N-CSRS 1 a08-10357_2ncsrs.htm N-CSRS

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-21147

 

Eaton Vance Insured California Municipal Bond Fund

(Exact name of registrant as specified in charter)

 

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

 

02109

(Address of principal executive offices)

 

(Zip code)

 

Maureen A. Gemma

The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(617) 482-8260

 

 

Date of fiscal year end:

September 30

 

 

Date of reporting period:

March 31, 2008

 

 


 


 

Item 1. Reports to Stockholders

 



Semiannual Report March 31, 2008

EATON VANCE
INSURED
MUNICIPAL
BOND
FUNDS

CLOSED-END FUNDS:

Insured Municipal

Insured California

Insured New York



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

Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy ("Privacy Policy") with respect to nonpublic personal information about its customers:

•  Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions.

•  None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer's account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker/dealers.

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

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

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

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

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

Delivery of Shareholder Documents. The Securities and Exchange Commission (the "SEC") permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called "householding" and it helps eliminate duplicate mailings to shareholders.

Eaton Vance, or your financial adviser, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial adviser, otherwise.

If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial adviser.

Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial adviser.

Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio (if applicable) will file a schedule of its portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC's website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC's public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).

Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds' and Portfolios' Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12 month period ended June 30, without charge, upon request, by calling 1-800-262-1122. This description is also available on the SEC's website at www.sec.gov.




 

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

 

TABLE OF CONTENTS

 

Investment Update

 

2-3

 

 

 

Performance Information and Portfolio Composition

 

 

 

 

 

Insured Municipal Bond Fund

 

4

Insured California Municipal Bond Fund

 

5

Insured New York Municipal Bond Fund

 

6

 

 

 

Financial Statements

 

7

 

 

 

Dividend Reinvestment Plan

 

33

 

 

 

Board of Trustees’ Annual Approval of the Investment Advisory Agreements

 

35

 

 

 

Investment Management

 

38

 

1



 

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

 

INVESTMENT UPDATE

 

The investment objective of each Eaton Vance Insured Municipal Bond Fund (the “Funds”), closed-end funds traded on the American Stock Exchange, is to provide current income exempt from regular federal income tax, federal alternative minimum tax and, in state specific funds, state personal income taxes, as applicable. The Funds invest primarily in high-grade municipal securities that are insured as to the timely payment of principal and interest.

 

Economic and Market Conditions

 

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

 

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

 

Management Discussion

 

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

 

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

 

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

 

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

 


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

 

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

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

Past performance is no guarantee of future results.

 

The views expressed throughout this report are those of the portfolio managers and are current only through the end of the period of the report as stated on the cover. These views are subject to change at any time based upon market or other conditions, and the investment adviser disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund are based on many factors, may not be relied on as an indication of trading intent on behalf of any Eaton Vance fund. Portfolio information provided in the report may not be representative of the Funds’ current or future investments and may change due to active management.

 

Fund shares are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks, including possible loss of principal invested.

 

2



 

As has been widely reported since mid-February 2008, the normal functioning of the auction market in the U.S. for certain types of “auction rate securities” has been disrupted by an imbalance between buy and sell orders. Consistent with patterns in the broader market for auction rate securities, the Funds have, since-mid February, experienced unsuccessful Auction Preferred Share (APS) auctions. In the event of an unsuccessful auction, the affected APS shares remain outstanding, and the dividend rate reverts to the specified maximum payable rate.

 

On April 23, 2008, after the end of the reporting period, management announced that it had secured new financing that the Funds intend to use to redeem a portion of their outstanding APS, subject to satisfying the notice and other requirements that apply to APS redemptions. Eaton Vance Insured Municipal Bond Fund, Eaton Vance Insured California Municipal Bond Fund and Eaton Vance Insured New York Municipal Bond Fund plan to redeem approximately 65%, 55% and 63%, respectively, of their outstanding APS by May 16, 2008. Management is working diligently to provide liquidity solutions that will enable the Funds to redeem their remaining outstanding APS. It is not certain when, or if, the Funds’ remaining APS will be redeemed.

