UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-21219
Eaton Vance Insured California Municipal Bond Fund II
(Exact Name of registrant as Specified in Charter)
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
(Address of Principal Executive Offices)
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
(617) 482-8260
(registrant’s Telephone Number)
(registrant’s Telephone Number)
September 30
Date of Fiscal Year End
Date of Fiscal Year End
September 30, 2009
Date of Reporting Period
Date of Reporting Period
Item 1. Reports to Stockholders
IMPORTANT
NOTICES REGARDING PRIVACY,
DELIVERY OF SHAREHOLDER DOCUMENTS,
PORTFOLIO HOLDINGS, AND PROXY VOTING
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 Privacy 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 applies only 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(s) (if applicable) will file a schedule of
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 at
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 September 30, 2009
TABLE OF CONTENTS
| 2 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| 7 | ||||
| 8 | ||||
| 9 | ||||
| 10 | ||||
| 11 | ||||
Financial Statements |
12 | |||
Federal Tax Information |
71 | |||
Notice to Shareholders |
72 | |||
Annual Meeting of Shareholders |
73 | |||
Dividend Reinvestment Plan |
74 | |||
Board of Trustees’ Annual Approval
of the Investment Advisory Agreements |
76 | |||
Management and Organization |
80 |
1
Eaton Vance Insured Municipal Bond Funds as of September 30, 2009
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
Eaton Vance Insured Municipal Bond Funds (the “Funds”) are closed-end funds traded on the NYSE
Amex, which are designed to provide current income exempt from regular federal income tax, federal
alternative minimum tax and, in state specific funds, state personal income taxes. The Funds invest
primarily in high-grade municipal securities that are insured as to the timely payment of principal
and interest.
Economic and Market Conditions
During the year ending September 30, 2009, the U.S. economy and the capital markets continued to
show improvement from the market upheaval that occurred in the fall of 2008 and continued through
the first quarter of 2009. After contracting in the first three quarters of the Funds’ fiscal year,
the U.S. economy showed positive growth in the year’s final quarter. According to the U.S.
Department of Commerce, the economy declined at annualized rates of 5.4%, 6.4% and 0.7% in the
fourth quarter of 2008 and the first and second quarters of 2009, respectively. In the third
quarter of 2009, the economy grew at an estimated annualized rate of 3.5%.
In the first three months of the period, the capital markets were shaken by unprecedented events.
Just prior to the beginning of the period, in September 2008, the federal government had taken
control of federally chartered mortgage giants Fannie Mae and Freddie Mac. During the same month,
Lehman Brothers filed for bankruptcy protection; Bank of America announced its acquisition of
Merrill Lynch; and Goldman Sachs and Morgan Stanley petitioned the U.S. Federal Reserve (the Fed)
to become bank holding companies, a step that brings greater regulation but also easier access to
credit. These actions redefined the Wall Street landscape. In response, the Fed lowered the federal
funds rate to a range of 0.0% to 0.25% from 2.00% as of September 30, 2008, and took extraordinary
action through a variety of innovative lending techniques in an attempt to ease the credit crisis.
During calendar year 2009, the municipal market witnessed a significant rebound as headline risk
abated,
demand returned from investors who had sought the relative safety of Treasury bonds in 2008, and
cautious optimism spread on signs of a mildly improving economy. The renewed appetite for municipal
bonds was buoyed by provisions in the American Recovery and Reinvestment Act of 2009 aimed at
supporting the municipal market. The new Build America Bonds Program gave municipal issuers access
to the taxable debt markets, providing the potential for lower net borrowing costs and reducing the
supply of traditional tax-exempt bonds. The federal stimulus program also provided direct cash
subsidies to municipalities that were facing record budget deficits. The result of these events was
a dramatic rally for the sector as yields fell and prices rose across the yield curve.
During the year ending September 30, 2009, municipals continued the rally that had begun in
mid-December 2008, posting strong returns for the period. The Barclays Capital Municipal Bond
Index — a broad-based, unmanaged index of municipal bonds — posted a return of 14.85% for the
period, and the Barclays Capital Long (22+) Municipal Bond Index – a sub-index (consisting of bonds
with maturities of at least 22 years) of the Barclays Capital Municipal Bonds Index – gained
19.78%.1
Management Discussion
During the year ending September 30, 2009, the Funds outperformed their respective benchmark
Indices (at NAV), as reflected on the Fund-specific pages following this letter. Given the
combination of the Funds’ objective of providing tax-exempt income and the historical upward slope
of the municipal yield curve, the Funds generally hold longer-maturity bonds relative to the broad
market and many of our competitors. Management’s bias toward longer maturities was the basis for
much of the Funds’ relative outperformance for the period, given the significant price movement of
the longer end of the municipal yield curve. The Funds generally invest in bonds with stated
maturities of 10 years or longer, as longer-maturity bonds historically have provided greater
tax-exempt income for investors than shorter-maturity bonds. While the price
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.
| 1 | It is not possible to invest directly in an Index. The Indices’ total returns do not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. | |
| Private insurance does not decrease the risk of loss of principal associated with this investment. | ||
| 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.
2
Eaton Vance Insured Municipal Bond Funds as of September 30, 2009
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
declines experienced by municipals in 2008 were most pronounced on the long end of the yield curve,
longer-maturity bonds outperformed shorter maturities during the first half of 2009, thus providing
the basis for much of the Funds’ underperformance in the earlier part of the period and significant
outperformance later in the fiscal year, respectively.
Management employed leverage in the Funds, through which additional exposure to the municipal
market was achieved. Leverage has the impact of magnifying the Funds’ exposure to their leveraged
investments in both up and down markets.
As we move ahead, we recognize that many state governments, particularly California, face
significant budget deficits that are driven primarily by a steep decline in tax revenues. We will
continue to monitor any new developments as state legislatures formulate solutions to address these
fiscal problems. As in all environments, we maintain our long-term perspective on the markets
against the backdrop of relatively short periods of market volatility. We will continue to manage
municipals with the same income-focused, relative value approach we have always employed. We
believe that this approach, which is based on credit research and decades of experience in the
municipal market, has served municipal investors well over the long term.
A Note Regarding The Use Of Leverage
The Funds employ leverage through the issuance of Auction Preferred Shares (APS) and/or the use of
residual interest bond (RIB) financing.1 Each Fund’s APS and/or RIB percentage leverage
as of September 30, 2009, is reflected on the Fund-specific pages following this letter. The
leverage created by APS and RIB investments provides an opportunity for increased income but, at
the same time, creates special risks (including the likelihood of greater volatility of net asset
value and share price of the common shares).
During the period, certain of the Funds redeemed a portion of their outstanding APS to reduce the
amount of the Funds’ financial leverage. Information relating to these redemptions is contained in
Note 2 to the Financial Statements.
| 1 | See Note 1H to the Financial Statements for more information on RIB investments. |
3
Eaton Vance Insured Municipal Bond Fund II as of September 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: William H. Ahern, Jr., CFA
Performance1
| NYSE Amex Symbol | EIV | |||
| Average Annual Total Returns (by market price) | ||||
One Year |
23.88 | % | ||
Five Years |
4.50 | |||
Life of Fund (11/29/02) |
5.75 | |||
| Average Annual Total Returns (by net asset value) | ||||
One Year |
26.08 | % | ||
Five Years |
3.43 | |||
Life of Fund (11/29/02) |
5.18 | |||
Premium/(Discount) to NAV |
3.80 | % | ||
Market Yields
Market Yield2 |
6.90 | % | ||
Taxable-Equivalent Market Yield3 |
10.62 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital Long (22+) Municipal Bond Index | ||||
One Year |
19.78 | % | ||
Five Years |
4.88 | |||
Life of Fund (11/30/02) |
5.40 | |||
Lipper Averages5 (Average Annual Total Returns)
| Lipper Insured Municipal Debt Funds (Leveraged) Classification (by net asset value) | ||||
One Year |
23.88 | % | ||
Five Years |
4.37 | |||
Life of Fund (11/30/02) |
5.31 | |||
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 9/30/09 is as follows, and the average rating is AA. |
AAA |
41.2 | % | ||
AA |
27.3 | % | ||
A |
21.7 | % | ||
BBB |
8.4 | % | ||
CCC |
0.5 | % | ||
Not Rated |
0.9 | % |
Fund Statistics7
• Number of Issues: |
96 | |||
• Average Maturity: |
26.4 | years | ||
• Average Effective Maturity: |
17.0 | years | ||
• Average Call Protection: |
10.0 | years | ||
• Average Dollar Price: |
$ | 96.02 | ||
• APS Leverage**: |
19.4 | % | ||
• RIB Leverage**: |
24.9 | % |
Past performance is no guarantee of future results. Returns are historical and are
calculated by determining the percentage change in net asset value or market
price (as applicable) with all distributions reinvested. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Performance is for the stated time period
only; due to market volatility, the Fund’s current performance may be lower or
higher than the quoted return. For performance as of the most recent month end,
please refer to www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. | |
| 1 | Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the most recent dividend per share by the market price at the end of the 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 24, 24 and 24 funds for the 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. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 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. |
4
Eaton Vance Insured California Municipal Bond Fund II as of September 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: Cynthia J. Clemson
Performance1
| NYSE Amex Symbol | EIA | |||
| Average Annual Total Returns (by market price) | ||||
One Year |
31.17 | % | ||
Five Years |
2.94 | |||
Life of Fund (11/29/02) |
4.18 | |||
| Average Annual Total Returns (by net asset value) | ||||
One Year |
23.06 | % | ||
Five Years |
3.76 | |||
Life of Fund (11/29/02) |
4.71 | |||
Premium/(Discount) to NAV |
-3.40 | % | ||
Market Yields
Market Yield2 |
6.81 | % | ||
Taxable-Equivalent Market Yield3 |
11.71 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
One Year |
14.85 | % | 19.78 | % | ||||
Five Years |
4.78 | 4.88 | ||||||
Life of Fund (11/30/02) |
5.06 | 5.40 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper Single State Insured Municipal Debt Funds Classification (by net asset value) | ||||
One Year |
22.62 | % | ||
Five Years |
4.67 | |||
Life of Fund (11/30/02) |
5.51 | |||
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 9/30/09 is as follows, and the average rating is AA. |
AAA |
26.9 | % | ||
AA |
41.7 | % | ||
A |
26.8 | % | ||
BBB |
2.4 | % | ||
Not Rated |
2.2 | % |
Fund Statistics7
• Number of Issues: |
61 | |||
• Average Maturity: |
23.3 | years | ||
• Average Effective Maturity: |
13.9 | years | ||
• Average Call Protection: |
7.4 | years | ||
• Average Dollar Price: |
$ | 88.55 | ||
• APS Leverage**: |
30.1 | % | ||
• RIB Leverage**: |
11.2 | % |
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund’s current performance may be lower or higher than
the quoted return. For performance as of the most recent month end, please refer to
www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. | |
| 1 | Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the most recent dividend per share by the market price at the end of the period and annualizing the result. 3 Taxable-equivalent figure assumes a maximum 41.86% 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 Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. 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 Single State Insured Municipal Debt Funds Classification (closed-end) contained 36, 36 and 36 funds for the 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. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 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. |
5
Eaton Vance Insured Massachusetts Municipal Bond Fund as of September 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: Robert B. MacIntosh, CFA
Performance1
| NYSE Amex Symbol | MAB | |||
| Average Annual Total Returns (by market price) | ||||
One Year |
17.59 | % | ||
Five Years |
4.99 | |||
Life of Fund (11/29/02) |
6.83 | |||
| Average Annual Total Returns (by net asset value) | ||||
One Year |
28.42 | % | ||
Five Years |
5.13 | |||
Life of Fund (11/29/02) |
6.22 | |||
Premium/(Discount) to NAV |
4.03 | % | ||
Market Yields
Market Yield2 |
5.44 | % | ||
Taxable-Equivalent Market Yield3 |
8.84 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
One Year |
14.85 | % | 19.78 | % | ||||
Five Years |
4.78 | 4.88 | ||||||
Life of Fund (11/30/02) |
5.06 | 5.40 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper Single State Insured Municipal Debt Funds Classification (by net asset value) | ||||
One Year |
22.62 | % | ||
Five Years |
4.67 | |||
Life of Fund (11/30/02) |
5.51 | |||
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 9/30/09 is as follows, and the average rating is AA-. |
AAA |
22.3 | % | ||
AA |
31.8 | % | ||
A |
31.9 | % | ||
BBB |
3.6 | % | ||
Not Rated |
10.4 | % |
Fund Statistics7
• Number of Issues: |
45 | |||
• Average Maturity: |
25.6 | years | ||
• Average Effective Maturity: |
14.0 | years | ||
• Average Call Protection: |
12.6 | years | ||
• Average Dollar Price: |
$ | 103.18 | ||
• APS Leverage**: |
32.5 | % | ||
• RIB Leverage**: |
5.9 | % |
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund’s current performance may be lower or higher than
the quoted return. For performance as of the most recent month end, please refer to
www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. | |
| 1 | Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the most recent dividend per share by the market price at the end of the 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 Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. 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 Single State Insured Municipal Debt Funds Classification (closed-end) contained 36, 36 and 36 funds for the 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. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 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. |
6
Eaton Vance Insured Michigan Municipal Bond Fund as of September 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: William H. Ahern, Jr., CFA
Performance1
| NYSE Amex Symbol | MIW | |||
| Average Annual Total Returns (by market price) | ||||
One Year |
42.90 | % | ||
Five Years |
3.47 | |||
Life of Fund (11/29/02) |
5.38 | |||
| Average Annual Total Returns (by net asset value) | ||||
One Year |
25.29 | % | ||
Five Years |
5.57 | |||
Life of Fund (11/29/02) |
6.28 | |||
Premium/(Discount) to NAV |
-5.64 | % | ||
Market Yields
Market Yield2 |
6.22 | % | ||
Taxable-Equivalent Market Yield3 |
10.00 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
One Year |
14.85 | % | 19.78 | % | ||||
Five Years |
4.78 | 4.88 | ||||||
Life of Fund (11/30/02) |
5.06 | 5.40 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper Single State Insured Municipal Debt Funds Classification (by net asset value) | ||||
One Year |
22.62 | % | ||
Five Years |
4.67 | |||
Life of Fund (11/30/02) |
5.51 | |||
Rating Distribution*6
By total investments
| * | There were no special purpose vehicles in which the Fund held a residual interest as of 9/30/09. The average rating is AA-. |
Fund Statistics
• Number of Issues: |
40 | |||
• Average Maturity: |
21.1 | years | ||
• Average Effective Maturity: |
9.5 | years | ||
• Average Call Protection: |
6.9 | years | ||
• Average Dollar Price: |
$ | 94.08 | ||
• APS Leverage**: |
37.4 | % |
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund’s current performance may be lower or higher than
the quoted return. For performance as of the most recent month end, please refer to
www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS. | |
| 1 | Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 effects of APS outstanding, which is a form of investment leverage. Use of leverage creates an opportunity for income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the most recent dividend per share by the market price at the end of the 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 Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. 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 Single State Insured Municipal Debt Funds Classification (closed-end) contained 36, 36 and 36 funds for the 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. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. |
7
Eaton Vance Insured New Jersey Municipal Bond Fund as of September 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: Robert B. MacIntosh, CFA
Performance1
| NYSE Amex Symbol | EMJ | |||
| Average Annual Total Returns (by market price) | ||||
One Year |
33.95 | % | ||
Five Years |
5.28 | |||
Life of Fund (11/29/02) |
6.95 | |||
| Average Annual Total Returns (by net asset value) | ||||
One Year |
31.84 | % | ||
Five Years |
5.81 | |||
Life of Fund (11/29/02) |
6.84 | |||
Premium/(Discount) to NAV |
0.75 | % | ||
Market Yields
Market Yield2 |
6.14 | % | ||
Taxable-Equivalent Market Yield3 |
10.58 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
One Year |
14.85 | % | 19.78 | % | ||||
Five Years |
4.78 | 4.88 | ||||||
Life of Fund (11/30/02) |
5.06 | 5.40 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper Single State Insured Municipal Debt Funds Classification (by net asset value) | ||||
One Year |
22.62 | % | ||
Five Years |
4.67 | |||
Life of Fund (11/30/02) |
5.51 | |||
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 9/30/09 is as follows, and the average rating is AA. |
AAA |
33.9 | % | ||
AA |
37.3 | % | ||
A |
19.5 | % | ||
BBB |
9.3 | % |
Fund Statistics7
• Number of Issues: |
64 | |||
• Average Maturity: |
22.5 | years | ||
• Average Effective Maturity: |
14.4 | years | ||
• Average Call Protection: |
11.5 | years | ||
• Average Dollar Price: |
$ | 92.65 | ||
• APS Leverage**: |
30.8 | % | ||
• RIB Leverage**: |
10.0 | % |
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund’s current performance may be lower or higher than
the quoted return. For performance as of the most recent month end, please refer to
www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. | |
| 1 | Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the most recent dividend per share by the market price at the end of the period and annualizing the result. 3 Taxable-equivalent figure assumes a maximum 41.99% 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 Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. 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 Single State Insured Municipal Debt Funds Classification (closed-end) contained 36, 36 and 36 funds for the 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. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 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. |
8
Eaton Vance Insured New York Municipal Bond Fund II as of September 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: Craig R. Brandon, CFA
Performance1
| NYSE Amex Symbol | NYH | |||
| Average Annual Total Returns (by market price) | ||||
One Year |
37.98 | % | ||
Five Years |
5.26 | |||
Life of Fund (11/29/02) |
5.94 | |||
| Average Annual Total Returns (by net asset value) | ||||
One Year |
26.71 | % | ||
Five Years |
4.63 | |||
Life of Fund (11/29/02) |
5.95 | |||
Premium/(Discount) to NAV |
-0.07 | % | ||
Market Yields
Market Yield2 |
6.41 | % | ||
Taxable-Equivalent Market Yield3 |
10.83 | |||
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
One Year |
14.85 | % | 19.78 | % | ||||
Five Years |
4.78 | 4.88 | ||||||
Life of Fund (11/30/02) |
5.06 | 5.40 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper Single State Insured Municipal Debt Funds Classification (by net asset value) | ||||
One Year |
22.62 | % | ||
Five Years |
4.67 | |||
Life of Fund (11/30/02) |
5.51 | |||
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 9/30/09 is as follows, and the average rating is AA-. |
AAA |
27.4 | % | ||
AA |
34.3 | % | ||
A |
26.3 | % | ||
BBB |
8.1 | % | ||
Not Rated |
3.9 | % |
Fund Statistics7
• Number of Issues: |
67 | |||
• Average Maturity: |
24.0 | years | ||
• Average Effective Maturity: |
14.6 | years | ||
• Average Call Protection: |
9.9 | years | ||
• Average Dollar Price: |
$ | 97.26 | ||
• APS Leverage**: |
22.3 | % | ||
• RIB Leverage**: |
19.1 | % |
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund’s current performance may be lower or higher than
the quoted return. For performance as of the most recent month end, please refer to
www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. | |
| 1 | Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the most recent dividend per share by the market price at the end of the 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 Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. 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 Single State Insured Municipal Debt Funds Classification (closed-end) contained 36, 36 and 36 funds for the 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. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 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. |
9
Eaton Vance Insured Ohio Municipal Bond Fund as of
September 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: William H. Ahern, Jr., CFA
Performance1
| NYSE Amex Symbol | EIO | |||
| Average Annual Total Returns (by market price) | ||||
One Year |
25.48 | % | ||
Five Years |
2.57 | |||
Life of Fund (11/29/02) |
4.45 | |||
| Average Annual Total Returns (by net asset value) | ||||
One Year |
22.05 | % | ||
Five Years |
2.92 | |||
Life of Fund (11/29/02) |
4.14 | |||
Premium/(Discount) to NAV |
2.08 | % | ||
Market Yields
Market Yield2 |
5.60 | % | ||
Taxable-Equivalent Market Yield3 |
9.16 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
One Year |
14.85 | % | 19.78 | % | ||||
Five Years |
4.78 | 4.88 | ||||||
Life of Fund (11/30/02) |
5.06 | 5.40 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper Single State Insured Municipal Debt Funds Classification (by net asset value) | ||||
One Year |
22.62 | % | ||
Five Years |
4.67 | |||
Life of Fund (11/30/02) |
5.51 | |||
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 9/30/09 is as follows, and the average rating is AA-. |
AAA |
34.9 | % | ||
AA |
21.3 | % | ||
A |
31.2 | % | ||
BBB |
6.4 | % | ||
Not Rated |
6.2 | % |
Fund Statistics7
• Number of Issues: |
52 | |||
• Average Maturity: |
22.6 | years | ||
• Average Effective Maturity: |
11.2 | years | ||
• Average Call Protection: |
8.8 | years | ||
• Average Dollar Price: |
$ | 91.39 | ||
• APS Leverage**: |
32.7 | % | ||
• RIB Leverage**: |
4.5 | % |
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund’s current performance may be lower or higher than
the quoted return. For performance as of the most recent month end, please refer to
www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. Floating Rate Notes in both calculations reflect the effect of RIBs purchased in secondary market transactions. | |
| 1 | Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the most recent dividend per share by the market price at the end of the period and annualizing the result. 3 Taxable-equivalent figure assumes a maximum 38.85% 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 Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. 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 Single State Insured Municipal Debt Funds Classification (closed-end) contained 36, 36 and 36 funds for the 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. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 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. |
10
Eaton Vance Insured Pennsylvania Municipal Bond Fund as of September 30, 2009
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Portfolio Manager: Adam A. Weigold, CFA
Performance1
| NYSE Amex Symbol | EIP | |||
| Average Annual Total Returns (by market price) | ||||
One Year |
20.09 | % | ||
Five Years |
6.02 | |||
Life of Fund (11/29/02) |
6.92 | |||
| Average Annual Total Returns (by net asset value) | ||||
One Year |
27.36 | % | ||
Five Years |
5.80 | |||
Life of Fund (11/29/02) |
6.15 | |||
Premium/(Discount) to NAV |
5.04 | % | ||
Market Yields
Market Yield2 |
5.67 | % | ||
Taxable-Equivalent Market Yield3 |
9.00 |
Index Performance4 (Average Annual Total Returns)
| Barclays Capital | Barclays Capital Long (22+) | |||||||
| Municipal Bond Index | Municipal Bond Index | |||||||
One Year |
14.85 | % | 19.78 | % | ||||
Five Years |
4.78 | 4.88 | ||||||
Life of Fund (11/30/02) |
5.06 | 5.40 | ||||||
Lipper Averages5 (Average Annual Total Returns)
| Lipper Single State Insured Municipal Debt Funds Classification (by net asset value) | ||||
One Year |
22.62 | % | ||
Five Years |
4.67 | |||
Life of Fund (11/30/02) |
5.51 | |||
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 9/30/09 is as follows, and the average rating is A+. |
AAA |
24.1 | % | ||
AA |
22.5 | % | ||
A |
29.1 | % | ||
BBB |
7.5 | % | ||
Not Rated |
16.8 | % |
Fund Statistics7
• Number of Issues: |
57 | |||
• Average Maturity: |
23.2 | years | ||
• Average Effective Maturity: |
14.4 | years | ||
• Average Call Protection: |
9.3 | years | ||
• Average Dollar Price: |
$ | 94.12 | ||
• APS Leverage**: |
33.7 | % | ||
• RIB Leverage**: |
2.9 | % |
Past performance is no guarantee of future results. Returns are historical and are calculated by
determining the percentage change in net asset value or market price (as applicable) with all
distributions reinvested. Investment return and principal value will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Performance is for the stated time
period only; due to market volatility, the Fund’s current performance may be lower or higher than
the quoted return. For performance as of the most recent month end, please refer to
www.eatonvance.com.
| ** | APS leverage represents the liquidation value of the Fund’s Auction Preferred Shares (APS) outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. RIB leverage represents the amount of Floating Rate Notes outstanding at 9/30/09 as a percentage of the Fund’s net assets applicable to common shares plus APS and Floating Rate Notes. | |
| 1 | Returns are historical and are calculated by determining the percentage change in market price or net asset value (as applicable) with all distributions reinvested. The Fund’s performance at market price will differ from its results at NAV. Although market price performance generally reflects investment results over time, during shorter periods, returns at market 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 effects of APS outstanding and RIB investments, which are forms of investment leverage. Use of leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares). 2 The Fund’s market yield is calculated by dividing the most recent dividend per share by the market price at the end of the 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 Indices’ total returns do not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Indices. 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 Single State Insured Municipal Debt Funds Classification (closed-end) contained 36, 36 and 36 funds for the 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. Although the investment adviser considers ratings when making investment decisions, it performs its own credit and investment analysis and does not rely primarily on the ratings assigned by the rating services. Credit quality can change from time to time, and recently issued credit ratings may not fully reflect the actual risks posed by a particular security or the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. 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. |
11
Eaton Vance
Insured Municipal Bond
Fund II as
of September 30, 2009
PORTFOLIO OF INVESTMENTS
| Tax-Exempt Investments — 177.9% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Electric Utilities — 0.6% | ||||||||||
| $ | 1,600 | Sabine River Authority, TX, (TXU Energy Co. LLC), 5.20%, 5/1/28 | $ | 767,456 | ||||||
| $ | 767,456 | |||||||||
| General Obligations — 2.8% | ||||||||||
| $ | 3,500 | New York, NY, 5.25%, 1/15/33(1) | $ | 3,637,830 | ||||||
| $ | 3,637,830 | |||||||||
| Hospital — 5.3% | ||||||||||
| $ | 60 | Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/25 | $ | 54,025 | ||||||
| 900 | Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/35 | 754,695 | ||||||||
| 750 | Camden County, NJ, Improvement Authority, (Cooper Health System), 5.25%, 2/15/27 | 682,230 | ||||||||
| 500 | Hawaii Department of Budget and Finance, (Hawaii Pacific Health), 5.60%, 7/1/33 | 502,975 | ||||||||
| 1,285 | Highlands County, FL, Health Facilities Authority, (Adventist Health System), 5.25%, 11/15/36 | 1,308,606 | ||||||||
| 2,200 | Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/38 | 376,486 | ||||||||
| 5,000 | Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/39 | 804,500 | ||||||||
| 990 | Lehigh County, PA, General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32 | 996,257 | ||||||||
| 1,440 | Michigan Hospital Finance Authority, (Henry Ford Health System), 5.00%, 11/15/38 | 1,322,294 | ||||||||
| $ | 6,802,068 | |||||||||
| Industrial Development Revenue — 7.4% | ||||||||||
| $ | 4,750 |
Liberty Development Corp., NY, (Goldman Sachs Group, Inc.), 5.25%, 10/1/35(1) |
$ | 4,893,773 | ||||||
| 4,790 | St. John Baptist Parish, LA, (Marathon Oil Corp.), 5.125%, 6/1/37 | 4,614,207 | ||||||||
| $ | 9,507,980 | |||||||||
| Insured-Electric Utilities — 15.3% | ||||||||||
| $ | 1,000 |
American Municipal Power-Ohio, Inc., OH, (Prairie State Energy), (AGC), 5.75%, 2/15/39 |
$ | 1,095,250 | ||||||
| 21,140 | Chelan County, WA, Public Utility District No. 1, (Columbia River), (NPFG), 0.00%, 6/1/23 | 11,580,069 | ||||||||
| 2,900 | JEA, FL, Electric System Revenue, (FSA), 5.00%, 10/1/34 | 2,901,653 | ||||||||
| 2,460 | Mississippi Development Bank, (Municipal Energy), (XLCA), 5.00%, 3/1/41 | 2,276,902 | ||||||||
| 1,595 | South Carolina Public Service Authority, (Santee Cooper), (BHAC), 5.50%, 1/1/38 | 1,808,092 | ||||||||
| $ | 19,661,966 | |||||||||
| Insured-Escrowed / Prerefunded — 0.1% | ||||||||||
| $ | 35 | Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), Prerefunded to 11/15/16, 5.25%, 11/15/36 | $ | 41,668 | ||||||
| 82 | Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), Prerefunded to 11/15/16, 5.25%, 11/15/36(1) | 97,049 | ||||||||
| $ | 138,717 | |||||||||
| Insured-General Obligations — 17.6% | ||||||||||
| $ | 2,550 | Butler County, KS, Unified School District No. 394, (FSA), 3.50%, 9/1/24 | $ | 2,561,654 | ||||||
| 12,165 | Chabot-Las Positas, CA, Community College District, (AMBAC), 0.00%, 8/1/43 | 1,556,025 | ||||||||
| 17,000 | Coast Community College District, CA, (Election of 2002), (FSA), 0.00%, 8/1/33 | 4,492,250 | ||||||||
| 2,800 | District of Columbia, (FGIC), (NPFG), 4.75%, 6/1/33 | 2,883,272 | ||||||||
| 1,500 | Goodyear, AZ, (NPFG), 3.00%, 7/1/26 | 1,364,445 | ||||||||
| 2,000 | Los Angeles, CA, Unified School District, (AGC), 5.00%, 1/1/34 | 2,118,620 | ||||||||
| 1,250 | Philadelphia, PA, (AGC), 7.00%, 7/15/28 | 1,520,775 | ||||||||
| 5,500 | Washington, (FSA), 5.00%, 7/1/25(1) | 6,061,550 | ||||||||
| $ | 22,558,591 | |||||||||
| Insured-Hospital — 27.1% | ||||||||||
| $ | 1,750 | Arizona Health Facilities Authority, (Banner Health), (BHAC), 5.375%, 1/1/32 | $ | 1,895,845 | ||||||
| 1,500 | California Statewide Communities Development Authority, (Sutter Health), (FSA), 5.05%, 8/15/38(1) | 1,545,345 | ||||||||
| 1,695 | Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.125%, 11/15/39 | 1,798,310 | ||||||||
| 450 | Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.25%, 11/15/44 | 477,041 | ||||||||
| 2,200 | Colorado Health Facilities Authority, (Catholic Health), (FSA), 5.10%, 10/1/41(1) | 2,308,988 | ||||||||
| 3,418 | Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), 5.25%, 11/15/36(1) | 3,646,049 | ||||||||
| 1,485 | Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), 5.25%, 11/15/36 | 1,583,856 | ||||||||
| 1,490 | Highlands County, FL, Health Facilities Authority, (Adventist Health System), (NPFG), 5.00%, 11/15/35 | 1,491,475 | ||||||||
12
Eaton Vance
Insured Municipal Bond
Fund II as
of September 30, 2009
PORTFOLIO OF
INVESTMENTS CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
|
Insured-Hospital (continued)
|
||||||||||
| $ | 2,500 | Illinois Finance Authority, (Children’s Memorial Hospital), (AGC), 5.25%, 8/15/47(1) | $ | 2,569,100 | ||||||
| 2,500 | Indiana Health and Educational Facility Finance Authority, (Sisters of St. Francis Health Services), (FSA), 5.25%, 5/15/41(1) | 2,578,300 | ||||||||
| 2,090 | Maricopa County, AZ, Industrial Development Authority, (Catholic Healthcare West), (BHAC), 5.25%, 7/1/32 | 2,246,687 | ||||||||
| 1,000 | New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36(1) | 1,062,490 | ||||||||
| 1,385 | New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series II, (AGC), 5.00%, 7/1/38 | 1,460,178 | ||||||||
| 500 | New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series V, (AGC), 5.00%, 7/1/38(1) | 527,140 | ||||||||
| 2,245 | New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38 | 2,427,855 | ||||||||
| 2,750 | New York Dormitory Authority, (Health Quest Systems), (AGC), 5.125%, 7/1/37(1) | 2,898,060 | ||||||||
| 1,545 | Washington Health Care Facilities Authority, (MultiCare Health System), (AGC), 6.00%, 8/15/39 | 1,692,409 | ||||||||
| 2,300 | Washington Health Care Facilities Authority, (Providence Health Care), (FSA), 5.25%, 10/1/33 | 2,491,222 | ||||||||
| $ | 34,700,350 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 8.9% | ||||||||||
| $ | 1,000 | Essex County, NJ, Improvement Authority, (NPFG), 5.50%, 10/1/30 | $ | 1,186,450 | ||||||
| 4,600 | Hudson Yards, NY, Infrastructure Corp., (NPFG), 4.50%, 2/15/47 | 4,194,372 | ||||||||
| 875 | New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34 | 983,246 | ||||||||
| 3,250 | San Diego County, CA, Water Authority, Certificates of Participation, (FSA), 5.00%, 5/1/38(1) | 3,362,223 | ||||||||
| 1,500 | Tri-Creek Middle School Building Corp., IN, (FSA), 5.25%, 1/15/34(1) | 1,619,265 | ||||||||
| $ | 11,345,556 | |||||||||
| Insured-Other Revenue — 4.1% | ||||||||||
| $ | 2,540 | Harris County-Houston, TX, Sports Authority, (NPFG), 0.00%, 11/15/34 | $ | 457,302 | ||||||
| 3,650 | Massachusetts Development Finance Agency, (NPFG), 5.125%, 2/1/34 | 3,543,529 | ||||||||
| 1,000 | New York, NY, Industrial Development Agency, (Yankee Stadium), (AGC), 7.00%, 3/1/49 | 1,235,350 | ||||||||
| $ | 5,236,181 | |||||||||
|
Insured-Private
Education — 3.9%
|
||||||||||
| $ | 2,000 | Massachusetts Development Finance Agency, (Boston University), (AMBAC), (BHAC), 5.00%, 10/1/35 | $ | 2,101,440 | ||||||
| 2,500 | Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59 | 2,923,450 | ||||||||
| $ | 5,024,890 | |||||||||
| Insured-Public Education — 3.2% | ||||||||||
| $ | 3,900 | University of South Alabama, (BHAC), 5.00%, 8/1/38 | $ | 4,151,823 | ||||||
| $ | 4,151,823 | |||||||||
| Insured-Sewer Revenue — 0.5% | ||||||||||
| $ | 590 | Marysville, OH, Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/46 | $ | 596,071 | ||||||
| $ | 596,071 | |||||||||
| Insured-Solid Waste — 1.0% | ||||||||||
| $ | 740 | Palm Beach County, FL, Solid Waste Authority, (BHAC), 5.00%, 10/1/24 | $ | 826,706 | ||||||
| 425 | Palm Beach County, FL, Solid Waste Authority, (BHAC), 5.00%, 10/1/26 | 469,718 | ||||||||
| $ | 1,296,424 | |||||||||
| Insured-Special Tax Revenue — 14.0% | ||||||||||
| $ | 5,365 | Metropolitan Pier and Exposition Authority, IL, (McCormick Place Expansion), (NPFG), 0.00%, 12/15/34 | $ | 1,417,594 | ||||||
| 4,000 | Metropolitan Pier and Exposition Authority, IL, (McCormick Place Expansion), (NPFG), 5.25%, 6/15/42 | 4,116,280 | ||||||||
| 3,000 | Miami-Dade County, FL, Professional Sports Franchise Facilities, (AGC), 0.00%, 10/1/39 | 1,766,250 | ||||||||
| 2,500 |
New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45 |
2,400,300 | ||||||||
| 2,060 |
New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44 |
2,055,138 | ||||||||
| 34,675 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | 2,621,430 | ||||||||
| 6,085 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 885,550 | ||||||||
| 12,065 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 1,651,457 | ||||||||
| 7,595 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 972,996 | ||||||||
| $ | 17,886,995 | |||||||||
13
Eaton Vance
Insured Municipal Bond
Fund II as
of September 30, 2009
PORTFOLIO OF
INVESTMENTS CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Insured-Student Loan — 2.0% | ||||||||||
| $ | 2,395 | Maine Educational Loan Authority, (AGC), 5.625%, 12/1/27 | $ | 2,536,736 | ||||||
| $ | 2,536,736 | |||||||||
| Insured-Transportation — 23.6% | ||||||||||
| $ | 7,900 | E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/22 | $ | 3,728,563 | ||||||
| 10,000 | Maryland Transportation Authority, (FSA), 5.00%, 7/1/41(1) | 10,766,250 | ||||||||
| 1,000 | Metropolitan Washington, D.C., Airports Authority, (BHAC), 5.00%, 10/1/24 | 1,121,640 | ||||||||
| 535 | Metropolitan Washington, D.C., Airports Authority, (BHAC), 5.00%, 10/1/29 | 585,215 | ||||||||
| 5,195 | Minneapolis and St. Paul, MN, Metropolitan Airports Commission, (FGIC), (NPFG), 4.50%, 1/1/32 | 5,239,158 | ||||||||
| 13,885 | Nevada Department of Business and Industry, (Las Vegas Monorail -1st Tier), (AMBAC), 0.00%, 1/1/20 | 1,592,471 | ||||||||
| 1,040 | New Jersey Transportation Trust Fund Authority, (AGC), 5.50%, 12/15/38 | 1,179,682 | ||||||||
| 255 | North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.50%, 1/1/29 | 277,529 | ||||||||
| 290 | North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.75%, 1/1/39 | 313,516 | ||||||||
| 5,605 | Texas Turnpike Authority, (AMBAC), 5.00%, 8/15/42 | 5,469,471 | ||||||||
| $ | 30,273,495 | |||||||||
| Insured-Water and Sewer — 17.7% | ||||||||||
| $ | 1,620 | Atlanta, GA, Water and Wastewater, (NPFG), 5.00%, 11/1/39 | $ | 1,610,442 | ||||||
| 670 | Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/26 | 757,670 | ||||||||
| 420 | Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/27 | 471,857 | ||||||||
| 660 | Bossier City, LA, Utilities Revenue, (BHAC), 5.50%, 10/1/38 | 731,597 | ||||||||
| 1,910 | Chicago, IL, Wastewater Transmission Revenue, (BHAC), 5.50%, 1/1/38 | 2,136,622 | ||||||||
| 1,250 | District of Columbia Water and Sewer Authority, (AGC), 5.00%, 10/1/34(1) | 1,329,138 | ||||||||
| 435 | Houston, TX, Utility System, (BHAC), (FSA), 5.00%, 11/15/33 | 468,969 | ||||||||
| 2,205 | New York, NY, Municipal Water Finance Authority, (BHAC), 5.75%, 6/15/40 | 2,550,325 | ||||||||
| 3,195 | Ogden City, UT, Sewer and Water, (FSA), 4.50%, 6/15/38(2) | 3,174,424 | ||||||||
| 10,885 | Pearland, TX, Waterworks and Sewer Systems, (NPFG), 3.50%, 9/1/31 | 9,418,899 | ||||||||
| $ | 22,649,943 | |||||||||
|
Insured-Water
Revenue — 21.1%
|
||||||||||
| $ | 7,000 | Contra Costa, CA, Water District, (FSA), 5.00%, 10/1/32(1) | $ | 7,319,140 | ||||||
| 5,500 | Los Angeles, CA, Department of Water and Power, (BHAC), (FGIC), 5.00%, 7/1/43(1) | 5,626,555 | ||||||||
| 6,110 | Massachusetts Water Resources Authority, (AMBAC), 4.00%, 8/1/40 | 5,679,917 | ||||||||
| 6,750 | Metropolitan Water District, CA, Water and Sewer Systems, (BHAC), (FGIC), 5.00%, 10/1/36(1) | 7,046,865 | ||||||||
| 1,340 | Pennsylvania Economic Development Financing Authority, (BHAC), 5.00%, 10/1/39 | 1,439,281 | ||||||||
| $ | 27,111,758 | |||||||||
| Other Revenue — 0.4% | ||||||||||
| $ | 500 | Main Street National Gas, Inc., GA, Gas Project Revenue, 5.50%, 9/15/27 | $ | 503,395 | ||||||
| $ | 503,395 | |||||||||
| Public Education — 1.3% | ||||||||||
| $ | 1,500 | University of Virginia, 5.00%, 6/1/40(3) | $ | 1,624,320 | ||||||
| $ | 1,624,320 | |||||||||
|
Total
Tax-Exempt Investments — 177.9%
|
||||||||||
|
(identified
cost $227,733,767)
|
$ | 228,012,545 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid Dividends —
(34.9)%
|
$ | (44,703,449 | ) | |||||||
|
Other
Assets, Less Liabilities — (43.0)%
|
$ | (55,159,410 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 128,149,686 | ||||||||
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
At September 30, 2009, the concentration of the Fund’s
investments in the various states, determined as a percentage of
total investments, is as follows:
|
California
|
14.5% | |||
|
New York
|
10.5% | |||
|
Others, representing less than 10% individually
|
75.0% |
14
Eaton Vance
Insured Municipal Bond
Fund II as
of September 30, 2009
PORTFOLIO OF
INVESTMENTS CONT’D
The Fund invests primarily in debt securities issued by
municipalities. The ability of the issuers of the debt
securities to meet their obligations may be affected by economic
developments in a specific industry or municipality. In order to
reduce the risk associated with such economic developments, at
September 30, 2009, 90.0% of total investments are backed
by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage
insured by an individual financial institution ranged from 2.5%
to 24.4% of total investments.
