansing Board of Water and Light, (Water Supply,
Steam and Electric Utility), (FSA), 5.00%, 7/1/26
    514,881    
            $ 1,529,551    
Insured-Water Revenue — 7.4%      
$ 1,600     Detroit Water Supply System, (FGIC), 5.00%, 7/1/30   $ 1,568,304    
            $ 1,568,304    
Private Education — 2.2%      
$ 500     Michigan Higher Education Facilities Authority, (Hillsdale
College), 5.00%, 3/1/35
  $ 475,165    
            $ 475,165    
Total Tax-Exempt Investments — 169.3%
(identified cost $35,483,255)
  $ 35,837,977    
Other Assets, Less Liabilities — (5.5)%   $ (1,164,177 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (63.8)%
  $ (13,507,165 )  
Net Assets Applicable to
Common Shares — 100.0%
  $ 21,166,635    

 

AMBAC - AMBAC Financial Group, Inc.

CIFG - CIFG Assurance 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, 2008, 82.6% 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 1.4% to 23.9% of total investments.

(1)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

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

See notes to financial statements
25



Eaton Vance Insured New Jersey Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 177.2%      
Principal Amount
(000's omitted)
  Security   Value  
Hospital — 15.9%      
$ 100     Camden County Improvement Authority,
(Cooper Health System), 5.00%, 2/15/25
  $ 92,266    
  180     Camden County Improvement Authority,
(Cooper Health System), 5.00%, 2/15/35
    153,986    
  150     Camden County Improvement Authority,
(Cooper Health System), 5.25%, 2/15/27
    139,786    
  1,300     Camden County Improvement Authority,
(Cooper Health System), 5.75%, 2/15/34
    1,209,208    
  600     New Jersey Health Care Facilities Financing Authority,
(Atlanticare Regional Medical Center), 5.00%, 7/1/37
    549,246    
  610     New Jersey Health Care Facilities Financing Authority,
(Capital Health System), 5.375%, 7/1/33
    570,435    
  575     New Jersey Health Care Facilities Financing
Authority, (Capital Health System), 5.75%, 7/1/23
    583,774    
  250     New Jersey Health Care Facilities Financing Authority,
(Hunterdon Medical Center), 5.125%, 7/1/35
    240,917    
  600     New Jersey Health Care Facilities Financing Authority,
(South Jersey Hospital), 5.00%, 7/1/36
    551,952    
  1,705     New Jersey Health Care Facilities Financing
Authority, (South Jersey Hospital), 5.00%, 7/1/46
    1,532,965    
            $ 5,624,535    
Insured-Electric Utilities — 3.8%      
$ 650     Puerto Rico Electric Power Authority, (FGIC),
5.25%, 7/1/34
  $ 624,890    
  750     Puerto Rico Electric Power Authority, (FGIC),
5.25%, 7/1/35
    719,528    
            $ 1,344,418    
Insured-Escrowed / Prerefunded — 21.4%      
$ 800     Newark Housing Authority, (Newark Marine Terminal),
(MBIA), Prerefunded to 1/1/14, 5.00%, 1/1/23
  $ 879,232    
  1,500     Newark Housing Authority, (Newark Marine Terminal),
(MBIA), Prerefunded to 1/1/14, 5.00%, 1/1/37
    1,648,561    
  4,645     Puerto Rico, (FGIC), Prerefunded to 7/1/12,
5.00%, 7/1/32(1)
    5,039,397    
            $ 7,567,190    
Insured-General Obligations — 38.9%      
$ 2,260     Bayonne, (FSA), 0.00%, 7/1/22   $ 1,110,361    
  2,415     Bayonne, (FSA), 0.00%, 7/1/23     1,112,784    
  465     Chesterfield Township School District, (AGC),
4.50%, 2/1/37
    441,225    

 

Principal Amount
(000's omitted)
  Security   Value  
Insured-General Obligations (continued)      
$ 810     Chesterfield Township School District, (AGC),
4.50%, 2/1/38
  $ 766,714    
  2,000     Hudson County Improvement Authority, (MBIA),
0.00%, 12/15/38
    355,020    
  5,500     Irvington Township, (FSA), 0.00%, 7/15/26     2,097,865    
  2,960     Jackson Township School District, (MBIA),
2.50%, 6/15/27
    2,110,421    
  530     Madison Borough Board of Education, (MBIA),
4.75%, 7/15/35
    524,366    
  2,670     Monroe Township Board of Education, Middlesex County, (AGC),
4.75%, 3/1/34
    2,606,881    
  265     Nutley School District, (MBIA), 4.50%, 7/15/29     256,170    
  310     Nutley School District, (MBIA), 4.75%, 7/15/30     309,557    
  410     Nutley School District, (MBIA), 4.75%, 7/15/31     407,684    
  430     Nutley School District, (MBIA), 4.75%, 7/15/32     426,844    
  210     South Orange and Maplewood School District, (AGC),
4.625%, 1/15/26
    209,355    
  215     South Orange and Maplewood School District, (AGC),
4.625%, 1/15/27
    212,988    
  870     Sparta Township School District, (FSA), 4.30%, 2/15/34     794,345    
            $ 13,742,580    
Insured-Hospital — 14.9%      
$ 2,750     New Jersey Health Care Facilities Financing Authority,
(Englewood Hospital), (MBIA), 5.00%, 8/1/31(2)
  $ 2,719,943    
  545     New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center), (AGC),
5.25%, 1/1/31(3)
    549,921    
  1,100     New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center), (AGC),
5.25%, 1/1/36(3)
    1,109,933    
  900     New Jersey Health Care Facilities Financing Authority,
(Jersey City Medical Center), (AMBAC), 5.00%, 8/1/41
    863,334    
            $ 5,243,131    
Insured-Lease Revenue / Certificates of
Participation — 12.2%
     
$ 445     Gloucester County Improvements Authority, (MBIA),
4.75%, 9/1/30
  $ 438,939    
  610     Hudson County Improvements Authority, (FSA),
4.50%, 4/1/35
    574,553    
  265     Lafayette Yard Community Development Corporation,
(Hotel and Conference Center), (FGIC), 5.00%, 4/1/35
    261,521    
  1,250     Middlesex County, (MBIA), 5.00%, 8/1/31     1,251,050    
  1,000     New Jersey Economic Development Authority,
(School Facilities), (AMBAC), (FSA), 5.00%, 9/1/37
    1,008,930    

 

See notes to financial statements
26



Eaton Vance Insured New Jersey Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
  Security   Value  
Insured-Lease Revenue / Certificates of
Participation (continued)
     
$ 795     Puerto Rico Public Buildings Authority, (CIFG),
5.25%, 7/1/36
  $ 760,020    
            $ 4,295,013    
Insured-Pooled Loans — 8.1%      
$ 2,850     Puerto Rico Municipal Finance Agency, (FSA),
5.00%, 8/1/27(1)
  $ 2,859,719    
            $ 2,859,719    
Insured-Public Education — 7.3%      
$ 725     New Jersey Educational Facilities Authority, (Montclair State
University), (MBIA), 3.75%, 7/1/24
  $ 633,991    
  1,990     University of New Jersey Medicine and Dentistry, (AMBAC),
5.00%, 4/15/32
    1,951,752    
            $ 2,585,743    
Insured-Sewer Revenue — 2.0%      
$ 2,000     Rahway Valley Sewerage Authority, (MBIA),
0.00%, 9/1/27
  $ 700,200    
            $ 700,200    
Insured-Special Tax Revenue — 7.3%      
$ 2,390     New Jersey Economic Development Authority, (Motor Vehicle
Surcharges), (XLCA), 0.00%, 7/1/26
  $ 861,499    
  1,120     New Jersey Economic Development Authority, (Motor Vehicle
Surcharges), (XLCA), 0.00%, 7/1/27
    378,918    
  8,940     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
    589,057    
  1,520     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    182,506    
  3,015     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/45
    341,238    
  1,900     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/46
    202,540    
            $ 2,555,758    
Insured-Transportation — 29.5%      
$ 2,265     Delaware River Joint Toll Bridge Commission, (MBIA),
5.00%, 7/1/35
  $ 2,266,495    
  490     Morristown Parking Authority, (MBIA), 4.50%, 8/1/37     449,663    
  2,000     New Jersey Transportation Trust Fund Authority, (Transportation
System), (AMBAC), 4.75%, 12/15/37
    1,944,020    
  310     New Jersey Transportation Trust Fund Authority, (Transportation
System), (AMBAC), 5.00%, 12/15/25
    318,376    

 

Principal Amount
(000's omitted)
  Security   Value  
Insured-Transportation (continued)      
$ 3,875     Port Authority of New York and New Jersey, (FSA),
5.00%, 11/1/27(1)
  $ 3,909,404    
  1,250     Port Authority of New York and New Jersey, (FSA),
5.00%, 8/15/33
    1,262,975    
  270     Puerto Rico Highway and Transportation Authority, (MBIA),
5.00%, 7/1/33
    267,683    
            $ 10,418,616    
Insured-Water and Sewer — 7.7%      
$ 4,500     Middlesex County Improvements Authority, (Perth Amboy),
(AMBAC), 0.00%, 9/1/24
  $ 1,903,545    
  1,320     Passaic Valley Sewerage Commissioners, (FGIC),
2.50%, 12/1/32
    828,300    
            $ 2,731,845    
Senior Living / Life Care — 1.7%      
$ 600     New Jersey Economic Development Authority, (Fellowship
Village), 5.50%, 1/1/25
  $ 580,818    
            $ 580,818    
Special Tax Revenue — 1.3%      
$ 500     New Jersey Economic Development Authority,
(Cigarette Tax), 5.50%, 6/15/31
  $ 465,305    
            $ 465,305    
Transportation — 5.2%      
$ 1,825     South Jersey Port Authority, (Marine Terminal),
5.10%, 1/1/33
  $ 1,815,200    
            $ 1,815,200    
Total Tax-Exempt Investments — 177.2%
(identified cost $63,855,788)
  $ 62,530,071    
Other Assets, Less Liabilities — (13.4)%   $ (4,737,768 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (63.8)%
  $ (22,500,000 )  
Net Assets Applicable to
Common Shares — 100.0%
  $ 35,292,303    

 

See notes to financial statements
27



Eaton Vance Insured New Jersey Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

CIFG - CIFG Assurance North America, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2008, 86.4% 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 1.2% to 26.2% of total investments.

(1)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

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

(3)  When-issued security.

See notes to financial statements
28




Eaton Vance Insured New York Municipal Bond Fund II as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited)


Tax-Exempt Investments — 170.5%
     
Principal Amount
(000's omitted)
 
Security
 
Value
 
General Obligations — 6.4%      
$ 500     New York City, 5.25%, 8/15/26   $ 509,725    
  1,650     New York City, 5.25%, 1/15/28     1,674,255    
            $ 2,183,980    
Hospital — 2.2%      
$ 750     Suffolk County Industrial Development Agency,
(Huntington Hospital), 5.875%, 11/1/32
  $ 753,840    
            $ 753,840    
Industrial Development Revenue — 3.7%      
$ 1,000     Liberty Development Corp.,
(Goldman Sachs Group, Inc.), 5.25%, 10/1/35(1)
  $ 1,013,160    
  240     Liberty Development Corp.,
(Goldman Sachs Group, Inc.), 5.50%, 10/1/37
    251,921    
            $ 1,265,081    
Insured-Electric Utilities — 9.1%      
$ 2,020     Long Island Power Authority, (AMBAC),
5.00%, 9/1/34
  $ 2,014,041    
  1,195     New York Power Authority, (MBIA),
4.50%, 11/15/47
    1,080,567    
            $ 3,094,608    
Insured-Escrowed / Prerefunded — 4.8%      
$ 1,500     Puerto Rico, (FGIC), Prerefunded to 7/1/12,
5.00%, 7/1/32(1)
  $ 1,627,225    
            $ 1,627,225    
Insured-General Obligations — 6.6%      
$ 2,245     New York Dormitory Authority,
(School Districts Financing Program), (MBIA),
5.00%, 10/1/30
  $ 2,252,161    
            $ 2,252,161    
Insured-Hospital — 1.1%      
$ 360     New York Dormitory Authority,
(Health Quest Systems), (AGC), 5.125%, 7/1/37
  $ 360,364    
            $ 360,364    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Housing — 2.9%      
$ 1,000     New York City Housing Corp., (MBIA),
4.95%, 11/1/33
  $ 979,650    
            $ 979,650    
Insured-Lease Revenue / Certificates of
Participation — 12.6%
     
$ 635     Hudson Yards Infrastructure Corp., (FGIC),
5.00%, 2/15/47
  $ 614,166    
  3,195     Hudson Yards Infrastructure Corp., (MBIA),
4.50%, 2/15/47
    2,888,408    
  795     Puerto Rico Public Buildings Authority, (CIFG),
5.25%, 7/1/36
    760,020    
            $ 4,262,594    
Insured-Other Revenue — 19.3%      
$ 1,930     New York City Cultural Resource Trust, (American Museum
of Natural History), (MBIA), 5.00%, 7/1/44
  $ 1,913,865    
  2,000     New York City Cultural Resource Trust, (Museum of
Modern Art), (AMBAC), 5.125%, 7/1/31
    2,002,480    
  545     New York City Industrial Development Agency, (Queens
Baseball Stadium), (AMBAC), 4.75%, 1/1/42
    510,649    
  390     New York City Industrial Development Agency,
(Queens Baseball Stadium), (AMBAC), 5.00%, 1/1/39
    383,947    
  1,825     New York City Industrial Development Agency,
(Yankee Stadium), (MBIA), 4.75%, 3/1/46
    1,709,258    
            $ 6,520,199    
Insured-Private Education — 25.3%      
$ 1,000     New York City Industrial Development Agency,
(New York University), (AMBAC), 5.00%, 7/1/31
  $ 1,001,110    
  1,440     New York Dormitory Authority, (Barnard College),
(FGIC), 5.00%, 7/1/24
    1,454,774    
  2,500     New York Dormitory Authority, (Brooklyn Law School),
(XLCA), 5.125%, 7/1/30
    2,498,150    
  605     New York Dormitory Authority, (Fordham University),
(FGIC), 5.00%, 7/1/32
    597,419    
  1,000     New York Dormitory Authority, (New York University),
(AMBAC), 5.00%, 7/1/31
    1,001,110    
  500     New York Dormitory Authority, (Skidmore College),
(FGIC), 5.00%, 7/1/33
    497,120    
  110     New York Dormitory Authority, (University of Rochester),
(MBIA), 5.00%, 7/1/27
    110,340    
  5,425     Oneida County Industrial Development Agency,
(Hamilton College), (MBIA), 0.00%, 7/1/32
    1,394,225    
            $ 8,554,248    

 

See notes to financial statements
29



Eaton Vance Insured New York Municipal Bond Fund II as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Public Education — 4.5%      
$ 1,500     New York Dormitory Authority, (City University),
(AMBAC), 5.25%, 7/1/30
  $ 1,517,025    
            $ 1,517,025    
Insured-Special Tax Revenue — 23.5%      
$ 700     New York Convention Center Development Corp.,
Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45
  $ 663,733    
  1,900     New York Convention Center Development Corp.,
Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44
    1,870,379    
  1,700     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/35
    332,809    
  9,835     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
    648,028    
  20,540     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/44
    2,466,238    
  3,350     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/45
    379,153    
  2,105     Puerto Rico Sales Tax Financing, (MBIA),
0.00%, 8/1/46
    224,393    
  1,380     Sales Tax Asset Receivables Corp., (AMBAC),
5.00%, 10/15/29
    1,390,681    
            $ 7,975,414    
Insured-Transportation — 25.4%      
$ 2,000     Metropolitan Transportation Authority, (FGIC),
5.25%, 11/15/31
  $ 2,007,200    
  890     Port Authority of New York and New Jersey, (FSA),
5.00%, 8/15/24
    923,678    
  2,500     Port Authority of New York and New Jersey, (FSA),
5.00%, 11/1/27(1)
    2,522,269    
  600     Port Authority of New York and New Jersey, (FSA),
5.00%, 8/15/33
    606,228    
  550     Puerto Rico Highway and Transportation Authority,
(MBIA), 5.00%, 7/1/33
    545,281    
  2,000     Triborough Bridge and Tunnel Authority, (MBIA),
5.00%, 11/15/32
    2,004,800    
            $ 8,609,456    
Insured-Water and Sewer — 8.3%      
$ 2,835     New York City Municipal Water Finance Authority, (Water
and Sewer System), (AMBAC), 5.00%, 6/15/38(2)
  $ 2,802,114    
            $ 2,802,114    
Insured-Water Revenue — 2.6%      
$ 920     Suffolk County Water Authority, (MBIA),
4.50%, 6/1/32
  $ 874,405    
            $ 874,405    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Other Revenue — 4.6%      
$ 1,500     Puerto Rico Infrastructure Financing Authority,
5.50%, 10/1/32
  $ 1,553,490    
            $ 1,553,490    
Private Education — 5.8%      
$ 1,000     Dutchess County Industrial Development Agency,
(Marist College), 5.00%, 7/1/22
  $ 1,014,210    
  1,000     New York City Industrial Development Agency,
(St. Francis College), 5.00%, 10/1/34
    945,320    
            $ 1,959,530    
Water Revenue — 1.8%      
$ 650     New York State Environmental Facilities Corp., Clean
Water, (Municipal Water Finance), 4.50%, 6/15/36
  $ 604,812    
            $ 604,812    
Total Tax-Exempt Investments — 170.5%
(identified cost $60,223,371)
  $ 57,750,196    
Other Assets, Less Liabilities — (4.1)%   $ (1,373,967 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (66.4)%
  $ (22,511,942 )  
Net Assets Applicable to Common
Shares — 100.0%
  $ 33,864,287    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

CIFG - CIFG Assurance 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, 2008, 85.6% 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 32.6% of total investments.