 

3



 

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

 

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund performance(1)
American Stock Exchange Symbol

 

EIM

 

 

 

 

 

Average Annual Total Return (by share price)

 

 

 

Six Months

 

-10.64

%

One Year

 

-12.02

 

Five Years

 

5.82

 

Life of Fund (8/30/02)

 

5.14

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

-10.60

%

One Year

 

-11.69

 

Five Years

 

4.60

 

Life of Fund (8/30/02)

 

4.89

 

 

Market Yields

 

 

 

 

 

 

 

Market Yield(2)

 

5.87

%

Taxable-Equivalent Market Yield(3)

 

9.03

 

 

Index Performance(4)

 

 

 

 

 

 

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.75

%

One Year

 

1.90

 

Five Years

 

3.92

 

Life of Fund (8/31/02)

 

4.13

 

 

Lipper Averages(5)

 

 

 

 

 

 

 

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

 

 

 

Six Months

 

-3.64

%

One Year

 

-3.76

 

Five Years

 

3.56

 

Life of Fund (8/31/02)

 

3.84

 

 

Portfolio Manager: Robert B. Macintosh, CFA

 

Rating Distribution(6)

 

 

 

By total investments

 

 

 

Fund Statistics

 

 

 

 

 

 

 

·

 

Number of Issues:

 

124

 

·

 

Average Maturity:

 

28.5 years

 

·

 

Average Effective Maturity:

 

25.2 years

 

·

 

Average Rating:

 

AA+

 

·

 

Average Call Protection:

 

9.3 years

 

·

 

Average Dollar Price:

$

86.47

 

·

 

Leverage:*

 

41.4

%

 


* The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s net assets applicable to common shares plus Auction Preferred Shares. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares).

 

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

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

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

(4) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month-end only.

(5) The Lipper Averages are the average total returns, at net asset value, of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Insured Municipal Debt Funds (Leveraged) Classification (closed-end) contained 23, 23, 23 and 20 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month-end only.

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

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to www.eatonvance.com.

 

4



 

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

 

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund performance(1)
American Stock Exchange Symbol

 

EVM

 

 

 

 

 

Average Annual Total Return (by share price)

 

 

 

Six Months

 

-3.92

%

One Year

 

-6.66

 

Five Years

 

6.44

 

Life of Fund (8/30/02)

 

5.20

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

-9.61

%

One Year

 

-9.76

 

Five Years

 

4.37

 

Life of Fund (8/30/02)

 

4.41

 

 

Market Yields

 

 

 

 

 

 

 

Market Yield(2)

 

5.34

%

Taxable-Equivalent Market Yield(3)

 

9.06

 

 

Index Performance(4)

 

 

 

 

 

 

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.75

%

One Year

 

1.90

 

Five Years

 

3.92

 

Life of Fund (8/31/02)

 

4.13

 

 

Lipper Averages(5)

 

 

 

 

 

 

 

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

 

 

 

Six Months

 

-3.72

%

One Year

 

-3.60

 

Five Years

 

3.80

 

Life of Fund (8/31/02)

 

3.85

 

 

Portfolio Manager: Cynthia J. Clemson

 

Rating Distribution(6)

 

 

 

By total investments

 

 

 

Fund Statistics

 

 

 

 

 

 

 

 

 

·

 

Number of Issues:

 

95

 

·

 

Average Maturity:

 

25.9 years

 

·

 

Average Effective Maturity:

 

20.5 years

 

·

 

Average Rating:

 

AA+

 

·

 

Average Call Protection:

 

8.0 years

 

·

 

Average Dollar Price:

$

86.14

 

·

 

Leverage:*

 

41.0

%

 


* The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s net assets applicable to common shares plus Auction Preferred Shares. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares).

 

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

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

(3) Taxable-equivalent figure assumes a maximum 41.05% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure.