| (1) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). | |
| (2) | Security (or a portion thereof) has been pledged as collateral for open swap contracts. The aggregate value of such collateral is $2,483,900. | |
| (3) | Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts. |
15
Eaton Vance
Insured California Municipal Bond
Fund II as
of September 30, 2009
PORTFOLIO OF INVESTMENTS
| Tax-Exempt Investments — 169.0% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Electric Utilities — 1.4% | ||||||||||
| $ | 675 | Vernon, Electric System Revenue, 5.125%, 8/1/21 | $ | 719,745 | ||||||
| $ | 719,745 | |||||||||
| Hospital — 14.2% | ||||||||||
| $ | 1,330 | California Health Facilities Financing Authority, (Catholic Healthcare West), 5.625%, 7/1/32 | $ | 1,377,721 | ||||||
| 1,445 | California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 11/15/34 | 1,428,614 | ||||||||
| 1,475 | California Statewide Communities Development Authority, (Huntington Memorial Hospital), 5.00%, 7/1/35 | 1,403,153 | ||||||||
| 500 | California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36 | 484,175 | ||||||||
| 1,900 | California Statewide Communities Development Authority, (Kaiser Permanente), 5.25%, 3/1/45 | 1,909,158 | ||||||||
| 555 | Washington Township Health Care District, 5.00%, 7/1/32 | 526,767 | ||||||||
| $ | 7,129,588 | |||||||||
| Insured-Electric Utilities — 8.5% | ||||||||||
| $ | 1,475 | Glendale Electric, (NPFG), 5.00%, 2/1/32 | $ | 1,504,854 | ||||||
| 1,500 | Los Angeles Department of Water and Power, (AMBAC), (BHAC), 5.00%, 7/1/26(1) | 1,660,665 | ||||||||
| 1,000 | Sacramento Municipal Utility District, (FSA), 5.00%, 8/15/27 | 1,092,010 | ||||||||
| $ | 4,257,529 | |||||||||
| Insured-Escrowed / Prerefunded — 9.3% | ||||||||||
| $ | 1,025 | California Infrastructure & Economic Development Bank, (Bay Area Toll Bridges), (AMBAC), Prerefunded to 1/1/28, 5.00%, 7/1/36 | $ | 1,234,920 | ||||||
| 4,260 | Clovis Unified School District, (FGIC), (NPFG), Escrowed to Maturity, 0.00%, 8/1/20 | 2,982,554 | ||||||||
| 395 | Orange County Water District, Certificates of Participation, (NPFG), Escrowed to Maturity, 5.00%, 8/15/34 | 443,660 | ||||||||
| $ | 4,661,134 | |||||||||
| Insured-General Obligations — 43.8% | ||||||||||
| $ | 740 | Antelope Valley Community College District, (Election of 2004), (NPFG), 5.25%, 8/1/39 | $ | 790,875 | ||||||
| 8,680 | Arcadia Unified School District, (FSA), 0.00%, 8/1/38 | 1,691,298 | ||||||||
| 3,115 | Arcadia Unified School District, (FSA), 0.00%, 8/1/40 | 538,615 | ||||||||
| 3,270 | Arcadia Unified School District, (FSA), 0.00%, 8/1/41 | 531,342 | ||||||||
| 1,500 | Carlsbad Unified School District, (Election of 2006), (NPFG), 5.25%, 8/1/32 | 1,623,930 | ||||||||
| 19,350 | Chabot-Las Positas Community College District, (AMBAC), 0.00%, 8/1/43 | 2,475,058 | ||||||||
| 6,675 | Coast Community College District, (Election of 2002), (FSA), 0.00%, 8/1/35 | 1,573,164 | ||||||||
| 1,080 | El Camino Hospital District, (NPFG), 4.45%, 8/1/36 | 1,080,076 | ||||||||
| 2,350 | Long Beach Unified School District, (Election of 1999), (FSA), 5.00%, 8/1/31 | 2,388,587 | ||||||||
| 2,075 | Los Angeles Community College District, (Election of 2001), (FGIC), (FSA), 5.00%, 8/1/32 | 2,201,824 | ||||||||
| 1,000 | Mount Diablo Unified School District, (FSA), 5.00%, 8/1/25 | 1,059,020 | ||||||||
| 4,300 | San Mateo County Community College District, (Election of 2001), (FGIC), (NPFG), 0.00%, 9/1/21 | 2,632,288 | ||||||||
| 1,600 | Santa Clara Unified School District, (Election of 2004), (FSA), 4.375%, 7/1/30 | 1,613,232 | ||||||||
| 3,200 | Union Elementary School District, (FGIC), (NPFG), 0.00%, 9/1/22 | 1,756,544 | ||||||||
| $ | 21,955,853 | |||||||||
| Insured-Hospital — 6.2% | ||||||||||
| $ | 1,250 | California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 3/1/41(1) | $ | 1,299,300 | ||||||
| 1,750 | California Statewide Communities Development Authority, (Sutter Health), (FSA), 5.05%, 8/15/38(1) | 1,802,902 | ||||||||
| $ | 3,102,202 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 16.7% | ||||||||||
| $ | 3,920 | California Public Works Board, (Department of General Services), (AMBAC), 5.00%, 12/1/27 | $ | 3,933,406 | ||||||
| 1,250 | Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27 | 1,509,763 | ||||||||
| 1,750 | San Diego County Water Authority, Certificates of Participation, (FSA), 5.00%, 5/1/38(1) | 1,810,427 | ||||||||
| 1,075 | San Jose Financing Authority, (Civic Center), (AMBAC), 5.00%, 6/1/32 | 1,099,446 | ||||||||
| $ | 8,353,042 | |||||||||
| Insured-Private Education — 1.6% | ||||||||||
| $ | 785 | California Educational Facilities Authority, (Pepperdine University), (AMBAC), 5.00%, 12/1/32 | $ | 815,317 | ||||||
| $ | 815,317 | |||||||||
16
Eaton Vance
Insured California Municipal Bond
Fund II as
of September 30, 2009
PORTFOLIO OF
INVESTMENTS CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Insured-Public Education — 12.4% | ||||||||||
| $ | 4,000 | California State University, (AMBAC), 5.00%, 11/1/33 | $ | 4,075,320 | ||||||
| 2,000 | California State University, (BHAC), (FSA), 5.00%, 11/1/39(1) | 2,115,740 | ||||||||
| $ | 6,191,060 | |||||||||
| Insured-Special Assessment Revenue — 17.9% | ||||||||||
| $ | 2,500 | Cathedral City Public Financing Authority, (Housing Redevelopment), (NPFG), 5.00%, 8/1/33 | $ | 2,379,500 | ||||||
| 2,500 | Cathedral City Public Financing Authority, (Tax Allocation Redevelopment), (NPFG), 5.00%, 8/1/33 | 2,379,500 | ||||||||
| 1,750 | Irvine Public Facility and Infrastructure Authority, (AMBAC), 5.00%, 9/2/26 | 1,658,037 | ||||||||
| 1,795 | Los Osos Community Services District, (Wastewater Assessment District No. 1), (NPFG), 5.00%, 9/2/33 | 1,618,964 | ||||||||
| 945 | Murrieta Redevelopment Agency Tax, (NPFG), 5.00%, 8/1/32 | 902,825 | ||||||||
| $ | 8,938,826 | |||||||||
| Insured-Special Tax Revenue — 12.4% | ||||||||||
| $ | 2,195 | Hesperia Public Financing Authority, (Redevelopment and Housing Project), (XLCA), 5.00%, 9/1/37 | $ | 1,837,149 | ||||||
| 13,400 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | 1,013,040 | ||||||||
| 2,325 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 338,357 | ||||||||
| 4,610 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 631,017 | ||||||||
| 2,905 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 372,160 | ||||||||
| 245 | Sacramento Area Flood Control Agency, (BHAC), 5.50%, 10/1/28 | 280,118 | ||||||||
| 375 | Sacramento Area Flood Control Agency, (BHAC), 5.625%, 10/1/37 | 426,154 | ||||||||
| 260 | San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AMBAC), 5.00%, 7/1/31 | 267,857 | ||||||||
| 985 | San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AMBAC), 5.125%, 7/1/36 | 1,017,702 | ||||||||
| $ | 6,183,554 | |||||||||
| Insured-Transportation — 2.1% | ||||||||||
| $ | 3,520 | San Joaquin Hills Transportation Corridor Agency, (NPFG), 0.00%, 1/15/27 | $ | 1,072,966 | ||||||
| $ | 1,072,966 | |||||||||
|
Insured-Utilities — 2.8%
|
||||||||||
| $ | 1,390 | Los Angeles Department of Water and Power, (FGIC), (NPFG), 5.125%, 7/1/41 | $ | 1,414,645 | ||||||
| $ | 1,414,645 | |||||||||
| Insured-Water Revenue — 17.1% | ||||||||||
| $ | 1,235 | Calleguas Las Virgines Public Financing Authority, (Municipal Water District), (BHAC), (FGIC), 4.75%, 7/1/37 | $ | 1,278,176 | ||||||
| 2,500 | Contra Costa Water District, (FSA), 5.00%, 10/1/32(1) | 2,614,370 | ||||||||
| 100 | East Bay Municipal Utility District, Water System Revenue, (FGIC), (FSA), 5.00%, 6/1/32 | 108,225 | ||||||||
| 1,225 | East Bay Municipal Utility District, Water System Revenue, (FGIC), (NPFG), 5.00%, 6/1/32 | 1,325,756 | ||||||||
| 1,500 | Los Angeles Department of Water and Power, (NPFG), 3.00%, 7/1/30 | 1,255,020 | ||||||||
| 445 | Riverside, Water Revenue, (FSA), 5.00%, 10/1/38 | 468,389 | ||||||||
| 1,580 | Santa Clara Valley Water District, (FSA), 3.75%, 6/1/28 | 1,516,452 | ||||||||
| $ | 8,566,388 | |||||||||
| Private Education — 2.6% | ||||||||||
| $ | 750 | California Educational Facilities Authority, (Claremont McKenna College), 5.00%, 1/1/39 | $ | 789,683 | ||||||
| 500 | California Educational Facilities Authority, (Stanford University), 5.125%, 1/1/31(2) | 500,995 | ||||||||
| $ | 1,290,678 | |||||||||
|
Total
Tax-Exempt Investments — 169.0%
|
||||||||||
|
(identified
cost $84,958,627)
|
$ | 84,652,527 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid Dividends —
(51.3)%
|
$ | (25,702,776 | ) | |||||||
|
Other
Assets, Less Liabilities — (17.7)%
|
$ | (8,869,368 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 50,080,383 | ||||||||
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
17
Eaton Vance
Insured California Municipal Bond
Fund II as
of September 30, 2009
PORTFOLIO OF
INVESTMENTS CONT’D
The Fund invests primarily in debt securities issued by
California municipalities. The ability of the issuers of the
debt securities to meet their obligations may be affected by
economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic
developments, at September 30, 2009, 89.2% of total
investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The
aggregate percentage insured by an individual financial
institution ranged from 2.2% to 31.3% of total investments.
| (1) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). | |
| (2) | Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts. |
18
Eaton Vance
Insured Massachusetts Municipal Bond
Fund as
of September 30, 2009
PORTFOLIO OF INVESTMENTS
| Tax-Exempt Investments — 158.8% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Escrowed / Prerefunded — 5.0% | ||||||||||
| $ | 500 | Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), Prefunded to 7/31/13, 5.75%, 7/1/33 | $ | 586,290 | ||||||
| 600 | Massachusetts Development Finance Agency, (Western New England College), Prefunded to 12/1/12, 6.125%, 12/1/32 | 699,690 | ||||||||
| $ | 1,285,980 | |||||||||
| Hospital — 4.8% | ||||||||||
| $ | 775 | Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute), 5.00%, 12/1/37 | $ | 802,621 | ||||||
| 55 | Massachusetts Health and Educational Facilities Authority, (Partners Healthcare System), 5.75%, 7/1/32 | 57,152 | ||||||||
| 370 | Massachusetts Health and Educational Facilities Authority, (South Shore Hospital), 5.75%, 7/1/29 | 371,794 | ||||||||
| $ | 1,231,567 | |||||||||
| Insured-Electric Utilities — 4.6% | ||||||||||
| $ | 1,095 | Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/23 | $ | 1,190,199 | ||||||
| $ | 1,190,199 | |||||||||
| Insured-Escrowed / Prerefunded — 6.1% | ||||||||||
| $ | 2,900 | Massachusetts College Building Authority, (NPFG), Escrowed to Maturity, 0.00%, 5/1/26 | $ | 1,515,801 | ||||||
| 50 | Massachusetts Health and Educational Facilities Authority, (New England Medical Center), (FGIC), Prefunded to 5/15/12, 5.00%, 5/15/25 | 54,779 | ||||||||
| $ | 1,570,580 | |||||||||
| Insured-General Obligations — 18.5% | ||||||||||
| $ | 1,900 | Massachusetts, (AMBAC), 5.50%, 8/1/30 | $ | 2,403,234 | ||||||
| 965 | Milford, (FSA), 4.25%, 12/15/46 | 968,599 | ||||||||
| 1,000 | Revere, (AGC), 5.00%, 4/1/39 | 1,059,740 | ||||||||
| 300 | Tewksbury, (FSA), 4.625%, 3/15/27 | 324,864 | ||||||||
| $ | 4,756,437 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 11.7% | ||||||||||
| $ | 1,000 | Plymouth County Correctional Facility, (AMBAC), 5.00%, 4/1/22 | $ | 1,026,310 | ||||||
| 795 | Puerto Rico Public Buildings Authority, (CIFG), 5.25%, 7/1/36 | 784,800 | ||||||||
| 1,000 | Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27 | 1,207,810 | ||||||||
| $ | 3,018,920 | |||||||||
| Insured-Other Revenue — 9.7% | ||||||||||
| $ | 805 | Massachusetts Development Finance Agency, (NPFG), 5.125%, 2/1/34 | $ | 781,518 | ||||||
| 1,500 | Massachusetts Development Finance Agency, (WGBH Educational Foundation), (AMBAC), 5.75%, 1/1/42 | 1,732,455 | ||||||||
| $ | 2,513,973 | |||||||||
| Insured-Private Education — 24.8% | ||||||||||
| $ | 1,250 | Massachusetts Development Finance Agency, (Boston College), (NPFG), 5.00%, 7/1/38 | $ | 1,324,850 | ||||||
| 1,000 | Massachusetts Development Finance Agency, (Boston University), (AMBAC), (BHAC), 5.00%, 10/1/35 | 1,050,720 | ||||||||
| 1,105 | Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59 | 1,292,165 | ||||||||
| 750 | Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32(1) | 896,115 | ||||||||
| 750 | Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), (AGC), 5.00%, 7/1/35 | 780,330 | ||||||||
| 1,000 | Massachusetts Development Finance Agency, (Massachusetts College of Pharmacy), (AGC), 5.00%, 7/1/37 | 1,048,360 | ||||||||
| $ | 6,392,540 | |||||||||
| Insured-Public Education — 13.9% | ||||||||||
| $ | 260 | Massachusetts College Building Authority, (AGC), 5.00%, 5/1/33 | $ | 273,200 | ||||||
| 320 | Massachusetts College Building Authority, (AGC), 5.00%, 5/1/38 | 338,992 | ||||||||
| 700 | Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39 | 798,903 | ||||||||
| 1,000 | Massachusetts Health and Educational Facilities Authority, (University of Massachusetts), (FGIC), (NPFG), 5.125%, 10/1/34 | 1,018,210 | ||||||||
| 1,150 | Massachusetts Health and Educational Facilities Authority, (Worcester State College), (AMBAC), 5.00%, 11/1/32 | 1,163,053 | ||||||||
| $ | 3,592,358 | |||||||||
| Insured-Special Tax Revenue — 24.4% | ||||||||||
| $ | 1,225 | Martha’s Vineyard Land Bank, (AMBAC), 5.00%, 5/1/32 | 1,260,549 | |||||||
19
Eaton Vance
Insured Massachusetts Municipal Bond
Fund as
of September 30, 2009
PORTFOLIO OF
INVESTMENTS CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
|
Insured-Special
Tax Revenue (continued)
|
||||||||||
| $ | 305 | Massachusetts Bay Transportation Authority, (NPFG), 4.00%, 7/1/33 | $ | 297,216 | ||||||
| 400 | Massachusetts Bay Transportation Authority, Sales Tax Revenue, (NPFG), 5.50%, 7/1/28 | 509,944 | ||||||||
| 2,000 | Massachusetts School Building Authority, Dedicated Sales Tax Revenue, (AMBAC), 5.00%, 8/15/37 | 2,148,560 | ||||||||
| 750 | Massachusetts Special Obligations, Dedicated Tax Revenue, (FGIC), (NPFG), 5.50%, 1/1/29 | 897,743 | ||||||||
| 6,200 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | 468,720 | ||||||||
| 1,730 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 251,767 | ||||||||
| 2,095 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 286,764 | ||||||||
| 1,325 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 169,746 | ||||||||
| $ | 6,291,009 | |||||||||
| Insured-Transportation — 10.2% | ||||||||||
| $ | 3,700 | Massachusetts Turnpike Authority, (NPFG), 0.00%, 1/1/28 | $ | 1,331,112 | ||||||
| 1,300 | Massachusetts Turnpike Authority, Metropolitan Highway System, (AMBAC), 5.00%, 1/1/39 | 1,300,195 | ||||||||
| $ | 2,631,307 | |||||||||
| Insured-Water Revenue — 11.3% | ||||||||||
| $ | 1,125 | Massachusetts Water Resources Authority, (AMBAC), (BHAC), 4.00%, 8/1/40 | $ | 1,125,282 | ||||||
| 1,075 | Massachusetts Water Resources Authority, (FSA), 5.00%, 8/1/32 | 1,109,174 | ||||||||
| 560 | Massachusetts Water Resources Authority, (FSA), 5.25%, 8/1/36 | 675,556 | ||||||||
| $ | 2,910,012 | |||||||||
| Private Education — 11.4% | ||||||||||
| $ | 750 | Massachusetts Development Finance Agency, (Middlesex School), 5.00%, 9/1/33 | $ | 765,742 | ||||||
| 2,000 | Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1) | 2,160,700 | ||||||||
| $ | 2,926,442 | |||||||||
|
Senior
Living / Life Care — 2.4%
|
||||||||||
| $ | 745 | Massachusetts Development Finance Agency, (Berkshire Retirement), 5.15%, 7/1/31 | $ | 614,409 | ||||||
| $ | 614,409 | |||||||||
|
Total
Tax-Exempt Investments — 158.8%
|
||||||||||
|
(identified
cost $38,855,561)
|
$ | 40,925,733 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid
Dividends — (52.7)%
|
$ | (13,576,257 | ) | |||||||
|
Other
Assets, Less Liabilities — (6.1)%
|
$ | (1,578,887 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 25,770,589 | ||||||||
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
CIFG - CIFG Assurance North America, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by
Massachusetts municipalities. In addition, 10.7% of the
Fund’s total investments at September 30, 2009 were
invested in municipal obligations issued by Puerto Rico. The
ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a
specific industry or municipality. In order to reduce the risk
associated with such economic developments, at
September 30, 2009, 85.2% of total investments are backed
by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage
insured by an individual financial institution ranged from 1.9%
to 38.6% of total investments.
| (1) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). |
20
Eaton Vance
Insured Michigan Municipal Bond
Fund as
of September 30, 2009
PORTFOLIO OF INVESTMENTS
| Tax-Exempt Investments — 158.8% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Electric Utilities — 2.8% | ||||||||||
| $ | 620 | Michigan Strategic Fund, (Detroit Edison Pollution Control), 5.45%, 9/1/29 | $ | 625,134 | ||||||
| $ | 625,134 | |||||||||
| Escrowed / Prerefunded — 7.5% | ||||||||||
| $ | 1,500 | Michigan Hospital Finance Authority, (Sparrow Obligation Group), Prerefunded to 11/15/11, 5.625%, 11/15/36 | $ | 1,667,265 | ||||||
| $ | 1,667,265 | |||||||||
| Hospital — 9.5% | ||||||||||
| $ | 400 | Michigan Hospital Finance Authority, (Chelsea Community Hospital), 5.00%, 5/15/30 | $ | 467,664 | ||||||
| 1,000 | Michigan Hospital Finance Authority, (Oakwood Hospital System), 5.75%, 4/1/32 | 1,002,190 | ||||||||
| 640 | Michigan Hospital Finance Authority, (Trinity Health), 5.375%, 12/1/30 | 653,107 | ||||||||
| $ | 2,122,961 | |||||||||
| Insured-Electric Utilities — 7.2% | ||||||||||
| $ | 500 | Michigan Strategic Fund, (Detroit Edison Co.), (XLCA), 5.25%, 12/15/32 | $ | 503,770 | ||||||
| 1,000 | Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26 | 1,091,220 | ||||||||
| $ | 1,594,990 | |||||||||
| Insured-Escrowed / Prerefunded — 40.8% | ||||||||||
| $ | 750 | Detroit School District, (School Bond Loan Fund), (FSA), Prerefunded to 5/1/12, 5.125%, 5/1/31 | $ | 827,723 | ||||||
| 1,250 | Detroit Sewer Disposal, (FGIC), Prerefunded to 7/1/11, 5.125%, 7/1/31 | 1,345,150 | ||||||||
| 1,500 | Lansing Building Authority, (NPFG), Prerefunded to 6/1/13, 5.00%, 6/1/29 | 1,704,285 | ||||||||
| 1,150 | Michigan Hospital Finance Authority, (St. John Health System), (AMBAC), Escrowed to Maturity, 5.00%, 5/15/28 | 1,159,556 | ||||||||
| 1,750 | Michigan House of Representatives, (AMBAC), Escrowed to Maturity, 0.00%, 8/15/22 | 1,058,278 | ||||||||
| 2,615 | Michigan House of Representatives, (AMBAC), Escrowed to Maturity, 0.00%, 8/15/23 | 1,497,375 | ||||||||
| 1,300 | Reed City Public Schools, (FSA), Prerefunded to 5/1/14, 5.00%, 5/1/29 | 1,498,536 | ||||||||
| $ | 9,090,903 | |||||||||
|
Insured-General
Obligations — 21.7%
|
||||||||||
| $ | 1,960 | Grand Rapids and Kent County Joint Building Authority, (DeVos Place), (NPFG), 0.00%, 12/1/27(1) | $ | 885,685 | ||||||
| 750 | Greenville Public Schools, (NPFG), 5.00%, 5/1/25 | 785,542 | ||||||||
| 1,330 | Okemos Public School District, (NPFG), 0.00%, 5/1/19 | 925,986 | ||||||||
| 1,000 | Pinconning Area Schools, (FSA), 5.00%, 5/1/33 | 1,052,140 | ||||||||
| 1,000 | Royal Oak, (AGC), 6.25%, 10/1/28 | 1,197,130 | ||||||||
| $ | 4,846,483 | |||||||||
| Insured-Hospital — 6.8% | ||||||||||
| $ | 500 | Michigan Hospital Finance Authority, (Mid-Michigan Obligation Group), (AMBAC), 5.00%, 4/15/32 | $ | 486,155 | ||||||
| 1,075 | Royal Oak Hospital Finance Authority, (William Beaumont Hospital), (NPFG), 5.25%, 11/15/35 | 1,033,591 | ||||||||
| $ | 1,519,746 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 8.9% | ||||||||||
| $ | 1,000 | Michigan Building Authority, (FGIC), (FSA), 0.00%, 10/15/29 | $ | 314,250 | ||||||
| 3,100 | Michigan Building Authority, (FGIC), (NPFG), 0.00%, 10/15/30 | 886,848 | ||||||||
| 795 | Puerto Rico Public Buildings Authority, (CIFG), 5.25%, 7/1/36 | 784,800 | ||||||||
| $ | 1,985,898 | |||||||||
| Insured-Public Education — 14.5% | ||||||||||
| $ | 750 | Central Michigan University, (AMBAC), 5.05%, 10/1/32 | $ | 764,955 | ||||||
| 435 | Ferris State University, (AGC), 5.125%, 10/1/33 | 464,302 | ||||||||
| 750 | Lake Superior State University, (AMBAC), 5.125%, 11/15/26 | 754,522 | ||||||||
| 1,200 | Wayne University, (NPFG), 5.00%, 11/15/37 | 1,251,180 | ||||||||
| $ | 3,234,959 | |||||||||
| Insured-Sewer Revenue — 2.1% | ||||||||||
| $ | 500 | Detroit Sewer Disposal System, (NPFG), 4.50%, 7/1/35 | $ | 459,910 | ||||||
| $ | 459,910 | |||||||||
| Insured-Special Tax Revenue — 16.4% | ||||||||||
| $ | 7,030 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | $ | 531,468 | ||||||
| 1,465 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 213,201 | ||||||||
| 1,675 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 229,274 | ||||||||
21
Eaton Vance
Insured Michigan Municipal Bond
Fund as
of September 30, 2009
PORTFOLIO OF
INVESTMENTS CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
|
Insured-Special
Tax Revenue (continued)
|
||||||||||
| $ | 1,115 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | $ | 142,843 | ||||||
| 1,500 | Wayne Charter County, (Airport Hotel-Detroit Metropolitan Airport), (NPFG), 5.00%, 12/1/30 | 1,513,890 | ||||||||
| 1,000 | Ypsilanti Community Utilities Authority, (Sanitary Sewer System), (FGIC), (NPFG), 5.00%, 5/1/32 | 1,014,230 | ||||||||
| $ | 3,644,906 | |||||||||
| Insured-Utilities — 7.1% | ||||||||||
| $ | 1,000 | Lansing Board of Water and Light, (Water Supply, Steam and Electric Utility), (FSA), 5.00%, 7/1/25 | $ | 1,049,580 | ||||||
| 510 | Lansing Board of Water and Light, (Water Supply, Steam and Electric Utility), (FSA), 5.00%, 7/1/26 | 533,552 | ||||||||
| $ | 1,583,132 | |||||||||
| Insured-Water Revenue — 11.3% | ||||||||||
| $ | 1,425 | Detroit Water Supply System, (FGIC), (NPFG), 5.00%, 7/1/30 | $ | 1,431,526 | ||||||
| 1,000 | Grand Rapids Water Supply System, (AGC), 5.00%, 1/1/29 | 1,086,310 | ||||||||
| $ | 2,517,836 | |||||||||
| Private Education — 2.2% | ||||||||||
| $ | 500 | Michigan Higher Education Facilities Authority, (Hillsdale College), 5.00%, 3/1/35 | $ | 487,340 | ||||||
| $ | 487,340 | |||||||||
|
Total
Tax-Exempt Investments — 158.8%
|
||||||||||
|
(identified
cost $33,673,638)
|
$ | 35,381,463 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid Dividends —
(59.8)%
|
$ | (13,325,183 | ) | |||||||
|
Other
Assets, Less Liabilities — 1.0%
|
$ | 219,822 | ||||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 22,276,102 | ||||||||
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
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.