(1)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

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

See notes to financial statements
30



Eaton Vance Insured Ohio Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited)


Tax-Exempt Investments — 168.6%
     
Principal Amount
(000's omitted)
 
Security
 
Value
 
Escrowed / Prerefunded — 2.6%      
$ 790     Puerto Rico Electric Power Authority,
Prerefunded to 7/1/13, 5.125%, 7/1/29
  $ 872,768    
          $ 872,768    
Hospital — 6.7%      
$ 900     Cuyahoga County, (Cleveland Clinic Health System),
5.50%, 1/1/29
  $ 910,125    
  500     Miami County, (Upper Valley Medical Center),
5.25%, 5/15/26
    480,755    
  1,000     Ohio Higher Educational Facilities Authority, (University
Hospital Health Systems, Inc.), 4.75%, 1/15/46
    824,080    
          $ 2,214,960    
Insured-Electric Utilities — 16.8%      
$ 4,000     Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/25
  $ 1,554,760    
  1,775     Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/26
    645,567    
  5,000     Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/27
    1,702,750    
  1,775     Ohio Water Development Authority, (Dayton Power & Light),
(FGIC), 4.80%, 1/1/34
    1,639,248    
          $ 5,542,325    
Insured-Escrowed / Prerefunded — 11.2%      
$ 2,250     Springboro Community School District, (MBIA),
Prerefunded to 6/1/14, 5.00%, 12/1/32
  $ 2,485,260    
  1,100     Trotwood-Madison City School District, (School Improvements),
(FGIC), Prerefunded to 12/1/12, 5.00%, 12/1/30
    1,201,464    
          $ 3,686,724    
Insured-General Obligations — 40.0%      
$ 1,500     Ashtabula School District, (Construction Improvements),
(FGIC), 5.00%, 12/1/30(1)
  $ 1,481,865    
  400     Bowling Green, City School District, (FSA), 5.00%, 12/1/34     400,848    
  1,000     Cleveland Municipal School District, (FSA), 5.00%, 12/1/27     1,011,030    
  810     Cleveland, (FGIC), 4.75%, 11/15/25     791,986    
  655     Cleveland, (FGIC), 4.75%, 11/15/27     630,680    
  2,075     Cuyahoga Community College District, (AMBAC),
5.00%, 12/1/32
    2,063,214    
  430     Olentangy School District, (FSA), 4.50%, 12/1/32     397,397    
  500     Olmsted Falls City School District, (XLCA), 5.00%, 12/1/35     488,250    
  560     Pickerington Local School District, (MBIA), 4.25%, 12/1/34     489,524    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-General Obligations (continued)      
$ 2,400     Plain School District, (FGIC), 0.00%, 12/1/27   $ 843,696    
  750     St. Mary's, School District, (FSA), 5.00%, 12/1/35     750,540    
  500     Tecumseh School District, (FGIC), 4.75%, 12/1/31     479,390    
  420     Trotwood-Madison City School District, (School Improvements),
(FSA), 4.50%, 12/1/30
    391,146    
  2,000     Wapakoneta City School District, (FSA), 4.75%, 12/1/35(2)     1,942,880    
  1,000     Zanesville School District, (School Improvements), (MBIA),
5.05%, 12/1/29
    1,004,990    
          $ 13,167,436    
Insured-Hospital — 10.8%      
$ 980     Hamilton County, (Cincinnati Children's Hospital), (FGIC),
5.00%, 5/15/32
  $ 937,605    
  1,500     Hamilton County, (Cincinnati Children's Hospital), (FGIC),
5.125%, 5/15/28
    1,473,120    
  1,250     Ohio Higher Educational Facility Commission, (University
Hospital Health Systems, Inc.), (AMBAC), 4.75%, 1/15/46
    1,140,050    
          $ 3,550,775    
Insured-Lease Revenue / Certificates of
Participation — 6.0%
     
$ 795     Puerto Rico Public Buildings Authority, (CIFG),
5.25%, 7/1/36
  $ 760,020    
  235     Puerto Rico Public Buildings Authority, Government Facilities
Revenue, (XLCA), 5.25%, 7/1/36
    224,660    
  1,000     Summit County, (Civic Theater Project), (AMBAC),
5.00%, 12/1/33
    991,360    
          $ 1,976,040    
Insured-Pooled Loans — 2.6%      
$ 850     Puerto Rico Municipal Finance Agency, (FSA),
5.00%, 8/1/27(3)
  $ 852,864    
          $ 852,864    
Insured-Public Education — 21.9%      
$ 3,000     Cincinnati Technical and Community College, (AMBAC),
5.00%, 10/1/28
  $ 2,973,420    
  1,170     Ohio University, (FSA), 5.25%, 12/1/23     1,234,514    
  1,000     University of Akron, (FSA), 5.00%, 1/1/38     999,920    
  1,000     University of Cincinnati, (AMBAC), 5.00%, 6/1/31     1,000,340    
  1,000     University of Cincinnati, (MBIA), 5.00%, 6/1/29     1,002,970    
            $ 7,211,164    

 

See notes to financial statements
31



Eaton Vance Insured Ohio Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Sewer Revenue — 4.3%      
$ 835     Marysville Wastewater Treatment System, (XLCA),
4.75%, 12/1/46
  $ 742,816    
  750     Marysville Wastewater Treatment System, (XLCA),
4.75%, 12/1/47
    665,910    
          $ 1,408,726    
Insured-Special Tax Revenue — 20.2%      
$ 4,315     Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/22   $ 2,023,606    
  5,000     Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/23     2,203,200    
  1,000     Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/24     412,120    
  8,685     Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54     572,255    
  1,480     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44     177,704    
  2,935     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45     332,183    
  1,845     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46     196,677    
  750     Trumbull County, (FSA), 5.00%, 12/1/37     749,947    
          $ 6,667,692    
Insured-Transportation — 12.3%      
$ 3,580     Cleveland Airport System, (FSA), 5.00%, 1/1/31(4)   $ 3,527,088    
  500     Puerto Rico Highway and Transportation Authority, (AGC),
(CIFG), 5.25%, 7/1/41(3)
    515,178    
          $ 4,042,266    
Pooled Loans — 7.6%      
$ 1,450     Cuyahoga County Port Authority, (Garfield Heights),
5.25%, 5/15/23
  $ 1,353,024    
  1,140     Rickenbacker Port Authority, Oasbo Expanded Asset Pool Loan,
5.375%, 1/1/32(3)
    1,157,575    
          $ 2,510,599    
Private Education — 5.6%      
$ 850     Ohio Higher Educational Facilities Authority, (John Carroll
University), 5.25%, 11/15/33
  $ 848,759    
  1,000     Ohio Higher Educational Facilities Authority, (Oberlin
College), 5.00%, 10/1/33
    1,000,000    
          $ 1,848,759    
Total Tax-Exempt Investments — 168.6%
(identified cost $57,049,836)
  $ 55,553,098    
Other Assets, Less Liabilities — (2.2)%   $ (737,262 )  

 

Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (66.4)%
  $ (21,876,934 )  
Net Assets Applicable to Common
Shares — 100.0%
  $ 32,938,902    

 

AGC -Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

CIFG - CIFG Assurance 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, 2008, 86.6% 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 0.9% to 24.1% of total investments.

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

(2)  When-issued security.

(3)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

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

See notes to financial statements
32



Eaton Vance Insured Pennsylvania Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 184.5%      
Principal Amount
(000's omitted)
 
Security
 
Value
 
Escrowed / Prerefunded — 2.1%      
$ 750     Lancaster County Hospital Authority, (Lancaster General
Hospital), Prerefunded to 9/15/13, 5.50%, 3/15/26
  $ 831,000    
            $ 831,000    
Hospital — 10.1%      
$ 850     Lancaster County Hospital Authority, (Lancaster General
Hospital), 4.50%, 3/15/36
  $ 742,024    
  350     Lebanon County Health Facility Authority, (Good Samaritan
Hospital), 6.00%, 11/15/35
    343,948    
  1,500     Lehigh County General Purpose Authority, (Lehigh Valley
Health Network), 5.25%, 7/1/32
    1,467,660    
  750     Pennsylvania Higher Educational Facilities Authority, (UPMC
Health System), 6.00%, 1/15/31
    792,412    
  875     Philadelphia Hospitals and Higher Education Facilities Authority,
(Children's Hospital), 4.50%, 7/1/37
    777,149    
          $ 4,123,193    
Insured-Electric Utilities — 7.9%      
$ 3,345     Lehigh County Industrial Development Authority,
(PPL Electric Utilities Corp.), (FGIC), 4.75%, 2/15/27
  $ 3,215,749    
          $ 3,215,749    
Insured-Escrowed / Prerefunded — 33.9%      
$ 2,500     Pennsylvania Higher Educational Facilities Authority,
(Temple University), (MBIA), Prerefunded to 4/1/08,
5.00%, 4/1/29
  $ 2,525,000    
  1,750     Philadelphia, (FSA), Prerefunded to 3/15/11,
5.00%, 9/15/31(1)
    1,870,510    
  1,700     Philadelphia Authority for Industrial Development, Lease
Revenue, (FSA), Prerefunded to 10/1/11,
5.25%, 10/1/30
    1,862,622    
  1,750     Pittsburgh Water and Sewer Authority, (AMBAC),
Prerefunded to 6/1/12, 5.125%, 12/1/27(1)
    1,903,566    
  1,200     Puerto Rico, (FGIC), Prerefunded to 7/1/12,
5.00%, 7/1/32(1)
    1,301,780    
  2,450     Puerto Rico Highway and Transportation Authority, (MBIA),
Prerefunded to 7/1/16, 5.00%, 7/1/36(1)
    2,717,173    
  270     Southcentral General Authority, (MBIA), Escrowed to
Maturity, 5.25%, 5/15/31
    272,870    
  1,230     Southcentral General Authority, (MBIA),
Prerefunded to 5/15/11, 5.25%, 5/15/31
    1,337,872    
            $ 13,791,393    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-General Obligations — 26.0%      
$ 1,000     Alleghany County Gateway School District, (FGIC),
5.00%, 10/15/32
  $ 983,320    
  1,650     Armstrong County, (MBIA), 5.40%, 6/1/31     1,666,583    
  500     Canon McMillan School District, (FGIC), 5.25%, 12/1/34     502,015    
  1,000     Central Greene School District, (FSA), 5.00%, 2/15/35     1,002,260    
  1,000     Erie School District, (AMBAC), 0.00%, 9/1/30     288,050    
  1,000     Hollidaysburg School District, (FSA), 4.75%, 3/15/30     974,690    
  2,555     McKeesport School District, (MBIA), 0.00%, 10/1/21(2)     1,310,000    
  1,500     Norwin School District, (FSA), 3.25%, 4/1/27     1,153,230    
  1,000     Pine-Richland School District, (FSA), 5.00%, 9/1/29     1,001,820    
  2,550     Shaler Area School District, (XLCA), 0.00%, 9/1/33     575,841    
  1,060     Upper Clair Township School District, (FSA),
Prerefunded to 7/15/12, 5.00%, 7/15/32
    1,148,404    
          $ 10,606,213    
Insured-Hospital — 2.5%      
$ 1,000     Washington County Hospital Authority, (Washington Hospital),
(AMBAC), 5.125%, 7/1/28
  $ 999,290    
          $ 999,290    
Insured-Lease Revenue / Certificates of
Participation — 2.9%
     
$ 1,215     Philadelphia Authority for Industrial Development,
(One Benjamin Franklin), (FSA), 4.75%, 2/15/27
  $ 1,173,787    
          $ 1,173,787    
Insured-Private Education — 16.9%      
$ 1,000     Chester County Industrial Development Authority,
Educational Facility, (Westtown School), (AMBAC),
5.00%, 1/1/31
  $ 1,000,260    
  3,315     Delaware County, (Villanova University), (MBIA),
5.00%, 12/1/28
    3,302,072    
  1,000     Pennsylvania Higher Educational Facilities Authority,
(Drexel University), (MBIA), 5.00%, 5/1/37
    990,870    
  1,755     Pennsylvania Higher Educational Facilities Authority,
(Temple University), (MBIA), 4.50%, 4/1/36
    1,611,160    
          $ 6,904,362    
Insured-Public Education — 13.8%      
$ 500     Lycoming County Authority, (Pennsylvania College of
Technology), (AGC), 5.50%, 10/1/37
  $ 519,485    
  2,400     Lycoming County Authority, (Pennsylvania College of
Technology), (AMBAC), 5.25%, 5/1/32
    2,405,136    
  1,000     Pennsylvania Higher Educational Facilities Authority, (Clarion
University Foundation), (XLCA), 5.00%, 7/1/33
    942,510    

 

See notes to financial statements
33



Eaton Vance Insured Pennsylvania Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Public Education (continued)      
$ 500     State Public School Building Authority, (Delaware County
Community College), (FSA), 5.00%, 10/1/27
  $ 507,870    
  375     State Public School Building Authority, (Delaware County
Community College), (FSA), 5.00%, 10/1/29
    377,348    
  875     State Public School Building Authority, (Delaware County
Community College), (FSA), 5.00%, 10/1/32
    877,048    
          $ 5,629,397    
Insured-Sewer Revenue — 11.1%      
$ 1,000     Ambridge Borough Municipal Authority, Sewer Revenue,
(FSA), 4.60%, 10/15/41
  $ 920,500    
  1,555     Erie Sewer Authority, Series A, (AMBAC), 0.00%, 12/1/25     595,238    
  2,155     Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/25     824,912    
  1,920     Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26     688,531    
  1,500     Pennsylvania University Sewer Authority, (MBIA),
5.00%, 11/1/26
    1,502,370    
          $ 4,531,551    
Insured-Special Tax Revenue — 16.8%      
$ 4,350     Pittsburgh and Allegheny County Public Auditorium Authority,
(AMBAC), 5.00%, 2/1/29
  $ 4,316,331    
  25,410     Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54     1,674,265    
  1,775     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44     213,124    
  3,520     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45     398,394    
  2,220     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46     236,652    
          $ 6,838,766    
Insured-Transportation — 18.1%      
$ 2,000     Allegheny County Port Authority, (FGIC), 5.00%, 3/1/25   $ 2,012,620    
  1,000     Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29     985,920    
  2,075     Pennsylvania Turnpike Commission, (FSA), 5.25%, 7/15/30     2,201,783    
  2,100     Puerto Rico Highway and Transportation Authority, (AGC),
(CIFG), 5.25%, 7/1/41(1)
    2,163,746    
          $ 7,364,069    
Insured-Utilities — 7.2%      
$ 3,000     Philadelphia Gas Works Revenue, (AMBAC),
5.00%, 10/1/37
  $ 2,945,520    
          $ 2,945,520    
Insured-Water and Sewer — 0.4%      
$ 150     Saxonburg Water and Sewer Authority, (AGC),
5.00%, 3/1/35
  $ 148,896    
          $ 148,896    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Water Revenue — 3.3%      
$ 1,530     Philadelphia Water and Wastewater, (AMBAC),
4.25%, 11/1/31
  $ 1,342,789    
          $ 1,342,789    
Private Education — 7.0%      
$ 3,000     Pennsylvania Higher Educational Facilities Authority,
(University of Pennsylvania), 4.75%, 7/15/35
  $ 2,862,990    
          $ 2,862,990    
Senior Living / Life Care — 1.1%      
$ 200     Montgomery County Industrial Development Authority,
(Foulkeways at Gwynedd), 5.00%, 12/1/24
  $ 184,340    
  300     Montgomery County Industrial Development Authority,
(Foulkeways at Gwynedd), 5.00%, 12/1/30
    258,909    
          $ 443,249    
Transportation — 3.4%      
$ 1,400     Delaware River Joint Toll Bridge Commission,
5.00%, 7/1/28
  $ 1,398,124    
            $ 1,398,124    
Total Tax-Exempt Investments — 184.5%
(identified cost $76,312,310)
  $ 75,150,338    
Other Assets, Less Liabilities — (20.6)%   $ (8,403,389 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (63.9)%
  $ (26,009,199 )  
Net Assets Applicable to Common
Shares — 100.0%
  $ 40,737,750    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

CIFG - CIFG Assurance 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, 2008, 87.1% of total investments are backed by bond insurance of various

See notes to financial statements
34



Eaton Vance Insured Pennsylvania Municipal Bond Fund as of March 31, 2008

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.0% to 25.3% of total investments.