(4) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month-end only.

(5) The Lipper Averages are the average total returns, at net asset value, of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper California Insured Municipal Debt Funds Classification (closed-end) contained 13, 13, 13 and 10 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month-end only.

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

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to www.eatonvance.com.

 

5



 

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

 

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

Fund performance(1)
American Stock Exchange Symbol

 

ENX

 

 

 

 

 

Average Annual Total Return (by share price)

 

 

 

Six Months

 

-5.05

%

One Year

 

-6.91

 

Five Years

 

5.51

 

Life of Fund (8/30/02)

 

4.61

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

-7.96

%

One Year

 

-8.32

 

Five Years

 

4.13

 

Life of Fund (8/30/02)

 

4.41

 

 

Market Yields

 

 

 

 

 

 

 

Market Yield(2)

 

5.26

%

Taxable-Equivalent Market Yield(3)

 

8.69

 

 

Index Performance(4)

 

 

 

 

 

 

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.75

%

One Year

 

1.90

 

Five Years

 

3.92

 

Life of Fund (8/31/02)

 

4.13

 

 

Lipper Averages(5)

 

 

 

 

 

 

 

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

 

 

 

Six Months

 

-2.58

%

One Year

 

-2.27

 

Five Years

 

3.97

 

Life of Fund (8/31/02)

 

4.13

 

 

Portfolio Manager: Craig R. Brandon, CFA

 

Rating Distribution(6)

 

 

 

By total investments

 

 

 

Fund Statistics

 

 

 

 

 

 

 

·

 

Number of Issues:

 

60

 

·

 

Average Maturity:

 

26.8 years

 

·

 

Average Effective Maturity:

 

18.4 years

 

·

 

Average Rating:

 

AAA

 

·

 

Average Call Protection:

 

8.3 years

 

·

 

Average Dollar Price:

$

93.00

 

·

 

Leverage:*

 

40.6

%

 


* The leverage amount is Auction Preferred Shares at liquidation value as a percentage of the Fund’s net assets applicable to common shares plus Auction Preferred Shares. The Fund uses leverage through the issuance of preferred shares. Use of financial leverage creates an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value and market price of common shares).

 

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

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

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

(4) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month-end only.

(5) The Lipper Averages are the average 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 unrevealed funds. The Lipper New York Insured Municipal Debt Funds Classification (closed-end) contained 12, 12, 12 and 9 funds for the 6-month, 1-year, 5-year and Life-of-Fund periods, respectively. Lipper Averages are available as of month-end only.

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

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return. For performance as of the most recent month-end, please refer to www.eatonvance.com.

 

6



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

PORTFOLIO OF INVESTMENTS (Unaudited)


Tax-Exempt Investments — 172.2%
     
Principal Amount
(000's omitted)
 