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by Michigan
municipalities. The ability of the issuers of the debt
securities to meet their obligations may be affected by economic
developments in a specific industry or municipality. In order to
reduce the risk associated with such economic developments, at
September 30, 2009, 86.1% of total investments are backed
by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage
insured by an individual financial institution ranged from 1.4%
to 38.4% of total investments.
| (1) | Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts. |
22
Eaton Vance
Insured New Jersey Municipal Bond
Fund as
of September 30, 2009
PORTFOLIO OF INVESTMENTS
| Tax-Exempt Investments — 170.2% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Hospital — 10.6% | ||||||||||
| $ | 180 |
Camden County Improvement Authority, (Cooper Health System), 5.00%, 2/15/35 |
$ | 150,939 | ||||||
| 150 |
Camden County Improvement Authority, (Cooper Health System), 5.25%, 2/15/27 |
136,446 | ||||||||
| 1,300 |
Camden County Improvement Authority, (Cooper Health System), 5.75%, 2/15/34 |
1,216,020 | ||||||||
| 600 | New Jersey Health Care Facilities Financing Authority, (Atlanticare Regional Medical Center), 5.00%, 7/1/37 | 603,786 | ||||||||
| 250 | New Jersey Health Care Facilities Financing Authority, (Hunterdon Medical Center), 5.125%, 7/1/35 | 243,870 | ||||||||
| 1,705 | New Jersey Health Care Facilities Financing Authority, (South Jersey Hospital), 5.00%, 7/1/46 | 1,648,684 | ||||||||
| $ | 3,999,745 | |||||||||
| Insured-Electric Utilities — 3.5% | ||||||||||
| $ | 215 | Puerto Rico Electric Power Authority, (FGIC), (NPFG), 5.25%, 7/1/35 | $ | 229,199 | ||||||
| 1,000 | Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26 | 1,091,220 | ||||||||
| $ | 1,320,419 | |||||||||
| Insured-General Obligations — 41.4% | ||||||||||
| $ | 2,415 | Bayonne, (FSA), 0.00%, 7/1/23 | $ | 1,324,265 | ||||||
| 1,000 | Bayonne, (FSA), 5.50%, 7/1/39 | 1,093,870 | ||||||||
| 320 | Delaware Township, Hunterdon County, (AGC), 5.00%, 10/15/35 | 344,326 | ||||||||
| 340 | Delaware Township, Hunterdon County, (AGC), 5.10%, 10/15/36 | 367,064 | ||||||||
| 360 | Delaware Township, Hunterdon County, (AGC), 5.15%, 10/15/37 | 389,499 | ||||||||
| 382 | Delaware Township, Hunterdon County, (AGC), 5.20%, 10/15/38 | 414,252 | ||||||||
| 1,500 | Egg Harbor Township School District, (FSA), 3.50%, 4/1/28 | 1,429,065 | ||||||||
| 2,000 | Hudson County Improvement Authority, (NPFG), 0.00%, 12/15/38 | 403,740 | ||||||||
| 5,500 | Irvington Township, (FSA), 0.00%, 7/15/26 | 2,596,605 | ||||||||
| 2,785 | Jackson Township School District, (NPFG), 2.50%, 6/15/27 | 2,302,276 | ||||||||
| 1,000 | Jersey City, (FSA), 5.00%, 1/15/29 | 1,095,610 | ||||||||
| 700 | Lakewood Township, (AGC), 5.75%, 11/1/31 | 815,136 | ||||||||
| 1,115 | Monroe Township Board of Education, Middlesex County, (AGC), 4.75%, 3/1/34 | 1,183,584 | ||||||||
| 1,000 | Newark Housing Authority, (South Ward Police Facility), (AGC), 6.75%, 12/1/38 | 1,148,420 | ||||||||
| 210 | Nutley School District, (NPFG), 4.75%, 7/15/30 | 224,503 | ||||||||
| 410 | Nutley School District, (NPFG), 4.75%, 7/15/31 | 436,035 | ||||||||
| $ | 15,568,250 | |||||||||
| Insured-Hospital — 17.8% | ||||||||||
| $ | 2,000 | New Jersey Health Care Facilities Financing Authority, (Englewood Hospital), (NPFG), 5.00%, 8/1/31 | $ | 2,044,400 | ||||||
| 2,000 | New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36(1) | 2,124,980 | ||||||||
| 625 | New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series II, (AGC), 5.00%, 7/1/38 | 658,925 | ||||||||
| 250 | New Jersey Health Care Facilities Financing Authority, (Meridian Health Center), Series V, (AGC), 5.00%, 7/1/38(1) | 263,570 | ||||||||
| 1,500 | New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38 | 1,622,175 | ||||||||
| $ | 6,714,050 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 22.0% | ||||||||||
| $ | 1,000 | Essex County Improvement Authority, (NPFG), 5.50%, 10/1/30 | $ | 1,186,450 | ||||||
| 445 | Gloucester County Improvement Authority, (NPFG), 4.75%, 9/1/30 | 468,171 | ||||||||
| 1,250 | Middlesex County, (NPFG), 5.00%, 8/1/31 | 1,275,400 | ||||||||
| 1,300 | New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34 | 1,460,823 | ||||||||
| 500 | New Jersey Economic Development Authority, (School Facilities Construction), (FGIC), (NPFG), 5.50%, 12/15/34 | 580,675 | ||||||||
| 915 | Newark Housing Authority, (Newark Marine Terminal), (NPFG), 5.00%, 1/1/32 | 1,021,524 | ||||||||
| 795 | Puerto Rico Public Buildings Authority, (CIFG), 5.25%, 7/1/36 | 784,800 | ||||||||
| 1,250 | Puerto Rico Public Finance Corp., (AMBAC), Escrowed to Maturity, 5.50%, 8/1/27 | 1,509,763 | ||||||||
| $ | 8,287,606 | |||||||||
23
Eaton Vance
Insured New Jersey Municipal Bond
Fund as
of September 30, 2009
PORTFOLIO OF
INVESTMENTS CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Insured-Other Revenue — 4.4% | ||||||||||
| $ | 1,500 | Hudson County Improvement Authority, (Harrison Parking), (AGC), 5.25%, 1/1/39 | $ | 1,637,655 | ||||||
| $ | 1,637,655 | |||||||||
| Insured-Public Education — 11.7% | ||||||||||
| $ | 1,945 | New Jersey Educational Facilities Authority, (College of New Jersey), (FSA), 5.00%, 7/1/35(1) | $ | 2,084,359 | ||||||
| 500 | New Jersey Educational Facilities Authority, (Montclair State University), (NPFG), 3.75%, 7/1/24 | 486,150 | ||||||||
| 1,000 | New Jersey Educational Facilities Authority, (Rowan University), (FGIC), (FSA), 3.00%, 7/1/27 | 867,940 | ||||||||
| 645 | New Jersey Educational Facilities Authority, (William Paterson University), (AGC), 4.75%, 7/1/34 | 676,018 | ||||||||
| 275 | New Jersey Educational Facilities Authority, (William Paterson University), (AGC), 5.00%, 7/1/38 | 293,865 | ||||||||
| $ | 4,408,332 | |||||||||
| Insured-Sewer Revenue — 6.1% | ||||||||||
| $ | 1,175 | Ocean County Utilities Authority, (NPFG), 5.25%, 1/1/26 | $ | 1,438,024 | ||||||
| 1,975 | Rahway Valley Sewerage Authority, (NPFG), 0.00%, 9/1/27 | 845,932 | ||||||||
| $ | 2,283,956 | |||||||||
| Insured-Special Tax Revenue — 14.9% | ||||||||||
| $ | 1,000 | Garden State Preservation Trust, (FSA), 0.00%, 11/1/21 | $ | 640,520 | ||||||
| 500 | Garden State Preservation Trust, (FSA), 5.80%, 11/1/21 | 605,230 | ||||||||
| 1,290 | New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (BHAC), (NPFG), 5.00%, 7/1/27 | 1,338,904 | ||||||||
| 2,390 | New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/26 | 1,029,684 | ||||||||
| 1,120 | New Jersey Economic Development Authority, (Motor Vehicle Surcharges), (XLCA), 0.00%, 7/1/27 | 450,688 | ||||||||
| 8,940 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | 675,864 | ||||||||
| 1,520 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 221,205 | ||||||||
| 3,015 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 412,693 | ||||||||
| 1,900 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 243,409 | ||||||||
| $ | 5,618,197 | |||||||||
|
Insured-Transportation — 23.3%
|
||||||||||
| $ | 2,000 | New Jersey Transportation Trust Fund Authority, (Transportation System), (AMBAC), (BHAC), 0.00%, 12/15/26 | $ | 895,240 | ||||||
| 3,235 | New Jersey Transportation Trust Fund Authority, (Transportation System), (BHAC), (FGIC), 0.00%, 12/15/31 | 1,048,075 | ||||||||
| 1,000 | New Jersey Turnpike Authority, (BHAC), (FSA), 5.25%, 1/1/29 | 1,235,600 | ||||||||
| 3,875 | Port Authority of New York and New Jersey, (FSA), 5.00%, 11/1/27(1) | 4,116,682 | ||||||||
| 1,175 | Port Authority of New York and New Jersey, (FSA), 5.00%, 8/15/33 | 1,264,335 | ||||||||
| 180 | South Jersey Transportation Authority, (AGC), 5.50%, 11/1/33 | 201,271 | ||||||||
| $ | 8,761,203 | |||||||||
| Insured-Water and Sewer — 7.1% | ||||||||||
| $ | 4,500 | Middlesex County Improvement Authority, (Perth Amboy), (AMBAC), 0.00%, 9/1/24 | $ | 2,004,615 | ||||||
| 1,150 | Passaic Valley Sewerage Commissioners, (FGIC), (NPFG), 2.50%, 12/1/32 | 672,681 | ||||||||
| $ | 2,677,296 | |||||||||
| Other Revenue — 3.8% | ||||||||||
| $ | 1,300 | New Jersey Economic Development Authority, (Duke Farms Foundation), 5.00%, 7/1/48 | $ | 1,413,360 | ||||||
| $ | 1,413,360 | |||||||||
| Transportation — 3.6% | ||||||||||
| $ | 1,325 | South Jersey Port Authority, (Marine Terminal), 5.10%, 1/1/33 | $ | 1,358,787 | ||||||
| $ | 1,358,787 | |||||||||
|
Total
Tax-Exempt Investments — 170.2%
|
||||||||||
|
(identified
cost $60,628,093)
|
$ | 64,048,856 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid
Dividends — (52.1)%
|
$ | (19,600,555 | ) | |||||||
|
Other
Assets, Less Liabilities — (18.1)%
|
$ | (6,820,279 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 37,628,022 | ||||||||
24
Eaton Vance
Insured New Jersey Municipal Bond
Fund as
of September 30, 2009
PORTFOLIO OF
INVESTMENTS CONT’D
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
CIFG - CIFG Assurance North America, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by New
Jersey municipalities. The ability of the issuers of the debt
securities to meet their obligations may be affected by economic
developments in a specific industry or municipality. In order to
reduce the risk associated with such economic developments, at
September 30, 2009, 89.4% 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 28.7% of total investments.
| (1) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). |
25
Eaton Vance
Insured New York Municipal Bond
Fund II as
of September 30, 2009
PORTFOLIO OF INVESTMENTS
| Tax-Exempt Investments — 169.3% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Hospital — 2.2% | ||||||||||
| $ | 750 | Suffolk County Industrial Development Agency, (Huntington Hospital), 5.875%, 11/1/32 | $ | 758,055 | ||||||
| $ | 758,055 | |||||||||
| Industrial Development Revenue — 2.7% | ||||||||||
| $ | 305 | Liberty Development Corp. (Goldman Sachs Group, Inc.), 5.25%, 10/1/35 | $ | 314,223 | ||||||
| 600 | Liberty Development Corp. (Goldman Sachs Group, Inc.), 5.25%, 10/1/35(1) | 618,161 | ||||||||
| $ | 932,384 | |||||||||
| Insured-Electric Utilities — 6.8% | ||||||||||
| $ | 500 | Long Island Power Authority, (BHAC), 5.50%, 5/1/33 | $ | 571,630 | ||||||
| 500 | Long Island Power Authority, (BHAC), 6.00%, 5/1/33 | 598,335 | ||||||||
| 1,195 | New York Power Authority, (NPFG), 4.50%, 11/15/47 | 1,208,408 | ||||||||
| $ | 2,378,373 | |||||||||
| Insured-Escrowed / Prerefunded — 1.7% | ||||||||||
| $ | 1,385 | New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), (NPFG), Escrowed to Maturity, 0.00%, 7/1/30 | $ | 600,217 | ||||||
| $ | 600,217 | |||||||||
| Insured-General Obligations — 23.6% | ||||||||||
| $ | 535 | Brentwood Union Free School District, (AGC), 4.75%, 11/15/23 | $ | 609,397 | ||||||
| 560 | Brentwood Union Free School District, (AGC), 5.00%, 11/15/24 | 649,354 | ||||||||
| 200 | Freeport Union Free School District, (AGC), 4.00%, 4/1/23 | 211,218 | ||||||||
| 200 | Freeport Union Free School District, (AGC), 4.00%, 4/1/24 | 209,852 | ||||||||
| 250 | Hoosic Valley Central School District, (AGC), 4.00%, 6/15/23(2) | 260,622 | ||||||||
| 185 | Longwood Central School District, Suffolk County, (AGC), 4.15%, 6/1/23 | 195,449 | ||||||||
| 190 | Longwood Central School District, Suffolk County, (AGC), 4.25%, 6/1/24 | 200,745 | ||||||||
| 155 | New Rochelle City School District, (AGC), 3.75%, 11/15/19 | 164,943 | ||||||||
| 160 | New Rochelle City School District, (AGC), 4.00%, 11/15/20 | 172,427 | ||||||||
| 1,000 | New York, (FSA), 5.00%, 4/1/22 | 1,100,600 | ||||||||
| 1,795 | New York Dormitory Authority, (School Districts Financing Program), (NPFG), 5.00%, 10/1/30 | 1,830,038 | ||||||||
| 545 | Oneida County, (AGC), 4.00%, 4/15/21 | 570,048 | ||||||||
| 100 | Plattsburgh, (AGC), 4.25%, 11/15/19 | 110,016 | ||||||||
| 300 | Plattsburgh, (AGC), 4.25%, 11/15/20 | 332,244 | ||||||||
| 410 | Sachem Central School District, (FGIC), (NPFG), 4.25%, 10/15/28 | 420,279 | ||||||||
| 235 | Syracuse, (AGC), 5.00%, 6/15/19 | 270,367 | ||||||||
| 185 | Wantagh Union Free School District, (AGC), 4.50%, 11/15/19 | 209,476 | ||||||||
| 190 | Wantagh Union Free School District, (AGC), 4.50%, 11/15/20 | 212,867 | ||||||||
| 210 | Wantagh Union Free School District, (AGC), 4.75%, 11/15/22 | 235,771 | ||||||||
| 220 | Wantagh Union Free School District, (AGC), 4.75%, 11/15/23 | 245,287 | ||||||||
| $ | 8,211,000 | |||||||||
| Insured-Hospital — 6.2% | ||||||||||
| $ | 500 | New York City Health and Hospital Corp., (FSA), 5.50%, 2/15/20 | $ | 586,330 | ||||||
| 1,000 | New York Dormitory Authority, (Health Quest Systems), (AGC), 5.125%, 7/1/37(1) | 1,053,840 | ||||||||
| 500 | New York Dormitory Authority, (Hudson Valley Hospital Center), (BHAC), (FSA), 5.00%, 8/15/36 | 538,370 | ||||||||
| $ | 2,178,540 | |||||||||
| Insured-Housing — 2.9% | ||||||||||
| $ | 1,000 | New York City Housing Corp., (NPFG), 4.95%, 11/1/33 | $ | 1,017,490 | ||||||
| $ | 1,017,490 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 11.4% | ||||||||||
| $ | 2,330 | Hudson Yards Infrastructure Corp., (NPFG), 4.50%, 2/15/47 | $ | 2,124,541 | ||||||
| 950 | New York City, Transitional Finance Authority, (BHAC), 5.50%, 7/15/38(3) | 1,071,961 | ||||||||
| 795 | Puerto Rico Public Buildings Authority, (CIFG), 5.25%, 7/1/36 | 784,800 | ||||||||
| $ | 3,981,302 | |||||||||
| Insured-Other Revenue — 16.3% | ||||||||||
| $ | 1,360 | New York City Cultural Resource Trust, (American Museum of Natural History), (NPFG), 5.00%, 7/1/44 | $ | 1,405,165 | ||||||
| 2,500 | New York City Cultural Resource Trust, (Museum of Modern Arts), (AMBAC), (BHAC), 5.125%, 7/1/31(1) | 2,588,300 | ||||||||
26
Eaton Vance
Insured New York Municipal Bond
Fund II as
of September 30, 2009
PORTFOLIO OF
INVESTMENTS CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
|
Insured-Other
Revenue (continued)
|
||||||||||
| $ | 1,785 | New York City Industrial Development Agency, (Yankee Stadium), (NPFG), 4.75%, 3/1/46 | $ | 1,670,546 | ||||||
| $ | 5,664,011 | |||||||||
| Insured-Private Education — 33.2% | ||||||||||
| $ | 1,440 | New York Dormitory Authority, (Barnard College), (FGIC), (NPFG), 5.00%, 7/1/24 | $ | 1,584,446 | ||||||
| 2,000 | New York Dormitory Authority, (Brooklyn Law School), (XLCA), 5.125%, 7/1/30 | 2,017,140 | ||||||||
| 85 | New York Dormitory Authority, (Fordham University), (AGC), (BHAC), 5.00%, 7/1/38 | 91,350 | ||||||||
| 2,250 | New York Dormitory Authority, (Fordham University), (AGC), (BHAC), 5.00%, 7/1/38(1) | 2,418,098 | ||||||||
| 1,000 | New York Dormitory Authority, (New York University), (AMBAC), (BHAC), 5.00%, 7/1/31(1) | 1,019,930 | ||||||||
| 345 | New York Dormitory Authority, (Pratt Institute), (AGC), 5.00%, 7/1/34 | 367,732 | ||||||||
| 835 | New York Dormitory Authority, (Pratt Institute), (AGC), 5.125%, 7/1/39 | 896,231 | ||||||||
| 500 | New York Dormitory Authority, (Skidmore College), (FGIC), (NPFG), 5.00%, 7/1/33 | 518,130 | ||||||||
| 850 | New York Dormitory Authority, (St. John’s University), (NPFG), 5.25%, 7/1/37 | 885,063 | ||||||||
| 5,425 | Oneida County Industrial Development Agency, (Hamilton College), (NPFG), 0.00%, 7/1/32 | 1,763,613 | ||||||||
| $ | 11,561,733 | |||||||||
| Insured-Public Education — 4.4% | ||||||||||
| $ | 1,500 | New York Dormitory Authority, (City University), (AMBAC), 5.25%, 7/1/30 | $ | 1,528,485 | ||||||
| $ | 1,528,485 | |||||||||
| Insured-Special Tax Revenue — 19.9% | ||||||||||
| $ | 700 | New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45 | $ | 672,084 | ||||||
| 930 | New York Convention Center Development Corp., Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44 | 927,805 | ||||||||
| 1,700 | Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/35 | 292,944 | ||||||||
| 20,540 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 2,989,186 | ||||||||
| 3,350 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 458,548 | ||||||||
| 2,105 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 269,672 | ||||||||
| 575 | Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/29 | 611,397 | ||||||||
| 690 | Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/32 | 727,495 | ||||||||
| $ | 6,949,131 | |||||||||
| Insured-Transportation — 20.0% | ||||||||||
| $ | 2,000 | Metropolitan Transportation Authority, (AGC), (FGIC), 5.25%, 11/15/31 | $ | 2,063,760 | ||||||
| 990 | New York Thruway Authority, (AMBAC), 5.50%, 4/1/20 | 1,216,878 | ||||||||
| 2,500 | Port Authority of New York and New Jersey, (FSA), 5.00%, 11/1/27(1) | 2,656,437 | ||||||||
| 85 | Port Authority of New York and New Jersey, (FSA), 5.00%, 8/15/33 | 91,463 | ||||||||
| 325 | Puerto Rico Highway and Transportation Authority, (NPFG), 5.25%, 7/1/35 | 330,512 | ||||||||
| 600 | Triborough Bridge and Tunnel Authority, (NPFG), 5.00%, 11/15/32 | 620,106 | ||||||||
| $ | 6,979,156 | |||||||||
| Insured-Water and Sewer — 12.2% | ||||||||||
| $ | 905 | Nassau County Sewer and Storm Water Finance Authority, (BHAC), 5.375%, 11/1/28 | $ | 1,039,103 | ||||||
| 2,750 | New York City Municipal Water Finance Authority, (Water and Sewer System), (AMBAC), (BHAC), 5.00%, 6/15/38(1) | 2,850,457 | ||||||||
| 350 | Suffolk County Water Authority, (NPFG), 4.50%, 6/1/25 | 366,485 | ||||||||
| $ | 4,256,045 | |||||||||
| Private Education — 5.8% | ||||||||||
| $ | 1,000 | Dutchess County Industrial Development Agency, (Marist College), 5.00%, 7/1/22 | $ | 1,026,400 | ||||||
| 1,000 | New York City Industrial Development Agency, (St. Francis College), 5.00%, 10/1/34 | 981,800 | ||||||||
| $ | 2,008,200 | |||||||||
|
Total
Tax-Exempt Investments — 169.3%
|
||||||||||
|
(identified
cost $57,539,008)
|
$ | 59,004,122 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid
Dividends — (38.0)%
|
$ | (13,250,182 | ) | |||||||
|
Other
Assets, Less Liabilities — (31.3)%
|
$ | (10,907,041 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 34,846,899 | ||||||||
27
Eaton Vance
Insured New York Municipal Bond
Fund II as
of September 30, 2009
PORTFOLIO OF
INVESTMENTS CONT’D
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
CIFG - CIFG Assurance North America, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by New York
municipalities. The ability of the issuers of the debt
securities to meet their obligations may be affected by economic
developments in a specific industry or municipality. In order to
reduce the risk associated with such economic developments, at
September 30, 2009, 93.7% 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 1.3%
to 34.0% of total investments.
| (1) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). | |
| (2) | Security (or a portion thereof) has been pledged as collateral for open swap contracts. The aggregate value of such collateral is $260,622. | |
| (3) | Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts. |
28
Eaton Vance
Insured Ohio Municipal Bond
Fund as
of September 30, 2009
PORTFOLIO OF INVESTMENTS
| Tax-Exempt Investments — 150.6% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| General Obligations — 1.7% | ||||||||||
| $ | 500 | County of Franklin, 5.00%, 12/1/27(1) | $ | 558,325 | ||||||
| $ | 558,325 | |||||||||
| Hospital — 4.2% | ||||||||||
| $ | 500 | Miami County, (Upper Valley Medical Center), 5.25%, 5/15/26 | $ | 497,775 | ||||||
| 1,000 | Ohio Higher Educational Facilities Authority, (University Hospital Health Systems, Inc.), 4.75%, 1/15/46 | 863,080 | ||||||||
| $ | 1,360,855 | |||||||||
| Insured-Electric Utilities — 19.2% | ||||||||||
| $ | 700 | American Municipal Power-Ohio, Inc., (Prairie State Energy Campus), (AGC), 5.25%, 2/15/33 | $ | 752,430 | ||||||
| 2,750 | Cleveland Public Power System, (NPFG), 0.00%, 11/15/27 | 1,207,058 | ||||||||
| 1,000 | Cleveland Public Power System, (NPFG), 0.00%, 11/15/38 | 233,710 | ||||||||
| 1,670 | Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/25 | 771,072 | ||||||||
| 5,000 | Ohio Municipal Electric Generation Agency, (NPFG), 0.00%, 2/15/27 | 2,021,700 | ||||||||
| 755 | Ohio Water Development Authority, (Dayton Power & Light), (FGIC), 4.80%, 1/1/34 | 757,809 | ||||||||
| 500 | Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26 | 545,610 | ||||||||
| $ | 6,289,389 | |||||||||
| Insured-General Obligations — 41.2% | ||||||||||
| $ | 320 | Bowling Green City School District, (FSA), 5.00%, 12/1/34 | $ | 336,835 | ||||||
| 200 | Brookfield Local School District, (FSA), 5.00%, 1/15/30 | 215,594 | ||||||||
| 1,000 | Cleveland Municipal School District, (FSA), 5.00%, 12/1/27 | 1,056,550 | ||||||||
| 900 | Clyde-Green Springs Exempted Village School District, (FSA), 4.50%, 12/1/31 | 918,090 | ||||||||
| 1,575 | Cuyahoga Community College District, (AMBAC), 5.00%, 12/1/32 | 1,611,146 | ||||||||
| 1,000 | Milford Exempt Village School District, (AGC), 5.25%, 12/1/36 | 1,087,900 | ||||||||
| 1,400 | Olentangy Local School District, (AGC), 5.00%, 12/1/36 | 1,504,286 | ||||||||
| 280 | Olentangy Local School District, (FSA), 4.50%, 12/1/32 | 284,099 | ||||||||
| 520 | Pickerington Local School District, (NPFG), 4.25%, 12/1/34 | 523,011 | ||||||||
| 2,400 | Plain School District, (FGIC), (NPFG), 0.00%, 12/1/27 | 924,336 | ||||||||
| 750 | St. Mary’s School District, (FSA), 5.00%, 12/1/35 | 789,278 | ||||||||
| 500 | Sylvania City School District, (AGC), 5.00%, 12/1/26 | 547,225 | ||||||||
| 1,000 | Sylvania City School District, (AGC), 5.00%, 12/1/32 | 1,061,360 | ||||||||
| 500 | Tecumseh School District, (FGIC), (NPFG), 4.75%, 12/1/31 | 508,680 | ||||||||
| 2,000 | Wapakoneta City School District, (FSA), 4.75%, 12/1/35 | 2,109,620 | ||||||||
| $ | 13,478,010 | |||||||||
| Insured-Hospital — 12.6% | ||||||||||
| $ | 980 | Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.00%, 5/15/32 | $ | 987,184 | ||||||
| 1,500 | Hamilton County, (Cincinnati Children’s Hospital), (FGIC), (NPFG), 5.125%, 5/15/28 | 1,533,645 | ||||||||
| 440 | Lorain County, (Catholic Healthcare Partners), (FSA), Variable Rate, 17.343%, 2/1/29(2)(3)(4) | 540,742 | ||||||||
| 1,250 | Ohio Higher Educational Facility Commission, (University Hospital Health Systems, Inc.), (AMBAC), 4.75%, 1/15/46 | 1,078,850 | ||||||||
| $ | 4,140,421 | |||||||||
| Insured-Lease Revenue / Certificates of Participation — 6.2% | ||||||||||
| $ | 795 | Puerto Rico Public Buildings Authority, (CIFG), 5.25%, 7/1/36 | $ | 784,800 | ||||||
| 235 | Puerto Rico Public Buildings Authority, Government Facilities Revenue, (XLCA), 5.25%, 7/1/36 | 234,309 | ||||||||
| 1,000 | Summit County, (Civic Theater Project), (AMBAC), 5.00%, 12/1/33 | 1,007,280 | ||||||||
| $ | 2,026,389 | |||||||||
| Insured-Public Education — 30.0% | ||||||||||
| $ | 3,000 | Cincinnati Technical and Community College, (AMBAC), 5.00%, 10/1/28 | $ | 3,006,450 | ||||||
| 2,000 | Miami University, (AMBAC), (FSA), 3.25%, 9/1/26 | 1,807,640 | ||||||||
| 500 | Ohio University, (FSA), 5.00%, 12/1/33 | 529,530 | ||||||||
| 1,170 | Ohio University, (FSA), 5.25%, 12/1/23 | 1,275,756 | ||||||||
| 1,000 | University of Akron, (FSA), 5.00%, 1/1/38 | 1,060,980 | ||||||||
| 1,000 | University of Cincinnati, (AMBAC), 5.00%, 6/1/31 | 1,023,150 | ||||||||
| 1,000 | Youngstown State University, (AGC), 5.50%, 12/15/33 | 1,096,850 | ||||||||
| $ | 9,800,356 | |||||||||
| Insured-Sewer Revenue — 4.5% | ||||||||||
| $ | 710 | Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/46 | $ | 717,306 | ||||||
| 750 | Marysville Wastewater Treatment System, (AGC), (XLCA), 4.75%, 12/1/47 | 757,087 | ||||||||
| $ | 1,474,393 | |||||||||
| Insured-Special Tax Revenue — 10.3% | ||||||||||
| $ | 1,335 | Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/23 | $ | 679,061 | ||||||
| 3,665 | Hamilton County Sales Tax, (AMBAC), 0.00%, 12/1/24 | 1,750,990 | ||||||||
29
Eaton Vance
Insured Ohio Municipal Bond
Fund as
of September 30, 2009
PORTFOLIO OF
INVESTMENTS CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
|
Insured-Special
Tax Revenue (continued)
|
||||||||||
| $ | 8,430 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | $ | 637,308 | ||||||
| 1,530 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 209,426 | ||||||||
| 705 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 90,318 | ||||||||
| $ | 3,367,103 | |||||||||
| Insured-Transportation — 7.8% | ||||||||||
| $ | 1,965 | Cleveland Airport System, (FSA), 5.00%, 1/1/31 | $ | 1,982,430 | ||||||
| 500 | Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(5) | 571,842 | ||||||||
| $ | 2,554,272 | |||||||||
| Pooled Loans — 7.1% | ||||||||||
| $ | 1,395 | Cuyahoga County Port Authority, (Garfield Heights), 5.25%, 5/15/23 | $ | 1,047,324 | ||||||
| 1,140 | Rickenbacker Port Authority, Oasbo Expanded Asset Pool Loan, 5.375%, 1/1/32(5) | 1,274,110 | ||||||||
| $ | 2,321,434 | |||||||||
| Private Education — 5.8% | ||||||||||
| $ | 850 | Ohio Higher Educational Facilities Authority, (John Carroll University), 5.25%, 11/15/33 | $ | 859,359 | ||||||
| 1,000 | Ohio Higher Educational Facilities Authority, (Oberlin College), 5.00%, 10/1/33 | 1,040,590 | ||||||||
| $ | 1,899,949 | |||||||||
|
Total
Tax-Exempt Investments — 150.6%
|
||||||||||
|
(identified
cost $46,959,382)
|
$ | 49,270,896 | ||||||||
| Short-Term Investments — 2.9% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Description | Value | ||||||||
| $ | 948 | State Street Bank and Trust Euro Time Deposit, 0.01%, 10/1/09 | $ | 947,981 | ||||||
|
Total
Short-Term Investments — 2.9%
|
||||||||||
|
(identified
cost $947,981)
|
$ | 947,981 | ||||||||
|
Total
Investments — 153.5%
|
||||||||||
|
(identified
cost $47,907,363)
|
$ | 50,218,877 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid
Dividends — (52.0)%
|
$ | (17,000,787 | ) | |||||||
|
Other
Assets, Less Liabilities — (1.5)%
|
$ | (507,983 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 32,710,107 | ||||||||
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
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.