(1)  Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

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

See notes to financial statements
35




Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS (Unaudited)

Statements of Assets and Liabilities

As of March 31, 2008

    Insured
Municipal Fund II
  Insured
California Fund II
  Insured Florida
Plus Fund
 
Assets  
Investments —  
Identified cost   $ 253,166,841     $ 92,560,944     $ 63,408,573    
Unrealized depreciation     (7,491,083 )     (3,753,803 )     (1,077,987 )  
Investments, at value   $ 245,675,758     $ 88,807,141     $ 62,330,586    
Cash   $ 2,203,294     $ 1,485,671     $ 2,288,008    
Receivable for investments sold     2,201,559       24,719       1,657,488    
Receivable from the transfer agent           8,592          
Interest receivable     2,744,632       886,230       876,561    
Prepaid expenses     7,011       4,518       4,518    
Total assets   $ 252,832,254     $ 91,216,871     $ 67,157,161    
Liabilities  
Payable for floating rate notes issued   $ 28,025,000     $ 6,715,000     $ 6,970,000    
Interest expense and fees payable     170,743       51,070       53,884    
Payable for daily variation margin on open financial futures contracts     116,346       17,797       15,938    
Payable for open interest rate swap contracts     912,129       394,180       244,222    
Payable for when-issued securities     5,736,926             3,590,281    
Payable to affiliate for Trustees' fees     679       370       110    
Payable to affiliate for investment adviser fee     82,318       31,720       21,213    
Accrued expenses     108,286       51,929       42,506    
Total liabilities   $ 35,152,427     $ 7,262,066     $ 10,938,154    
Auction preferred shares at liquidation value plus cumulative unpaid dividends   $ 87,523,217     $ 33,764,927     $ 22,500,000    
Net assets applicable to common shares   $ 130,156,610     $ 50,189,878     $ 33,719,007    
Sources of Net Assets  
Common Shares, $0.01 par value, unlimited number of shares authorized   $ 99,303     $ 38,633     $ 25,755    
Additional paid-in capital     140,820,266       54,762,269       36,515,052    
Accumulated net realized loss (computed on the basis of identified cost)     (2,306,478 )     (414,058 )     (1,287,059 )  
Accumulated undistributed net investment income     1,008,748       214,541       42,210    
Net unrealized depreciation (computed on the basis of identified cost)     (9,465,229 )     (4,411,507 )     (1,576,951 )  
Net assets applicable to common shares   $ 130,156,610     $ 50,189,878     $ 33,719,007    
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      3,500       1,350       900    
Common Shares Outstanding  
      9,930,306       3,863,336       2,575,502    
Net Asset Value Per Common Share  
Net assets applicable to common shares ÷ common shares issued and outstanding   $ 13.11     $ 12.99     $ 13.09    

 

See notes to financial statements
36



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Assets and Liabilities

As of March 31, 2008

    Insured
Massachusetts Fund
  Insured
Michigan Fund
  Insured
New Jersey Fund
 
Assets  
Investments —  
Identified cost   $ 44,209,127     $ 35,483,255     $ 63,855,788    
Unrealized appreciation (depreciation)     (284,203 )     354,722       (1,325,717 )  
Investments, at value   $ 43,924,924     $ 35,837,977     $ 62,530,071    
Cash   $     $ 675,578     $ 2,213,032    
Receivable for investments sold                 2,004,611    
Receivable from the transfer agent     3,865                
Interest receivable     551,474       510,381       651,122    
Prepaid expenses     4,517       4,517       4,531    
Total assets   $ 44,484,780     $ 37,028,453     $ 67,403,367    
Liabilities  
Payable for floating rate notes issued   $ 4,765,000     $ 2,180,000     $ 7,580,000    
Interest expense and fees payable     27,031       15,281       63,719    
Payable for daily variation margin on open financial futures contracts           5,313          
Payable for open interest rate swap contracts     181,335       104,750       265,189    
Payable for when-issued securities                 1,641,861    
Due to custodian     29,807                
Payable to affiliate for Trustees' fees     111       11       27    
Payable to affiliate for investment adviser fee     14,948       13,148       21,857    
Accrued expenses     45,163       36,150       38,411    
Total liabilities   $ 5,063,395     $ 2,354,653     $ 9,611,064    
Auction preferred shares at liquidation value plus cumulative unpaid dividends   $ 15,505,484     $ 13,507,165     $ 22,500,000    
Net assets applicable to common shares   $ 23,915,901     $ 21,166,635     $ 35,292,303    
Sources of Net Assets  
Common Shares, $0.01 par value, unlimited number of shares authorized   $ 17,554     $ 15,118     $ 25,671    
Additional paid-in capital     24,875,000       21,413,714       36,390,306    
Accumulated net realized gain (loss) (computed on the basis of identified cost)     (541,281 )     (565,477 )     238,536    
Accumulated undistributed net investment income     30,166       102,206       228,696    
Net unrealized appreciation (depreciation) (computed on the basis of identified cost)     (465,538 )     201,074       (1,590,906 )  
Net assets applicable to common shares   $ 23,915,901     $ 21,166,635     $ 35,292,303    
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      620       540       900    
Common Shares Outstanding  
      1,755,423       1,511,845       2,567,057    
Net Asset Value Per Common Share  
Net assets applicable to common shares ÷ common shares issued and outstanding   $ 13.62     $ 14.00     $ 13.75    

 

See notes to financial statements
37



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Assets and Liabilities

As of March 31, 2008

    Insured
New York Fund II
  Insured
Ohio Fund
  Insured
Pennsylvania Fund
 
Assets  
Investments —  
Identified cost   $ 60,223,371     $ 57,049,836     $ 76,312,310    
Unrealized depreciation     (2,473,175 )     (1,496,738 )     (1,161,972 )  
Investments, at value   $ 57,750,196     $ 55,553,098     $ 75,150,338    
Cash   $ 2,661,095     $ 2,457,780     $ 492,359    
Receivable for investments sold           69,953          
Receivable from the transfer agent     3,114                
Interest receivable     782,356       681,179       986,266    
Prepaid expenses     4,517       4,517       4,531    
Total assets   $ 61,201,278     $ 58,766,527     $ 76,633,494    
Liabilities  
Payable for floating rate notes issued   $ 3,465,000     $ 1,705,000     $ 6,345,000    
Interest expense and fees payable     32,012       10,653       41,837    
Payable for investments purchased     1,000,550             3,213,196    
Payable for daily variation margin on open financial futures contracts     16,203       26,297       27,891    
Payable for open interest rate swap contracts     250,056       206,618       186,231    
Payable for when-issued securities           1,940,490          
Payable to affiliate for Trustees' fees     27       19       106    
Payable to affiliate for investment adviser fee     21,314       20,700       25,208    
Accrued expenses     39,887       40,914       47,076    
Total liabilities   $ 4,825,049     $ 3,950,691     $ 9,886,545    
Auction preferred shares at liquidation value plus cumulative unpaid dividends   $ 22,511,942     $ 21,876,934     $ 26,009,199    
Net assets applicable to common shares   $ 33,864,287     $ 32,938,902     $ 40,737,750    
Sources of Net Assets  
Common Shares, $0.01 par value, unlimited number of shares authorized   $ 25,560     $ 25,134     $ 29,436    
Additional paid-in capital     36,216,411       35,619,073       41,722,636    
Accumulated net realized gain (loss) (computed on the basis of identified cost)     223,103       (673,889 )     508,749    
Accumulated undistributed net investment income     381,431       34,639       238,117    
Net unrealized depreciation (computed on the basis of identified cost)     (2,982,218 )     (2,066,055 )     (1,761,188 )  
Net assets applicable to common shares   $ 33,864,287     $ 32,938,902     $ 40,737,750    
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      900       875       1,040    
Common Shares Outstanding  
      2,555,954       2,513,365       2,943,645    
Net Asset Value Per Common Share  
Net assets applicable to common shares ÷ common shares issued and outstanding   $ 13.25     $ 13.11     $ 13.84    

 

See notes to financial statements
38



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Operations

For the Six Months Ended March 31, 2008

    Insured
Municipal Fund II
  Insured
California Fund II
  Insured Florida
Plus Fund
 
Investment Income  
Interest   $ 6,592,376     $ 2,329,195     $ 1,569,352    
Total investment income   $ 6,592,376     $ 2,329,195     $ 1,569,352    
Expenses  
Investment adviser fee   $ 638,852     $ 244,306     $ 163,204    
Trustees' fees and expenses     6,602       3,806       999    
Legal and accounting services     22,376       19,296       51,051    
Printing and postage     17,247       5,279       4,484    
Custodian fee     67,988       19,270       18,882    
Interest expense and fees     637,731       119,740       86,633    
Transfer and dividend disbursing agent fees     29,781       17,732       15,792    
Preferred shares remarketing agent fee     109,676       42,245       28,742    
Miscellaneous     19,091       20,436       14,164    
Total expenses   $ 1,549,344     $ 492,110     $ 383,951    
Deduct —  
Reduction of custodian fee   $ 17,329     $ 8,727     $ 3,259    
Reduction of investment adviser fee     135,474       51,772       34,545    
Total expense reductions   $ 152,803     $ 60,499     $ 37,804    
Net expenses   $ 1,396,541     $ 431,611     $ 346,147    
Net investment income   $ 5,195,835     $ 1,897,584     $ 1,223,205    
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) —  
Investment transactions (identified cost basis)   $ (104,197 )   $ 181,392     $ (712,341 )  
Financial futures contracts     (720,149 )     (75,325 )     42,600    
Interest rate swap contracts     (1,270,948 )     (475,735 )     (283,918 )  
Net realized loss   $ (2,095,294 )   $ (369,668 )   $ (953,659 )  
Change in unrealized appreciation (depreciation) —  
Investments (identified cost basis)   $ (16,298,787 )   $ (6,233,736 )   $ (2,885,983 )  
Financial futures contracts     (1,122,989 )     (282,736 )     (264,373 )  
Interest rate swap contracts     (950,967 )     (418,411 )     (257,760 )  
Net change in unrealized appreciation (depreciation)   $ (18,372,743 )   $ (6,934,883 )   $ (3,408,116 )  
Net realized and unrealized loss   $ (20,468,037 )   $ (7,304,551 )   $ (4,361,775 )  
Distributions to preferred shareholders  
From net investment income   $ (551,831 )   $ (388,948 )   $ (410,561 )  
From net realized gain     (1,161,353 )     (203,364 )        
Net decrease in net assets from operations   $ (16,985,386 )   $ (5,999,279 )   $ (3,549,131 )  

 

See notes to financial statements
39



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Operations

For the Six Months Ended March 31, 2008

    Insured
Massachusetts Fund
  Insured
Michigan Fund
  Insured
New Jersey Fund
 
Investment Income  
Interest   $ 1,147,538     $ 1,001,306     $ 1,627,213    
Total investment income   $ 1,147,538     $ 1,001,306     $ 1,627,213    
Expenses  
Investment adviser fee   $ 113,693     $ 98,821     $ 167,867    
Trustees' fees and expenses     999       100       916    
Legal and accounting services     17,755       15,281       16,653    
Printing and postage     2,942       1,830       2,013    
Custodian fee     17,400       11,076       25,832    
Interest expense and fees     109,241       94,720       155,417    
Transfer and dividend disbursing agent fees     14,568       12,656       16,381    
Preferred shares remarketing agent fee     19,401       16,922       28,125    
Miscellaneous     12,989       18,320       20,150    
Total expenses   $ 308,988     $ 269,726     $ 433,354    
Deduct —  
Reduction of custodian fee   $ 3,227     $ 483     $ 7,493    
Reduction of investment adviser fee     24,048       20,893       35,558    
Total expense reductions   $ 27,275     $ 21,376     $ 43,051    
Net expenses   $ 281,713     $ 248,350     $ 390,303    
Net investment income   $ 865,825     $ 752,956     $ 1,236,910    
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) —  
Investment transactions (identified cost basis)   $ 5,349     $ (45,970 )   $ 728,722    
Financial futures contracts     (30,173 )     12,156       (50,288 )  
Interest rate swap contracts     (267,106 )     (126,443 )     (393,601 )  
Net realized gain (loss)   $ (291,930 )   $ (160,257 )   $ 284,833    
Change in unrealized appreciation (depreciation) —  
Investments (identified cost basis)   $ (2,095,442 )   $ (1,453,425 )   $ (4,154,477 )  
Financial futures contracts     (6,911 )     (52,301 )     (11,518 )  
Interest rate swap contracts     (192,661 )     (108,594 )     (281,732 )  
Net change in unrealized appreciation (depreciation)   $ (2,295,014 )   $ (1,614,320 )   $ (4,447,727 )  
Net realized and unrealized loss   $ (2,586,944 )   $ (1,774,577 )   $ (4,162,894 )  
Distributions to preferred shareholders  
From net investment income   $ (268,872 )   $ (218,641 )   $ (153,904 )  
From net realized gain                 (291,600 )  
Net decrease in net assets from operations   $ (1,989,991 )   $ (1,240,262 )   $ (3,371,488 )  

 

See notes to financial statements
40



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Operations

For the Six Months Ended March 31, 2008

    Insured
New York Fund II
  Insured
Ohio Fund
  Insured
Pennsylvania Fund
 
Investment Income  
Interest   $ 1,529,944     $ 1,499,398     $ 1,859,319    
Total investment income   $ 1,529,944     $ 1,499,398     $ 1,859,319    
Expenses  
Investment adviser fee   $ 163,912     $ 159,238     $ 191,819    
Trustees' fees and expenses     915       907       915    
Legal and accounting services     18,117       16,653       17,385    
Printing and postage     1,830       4,575       7,320    
Custodian fee     21,444       15,981       22,151    
Interest expense and fees     78,121       80,212       132,766    
Transfer and dividend disbursing agent fees     18,442       16,312       18,413    
Preferred shares remarketing agent fee     28,202       27,419       32,501    
Miscellaneous     15,088       17,042       22,715    
Total expenses   $ 346,071     $ 338,339     $ 445,985    
Deduct —  
Reduction of custodian fee   $ 8,033     $ 3,635     $ 4,896    
Reduction of investment adviser fee     34,730       33,720       40,583    
Total expense reductions   $ 42,763     $ 37,355     $ 45,479    
Net expenses   $ 303,308     $ 300,984     $ 400,506    
Net investment income   $ 1,226,636     $ 1,198,414     $ 1,458,813    
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) —  
Investment transactions (identified cost basis)   $ 534,695     $ (51,518 )   $ 143,152    
Financial futures contracts     38,670       (120,419 )     515,713    
Interest rate swap contracts     (283,918 )     (206,717 )     (169,538 )  
Net realized gain (loss)   $ 289,447     $ (378,654 )   $ 489,327    
Change in unrealized appreciation (depreciation) —  
Investments (identified cost basis)   $ (4,320,613 )   $ (3,715,822 )   $ (3,480,803 )  
Financial futures contracts     (269,003 )     (394,675 )     (403,273 )  
Interest rate swap contracts     (263,950 )     (215,027 )     (244,284 )  
Net change in unrealized appreciation (depreciation)   $ (4,853,566 )   $ (4,325,524 )   $ (4,128,360 )  
Net realized and unrealized loss   $ (4,564,119 )   $ (4,704,178 )   $ (3,639,033 )  
Distributions to preferred shareholders  
From net investment income   $ (278,471 )   $ (396,191 )   $ (266,234 )  
From net realized gain     (125,820 )           (222,716 )  
Net decrease in net assets from operations   $ (3,741,774 )   $ (3,901,955 )   $ (2,669,170 )  

 

See notes to financial statements
41



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Six Months Ended March 31, 2008

Increase (Decrease) in Net Assets   Insured
Municipal Fund II
  Insured
California Fund II
  Insured Florida
Plus Fund
 