Security
  Value  
Electric Utilities — 1.0%      
$ 10,300     Sabine River Authority, TX, (TXU Energy Co. LLC),
5.20%, 5/1/28
  $ 8,006,808    
            $ 8,006,808    
General Obligations — 4.5%      
$ 14,095     California, 4.75%, 9/1/35   $ 13,290,880    
  13,250     California, 5.50%, 11/1/33     13,531,827    
  11,040     New York City, NY, 5.25%, 1/15/33     11,080,738    
            $ 37,903,445    
Hospital — 15.8%      
$ 10,000     California Statewide Communities Development Authority,
(John Muir Health), 5.00%, 8/15/36
  $ 9,408,200    
  16,375     California Statewide Communities Development Authority,
(Kaiser Permanente), 5.00%, 3/1/41
    15,076,954    
  19,550     California Statewide Communities Development Authority,
(Kaiser Permanente), 5.25%, 3/1/45
    18,588,335    
  1,225     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.00%, 2/15/25
    1,130,258    
  2,610     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.00%, 2/15/35
    2,232,803    
  2,500     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.25%, 2/15/27
    2,329,775    
  6,200     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.75%, 2/15/34
    5,766,992    
  2,600     Cuyahoga County, OH, (Cleveland Clinic Health System),
5.50%, 1/1/29
    2,629,250    
  3,900     Hawaii Department of Budget and Finance,
(Hawaii Pacific Health), 5.60%, 7/1/33
    3,796,884    
  8,685     Highlands County, FL, Health Facilities Authority,
(Adventist Health System), 5.25%, 11/15/36
    8,241,457    
  10,000     Knox County, TN, Health, Educational & Housing
Facilities Board, (Covenant Health), 0.00%, 1/1/38
    1,521,600    
  10,000     Knox County, TN, Health, Educational & Housing
Facilities Board, (Covenant Health), 0.00%, 1/1/41
    1,258,500    
  8,500     Lehigh County, PA, General Purpose Authority,
(Lehigh Valley Health Network), 5.25%, 7/1/32
    8,316,740    
  6,955     Michigan Hospital Finance Authority,
(Henry Ford Health System), 5.00%, 11/15/38
    6,360,904    
  15,640     Michigan Hospital Finance Authority,
(Henry Ford Health System), 5.25%, 11/15/46
    14,667,348    
  18,755     Tarrant County, TX, Cultural Education Facilities Authority
(Texas Health Resources), 5.00%, 11/15/42
    17,556,368    
  15,000     Tarrant County, TX, Cultural Education Facilities Authority
(Texas Health Resources), 5.00%, 11/15/47
    13,919,100    
            $ 132,801,468    

 

Principal Amount
(000's omitted)
 
Security
  Value  
Industrial Development Revenue — 6.1%      
$ 21,275     Liberty, NY, Development Corp.,
(Goldman Sachs Group, Inc.), 5.50%, 10/1/37
  $ 22,331,729    
  32,850     St. John Baptist Parish, LA, (Marathon Oil Corp.),
5.125%, 6/1/37
    29,013,120    
            $ 51,344,849    
Insured-Education — 2.1%      
$ 11,045     Port Arthur, TX, Independent School District, (AGC),
4.75%, 2/15/38
  $ 10,585,418    
  8,325     Yuma and La Paz Counties, AZ, Community College District,
(Arizona Western College), (MBIA), 3.75%, 7/1/31
    6,649,344    
            $ 17,234,762    
Insured-Electric Utilities — 15.8%      
$ 13,000     Burlington, KS, Pollution Control Revenue,
(Kansas Gas & Electric Co.), (MBIA), 5.30%, 6/1/31
  $ 13,073,710    
  5,000     Los Angeles, CA, Department of Water & Power,
Power System Revenues, (FSA), 5.00%, 7/1/31
    5,029,850    
  19,395     Mississippi Development Bank, (Municipal Energy),
(XLCA), 5.00%, 3/1/41
    17,458,021    
  19,475     Missouri Joint Municipal Electric Utility Commission,
(AMBAC), 4.50%, 1/1/37
    17,830,726    
  21,320     Omaha, NE, Public Power District, (FGIC), 4.25%, 2/1/35     18,024,994    
  60,755     South Carolina Public Service Authority, (FSA),
5.125%, 1/1/37
    60,903,850    
            $ 132,321,151    
Insured-General Obligations — 19.3%      
$ 9,705     Alamo, TX, Community College District,
(MBIA), 4.75%, 8/15/32
  $ 9,391,431    
  13,050     California, (FSA), (AMBAC), 3.50%, 10/1/27     10,457,487    
  34,035     Chabot - Las Positas, CA, College District, (AMBAC),
0.00%, 8/1/45
    3,701,647    
  35,370     Chabot - Las Positas, CA, College District, (AMBAC),
0.00%, 8/1/46
    3,619,412    
  36,550     Chicago, IL, Board of Education, (FGIC),
0.00%, 12/1/21
    17,834,207    
  14,330     Clark County, NV, (AMBAC), 2.50%, 11/1/36     8,412,713    
  10,055     Frisco, TX, Independent School District, (FSA),
2.75%, 8/15/39
    6,186,841    
  16,645     Frisco, TX, Independent School District, (FSA),
4.00%, 8/15/40
    13,643,906    
  6,525     Frisco, TX, Independent School District, (MBIA),
4.50%, 8/15/40
    5,888,290    
  20,425     Kane, Cook and Du Page Counties, IL,
School District No. 46, (AMBAC), 0.00%, 1/1/21
    10,654,293    