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by Ohio
municipalities. The ability of the issuers of the debt
securities to meet their obligations may be affected by economic
developments in a specific industry or municipality. In order to
reduce the risk associated with such economic developments, at
September 30, 2009, 85.9% 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 2.7%
to 25.7% of total investments.
| (1) | Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts. | |
| (2) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2009, the aggregate value of these securities is $540,742 or 1.7% of the Fund’s net assets. | |
| (3) | Security is subject to a shortfall agreement which may require the Fund to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the inverse floater. In case of a shortfall, the maximum potential amount of payments the Fund could ultimately be required to make under the agreement is $1,320,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the inverse floater. | |
| (4) | Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at September 30, 2009. | |
| (5) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). |
30
Eaton Vance
Insured Pennsylvania Municipal Bond
Fund as
of September 30, 2009
PORTFOLIO OF INVESTMENTS
| Tax-Exempt Investments — 156.4% | ||||||||||
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Hospital — 9.7% | ||||||||||
| $ | 500 | Lancaster County Hospital Authority, (Lancaster General Hospital), 4.50%, 3/15/36 | $ | 487,155 | ||||||
| 350 | Lebanon County Health Facilities Authority, (Good Samaritan Hospital), 6.00%, 11/15/35 | 334,446 | ||||||||
| 1,500 | Lehigh County General Purpose Authority, (Lehigh Valley Health Network), 5.25%, 7/1/32 | 1,509,480 | ||||||||
| 750 | Pennsylvania Higher Educational Facilities Authority, (UPMC Health System), 6.00%, 1/15/31 | 772,800 | ||||||||
| 875 | Philadelphia Hospitals and Higher Education Facilities Authority, (Children’s Hospital), 4.50%, 7/1/37 | 870,817 | ||||||||
| $ | 3,974,698 | |||||||||
| Insured-Electric Utilities — 5.1% | ||||||||||
| $ | 2,060 | Lehigh County Industrial Development Authority, (PPL Electric Utilities Corp.), (FGIC), (NPFG), 4.75%, 2/15/27 | $ | 2,069,600 | ||||||
| $ | 2,069,600 | |||||||||
| Insured-Escrowed / Prerefunded — 0.7% | ||||||||||
| $ | 270 | Southcentral General Authority, (Wellspan Health), (NPFG), Escrowed to Maturity, 5.25%, 5/15/31 | $ | 290,782 | ||||||
| $ | 290,782 | |||||||||
| Insured-General Obligations — 26.0% | ||||||||||
| $ | 1,650 | Armstrong County, (NPFG), 5.40%, 6/1/31 | $ | 1,696,266 | ||||||
| 660 | Centennial School District, (FSA), 5.25%, 12/15/37 | 711,381 | ||||||||
| 1,000 | Central Greene School District, (FSA), 5.00%, 2/15/35 | 1,053,780 | ||||||||
| 1,000 | Erie School District, (AMBAC), 0.00%, 9/1/30 | 349,420 | ||||||||
| 500 | Harrisburg School District, (AGC), 5.00%, 11/15/33 | 532,600 | ||||||||
| 2,555 | McKeesport School District, (NPFG), 0.00%, 10/1/21 | 1,563,302 | ||||||||
| 1,500 | Norwin School District, (FSA), 3.25%, 4/1/27 | 1,359,360 | ||||||||
| 1,500 | Reading School District, (FSA), 5.00%, 3/1/35 | 1,585,020 | ||||||||
| 1,000 | Scranton School District, (FSA), 5.00%, 7/15/38 | 1,050,460 | ||||||||
| 2,550 | Shaler Area School District, (XLCA), 0.00%, 9/1/33 | 737,894 | ||||||||
| $ | 10,639,483 | |||||||||
| Insured-Hospital — 8.4% | ||||||||||
| $ | 250 | Allegheny County Hospital Development Authority, (UPMC Health System), (NPFG), 6.00%, 7/1/24 | $ | 302,795 | ||||||
| 500 | Centre County Hospital Authority, (Mount Nittany Medical Center), (AGC), 6.25%, 11/15/44 | 530,045 | ||||||||
| 1,620 | Lehigh County General Purpose Authority, (Lehigh Valley Health Network), (FSA), 5.00%, 7/1/35(1) | 1,667,790 | ||||||||
| 1,000 | Washington County Hospital Authority, (Washington Hospital), (AMBAC), 5.125%, 7/1/28 | 929,840 | ||||||||
| $ | 3,430,470 | |||||||||
|
Insured-Lease
Revenue / Certificates of
Participation — 4.4%
|
||||||||||
| $ | 500 | Commonwealth Financing Authority, (AGC), 5.00%, 6/1/31 | $ | 535,185 | ||||||
| 1,215 | Philadelphia Authority for Industrial Development, (One Benjamin Franklin), (FSA), 4.75%, 2/15/27 | 1,286,357 | ||||||||
| $ | 1,821,542 | |||||||||
| Insured-Private Education — 12.3% | ||||||||||
| $ | 1,000 | Chester County Industrial Development Authority, Educational Facility, (Westtown School), (AMBAC), 5.00%, 1/1/31 | $ | 1,009,460 | ||||||
| 1,675 | Pennsylvania Higher Educational Facilities Authority, (Drexel University), (NPFG), 5.00%, 5/1/37 | 1,743,859 | ||||||||
| 1,755 | Pennsylvania Higher Educational Facilities Authority, (Temple University), (NPFG), 4.50%, 4/1/36 | 1,764,828 | ||||||||
| 500 | Pennsylvania Higher Educational Facilities Authority, (University of the Sciences in Philadelphia), (AGC), 5.00%, 11/1/37 | 526,845 | ||||||||
| $ | 5,044,992 | |||||||||
| Insured-Public Education — 13.2% | ||||||||||
| $ | 500 | Lycoming County Authority, (Pennsylvania College of Technology), (AGC), 5.50%, 10/1/37 | $ | 539,765 | ||||||
| 2,075 | Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32 | 2,053,254 | ||||||||
| 1,000 | Pennsylvania Higher Educational Facilities Authority, (Clarion University Foundation), (XLCA), 5.00%, 7/1/33 | 931,560 | ||||||||
| 500 | State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/27 | 550,110 | ||||||||
| 375 | State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/29 | 408,289 | ||||||||
| 875 | State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/32 | 936,241 | ||||||||
| $ | 5,419,219 | |||||||||
| Insured-Sewer Revenue — 16.3% | ||||||||||
| $ | 1,500 | Allegheny County Sanitation Authority, (BHAC), (NPFG), 5.00%, 12/1/22 | $ | 1,648,695 | ||||||
| 1,000 | Ambridge Borough Municipal Authority, Sewer Revenue, (FSA), 4.60%, 10/15/41 | 996,650 | ||||||||
| 1,920 | Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26 | 820,973 | ||||||||
| 1,555 | Erie Sewer Authority, Series A, (AMBAC), 0.00%, 12/1/25 | 708,629 | ||||||||
| 2,155 | Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/25 | 982,055 | ||||||||
| 1,500 | University Area Joint Authority, (NPFG), 5.00%, 11/1/26 | 1,512,930 | ||||||||
| $ | 6,669,932 | |||||||||
31
Eaton Vance
Insured Pennsylvania Municipal Bond
Fund as
of September 30, 2009
PORTFOLIO OF
INVESTMENTS CONT’D
|
Principal
Amount |
||||||||||
| (000’s omitted) | Security | Value | ||||||||
| Insured-Special Tax Revenue — 17.5% | ||||||||||
| $ | 4,350 | Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/29 | $ | 4,291,362 | ||||||
| 24,665 | Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54 | 1,864,674 | ||||||||
| 1,775 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/44 | 258,316 | ||||||||
| 3,520 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45 | 481,817 | ||||||||
| 2,220 | Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/46 | 284,404 | ||||||||
| $ | 7,180,573 | |||||||||
| Insured-Transportation — 20.2% | ||||||||||
| $ | 2,000 | Allegheny County Port Authority, (FGIC), (NPFG), 5.00%, 3/1/25 | $ | 2,047,000 | ||||||
| 1,000 | Allegheny County Port Authority, (FGIC), (NPFG), 5.00%, 3/1/29 | 1,017,270 | ||||||||
| 2,075 | Pennsylvania Turnpike Commission, (FSA), 5.25%, 7/15/30 | 2,504,670 | ||||||||
| 295 | Philadelphia Airport Revenue, (AGC), 5.375%, 6/15/29 | 317,402 | ||||||||
| 2,100 | Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(1) | 2,401,739 | ||||||||
| $ | 8,288,081 | |||||||||
| Insured-Utilities — 6.9% | ||||||||||
| $ | 3,000 | Philadelphia Gas Works Revenue, (AMBAC), 5.00%, 10/1/37 | $ | 2,811,330 | ||||||
| $ | 2,811,330 | |||||||||
| Insured-Water and Sewer — 0.4% | ||||||||||
| $ | 150 | Saxonburg Water and Sewer Authority, (AGC), 5.00%, 3/1/35 | $ | 155,490 | ||||||
| $ | 155,490 | |||||||||
| Insured-Water Revenue — 6.5% | ||||||||||
| $ | 1,150 | Pennsylvania Economic Development Financing Authority, (BHAC), 5.00%, 10/1/39 | $ | 1,235,204 | ||||||
| 1,530 | Philadelphia Water and Wastewater, (AMBAC), 4.25%, 11/1/31 | 1,442,591 | ||||||||
| $ | 2,677,795 | |||||||||
| Private Education — 7.3% | ||||||||||
| $ | 2,900 | Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania), 4.75%, 7/15/35 | $ | 2,990,857 | ||||||
| $ | 2,990,857 | |||||||||
|
Senior
Living / Life Care — 1.2%
|
||||||||||
| $ | 200 | Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24 | $ | 195,210 | ||||||
| 300 | Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/30 | 280,284 | ||||||||
| $ | 475,494 | |||||||||
| Special Tax Revenue — 0.3% | ||||||||||
| $ | 110 | Virgin Islands Public Finance Authority, 6.75%, 10/1/37 | $ | 117,942 | ||||||
| $ | 117,942 | |||||||||
|
Total
Tax-Exempt Investments — 156.4%
|
||||||||||
|
(identified
cost $63,135,710)
|
$ | 64,058,280 | ||||||||
|
Auction
Preferred Shares Plus Cumulative Unpaid
Dividends — (53.0)%
|
$ | (21,727,011 | ) | |||||||
|
Other
Assets, Less Liabilities — (3.4)%
|
$ | (1,374,879 | ) | |||||||
|
Net
Assets Applicable to Common Shares — 100.0%
|
$ | 40,956,390 | ||||||||
The percentage shown for each investment category in the
Portfolio of Investments is based on net assets applicable to
common shares.
AGC - Assured Guaranty Corp.
AMBAC - AMBAC Financial Group, Inc.
BHAC - Berkshire Hathaway Assurance Corp.
CIFG - CIFG Assurance North America, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
NPFG - National Public Finance Guaranty Corp.
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by
Pennsylvania municipalities. The ability of the issuers of the
debt securities to meet their obligations may be affected by
economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic
developments, at September 30, 2009, 88.2% of total
investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The
aggregate percentage insured by an individual financial
institution ranged from 2.7% to 26.9% of total investments.
| (1) | Security represents the underlying municipal bond of an inverse floater (see Note 1H). |
32
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL STATEMENTS
|
Insured
Municipal |
Insured
California |
Insured
Massachusetts |
Insured
Michigan |
|||||||||||||||
| As of September 30, 2009 | Fund II | Fund II | Fund | Fund | ||||||||||||||
| Assets | ||||||||||||||||||
|
Investments —
|
||||||||||||||||||
|
Identified cost
|
$ | 227,733,767 | $ | 84,958,627 | $ | 38,855,561 | $ | 33,673,638 | ||||||||||
|
Unrealized appreciation (depreciation)
|
278,778 | (306,100 | ) | 2,070,172 | 1,707,825 | |||||||||||||
|
Investments, at value
|
$ | 228,012,545 | $ | 84,652,527 | $ | 40,925,733 | $ | 35,381,463 | ||||||||||
|
Cash
|
$ | — | $ | 195,500 | $ | 535,965 | $ | — | ||||||||||
|
Interest receivable
|
2,813,050 | 798,566 | 507,416 | 496,980 | ||||||||||||||
|
Receivable for investments sold
|
740,951 | — | 285,174 | — | ||||||||||||||
|
Receivable for variation margin on open financial futures
contracts
|
27,094 | 10,750 | — | 1,875 | ||||||||||||||
|
Deferred debt issuance costs
|
143,158 | 28,723 | 6,481 | — | ||||||||||||||
|
Total assets
|
$ | 231,736,798 | $ | 85,686,066 | $ | 42,260,769 | $ | 35,880,318 | ||||||||||
| Liabilities | ||||||||||||||||||
|
Payable for floating rate notes issued
|
$ | 57,365,000 | $ | 9,575,000 | $ | 2,460,000 | $ | — | ||||||||||
|
Payable for investments purchased
|
— | — | 278,581 | — | ||||||||||||||
|
Payable for open swap contracts
|
338,808 | 195,299 | 92,708 | 73,099 | ||||||||||||||
|
Due to custodian
|
812,300 | — | — | 142,605 | ||||||||||||||
|
Payable to affiliates:
|
||||||||||||||||||
|
Investment adviser fee
|
83,180 | 33,475 | 16,307 | 13,424 | ||||||||||||||
|
Interest expense and fees payable
|
178,953 | 30,153 | 8,813 | — | ||||||||||||||
|
Accrued expenses
|
105,422 | 68,980 | 57,514 | 49,905 | ||||||||||||||
|
Total liabilities
|
$ | 58,883,663 | $ | 9,902,907 | $ | 2,913,923 | $ | 279,033 | ||||||||||
|
Auction preferred shares at liquidation value plus cumulative
unpaid dividends
|
$ | 44,703,449 | $ | 25,702,776 | $ | 13,576,257 | $ | 13,325,183 | ||||||||||
|
Net assets applicable to common shares
|
$ | 128,149,686 | $ | 50,080,383 | $ | 25,770,589 | $ | 22,276,102 | ||||||||||
| Sources of Net Assets | ||||||||||||||||||
|
Common shares, $0.01 par value, unlimited number of
shares authorized
|
$ | 99,527 | $ | 38,693 | $ | 17,584 | $ | 15,120 | ||||||||||
|
Additional paid-in capital
|
141,071,656 | 54,829,095 | 24,913,863 | 21,415,488 | ||||||||||||||
|
Accumulated net realized loss
|
(14,159,948 | ) | (4,533,729 | ) | (1,258,288 | ) | (914,463 | ) | ||||||||||
|
Accumulated undistributed net investment income
|
1,538,609 | 332,866 | 119,966 | 148,304 | ||||||||||||||
|
Net unrealized appreciation (depreciation)
|
(400,158 | ) | (586,542 | ) | 1,977,464 | 1,611,653 | ||||||||||||
|
Net assets applicable to common shares
|
$ | 128,149,686 | $ | 50,080,383 | $ | 25,770,589 | $ | 22,276,102 | ||||||||||
|
Auction
Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share) |
||||||||||||||||||
| 1,788 | 1,028 | 543 | 533 | |||||||||||||||
| Common Shares Outstanding | ||||||||||||||||||
| 9,952,664 | 3,869,283 | 1,758,401 | 1,511,977 | |||||||||||||||
| Net Asset Value Per Common Share | ||||||||||||||||||
|
Net assets applicable to common shares
¸
common shares issued and outstanding
|
$ | 12.88 | $ | 12.94 | $ | 14.66 | $ | 14.73 | ||||||||||
33
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Statements
of Assets and Liabilities
|
Insured New
Jersey |
Insured New
York |
Insured Ohio |
Insured
Pennsylvania |
|||||||||||||||
| As of September 30, 2009 | Fund | Fund II | Fund | Fund | ||||||||||||||
| Assets | ||||||||||||||||||
|
Investments —
|
||||||||||||||||||
|
Identified cost
|
$ | 60,628,093 | $ | 57,539,008 | $ | 47,907,363 | $ | 63,135,710 | ||||||||||
|
Unrealized appreciation
|
3,420,763 | 1,465,114 | 2,311,514 | 922,570 | ||||||||||||||
|
Investments, at value
|
$ | 64,048,856 | $ | 59,004,122 | $ | 50,218,877 | $ | 64,058,280 | ||||||||||
|
Cash
|
$ | 223,074 | $ | — | $ | — | $ | — | ||||||||||
|
Interest receivable
|
664,711 | 822,136 | 644,603 | 781,360 | ||||||||||||||
|
Receivable for investments sold
|
222,703 | — | — | 341,994 | ||||||||||||||
|
Receivable for variation margin on open financial futures
contracts
|
— | 7,500 | 7,844 | — | ||||||||||||||
|
Deferred debt issuance costs
|
8,290 | 26,325 | — | — | ||||||||||||||
|
Total assets
|
$ | 65,167,634 | $ | 59,860,083 | $ | 50,871,324 | $ | 65,181,634 | ||||||||||
| Liabilities | ||||||||||||||||||
|
Payable for floating rate notes issued
|
$ | 6,346,000 | $ | 11,335,000 | $ | 1,010,000 | $ | 1,860,000 | ||||||||||
|
Payable for investments purchased
|
1,356,300 | — | — | — | ||||||||||||||
|
Payable for open swap contracts
|
134,383 | 208,643 | 84,528 | 174,165 | ||||||||||||||
|
Due to custodian
|
— | 111,967 | — | 377,752 | ||||||||||||||
|
Payable to affiliates:
|
||||||||||||||||||
|
Investment adviser fee
|
23,807 | 22,641 | 5,506 | 17,248 | ||||||||||||||
|
Interest expense and fees payable
|
21,777 | 28,980 | 3,383 | 7,984 | ||||||||||||||
|
Accrued expenses
|
56,790 | 55,771 | 57,013 | 61,084 | ||||||||||||||
|
Total liabilities
|
$ | 7,939,057 | $ | 11,763,002 | $ | 1,160,430 | $ | 2,498,233 | ||||||||||
|
Auction preferred shares at liquidation value plus cumulative
unpaid dividends
|
$ | 19,600,555 | $ | 13,250,182 | $ | 17,000,787 | $ | 21,727,011 | ||||||||||
|
Net assets applicable to common shares
|
$ | 37,628,022 | $ | 34,846,899 | $ | 32,710,107 | $ | 40,956,390 | ||||||||||
| Sources of Net Assets | ||||||||||||||||||
|
Common shares, $0.01 par value, unlimited number of shares
authorized
|
$ | 25,745 | $ | 25,583 | $ | 25,198 | $ | 29,468 | ||||||||||
|
Additional paid-in capital
|
36,480,699 | 36,242,951 | 35,687,710 | 41,755,298 | ||||||||||||||
|
Accumulated net realized loss
|
(2,453,619 | ) | (2,985,764 | ) | (5,287,886 | ) | (1,973,894 | ) | ||||||||||
|
Accumulated undistributed net investment income
|
288,817 | 366,357 | 163,581 | 397,113 | ||||||||||||||
|
Net unrealized appreciation
|
3,286,380 | 1,197,772 | 2,121,504 | 748,405 | ||||||||||||||
|
Net assets applicable to common shares
|
$ | 37,628,022 | $ | 34,846,899 | $ | 32,710,107 | $ | 40,956,390 | ||||||||||
|
Auction
Preferred Shares Issued and Outstanding (Liquidation preference of $25,000 per share) |
||||||||||||||||||
| 784 | 530 | 680 | 869 | |||||||||||||||
| Common Shares Outstanding | ||||||||||||||||||
| 2,574,497 | 2,558,307 | 2,519,783 | 2,946,751 | |||||||||||||||
| Net Asset Value Per Common Share | ||||||||||||||||||
|
Net assets applicable to common shares
¸
common shares issued and outstanding
|
$ | 14.62 | $ | 13.62 | $ | 12.98 | $ | 13.90 | ||||||||||
34
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Statements
of Operations
|
Insured
Municipal |
Insured
California |
Insured
Massachusetts |
Insured
Michigan |
|||||||||||||||
| For the Year Ended September 30, 2009 | Fund II | Fund II | Fund | Fund | ||||||||||||||
| Investment Income | ||||||||||||||||||
|
Interest
|
$ | 11,598,247 | $ | 4,163,437 | $ | 1,991,232 | $ | 1,724,054 | ||||||||||
|
Total investment income
|
$ | 11,598,247 | $ | 4,163,437 | $ | 1,991,232 | $ | 1,724,054 | ||||||||||
| Expenses | ||||||||||||||||||
|
Investment adviser fee
|
$ | 1,048,737 | $ | 412,048 | $ | 202,638 | $ | 178,743 | ||||||||||
|
Trustees’ fees and expenses
|
8,311 | 3,563 | 2,026 | 1,848 | ||||||||||||||
|
Custodian fee
|
95,206 | 47,882 | 33,167 | 29,527 | ||||||||||||||
|
Transfer and dividend disbursing agent fees
|
20,580 | 20,247 | 19,934 | 19,887 | ||||||||||||||
|
Legal and accounting services
|
89,353 | 64,419 | 53,641 | 44,469 | ||||||||||||||
|
Printing and postage
|
27,278 | 10,970 | 8,816 | 10,243 | ||||||||||||||
|
Interest expense and fees
|
900,941 | 156,680 | 49,750 | — | ||||||||||||||
|
Preferred shares service fee
|
87,287 | 50,090 | 26,383 | 25,741 | ||||||||||||||
|
Miscellaneous
|
57,818 | 53,349 | 34,962 | 34,570 | ||||||||||||||
|
Total expenses
|
$ | 2,335,511 | $ | 819,248 | $ | 431,317 | $ | 345,028 | ||||||||||
|
Deduct —
|
||||||||||||||||||
|
Reduction of custodian fee
|
$ | 4,332 | $ | 2,836 | $ | 2,253 | $ | 1,245 | ||||||||||
|
Allocation of expenses to affiliate
|
110,345 | 43,489 | 21,286 | 18,805 | ||||||||||||||
|
Total expense reductions
|
$ | 114,677 | $ | 46,325 | $ | 23,539 | $ | 20,050 | ||||||||||
|
Net expenses
|
$ | 2,220,834 | $ | 772,923 | $ | 407,778 | $ | 324,978 | ||||||||||
|
Net investment income
|
$ | 9,377,413 | $ | 3,390,514 | $ | 1,583,454 | $ | 1,399,076 | ||||||||||
| Realized and Unrealized Gain (Loss) | ||||||||||||||||||
|
Net realized gain (loss) —
|
||||||||||||||||||
|
Investment transactions
|
$ | (5,775,406 | ) | $ | (1,094,794 | ) | $ | (477,473 | ) | $ | (62,378 | ) | ||||||
|
Financial futures contracts
|
(2,522,496 | ) | (739,596 | ) | — | (204,034 | ) | |||||||||||
|
Swap contracts
|
(2,432,881 | ) | (1,414,587 | ) | (659,333 | ) | (213,807 | ) | ||||||||||
|
Net realized loss
|
$ | (10,730,783 | ) | $ | (3,248,977 | ) | $ | (1,136,806 | ) | $ | (480,219 | ) | ||||||
|
Change in unrealized appreciation (depreciation) —
|
||||||||||||||||||
|
Investments
|
$ | 29,714,820 | $ | 9,792,193 | $ | 5,606,893 | $ | 3,787,410 | ||||||||||
|
Financial futures contracts
|
(599,639 | ) | (117,362 | ) | — | (34,566 | ) | |||||||||||
|
Swap contracts
|
(411,209 | ) | (232,131 | ) | (109,851 | ) | (82,053 | ) | ||||||||||
|
Net change in unrealized appreciation (depreciation)
|
$ | 28,703,972 | $ | 9,442,700 | $ | 5,497,042 | $ | 3,670,791 | ||||||||||
|
Net realized and unrealized gain
|
$ | 17,973,189 | $ | 6,193,723 | $ | 4,360,236 | $ | 3,190,572 | ||||||||||
|
Distributions to preferred shareholders —
|
||||||||||||||||||
|
From net investment income
|
$ | (578,404 | ) | $ | (325,864 | ) | $ | (174,091 | ) | $ | (170,213 | ) | ||||||
|
Net increase in net assets from operations
|
$ | 26,772,198 | $ | 9,258,373 | $ | 5,769,599 | $ | 4,419,435 | ||||||||||
35
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Statements
of Operations
|
Insured New
Jersey |
Insured New
York |
Insured Ohio |
Insured
Pennsylvania |
|||||||||||||||
| For the Year Ended September 30, 2009 | Fund | Fund II | Fund | Fund | ||||||||||||||
| Investment Income | ||||||||||||||||||
|
Interest
|
$ | 2,986,907 | $ | 2,799,051 | $ | 2,581,608 | $ | 3,181,954 | ||||||||||
|
Total investment income
|
$ | 2,986,907 | $ | 2,799,051 | $ | 2,581,608 | $ | 3,181,954 | ||||||||||
| Expenses | ||||||||||||||||||
|
Investment adviser fee
|
$ | 291,325 | $ | 280,740 | $ | 251,215 | $ | 317,153 | ||||||||||
|
Trustees’ fees and expenses
|
2,670 | 2,594 | 2,334 | 2,812 | ||||||||||||||
|
Custodian fee
|
36,870 | 32,757 | 37,930 | 38,116 | ||||||||||||||
|
Transfer and dividend disbursing agent fees
|
20,174 | 20,740 | 20,490 | 21,498 | ||||||||||||||
|
Legal and accounting services
|
56,402 | 53,806 | 48,302 | 53,590 | ||||||||||||||
|
Printing and postage
|
11,069 | 7,615 | 10,777 | 13,800 | ||||||||||||||
|
Interest expense and fees
|
142,273 | 180,119 | 26,096 | 56,803 | ||||||||||||||
|
Preferred shares service fee
|
37,453 | 25,954 | 33,756 | 44,054 | ||||||||||||||
|
Miscellaneous
|
38,726 | 37,310 | 47,916 | 51,406 | ||||||||||||||
|
Total expenses
|
$ | 636,962 | $ | 641,635 | $ | 478,816 | $ | 599,232 | ||||||||||
|
Deduct —
|
||||||||||||||||||
|
Reduction of custodian fee
|
$ | 2,080 | $ | 4,396 | $ | 741 | $ | 2,468 | ||||||||||
|
Allocation of expenses to affiliate
|
30,613 | 29,535 | 26,679 | 33,607 | ||||||||||||||
|
Total expense reductions
|
$ | 32,693 | $ | 33,931 | $ | 27,420 | $ | 36,075 | ||||||||||
|
Net expenses
|
$ | 604,269 | $ | 607,704 | $ | 451,396 | $ | 563,157 | ||||||||||
|
Net investment income
|
$ | 2,382,638 | $ | 2,191,347 | $ | 2,130,212 | $ | 2,618,797 | ||||||||||
| Realized and Unrealized Gain (Loss) | ||||||||||||||||||
|
Net realized gain (loss) —
|
||||||||||||||||||
|
Investment transactions
|
$ | (1,523,424 | ) | $ | (1,664,272 | ) | $ | (2,595,460 | ) | $ | (515,106 | ) | ||||||
|
Financial futures contracts
|
— | (362,578 | ) | (1,052,433 | ) | (713,446 | ) | |||||||||||
|
Swap contracts
|
(961,179 | ) | (531,057 | ) | (545,897 | ) | (394,342 | ) | ||||||||||
|
Net realized loss
|
$ | (2,484,603 | ) | $ | (2,557,907 | ) | $ | (4,193,790 | ) | $ | (1,622,894 | ) | ||||||
|
Change in unrealized appreciation (depreciation) —
|
||||||||||||||||||
|
Investments
|
$ | 9,685,596 | $ | 8,230,096 | $ | 8,463,283 | $ | 8,129,937 | ||||||||||
|
Financial futures contracts
|
— | (88,032 | ) | (162,373 | ) | (60,336 | ) | |||||||||||
|
Swap contracts
|
(159,370 | ) | (231,020 | ) | (101,230 | ) | (185,868 | ) | ||||||||||
|
Net change in unrealized appreciation (depreciation)
|
$ | 9,526,226 | $ | 7,911,044 | $ | 8,199,680 | $ | 7,883,733 | ||||||||||
|
Net realized and unrealized gain
|
$ | 7,041,623 | $ | 5,353,137 | $ | 4,005,890 | $ | 6,260,839 | ||||||||||
|
Distributions to preferred shareholders —
|
||||||||||||||||||
|
From net investment income
|
$ | (227,579 | ) | $ | (168,414 | ) | $ | (254,584 | ) | $ | (210,410 | ) | ||||||
|
From net realized gain
|
(40,658 | ) | — | — | (132,368 | ) | ||||||||||||
|
Net increase in net assets from operations
|
$ | 9,156,024 | $ | 7,376,070 | $ | 5,881,518 | $ | 8,536,858 | ||||||||||
36
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Statements
of Changes in Net Assets
| For the Year Ended September 30, 2009 |
Insured
Municipal |
Insured
California |
Insured
Massachusetts |
Insured
Michigan |
||||||||||||||
| Increase (Decrease) in Net Assets | Fund II | Fund II | Fund | Fund | ||||||||||||||
|
From operations —
|
||||||||||||||||||
|
Net investment income
|
$ | 9,377,413 | $ | 3,390,514 | $ | 1,583,454 | $ | 1,399,076 | ||||||||||
|
Net realized loss from investment transactions, financial
futures contracts and swap contracts
|
(10,730,783 | ) | (3,248,977 | ) | (1,136,806 | ) | (480,219 | ) | ||||||||||
|
Net change in unrealized appreciation (depreciation) from
investments, financial futures contracts and swap contracts
|
28,703,972 | 9,442,700 | 5,497,042 | 3,670,791 | ||||||||||||||
|
Distributions to preferred shareholders —
|
||||||||||||||||||
|
From net investment income
|
(578,404 | ) | (325,864 | ) | (174,091 | ) | (170,213 | ) | ||||||||||
|
Net increase in net assets from operations
|
$ | 26,772,198 | $ | 9,258,373 | $ | 5,769,599 | $ | 4,419,435 | ||||||||||
|
Distributions to common shareholders —
|
||||||||||||||||||
|
From net investment income
|
$ | (8,437,461 | ) | $ | (2,954,634 | ) | $ | (1,332,810 | ) | $ | (1,152,527 | ) | ||||||
|
Total distributions to common shareholders
|
$ | (8,437,461 | ) | $ | (2,954,634 | ) | $ | (1,332,810 | ) | $ | (1,152,527 | ) | ||||||
|
Capital share transactions —
|
||||||||||||||||||
|
Reinvestment of distributions to common shareholders
|
$ | 167,262 | $ | 58,277 | $ | 22,988 | $ | 1,776 | ||||||||||
|
Net increase in net assets from capital share transactions
|
$ | 167,262 | $ | 58,277 | $ | 22,988 | $ | 1,776 | ||||||||||
|
Net increase in net assets
|
$ | 18,501,999 | $ | 6,362,016 | $ | 4,459,777 | $ | 3,268,684 | ||||||||||
| Net Assets Applicable to Common Shares | ||||||||||||||||||
|
At beginning of year
|
$ | 109,647,687 | $ | 43,718,367 | $ | 21,310,812 | $ | 19,007,418 | ||||||||||
|
At end of year
|
$ | 128,149,686 | $ | 50,080,383 | $ | 25,770,589 | $ | 22,276,102 | ||||||||||
|
Accumulated
undistributed net investment income included in net assets applicable to common shares |
||||||||||||||||||
|
At end of year
|
$ | 1,538,609 | $ | 332,866 | $ | 119,966 | $ | 148,304 | ||||||||||
37
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Statements
of Changes in Net Assets
| For the Year Ended September 30, 2009 |
Insured New
Jersey |
Insured New
York |
Insured Ohio |
Insured
Pennsylvania |
||||||||||||||
| Increase (Decrease) in Net Assets | Fund | Fund II | Fund | Fund | ||||||||||||||
|
From operations —
|
||||||||||||||||||
|
Net investment income
|
$ | 2,382,638 | $ | 2,191,347 | $ | 2,130,212 | $ | 2,618,797 | ||||||||||
|
Net realized loss from investment transactions, financial
futures contracts and swap contracts
|
(2,484,603 | ) | (2,557,907 | ) | (4,193,790 | ) | (1,622,894 | ) | ||||||||||
|
Net change in unrealized appreciation (depreciation) from
investments, financial futures contracts and swap contracts
|
9,526,226 | 7,911,044 | 8,199,680 | 7,883,733 | ||||||||||||||
|
Distributions to preferred shareholders —
|
||||||||||||||||||
|
From net investment income
|
(227,579 | ) | (168,414 | ) | (254,584 | ) | (210,410 | ) | ||||||||||
|
From net realized gain
|
(40,658 | ) | — | — | (132,368 | ) | ||||||||||||
|
Net increase in net assets from operations
|
$ | 9,156,024 | $ | 7,376,070 | $ | 5,881,518 | $ | 8,536,858 | ||||||||||
|
Distributions to common shareholders —
|
||||||||||||||||||
|
From net investment income
|
$ | (2,106,960 | ) | $ | (2,014,492 | ) | $ | (1,729,034 | ) | $ | (2,217,812 | ) | ||||||
|
From net realized gain
|
(264,989 | ) | — | — | (803,880 | ) | ||||||||||||
|
Total distributions to common shareholders
|
$ | (2,371,949 | ) | $ | (2,014,492 | ) | $ | (1,729,034 | ) | $ | (3,021,692 | ) | ||||||
|
Capital share transactions —
|
||||||||||||||||||
|
Reinvestment of distributions to common shareholders
|
$ | 68,403 | $ | 26,563 | $ | 63,002 | $ | 28,342 | ||||||||||
|
Net increase in net assets from capital share transactions
|
$ | 68,403 | $ | 26,563 | $ | 63,002 | $ | 28,342 | ||||||||||
|
Net increase in net assets
|
$ | 6,852,478 | $ | 5,388,141 | $ | 4,215,486 | $ | 5,543,508 | ||||||||||
| Net Assets Applicable to Common Shares | ||||||||||||||||||
|
At beginning of year
|
$ | 30,775,544 | $ | 29,458,758 | $ | 28,494,621 | $ | 35,412,882 | ||||||||||
|
At end of year
|
$ | 37,628,022 | $ | 34,846,899 | $ | 32,710,107 | $ | 40,956,390 | ||||||||||
|
Accumulated
undistributed net investment income included in net assets applicable to common shares |
||||||||||||||||||
|
At end of year
|
$ | 288,817 | $ | 366,357 | $ | 163,581 | $ | 397,113 | ||||||||||
38
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Statements
of Changes in Net Assets
| For the Year Ended September 30, 2008 |
Insured
Municipal |
Insured
California |
Insured
Massachusetts |
Insured
Michigan |
||||||||||||||
| Increase (Decrease) in Net Assets | Fund II | Fund II | Fund | Fund | ||||||||||||||
|
From operations —
|
||||||||||||||||||
|
Net investment income
|