From operations —  
Net investment income   $ 5,195,835     $ 1,897,584     $ 1,223,205    
Net realized loss from investment transactions, financial futures contracts
and interest rate swap contracts
    (2,095,294 )     (369,668 )     (953,659 )  
Net change in unrealized appreciation (depreciation) from investments,
financial futures contracts and interest rate swap contracts
    (18,372,743 )     (6,934,883 )     (3,408,116 )  
Distributions to preferred shareholders —  
From net investment income     (551,831 )     (388,948 )     (410,561 )  
From net realized gain     (1,161,353 )     (203,364 )        
Net decrease in net assets from operations   $ (16,985,386 )   $ (5,999,279 )   $ (3,549,131 )  
Distributions to common shareholders —  
From net investment income   $ (3,675,738 )   $ (1,334,331 )   $ (817,727 )  
From net realized gain     (2,838,123 )     (503,981 )        
Total distributions to common shareholders   $ (6,513,861 )   $ (1,838,312 )   $ (817,727 )  
Capital share transactions  
Reinvestment of distributions to common shareholders   $ 43,710     $ 17,677     $    
Net increase in net assets from capital share transactions   $ 43,710     $ 17,677     $    
Net decrease in net assets   $ (23,455,537 )   $ (7,819,914 )   $ (4,366,858 )  
Net Assets Applicable to Common Shares  
At beginning of period   $ 153,612,147     $ 58,009,792     $ 38,085,865    
At end of period   $ 130,156,610     $ 50,189,878     $ 33,719,007    
Accumulated undistributed net investment income included
in net assets applicable to common shares
 
At end of period   $ 1,008,748     $ 214,541     $ 42,210    

 

See notes to financial statements
42



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Six Months Ended March 31, 2008

Increase (Decrease) in Net Assets   Insured
Massachusetts Fund
  Insured
Michigan Fund
  Insured
New Jersey Fund
 
From operations —  
Net investment income   $ 865,825     $ 752,956     $ 1,236,910    
Net realized gain (loss) from investment transactions, financial futures contracts
and interest rate swap contracts
    (291,930 )     (160,257 )     284,833    
Net change in unrealized appreciation (depreciation) from investments,
financial futures contracts and interest rate swap contracts
    (2,295,014 )     (1,614,320 )     (4,447,727 )  
Distributions to preferred shareholders —  
From net investment income     (268,872 )     (218,641 )     (153,904 )  
From net realized gain                 (291,600 )  
Net decrease in net assets from operations   $ (1,989,991 )   $ (1,240,262 )   $ (3,371,488 )  
Distributions to common shareholders —  
From net investment income   $ (586,061 )   $ (504,950 )   $ (898,118 )  
From net realized gain                 (724,973 )  
Total distributions to common shareholders   $ (586,061 )   $ (504,950 )   $ (1,623,091 )  
Capital share transactions  
Reinvestment of distributions to common shareholders   $ 15,794     $     $ 24,437    
Net increase in net assets from capital share transactions   $ 15,794     $     $ 24,437    
Net decrease in net assets   $ (2,560,258 )   $ (1,745,212 )   $ (4,970,142 )  
Net Assets Applicable to Common Shares  
At beginning of period   $ 26,476,159     $ 22,911,847     $ 40,262,445    
At end of period   $ 23,915,901     $ 21,166,635     $ 35,292,303    
Accumulated undistributed net investment income included
in net assets applicable to common shares
 
At end of period   $ 30,166     $ 102,206     $ 228,696    

 

See notes to financial statements
43



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Six Months Ended March 31, 2008

Increase (Decrease) in Net Assets   Insured
New York Fund II
  Insured
Ohio Fund
  Insured
Pennsylvania Fund
 
From operations —  
Net investment income   $ 1,226,636     $ 1,198,414     $ 1,458,813    
Net realized gain (loss) from investment transactions, financial futures contracts
and interest rate swap contracts
    289,447       (378,654 )     489,327    
Net change in unrealized appreciation (depreciation) from investments,
financial futures contracts and interest rate swap contracts
    (4,853,566 )     (4,325,524 )     (4,128,360 )  
Distributions to preferred shareholders —  
From net investment income     (278,471 )     (396,191 )     (266,234 )  
From net realized gain     (125,820 )           (222,716 )  
Net decrease in net assets from operations   $ (3,741,774 )   $ (3,901,955 )   $ (2,669,170 )  
Distributions to common shareholders —  
From net investment income   $ (890,549 )   $ (781,534 )   $ (1,015,434 )  
From net realized gain     (459,185 )           (539,189 )  
Total distributions to common shareholders   $ (1,349,734 )   $ (781,534 )   $ (1,554,623 )  
Capital share transactions  
Reinvestment of distributions to common shareholders   $ 8,866     $ 5,474     $ 6,543    
Net increase in net assets from capital share transactions   $ 8,866     $ 5,474     $ 6,543    
Net decrease in net assets   $ (5,082,642 )   $ (4,678,015 )   $ (4,217,250 )  
Net Assets Applicable to Common Shares  
At beginning of period   $ 38,946,929     $ 37,616,917     $ 44,955,000    
At end of period   $ 33,864,287     $ 32,938,902     $ 40,737,750    
Accumulated undistributed net investment income included
in net assets applicable to common shares
 
At end of period   $ 381,431     $ 34,639     $ 238,117    

 

See notes to financial statements
44



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS CONT'D

Statements of Changes in Net Assets

For the Year Ended September 30, 2007

Increase (Decrease) in Net Assets   Insured
Municipal Fund II
  Insured
California Fund II
  Insured Florida
Plus Fund
 
From operations —  
Net investment income   $ 10,398,200     $ 3,787,436     $ 2,518,890    
Net realized gain from investment transactions, financial futures contracts, interest rate swap contracts,
and disposal of investments in violation of restrictions and net increase from  
payments by affiliates
    3,268,176       1,478,049       158,502    
Net change in unrealized appreciation (depreciation) from investments,
financial futures contracts and interest rate swap contracts
    (7,067,317 )     (2,630,581 )     (1,228,867 )  
Distributions to preferred shareholders —  
From net investment income     (3,009,366 )     (1,088,414 )     (797,008 )  
Net increase in net assets from operations   $ 3,589,693     $ 1,546,490     $ 651,517    
Distributions to common shareholders —  
From net investment income   $ (7,466,114 )   $ (2,736,166 )   $ (1,694,472 )  
Total distributions to common shareholders   $ (7,466,114 )   $ (2,736,166 )   $ (1,694,472 )  
Capital share transactions  
Reinvestment of distributions to common shareholders   $ 25,683     $     $    
Net increase in net assets from capital share transactions   $ 25,683     $     $    
Net decrease in net assets   $ (3,850,738 )   $ (1,189,676 )   $ (1,042,955 )  
Net Assets Applicable to Common Shares  
At beginning of year   $ 157,462,885     $ 59,199,468     $ 39,128,820    
At end of year   $ 153,612,147     $ 58,009,792     $ 38,085,865    
Accumulated undistributed net investment income included
in net assets applicable to common shares
 
At end of year   $ 40,482     $ 40,236     $ 47,293    

 

See notes to financial statements
45



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS CONT'D

Statements of Changes in Net Assets

For the Year Ended September 30, 2007

Increase (Decrease) in Net Assets   Insured
Massachusetts Fund
  Insured
Michigan Fund
  Insured
New Jersey Fund
 
From operations —  
Net investment income   $ 1,699,016     $ 1,489,658     $ 2,555,222    
Net realized gain from investment transactions, financial futures contracts, interest rate swap contracts,
and disposal of investments in violation of restrictions and net increase from  
payments by affiliates
    122,669       154,136       1,166,389    
Net change in unrealized appreciation (depreciation) from investments,
financial futures contracts and interest rate swap contracts
    (1,064,726 )     (621,430 )     (1,549,597 )  
Distributions to preferred shareholders —  
From net investment income     (514,151 )     (435,251 )     (732,552 )  
Net increase in net assets from operations   $ 242,808     $ 587,113     $ 1,439,462    
Distributions to common shareholders —  
From net investment income   $ (1,203,685 )   $ (1,009,900 )   $ (1,820,869 )  
Total distributions to common shareholders   $ (1,203,685 )   $ (1,009,900 )   $ (1,820,869 )  
Capital share transactions  
Reinvestment of distributions to common shareholders   $ 17,788     $     $ 24,197    
Net increase in net assets from capital share transactions   $ 17,788     $     $ 24,197    
Net decrease in net assets   $ (943,089 )   $ (422,787 )   $ (357,210 )  
Net Assets Applicable to Common Shares  
At beginning of year   $ 27,419,248     $ 23,334,634     $ 40,619,655    
At end of year   $ 26,476,159     $ 22,911,847     $ 40,262,445    
Accumulated undistributed net investment income included
in net assets applicable to common shares
 
At end of year   $ 19,274     $ 72,841     $ 43,808    

 

See notes to financial statements
46



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS CONT'D

Statements of Changes in Net Assets

For the Year Ended September 30, 2007

Increase (Decrease) in Net Assets   Insured
New York Fund II
  Insured
Ohio Fund
  Insured
Pennsylvania Fund
 
From operations —  
Net investment income   $ 2,476,368     $ 2,428,283     $ 2,929,661    
Net realized gain from investment transactions, financial futures contracts
and interest rate swap contracts
    313,563       187,769       710,389    
Net change in unrealized appreciation (depreciation) from investments,
financial futures contracts and interest rate swap contracts
    (960,870 )     (1,107,087 )     (1,298,960 )  
Distributions to preferred shareholders —  
From net investment income     (534,850 )     (756,723 )     (856,964 )  
From net realized gain     (200,979 )              
Net increase in net assets from operations   $ 1,093,232     $ 752,242     $ 1,484,126    
Distributions to common shareholders —  
From net investment income   $ (1,780,878 )   $ (1,669,755 )   $ (2,045,499 )  
From net realized gain     (634,133 )              
Total distributions to common shareholders   $ (2,415,011 )   $ (1,669,755 )   $ (2,045,499 )  
Capital share transactions  
Reinvestment of distributions to common shareholders   $ 5,574     $ 2,860     $    
Net increase in net assets from capital share transactions   $ 5,574     $ 2,860     $    
Net decrease in net assets   $ (1,316,205 )   $ (914,653 )   $ (561,373 )  
Net Assets Applicable to Common Shares  
At beginning of year   $ 40,263,134     $ 38,531,570     $ 45,516,373    
At end of year   $ 38,946,929     $ 37,616,917     $ 44,955,000    
Accumulated undistributed net investment income included
in net assets applicable to common shares
 
At end of year   $ 323,815     $ 13,950     $ 60,972    

 

See notes to financial statements
47



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Cash Flows

For the Six Months Ended March 31, 2008

Cash Flows From Operating Activities   Insured
Municipal Fund II
  Insured
Massachusetts Fund
  Insured
Michigan Fund
 
Net decrease in net assets from operations   $ (16,985,386 )   $ (1,989,991 )   $ (1,240,262 )  
Distributions to preferred shareholders     1,713,184       268,872       218,641    
Net decrease in net assets from operations excluding distributions to
preferred shareholders
  $ (15,272,202 )   $ (1,721,119 )   $ (1,021,621 )  
Adjustments to reconcile net decrease in net assets from
operations to net cash provided by (used in) operating activities:
 
Investments purchased     (68,630,940 )           (1,523,080 )  
Investments sold     86,106,380       3,089,200       6,176,681    
Increase in short-term investments, net           (710,000 )        
Net amortization of premium (discount)     (999,240 )     (77,689 )     (127,877 )  
Decrease in interest receivable     673,524       40,197       66,834    
Increase in receivable for investments sold     (2,201,559 )              
Decrease in receivable for open interest rate swap contracts     55,259       14,200       6,307    
Increase in receivable from the transfer agent           (3,865 )        
Increase in prepaid expenses     (7,011 )     (4,517 )     (4,517 )  
Increase in payable for daily variation margin on open financial futures contracts     116,346             5,313    
Increase in payable for open interest rate swap contracts     895,708       178,461       102,287    
Decrease in payable for closed interest rate swap contracts     (272,596 )     (103,347 )     (40,440 )  
Increase in payable to affiliate for investment adviser fee     3,634       1,235       1,239    
Increase in payable to affiliate for Trustees' fees     679       111       11    
Increase (decrease) in payable for when-issued securities     5,224,726       (1,022,380 )        
Increase (decrease) in accrued expenses     11,670       (7,027 )     (7,688 )  
Decrease in interest expense and fees payable     (369,040 )     (32,612 )     (43,030 )  
Net change in unrealized (appreciation) depreciation on investments     16,298,787       2,095,442       1,453,425    
Net realized (gain) loss on investments     104,197       (5,349 )     45,970    
Net cash provided by operating activities   $ 21,738,322     $ 1,730,941     $ 5,089,814    
Cash Flows From Financing Activities  
Cash distributions paid net of reinvestments   $ (6,470,151 )   $ (570,267 )   $ (504,950 )  
Distributions to preferred shareholders     (1,707,947 )     (268,038 )     (218,041 )  
Increase (decrease) in due to custodian           29,807       (91,245 )  
Proceeds from secured borrowings     6,300,000                
Repayment of secured borrowings     (17,845,000 )     (2,000,000 )     (3,600,000 )  
Net cash used in financing activities   $ (19,723,098 )   $ (2,808,498 )   $ (4,414,236 )  
Net Increase (decrease) in cash   $ 2,015,224     $ (1,077,557 )   $ 675,578    
Cash at beginning of period   $ 188,070     $ 1,077,557     $    
Cash at end of period   $ 2,203,294     $     $ 675,578    
Supplemental disclosure of cash flow information:  
Noncash financing activities not included herein consist of reinvestment of dividends and distributions of:   $ 43,710     $ 15,794     $    

 

See notes to financial statements
48



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Cash Flows

For the Six Months Ended March 31, 2008

Cash Flows From Operating Activities   Insured
New Jersey Fund
  Insured
Pennsylvania Fund
 
Net decrease in net assets from operations   $ (3,371,488 )   $ (2,669,170 )  
Distributions to preferred shareholders     445,504       488,950    
Net decrease in net assets from operations excluding distributions to
preferred shareholders
  $ (2,925,984 )   $ (2,180,220 )  
Adjustments to reconcile net decrease in net assets from
operations to net cash provided by (used in) operating activities:
 
Investments purchased     (17,200,514 )     (11,067,062 )  
Investments sold     23,715,142       11,390,993    
Net amortization of premium (discount)     (235,356 )     (252,095 )  
Decrease (increase) in interest receivable     102,986       (2,314 )  
Increase in payable for investments purchased           1,725,796    
Decrease (increase) in receivable for investments sold     (1,075,995 )     1,465,920    
Decrease in receivable for open interest rate swap contracts     20,717       62,021    
Increase in prepaid expenses     (4,531 )     (4,531 )  
Increase in payable for daily variation margin on open financial futures contracts           27,891    
Increase in payable for open interest rate swap contracts     261,015       182,263    
Decrease in payable for closed interest rate swap contracts     (149,778 )        
Increase in payable to affiliate for investment adviser fee     1,371       2,017    
Increase in payable to affiliate for Trustees' fees     27       106    
Increase in payable for when-issued securities     308,061          
Decrease in accrued expenses     (11,538 )     (3,785 )  
Decrease in interest expense and fees payable     (43,547 )     (52,004 )  
Net change in unrealized (appreciation) depreciation on investments     4,154,477       3,480,803    
Net realized (gain) loss on investments     (728,722 )     (143,152 )  
Net cash provided by operating activities   $ 6,187,831     $ 4,632,647    
Cash Flows From Financing Activities  
Cash distributions paid net of reinvestments   $ (1,598,654 )   $ (1,548,080 )  
Distributions to preferred shareholders     (459,189 )     (487,230 )  
Proceeds from secured borrowings           1,575,000    
Repayment of secured borrowings     (2,000,000 )     (3,725,000 )  
Net cash used in financing activities   $ (4,057,843 )   $ (4,185,310 )  
Net Increase (decrease) in cash   $ 2,129,988     $ 447,337    
Cash at beginning of period   $ 83,044     $ 45,022    
Cash at end of period   $ 2,213,032     $ 492,359    
Supplemental disclosure of cash flow information:  
Noncash financing activities not included herein consist of reinvestment of dividends and distributions of:   $ 24,437     $ 6,543    

 