 

See notes to financial statements
7



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

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
  Value  
Insured-General Obligations (continued)      
$ 50,650     Kane, Cook and Du Page Counties, IL,
School District No. 46, (AMBAC), 0.00%, 1/1/22
  $ 24,838,253    
  7,000     King County Public Hospital District No. 1, WA,
(AGC), 5.00%, 12/1/37
    6,935,390    
  6,615     North Las Vegas, NV, Wastewater Reclamation System,
(MBIA), 4.25%, 10/1/33
    5,792,094    
  12,515     Northside, TX, Independent School District,
(MBIA), 4.50%, 8/15/33
    11,535,826    
  20,750     Schaumburg, IL, (FGIC), 5.00%, 12/1/38     20,523,825    
  3,130     Texas (Transportation Commission-Mobility Fund),
(FGIC), 4.50%, 4/1/35
    2,886,455    
            $ 162,302,070    
Insured-Hospital — 6.8%      
$ 11,320     Highlands County, FL, Health Facilities Authority,
(Adventist Health System), (MBIA), 5.00%, 11/15/35
  $ 10,925,045    
  1,725     Maryland Health and Higher Educational
Facilities Authority, (Lifebridge Health), (AGC),
4.75%, 7/1/38
    1,642,493    
  17,450     Maryland Health and Higher Educational
Facilities Authority, (Lifebridge Health), (AGC),
4.75%, 7/1/47
    16,294,112    
  2,165     New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center), (AGC),
5.25%, 1/1/31(1)
    2,184,550    
  4,385     New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center),
(AGC), 5.25%, 1/1/36(1)
    4,424,597    
  8,700     Washington Health Care Facilities Authority, (Providence
Health Care), Series C, (FSA), 5.25%, 10/1/33(1)
    8,700,000    
  8,265     Washington Health Care Facilities Authority, (Providence
Health Care), Series D, (FSA), 5.25%, 10/1/33(1)
    8,390,132    
  4,350     Washington Health Care Facilities Authority, (Providence
Health Care), Series E, (FSA), 5.25%, 10/1/33(1)
    4,380,842    
            $ 56,941,771    
Insured-Lease Revenue / Certificates of
Participation — 6.0%
     
$ 8,345     Jackson County, MO, Leasehold Revenue, (Truman Sports),
(AMBAC), 4.50%, 12/1/31
  $ 7,752,922    
  42,795     San Jose, CA, Financing Authority, (Civic Center),
(AMBAC), 5.00%, 6/1/37
    42,807,838    
            $ 50,560,760    

 

Principal Amount
(000's omitted)
 