$ | 10,297,873 | $ | 3,798,696 | $ | 1,722,538 | $ | 1,474,663 | ||||||||||
|
Net realized gain (loss) from investment transactions, financial
futures contracts, swap contracts and disposal of investments in
violation of restrictions and net increase from payment by
affiliates
|
(3,296,427 | ) | (1,280,688 | ) | 114,279 | (46,294 | ) | |||||||||||
|
Net change in unrealized appreciation (depreciation) from
investments, financial futures contracts and swap contracts
|
(38,011,644 | ) | (12,552,618 | ) | (5,349,054 | ) | (3,874,532 | ) | ||||||||||
|
Distributions to preferred shareholders —
|
||||||||||||||||||
|
From net investment income
|
(1,667,740 | ) | (900,022 | ) | (507,893 | ) | (445,847 | ) | ||||||||||
|
From net realized gain
|
(1,161,353 | ) | (203,364 | ) | — | — | ||||||||||||
|
Net decrease in net assets from operations
|
$ | (33,839,291 | ) | $ | (11,137,996 | ) | $ | (4,020,130 | ) | $ | (2,892,010 | ) | ||||||
|
Distributions to common shareholders —
|
||||||||||||||||||
|
From net investment income
|
$ | (7,415,109 | ) | $ | (2,675,734 | ) | $ | (1,176,916 | ) | $ | (1,012,419 | ) | ||||||
|
From net realized gain
|
(2,838,122 | ) | (503,981 | ) | — | — | ||||||||||||
|
Total distributions to common shareholders
|
$ | (10,253,231 | ) | $ | (3,179,715 | ) | $ | (1,176,916 | ) | $ | (1,012,419 | ) | ||||||
|
Capital share transactions —
|
||||||||||||||||||
|
Reinvestment of distributions to common shareholders
|
$ | 128,062 | $ | 26,286 | $ | 31,699 | $ | — | ||||||||||
|
Net increase in net assets from capital share transactions
|
$ | 128,062 | $ | 26,286 | $ | 31,699 | $ | — | ||||||||||
|
Net decrease in net assets
|
$ | (43,964,460 | ) | $ | (14,291,425 | ) | $ | (5,165,347 | ) | $ | (3,904,429 | ) | ||||||
| Net Assets Applicable to Common Shares | ||||||||||||||||||
|
At beginning of year
|
$ | 153,612,147 | $ | 58,009,792 | $ | 26,476,159 | $ | 22,911,847 | ||||||||||
|
At end of year
|
$ | 109,647,687 | $ | 43,718,367 | $ | 21,310,812 | $ | 19,007,418 | ||||||||||
|
Accumulated
undistributed net investment income included in net assets applicable to common shares |
||||||||||||||||||
|
At end of year
|
$ | 1,164,595 | $ | 248,219 | $ | 50,662 | $ | 83,742 | ||||||||||
39
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Statements
of Changes in Net Assets
| For the Year Ended September 30, 2008 |
Insured New
Jersey |
Insured New
York |
Insured Ohio |
Insured
Pennsylvania |
||||||||||||||
| Increase (Decrease) in Net Assets | Fund | Fund II | Fund | Fund | ||||||||||||||
|
From operations —
|
||||||||||||||||||
|
Net investment income
|
$ | 2,520,205 | $ | 2,397,564 | $ | 2,382,011 | $ | 2,928,106 | ||||||||||
|
Net realized gain (loss) from investment transactions, financial
futures contracts and swap contracts
|
373,406 | (333,025 | ) | (856,569 | ) | 513,911 | ||||||||||||
|
Net change in unrealized appreciation (depreciation) from
investments, financial futures contracts and swap contracts
|
(9,096,667 | ) | (8,584,620 | ) | (8,337,645 | ) | (9,502,500 | ) | ||||||||||
|
Distributions to preferred shareholders —
|
||||||||||||||||||
|
From net investment income
|
(504,278 | ) | (606,399 | ) | (749,701 | ) | (694,287 | ) | ||||||||||
|
From net realized gain
|
(291,600 | ) | (125,820 | ) | — | (222,716 | ) | |||||||||||
|
Net decrease in net assets from operations
|
$ | (6,998,934 | ) | $ | (7,252,300 | ) | $ | (7,561,904 | ) | $ | (6,977,486 | ) | ||||||
|
Distributions to common shareholders —
|
||||||||||||||||||
|
From net investment income
|
$ | (1,811,913 | ) | $ | (1,785,552 | ) | $ | (1,571,565 | ) | $ | (2,040,898 | ) | ||||||
|
From net realized gain
|
(724,973 | ) | (459,185 | ) | — | (539,189 | ) | |||||||||||
|
Total distributions to common shareholders
|
$ | (2,536,886 | ) | $ | (2,244,737 | ) | $ | (1,571,565 | ) | $ | (2,580,087 | ) | ||||||
|
Capital share transactions —
|
||||||||||||||||||
|
Reinvestment of distributions to common shareholders
|
$ | 48,919 | $ | 8,866 | $ | 11,173 | $ | 15,455 | ||||||||||
|
Net increase in net assets from capital share transactions
|
$ | 48,919 | $ | 8,866 | $ | 11,173 | $ | 15,455 | ||||||||||
|
Net decrease in net assets
|
$ | (9,486,901 | ) | $ | (9,488,171 | ) | $ | (9,122,296 | ) | $ | (9,542,118 | ) | ||||||
| Net Assets Applicable to Common Shares | ||||||||||||||||||
|
At beginning of year
|
$ | 40,262,445 | $ | 38,946,929 | $ | 37,616,917 | $ | 44,955,000 | ||||||||||
|
At end of year
|
$ | 30,775,544 | $ | 29,458,758 | $ | 28,494,621 | $ | 35,412,882 | ||||||||||
|
Accumulated
undistributed net investment income included in net assets applicable to common shares |
||||||||||||||||||
|
At end of year
|
$ | 256,007 | $ | 326,581 | $ | 53,629 | $ | 239,893 | ||||||||||
40
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Statements
of Cash Flows
| For the Year Ended September 30, 2009 |
Insured
Municipal |
Insured
California |
Insured New
Jersey |
Insured New
York |
||||||||||||||
| Cash Flows From Operating Activities | Fund II | Fund II | Fund | Fund II | ||||||||||||||
|
Net increase in net assets from operations
|
$ | 26,772,198 | $ | 9,258,373 | $ | 9,156,024 | $ | 7,376,070 | ||||||||||
|
Distributions to preferred shareholders
|
578,404 | 325,864 | 268,237 | 168,414 | ||||||||||||||
|
Net increase in net assets from operations excluding
distributions to preferred shareholders
|
$ | 27,350,602 | $ | 9,584,237 | $ | 9,424,261 | $ | 7,544,484 | ||||||||||
|
Adjustments to reconcile net increase in net assets from
operations to net cash provided by (used in) operating
activities:
|
||||||||||||||||||
|
Investments purchased
|
(46,208,859 | ) | (14,783,806 | ) | (21,718,223 | ) | (17,357,856 | ) | ||||||||||
|
Investments sold
|
58,304,929 | 12,990,548 | 23,465,986 | 15,971,108 | ||||||||||||||
|
Net accretion/amortization of premium (discount)
|
(2,197,664 | ) | (942,588 | ) | (657,710 | ) | (298,735 | ) | ||||||||||
|
Amortization of deferred debt issuance costs
|
26,222 | 2,917 | 530 | 10,915 | ||||||||||||||
|
Decrease (increase) in interest receivable
|
97,697 | 16,684 | (69,880 | ) | (73,463 | ) | ||||||||||||
|
Decrease (increase) in receivable for investments sold
|
7,232,426 | 6,464,936 | (222,703 | ) | — | |||||||||||||
|
Decrease in receivable for variation margin on open financial
futures contracts
|
1,136,344 | 167,219 | — | 154,531 | ||||||||||||||
|
Decrease in receivable for open swap contracts
|
72,401 | 36,832 | 24,987 | 22,377 | ||||||||||||||
|
Decrease in receivable from transfer agent
|
20,785 | — | 4,748 | — | ||||||||||||||
|
Increase in payable for investments purchased
|
— | — | 340,029 | — | ||||||||||||||
|
Increase in payable for open swap contracts
|
338,808 | 195,299 | 134,383 | 208,643 | ||||||||||||||
|
Decrease in payable for closed swap contracts
|
(49,297 | ) | (18,692 | ) | (12,530 | ) | (12,530 | ) | ||||||||||
|
Increase in payable to affiliate for investment adviser fee
|
4,057 | 2,598 | 2,440 | 1,973 | ||||||||||||||
|
Decrease in interest expense and fees payable
|
(119,071 | ) | (13,268 | ) | (31,072 | ) | (35,906 | ) | ||||||||||
|
Increase (decrease) in accrued expenses
|
(35,811 | ) | 2,052 | 1,668 | 3,211 | |||||||||||||
|
Net change in unrealized (appreciation) depreciation from
investments
|
(29,714,820 | ) | (9,792,193 | ) | (9,685,596 | ) | (8,230,096 | ) | ||||||||||
|
Net realized loss from investments
|
5,775,406 | 1,094,794 | 1,523,424 | 1,664,272 | ||||||||||||||
|
Net cash provided by (used in) operating activities
|
$ | 22,034,155 | $ | 5,007,569 | $ | 2,524,742 | $ | (427,072 | ) | |||||||||
| Cash Flows From Financing Activities | ||||||||||||||||||
|
Distributions paid to common shareholders, net of reinvestments
|
$ | (8,270,199 | ) | $ | (2,896,357 | ) | $ | (2,303,546 | ) | $ | (1,987,929 | ) | ||||||
|
Cash distributions paid to preferred shareholders
|
(632,505 | ) | (374,891 | ) | (272,410 | ) | (168,232 | ) | ||||||||||
|
Liquidation of auction preferred shares
|
— | — | (700,000 | ) | — | |||||||||||||
|
Repayment of secured borrowings
|
(6,885,000 | ) | (3,580,000 | ) | (1,900,000 | ) | — | |||||||||||
|
Increase (decrease) in due to custodian
|
(6,246,451 | ) | — | — | 111,967 | |||||||||||||
|
Net cash used in financing activities
|
$ | (22,034,155 | ) | $ | (6,851,248 | ) | $ | (5,175,956 | ) | $ | (2,044,194 | ) | ||||||
|
Net decrease in cash
|
$ | — | $ | (1,843,679 | ) | $ | (2,651,214 | ) | $ | (2,471,266 | ) | |||||||
|
Cash at beginning of year
|
$ | — | $ | 2,039,179 | $ | 2,874,288 | $ | 2,471,266 | ||||||||||
|
Cash at end of year
|
$ | — | $ | 195,500 | $ | 223,074 | $ | — | ||||||||||
|
Supplemental
disclosure of cash flow information: |
||||||||||||||||||
|
Noncash financing activities not included herein consist of:
|
||||||||||||||||||
|
Reinvestment of dividends and distributions
|
$ | 167,262 | $ | 58,277 | $ | 68,403 | $ | 26,563 | ||||||||||
|
Cash paid for interest and fees
|
993,790 | 167,031 | 172,815 | 205,110 | ||||||||||||||
41
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured Municipal Fund II | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
|
Net asset value — Beginning of year (Common shares)
|
$ | 11.030 | $ | 15.470 | $ | 15.860 | $ | 15.310 | $ | 15.030 | ||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.943 | $ | 1.037 | $ | 1.048 | $ | 1.058 | $ | 1.094 | ||||||||||||
|
Net realized and unrealized gain (loss)
|
1.813 | (4.159 | ) | (0.383 | ) | 0.605 | 0.359 | |||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||
|
From net investment income
|
(0.058 | ) | (0.168 | ) | (0.303 | ) | (0.265 | ) | (0.169 | ) | ||||||||||||
|
From net realized gain
|
— | (0.117 | ) | — | — | — | (2) | |||||||||||||||
|
Total income (loss) from operations
|
$ | 2.698 | $ | (3.407 | ) | $ | 0.362 | $ | 1.398 | $ | 1.284 | |||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||
|
From net investment income
|
$ | (0.848 | ) | $ | (0.747 | ) | $ | (0.752 | ) | $ | (0.848 | ) | $ | (1.001 | ) | |||||||
|
From net realized gain
|
— | (0.286 | ) | — | — | (0.003 | ) | |||||||||||||||
|
Total distributions to common shareholders
|
$ | (0.848 | ) | $ | (1.033 | ) | $ | (0.752 | ) | $ | (0.848 | ) | $ | (1.004 | ) | |||||||
|
Net asset value — End of year (Common shares)
|
$ | 12.880 | $ | 11.030 | $ | 15.470 | $ | 15.860 | $ | 15.310 | ||||||||||||
|
Market value — End of year (Common shares)
|
$ | 13.370 | $ | 11.650 | $ | 14.550 | $ | 15.310 | $ | 16.170 | ||||||||||||
|
Total Investment Return on Net Asset
Value(3)
|
26.08 | % | (23.08 | )% | 2.43 | %(4) | 9.56 | % | 8.77 | % | ||||||||||||
|
Total Investment Return on Market
Value(3)
|
23.88 | % | (13.61 | )% | (0.20 | )%(4) | 0.13 | % | 16.51 | % | ||||||||||||
42
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured Municipal Fund II | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||
|
Net assets applicable to common shares, end of year (000’s
omitted)
|
$ | 128,150 | $ | 109,648 | $ | 153,612 | $ | 157,463 | $ | 151,937 | ||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):(5)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.28 | % | 1.09 | % | 1.00 | %(6) | 1.02 | % | 1.03 | % | ||||||||||||
|
Interest and fee
expense(7)
|
0.87 | % | 0.93 | % | 0.99 | % | 0.91 | % | 0.62 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
2.15 | % | 2.02 | % | 1.99 | %(6) | 1.93 | % | 1.65 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.27 | % | 1.05 | % | 0.99 | %(6) | 1.01 | % | 1.02 | % | ||||||||||||
|
Net investment income
|
9.05 | % | 7.40 | % | 6.62 | % | 6.87 | % | 7.11 | % | ||||||||||||
|
Portfolio Turnover
|
22 | % | 54 | % | 31 | % | 26 | % | 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 daily net assets applicable
to common shares and preferred
shares):(5)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
0.89 | % | 0.69 | % | 0.64 | %(6) | 0.65 | % | 0.65 | % | ||||||||||||
|
Interest and fee
expense(7)
|
0.61 | % | 0.60 | % | 0.64 | % | 0.58 | % | 0.40 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.50 | % | 1.29 | % | 1.28 | %(6) | 1.23 | % | 1.05 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
0.89 | % | 0.67 | % | 0.63 | %(6) | 0.64 | % | 0.65 | % | ||||||||||||
|
Net investment income
|
6.32 | % | 4.73 | % | 4.25 | % | 4.37 | % | 4.52 | % | ||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||
|
Total preferred shares outstanding
|
1,788 | 1,788 | 3,500 | 3,500 | 3,500 | |||||||||||||||||
|
Asset coverage per preferred
share(8)
|
$ | 96,674 | $ | 86,356 | $ | 68,894 | $ | 69,992 | $ | 68,411 | ||||||||||||
|
Involuntary liquidation preference per preferred
share(9)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
|
Approximate market value per preferred
share(9)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
| (1) | Computed using average common shares outstanding. | |
| (2) | Equal to less than $0.001 per share. | |
| (3) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (4) | During the year ended September 30, 2007, the investment 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) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (6) | 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. | |
| (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) | Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding. | |
| (9) | Plus accumulated and unpaid dividends. |
43
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured California Fund II | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
|
Net asset value — Beginning of year (Common shares)
|
$ | 11.310 | $ | 15.020 | $ | 15.330 | $ | 14.810 | $ | 14.510 | ||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.877 | $ | 0.983 | $ | 0.981 | $ | 0.989 | $ | 1.008 | ||||||||||||
|
Net realized and unrealized gain (loss)
|
1.601 | (3.583 | ) | (0.301 | ) | 0.547 | 0.360 | |||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||
|
From net investment income
|
(0.084 | ) | (0.233 | ) | (0.282 | ) | (0.243 | ) | (0.145 | ) | ||||||||||||
|
From net realized gain
|
— | (0.053 | ) | — | — | — | ||||||||||||||||
|
Total income (loss) from operations
|
$ | 2.394 | $ | (2.886 | ) | $ | 0.398 | $ | 1.293 | $ | 1.223 | |||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||
|
From net investment income
|
$ | (0.764 | ) | $ | (0.693 | ) | $ | (0.708 | ) | $ | (0.773 | ) | $ | (0.923 | ) | |||||||
|
From net realized gain
|
— | (0.131 | ) | — | — | — | ||||||||||||||||
|
Total distributions to common shareholders
|
$ | (0.764 | ) | $ | (0.824 | ) | $ | (0.708 | ) | $ | (0.773 | ) | $ | (0.923 | ) | |||||||
|
Net asset value — End of year (Common shares)
|
$ | 12.940 | $ | 11.310 | $ | 15.020 | $ | 15.330 | $ | 14.810 | ||||||||||||
|
Market value — End of year (Common shares)
|
$ | 12.500 | $ | 10.250 | $ | 14.250 | $ | 14.635 | $ | 14.770 | ||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
23.06 | % | (19.81 | )% | 2.75 | % | 9.15 | % | 8.65 | % | ||||||||||||
|
Total Investment Return on Market
Value(2)
|
31.17 | % | (23.40 | )% | 2.11 | % | 4.49 | % | 7.84 | % | ||||||||||||
44
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured California Fund II | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||
|
Net assets applicable to common shares, end of year (000’s
omitted)
|
$ | 50,080 | $ | 43,718 | $ | 58,010 | $ | 59,199 | $ | 57,187 | ||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):(3)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.51 | % | 1.23 | % | 1.11 | %(4) | 1.13 | % | 1.10 | % | ||||||||||||
|
Interest and fee
expense(5)
|
0.37 | % | 0.42 | % | 0.50 | % | 0.48 | % | 0.31 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.88 | % | 1.65 | % | 1.61 | %(4) | 1.61 | % | 1.41 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.50 | % | 1.19 | % | 1.09 | %(4) | 1.11 | % | 1.06 | % | ||||||||||||
|
Net investment income
|
8.23 | % | 7.11 | % | 6.42 | % | 6.66 | % | 6.81 | % | ||||||||||||
|
Portfolio Turnover
|
17 | % | 22 | % | 37 | % | 13 | % | 13 | % | ||||||||||||
|
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 daily net assets applicable
to common shares and preferred
shares):(3)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
0.93 | % | 0.76 | % | 0.71 | %(4) | 0.71 | % | 0.69 | % | ||||||||||||
|
Interest and fee
expense(5)
|
0.23 | % | 0.26 | % | 0.32 | % | 0.30 | % | 0.20 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.16 | % | 1.02 | % | 1.03 | %(4) | 1.01 | % | 0.89 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
0.93 | % | 0.74 | % | 0.69 | %(4) | 0.70 | % | 0.67 | % | ||||||||||||
|
Net investment income
|
5.07 | % | 4.42 | % | 4.09 | % | 4.19 | % | 4.28 | % | ||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||
|
Total preferred shares outstanding
|
1,028 | 1,028 | 1,350 | 1,350 | 1,350 | |||||||||||||||||
|
Asset coverage per preferred
share(6)
|
$ | 73,719 | $ | 67,578 | $ | 67,980 | $ | 68,858 | $ | 67,364 | ||||||||||||
|
Involuntary liquidation preference per preferred
share(7)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
|
Approximate market value per preferred
share(7)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
| (1) | Computed using average common shares outstanding. | |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (3) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (4) | 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. | |
| (5) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (6) | Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding. | |
| (7) | Plus accumulated and unpaid dividends. |
45
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured Massachusetts Fund | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
|
Net asset value — Beginning of year (Common shares)
|
$ | 12.130 | $ | 15.090 | $ | 15.640 | $ | 15.100 | $ | 14.870 | ||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.901 | $ | 0.981 | $ | 0.969 | $ | 0.983 | $ | 1.031 | ||||||||||||
|
Net realized and unrealized gain (loss)
|
2.486 | (2.981 | ) | (0.540 | ) | 0.613 | 0.290 | |||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||
|
From net investment income
|
(0.099 | ) | (0.289 | ) | (0.293 | ) | (0.256 | ) | (0.143 | ) | ||||||||||||
|
Total income (loss) from operations
|
$ | 3.288 | $ | (2.289 | ) | $ | 0.136 | $ | 1.340 | $ | 1.178 | |||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||
|
From net investment income
|
$ | (0.758 | ) | $ | (0.671 | ) | $ | (0.686 | ) | $ | (0.800 | ) | $ | (0.948 | ) | |||||||
|
Total distributions to common shareholders
|
$ | (0.758 | ) | $ | (0.671 | ) | $ | (0.686 | ) | $ | (0.800 | ) | $ | (0.948 | ) | |||||||
|
Net asset value — End of year (Common shares)
|
$ | 14.660 | $ | 12.130 | $ | 15.090 | $ | 15.640 | $ | 15.100 | ||||||||||||
|
Market value — End of year (Common shares)
|
$ | 15.250 | $ | 13.780 | $ | 14.820 | $ | 16.090 | $ | 17.350 | ||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
28.42 | % | (15.70 | )% | 0.88 | %(3) | 9.14 | % | 7.74 | % | ||||||||||||
|
Total Investment Return on Market
Value(2)
|
17.59 | % | (2.46 | )% | (3.72 | )%(3) | (2.28 | )% | 18.23 | % | ||||||||||||
46
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured Massachusetts Fund | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||
|
Net assets applicable to common shares, end of year (000’s
omitted)
|
$ | 25,771 | $ | 21,311 | $ | 26,476 | $ | 27,419 | $ | 26,441 | ||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):(4)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.69 | % | 1.41 | % | 1.25 | %(5) | 1.29 | % | 1.25 | % | ||||||||||||
|
Interest and fee
expense(6)
|
0.23 | % | 0.71 | % | 0.98 | % | 1.54 | % | 1.26 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.92 | % | 2.12 | % | 2.23 | %(5) | 2.83 | % | 2.51 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.68 | % | 1.38 | % | 1.25 | %(5) | 1.26 | % | 1.24 | % | ||||||||||||
|
Net investment income
|
7.41 | % | 6.83 | % | 6.27 | % | 6.50 | % | 6.79 | % | ||||||||||||
|
Portfolio Turnover
|
43 | % | 12 | % | 15 | % | 15 | % | 11 | % | ||||||||||||
|
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 daily net assets applicable
to common shares and preferred
shares):(4)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.03 | % | 0.88 | % | 0.81 | %(5) | 0.81 | % | 0.79 | % | ||||||||||||
|
Interest and fee
expense(6)
|
0.14 | % | 0.45 | % | 0.62 | % | 0.97 | % | 0.80 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.17 | % | 1.33 | % | 1.43 | %(5) | 1.78 | % | 1.59 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.03 | % | 0.87 | % | 0.80 | %(5) | 0.80 | % | 0.78 | % | ||||||||||||
|
Net investment income
|
4.53 | % | 4.27 | % | 3.99 | % | 4.10 | % | 4.29 | % | ||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||
|
Total preferred shares outstanding
|
543 | 543 | 620 | 620 | 620 | |||||||||||||||||
|
Asset coverage per preferred
share(7)
|
$ | 72,462 | $ | 64,287 | $ | 67,711 | $ | 69,229 | $ | 67,649 | ||||||||||||
|
Involuntary liquidation preference per preferred
share(8)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
|
Approximate market value per preferred
share(8)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
| (1) | Computed using average common shares outstanding. | |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (3) | 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. | |
| (4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (5) | 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. | |
| (6) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (7) | Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding. | |
| (8) | Plus accumulated and unpaid dividends. |
47
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured Michigan Fund | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
|
Net asset value — Beginning of year (Common shares)
|
$ | 12.570 | $ | 15.150 | $ | 15.430 | $ | 15.000 | $ | 14.840 | ||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.925 | $ | 0.975 | $ | 0.985 | $ | 0.991 | $ | 1.039 | ||||||||||||
|
Net realized and unrealized gain (loss)
|
2.110 | (2.590 | ) | (0.309 | ) | 0.462 | 0.233 | |||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||
|
From net investment income
|
(0.113 | ) | (0.295 | ) | (0.288 | ) | (0.252 | ) | (0.164 | ) | ||||||||||||
|
Total income (loss) from operations
|
$ | 2.922 | $ | (1.910 | ) | $ | 0.388 | $ | 1.201 | $ | 1.108 | |||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||
|
From net investment income
|
$ | (0.762 | ) | $ | (0.670 | ) | $ | (0.668 | ) | $ | (0.771 | ) | $ | (0.948 | ) | |||||||
|
Total distributions to common shareholders
|
$ | (0.762 | ) | $ | (0.670 | ) | $ | (0.668 | ) | $ | (0.771 | ) | $ | (0.948 | ) | |||||||
|
Net asset value — End of year (Common shares)
|
$ | 14.730 | $ | 12.570 | $ | 15.150 | $ | 15.430 | $ | 15.000 | ||||||||||||
|
Market value — End of year (Common shares)
|
$ | 13.900 | $ | 10.400 | $ | 14.030 | $ | 14.190 | $ | 16.200 | ||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
25.29 | % | (12.66 | )%(3) | 2.81 | % | 8.44 | % | 7.52 | % | ||||||||||||
|
Total Investment Return on Market
Value(2)
|
42.90 | % | (21.97 | )%(3) | 3.53 | % | (7.67 | )% | 11.26 | % | ||||||||||||
48
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured Michigan Fund | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||
|
Net assets applicable to common shares, end of year (000’s
omitted)
|
$ | 22,276 | $ | 19,007 | $ | 22,912 | $ | 23,335 | $ | 22,670 | ||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):(4)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.70 | % | 1.49 | % | 1.29 | %(5) | 1.32 | % | 1.28 | % | ||||||||||||
|
Interest and fee
expense(6)
|
— | % | 0.54 | % | 0.98 | % | 0.90 | % | 0.60 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.70 | % | 2.03 | % | 2.27 | %(5) | 2.22 | % | 1.88 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.69 | % | 1.48 | % | 1.27 | %(5) | 1.30 | % | 1.27 | % | ||||||||||||
|
Net investment income
|
7.30 | % | 6.72 | % | 6.43 | % | 6.62 | % | 6.88 | % | ||||||||||||
|
Portfolio Turnover
|
9 | % | 11 | % | 6 | % | 6 | % | 5 | % | ||||||||||||
|
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 daily net assets applicable
to common shares and preferred
shares):(4)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.00 | % | 0.93 | % | 0.81 | %(5) | 0.83 | % | 0.81 | % | ||||||||||||
|
Interest and fee
expense(6)
|
— | % | 0.33 | % | 0.62 | % | 0.56 | % | 0.38 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.00 | % | 1.26 | % | 1.43 | %(5) | 1.39 | % | 1.19 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.00 | % | 0.92 | % | 0.80 | %(5) | 0.82 | % | 0.80 | % | ||||||||||||
|
Net investment income
|
4.30 | % | 4.16 | % | 4.06 | % | 4.15 | % | 4.32 | % | ||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||
|
Total preferred shares outstanding
|
533 | 540 | 540 | 540 | 540 | |||||||||||||||||
|
Asset coverage per preferred
share(7)
|
$ | 66,794 | $ | 60,199 | $ | 67,442 | $ | 68,222 | $ | 66,986 | ||||||||||||
|
Involuntary liquidation preference per preferred
share(8)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
|
Approximate market value per preferred
share(8)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
| (1) | Computed using average common shares outstanding. | |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (3) | During the year ended September 30, 2008, 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. | |
| (4) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (5) | 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. | |
| (6) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (7) | Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding. | |
| (8) | Plus accumulated and unpaid dividends. |
49
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured New Jersey Fund | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
|
Net asset value — Beginning of year (Common shares)
|
$ | 11.980 | $ | 15.690 | $ | 15.840 | $ | 15.240 | $ | 14.990 | ||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.926 | $ | 0.982 | $ | 0.996 | $ | 1.002 | $ | 1.039 | ||||||||||||
|
Net realized and unrealized gain (loss)
|
2.740 | (3.393 | ) | (0.150 | ) | 0.671 | 0.330 | |||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||
|
From net investment income
|
(0.088 | ) | (0.196 | ) | (0.286 | ) | (0.253 | ) | (0.159 | ) | ||||||||||||
|
From net realized gain
|
(0.016 | ) | (0.114 | ) | — | — | — | |||||||||||||||
|
Total income (loss) from operations
|
$ | 3.562 | $ | (2.721 | ) | $ | 0.560 | $ | 1.420 | $ | 1.210 | |||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||
|
From net investment income
|
$ | (0.819 | ) | $ | (0.706 | ) | $ | (0.710 | ) | $ | (0.820 | ) | $ | (0.960 | ) | |||||||
|
From net realized gain
|
(0.103 | ) | (0.283 | ) | — | — | — | |||||||||||||||
|
Total distributions to common shareholders
|
$ | (0.922 | ) | $ | (0.989 | ) | $ | (0.710 | ) | $ | (0.820 | ) | $ | (0.960 | ) | |||||||
|
Net asset value — End of year (Common shares)
|
$ | 14.620 | $ | 11.980 | $ | 15.690 | $ | 15.840 | $ | 15.240 | ||||||||||||
|
Market value — End of year (Common shares)
|
$ | 14.730 | $ | 11.880 | $ | 14.790 | $ | 16.400 | $ | 16.240 | ||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
31.84 | % | (18.15 | )% | 3.64 | % | 9.65 | % | 8.18 | % | ||||||||||||
|
Total Investment Return on Market
Value(2)
|
33.95 | % | (13.88 | )% | (5.66 | )% | 6.53 | % | 11.56 | % | ||||||||||||
50
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured New Jersey Fund | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||
|
Net assets applicable to common shares, end of year (000’s
omitted)
|
$ | 37,628 | $ | 30,776 | $ | 40,262 | $ | 40,620 | $ | 39,032 | ||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):(3)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.53 | % | 1.33 | % | 1.14 | %(4) | 1.19 | % | 1.15 | % | ||||||||||||
|
Interest and fee
expense(5)
|
0.46 | % | 1.16 | % | 0.92 | % | 0.86 | % | 0.59 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.99 | % | 2.49 | % | 2.06 | %(4) | 2.05 | % | 1.74 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.52 | % | 1.28 | % | 1.11 | %(4) | 1.16 | % | 1.14 | % | ||||||||||||
|
Net investment income
|
7.81 | % | 6.72 | % | 6.29 | % | 6.59 | % | 6.78 | % | ||||||||||||
|
Portfolio Turnover
|
39 | % | 48 | % | 27 | % | 22 | % | 15 | % | ||||||||||||
|
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 daily net assets applicable
to common shares and preferred