See notes to financial statements
49




Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.470     $ 15.860     $ 15.310     $ 15.030     $ 14.790     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.523     $ 1.048     $ 1.058     $ 1.094     $ 1.162     $ 0.879    
Net realized and unrealized gain (loss)     (2.054 )     (0.383 )     0.605       0.359       0.334       0.508    
Distributions to preferred shareholders  
From net investment income     (0.056 )     (0.303 )     (0.265 )     (0.169 )     (0.080 )     (0.071 )  
From net realized gain     (0.117 )                 0.000 (5)      (0.017 )        
Total income (loss) from operations   $ (1.704 )   $ 0.362     $ 1.398     $ 1.284     $ 1.399     $ 1.316    
Less distributions to common shareholders  
From net investment income   $ (0.370 )   $ (0.752 )   $ (0.848 )   $ (1.001 )   $ (1.001 )   $ (0.714 )  
From net realized gain     (0.286 )                 (0.003 )     (0.158 )        
Total distributions to common shareholders   $ (0.656 )   $ (0.752 )   $ (0.848 )   $ (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)   $ 13.110     $ 15.470     $ 15.860     $ 15.310     $ 15.030     $ 14.790    
Market value — End of period (Common shares)   $ 12.590     $ 14.550     $ 15.310     $ 16.170     $ 14.820     $ 14.000    
Total Investment Return on Net Asset Value(6)      (11.17 )%(14)      2.43 %(4)      9.56 %     8.77 %     10.00 %     8.46 %(7)(14)   
Total Investment Return on Market Value(6)      (9.29 )%(14)      (0.20 )%(4)      0.13 %     16.51 %     14.59 %     2.67 %(7)(14)   

 

See notes to financial statements
50



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data  
Net assets applicable to common shares, end of period (000's omitted)   $ 130,157     $ 153,612     $ 157,463     $ 151,937     $ 149,057     $ 146,574    
Ratios (As a percentage of average net assets applicable to common shares):(8)  
Expenses excluding interest and fees     1.07 %(11)     1.00 %(10)     1.02 %     1.03 %     1.00 %     0.86 %(11)  
Interest and fee expense(9)     0.88 %(11)     0.99 %     0.91 %     0.62 %     0.36 %     0.26 %(11)  
Total expenses before custodian fee reduction     1.95 %(11)     1.99 %(10)     1.93 %     1.65 %     1.36 %     1.12 %(11)  
Expenses after custodian fee reduction excluding interest and fees     1.05 %(11)     0.99 %(10)     1.01 %     1.02 %     1.00 %     0.84 %(11)  
Net investment income     7.19 %(11)     6.62 %     6.87 %     7.11 %     7.92 %     7.14 %(11)  
Portfolio Turnover     26 %     31 %     26 %     10 %     28 %     32 %  

 

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 applicable to common shares and preferred shares):(8)  
Expenses excluding interest and fees     0.67 %(11)     0.64 %(10)     0.65 %     0.65 %     0.63 %     0.57 %(11)  
Interest and fee expense(9)     0.55 %(11)     0.64 %     0.58 %     0.40 %     0.23 %     0.17 %(11)  
Total expenses before custodian fee reduction     1.22 %(11)     1.28 %(10)     1.23 %     1.05 %     0.86 %     0.74 %(11)  
Expenses after custodian fee reduction excluding interest and fees     0.65 %(11)     0.63 %(10)     0.64 %     0.65 %     0.62 %     0.56 %(11)  
Net investment income     4.48 %(11)     4.25 %     4.37 %     4.52 %     4.94 %     4.72 %(11)  
Senior Securities:  
Total preferred shares outstanding     3,500       3,500       3,500       3,500       3,500       3,500    
Asset coverage per preferred share(12)   $ 62,194     $ 68,894     $ 69,992     $ 68,411     $ 67,599     $ 66,893    
Involuntary liquidation preference per preferred share(13)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(13)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Net investment income per share was 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)  During the year ended September 30, 2007, the adviser fully reimbursed the Fund for a realized loss on the disposal of an investment security which did not meet investment guidelines. The loss had no effect on total return.

(5)  Equal to less than $0.001 per share.

(6)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested.

(7)  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.

(8)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(9)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).

(10)  The investment adviser was allocated a portion of the Fund's operating expenses (equal to less than 0.005% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.

(11)  Annualized.

(12)  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.

(13)  Plus accumulated and unpaid dividends.

(14)  Not annualized.

See notes to financial statements
51



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.020     $ 15.330     $ 14.810     $ 14.510     $ 14.560     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.491     $ 0.981     $ 0.989     $ 1.008     $ 1.060     $ 0.822    
Net realized and unrealized gain (loss)     (1.891 )     (0.301 )     0.547       0.360       (0.022 )     0.281    
Distributions to preferred shareholders  
From net investment income     (0.101 )     (0.282 )     (0.243 )     (0.145 )     (0.076 )     (0.050 )  
From net realized gain     (0.053 )                       (0.004 )        
Total income (loss) from operations   $ (1.554 )   $ 0.398     $ 1.293     $ 1.223     $ 0.958     $ 1.053    
Less distributions to common shareholders  
From net investment income   $ (0.345 )   $ (0.708 )   $ (0.773 )   $ (0.923 )   $ (0.948 )   $ (0.675 )  
From net realized gain     (0.131 )                       (0.060 )        
Total distributions to common shareholders   $ (0.476 )   $ (0.708 )   $ (0.773 )   $ (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)   $ 12.990     $ 15.020     $ 15.330     $ 14.810     $ 14.510     $ 14.560    
Market value — End of period (Common shares)   $ 13.610     $ 14.250     $ 14.635     $ 14.770     $ 14.580     $ 13.800    
Total Investment Return on Net Asset Value(4)      (10.39 )%(12)      2.75 %     9.15 %     8.65 %     6.84 %     6.62 %(5)(12)   
Total Investment Return on Market Value(4)      (1.04 )%(12)      2.11 %     4.49 %     7.84 %     13.27 %     1.06 %(5)(12)   

 

See notes to financial statements
52



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data  
Net assets applicable to common shares, end of period (000's omitted)   $ 50,190     $ 58,010     $ 59,199     $ 57,187     $ 55,955     $ 56,083    
Ratios (As a percentage of average net assets applicable to common shares):(6)  
Expenses excluding interest and fees     1.17 %(7)     1.11 %(8)     1.13 %     1.10 %     1.09 %     0.98 %(7)  
Interest and fee expense(9)     0.43 %(7)     0.50 %     0.48 %     0.31 %     0.15 %     0.15 %(7)  
Total expenses before custodian fee reduction     1.60 %(7)     1.61 %(8)     1.61 %     1.41 %     1.24 %     1.13 %(7)  
Expenses after custodian fee reduction excluding interest and fees     1.13 %(7)     1.09 %(8)     1.11 %     1.06 %     1.08 %     0.96 %(7)  
Net investment income     6.90 %(7)     6.42 %     6.66 %     6.81 %     7.27 %     6.75 %(7)  
Portfolio Turnover     7 %     37 %     13 %     13 %     11 %     22 %  

 

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 applicable to common shares and preferred shares):(6)  
Expenses excluding interest and fees     0.72 %(7)     0.71 %(8)     0.71 %     0.69 %     0.68 %     0.64 %(7)  
Interest and fee expense(9)     0.27 %(7)     0.32 %     0.30 %     0.20 %     0.09 %     0.10 %(7)  
Total expenses before custodian fee reduction     0.99 %(7)     1.03 %(8)     1.01 %     0.89 %     0.77 %     0.74 %(7)  
Expenses after custodian fee reduction excluding interest and fees     0.70 %(7)     0.69 %(8)     0.70 %     0.67 %     0.67 %     0.63 %(7)  
Net investment income     4.28 %(7)     4.09 %     4.19 %     4.28 %     4.54 %     4.46 %(7)  
Senior Securities:  
Total preferred shares outstanding     1,350       1,350       1,350       1,350       1,350       1,350    
Asset coverage per preferred share(10)   $ 62,189     $ 67,980     $ 68,858     $ 67,364     $ 66,455     $ 66,545    
Involuntary liquidation preference per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Net investment income per share was 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.

(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.

(6)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(7)  Annualized.

(8)  The investment adviser was allocated a portion of the Fund's operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.

(9)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see note 1H).

(10)  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.

(11)  Plus accumulated and unpaid dividends.

(12)  Not annualized.

See notes to financial statements
53



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Florida Plus Fund  
    Six Months Ended
March 31, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 14.790     $ 15.190     $ 14.870     $ 14.520     $ 14.550     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.475     $ 0.978     $ 0.981     $ 1.018     $ 1.062     $ 0.788    
Net realized and unrealized gain (loss)     (1.698 )     (0.411 )     0.348       0.399       0.002 (4)      0.319    
Distributions to preferred shareholders  
From net investment income     (0.159 )     (0.309 )     (0.266 )     (0.159 )     (0.077 )     (0.060 )  
From net realized gain                             (0.007 )        
Total income (loss) from operations   $ (1.382 )   $ 0.258     $ 1.063     $ 1.258     $ 0.980     $ 1.047    
Less distributions to common shareholders  
From net investment income   $ (0.318 )   $ (0.658 )   $ (0.743 )   $ (0.908 )   $ (0.930 )   $ (0.675 )  
From net realized gain                             (0.080 )        
Total distributions to common shareholders   $ (0.318 )   $ (0.658 )   $ (0.743 )   $ (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)   $ 13.090     $ 14.790     $ 15.190     $ 14.870     $ 14.520     $ 14.550    
Market value — End of period (Common shares)   $ 11.890     $ 13.550     $ 14.410     $ 14.980     $ 14.750     $ 14.100    
Total Investment Return on Net Asset Value(5)      (9.25 )%(13)      2.00 %     7.64 %     8.85 %     7.12 %     6.37 %(6)(13)   
Total Investment Return on Market Value(5)      (10.03 )%(13)      (1.48 )%     1.37 %     7.94 %     12.29 %     3.08 %(6)(13)   

 

See notes to financial statements
54



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Florida Plus Fund  
    Six Months Ended
March 31, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data  
Net assets applicable to common shares, end of period (000's omitted)   $ 33,719     $ 38,086     $ 39,129     $ 38,269     $ 37,211     $ 37,186    
Ratios (As a percentage of average net assets applicable to common shares):(7)  
Expenses excluding interest and fees     1.43 %(8)     1.17 %(9)     1.20 %     1.17 %     1.14 %     1.04 %(8)  
Interest and fee expense(10)     0.47 %(8)     0.48 %     0.47 %     0.29 %     0.18 %     0.09 %(8)  
Total expenses before custodian fee reduction     1.90 %(8)     1.65 %(9)     1.67 %     1.46 %     1.32 %     1.13 %(8)  
Expenses after custodian fee reduction excluding interest and fees     1.41 %(8)     1.16 %(9)     1.19 %     1.16 %     1.14 %     0.98 %(8)  
Net investment income     6.65 %(8)     6.48 %     6.63 %     6.84 %     7.30 %     6.45 %(8)  
Portfolio Turnover     52 %     32 %     16 %     13 %     17 %     10 %  

 

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 applicable to common shares and preferred shares):(7)  
Expenses excluding interest and fees     0.89 %(8)     0.74 %(9)     0.76 %     0.74 %     0.71 %     0.69 %(8)  
Interest and fee expense(10)     0.29 %(8)     0.30 %     0.29 %     0.18 %     0.11 %     0.06 %(8)  
Total expenses before custodian fee reduction     1.18 %(8)     1.04 %(9)     1.05 %     0.92 %     0.82 %     0.75 %(8)  
Expenses after custodian fee reduction excluding interest and fees     0.88 %(8)     0.73 %(9)     0.75 %     0.73 %     0.71 %     0.65 %(8)  
Net investment income     4.13 %(8)     4.10 %     4.17 %     4.30 %     4.55 %     4.25 %(8)  
Senior Securities:  
Total preferred shares outstanding     900       900       900       900       900       900    
Asset coverage per preferred share(11)   $ 62,466     $ 67,333     $ 68,489     $ 67,528     $ 66,348     $ 66,319    
Involuntary liquidation preference per preferred share(12)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(12)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Net investment income per share was 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.

(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 sale at the current market price on the last day of the period reported.

(7)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(8)  Annualized.

(9)  The investment adviser was allocated a portion of the Fund's operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.

(10)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).

(11)  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.

(12)  Plus accumulated and unpaid dividends.

(13)  Not annualized.

See notes to financial statements
55



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.090     $ 15.640     $ 15.100     $ 14.870     $ 14.670     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.493     $ 0.969     $ 0.983     $ 1.031     $ 1.109     $ 0.823    
Net realized and unrealized gain (loss)     (1.476 )     (0.540 )     0.613       0.290       0.350       0.411    
Distributions to preferred shareholders  
From net investment income     (0.153 )     (0.293 )     (0.256 )     (0.143 )     (0.069 )     (0.058 )  
From net realized gain                             (0.017 )        
Total income (loss) from operations   $ (1.136 )   $ 0.136     $ 1.340     $ 1.178     $ 1.373     $ 1.176    
Less distributions to common shareholders  
From net investment income   $ (0.334 )   $ (0.686 )   $ (0.800 )   $ (0.948 )   $ (0.948 )   $ (0.675 )  
From net realized gain                             (0.225 )        
Total distributions to common shareholders   $ (0.334 )   $ (0.686 )   $ (0.800 )   $ (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)   $ 13.620     $ 15.090     $ 15.640     $ 15.100     $ 14.870     $ 14.670    
Market value — End of period (Common shares)   $ 14.350     $ 14.820     $ 16.090     $ 17.350     $ 15.570     $ 14.450    
Total Investment Return on Net Asset Value(4)      (7.61 )%(13)      0.88 %(5)      9.14 %     7.74 %     9.74 %     7.22 %(6)(13)   
Total Investment Return on Market Value(4)      (0.85 )%(13)      (3.72 )%(5)      (2.28 )%     18.23 %     16.66 %     5.61 %(6)(13)   

 

See notes to financial statements
56



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data  
Net assets applicable to common shares, end of period (000's omitted)   $ 23,916     $ 26,476     $ 27,419     $ 26,441     $ 25,982     $ 25,586    
Ratios (As a percentage of average net assets applicable to common shares):(7)  
Expenses excluding interest and fees     1.36 %(10)     1.25 %(9)     1.29 %     1.25 %     1.24 %     1.10 %(10)  
Interest and fee expense(8)     0.85 %(10)     0.98 %     1.54 %     1.26 %     0.79 %     0.26 %(10)  
Total expenses before custodian fee reduction     2.21 %(10)     2.23 %(9)     2.83 %     2.51 %     2.03 %     1.36 %(10)  
Expenses after custodian fee reduction excluding interest and fees     1.34 %(10)     1.25 %(9)     1.26 %     1.24 %     1.24 %     1.06 %(10)  
Net investment income     6.71 %(10)     6.27 %     6.50 %     6.79 %     7.58 %     6.73 %(10)  
Portfolio Turnover     0 %     15 %     15 %     11 %     33 %     35 %  

 

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 applicable to common shares and preferred shares):(7)  
Expenses excluding interest and fees     0.85 %(10)     0.81 %(9)     0.81 %     0.79 %     0.77 %     0.73 %(10)  
Interest and fee expense(8)     0.53 %(10)     0.62 %     0.97 %     0.80 %     0.49 %     0.17 %(10)  
Total expenses before custodian fee reduction     1.38 %(10)     1.43 %(9)     1.78 %     1.59 %     1.26 %     0.90 %(10)  
Expenses after custodian fee reduction excluding interest and fees     0.83 %(10)     0.80 %(9)     0.80 %     0.78 %     0.77 %     0.70 %(10)  
Net investment income     4.19 %(10)     3.99 %     4.10 %     4.29 %     4.72 %     4.42 %(10)  
Senior Securities:  
Total preferred shares outstanding     620       620       620       620       620       620    
Asset coverage per preferred share(11)   $ 63,583     $ 67,711     $ 69,229     $ 67,649     $ 66,907     $ 66,270    
Involuntary liquidation preference per preferred share(12)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(12)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Net investment income per share was 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.

(5)  During the year ended September 30, 2007, the Fund realized a gain on the disposal of an investment security which did not meet investment guidelines. The gain was less than $0.01 per share and had no effect on total return.

(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.

(7)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(8)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).

(9)  The investment adviser was allocated a portion of the Fund's operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.

(10)  Annualized.

(11)  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.

(12)  Plus accumulated and unpaid dividends.

(13)  Not annualized.