Security
  Value  
Insured-Other Revenue — 11.4%      
$ 78,275     Golden State Tobacco Securitization Corp., CA, (AGC),
5.00%, 6/1/45
  $ 75,955,712    
  10,000     Harris County, TX, (MBIA), 5.00%, 8/15/33     9,914,200    
  16,795     Harris County-Houston, TX, Sports Authority, (MBIA),
0.00%, 11/15/34
    3,196,424    
  6,620     New York City Industrial Development Agency,
(Queens Baseball Stadium), (AMBAC), 5.00%, 1/1/39
    6,517,258    
            $ 95,583,594    
Insured-Private Education — 2.8%      
$ 270     Massachusetts Development Finance Agency,
(Boston University), (XLCA), 6.00%, 5/15/59
  $ 285,476    
  10,000     Massachusetts Development Finance Agency,
(Franklin W. Olin College), (XLCA), 5.25%, 7/1/33
    9,766,800    
  2,920     Pennsylvania Higher Educational Facilities Authority,
(Temple University), (MBIA), 4.50%, 4/1/36
    2,680,677    
  11,990     Washington, DC, Georgetown University,
(AMBAC), 4.50%, 4/1/42
    10,629,974    
            $ 23,362,927    
Insured-Public Education — 5.9%      
$ 18,005     Alabama Public School and College Authority,
(FSA), 2.50%, 12/1/27
  $ 12,271,308    
  14,980     College of Charleston, SC, Academic and Administrative
Facilities, (XLCA), 4.50%, 4/1/37
    13,439,157    
  20,485     University of California, (FSA), 4.50%, 5/15/28     19,443,133    
  2,290     University of California, (MBIA), 4.75%, 5/15/37     2,209,369    
  3,045     University of Vermont and State Agricultural College,
(MBIA), 4.00%, 10/1/35
    2,564,560    
            $ 49,927,527    
Insured-Sewer Revenue — 3.3%      
$ 13,670     Chicago, IL, Wastewater Transmission, (MBIA),
0.00%, 1/1/23
  $ 6,365,025    
  14,590     King County, WA, Sewer Revenue, (FGIC), 5.00%, 1/1/31     14,490,788    
  7,495     Marysville, OH, Wastewater Treatment System, (XLCA),
4.75%, 12/1/46
    6,667,552    
            $ 27,523,365    
Insured-Special Tax Revenue — 12.4%      
$ 18,980     Houston, TX, Hotel Occupancy Tax, (AMBAC),
0.00%, 9/1/24
  $ 7,616,294    
  13,100     Massachusetts Bay Transportation Authority,
Revenue Assessment, (MBIA), 4.00%, 7/1/33
    10,984,088    

 

See notes to financial statements
8



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

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
  Value  
Insured-Special Tax Revenue (continued)      
$ 34,585     Metropolitan Pier and Exposition Authority,
IL, (McCormick Place Expansion), (MBIA),
0.00%, 12/15/34
  $ 7,912,702    
  17,200     New York Convention Center Development Corp.,
Hotel Occupancy Tax, (AMBAC), 4.75%, 11/15/45
    16,308,868    
  20,150     New York Convention Center Development Corp.,
Hotel Occupancy Tax, (AMBAC), 5.00%, 11/15/44
    19,835,862    
  223,640     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
    14,735,640    
  38,025     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44     4,565,662    
  75,420     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45     8,536,036    
  47,475     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46     5,060,835    
  9,095     Utah Transportation Authority Sales Tax, (FSA),
4.75%, 6/15/32(1)
    8,876,993    
            $ 104,432,980    
Insured-Transportation — 31.4%      
$ 21,640     Chicago, IL, (O'Hare International Airport), (FSA),
4.75%, 1/1/34
  $ 20,708,831    
  13,360     Chicago, IL, (O'Hare International Airport), (FSA),
5.00%, 1/1/38
    13,236,420    
  7,000     Clark County, NV, Airport Authority, (FGIC),
5.00%, 7/1/36
    6,733,230    
  10,070     Director of the State of Nevada
Department of Business and Industry,
(Las Vegas Monorail), (AMBAC), 0.00%, 1/1/23
    3,758,225    
  3,100     Director of the State of Nevada
Department of Business and Industry,
(Las Vegas Monorail), (AMBAC), 0.00%, 1/1/28
    828,351    
  20,000     Director of the State of Nevada
Department of Business and Industry,
(Las Vegas Monorail), (AMBAC), 5.375%, 1/1/40
    16,319,200    
  10,200     E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/21
    4,964,340    
  25,000     E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/39
    3,705,250    
  11,935     Harris County, TX, Toll Road, Senior Lien, (MBIA),
4.50%, 8/15/36
    10,760,954    
  10,150     Maryland Transportation Authority, (FSA),
4.50%, 7/1/41
    9,300,141    
  10,000     Metropolitan Atlanta Rapid Transit Authority,
(FSA), 4.50%, 7/1/32
    9,235,100    
  21,965     Minneapolis and St. Paul, MN, Metropolitan Airports
Commission, (FGIC), 4.50%, 1/1/32
    19,442,539    
  24,600     New Jersey Transportation Trust Fund Authority,
(Transportation System), (AMBAC), 5.00%, 12/15/25
    25,264,692    
  4,205     North Texas Tollway Authority, (FSA),
Prerefunded to 1/1/15, 4.50%, 1/1/38
    4,454,356    