shares):(3)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
0.93 | % | 0.84 | % | 0.73 | %(4) | 0.75 | % | 0.73 | % | ||||||||||||
|
Interest and fee
expense(5)
|
0.28 | % | 0.73 | % | 0.59 | % | 0.55 | % | 0.38 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.21 | % | 1.57 | % | 1.32 | %(4) | 1.30 | % | 1.11 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
0.92 | % | 0.81 | % | 0.72 | %(4) | 0.73 | % | 0.72 | % | ||||||||||||
|
Net investment income
|
4.75 | % | 4.24 | % | 4.05 | % | 4.18 | % | 4.31 | % | ||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||
|
Total preferred shares outstanding
|
784 | 812 | 900 | 900 | 900 | |||||||||||||||||
|
Asset coverage per preferred
share(6)
|
$ | 72,996 | $ | 62,907 | $ | 69,751 | $ | 70,144 | $ | 68,375 | ||||||||||||
|
Involuntary liquidation preference per preferred
share(7)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
|
Approximate market value per preferred
share(7)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
| (1) | Computed using average common shares outstanding. | |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (3) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (4) | 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. | |
| (5) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (6) | Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding. | |
| (7) | Plus accumulated and unpaid dividends. |
51
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured New York Fund II | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
|
Net asset value — Beginning of year (Common shares)
|
$ | 11.530 | $ | 15.240 | $ | 15.760 | $ | 15.300 | $ | 14.910 | ||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.857 | $ | 0.938 | $ | 0.969 | $ | 0.990 | $ | 1.008 | ||||||||||||
|
Net realized and unrealized gain (loss)
|
2.087 | (3.483 | ) | (0.256 | ) | 0.542 | 0.462 | |||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||
|
From net investment income
|
(0.066 | ) | (0.237 | ) | (0.209 | ) | (0.240 | ) | (0.148 | ) | ||||||||||||
|
From net realized gain
|
— | (0.049 | ) | (0.079 | ) | (0.015 | ) | — | ||||||||||||||
|
Total income (loss) from operations
|
$ | 2.878 | $ | (2.831 | ) | $ | 0.425 | $ | 1.277 | $ | 1.322 | |||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||
|
From net investment income
|
$ | (0.788 | ) | $ | (0.699 | ) | $ | (0.697 | ) | $ | (0.732 | ) | $ | (0.932 | ) | |||||||
|
From net realized gain
|
— | (0.180 | ) | (0.248 | ) | (0.085 | ) | — | ||||||||||||||
|
Total distributions to common shareholders
|
$ | (0.788 | ) | $ | (0.879 | ) | $ | (0.945 | ) | $ | (0.817 | ) | $ | (0.932 | ) | |||||||
|
Net asset value — End of year (Common shares)
|
$ | 13.620 | $ | 11.530 | $ | 15.240 | $ | 15.760 | $ | 15.300 | ||||||||||||
|
Market value — End of year (Common shares)
|
$ | 13.610 | $ | 10.580 | $ | 14.440 | $ | 14.420 | $ | 14.570 | ||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
26.71 | % | (19.25 | )% | 3.00 | % | 9.02 | % | 9.17 | % | ||||||||||||
|
Total Investment Return on Market
Value(2)
|
37.98 | % | (21.80 | )% | 6.66 | % | 4.75 | % | 7.19 | % | ||||||||||||
52
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured New York Fund II | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||
|
Net assets applicable to common shares, end of year (000’s
omitted)
|
$ | 34,847 | $ | 29,459 | $ | 38,947 | $ | 40,263 | $ | 39,101 | ||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):(3)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.51 | % | 1.33 | % | 1.16 | %(4) | 1.14 | % | 1.21 | % | ||||||||||||
|
Interest and fee
expense(5)
|
0.63 | % | 0.46 | % | 0.46 | % | 0.42 | % | 0.28 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
2.14 | % | 1.79 | % | 1.62 | %(4) | 1.56 | % | 1.49 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.50 | % | 1.28 | % | 1.14 | %(4) | 1.11 | % | 1.19 | % | ||||||||||||
|
Net investment income
|
7.67 | % | 6.67 | % | 6.24 | % | 6.48 | % | 6.60 | % | ||||||||||||
|
Portfolio Turnover
|
30 | % | 44 | % | 38 | % | 26 | % | 29 | % | ||||||||||||
|
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 daily net assets applicable
to common shares and preferred
shares):(3)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.03 | % | 0.83 | % | 0.74 | %(4) | 0.72 | % | 0.77 | % | ||||||||||||
|
Interest and fee
expense(5)
|
0.43 | % | 0.29 | % | 0.29 | % | 0.27 | % | 0.18 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.46 | % | 1.12 | % | 1.03 | %(4) | 0.99 | % | 0.95 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.02 | % | 0.80 | % | 0.73 | %(4) | 0.71 | % | 0.76 | % | ||||||||||||
|
Net investment income
|
5.24 | % | 4.17 | % | 3.98 | % | 4.11 | % | 4.18 | % | ||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||
|
Total preferred shares outstanding
|
530 | 530 | 900 | 900 | 900 | |||||||||||||||||
|
Asset coverage per preferred
share(6)
|
$ | 90,749 | $ | 80,583 | $ | 68,285 | $ | 69,746 | $ | 68,450 | ||||||||||||
|
Involuntary liquidation preference per preferred
share(7)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
|
Approximate market value per preferred
share(7)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
| (1) | Computed using average common shares outstanding. | |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (3) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (4) | 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. | |
| (5) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (6) | Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding. | |
| (7) | Plus accumulated and unpaid dividends. |
53
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured Ohio Fund | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
|
Net asset value — Beginning of year (Common shares)
|
$ | 11.330 | $ | 14.970 | $ | 15.330 | $ | 14.830 | $ | 14.640 | ||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.846 | $ | 0.948 | $ | 0.966 | $ | 0.978 | $ | 1.006 | ||||||||||||
|
Net realized and unrealized gain (loss)
|
1.592 | (3.665 | ) | (0.361 | ) | 0.497 | 0.219 | |||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||
|
From net investment income
|
(0.101 | ) | (0.298 | ) | (0.301 | ) | (0.263 | ) | (0.173 | ) | ||||||||||||
|
Total income (loss) from operations
|
$ | 2.337 | $ | (3.015 | ) | $ | 0.304 | $ | 1.212 | $ | 1.052 | |||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||
|
From net investment income
|
$ | (0.687 | ) | $ | (0.625 | ) | $ | (0.664 | ) | $ | (0.712 | ) | $ | (0.862 | ) | |||||||
|
Total distributions to common shareholders
|
$ | (0.687 | ) | $ | (0.625 | ) | $ | (0.664 | ) | $ | (0.712 | ) | $ | (0.862 | ) | |||||||
|
Net asset value — End of year (Common shares)
|
$ | 12.980 | $ | 11.330 | $ | 14.970 | $ | 15.330 | $ | 14.830 | ||||||||||||
|
Market value — End of year (Common shares)
|
$ | 13.250 | $ | 11.250 | $ | 13.710 | $ | 14.600 | $ | 14.510 | ||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
22.05 | % | (20.51 | )% | 2.17 | % | 8.58 | % | 7.29 | % | ||||||||||||
|
Total Investment Return on Market
Value(2)
|
25.48 | % | (13.81 | )% | (1.75 | )% | 5.69 | % | 1.11 | % | ||||||||||||
54
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured Ohio Fund | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||
|
Net assets applicable to common shares, end of year (000’s
omitted)
|
$ | 32,710 | $ | 28,495 | $ | 37,617 | $ | 38,532 | $ | 37,255 | ||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):(3)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.57 | % | 1.35 | % | 1.16 | %(4) | 1.19 | % | 1.18 | % | ||||||||||||
|
Interest and fee
expense(5)
|
0.10 | % | 0.29 | % | 0.53 | % | 0.41 | % | 0.25 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.67 | % | 1.64 | % | 1.69 | %(4) | 1.60 | % | 1.43 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.57 | % | 1.33 | % | 1.14 | %(4) | 1.16 | % | 1.16 | % | ||||||||||||
|
Net investment income
|
7.87 | % | 6.82 | % | 6.33 | % | 6.56 | % | 6.76 | % | ||||||||||||
|
Portfolio Turnover
|
18 | % | 22 | % | 30 | % | 16 | % | 8 | % | ||||||||||||
|
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 daily net assets applicable
to common shares and preferred
shares):(3)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
0.95 | % | 0.83 | % | 0.74 | %(4) | 0.75 | % | 0.74 | % | ||||||||||||
|
Interest and fee
expense(5)
|
0.06 | % | 0.18 | % | 0.34 | % | 0.26 | % | 0.16 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.01 | % | 1.01 | % | 1.08 | %(4) | 1.01 | % | 0.90 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
0.95 | % | 0.82 | % | 0.72 | %(4) | 0.73 | % | 0.73 | % | ||||||||||||
|
Net investment income
|
4.77 | % | 4.19 | % | 4.03 | % | 4.14 | % | 4.26 | % | ||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||
|
Total preferred shares outstanding
|
680 | 875 | 875 | 875 | 875 | |||||||||||||||||
|
Asset coverage per preferred
share(6)
|
$ | 73,104 | $ | 57,579 | $ | 67,991 | $ | 69,036 | $ | 67,586 | ||||||||||||
|
Involuntary liquidation preference per preferred
share(7)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
|
Approximate market value per preferred
share(7)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
| (1) | Computed using average common shares outstanding. | |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (3) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (4) | 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. | |
| (5) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (6) | Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding. | |
| (7) | Plus accumulated and unpaid dividends. |
55
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured Pennsylvania Fund | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
|
Net asset value — Beginning of year (Common shares)
|
$ | 12.030 | $ | 15.270 | $ | 15.470 | $ | 14.930 | $ | 14.410 | ||||||||||||
| Income (Loss) From Operations | ||||||||||||||||||||||
|
Net investment
income(1)
|
$ | 0.889 | $ | 0.995 | $ | 0.995 | $ | 0.994 | $ | 1.019 | ||||||||||||
|
Net realized and unrealized gain (loss)
|
2.123 | (3.047 | ) | (0.209 | ) | 0.559 | 0.587 | |||||||||||||||
|
Distributions to preferred shareholders
|
||||||||||||||||||||||
|
From net investment income
|
(0.071 | ) | (0.236 | ) | (0.291 | ) | (0.266 | ) | (0.173 | ) | ||||||||||||
|
From net realized gain
|
(0.045 | ) | (0.076 | ) | — | — | — | |||||||||||||||
|
Total income (loss) from operations
|
$ | 2.896 | $ | (2.364 | ) | $ | 0.495 | $ | 1.287 | $ | 1.433 | |||||||||||
| Less Distributions to Common Shareholders | ||||||||||||||||||||||
|
From net investment income
|
$ | (0.753 | ) | $ | (0.693 | ) | $ | (0.695 | ) | $ | (0.747 | ) | $ | (0.913 | ) | |||||||
|
From net realized gain
|
(0.273 | ) | (0.183 | ) | — | — | — | |||||||||||||||
|
Total distributions to common shareholders
|
$ | (1.026 | ) | $ | (0.876 | ) | $ | (0.695 | ) | $ | (0.747 | ) | $ | (0.913 | ) | |||||||
|
Net asset value — End of year (Common shares)
|
$ | 13.900 | $ | 12.030 | $ | 15.270 | $ | 15.470 | $ | 14.930 | ||||||||||||
|
Market value — End of year (Common shares)
|
$ | 14.600 | $ | 13.400 | $ | 14.150 | $ | 15.020 | $ | 15.540 | ||||||||||||
|
Total Investment Return on Net Asset
Value(2)
|
27.36 | % | (16.07 | )% | 3.44 | % | 9.00 | % | 10.01 | % | ||||||||||||
|
Total Investment Return on Market
Value(2)
|
20.09 | % | 0.88 | % | (1.28 | )% | 1.68 | % | 10.15 | % | ||||||||||||
56
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FINANCIAL
STATEMENTS CONT’D
Financial
Highlights
Selected data for
a common share outstanding during the periods stated
| Insured Pennsylvania Fund | ||||||||||||||||||||||
| Year Ended September 30, | ||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||
| Ratios/Supplemental Data | ||||||||||||||||||||||
|
Net assets applicable to common shares, end of year (000’s
omitted)
|
$ | 40,956 | $ | 35,413 | $ | 44,955 | $ | 45,516 | $ | 43,920 | ||||||||||||
|
Ratios (as a percentage of average daily net assets applicable
to common
shares):(3)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
1.52 | % | 1.30 | % | 1.15 | %(4) | 1.18 | % | 1.16 | % | ||||||||||||
|
Interest and fee
expense(5)
|
0.17 | % | 1.03 | % | 0.83 | % | 0.78 | % | 0.41 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.69 | % | 2.33 | % | 1.98 | %(4) | 1.96 | % | 1.57 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
1.51 | % | 1.28 | % | 1.12 | %(4) | 1.15 | % | 1.15 | % | ||||||||||||
|
Net investment income
|
7.80 | % | 6.86 | % | 6.45 | % | 6.64 | % | 6.91 | % | ||||||||||||
|
Portfolio Turnover
|
8 | % | 28 | % | 24 | % | 22 | % | 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 daily net assets applicable
to common shares and preferred
shares):(3)
|
||||||||||||||||||||||
|
Expenses excluding interest and fees
|
0.91 | % | 0.81 | % | 0.73 | %(4) | 0.74 | % | 0.73 | % | ||||||||||||
|
Interest and fee
expense(5)
|
0.10 | % | 0.64 | % | 0.53 | % | 0.49 | % | 0.26 | % | ||||||||||||
|
Total expenses before custodian fee reduction
|
1.01 | % | 1.45 | % | 1.26 | %(4) | 1.23 | % | 0.99 | % | ||||||||||||
|
Expenses after custodian fee reduction excluding interest and
fees
|
0.90 | % | 0.80 | % | 0.71 | %(4) | 0.72 | % | 0.72 | % | ||||||||||||
|
Net investment income
|
4.68 | % | 4.26 | % | 4.10 | % | 4.17 | % | 4.32 | % | ||||||||||||
|
Senior Securities:
|
||||||||||||||||||||||
|
Total preferred shares outstanding
|
869 | 1,040 | 1,040 | 1,040 | 1,040 | |||||||||||||||||
|
Asset coverage per preferred
share(6)
|
$ | 72,133 | $ | 59,091 | $ | 68,233 | $ | 68,770 | $ | 67,232 | ||||||||||||
|
Involuntary liquidation preference per preferred
share(7)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
|
Approximate market value per preferred
share(7)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | $ | 25,000 | ||||||||||||
| (1) | Computed using average common shares outstanding. | |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. | |
| (3) | Ratios do not reflect the effect of dividend payments to preferred shareholders. | |
| (4) | 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. | |
| (5) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1H). | |
| (6) | Calculated by subtracting the Fund’s total liabilities (not including the preferred shares) from the Fund’s total assets, and dividing the result by the number of preferred shares outstanding. | |
| (7) | Plus accumulated and unpaid dividends. |
57
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
NOTES TO FINANCIAL STATEMENTS
1 Significant
Accounting Policies
Eaton Vance Insured Municipal Bond Fund II (Insured
Municipal Fund II), Eaton Vance Insured California
Municipal Bond Fund II (Insured California Fund II),
Eaton Vance Insured 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.
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 source of authoritative accounting principles applied
in the preparation of the Funds’ financial statements is
the Financial Accounting Standards Board (FASB) Accounting
Standards Codification (the Codification), which superseded
existing non-Securities and Exchange Commission accounting and
reporting standards for interim and annual reporting periods
ending after September 15, 2009. The adoption of the
Codification for the current reporting period did not impact the
Funds’ application of generally accepted accounting
principles.
A Investment
Valuation — Municipal bonds and taxable
obligations, if any, are generally valued on the basis of
valuations furnished by a third party pricing service, as
derived from such service’s pricing models. Inputs to the
models may include, but are not limited to, reported trades,
executable bid and asked prices, broker/dealer quotations,
benchmark curves or information pertaining to the issuer. The
pricing service may use a matrix approach, which considers
information regarding securities with similar characteristics to
determine the valuation for a security. Financial futures
contracts are valued at the closing settlement price established
by the board of trade or exchange on which they are traded.
Interest rate swaps are normally valued using valuations
provided by a third party pricing service. Such pricing service
valuations are based on the present value of fixed and projected
floating rate cash flows over the term of the swap contract.
Future cash flows are discounted to their present value using
swap curves provided by electronic data services or by
broker/dealers. Short-term obligations, maturing in sixty days
or less, are generally valued at amortized cost, which
approximates market value. Investments for which valuations or
market quotations are not readily available or are deemed
unreliable are valued at fair value using methods determined in
good faith by or at the direction of the Trustees of a Fund in a
manner that most fairly reflects the security’s value, or
the amount that the Fund might reasonably expect to receive for
the security upon its current sale in the ordinary course. Each
such determination is based on a consideration of all relevant
factors, which are likely to vary from one pricing context to
another. These factors may include, but are not limited to, the
type of security, the existence of any contractual restrictions
on the security’s disposition, the price and extent of
public trading in similar securities of the issuer or of
comparable companies, quotations or relevant information
obtained from broker-dealers or other market participants,
information obtained from the issuer, analysts,
and/or the
appropriate stock exchange (for exchange-traded securities), an
analysis of the company’s financial condition, and an
evaluation of the forces that influence the issuer and the
market(s) in which the security is purchased and sold.
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 tax is necessary. Each Fund also seeks to avoid
payment of federal excise tax. 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, 2009, the following Funds, for federal
income tax purposes, had capital loss carryforwards which will
reduce the respective 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:
58
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
NOTES TO FINANCIAL
STATEMENTS CONT’D
| Fund | Amount | Expiration Date | ||||||||
|
Insured Municipal II
|
$ | 658,427 | September 30, 2016 | |||||||
| 2,011,041 | September 30, 2017 | |||||||||
|
Insured California II
|
$ | 52,500 | September 30, 2016 | |||||||
| 1,365,711 | September 30, 2017 | |||||||||
|
Insured Massachusetts
|
$ | 179,329 | September 30, 2013 | |||||||
| 94,578 | September 30, 2017 | |||||||||
|
Insured Michigan
|
$ | 384,407 | September 30, 2013 | |||||||
| 1,883 | September 30, 2016 | |||||||||
|
Insured New Jersey
|
$ | 244,927 | September 30, 2017 | |||||||
|
Insured New York II
|
$ | 41,818 | September 30, 2016 | |||||||
| 1,233,356 | September 30, 2017 | |||||||||
|
Insured Ohio
|
$ | 321,978 | September 30, 2013 | |||||||
| 83,319 | September 30, 2016 | |||||||||
| 1,620,085 | September 30, 2017 | |||||||||
During the year ended September 30, 2009, capital loss
carryforwards of $15,434 were utilized to offset net realized
gains by the Insured Michigan Fund.
Additionally, at September 30, 2009, the Insured Municipal
Fund II, Insured California Fund II, Insured
Massachusetts Fund, Insured Michigan Fund, Insured New Jersey
Fund, Insured New York Fund II, Insured Ohio Fund and
Insured Pennsylvania Fund had net capital losses of $11,660,513,
$3,404,426, $1,057,708, $579,640, $2,262,820, $1,660,342,
$3,402,294 and $1,901,230, respectively, attributable to
security transactions incurred after October 31, 2008.
These net capital losses are treated as arising on the first day
of the Funds’ taxable year ending September 30, 2010.
As of September 30, 2009, the Funds had 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, 2009 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, also referred to as residual interest bonds,
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
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 terminating the SPV. Should the Fund exercise such
right, it would pay the broker the par amount due on the
Floating Rate Notes and exchange the Inverse Floater for the
underlying Fixed Rate Bond. Pursuant to generally accepted
accounting principles for transfers and servicing of financial
assets and extinguishment of liabilities, 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
59
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
NOTES TO FINANCIAL
STATEMENTS CONT’D
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. The SPV may be
terminated by the Fund, as noted above, or by the broker upon
the occurrence of certain termination events as defined in the
trust agreement, such as a downgrade in the credit quality of
the underlying bond, bankruptcy of or payment failure by the
issuer of the underlying bond, the inability to remarket
Floating Rate Notes that have been tendered due to insufficient
buyers in the market, or the failure by the SPV to obtain
renewal of the liquidity agreement under which liquidity support
is provided for the Floating Rate Notes up to one year.
Structuring fees paid to the liquidity provider upon the
creation of an SPV have been recorded as debt issuance costs and
are being amortized as interest expense to the expected maturity
of the related trust. At September 30, 2009, the amounts of
the Funds’ Floating Rate Notes and related interest rates
and collateral were as follows:
|
Collateral |
||||||||||||
|
Floating |
Interest Rate |
for Floating |
||||||||||
|
Rate |
or Range of |
Rate |
||||||||||
|
Notes |
Interest |
Notes |
||||||||||
| Fund | Outstanding | Rates (%) | Outstanding | |||||||||
|
Insured Municipal II
|
$ | 57,365,000 | 0.32 – 0.95 | $ | 68,895,110 | |||||||
|
Insured California II
|
9,575,000 | 0.32 – 0.95 | 11,303,404 | |||||||||
|
Insured Massachusetts
|
2,460,000 | 0.36 | 3,056,815 | |||||||||
|
Insured Michigan
|
— | — | — | |||||||||
|
Insured New Jersey
|
6,346,000 | 0.33 – 0.48 | 8,589,591 | |||||||||
|
Insured New York II
|
11,335,000 | 0.33 – 0.48 | 13,205,223 | |||||||||
|
Insured Ohio
|
1,010,000 | 0.40 – 0.95 | 1,845,952 | |||||||||
|
Insured Pennsylvania
|
1,860,000 | 0.90 – 0.95 | 4,069,529 | |||||||||
For the year ended September 30, 2009, the Funds’
average floating rate notes outstanding and the average interest
rate including fees were as follows:
|
Average |
||||||||||
|
Floating |
Average |
|||||||||
|
Rate Notes |
Interest |
|||||||||
| Fund | Outstanding | Rate | ||||||||
|
Insured Municipal II
|
$ | 57,365,000 | 1.57 | % | ||||||
|
Insured California II
|
9,612,603 | 1.63 | ||||||||
|
Insured Massachusetts
|
2,683,562 | 1.85 | ||||||||
|
Insured Michigan
|
— | — | ||||||||
|
Insured New Jersey
|
6,637,507 | 2.14 | ||||||||
|
Insured New York II
|
11,335,000 | 1.59 | ||||||||
|
Insured Ohio
|
1,094,781 | 2.38 | ||||||||
|
Insured Pennsylvania
|
1,897,110 | 2.99 | ||||||||
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 Funds had no shortfalls
as of September 30, 2009.
The Funds may also purchase Inverse Floaters from brokers in a
secondary market transaction without first owning the underlying
fixed rate bond. Such transactions are not required to be
treated as secured borrowings. Shortfall agreements, if any,
related to Inverse Floaters purchased in a secondary market
transaction are disclosed in the Portfolios of Investments. 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. These securities tend to underperform the
market for fixed rate bonds in a rising long-term interest rate
environment, but tend to outperform the market for fixed rate
bonds when long-term interest rates decline. The value and
income of inverse floating rate securities are generally more
volatile than that of a fixed rate bond. The Funds’
investment policies do not allow the Funds to borrow money,
except as permitted by the 1940 Act. Management believes that
the Funds’ restrictions on borrowing money and issuing
senior securities (other than as specifically permitted) do not
apply to Floating Rate Notes issued by the SPV and included as a
liability in the Funds’ Statement of Assets and
Liabilities. As secured indebtedness issued by an SPV, Floating
Rate Notes are distinct from the borrowings and senior
securities to which the Funds’ restrictions 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. Futures contracts have minimal counterparty
risk as they are exchange traded and the clearinghouse for the
exchange is substituted as the counterparty, guaranteeing
counterparty performance.
60
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
NOTES TO FINANCIAL
STATEMENTS CONT’D
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.
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. 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.
During the year ended September 30, 2009, certain Funds
made a partial redemption of their APS at a liquidation price of
$25,000 per share. The number of APS redeemed and redemption
amount (excluding the final dividend payment) during the year
ended September 30, 2009 and the number of APS issued and
outstanding as of September 30, 2009 are as follows:
|
APS |
||||||||||||||
|
Redeemed |
Redemption |
APS Issued and |
||||||||||||
| Fund | During the Period | Amount | Outstanding | |||||||||||
|
Insured Municipal II
|
||||||||||||||
|
Series A
|
— | $ | — | 894 | ||||||||||
|
Series B
|
— | — | 894 | |||||||||||
|
Insured California II
|
— | — | 1,028 | |||||||||||
|
Insured Massachusetts
|
— | — | 543 | |||||||||||
|
Insured Michigan
|
7 | 175,000 | 533 | |||||||||||
|
Insured New Jersey
|
28 | 700,000 | 784 | |||||||||||
|
Insured New York II
|
— | — | 530 | |||||||||||
|
Insured Ohio
|
195 | 4,875,000 | 680 | |||||||||||
|
Insured Pennsylvania
|
171 | 4,275,000 | 869 | |||||||||||
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 0.15% (0.25% prior to March 2009) of the
liquidation value of the APS to broker-dealers as a service fee
if the auctions are unsuccessful; otherwise, the annual fee is
0.25%.
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, each Fund intends to distribute all or substantially
all of its net realized capital gains,
61
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
NOTES TO FINANCIAL
STATEMENTS CONT’D
(reduced by available capital loss carryforwards from prior
years, 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
September 30, 2009, and the amount of dividends paid
(including capital gains, if any) to APS shareholders, average
APS dividend rates, and dividend rate ranges for the year then
ended were as follows:
|
APS |
Dividends |
Average APS |
Dividend |
|||||||||||||
|
Dividend Rates
at |
Paid to APS |
Dividend |
Rate |
|||||||||||||
| Fund | September 30, 2009 | Shareholders | Rates | Ranges (%) | ||||||||||||
|
Insured Municipal II
|
||||||||||||||||
|
Series A
|
0.56 | % | $ | 283,387 | 1.27 | % | 0.35–12.26 | |||||||||
|
Series B
|
0.56 | 295,017 | 1.32 | 0.43–10.21 | ||||||||||||
|
Insured California II
|
0.56 | 325,864 | 1.27 | 0.35–12.26 | ||||||||||||
|
Insured Massachusetts
|
0.56 | 174,091 | 1.28 | 0.35–11.73 | ||||||||||||
|
Insured Michigan
|
0.50 | 170,213 | 1.28 | 0.38–8.65 | ||||||||||||
|
Insured New Jersey
|
0.52 | 268,237 | 1.36 | 0.40–8.50 | ||||||||||||
|
Insured New York II
|
0.50 | 168,414 | 1.27 | 0.38–8.65 | ||||||||||||
|
Insured Ohio
|
0.56 | 254,584 | 1.50 | 0.43–10.21 | ||||||||||||
|
Insured Pennsylvania
|
0.56 | 342,778 | 1.58 | 0.35–11.73 | ||||||||||||
Beginning February 13, 2008 and consistent with the
patterns in the broader market for auction-rate securities, the
Funds’ APS auctions were unsuccessful in clearing due to an
imbalance of sell orders over bids to buy the APS. As a result,
the dividend rates of the APS were reset to the maximum
applicable rates. The table above reflects such maximum dividend
rates for each series as of September 30, 2009.
The Funds distinguish between distributions on a tax basis and a
financial reporting basis. Accounting principles generally
accepted in the United States of America require that only
distributions in excess of tax basis earnings and profits be
reported in the financial statements as a return of capital.
Permanent differences between book and tax accounting relating
to distributions are reclassified to paid-in capital. For tax
purposes, distributions from short-term capital gains are
considered to be from ordinary income.