See notes to financial statements
57



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.150     $ 15.430     $ 15.000     $ 14.840     $ 14.520     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.498     $ 0.985     $ 0.991     $ 1.039     $ 1.105     $ 0.824    
Net realized and unrealized gain (loss)     (1.169 )     (0.309 )     0.462       0.233       0.252       0.262    
Distributions to preferred shareholders  
From net investment income     (0.145 )     (0.288 )     (0.252 )     (0.164 )     (0.089 )     (0.058 )  
Total income (loss) from operations   $ (0.816 )   $ 0.388     $ 1.201     $ 1.108     $ 1.268     $ 1.028    
Less distributions to common shareholders  
From net investment income   $ (0.334 )   $ (0.668 )   $ (0.771 )   $ (0.948 )   $ (0.948 )   $ (0.675 )  
Total distributions to common shareholders   $ (0.334 )   $ (0.668 )   $ (0.771 )   $ (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)   $ 14.000     $ 15.150     $ 15.430     $ 15.000     $ 14.840     $ 14.520    
Market value — End of period (Common shares)   $ 12.800     $ 14.030     $ 14.190     $ 16.200     $ 15.490     $ 14.410    
Total Investment Return on Net Asset Value(4)      (5.27 )%(12)      2.81 %     8.44 %     7.52 %     8.96 %     6.12 %(5)(12)   
Total Investment Return on Market Value(4)      (6.47 )%(12)      3.53 %     (7.67 )%     11.26 %     14.60 %     5.31 %(5)(12)   

 

See notes to financial statements
58



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data  
Net assets applicable to common shares, end of period (000's omitted)   $ 21,167     $ 22,912     $ 23,335     $ 22,670     $ 22,396     $ 21,893    
Ratios (As a percentage of average net assets applicable to common shares):(6)  
Expenses excluding interest and fees     1.37 %(8)     1.29 %(7)     1.32 %     1.28 %     1.28 %     1.14 %(8)  
Interest and fee expense(9)     0.85 %(8)     0.98 %     0.90 %     0.60 %     0.33 %     1.27 %(8)  
Total expenses before custodian fee reduction     2.22 %(8)     2.27 %(7)     2.22 %     1.88 %     1.61 %     2.41 %(8)  
Expenses after custodian fee reduction excluding interest and fees     1.37 %(8)     1.27 %(7)     1.30 %     1.27 %     1.27 %     1.09 %(8)  
Net investment income     6.72 %(8)     6.43 %     6.62 %     6.88 %     7.56 %     6.75 %(8)  
Portfolio Turnover     4 %     6 %     6 %     5 %     7 %     45 %  

 

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 applicable to common shares and preferred shares):(6)  
Expenses excluding interest and fees     0.86 %(8)     0.81 %(7)     0.83 %     0.81 %     0.79 %     0.75 %(8)  
Interest and fee expense(9)     0.53 %(8)     0.62 %     0.56 %     0.38 %     0.21 %     0.83 %(8)  
Total expenses before custodian fee reduction     1.39 %(8)     1.43 %(7)     1.39 %     1.19 %     1.00 %     1.58 %(8)  
Expenses after custodian fee reduction excluding interest and fees     0.86 %(8)     0.80 %(7)     0.82 %     0.80 %     0.78 %     0.71 %(8)  
Net investment income     4.19 %(8)     4.06 %     4.15 %     4.32 %     4.69 %     4.42 %(8)  
Senior Securities:  
Total preferred shares outstanding     540       540       540       540       540       540    
Asset coverage per preferred share(10)   $ 64,211     $ 67,442     $ 68,222     $ 66,986     $ 66,475     $ 65,543    
Involuntary liquidation preference per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Net investment income per share was 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.

(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.

(6)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(7)  The investment adviser was allocated a portion of the Fund's operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.

(8)  Annualized.

(9)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).

(10)  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.

(11)  Plus accumulated and unpaid dividends.

(12)  Not annualized.

See notes to financial statements
59



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.690     $ 15.840     $ 15.240     $ 14.990     $ 14.760     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.482     $ 0.996     $ 1.002     $ 1.039     $ 1.117     $ 0.826    
Net realized and unrealized gain (loss)     (1.615 )     (0.150 )     0.671       0.330       0.361       0.489    
Distributions to preferred shareholders  
From net investment income     (0.060 )     (0.286 )     (0.253 )     (0.159 )     (0.067 )     (0.058 )  
From net realized gain     (0.114 )                       (0.015 )        
Total income (loss) from operations   $ (1.307 )   $ 0.560     $ 1.420     $ 1.210     $ 1.396     $ 1.257    
Less distributions to common shareholders  
From net investment income   $ (0.350 )   $ (0.710 )   $ (0.820 )   $ (0.960 )   $ (0.960 )   $ (0.675 )  
From net realized gain     (0.283 )                       (0.206 )        
Total distributions to common shareholders   $ (0.633 )   $ (0.710 )   $ (0.820 )   $ (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)   $ 13.750     $ 15.690     $ 15.840     $ 15.240     $ 14.990     $ 14.760    
Market value — End of period (Common shares)   $ 13.890     $ 14.790     $ 16.400     $ 16.240     $ 15.490     $ 14.520    
Total Investment Return on Net Asset Value(4)      (8.44 )%(12)      3.64 %     9.65 %     8.18 %     9.83 %     7.89 %(5)(12)   
Total Investment Return on Market Value(4)      (1.86 )%(12)      (5.66 )%     6.53 %     11.56 %     15.37 %     6.14 %(5)(12)   

 

See notes to financial statements
60



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data  
Net assets applicable to common shares, end of period (000's omitted)   $ 35,292     $ 40,262     $ 40,620     $ 39,032     $ 38,326     $ 37,687    
Ratios (As a percentage of average net assets applicable to common shares):(6)  
Expenses excluding interest and fees     1.26 %(8)     1.14 %(9)     1.19 %     1.15 %     1.13 %     1.03 %(8)  
Interest and fee expense(7)     0.81 %(8)     0.92 %     0.86 %     0.59 %     0.31 %     0.27 %(8)  
Total expenses before custodian fee reduction     2.07 %(8)     2.06 %(9)     2.05 %     1.74 %     1.44 %     1.30 %(8)  
Expenses after custodian fee reduction excluding interest and fees     1.22 %(8)     1.11 %(9)     1.16 %     1.14 %     1.13 %     0.99 %(8)  
Net investment income     6.43 %(8)     6.29 %     6.59 %     6.78 %     7.54 %     6.69 %(8)  
Portfolio Turnover     25 %     27 %     22 %     15 %     19 %     34 %  

 

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 applicable to common shares and preferred shares):(6)  
Expenses excluding interest and fees     0.79 %(8)     0.73 %(9)     0.75 %     0.73 %     0.71 %     0.69 %(8)  
Interest and fee expense(7)     0.51 %(8)     0.59 %     0.55 %     0.38 %     0.20 %     0.18 %(8)  
Total expenses before custodian fee reduction     1.30 %(8)     1.32 %(9)     1.30 %     1.11 %     0.91 %     0.87 %(8)  
Expenses after custodian fee reduction excluding interest and fees     0.77 %(8)     0.72 %(9)     0.73 %     0.72 %     0.71 %     0.66 %(8)  
Net investment income     4.06 %(8)     4.05 %     4.18 %     4.31 %     4.73 %     4.43 %(8)  
Senior Securities:  
Total preferred shares outstanding     900       900       900       900       900       900    
Asset coverage per preferred share(10)   $ 64,214     $ 69,751     $ 70,144     $ 68,375     $ 67,588     $ 66,875    
Involuntary liquidation preference per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Net investment income per share was 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.

(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.

(6)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(7)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).

(8)  Annualized.

(9)  The investment adviser was allocated a portion of the Fund's operating expenses (equal to less than 0.01% of average daily net assets for year ended September 30, 2007). Absent this allocation, total return would be lower.

(10)  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.

(11)  Plus accumulated and unpaid dividends.

(12)  Not annualized.

See notes to financial statements
61



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.240     $ 15.760     $ 15.300     $ 14.910     $ 14.870     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.480     $ 0.969     $ 0.990     $ 1.008     $ 1.080     $ 0.818    
Net realized and unrealized gain (loss)     (1.784 )     (0.256 )     0.542       0.462       0.223       0.617    
Distributions to preferred shareholders  
From net investment income     (0.109 )     (0.209 )     (0.240 )     (0.148 )     (0.063 )     (0.057 )  
From net realized gain     (0.049 )     (0.079 )     (0.015 )           (0.016 )        
Total income (loss) from operations   $ (1.462 )   $ 0.425     $ 1.277     $ 1.322     $ 1.224     $ 1.378    
Less distributions to common shareholders  
From net investment income   $ (0.348 )   $ (0.697 )   $ (0.732 )   $ (0.932 )   $ (0.963 )   $ (0.686 )  
From net realized gain     (0.180 )     (0.248 )     (0.085 )           (0.221 )        
Total distributions to common shareholders   $ (0.528 )   $ (0.945 )   $ (0.817 )   $ (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)   $ 13.250     $ 15.240     $ 15.760     $ 15.300     $ 14.910     $ 14.870    
Market value — End of period (Common shares)   $ 13.250     $ 14.440     $ 14.420     $ 14.570     $ 14.460     $ 13.710    
Total Investment Return on Net Asset Value(4)      (9.68 )%(13)      3.00 %     9.02 %     9.17 %     8.75 %(5)      8.87 %(6)(13)   
Total Investment Return on Market Value(4)      (4.68 )%(13)      6.66 %     4.75 %     7.19 %     14.39 %(5)      0.38 %(6)(13)   

 

See notes to financial statements
62



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data  
Net assets applicable to common shares, end of period (000's omitted)   $ 33,864     $ 38,947     $ 40,263     $ 39,101     $ 38,089     $ 37,984    
Ratios (As a percentage of average net assets applicable to common shares):(7)  
Expenses excluding interest and fees     1.26 %(8)     1.16 %(9)     1.14 %     1.21 %     1.14 %     1.03 %(8)  
Interest and fee expense(10)     0.42 %(8)     0.46 %     0.42 %     0.28 %     0.16 %     0.14 %(8)  
Total expenses before custodian fee reduction     1.68 %(8)     1.62 %(9)     1.56 %     1.49 %     1.30 %     1.17 %(8)  
Expenses after custodian fee reduction excluding interest and fees     1.22 %(8)     1.14 %(9)     1.11 %     1.19 %     1.13 %     0.98 %(8)  
Net investment income     6.62 %(8)     6.24 %     6.48 %     6.60 %     7.31 %     6.65 %(8)  
Portfolio Turnover     20 %     38 %     26 %     29 %     26 %     49 %  

 

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 applicable to common shares and preferred shares):(7)  
Expenses excluding interest and fees     0.79 %(8)     0.74 %(9)     0.72 %     0.77 %     0.71 %     0.68 %(8)  
Interest and fee expense(10)     0.26 %(8)     0.29 %     0.27 %     0.18 %     0.10 %     0.09 %(8)  
Total expenses before custodian fee reduction     1.05 %(8)     1.03 %(9)     0.99 %     0.95 %     0.81 %     0.77 %(8)  
Expenses after custodian fee reduction excluding interest and fees     0.76 %(8)     0.73 %(9)     0.71 %     0.76 %     0.71 %     0.65 %(8)  
Net investment income     4.12 %(8)     3.98 %     4.11 %     4.18 %     4.58 %     4.409 %(8)  
Senior Securities:  
Total preferred shares outstanding     900       900       900       900       900       900    
Asset coverage per preferred share(11)   $ 62,640     $ 68,285     $ 69,746     $ 68,450     $ 67,323     $ 67,209    
Involuntary liquidation preference per preferred share(12)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(12)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Net investment income per share was 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.

(5)  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.

(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.

(7)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(8)  Annualized.

(9)  The investment adviser was allocated a portion of the Fund's operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.

(10)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H).

(11)  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.

(12)  Plus accumulated and unpaid dividends.

(13)  Not annualized.

See notes to financial statements
63



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 14.970     $ 15.330     $ 14.830     $ 14.640     $ 14.620     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.477     $ 0.966     $ 0.978     $ 1.006     $ 1.054     $ 0.776    
Net realized and unrealized gain (loss)     (1.868 )     (0.361 )     0.497       0.219       0.018       0.402    
Distributions to preferred shareholders  
From net investment income     (0.158 )     (0.301 )     (0.263 )     (0.173 )     (0.086 )     (0.060 )  
From net realized gain                             (0.003 )        
Total income (loss) from operations   $ (1.549 )   $ 0.304     $ 1.212     $ 1.052     $ 0.983     $ 1.118    
Less distributions to common shareholders  
From net investment income   $ (0.311 )   $ (0.664 )   $ (0.712 )   $ (0.862 )   $ (0.930 )   $ (0.675 )  
From net realized gain                             (0.033 )        
Total distributions to common shareholders   $ (0.311 )   $ (0.664 )   $ (0.712 )   $ (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)   $ 13.110     $ 14.970     $ 15.330     $ 14.830     $ 14.640     $ 14.620    
Market value — End of period (Common shares)   $ 12.040     $ 13.710     $ 14.600     $ 14.510     $ 15.200     $ 14.430    
Total Investment Return on Net Asset Value(4)      (10.32 )%(12)      2.17 %     8.58 %     7.29 %     6.94 %     6.85 %(5)(12)   
Total Investment Return on Market Value(4)      (10.06 )%(12)      (1.75 )%     5.69 %     1.11 %     12.49 %     5.46 %(5)(12)   

 

See notes to financial statements
64



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data  
Net assets applicable to common shares, end of period (000's omitted)   $ 32,939     $ 37,617     $ 38,532     $ 37,255     $ 36,746     $ 36,610    
Ratios (As a percentage of average net assets applicable to common shares):(6)  
Expenses excluding interest and fees     1.25 %(7)     1.16 %(8)     1.19 %     1.18 %     1.17 %     1.05 %(7)  
Interest and fee expense(9)     0.44 %(7)     0.53 %     0.41 %     0.25 %     0.13 %     0.09 %(7)  
Total expenses before custodian fee reduction     1.69 %(7)     1.69 %(8)     1.60 %     1.43 %     1.30 %     1.14 %(7)  
Expenses after custodian fee reduction excluding interest and fees     1.23 %(7)     1.14 %(8)     1.16 %     1.16 %     1.16 %     0.99 %(7)  
Net investment income     6.66 %(7)     6.33 %     6.56 %     6.76 %     7.30 %     6.38 %(7)  
Portfolio Turnover     11 %     30 %     16 %     8 %     23 %     19 %  

 

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 applicable to common shares and preferred shares):(6)  
Expenses excluding interest and fees     0.77 %(7)     0.74 %(8)     0.75 %     0.74 %     0.73 %     0.69 %(7)  
Interest and fee expense(9)     0.28 %(7)     0.34 %     0.26 %     0.16 %     0.08 %     0.07 %(7)  
Total expenses before custodian fee reduction     1.05 %(7)     1.08 %(8)     1.01 %     0.90 %     0.81 %     0.76 %(7)  
Expenses after custodian fee reduction excluding interest and fees     0.76 %(7)     0.72 %(8)     0.73 %     0.73 %     0.72 %     0.65 %(7)  
Net investment income     4.14 %(7)     4.03 %     4.14 %     4.26 %     4.55 %     4.21 %(7)  
Senior Securities:  
Total preferred shares outstanding     875       875       875       875       875       875    
Asset coverage per preferred share(10)   $ 62,647     $ 67,991     $ 69,036     $ 67,586     $ 66,999     $ 66,841    
Involuntary liquidation preference per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Net investment income per share was 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.

(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.

(6)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(7)  Annualized.

(8)  The investment adviser was allocated a portion of the Fund's operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.

(9)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (See Note 1H).

(10)  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.

(11)  Plus accumulated and unpaid dividends.

(12)  Not annualized.