 

Principal Amount
(000's omitted)
 
Security
  Value  
Insured-Transportation (continued)      
$ 10,000     Port Authority of New York and New Jersey, (FSA),
5.00%, 8/15/26
  $ 10,270,600    
  87,045     San Joaquin Hills, CA, Transportation Corridor
Agency, (Toll Road Bonds), (MBIA), 0.00%, 1/15/25(2)
    32,210,132    
  40,165     Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/20     21,307,533    
  52,860     Texas Turnpike Authority, (AMBAC), 5.00%, 8/15/42     51,610,390    
            $ 264,110,284    
Insured-Utilities — 2.2%      
$ 5,000     Illinois Development Finance Authority,
(Peoples Gas, Light and Coke), (AMBAC),
5.00%, 2/1/33
  $ 4,929,700    
  15,360     Springfield, MO, Public Utility Revenue, (FGIC),
4.50%, 8/1/36
    13,900,493    
            $ 18,830,193    
Insured-Water and Sewer — 15.2%      
$ 19,640     Atlanta, GA, Water and Wastewater, (MBIA),
5.00%, 11/1/39
  $ 19,402,356    
  4,815     Birmingham, AL, Waterworks and Sewer Board, (AMBAC),
4.50%, 1/1/39
    4,396,384    
  5,530     Birmingham, AL, Waterworks and Sewer Board, (AMBAC),
4.50%, 1/1/43
    5,002,051    
  2,750     Coral Springs, FL, Improvements District,
Water and Sewer Revenue, (MBIA), 4.75%, 6/1/32
    2,611,840    
  3,000     Coral Springs, FL, Improvements District,
Water and Sewer Revenue, (MBIA), 4.75%, 6/1/37
    2,823,990    
  6,095     East Baton Rouge, LA, Sewer Commission, (FSA),
4.50%, 2/1/31
    5,661,341    
  5,890     East Baton Rouge, LA, Sewer Commission, (FSA),
4.50%, 2/1/36
    5,400,011    
  1,230     Fort Lauderdale, FL, Water and Sewer, (MBIA),
4.25%, 9/1/33
    1,064,639    
  27,570     Houston Utility System, TX, (FSA), 5.00%, 11/15/33     27,610,252    
  15,870     Knoxville, TN, Wastewater System, (MBIA),
4.00%, 4/1/40
    12,937,383    
  40,120     Massachusetts Water Resources Authority, (AMBAC),
4.00%, 8/1/40
    32,857,076    
  8,650     Tampa Bay, FL, Regional Water Supply Authority, (FGIC),
4.50%, 10/1/36
    7,802,646    
            $ 127,569,969    
Insured-Water Revenue — 9.2%      
$ 3,250     Baltimore, MD, (Water Projects), (FGIC),
5.125%, 7/1/42
  $ 3,192,573    
  53,595     Los Angeles, CA, Department of Water and Power,
Water Revenue, (FGIC), 5.00%, 7/1/43
    52,709,611    

 