The tax character of distributions declared for the years ended
September 30, 2009 and September 30, 2008 was as
follows:
|
Insured
Municipal |
Insured
California |
Insured
Massachusetts |
Insured
Michigan |
|||||||||||||||
| Year Ended September 30, 2009 | Fund II | Fund II | Fund | Fund | ||||||||||||||
|
Distributions declared from:
|
||||||||||||||||||
|
Tax-exempt income
|
$ | 9,012,856 | $ | 3,279,960 | $ | 1,504,880 | $ | 1,322,740 | ||||||||||
|
Ordinary income
|
$ | 3,009 | $ | 538 | $ | 2,021 | $ | — | ||||||||||
|
Insured New
Jersey |
Insured New
York |
Insured Ohio |
Insured
Pennsylvania |
|||||||||||||||
| Year Ended September 30, 2009 | Fund | Fund II | Fund | Fund | ||||||||||||||
|
Distributions declared from:
|
||||||||||||||||||
|
Tax-exempt income
|
$ | 2,331,670 | $ | 2,182,191 | $ | 1,983,618 | $ | 2,423,937 | ||||||||||
|
Ordinary income
|
$ | 3,088 | $ | 715 | $ | — | $ | 188,110 | ||||||||||
|
Long-term capital gains
|
$ | 305,428 | $ | — | $ | — | $ | 752,423 | ||||||||||
|
Insured
Municipal |
Insured
California |
Insured
Massachusetts |
Insured
Michigan |
|||||||||||||||
| Year Ended September 30, 2008 | Fund II | Fund II | Fund | Fund | ||||||||||||||
|
Distributions declared from:
|
||||||||||||||||||
|
Tax-exempt income
|
$ | 9,080,464 | $ | 3,574,712 | $ | 1,684,809 | $ | 1,458,266 | ||||||||||
|
Ordinary income
|
$ | 2,407 | $ | 1,272 | $ | — | $ | — | ||||||||||
|
Long-term capital gains
|
$ | 3,999,453 | $ | 707,117 | $ | — | $ | — | ||||||||||
|
Insured New
Jersey |
Insured New
York |
Insured Ohio |
Insured
Pennsylvania |
|||||||||||||||
| Year Ended September 30, 2008 | Fund | Fund II | Fund | Fund | ||||||||||||||
|
Distributions declared from:
|
||||||||||||||||||
|
Tax-exempt income
|
$ | 2,315,970 | $ | 2,393,749 | $ | 2,321,266 | $ | 2,735,185 | ||||||||||
|
Ordinary income
|
$ | 221 | $ | — | $ | — | $ | — | ||||||||||
|
Long-term capital gains
|
$ | 1,016,573 | $ | 583,207 | $ | — | $ | 761,905 | ||||||||||
62
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
NOTES TO FINANCIAL
STATEMENTS CONT’D
| During the year ended September 30, 2009, the following amounts were reclassified due to non-deductible expenses and differences between book and tax accounting, primarily for accretion of market discount. | ||||||||||||||||||
|
Insured
Municipal |
Insured
California |
Insured
Massachusetts |
Insured
Michigan |
|||||||||||||||
| Fund II | Fund II | Fund | Fund | |||||||||||||||
|
Increase (decrease):
|
||||||||||||||||||
|
Accumulated net realized gain (loss)
|
$ | (12,466 | ) | $ | 25,369 | $ | 7,249 | $ | 11,774 | |||||||||
|
Accumulated undistributed net investment income
|
$ | 12,466 | $ | (25,369 | ) | $ | (7,249 | ) | $ | (11,774 | ) | |||||||
|
Insured New
Jersey |
Insured New
York |
Insured Ohio |
Insured
Pennsylvania |
|||||||||||||||
| Fund | Fund II | Fund | Fund | |||||||||||||||
|
Increase (decrease):
|
||||||||||||||||||
|
Paid-in capital
|
$ | (2,661 | ) | $ | — | $ | — | $ | (4,560 | ) | ||||||||
|
Accumulated net realized gain (loss)
|
$ | 17,950 | $ | (31,335 | ) | $ | 36,642 | $ | 37,915 | |||||||||
|
Accumulated undistributed net investment income
|
$ | (15,289 | ) | $ | 31,335 | $ | (36,642 | ) | $ | (33,355 | ) | |||||||
|
These reclassifications had no effect on the net assets or net asset value per share of the Funds. |
||||||||||||||||||
|
As of September 30, 2009, the components of distributable earnings (accumulated losses) and unrealized appreciation (depreciation) on a tax basis were as follows: |
||||||||||||||||||
|
Insured
Municipal |
Insured
California |
Insured
Massachusetts |
Insured
Michigan |
|||||||||||||||
| Fund II | Fund II | Fund | Fund | |||||||||||||||
|
Undistributed income
|
$ | 1,542,058 | $ | 335,642 | $ | 121,223 | $ | 148,487 | ||||||||||
|
Capital loss carryforward and post October losses
|
$ | (14,329,981 | ) | $ | (4,822,637 | ) | $ | (1,331,615 | ) | $ | (965,930 | ) | ||||||
|
Net unrealized appreciation (depreciation)
|
$ | (230,125 | ) | $ | (297,634 | ) | $ | 2,050,791 | $ | 1,663,120 | ||||||||
|
Other temporary differences
|
$ | (3,449 | ) | $ | (2,776 | ) | $ | (1,257 | ) | $ | (183 | ) | ||||||
|
Insured New
Jersey |
Insured New
York |
Insured Ohio |
Insured
Pennsylvania |
|||||||||||||||
| Fund | Fund II | Fund | Fund | |||||||||||||||
|
Undistributed income
|
$ | 289,372 | $ | 366,539 | $ | 164,368 | $ | 399,124 | ||||||||||
|
Capital loss carryforward and post October losses
|
$ | (2,507,747 | ) | $ | (2,935,516 | ) | $ | (5,427,676 | ) | $ | (1,901,230 | ) | ||||||
|
Net unrealized appreciation (depreciation)
|
$ | 3,340,508 | $ | 1,147,524 | $ | 2,261,294 | $ | 675,741 | ||||||||||
|
Other temporary differences
|
$ | (555 | ) | $ | (182 | ) | $ | (787 | ) | $ | (2,011 | ) | ||||||
|
The differences between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to wash sales, the timing of recognizing distributions to shareholders, futures contracts, accretion of market discount and inverse floaters. |
||||||||||||||||||
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 include the principal
amount of any indebtedness for money borrowed, including debt
securities issued by a Fund, and the amount of any outstanding
APS issued by the Fund. Pursuant to a fee reduction agreement
with EVM, average weekly gross assets are calculated by adding
to net assets the liquidation value of a Fund’s APS then
outstanding and the amount payable by the Fund to floating rate
note holders, such adjustment being limited to the value of the
APS outstanding prior to any APS redemptions by the Fund. 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 six full years of operations on
November 29, 2008. For the year ended September 30,
2009, the investment adviser fee and expenses contractually
reduced by EVM were as follows:
63
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
NOTES TO FINANCIAL
STATEMENTS CONT’D
|
Expenses |
||||||||||
|
Investment |
Reduced by |
|||||||||
| Fund | Adviser Fee | EVM | ||||||||
|
Insured Municipal II
|
$ | 1,048,737 | $ | 110,345 | ||||||
|
Insured California II
|
412,048 | 43,489 | ||||||||
|
Insured Massachusetts
|
202,638 | 21,286 | ||||||||
|
Insured Michigan
|
178,743 | 18,805 | ||||||||
|
Insured New Jersey
|
291,325 | 30,613 | ||||||||
|
Insured New York II
|
280,740 | 29,535 | ||||||||
|
Insured Ohio
|
251,215 | 26,679 | ||||||||
|
Insured Pennsylvania
|
317,153 | 33,607 | ||||||||
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 year ended September 30, 2009, 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 year ended September 30, 2009 were as
follows:
| Fund | Purchases | Sales | ||||||||
|
Insured Municipal II
|
$ | 46,208,859 | $ | 58,304,929 | ||||||
|
Insured California II
|
14,783,806 | 12,990,548 | ||||||||
|
Insured Massachusetts
|
15,534,440 | 15,118,044 | ||||||||
|
Insured Michigan
|
3,389,692 | 2,771,558 | ||||||||
|
Insured New Jersey
|
21,718,223 | 23,465,986 | ||||||||
|
Insured New York II
|
17,357,856 | 15,971,108 | ||||||||
|
Insured Ohio
|
8,495,441 | 16,211,953 | ||||||||
|
Insured Pennsylvania
|
4,486,202 | 13,101,722 | ||||||||
6 Common
Shares of Beneficial Interest
Common shares issued pursuant to the Funds’ dividend
reinvestment plan for the years ended September 30, 2009
and September 30, 2008 were as follows:
| Year Ended September 30, | ||||||||||
| Fund | 2009 | 2008 | ||||||||
|
Insured Municipal II
|
15,775 | 9,912 | ||||||||
|
Insured California II
|
5,322 | 2,036 | ||||||||
|
Insured Massachusetts
|
1,835 | 2,256 | ||||||||
|
Insured Michigan
|
132 | — | ||||||||
|
Insured New Jersey
|
5,648 | 3,482 | ||||||||
|
Insured New York II
|
2,353 | 667 | ||||||||
|
Insured Ohio
|
5,911 | 959 | ||||||||
|
Insured Pennsylvania
|
2,397 | 1,182 | ||||||||
7 Federal
Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) of
investments of each Fund at September 30, 2009, as
determined on a federal income tax basis, were as follows:
|
Insured Municipal Fund II
|
||||||
|
Aggregate cost
|
$ | 170,538,862 | ||||
|
Gross unrealized appreciation
|
$ | 12,307,633 | ||||
|
Gross unrealized depreciation
|
(12,198,950 | ) | ||||
|
Net unrealized appreciation
|
$ | 108,683 | ||||
|
Insured California Fund II
|
||||||
|
Aggregate cost
|
$ | 75,179,862 | ||||
|
Gross unrealized appreciation
|
$ | 4,092,231 | ||||
|
Gross unrealized depreciation
|
(4,194,566 | ) | ||||
|
Net unrealized depreciation
|
$ | (102,335 | ) | |||
|
Insured Massachusetts Fund
|
||||||
|
Aggregate cost
|
$ | 36,322,234 | ||||
|
Gross unrealized appreciation
|
$ | 2,865,444 | ||||
|
Gross unrealized depreciation
|
(721,945 | ) | ||||
|
Net unrealized appreciation
|
$ | 2,143,499 | ||||
|
Insured Michigan Fund
|
||||||
|
Aggregate cost
|
$ | 33,645,244 | ||||
|
Gross unrealized appreciation
|
$ | 2,413,892 | ||||
|
Gross unrealized depreciation
|
(677,673 | ) | ||||
|
Net unrealized appreciation
|
$ | 1,736,219 | ||||
|
Insured New Jersey Fund
|
||||||
|
Aggregate cost
|
$ | 54,227,965 | ||||
|
Gross unrealized appreciation
|
$ | 4,535,554 | ||||
|
Gross unrealized depreciation
|
(1,060,663 | ) | ||||
|
Net unrealized appreciation
|
$ | 3,474,891 | ||||
64
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
NOTES TO FINANCIAL
STATEMENTS CONT’D
|
Insured New York Fund II
|
||||||
|
Aggregate cost
|
$ | 46,312,955 | ||||
|
Gross unrealized appreciation
|
$ | 3,129,041 | ||||
|
Gross unrealized depreciation
|
(1,772,874 | ) | ||||
|
Net unrealized appreciation
|
$ | 1,356,167 | ||||
|
Insured Ohio Fund
|
||||||
|
Aggregate cost
|
$ | 46,863,055 | ||||
|
Gross unrealized appreciation
|
$ | 3,498,365 | ||||
|
Gross unrealized depreciation
|
(1,152,543 | ) | ||||
|
Net unrealized appreciation
|
$ | 2,345,822 | ||||
|
Insured Pennsylvania Fund
|
||||||
|
Aggregate cost
|
$ | 61,348,374 | ||||
|
Gross unrealized appreciation
|
$ | 2,896,578 | ||||
|
Gross unrealized depreciation
|
(2,046,672 | ) | ||||
|
Net unrealized appreciation
|
$ | 849,906 | ||||
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 September 30, 2009, the Insured
Municipal Fund II, Insured Michigan Fund, Insured New York
Fund II and Insured Pennsylvania Fund had payments due to
SSBT pursuant to the foregoing arrangement of $812,300,
$142,605, $111,967 and $377,752, respectively.
9 Financial Instruments
The Funds may trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities.
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 do not
necessarily represent the amounts potentially subject to risk.
The measurement of the risks associated with these instruments
is meaningful only when all related and offsetting transactions
are considered.
A summary of obligations under these financial instruments at
September 30, 2009 is as follows:
| Futures Contracts | ||||||||||||||||||
|
Net |
||||||||||||||||||
|
Expiration |
Aggregate |
Unrealized |
||||||||||||||||
| Fund | Date | Contracts | Position | Cost | Value | Depreciation | ||||||||||||
| Insured Municipal II | 12/09 |
116 U.S. Treasury Bond |
Short | $ | (13,852,531 | ) | $ | (14,079,500 | ) | $ | (226,969 | ) | ||||||
| 12/09 |
61 U.S. Treasury Note |
Short | $ | (7,104,857 | ) | $ | (7,218,016 | ) | $ | (113,159 | ) | |||||||
| Insured California II | 12/09 |
43 U.S. Treasury Bond |
Short | $ | (5,133,982 | ) | $ | (5,219,125 | ) | $ | (85,143 | ) | ||||||
| Insured Michigan | 12/09 |
8 U.S. Treasury Bond |
Short | $ | (955,347 | ) | $ | (971,000 | ) | $ | (15,653 | ) | ||||||
| 12/09 |
4 U.S. Treasury Note |
Short | $ | (465,892 | ) | $ | (473,312 | ) | $ | (7,420 | ) | |||||||
|
Insured New York II |
12/09 |
30 U.S. Treasury Bond |
Short | $ | (3,582,551 | ) | $ | (3,641,250 | ) | $ | (58,699 | ) | ||||||
| Insured Ohio | 12/09 |
34 U.S. Treasury Bond |
Short | $ | (4,060,224 | ) | $ | (4,126,750 | ) | $ | (66,526 | ) | ||||||
| 12/09 |
21 U.S. Treasury Note |
Short | $ | (2,445,934 | ) | $ | (2,484,890 | ) | $ | (38,956 | ) | |||||||
| Interest Rate Swaps | ||||||||||||||||
| Insured Municipal Fund II | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
JPMorgan Chase Co. |
$ | 3,000,000 | 4.097% |
3-month USD-LIBOR-BBA |
March 15, 2010/ March 15, 2040 |
$ | (41,767 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
3,000,000 | 4.517 |
3-month USD-LIBOR-BBA |
December 1, 2009/ December 1, 2039 |
(297,041 | ) | ||||||||||
| $ | (338,808 | ) | ||||||||||||||
| Insured California Fund II | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
| JPMorgan Chase Co. | $ | 1,137,500 | 4.097% |
3-month USD-LIBOR-BBA |
March 15, 2010/ March 15, 2040 |
$ | (15,837 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
1,812,500 | 4.517 |
3-month USD-LIBOR-BBA |
December 1, 2009/ December 1, 2039 |
(179,462 | ) | ||||||||||
| $ | (195,299 | ) | ||||||||||||||
65
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
NOTES TO FINANCIAL
STATEMENTS CONT’D
| Insured Massachusetts Fund | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
JPMorgan Chase Co. |
$ | 525,000 | 4.097% |
3-month USD-LIBOR-BBA |
March 15, 2010/ March 15, 2040 |
$ | (7,309 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
862,500 | 4.517 |
3-month USD-LIBOR- BBA |
December 1, 2009/ December 1, 2039 |
(85,399 | ) | ||||||||||
| $ | (92,708 | ) | ||||||||||||||
| Insured Michigan Fund | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
JPMorgan Chase Co. |
$ | 450,000 | 4.097% |
3-month USD-LIBOR-BBA |
March 15, 2010/ March 15, 2040 |
$ | (6,265 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
675,000 | 4.517 |
3-month USD-LIBOR-BBA |
December 1, 2009/ December 1, 2039 |
(66,834 | ) | ||||||||||
| $ | (73,099 | ) | ||||||||||||||
| Insured New Jersey Fund | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
JPMorgan Chase Co. |
$ | 762,500 | 4.097% |
3-month USD-LIBOR-BBA |
March 15, 2010/ March 15, 2040 |
$ | (10,616 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
1,250,000 | 4.517 |
3-month USD-LIBOR-BBA |
December 1, 2009/ December 1, 2039 |
(123,767 | ) | ||||||||||
| $ | (134,383 | ) | ||||||||||||||
| Insured New York Fund II | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
JPMorgan Chase Co. |
$ | 762,500 | 4.097% |
3-month USD-LIBOR-BBA |
March 15, 2010/ March 15, 2040 |
$ | (10,616 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
2,000,000 | 4.517 |
3-month USD-LIBOR-BBA |
December 1, 2009/ December 1, 2039 |
(198,027 | ) | ||||||||||
| $ | (208,643 | ) | ||||||||||||||
| Insured Ohio Fund | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
JPMorgan Chase Co. |
$ | 737,500 | 4.097% |
3-month USD-LIBOR-BBA |
March 15, 2010/ March 15, 2040 |
$ | (10,268 | ) | ||||||||
|
Merrill Lynch Capital Services, Inc. |
750,000 | 4.517 |
3-month USD-LIBOR-BBA |
December 1, 2009/ December 1, 2039 |
(74,260 | ) | ||||||||||
| $ | (84,528 | ) | ||||||||||||||
| Insured Pennsylvania Fund | ||||||||||||||||
|
Annual |
Floating |
Effective
Date/ |
||||||||||||||
|
Notional |
Fixed Rate |
Rate |
Termination |
Net Unrealized |
||||||||||||
| Counterparty | Amount | Paid By Fund | Paid To Fund | Date | Depreciation | |||||||||||
|
Barclays Bank PLC |
$ | 3,000,000 | 4.247% |
3-month USD-LIBOR-BBA |
October 27, 2009/ July 27, 2039 |
$ | (164,071 | ) | ||||||||
|
JPMorgan Chase Co. |
725,000 | 4.097 |
3-month USD-LIBOR-BBA |
March 15, 2010/ March 15, 2040 |
(10,094 | ) | ||||||||||
| $ | (174,165 | ) | ||||||||||||||
The effective date represents the date on which a Fund and the
counterparty to the interest rate swap contract begin interest
payment accruals.
At September 30, 2009, the Funds had sufficient cash
and/or
securities to cover commitments under these contracts.
The Funds adopted FASB Statement of Financial Accounting
Standards No. 161 (FAS 161), “Disclosures about
Derivative Instruments and Hedging Activities”, (currently
FASB Accounting Standards Codification (ASC)
815-10),
effective April 1, 2009. Such standard 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. The
disclosure below includes additional information as a result of
implementing FAS 161.
Each Fund is subject to interest rate risk in the normal course
of pursuing its investment objectives. Because the Funds hold
fixed rate bonds, the value of these bonds may decrease if
interest rates rise. To hedge against this risk, each Fund may
enter into interest rate swap contracts. The Funds may also
purchase and sell U.S. Treasury futures contracts to hedge
against changes in interest rates.
The Funds enter into interest rate swap contracts that may
contain provisions whereby the counterparty may terminate the
contract under certain conditions, including but not limited to
a decline in a Fund’s net assets below a certain level over
a certain period of time, which would
66
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
NOTES TO FINANCIAL
STATEMENTS CONT’D
trigger a payment by the Fund for those swaps in a liability
position. At September 30, 2009, the fair value of interest
rate swaps with credit-related contingent features in a
liability position was equal to the fair value of the liability
derivative related to interest rate swaps included in the table
below for each respective Fund. The value of securities pledged
as collateral, if any, for open interest rate swap contracts at
September 30, 2009 is disclosed in a note to each
Fund’s Portfolio of Investments.
The fair values of derivative instruments (not considered to be
hedging instruments for accounting disclosure purposes) and
whose primary underlying risk exposure is interest rate risk at
September 30, 2009 were as follows:
| Fair Value | ||||||||||
| Asset Derivative | Liability Derivative | |||||||||
|
Insured Municipal II Fund
|
||||||||||
|
Futures Contracts
|
$ | — | $ | (340,128 | )(1) | |||||
|
Interest Rate Swaps
|
— | (338,808 | )(2) | |||||||
|
Total
|
$ | — | $ | (678,936 | ) | |||||
|
Insured California II Fund
|
||||||||||
|
Futures Contracts
|
$ | — | $ | (85,143 | )(1) | |||||
|
Interest Rate Swaps
|
— | (195,299 | )(2) | |||||||
|
Total
|
$ | — | $ | (280,442 | ) | |||||
|
Insured Massachusetts Fund
|
||||||||||
|
Interest Rate Swaps
|
$ | — | $ | (92,708 | )(2) | |||||
|
Total
|
$ | — | $ | (92,708 | ) | |||||
|
Insured Michigan Fund
|
||||||||||
|
Futures Contracts
|
$ | — | $ | (23,073 | )(1) | |||||
|
Interest Rate Swaps
|
— | (73,099 | )(2) | |||||||
|
Total
|
$ | — | $ | (96,172 | ) | |||||
|
Insured New Jersey Fund
|
||||||||||
|
Interest Rate Swaps
|
$ | — | $ | (134,383 | )(2) | |||||
|
Total
|
$ | — | $ | (134,383 | ) | |||||
|
Insured New York II Fund
|
||||||||||
|
Futures Contracts
|
$ | — | $ | (58,699 | )(1) | |||||
|
Interest Rate Swaps
|
— | (208,643 | )(2) | |||||||
|
Total
|
$ | — | $ | (267,342 | ) | |||||
|
Insured Ohio Fund
|
||||||||||
|
Futures Contracts
|
$ | — | $ | (105,482 | )(1) | |||||
|
Interest Rate Swaps
|
— | (84,528 | )(2) | |||||||
|
Total
|
$ | — | $ | (190,010 | ) | |||||
|
Insured Pennsylvania Fund
|
||||||||||
|
Interest Rate Swaps
|
$ | — | $ | (174,165 | )(2) | |||||
|
Total
|
$ | — | $ | (174,165 | ) | |||||
| (1) | Amount represents cumulative unrealized depreciation on futures contracts in the Futures Contracts table above. Only the current day’s variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin, as applicable. | |
| (2) | Statement of Assets and Liabilities location: Payable for open swap contracts; Net unrealized depreciation. |
The effect of derivative instruments (not considered to be
hedging instruments for accounting disclosure purposes) on the
Statement of Operations and whose primary underlying risk
exposure is interest rate risk for the six months ended
September 30, 2009 was as follows:
|
Change in |
||||||||||
|
Realized |
Unrealized |
|||||||||
|
Gain |
Appreciation |
|||||||||
|
(Loss) on |
(Depreciation) on |
|||||||||
|
Derivatives |
Derivatives |
|||||||||
|
Recognized in |
Recognized in |
|||||||||
| Fund | Income (1) | Income (2) | ||||||||
|
Insured Municipal II
|
$ | 1,030,050 | $ | 602,363 | ||||||
|
Insured California II
|
347,168 | 220,319 | ||||||||
|
Insured Massachusetts
|
82,191 | 69,065 | ||||||||
|
Insured Michigan
|
111,876 | 65,710 | ||||||||
|
Insured New Jersey
|
118,894 | 100,522 | ||||||||
|
Insured New York II
|
641,582 | 108,798 | ||||||||
|
Insured Ohio
|
308,895 | 150,538 | ||||||||
|
Insured Pennsylvania
|
375,998 | 346,885 | ||||||||
| (1) | Statement of Operations location: Net realized gain (loss) — Financial futures contracts and swap contracts. | |
| (2) | Statement of Operations location: Change in unrealized appreciation (depreciation) — Financial futures contracts and swap contracts. |
The average notional amounts of futures contracts and interest
rate swaps outstanding during the six months ended
September 30, 2009 were approximately as follows:
|
Interest |
||||||||||
|
Futures |
Rate |
|||||||||
| Fund | Contracts | Swaps | ||||||||
|
Insured Municipal II
|
$ | 17,914,000 | $ | 6,000,000 | ||||||
|
Insured California II
|
4,300,000 | 2,950,000 | ||||||||
|
Insured Massachusetts
|
— | 1,388,000 | ||||||||
|
Insured Michigan
|
1,171,000 | 1,125,000 | ||||||||
67
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
NOTES TO FINANCIAL
STATEMENTS CONT’D
|
Interest |
||||||||||
|
Futures |
Rate |
|||||||||
| Fund | Contracts | Swaps | ||||||||
|
Insured New Jersey
|
$ | — | $ | 2,013,000 | ||||||
|
Insured New York II
|
3,886,000 | 2,762,000 | ||||||||
|
Insured Ohio
|
5,571,000 | 1,488,000 | ||||||||
|
Insured Pennsylvania
|
3,643,000 | 2,011,000 | ||||||||
10 Fair
Value Measurements
The Funds adopted FASB Statement of Financial Accounting
Standards No. 157 (FAS 157), “Fair Value
Measurements”, (currently FASB ASC
820-10),
effective October 1, 2008. Such standard established a
three-tier
hierarchy to prioritize the assumptions, referred to as inputs,
used in valuation techniques to measure fair value. The
three-tier
hierarchy of inputs is summarized in the three broad levels
listed below.
| • | Level 1 – quoted prices in active markets for identical investments | |
| • | Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) | |
| • | Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not
necessarily an indication of the risk associated with investing
in those securities.
At September 30, 2009, the inputs used in valuing the
Funds’ investments, which are carried at value, were
as follows:
| Insured Municipal Fund II | ||||||||||||||||||
|
Quoted |
||||||||||||||||||
|
Prices in |
||||||||||||||||||
|
Active |
Significant |
|||||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 228,012,545 | $ | — | $ | 228,012,545 | ||||||||||
|
Total Investments
|
$ | — | $ | 228,012,545 | $ | — | $ | 228,012,545 | ||||||||||
|
Liability Description
|
||||||||||||||||||
|
Futures Contracts
|
$ | (340,128 | ) | $ | — | $ | — | $ | (340,128 | ) | ||||||||
|
Interest Rate Swaps
|
— | (338,808 | ) | — | (338,808 | ) | ||||||||||||
|
Total
|
$ | (340,128 | ) | $ | (338,808 | ) | $ | — | $ | (678,936 | ) | |||||||
| Insured California Fund II | ||||||||||||||||||
|
Quoted |
||||||||||||||||||
|
Prices in |
||||||||||||||||||
|
Active |
Significant |
|||||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 84,652,527 | $ | — | $ | 84,652,527 | ||||||||||
|
Total Investments
|
$ | — | $ | 84,652,527 | $ | — | $ | 84,652,527 | ||||||||||
|
Liability Description
|
||||||||||||||||||
|
Futures Contracts
|
$ | (85,143 | ) | $ | — | $ | — | $ | (85,143 | ) | ||||||||
|
Interest Rate Swaps
|
— | (195,299 | ) | — | (195,299 | ) | ||||||||||||
|
Total
|
$ | (85,143 | ) | $ | (195,299 | ) | $ | — | $ | (280,442 | ) | |||||||
| Insured Massachusetts Fund | ||||||||||||||||||
|
Quoted |
||||||||||||||||||
|
Prices in |
||||||||||||||||||
|
Active |
Significant |
|||||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 40,925,733 | $ | — | $ | 40,925,733 | ||||||||||
|
Total Investments
|
$ | — | $ | 40,925,733 | $ | — | $ | 40,925,733 | ||||||||||
|
Liability Description
|
||||||||||||||||||
|
Interest Rate Swaps
|
$ | — | $ | (92,708 | ) | $ | — | $ | (92,708 | ) | ||||||||
|
Total
|
$ | — | $ | (92,708 | ) | $ | — | $ | (92,708 | ) | ||||||||
| Insured Michigan Fund | ||||||||||||||||||
|
Quoted |
||||||||||||||||||
|
Prices in |
||||||||||||||||||
|
Active |
Significant |
|||||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 35,381,463 | $ | — | $ | 35,381,463 | ||||||||||
|
Total Investments
|
$ | — | $ | 35,381,463 | $ | — | $ | 35,381,463 | ||||||||||
|
Liability Description
|
||||||||||||||||||
|
Futures Contracts
|
$ | (23,073 | ) | $ | — | $ | — | $ | (23,073 | ) | ||||||||
|
Interest Rate Swaps
|
— | (73,099 | ) | — | (73,099 | ) | ||||||||||||
|
Total
|
$ | (23,073 | ) | $ | (73,099 | ) | $ | — | $ | (96,172 | ) | |||||||
68
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
NOTES TO FINANCIAL
STATEMENTS CONT’D
| Insured New Jersey Fund | ||||||||||||||||||
|
Quoted |
||||||||||||||||||
|
Prices in |
||||||||||||||||||
|
Active |
Significant |
|||||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 64,048,856 | $ | — | $ | 64,048,856 | ||||||||||
|
Total Investments
|
$ | — | $ | 64,048,856 | $ | — | $ | 64,048,856 | ||||||||||
|
Liability Description
|
||||||||||||||||||
|
Interest Rate Swaps
|
$ | — | $ | (134,383 | ) | $ | — | $ | (134,383 | ) | ||||||||
|
Total
|
$ | — | $ | (134,383 | ) | $ | — | $ | (134,383 | ) | ||||||||
| Insured New York Fund II | ||||||||||||||||||
|
Quoted |
||||||||||||||||||
|
Prices in |
||||||||||||||||||
|
Active |
Significant |
|||||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 59,004,122 | $ | — | $ | 59,004,122 | ||||||||||
|
Total Investments
|
$ | — | $ | 59,004,122 | $ | — | $ | 59,004,122 | ||||||||||
|
Liability Description
|
||||||||||||||||||
|
Futures Contracts
|
$ | (58,699 | ) | $ | — | $ | — | $ | (58,699 | ) | ||||||||
|
Interest Rate Swaps
|
— | (208,643 | ) | — | (208,643 | ) | ||||||||||||
|
Total
|
$ | (58,699 | ) | $ | (208,643 | ) | $ | — | $ | (267,342 | ) | |||||||
| Insured Ohio Fund | ||||||||||||||||||
|
Quoted |
||||||||||||||||||
|
Prices in |
||||||||||||||||||
|
Active |
Significant |
|||||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 49,270,896 | $ | — | $ | 49,270,896 | ||||||||||
|
Short-Term Investments
|
— | 947,981 | — | 947,981 | ||||||||||||||
|
Total Investments
|
$ | — | $ | 50,218,877 | $ | — | $ | 50,218,877 | ||||||||||
|
Liability Description
|
||||||||||||||||||
|
Futures Contracts
|
$ | (105,482 | ) | $ | — | $ | — | $ | (105,482 | ) | ||||||||
|
Interest Rate Swaps
|
— | (84,528 | ) | — | (84,528 | ) | ||||||||||||
|
Total
|
$ | (105,482 | ) | $ | (84,528 | ) | $ | — | $ | (190,010 | ) | |||||||
| Insured Pennsylvania Fund | ||||||||||||||||||
|
Quoted |
||||||||||||||||||
|
Prices in |
||||||||||||||||||
|
Active |
Significant |
|||||||||||||||||
|
Markets for |
Other |
Significant |
||||||||||||||||
|
Identical |
Observable |
Unobservable |
||||||||||||||||
| Assets | Inputs | Inputs | ||||||||||||||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||
|
Tax-Exempt Investments
|
$ | — | $ | 64,058,280 | $ | — | $ | 64,058,280 | ||||||||||
|
Total Investments
|
$ | — | $ | 64,058,280 | $ | — | $ | 64,058,280 | ||||||||||
|
Liability Description
|
||||||||||||||||||
|
Interest Rate Swaps
|
$ | — | $ | (174,165 | ) | $ | — | $ | (174,165 | ) | ||||||||
|
Total
|
$ | — | $ | (174,165 | ) | $ | — | $ | (174,165 | ) | ||||||||
The Funds held no investments or other financial instruments as
of September 30, 2008 whose fair value was determined using
Level 3 inputs.
11 Review
for Subsequent Events
In connection with the preparation of the financial statements
of the Funds as of and for the year ended September 30,
2009, events and transactions subsequent to September 30,
2009 through November 16, 2009, the date the financial
statements were issued, have been evaluated by the Funds’
management for possible adjustment
and/or
disclosure. Management has not identified any subsequent events
requiring financial statement disclosure as of the date these
financial statements were issued.
69
Eaton Vance
Insured Municipal Bond
Fund as
of September 30, 2009
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Trustees
and Shareholders of
Eaton Vance Insured Municipal Bond Fund II, Eaton Vance Insured California Municipal Bond Fund II, Eaton Vance Insured Massachusetts Municipal Bond Fund, Eaton Vance Insured Michigan Municipal Bond Fund, Eaton Vance Insured New Jersey Municipal Bond Fund, Eaton Vance Insured New York Municipal Bond Fund II, Eaton Vance Insured Ohio Municipal Bond Fund, and Eaton Vance Insured Pennsylvania Municipal Bond Fund:
Eaton Vance Insured Municipal Bond Fund II, Eaton Vance Insured California Municipal Bond Fund II, Eaton Vance Insured Massachusetts Municipal Bond Fund, Eaton Vance Insured Michigan Municipal Bond Fund, Eaton Vance Insured New Jersey Municipal Bond Fund, Eaton Vance Insured New York Municipal Bond Fund II, Eaton Vance Insured Ohio Municipal Bond Fund, and Eaton Vance Insured Pennsylvania Municipal Bond Fund:
We have audited the accompanying statements of assets and
liabilities of Eaton Vance Insured Municipal Bond Fund II,
Eaton Vance Insured California Municipal Bond Fund II,
Eaton Vance Insured Massachusetts Municipal Bond Fund, Eaton
Vance Insured Michigan Municipal Bond Fund, Eaton Vance Insured
New Jersey Municipal Bond Fund, Eaton Vance Insured New York
Municipal Bond Fund II, Eaton Vance Insured Ohio Municipal
Bond Fund, and Eaton Vance Insured Pennsylvania Municipal Bond
Fund (collectively, the “Funds”), including the
portfolios of investments, as of September 30, 2009, and
the related statements of operations for the year then ended,
the statements of changes in net assets for each of the two
years in the period then ended, the financial highlights for
each of the five years in the period then ended and the
statements of cash flows of Eaton Vance Insured Municipal Bond
Fund II, Eaton Vance Insured California Municipal Bond
Fund II, Eaton Vance Insured New Jersey Municipal Bond
Fund and Eaton Vance Insured New York Municipal Bond
Fund II for the year then ended. These financial statements
and financial highlights are the responsibility of the
Funds’ management. Our responsibility is to express an
opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. The
Funds are not required to have, nor were we engaged to perform,
an audit of their internal control over financial reporting. Our
audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Funds’
internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. Our
procedures included confirmation of securities owned as of
September 30, 2009, by correspondence with the custodian
and brokers; where replies were not received from brokers, we
performed other auditing procedures. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material
respects, the financial position of Eaton Vance Insured
Municipal Bond Fund II, Eaton Vance Insured California
Municipal Bond Fund II, Eaton Vance Insured Massachusetts
Municipal Bond Fund, Eaton Vance Insured Michigan Municipal Bond
Fund, Eaton Vance Insured New Jersey Municipal Bond Fund, Eaton
Vance Insured New York Municipal Bond Fund II, Eaton Vance
Insured Ohio Municipal Bond Fund, and Eaton Vance Insured
Pennsylvania Municipal Bond Fund as of September 30, 2009,
the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the
period then ended, and their financial highlights for each of
the five years in the period then ended, and the statements of
cash flows of Eaton Vance Insured Municipal Bond Fund II,
Eaton Vance Insured California Municipal Bond Fund II,
Eaton Vance Insured New Jersey Municipal Bond Fund and Eaton
Vance Insured New York Municipal Bond Fund II for the year
then ended, in conformity with accounting principles generally
accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 16, 2009
70
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
FEDERAL TAX
INFORMATION (Unaudited)
The
Form 1099-DIV
you receive in January 2010 will show the tax status of all
distributions paid to your account in calendar 2009.
Shareholders are advised to consult their own tax adviser with
respect to the tax consequences of their investment in the
Funds. As required by the Internal Revenue Code regulations,
shareholders must be notified within 60 days of the
Funds’ fiscal year end regarding exempt-interest dividends
and capital gains dividends.
Exempt-Interest Dividends — The Funds designate
the following percentages of dividends from net investment
income as an exempt-interest dividend.
|
Eaton Vance Insured Municipal Bond Fund II
|
99.97 | % | ||||
|
Eaton Vance Insured California Municipal Bond Fund II
|
99.98 | % | ||||
|
Eaton Vance Insured Massachusetts Municipal Bond Fund
|
99.87 | % | ||||
|
Eaton Vance Insured Michigan Municipal Bond Fund
|
100.00 | % | ||||
|
Eaton Vance Insured New Jersey Municipal Bond Fund
|
99.87 | % | ||||
|
Eaton Vance Insured New York Municipal Bond Fund II
|
99.97 | % | ||||
|
Eaton Vance Insured Ohio Municipal Bond Fund
|
100.00 | % | ||||
|
Eaton Vance Insured Pennsylvania Municipal Bond Fund
|
99.81 | % |
Capital Gains Dividends — The Eaton Vance
Insured New Jersey Municipal Bond Fund and Eaton Vance Insured
Pennsylvania Municipal Bond Fund designate $305,647 and
$936,248, respectively, as a capital gain dividend.
71
Eaton Vance
Insured Municipal Bond
Funds
NOTICE TO SHAREHOLDERS
Under the Funds’ former policy, during normal market
conditions (a) at least 80 percent of each Fund’s
net assets shall be invested in tax-exempt municipal obligations
that are insured as to the payment of principal and interest by
an insurer rated Baa or better by Moody’s Investors
Service, Inc. (“Moody’s”) or BBB or better by
Standard & Poor’s Ratings Group
(“S&P”) or Fitch Ratings (“Fitch”) and
(b) at least 50 percent of each Fund’s
investments in insured municipal obligations shall be insured by
an insurer rated A or better by Moody’s, S&P or Fitch.