See notes to financial statements
65



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.270     $ 15.470     $ 14.930     $ 14.410     $ 14.580     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.496     $ 0.995     $ 0.994     $ 1.019     $ 1.068     $ 0.811    
Net realized and unrealized gain (loss)     (1.232 )     (0.209 )     0.559       0.587       (0.066 )     0.331    
Distributions to preferred shareholders  
From net investment income     (0.090 )     (0.291 )     (0.266 )     (0.173 )     (0.083 )     (0.060 )  
From net realized gain     (0.076 )                       (0.011 )        
Total income (loss) from operations   $ (0.902 )   $ 0.495     $ 1.287     $ 1.433     $ 0.908     $ 1.082    
Less distributions to common shareholders  
From net investment income   $ (0.345 )   $ (0.695 )   $ (0.747 )   $ (0.913 )   $ (0.938 )   $ (0.681 )  
From net realized gain     (0.183 )                       (0.140 )        
Total distributions to common shareholders   $ (0.528 )   $ (0.695 )   $ (0.747 )   $ (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)   $ 13.840     $ 15.270     $ 15.470     $ 14.930     $ 14.410     $ 14.580    
Market value — End of period (Common shares)   $ 13.850     $ 14.150     $ 15.020     $ 15.540     $ 14.980     $ 14.330    
Total Investment Return on Net Asset Value(4)      (5.89 )%(12)      3.44 %     9.00 %     10.01 %     6.43 %     6.63 %(5)(12)   
Total Investment Return on Market Value(4)      1.64 %(12)      (1.28 )%     1.68 %     10.15 %     12.57 %     4.80 %(5)(12)   

 

See notes to financial statements
66



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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, 2008
  Year Ended September 30,   Period Ended
September 30,
 
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)(2)   
Ratios/Supplemental Data  
Net assets applicable to common shares, end of period (000's omitted)   $ 40,738     $ 44,955     $ 45,516     $ 43,920     $ 42,352     $ 42,822    
Ratios (As a percentage of average net assets applicable to common shares):(6)  
Expenses excluding interest and fees     1.24 %(7)     1.15 %(8)     1.18 %     1.16 %     1.12 %     1.03 %(7)  
Interest and fee expense(9)     0.61 %(7)     0.83 %     0.78 %     0.41 %     0.25 %     0.14 %(7)  
Total expenses before custodian fee reduction     1.85 %(7)     1.98 %(8)     1.96 %     1.57 %     1.37 %     1.17 %(7)  
Expenses after custodian fee reduction excluding interest and fees     1.23 %(7)     1.12 %(8)     1.15 %     1.15 %     1.11 %     0.97 %(7)  
Net investment income     6.67 %(7)     6.45 %     6.64 %     6.91 %     7.37 %     6.64 %(7)  
Portfolio Turnover     14 %     24 %     22 %     19 %     15 %     12 %  

 

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 applicable to common shares and preferred shares):(6)  
Expenses excluding interest and fees     0.78 %(7)     0.73 %(8)     0.74 %     0.73 %     0.69 %     0.68 %(7)  
Interest and fee expense(9)     0.38 %(7)     0.53 %     0.49 %     0.26 %     0.15 %     0.09 %(7)  
Total expenses before custodian fee reduction     1.16 %(7)     1.26 %(8)     1.23 %     0.99 %     0.84 %     0.77 %(7)  
Expenses after custodian fee reduction excluding interest and fees     0.77 %(7)     0.71 %(8)     0.72 %     0.72 %     0.69 %     0.64 %(7)  
Net investment income     4.19 %(7)     4.10 %     4.17 %     4.32 %     4.58 %     4.37 %(7)  
Senior Securities:  
Total preferred shares outstanding     1,040       1,040       1,040       1,040       1,040       1,040    
Asset coverage per preferred share(10)   $ 64,180     $ 68,233     $ 68,770     $ 67,232     $ 65,723     $ 66,178    
Involuntary liquidation preference per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(11)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Net investment income per share was 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.

(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.

(6)  Ratios do not reflect the effect of dividend payments to preferred shareholders.

(7)  Annualized.

(8)  The investment adviser was allocated a portion of the Fund's operating expenses (equal to less than 0.01% of average daily net assets for the year ended September 30, 2007). Absent this allocation, total return would be lower.

(9)  Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (See Note 1H).

(10)  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.

(11)  Plus accumulated and unpaid dividends.

(12)  Not annualized.

See notes to financial statements
67




Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

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 Plus Municipal Bond Fund (formerly, Eaton Vance Insured Florida Municipal Bond Fund) (Insured Florida Plus 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), (each individually referred to as the Fund, and collectively, the Funds), are Massachusetts business trusts registered under the Investment Company Act of 1940, as amended (the 1940 Act), as non-diversified, closed-end management investment companies. Each Fund seeks to provide current income exempt from regular federal income tax, including alternative minimum tax, and, in state specific funds, taxes in its specified state, as applicable.

The following is a summary of significant accounting policies of the Funds. 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 generally valued on the basis of valuations furnished by a pricing service. Financial futures contracts and options on financial futures contracts listed on commodity exchanges are valued at closing settlement prices. Interest rate swaps are generally 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 market value. Investments for which valuations or market quotations are not readily available, and investments for which the price of a 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  Investment Transactions and Related Income — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost. Interest income is recorded 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 substantially all of its taxable, if any, and tax-exempt net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. 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 tax when received by each Fund, as exempt-interest dividends.

At September 30, 2007, the following Funds, for federal income tax purposes, had capital loss carryforwards which will reduce each Fund's taxable income arising from future net realized gains on investment transactions, 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 carryforwards are as follows:

Fund   Amount   Expiration Date  
Insured Florida Plus   $ 314,751     September 30, 2013  
Insured Massachusetts     247,959     September 30, 2013  
Insured Michigan     399,841     September 30, 2013  
Insured Ohio     321,978     September 30, 2013  

 

In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109". FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, "Accounting for Income Taxes". This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.


68



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

FIN 48 is effective on the last business day of the first required financial reporting period for fiscal years beginning after December 15, 2006. Management has concluded that as of March 31, 2008, there are no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Funds' federal tax returns filed in the 3-year period ended September 30, 2007 remains subject to examination by the Internal Revenue Service.

D  Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Funds. Pursuant to the respective custodian agreements, SSBT receives a fee reduced by credits, which are determined based on the average daily cash balance each Fund maintains with SSBT. All credit balances, if any, used to reduce each Fund's custodian fees are reported as a reduction of expenses in the Statements of Operations.

E  Legal Fees — Legal fees and other related expenses incurred as part of negotiations of the terms and requirement 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.

F  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.

G  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.

H  Floating Rate Notes Issued in Conjunction with Securities Held — The Funds may invest in inverse floating rate securities, whereby a Fund may sell a fixed rate bond to a broker for cash. At the same time, the Fund buys a residual interest in the assets and cash flows of a Special-Purpose Vehicle (the SPV), (which is generally organized as a trust), set up by the broker, often referred to as an inverse floating rate obligation (Inverse Floater). The broker deposits a fixed rate bond into the SPV with the same CUSIP number as the fixed rate bond sold to the broker by the Fund, and which may have been, but is not required to be, the fixed rate bond purchased from the Fund (the Fixed Rate Bond). The SPV also issues floating rate notes (Floating Rate Notes) which are sold to third-parties. The Funds may enter into shortfall and forbearance agreements with the broker by which a Fund agrees to reimburse the broker, in certain circumstances, for the difference between the liquidation value of the Fixed Rate Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in interest cash flows. The Inverse Floater held by a Fund gives the Fund the right (1) to cause the holders of the Floating Rate Notes to tender their notes at par, and (2) to have the broker transfer the Fixed Rate Bond held by the SPV to the Fund, thereby collapsing the SPV. Pursuant to Financial Accounting Standards Board (FASB) Statement No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities" (FAS 140), the Funds account for the transaction described above as a secured borrowing by including the Fixed Rate Bond in their Portfolio of Investments and the Floating Rate Notes as a liability under the caption "Payable for floating rate notes issued" in their Statement of Assets and Liabilities. The Floating Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the broker for redemption at par at each reset date. Interest expense related to the Funds' liability with respect to Floating Rate Notes is recorded as incurred. At March 31, 2008, the amount of the Funds' Floating Rate Notes outstanding and the related interest rates and collateral were as follows:

Fund   Floating
Rate Notes
Outstanding
  Interest Rate
or Range of
Interest
Rates (%)
  Collateral for
Floating Rate
Notes
Outstanding
 
Insured Municipal II   $ 28,025,000       2.14 – 2.21     $ 42,055,875    
Insured California II     6,715,000       2.18       10,588,320    
Insured Florida Plus     6,970,000       2.14 – 2.29       10,074,000    
Insured Massachusetts     4,765,000       2.17 – 2.70       7,563,986    

 


69



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

Fund   Floating
Rate Notes
Outstanding
  Interest Rate
or Range of
Interest
Rates (%)
  Collateral for
Floating Rate
Notes
Outstanding
 
Insured Michigan   $ 2,180,000       2.17     $ 3,553,623    
Insured New Jersey     7,580,000       2.17 – 2.24       11,808,520    
Insured New York II     3,465,000       2.14 – 2.24       5,162,654    
Insured Ohio     1,705,000       2.17 – 2.27       2,525,617    
Insured Pennsylvania     6,345,000       2.17 – 2.21       9,956,775    

 

The Funds' investment policies and restrictions expressly permit investments in Inverse Floaters. Inverse floating rate securities typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. The Funds' investment policies do not allow the Funds to borrow money for purposes of making investments. Management believes that the Funds' restrictions on borrowings do not apply to the secured borrowings deemed to have occurred for accounting purposes pursuant to FAS 140, which is distinct from a legal borrowing of the Funds to which the policies apply. Inverse Floaters held by the Funds are securities exempt from registration under Rule 144A of the Securities Act of 1933.

I  Financial Futures Contracts — The Funds may enter into financial futures contracts. The Funds' investment in financial futures contracts is designed for hedging against changes in interest rates or as a substitute for the purchase of securities. Upon entering into a financial futures contract, a Fund is required to deposit with the broker, either in cash or securities an amount equal to a certain percentage of the purchase price (initial margin). Subsequent payments, known as variation margin, are made or received by the Fund each business day, depending on the daily fluctuations in the value of the underlying security, and are recorded as unrealized gains or losses by the Fund. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. In entering such contracts, the Fund bears the risk if the counterparties do not perform under the contracts' terms.

J  Interest Rate Swaps — The Funds may enter into interest rate swap agreements to enhance return, to hedge against fluctuations in securities prices or interest rates, or as substitution for the purchase or sale of securities. Pursuant to these agreements, a Fund makes periodic payments at a fixed interest rate and, in exchange, receives payments based on the interest rate of a benchmark industry index. During the term of the outstanding swap agreement, changes in the underlying value of the swap are recorded as unrealized gains or losses. The value of the swap is determined by changes in the relationship between two rates of interest. A Fund is exposed to credit loss in the event of non-performance by the swap counterparty. Risk may also arise from movements in interest rates.

K  When-Issued Securities and Delayed Delivery Transactions — The Funds may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Funds maintain security positions for these commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

L  Statement of Cash Flows — The cash amount shown in the Statement of Cash Flows of a Fund is the amount included in the Fund's Statement of Assets and Liabilities and represents the cash on hand at its custodian and does not include any short-term investments.

M  Interim Financial Statements — The interim financial statements relating to March 31, 2008 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, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.

2  Auction Preferred Shares

Each Fund issued Auction Preferred Shares (APS) on January 15, 2003 in a public offering. The underwriting discounts and other offering costs incurred in connection with the offering were recorded as a reduction of the paid-in capital of the common shares of each respective Fund. Dividends on the APS, which accrue daily, are cumulative at rates which are reset every seven days by an auction, unless a special dividend period has been set.


70



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

If the APS auctions do not successfully clear, the dividend payment rate over the next period for the APS holders is set at a specified maximum applicable rate until such time as the APS auctions are successful. The maximum applicable rate on the APS is 110% (150% for taxable distributions) of the greater of the 1) "AA" Financial Composite Commercial Paper Rate or 2) Taxable Equivalent of the Short-Term Municipal Obligation Rate on the date of the auction. Series of APS are identical in all respects except for the reset dates of the dividend rates.

The number of APS issued and outstanding as of March 31, 2008 are as follows:

Fund   APS
Issued and Outstanding
 
Insured Municipal II          
Series A     1,750    
Series B     1,750    
Insured California II     1,350    
Insured Florida Plus     900    
Insured Massachusetts     620    
Insured Michigan     540    
Insured New Jersey     900    
Insured New York II     900    
Insured Ohio     875    
Insured Pennsylvania     1,040    

 

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 a Fund is in default for an extended period on its asset maintenance requirements with respect to the APS. If the dividends on the APS 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 the Funds' By-Laws and the 1940 Act. Each Fund pays an annual fee equivalent to 0.25% of the liquidation value of the APS for the remarketing efforts associated with the APS auctions.

3  Distributions to Shareholders

Each Fund intends to make monthly distributions of net investment income to common shareholders, after payment of any dividends on any outstanding APS. In addition, at least annually, the Funds intend to distribute all or substantially all of their net realized capital gains, if any. Distributions to common shareholders are recorded on the ex-dividend date. Distributions to preferred shareholders are recorded daily and are payable at the end of each dividend period. The dividend rates for APS at March 31, 2008, and the amount of dividends paid (including capital gains, if any) to APS shareholders, average APS dividend rates, and dividend rate ranges for the six months then ended were as follows:

Fund   APS Dividend
Rates at
March 31,
2008
  Dividends
Paid to
APS
Shareholders
  Average
APS
Dividend
Rates
  Dividends
Rate
Ranges (%)
 
Insured Municipal II  
Series A     3.23 %   $ 841,911       3.85 %     2.00 – 6.15    
Series B     3.23       871,273       3.98       2.10 – 6.00    
Insured California II     3.23       592,312       3.51       2.00 – 5.75    
Insured Florida Plus     3.26       410,561       3.65       1.85 – 4.36    
Insured Massachusetts     3.23       268,872       3.47       1.99 – 4.51    
Insured Michigan     3.23       218,641       3.23       1.24 – 4.36    
Insured New Jersey     3.26       445,504       3.96       1.00 – 6.00    
Insured New York II     3.23       404,291       3.59       2.75 – 5.50    
Insured Ohio     3.23       396,191       3.62       3.00 – 4.51    
Insured Pennsylvania     3.23       488,950       3.76       1.00 – 5.75    

 

Beginning February 13, 2008, and consistent with the patterns in the broader market for auction-rate securities, APS of the Funds were unsuccessful in clearing due to an imbalance of sell orders over bids to buy the APS. As a result, the dividend rates on the APS were reset to the maximum applicable rates. The table above reflects such maximum dividend rates for each series as of March 31, 2008.

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


71



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

between book and tax accounting relating to distributions are reclassified to paid-in capital.

4  Investment Adviser Fee and Other Transactions with Affiliates

The investment adviser fee is earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Fund. The fee is computed at an annual rate of 0.55% of each Fund's average weekly gross assets and is payable monthly. Average weekly gross assets as referred to herein exclude assets deemed held pursuant to FAS 140 (see Note 1H). EVM also serves as the administrator of each Fund, but receives no compensation.

In addition, EVM has contractually agreed to reimburse the Funds for fees and other expenses at an annual rate of 0.15% of average weekly gross assets of each Fund during the first five full years of its operations, 0.10% of a Fund's average weekly gross assets in year six, and 0.05% in year seven. The Funds concluded their first five full years of operations on November 29, 2007. For the six months ended March 31, 2008, the investment adviser fee and expenses contractually reduced by EVM were as follows:

Fund   Investment
Adviser Fee
  Expenses
Reduced
by EVM
 
Insured Municipal II   $ 638,852     $ 135,474    
Insured California II     244,306       51,772    
Insured Florida Plus     163,204       34,545    
Insured Massachusetts     113,693       24,048    
Insured Michigan     98,821       20,893    
Insured New Jersey     167,867       35,558    
Insured New York II     163,912       34,730    
Insured Ohio     159,238       33,720    
Insured Pennsylvania     191,819       40,583    

 

Except for Trustees of the Funds who are not members of EVM's organization, officers and Trustees receive remuneration for their services to the Funds out of the investment adviser fee. Trustees of the Funds who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended March 31, 2008, no significant amounts have been deferred. Certain officers and Trustees of the Funds are officers of EVM.

5  Purchases and Sales of Investments

Purchases and sales of investments, other than short-term obligations, for the six months ended March 31, 2008 were as follows:

Fund   Purchases   Sales  
Insured Municipal II   $ 68,630,940     $ 86,106,380    
Insured California II     6,918,442       10,260,992    
Insured Florida Plus     34,613,169       33,020,707    
Insured Massachusetts           3,089,200    
Insured Michigan     1,523,080       6,176,681    
Insured New Jersey     17,200,514       23,715,142    
Insured New York II     12,357,407       16,575,772    
Insured Ohio     6,881,092       11,498,924    
Insured Pennsylvania     11,067,062       11,390,993    

 

6  Common Shares of Beneficial Interest

Common shares issued pursuant to the Funds' dividend reinvestment plan for the six months ended March 31, 2008 and the year ended September 30, 2007 were as follows:

Fund   Six Months Ended
March 31, 2008
(Unaudited)
  Year Ended
September 30, 2007
 
Insured Municipal II     3,329       1,599    
Insured California II     1,411          
Insured Massachusetts     1,113       1,147    
Insured New Jersey     1,690       1,531    
Insured New York II     667       359    
Insured Ohio     452       186    
Insured Pennsylvania     473          

 

There were no transactions in common shares by the Insured Florida Plus Fund and Insured Michigan Fund for the six months ended March 31, 2008 and the year ended September 30, 2007.

7  Federal Income Tax Basis of Investments

The cost and unrealized appreciation (depreciation) of investments of each Fund at March 31, 2008, as determined on a federal income tax basis, were as follows:

Insured Municipal Fund II  
Aggregate cost   $ 225,050,134    
Gross unrealized appreciation   $ 2,861,994    
Gross unrealized depreciation     (10,261,370 )  
Net unrealized depreciation   $ (7,399,376 )  

 


72



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

Insured California Fund II  
Aggregate cost   $ 85,848,126    
Gross unrealized appreciation   $ 706,770    
Gross unrealized depreciation     (4,462,755 )  
Net unrealized depreciation   $ (3,755,985 )  
Insured Florida Plus Fund  
Aggregate cost   $ 56,398,786    
Gross unrealized appreciation   $ 805,703    
Gross unrealized depreciation     (1,843,903 )  
Net unrealized depreciation   $ (1,038,200 )  
Insured Massachusetts Fund  
Aggregate cost   $ 39,451,992    
Gross unrealized appreciation   $ 974,731    
Gross unrealized depreciation     (1,266,799 )  
Net unrealized depreciation   $ (292,068 )  
Insured Michigan Fund  
Aggregate cost   $ 33,308,524    
Gross unrealized appreciation   $ 1,133,365    
Gross unrealized depreciation     (783,912 )  
Net unrealized appreciation   $ 349,453    
Insured New Jersey Fund  
Aggregate cost   $ 56,338,275    
Gross unrealized appreciation   $ 782,774    
Gross unrealized depreciation     (2,170,978 )  
Net unrealized depreciation   $ (1,388,204 )  
Insured New York Fund II  
Aggregate cost   $ 56,826,964    
Gross unrealized appreciation   $ 330,761    
Gross unrealized depreciation     (2,872,529 )  
Net unrealized depreciation   $ (2,541,768 )  

 

Insured Ohio Fund  
Aggregate cost   $ 55,275,694    
Gross unrealized appreciation   $ 626,128    
Gross unrealized depreciation     (2,053,724 )  
Net unrealized depreciation   $ (1,427,596 )  
Insured Pennsylvania Fund  
Aggregate cost   $ 70,043,275    
Gross unrealized appreciation   $ 1,149,054    
Gross unrealized depreciation     (2,386,991 )  
Net unrealized depreciation   $ (1,237,937 )  

 

8  Overdraft Advances

Pursuant to the respective custodian agreements, SSBT may, in its discretion, advance funds to the Funds to make properly authorized payments. When such payments result in an overdraft, the Funds are obligated to repay SSBT at the current rate of interest charged by SSBT for secured loans (currently, a rate above the Federal Funds rate). This obligation is payable on demand to SSBT. SSBT has a lien on a Fund's assets to the extent of any overdraft. At March 31, 2008, the Insured Massachusetts Fund had a payment due to SSBT pursuant to the foregoing arrangement of $29,807.

9  Financial Instruments

The Funds may 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 may include financial futures contracts and interest rate swaps 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.


73



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

A summary of obligations under these financial instruments at March 31, 2008 is as follows:

Futures Contracts

Fund   Expiration
Date
  Contracts   Position   Aggregate
Cost
  Value   Net
Unrealized
Depreciation
 
Insured
Municipal II
  06/08   438
U.S. Treasury Bond
  Short   $ (50,971,016 )   $ (52,033,033 )   $ (1,062,017 )  
Insured
California II
  06/08   67
U.S. Treasury Bond
  Short   $ (7,695,867 )   $ (7,959,391 )   $ (263,524 )  
Insured
Florida Plus
  06/08   60
U.S. Treasury Bond
  Short   $ (6,873,071 )   $ (7,127,813 )   $ (254,742 )  
Insured
Michigan
  06/08   20
U.S. Treasury Bond
  Short   $ (2,327,039 )   $ (2,375,937 )   $ (48,898 )  
Insured
New York II
  06/08   61
U.S. Treasury Bond
  Short   $ (6,987,623 )   $ (7,246,610 )   $ (258,987 )  
Insured
Ohio
  06/08   99
U.S. Treasury Bond
  Short   $ (11,398,192 )   $ (11,760,891 )   $ (362,699 )  
Insured
Pennsylvania
  06/08   105
U.S. Treasury Bond
  Short   $ (12,060,687 )   $ (12,473,672 )   $ (412,985 )  

 

Interest Rate Swaps

Insured Municipal Fund II

Counterparty   Notional
Amount
  Annual
Fixed Rate
Paid By Fund
  Floating
Rate
Paid To Fund
  Effective Date/
Termination
Date
  Net
Unrealized
Depreciation
 
Lehman Brothers, Inc.   $ 6,000,000       4.985 %   3-month
USD-LIBOR-BBA
  September 28, 2008/
September 28, 2038
  $ (263,610 )  
Merrill Lynch
Capital Services, Inc.
    4,550,000       4.9025 %   3-month
USD-LIBOR-BBA
  July 9, 2008/
July 9, 2038
    (164,254 )  
Morgan Stanley
Capital Services, Inc.
    4,150,000       5.428 %   3-month
USD-LIBOR-BBA
  September 10, 2008/
September 10, 2038
    (484,265 )  
    $ (912,129 )  

 

Insured California Fund II

Counterparty   Notional
Amount
  Annual
Fixed Rate
Paid By Fund
  Floating
Rate
Paid To Fund
  Effective Date/
Termination
Date
  Net
Unrealized
Depreciation
 
Lehman Brothers, Inc.   $ 2,275,000       4.985 %   3-month
USD-LIBOR-BBA
  September 28, 2008/
September 28, 2038
  $ (99,952 )  
Merrill Lynch
Capital Services, Inc.
    3,625,000       4.9025 %   3-month
USD-LIBOR-BBA
  July 9, 2008/
July 9, 2038
    (130,862 )  
Morgan Stanley
Capital Services, Inc.
    1,400,000       5.428 %   3-month
USD-LIBOR-BBA
  September 10, 2008/
September 10, 2038
    (163,366 )  
    $ (394,180 )  

 

Insured Florida Plus Fund

Counterparty   Notional
Amount
  Annual
Fixed Rate
Paid By Fund
  Floating
Rate
Paid To Fund
  Effective Date/
Termination
Date
  Net
Unrealized
Depreciation
 
Lehman Brothers, Inc.   $ 1,525,000       4.985 %   3-month
USD-LIBOR-BBA
  September 28, 2008/
September 28, 2038
  $ (67,001 )  
Merrill Lynch
Capital Services, Inc.
    2,000,000       4.9025 %   3-month
USD-LIBOR-BBA
  July 9, 2008/
July 9, 2038
    (72,200 )  
Morgan Stanley
Capital Services, Inc.
    900,000       5.428 %   3-month
USD-LIBOR-BBA
  September 10, 2008/
September 10, 2038
    (105,021 )  
    $ (244,222 )  

 

Insured Massachusetts Fund

Counterparty   Notional
Amount
  Annual
Fixed Rate
Paid By Fund
  Floating
Rate
Paid To Fund
  Effective Date/
Termination
Date
  Net
Unrealized
Depreciation
 
Lehman Brothers, Inc.   $ 1,050,000       4.985 %   3-month
USD-LIBOR-BBA
  September 28, 2008/
September 28, 2038
  $ (46,132 )  
Merrill Lynch
Capital Services, Inc.
    1,725,000       4.9025 %   3-month
USD-LIBOR-BBA
  July 9, 2008/
July 9, 2038
    (62,272 )  
Morgan Stanley
Capital Services, Inc.
    625,000       5.428 %   3-month
USD-LIBOR-BBA
  September 10, 2008/
September 10, 2038
    (72,931 )  
    $ (181,335 )  

 

Insured Michigan Fund

Counterparty   Notional
Amount
  Annual
Fixed Rate
Paid By Fund
  Floating
Rate
Paid To Fund
  Effective Date/
Termination
Date
  Net
Unrealized
Depreciation
 
Lehman Brothers, Inc.   $ 900,000       4.985 %   3-month
USD-LIBOR-BBA
  September 28, 2008/
September 28, 2038
  $ (39,541 )  
Merrill Lynch
Capital Services, Inc.
    675,000       4.9025 %   3-month
USD-LIBOR-BBA
  July 9, 2008/
July 9, 2038
    (24,367 )  
Morgan Stanley
Capital Services, Inc.
    350,000       5.428 %   3-month
USD-LIBOR-BBA
  September 10, 2008/
September 10, 2038
    (40,842 )  
    $ (104,750 )  

 

Insured New Jersey Fund

Counterparty   Notional
Amount
  Annual
Fixed Rate
Paid By Fund
  Floating
Rate
Paid To Fund
  Effective Date/
Termination
Date
  Net
Unrealized
Depreciation
 
Lehman Brothers, Inc.   $ 1,525,000       4.985 %   3-month
USD-LIBOR-BBA
  September 28, 2008/
September 28, 2038
  $ (67,001 )  
Merrill Lynch
Capital Services, Inc.
    2,500,000       4.9025 %   3-month
USD-LIBOR-BBA
  July 9, 2008/
July 9, 2038
    (90,250 )  
Morgan Stanley
Capital Services, Inc.
    925,000       5.428 %   3-month
USD-LIBOR-BBA
  September, 10, 2008/
September, 10, 2038
    (107,938 )  
    $ (265,189 )  

 


74



Eaton Vance Insured Municipal Bond Funds as of March 31, 2008

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

Insured New York Fund II

Counterparty   Notional
Amount
  Annual
Fixed Rate
Paid By Fund
  Floating
Rate
Paid To Fund
  Effective Date/
Termination
Date
  Net
Unrealized
Depreciation
 
Lehman Brothers, Inc.   $ 1,525,000       4.985 %   3-month
USD-LIBOR-BBA
  September 28, 2008/
September 28, 2038
  $ (67,001 )  
Merrill Lynch
Capital Services, Inc.
    2,000,000       4.9025 %   3-month
USD-LIBOR-BBA
  July 9, 2008/
July 9, 2038
    (72,199 )  
Morgan Stanley
Capital Services, Inc.
    950,000       5.428 %   3-month
USD-LIBOR-BBA
  September 10, 2008/
September 10, 2038
    (110,856 )  
    $ (250,056 )  

 

Insured Ohio Fund

Counterparty   Notional
Amount
  Annual
Fixed Rate
Paid By Fund
  Floating
Rate
Paid To Fund
  Effective Date/
Termination
Date
  Net
Unrealized
Depreciation
 
Lehman Brothers, Inc.   $ 1,475,000       4.985 %   3-month
USD-LIBOR-BBA
  September 28, 2008/
September 28, 2038
  $ (64,804 )  
Merrill Lynch
Capital Services, Inc.
    1,100,000       4.9025 %   3-month
USD-LIBOR-BBA
  July 9, 2008/
July 9, 2038
    (39,710 )  
Morgan Stanley
Capital Services, Inc.
    875,000       5.428 %   3-month
USD-LIBOR-BBA
  September 10, 2008/
September 10, 2038
    (102,104 )  
    $ (206,618 )  

 

Insured Pennsylvania Fund

Counterparty   Notional
Amount
  Annual
Fixed Rate
Paid By Fund
  Floating
Rate
Paid To Fund
  Effective Date/
Termination
Date
  Net
Unrealized
Depreciation
 
Lehman Brothers, Inc.   $ 1,450,000       4.985 %   3-month
USD-LIBOR-BBA
  September 28, 2008/
September 28, 2038
  $ (63,706 )  
Morgan Stanley
Capital Services, Inc.
    1,050,000       5.428 %   3-month
USD-LIBOR-BBA
  September 10, 2008/
September 10, 2038
    (122,525 )  
    $ (186,231 )  

 

The effective date represents the date on which the Fund and the counterparty to the interest rate swap contract begin interest payment accruals.

At March 31, 2008, the Funds had sufficient cash and/or securities to cover commitments under these contracts.

10  Recently Issued Accounting Pronouncements

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157 (FAS 157), "Fair Value Measurements". FAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. As of March 31, 2008, management does not believe the adoption of FAS 157 will impact the amounts reported in the financial statements; however, additional disclosures may be required about the inputs used to develop the measurements of fair value and the effect of certain of the measurements on changes in net assets for the period.

In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161 (FAS 161), "Disclosures about Derivative Instruments and Hedging Activities". FAS 161 requires enhanced disclosures about an entity's derivative and hedging activities, including qualitative disclosures about the objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk related contingent features in derivative instruments. FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. Management is currently evaluating the impact the adoption of FAS 161 will have on the Funds' financial statement disclosures.

11  Name Change

Effective January 1, 2008, the name of Eaton Vance Insured Florida Plus Municipal Bond Fund was changed from Eaton Vance Insured Florida Municipal Bond Fund.


75




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 1-866-439-6787.


76



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
PFPC Inc.
Attn: Eaton Vance Funds
P.O. Box 43027
Providence, RI 02940-3027
866-439-6787

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, non-diversified, management investment company and has no employees.

Number of Shareholders

As of March 31, 2008, our records indicate that there are 35, 10, 7, 7, 12, 12, 19, 16 and 44 registered shareholders for Insured Municipal Fund II, Insured California Fund II, Insured Florida Plus 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 4,954, 1,605, 1,663, 944, 988, 1,486, 1,326, 1,512 and 1,864 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 Plus 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 Plus Fund   EIF   Insured Ohio Fund   EIO  
Insured Massachusetts Fund   MAB   Insured Pennsylvania Fund   EIP  
Insured Michigan Fund   MIW          

 


77



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 April 23, 2007, 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, March and April 2007. 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;

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 each 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;

•  Copies of or descriptions of each adviser's proxy voting policies and procedures;

•  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.


78



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 April 30, 2007, the Board met ten times and the Special Committee, the Audit Committee and the Governance Committee, each of which is a Committee comprised solely of Independent Trustees, met twelve, fourteen and eight 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:

•  Eaton Vance Insured Municipal Bond Fund II

•  Eaton Vance Insured California Municipal Bond Fund II

•  Eaton Vance Insured Florida Plus Municipal Bond Fund

•  Eaton Vance Insured Massachusetts Municipal Bond Fund

•  Eaton Vance Insured Michigan Municipal Bond Fund

•  Eaton Vance Insured New Jersey Municipal Bond Fund

•  Eaton Vance Insured New York Municipal Bond Fund II

•  Eaton Vance Insured Ohio Municipal Bond Fund

•  Eaton Vance 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.


79



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 year ended September 30, 2006 for each Fund. On the basis of the foregoing and other relevant information, the Board concluded that the performance of each Fund was satisfactory.

Management Fees and Expenses

The Board reviewed contractual investment advisory fee rates, including any administrative fee rates, payable by each Fund (referred to collectively as "management fees"). As part of its review, the Board considered each Fund's management fee and total expense ratio for the year ended September 30, 2006, 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 fees 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.


80




Eaton Vance Insured Municipal Bond Funds

INVESTMENT MANAGEMENT

Eaton Vance Insured Municipal Bond Funds

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
William H. Ahern, Jr.
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 of EIP
Adam A. Weigold
Vice President and Portfolio Manager of EIP
Barbara E. Campbell
Treasurer
Maureen A. Gemma
Secretary
Paul M. O'Neil
Chief Compliance Officer
John E. Pelletier
Chief Legal Officer
  Trustees
Ralph F. Verni
Chairman
Benjamin C. Esty
Thomas E. Faust Jr.
Allen R. Freedman
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Heidi L. Steiger
Lynn A. Stout
 

 

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 Plus Fund   EIF   Insured Ohio Fund   EIO  
Insured Massachusetts Fund   MAB   Insured Pennsylvania Fund   EIP  
Insured Michigan Fund   MIW          

 


81



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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
State Street Bank and 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
(866) 439-6787

Overnight Mail
PFPC Inc.

Attn: Eaton Vance Funds
250 Royall Street
Canton, MA 02021

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



1557-5/08  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 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. 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 and Chief Operating Officer 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. An independent proxy voting service (“Agent”), currently Institutional Shareholder Services, Inc., has been retained to assist in the voting of proxies through the provision of vote analysis, implementation and recordkeeping and disclosure services.  The investment adviser will generally vote proxies through the Agent.  The Agent is required to vote all proxies and/or refer then back to the investment adviser pursuant to the Policies.  It is

 



 

generally the policy of the investment adviser to vote in accordance with the recommendation of the Agent.  The Agent shall refer to the investment adviser proxies relating to mergers and restructurings, and the disposition of assets, termination, liquidation and mergers contained in mutual fund proxies.  The investment adviser will normally vote against anti-takeover measures and other proposals designed to limit the ability of shareholders to act on possible transactions, except in the case of closed-end management investment companies.  The investment adviser generally supports management on social and environmental proposals.  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 or the economic effect on shareholders interests or the value of the portfolio holding is indeterminable or insignificant.

 

In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients.  The investment adviser’s personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to the personal of the investment adviser identified in the Policies. If such personnel expects to instruct the Agent to vote such proxies in a manner inconsistent with the guidelines of the Policies or the recommendation of the Agent, the personnel will consult with members of senior management of the investment adviser to determine if a material conflict of interests exists.  If it is determined that a material 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.

 

No Material Changes.

 

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 Pennsylvania Municipal Bond Fund

 

By:

/s/ Cynthia J. Clemson

 

 

Cynthia J. Clemson

 

President

 

 

 

 

Date:

May 12, 2008

 

 

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 12, 2008

 

 

 

By:

/s/ Cynthia J. Clemson

 

 

Cynthia J. Clemson

 

President

 

 

 

 

Date:

May 12, 2008