Effective November 2, 2009, each Fund eliminated the
requirement that at least 50 percent of its insured
municipal obligations be insured by insurers rated A or better.
In addition, the Trustees of each Fund have voted to recommend
that shareholders approve a modification to each Fund’s
80 percent policies to eliminate the requirement to invest
primarily in insured municipal obligations. If approved by
shareholders, the Funds would thereafter be required, under
normal market conditions, to invest at least 80 percent of
net assets in municipal obligations rated A or better by
Moody’s, S&P or Fitch and each of them would eliminate
“Insured” from its name. For purposes of the
Funds’ 80 percent requirement, the rating of insured
obligations will be deemed to be the higher of the claims-paying
rating of the insurer and the rating of the underlying issue.
The joint special meeting of shareholders of the Funds is
scheduled to take place on Friday, January 29, 2010 at
2:00 P.M. eastern time. Proxy materials containing
information about the meeting and the proposed changes will be
mailed to each Fund’s shareholders of record as of
November 18, 2009.
72
Eaton Vance
Insured Municipal Bond
Funds as
of September 30, 2009
ANNUAL MEETING OF
SHAREHOLDERS (Unaudited)
The
Fund held its Annual Meeting of Shareholders on July 24,
2009. The following action was taken by the
shareholders:
Item 1: The election of William H. Park, Lynn
A. Stout and Ralph F. Verni as Class I Trustees of each
Fund for a
three-year
term expiring in 2012; and the election of Helen Frame Peters as
Class III Trustee of each Fund for a two-year term expiring
in 2011. Mr. Verni was designated the nominee to be elected
by APS shareholders.
|
Nominee for |
Nominee for |
Nominee for |
Nominee for |
|||||||||||||||
|
Class I
Trustee |
Class I
Trustee |
Class I APS
Trustee |
Class III
Trustee |
|||||||||||||||
|
Elected by All |
Elected by All |
Elected by APS |
Elected by All |
|||||||||||||||
|
Shareholders |
Shareholders |
Shareholders |
Shareholders |
|||||||||||||||
| William H. Park | Lynn A. Stout | Ralph F. Verni | Helen Frame Peters | |||||||||||||||
|
Insured Municipal Fund II:
|
||||||||||||||||||
|
For
|
9,232,244 | 9,236,437 | 1,071 | 9,199,146 | ||||||||||||||
|
Withheld
|
242,005 | 237,812 | 0 | 275,103 | ||||||||||||||
|
Insured California Fund II:
|
||||||||||||||||||
|
For
|
3,584,946 | 3,594,065 | 702 | 3,600,678 | ||||||||||||||
|
Withheld
|
85,834 | 76,715 | 1 | 70,102 | ||||||||||||||
|
Insured Massachusetts Fund:
|
||||||||||||||||||
|
For
|
1,677,161 | 1,677,161 | 463 | 1,673,558 | ||||||||||||||
|
Withheld
|
27,140 | 27,140 | 8 | 30,743 | ||||||||||||||
|
Insured Michigan Fund:
|
||||||||||||||||||
|
For
|
1,457,516 | 1,457,516 | 317 | 1,457,516 | ||||||||||||||
|
Withheld
|
24,638 | 24,638 | 0 | 24,638 | ||||||||||||||
|
Insured New Jersey Fund:
|
||||||||||||||||||
|
For
|
2,478,034 | 2,468,863 | 485 | 2,467,863 | ||||||||||||||
|
Withheld
|
37,330 | 46,501 | 0 | 47,501 | ||||||||||||||
|
Insured New York Fund II:
|
||||||||||||||||||
|
For
|
2,379,417 | 2,382,299 | 267 | 2,381,633 | ||||||||||||||
|
Withheld
|
85,455 | 82,573 | 2 | 83,239 | ||||||||||||||
|
Insured Ohio Fund:
|
||||||||||||||||||
|
For
|
2,306,992 | 2,303,690 | 440 | 2,306,754 | ||||||||||||||
|
Withheld
|
103,009 | 106,311 | 2 | 103,247 | ||||||||||||||
|
Insured Pennsylvania Fund:
|
||||||||||||||||||
|
For
|
2,799,073 | 2,796,263 | 687 | 2,756,794 | ||||||||||||||
|
Withheld
|
45,514 | 48,324 | 0 | 87,793 | ||||||||||||||
73
Eaton Vance
Insured Municipal Bond
Funds
DIVIDEND REINVESTMENT PLAN
Each Fund offers a dividend reinvestment plan (the Plan)
pursuant to which shareholders may elect to have distributions
automatically reinvested in common shares (the Shares) of the
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 American Stock
Transfer & Trust Company (AST) 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, AST, 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, AST, at 1-866-439-6787.
74
Eaton Vance
Insured Municipal Bond
Funds
APPLICATION FOR PARTICIPATION IN
DIVIDEND REINVESTMENT PLAN
This form is for shareholders who hold their common shares in
their own names. If your common shares are held in the name of a
brokerage firm, bank, or other nominee, you should contact your
nominee to see if it will participate in the Plan on your
behalf. If you wish to participate in the Plan, but your
brokerage firm, bank, or nominee is unable to participate on
your behalf, you should request that your common shares be
re-registered in your own name which will enable your
participation in the Plan.
The following authorization and appointment is given with the
understanding that I may terminate it at any time by terminating
my participation in the Plan as provided in the terms and
conditions of the Plan.
Please print exact name on account
Shareholder
signature
Date
Shareholder
signature
Date
Please sign exactly as your common shares are registered. All
persons whose names appear on the share certificate must sign.
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE
YOUR DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
This authorization form, when signed, should be mailed to the
following address:
Eaton Vance Insured Municipal Bond Funds
c/o American Stock Transfer & Trust Company
P.O. Box 922
Wall Street Station
New York, NY
10269-0560
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 non-diversified, closed-end management investment company
and has no employees.
Number of
Shareholders
As of September 30, 2009, our records indicate that there
are 64, 25, 18, 22, 22, 35, 48 and 91 registered shareholders
for Insured Municipal Fund II, Insured California
Fund II, 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 4,362, 1,355, 808, 883, 1,287, 1,203, 1,342 and
1,708 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 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.
Two International Place
Boston, MA 02110
1-800-262-1122
| NYSE Amex symbols | ||
|
Insured Municipal Fund II
|
EIV | |
|
Insured California Fund II
|
EIA | |
|
Insured Massachusetts Fund
|
MAB | |
|
Insured Michigan Fund
|
MIW | |
|
Insured New Jersey Fund
|
EMJ | |
|
Insured New York Fund II
|
NYH | |
|
Insured Ohio Fund
|
EIO | |
|
Insured Pennsylvania Fund
|
EIP |
75
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 27, 2009, 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 Contract Review Committee of
the Board (formerly the Special Committee), which is a committee
comprised exclusively of Independent Trustees. Prior to making
its recommendation, the Contract Review Committee reviewed
information furnished for a series of meetings of the Contract
Review Committee held in February, March and April 2009.
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, and any changes in portfolio management processes and personnel; | |
| • | 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. |
76
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 Contract
Review 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, 2009, the Board met eighteen times
and the Contract Review Committee, the Audit Committee, the
Governance Committee, the Portfolio Management Committee and the
Compliance Reports and Regulatory Matters Committee, each of
which is a Committee comprised solely of Independent Trustees,
met seven, five, six, six and six 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 Contract Review Committee was assisted throughout the
contract review process by Goodwin Procter LLP, legal counsel
for the Independent Trustees. The members of the Contract Review
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 Contract Review 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 Contract Review 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 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 Contract Review
Committee recommended to the Board approval of each agreement.
The Board accepted the recommendation of the Contract Review
Committee as well as the factors considered and conclusions
reached by the Contract Review Committee with respect to each
agreement. Accordingly, the Board, including a majority of the
Independent Trustees, voted to approve continuation of the
investment 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 with respect to certain Funds. 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. The Board considered the
Adviser’s large municipal bond team, which includes
portfolio managers and 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 by
senior management.
77
Eaton Vance
Insured Municipal Bond
Funds
BOARD OF TRUSTEES’ ANNUAL
APPROVAL OF THE INVESTMENT ADVISORY
AGREEMENTS CONT’D
The Board also 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 Financial Industry Regulatory Authority.
The Board 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.
The Board considered the Adviser’s recommendations for
Board action and other steps taken in response to the
unprecedented dislocations experienced in the capital markets
over recent periods, including sustained periods of high
volatility, credit disruption and government intervention. In
particular, the Board considered the Adviser’s efforts and
expertise with respect to each of the following matters as they
relate to the Funds
and/or other
funds within the Eaton Vance family of funds:
(i) negotiating and maintaining the availability of bank
loan facilities and other sources of credit used for investment
purposes or to satisfy liquidity needs; (ii) establishing
the fair value of securities and other instruments held in
investment portfolios during periods of market volatility and
issuer-specific disruptions; and (iii) the ongoing
monitoring of investment management processes and risk controls.
In addition, the Board considered the Adviser’s actions
with respect to the Auction Preferred Shares (“APS”)
issued by the Funds, including the Adviser’s efforts to
seek alternative forms of debt and other leverage that may over
time reduce financing costs associated with APS and enable the
Funds to restore liquidity for APS holders.
After consideration of the foregoing factors, among others, the
Board concluded that the nature, extent and quality of services
provided by the Adviser, taken as a whole, are appropriate and
consistent with the terms of the respective investment advisory
agreements.
Fund Performance
The Board compared each Fund’s investment performance to a
relevant universe of similarly managed funds identified by an
independent data provider and appropriate benchmark indices. The
Board reviewed comparative performance data for the
one-,
three-, and
five-year
periods ended September 30, 2008 for each Fund in operation
over such periods. The Board considered the impact of
extraordinary market conditions during 2008 on each Fund’s
performance relative to its peer universe in light of, among
other things, the Adviser’s strategy of generating current
income through investments in higher quality (including insured)
municipal bonds with longer maturities. On the basis of the
foregoing and other relevant information, the Board concluded
that, under the circumstances, 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, 2008, as compared to a group of similarly
managed funds selected by an independent data provider.
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 relevant affiliates thereof 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 with and 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 in
connection with its 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.
78
Eaton Vance
Insured Municipal Bond
Funds
BOARD OF TRUSTEES’ ANNUAL
APPROVAL OF THE INVESTMENT ADVISORY
AGREEMENTS CONT’D
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 at this time. 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.
79
Eaton Vance
Insured Municipal Bond
Funds
MANAGEMENT AND ORGANIZATION
Fund Management. The Trustees and officers of
Eaton Vance Insured Municipal Bond Fund II (EIV), Eaton
Vance Insured California Municipal Bond Fund II (EIA),
Eaton Vance Insured Massachusetts Municipal Bond Fund (MAB),
Eaton Vance Insured Michigan Municipal Bond Fund (MIW), Eaton
Vance Insured New Jersey Municipal Bond Fund (EMJ), Eaton Vance
Insured New York Municipal Bond Fund II (NYH), Eaton Vance
Insured Ohio Municipal Bond Fund (EIO), and Eaton Vance Insured
Pennsylvania Municipal Bond Fund (EIP) (the Funds) are listed
below. Except as indicated, each individual has held the office
shown or other offices in the same company for the last five
years. The “Noninterested Trustees” consist of those
Trustees who are not “interested persons” of the
Funds, as that term is defined under the 1940 Act. The business
address of each Trustee and officer is Two International Place,
Boston, Massachusetts 02110. As used below, “EVC”
refers to Eaton Vance Corp., “EV” refers to Eaton
Vance, Inc., “EVM” refers to Eaton Vance Management,
“BMR” refers to Boston Management and Research and
“EVD” refers to Eaton Vance Distributors, Inc. EVC and
EV are the corporate parent and trustee, respectively, of EVM
and BMR. EVD is a direct, wholly-owned subsidiary of EVC. Each
officer affiliated with Eaton Vance may hold a position with
other Eaton Vance affiliates that is comparable to his or her
position with EVM listed below.
|
Term of |
Number of
Portfolios |
|||||||||||
|
Position(s) |
Office and |
in Fund
Complex |
||||||||||
|
Name and |
with the |
Length of |
Principal
Occupation(s) |
Overseen By |
||||||||
| Date of Birth | Funds | Service | During Past Five Years | Trustee(1) | Other Directorships Held | |||||||
| Interested Trustee | ||||||||||||
|
Thomas E. Faust Jr. 5/31/58 |
Class II Trustee |
Until 2010. 3 years. Trustee since 2007. | Chairman, Chief Executive Officer and President of EVC, Director and President of EV, Chief Executive Officer and President of EVM and BMR, and Director of EVD. Trustee and/or officer of 178 registered investment companies and 4 private investment companies managed by EVM or BMR. Mr. Faust is an interested person because of his positions with EVM, BMR, EVD, EVC and EV, which are affiliates of the Funds. | 178 | Director of EVC | |||||||
| Noninterested Trustees | ||||||||||||
|
Benjamin C.
Esty(A) 1/2/63 |
Class II Trustee |
Until 2010. 3 years. Trustee since 2005. | Roy and Elizabeth Simmons Professor of Business Administration and Finance Unit Head, Harvard University Graduate School of Business Administration. | 178 | None | |||||||
|
Allen R. Freedman 4/3/40 |
Class II Trustee |
Until 2010. 3 years. Trustee since 2007. | Former Chairman (2002-2004) and a Director (1983-2004) of Systems & Computer Technology Corp. (provider of software to higher education). Formerly, a Director of Loring Ward International (fund distributor) (2005-2007). Formerly, Chairman and a Director of Indus International, Inc. (provider of enterprise management software to the power generating industry) (2005-2007). | 178 | Director of Assurant, Inc. (insurance provider) and Stonemor Partners, L.P. (owner and operator of cemeteries) | |||||||
|
William H. Park 9/19/47 |
Class I Trustee |
Until 2012. 3 years. Trustee since 2003. | Vice Chairman, Commercial Industrial Finance Corp. (specialty finance company) (since 2006). Formerly, President and Chief Executive Officer, Prizm Capital Management, LLC (investment management firm) (2002-2005). | 178 | None | |||||||
|
Ronald A. Pearlman 7/10/40 |
Class III Trustee |
Until 2011. 3 years. Trustee since 2003. | Professor of Law, Georgetown University Law Center. | 178 | None | |||||||
|
Helen Frame Peters 3/22/48 |
Class III Trustee |
Until 2011. 2 years. Trustee since 2008. | Professor of Finance, Carroll School of Management, Boston College. Adjunct Professor of Finance, Peking University, Beijing, China (since 2005). | 178 | Director of BJ’s Wholesale Club, Inc. (wholesale club retailer); Trustee of SPDR Index Shares Funds and SPDR Series Trust (exchange traded funds) | |||||||
|
Heidi L. Steiger 7/8/53 |
Class III Trustee |
Until 2011. 3 years. Trustee since 2007. | Managing Partner, Topridge Associates LLC (global wealth management firm) (since 2008); Senior Advisor (since 2008), President (2005-2008), Lowenhaupt Global Advisors, LLC (global wealth management firm). Formerly, President and Contributing Editor, Worth Magazine (2004-2005). Formerly, Executive Vice President and Global Head of Private Asset Management (and various other positions), Neuberger Berman (investment firm) (1986-2004). | 178 | Director of Nuclear Electric Insurance Ltd. (nuclear insurance provider), Aviva USA (insurance provider) and CIFG (family of financial guaranty companies), and Advisory Director of Berkshire Capital Securities LLC (private investment banking firm) | |||||||
80
Eaton Vance
Insured Municipal Bond
Funds
MANAGEMENT AND
ORGANIZATION CONT’D
|
Term of |
Number of
Portfolios |
|||||||||||
|
Position(s) |
Office and |
in Fund
Complex |
||||||||||
|
Name and |
with the |
Length of |
Principal
Occupation(s) |
Overseen By |
||||||||
| Date of Birth | Funds | Service | During Past Five Years | Trustee(1) | Other Directorships Held | |||||||
| Noninterested Trustees (continued) | ||||||||||||
|
Lynn A. Stout 9/14/57 |
Class I Trustee |
Until 2012. 3 years. Trustee since 2002. | Paul Hastings Professor of Corporate and Securities Law (since 2006) and Professor of Law (2001-2006), University of California at Los Angeles School of Law. | 178 | None | |||||||
|
Ralph F.
Verni(A) 1/26/43 |
Chairman of the Board and Class I Trustee |
Until 2012. 3 years. Trustee since 2005; Chairman of the Board since 2007. | Consultant and private investor. | 178 | None | |||||||
Principal Officers
who are not Trustees
|
Term of |
||||||
|
Position(s) |
Office and |
|||||
|
Name and |
with the |
Length of |
Principal
Occupation(s) |
|||
| Date of Birth | Funds | Service | During Past Five Years | |||
|
Cynthia J. Clemson 3/2/63 |
President of EIA, MIW, NYH, EIO and EIP; Vice President of MAB, EIV and EMJ | President of EIA, MIW, NYH, EIO, and EIP since 2005 and Vice President of MAB, EIV, and EMJ since 2004 | Vice President of EVM and BMR. Officer of 96 registered investment companies managed by EVM or BMR. | |||
|
Robert B. MacIntosh 1/22/57 |
President of MAB, EIV and EMJ; Vice President of EIA, MIW, NYH, EIO and EIP |
President of MAB, EIV, and EMJ since 2005 and Vice President of EIA, MIW, NYH, EIO, and EIP since 2002 |
Vice President of EVM and BMR. Officer of 96 registered investment companies managed by EVM or BMR. |
|||
|
William H. Ahern, Jr. 7/28/59 |
Vice President of MIW, EIV and EIO |
Vice President of MIW since 2002; of EIV since 2004; and of EIO since 2005 |
Vice President of EVM and BMR. Officer of 80 registered investment companies managed by EVM or BMR. |
|||
|
Craig R. Brandon 12/21/66 |
Vice President of NYH | Since 2005 |
Vice President of EVM and BMR. Officer of 49 registered investment companies managed by EVM or BMR. |
|||
|
Thomas M. Metzold 8/3/58 |
Vice President of EIP | Since 2005 |
Vice President of EVM and BMR. Officer of 50 registered investment companies managed by EVM or BMR. |
|||
|
Adam A. Weigold 3/22/75 |
Vice President of EIP | Since 2007 |
Vice President of EVM and BMR. Officer of 72 registered investment companies managed by EVM or BMR. |
|||
|
Barbara E. Campbell 6/19/57 |
Treasurer | Since 2005 |
Vice President of EVM and BMR. Officer of 178 registered investment companies managed by EVM or BMR. |
|||
|
Maureen A. Gemma 5/24/60 |
Chief Legal Officer and Secretary |
Chief Legal Officer since 2008 and Secretary since 2007 |
Vice President of EVM and BMR. Officer of 178 registered investment companies managed by EVM or BMR. |
|||
|
Paul M. O’Neil 7/11/53 |
Chief Compliance Officer |
Since 2004 |
Vice President of EVM and BMR. Officer of 178 registered investment companies managed by EVM or BMR. |
|||
| (1) | Includes both master and feeder funds in a master-feeder structure. | |
| (A) | APS Trustee. |
81
This Page Intentionally Left Blank
This Page Intentionally Left Blank
This Page Intentionally Left Blank
Investment
Adviser and Administrator of
Eaton Vance
Insured Municipal Bond Funds
Eaton Vance
Management
Two International
Place
Boston, MA 02110
State Street
Bank and Trust Company
200 Clarendon
Street
Boston, MA 02116
American Stock
Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, NY 10038
Deloitte &
Touche LLP
200 Berkeley Street
Boston, MA
02116-5022
Two
International Place
Boston, MA
02110
1557-11/09
CE-8IMBIISRC
Item 2. Code of Ethics
The registrant has adopted a code of ethics applicable to its Principal Executive Officer,
Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide
a copy of such code of ethics to any person upon request, without charge, by calling
1-800-262-1122.
Item 3. Audit Committee Financial Expert
The registrant’s Board has designated William H. Park, an independent trustee, as its audit
committee financial expert. 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).
Item 4. Principal Accountant Fees and Services
(a)
–(d)
The following table presents the aggregate fees billed to the registrant for the registrant’s
fiscal years ended September 30, 2008 and September 30, 2009 by the Fund’s principal accountant,
Deloitte & Touche LLP (D&T), for professional services rendered for the audit of the registrant’s
annual financial statements and fees billed for other services rendered by the principal accountant
during such period.
| Fiscal Years Ended | 9/30/08 | 9/30/09 | ||||||
Audit Fees |
$ | 25,340 | $ | 28,615 | ||||
Audit-Related Fees(1) |
$ | 3,915 | $ | 3,915 | ||||
Tax Fees(2) |
$ | 7,130 | $ | 8,720 | ||||
All Other Fees(3) |
$ | 45 | $ | 0 | ||||
Total |
$ | 36,430 | $ | 41,250 | ||||
| (1) | Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under the category of audit fees and specifically include fees for the performance of certain agreed-upon procedures relating to the registrant’s auction preferred shares. | |
| (2) | Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation. | |
| (3) | All other fees consist of the aggregate fees billed for products and services provided by the registrant’s principal accountant other than audit, audit-related, and tax services. |
(e)(1) The registrant’s audit committee has adopted policies and procedures relating to the
pre-approval of services provided by the registrant’s principal accountant (the “Pre-Approval
Policies”). The Pre-Approval Policies establish a framework intended to assist the audit committee
in the proper discharge of its pre-approval responsibilities. As a general matter, the
Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services
determined to be pre-approved by the audit committee; and (ii) delineate specific procedures
governing the mechanics of the pre-approval process, including the approval and monitoring of audit
and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval
Policies, it must be separately pre-approved by the audit committee.
The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must
be reviewed and ratified by the registrant’s audit committee at least annually. The registrant’s
audit committee maintains full responsibility for the appointment, compensation, and oversight of
the work of the registrant’s principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant’s audit
committee pursuant to the “de minimis exception” set forth in Rule 2-01 (c)(7)(i)(C) of Regulation
S-X.
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees for audit-related,
tax, and other services) billed to the registrant by the registrant’s principal accountant for the
registrant’s fiscal year ended September 30, 2008 and the fiscal year ended September 30, 2009; and
(ii) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to
the Eaton Vance organization by the registrant’s principal accountant for the same time periods.
| Fiscal Years Ended | 9/30/08 | 9/30/09 | ||||||
Registrant |
$ | 11,045 | $ | 12,635 | ||||
Eaton Vance(1) |
$ | 325,801 | $ | 288,889 | ||||
| (1) | The investment adviser to the registrant, as well as any of its affiliates that provide ongoing services to the registrant, are subsidiaries of Eaton Vance Corp. |
(h) The registrant’s audit committee has considered whether the provision by the registrant’s
principal accountant of non-audit services to the registrant’s investment adviser and any entity
controlling, controlled by, or under common control with the adviser that provides ongoing services
to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is
compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed registrants
The registrant has a separately-designated standing audit committee established in accordance with
Section 3(a)(58)(A) of the Securities and Exchange Act of 1934, as amended. William H. Park
(Chair), Lynn A. Stout, Heidi L. Steiger and Ralph F. Verni are the members of the registrant’s
audit committee.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of
this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies
The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund
Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s
investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the
“Policies”) which are described below. The Trustees will review the Fund’s proxy voting records
from time to time and will annually consider approving the Policies for the upcoming year. In the
event that a conflict of interest arises between the Fund’s shareholders and the investment
adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment
adviser will generally refrain from voting the proxies related to the companies giving rise to such
conflict until it consults with the Board’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
Insured California Municipal Bond Fund II, Insured Massachusetts Municipal Bond Fund, Insured Michigan Municipal
Bond Fund, Insured Municipal Bond Fund II, Insured New York Municipal Bond Fund II, Insured New Jersey
Municipal Bond Fund, Insured Ohio Municipal Bond Fund, Insured Pennsylvania Municipal Bond Fund
Bond Fund, Insured Municipal Bond Fund II, Insured New York Municipal Bond Fund II, Insured New Jersey
Municipal Bond Fund, Insured Ohio Municipal Bond Fund, Insured Pennsylvania Municipal Bond Fund
Portfolio Management
Cynthia J. Clemson, portfolio manager of Eaton Vance Insured California Municipal Bond Fund II,
Robert B. MacIntosh, portfolio manager of Eaton Vance Insured Massachusetts Municipal Bond Fund and
Eaton Vance Insured New Jersey Municipal Bond Fund, William H. Ahern, Jr., portfolio manager of
Eaton Vance Insured Michigan Municipal Bond Fund, Eaton Vance Insured Municipal Bond Fund II and
Eaton Vance Insured Ohio Municipal Bond Fund, Craig R. Brandon, portfolio manager of Eaton
Vance Insured New York Municipal Bond Fund II and Adam A. Weigold, portfolio manager of Eaton Vance
Insured Pennsylvania Municipal Bond Fund are responsible for the overall and day-to-day management
of each Fund’s investments.
Ms. Clemson and Mr. MacIntosh have been Eaton Vance portfolio managers since 1991 and are Vice
Presidents of Eaton Vance Management (“EVM”) and Boston Management and Research (“BMR”). Mr. Ahern
has been an Eaton Vance portfolio manager since 1993 and is a Vice President of EVM and BMR. Mr.
Brandon has been an Eaton Vance analyst since 1998 and a portfolio manager since 2004, and is a
Vice President of EVM and BMR. Mr. Weigold has been a credit analyst with Eaton Vance since 1991
and a portfolio manager since 2007, and is a Vice President of EVM and BMR. This information is
provided as of the date of filing of this report.
The following tables show, as of each Fund’s most recent fiscal year end, the number of accounts
each portfolio manager managed in each of the listed categories and the total assets in the
accounts managed within each category. The table also shows the number of accounts with respect to
which the advisory fee is based on the performance of the account, if any, and the total assets in
those accounts.
| Total | ||||||||||||||||
| Number of | Assets of | Number of Accounts | Total Assets of | |||||||||||||
| All | All | Paying a | Accounts Paying a | |||||||||||||
| Accounts | Accounts* | Performance Fee | Performance Fee* | |||||||||||||
Insured California Municipal Bond Fund II |
||||||||||||||||
Cynthia J. Clemson |
||||||||||||||||
Registered Investment Companies |
9 | $ | 3,024.7 | 0 | $ | 0 | ||||||||||
Other Pooled Investment Vehicles |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
Other Accounts |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
Insured Massachusetts Municipal Bond Fund |
||||||||||||||||
Insured New Jersey Municipal Bond Fund |
||||||||||||||||
Robert B. MacIntosh |
||||||||||||||||
Registered Investment Companies |
10 | $ | 2,397.3 | 0 | $ | 0 | ||||||||||
Other Pooled Investment Vehicles |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
Other Accounts |
311 | $ | 282.5 | 0 | $ | 0 | ||||||||||
Insured Municipal Bond Fund II |
||||||||||||||||
Insured Michigan Municipal Bond Fund |
||||||||||||||||
Insured Ohio Municipal Bond Fund |
||||||||||||||||
William H. Ahern |
||||||||||||||||
Registered Investment Companies |
14 | $ | 1,872.1 | 0 | $ | 0 | ||||||||||
Other Pooled Investment Vehicles |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
Other Accounts |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
Insured New York Municipal Bond Fund II |
||||||||||||||||
Craig R. Brandon |
||||||||||||||||
Registered Investment Companies |
12 | $ | 2,837.5 | 0 | $ | 0 | ||||||||||
Other Pooled Investment Vehicles |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
Other Accounts |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
Insured Pennsylvania Municipal Bond Fund |
||||||||||||||||
Adam A. Weigold |
||||||||||||||||
Registered Investment Companies |
12 | $ | 1,047.8 | 0 | $ | 0 | ||||||||||
Other Pooled Investment Vehicles |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
Other Accounts |
0 | $ | 0 | 0 | $ | 0 | ||||||||||
| * | In millions of dollars. |
The following table shows the dollar range of Fund shares beneficially owned by each portfolio manager as of each Fund’s most recent fiscal year end.
| Dollar Range of Equity | ||||
| Securities Owned in the Fund | ||||
Insured California II |
||||
Cynthia J. Clemson |
None | |||
Insured Massachusetts |
||||
Insured New Jersey |
||||
Robert B. MacIntosh |
None | |||
Insured Michigan |
||||
Insured Municipal II |
||||
Insured Ohio |
||||
William H. Ahern, Jr. |
None | |||
Insured New York II |
||||
Craig R. Brandon |
None | |||
Insured Pennsylvania |
||||
Adam A. Weigold |
None | |||
Potential for Conflicts of Interest. It is possible that conflicts of interest may arise in
connection with a portfolio manager’s management of a Fund’s investments on the one hand and
investments of other accounts for which a portfolio manager is responsible on the other. For
example, a portfolio manager may have conflicts of interest in allocating management time,
resources and investment opportunities among the Fund and other accounts he or she advises. In
addition, due to differences in the investment strategies or restrictions between a Fund and the
other accounts, a portfolio manager may take action with respect to another account that differs
from the action taken with respect to the Fund. In some cases, another account managed by a
portfolio manager may compensate the investment adviser or sub-adviser based on the performance of
the securities held by that account. The existence of such a performance based fee may create
additional conflicts of interest for a portfolio manager in the allocation of management time,
resources and investment opportunities. Whenever conflicts of interest arise, a portfolio manager
will endeavor to exercise his or her discretion in a manner that he or she believes is equitable to
all interested persons. EVM has adopted several policies and procedures designed to address these
potential conflicts including: a code of ethics; and policies which govern the investment adviser’s
trading practices, including among other things the aggregation and allocation of trades among
clients, brokerage allocation, cross trades and best execution.
Compensation Structure for EVM
Compensation of EVM’s portfolio managers and other investment professionals has three primary
components: (1) a base salary, (2) an annual cash bonus, and (3) annual stockbased compensation
consisting of options to purchase shares of EVC’s nonvoting common stock and restricted shares of
EVC’s nonvoting common stock. EVM’s investment professionals also receive certain retirement,
insurance and other benefits that are broadly available to EVM’s employees. Compensation of EVM’s
investment professionals is reviewed primarily on an annual basis. Cash bonuses, stock-based
compensation awards, and adjustments in base salary are typically paid or put into effect at or
shortly after the October 31st fiscal year end of EVC.
Method to Determine Compensation. EVM compensates its portfolio managers based primarily on the
scale and complexity of their portfolio responsibilities and the total return performance of
managed funds and accounts versus appropriate peer groups or benchmarks. In addition to rankings
within peer groups of funds on the basis of absolute performance, consideration may also be given
to relative risk-adjusted performance. Risk-adjusted performance measures include, but are not
limited to, the Sharpe Ratio. Performance is normally based on periods ending on the September 30th
preceding fiscal year end. Fund performance is normally evaluated primarily versus peer groups of
funds as determined by Lipper Inc. and/or Morningstar, Inc. When a fund’s peer group as determined
by Lipper or Morningstar is deemed by EVM’s management not to provide a fair comparison,
performance may instead be evaluated primarily against a custom peer group. In evaluating the
performance of a fund and its manager, primary emphasis is normally placed on three-year
performance, with secondary consideration of performance over longer and shorter periods. For funds
that are tax-managed or otherwise have an objective of after-tax returns, performance is measured
net of taxes. For other funds, performance is evaluated on a pre-tax basis. For funds with an
investment objective other than total return (such as current income), consideration will also be
given to the fund’s success in achieving its objective. For managers responsible for multiple funds
and accounts, investment performance is evaluated on an aggregate basis, based on averages or
weighted averages among managed funds and accounts. Funds and accounts that have performance-based
advisory fees are not accorded disproportionate weightings in measuring aggregate portfolio manager
performance.
The compensation of portfolio managers with other job responsibilities (such as heading an
investment group or providing analytical support to other portfolios) will include consideration of
the scope of such responsibilities and the managers’ performance in meeting them.
EVM seeks to compensate portfolio managers commensurate with their responsibilities and
performance, and competitive with other firms within the investment management industry. EVM
participates in investment-industry compensation surveys and utilizes survey data as a factor in
determining salary, bonus and stock-based compensation levels for portfolio managers and other
investment professionals. Salaries, bonuses and stockbased compensation are also influenced by the
operating performance of EVM and its parent company. The overall annual cash bonus pool is based on
a substantially fixed percentage of pre-bonus operating income. While the salaries of EVM’s
portfolio managers are comparatively fixed, cash bonuses and stock-based compensation may fluctuate
significantly from year to year, based on changes in manager performance and other factors as
described herein. For a high performing portfolio manager, cash bonuses and stock-based
compensation may represent a substantial portion of total compensation.
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 California Municipal Bond Fund II
By:
|
/s/ Cynthia J. Clemson | |||
| President | ||||
Date:
|
November 16, 2009 |
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 | |||
| Treasurer | ||||
Date:
|
November 16, 2009 | |||
By:
|
/s/ Cynthia J. Clemson | |||
| President | ||||
Date:
|
November 16, 2009 |