See notes to financial statements
9



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

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
  Value  
Insured-Water Revenue (continued)      
$ 5,000     Metropolitan Water District, CA, (FGIC),
5.00%, 10/1/33
  $ 5,009,500    
  5,885     Metropolitan Water District, CA, (FGIC),
5.00%, 10/1/36
    5,893,416    
  10,710     San Luis Obispo County, CA, (Nacimiento Water Project),
(MBIA), 4.50%, 9/1/40
    9,645,854    
  1,185     West Wilson, TN, Utility District Waterworks,
(MBIA), 4.00%, 6/1/32
    990,269    
            $ 77,441,223    
Other Revenue — 0.3%      
$ 3,055     Main Street National Gas Inc., GA,
5.50%, 9/15/27
  $ 2,745,131    
            $ 2,745,131    
Special Tax Revenue — 0.7%      
$ 4,600     New Jersey Economic Development Authority,
(Cigarette Tax), 5.50%, 6/15/24
  $ 4,432,468    
  1,750     New Jersey Economic Development Authority,
(Cigarette Tax), 5.50%, 6/15/31
    1,628,568    
            $ 6,061,036    
Total Tax-Exempt Investments — 172.2%
(identified cost $1,512,728,963)
  $ 1,447,005,313    
Other Assets, Less Liabilities — (1.7)%   $ (14,043,233 )  
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (70.5)%
  $ (592,688,671 )  
Net Assets Applicable to
Common Shares — 100.0%
  $ 840,273,409    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

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

California     40.3 %  
Texas     28.1 %  
Illinois     15.1 %  
New York     10.3 %  
Others, representing less than 10% individually     78.4 %  

 

The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2008, 83.5% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 3.3% to 25.7% of total investments.

(1)  When-issued security.

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

See notes to financial statements
10



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

PORTFOLIO OF INVESTMENTS (Unaudited)


Tax-Exempt Investments — 167.3%
     
Principal Amount
(000's omitted)
 
Security
 
Value
 
General Obligations — 5.7%      
$ 6,165     California, 4.75%, 6/1/35   $ 5,814,643    
  9,975     California, 5.50%, 11/1/33     10,187,168    
            $ 16,001,811    
Hospital — 13.3%      
$ 2,000     California Health Facilities Financing Authority,
(Catholic Healthcare West), 5.25%, 7/1/23
  $ 2,021,580    
  3,245     California Health Facilities Financing Authority,
(Cedars-Sinai Medical Center), 5.00%, 11/15/34
    3,047,379    
  10,900     California Statewide Communities Development Authority,
(Huntington Memorial Hospital), 5.00%, 7/1/35
    10,280,662    
  2,330     California Statewide Communities Development Authority,
(John Muir Health), 5.00%, 8/15/34
    2,202,735    
  3,650     California Statewide Communities Development Authority,
(Kaiser Permanente), 5.00%, 3/1/41
    3,360,664    
  3,850     California Statewide Communities Development Authority,
(Kaiser Permanente), 5.25%, 3/1/45
    3,660,618    
  4,000     Torrance Hospital, (Torrance Memorial Medical Center),
5.50%, 6/1/31
    3,989,280    
  2,100     Turlock, (Emanuel Medical Center, Inc.),
5.375%, 10/15/34
    1,890,861    
  3,165     Washington Township Health Care District, 5.00%, 7/1/32     2,972,315    
  1,000     Washington Township Health Care District, 5.00%, 7/1/37     926,920    
  3,005     Washington Township Health Care District, 5.25%, 7/1/29     2,968,730    
            $ 37,321,744    
Insured-Electric Utilities — 12.4%      
$ 20,000     Anaheim Public Financing Authority,
(Electric System Distribution Facilities), (MBIA),
4.50%, 10/1/32
  $ 18,361,000    
  6,950     Los Angeles, Department of Water & Power,
Power Systems Revenue, (AMBAC), 5.00%, 7/1/26
    7,083,579    
  4,000     Sacramento Municipal Electric Utility District, (FSA),
5.00%, 8/15/28
    4,029,440    
  5,380     Sacramento Municipal Electric Utility District, (MBIA),
5.00%, 8/15/28
    5,392,912    
            $ 34,866,931    
Insured-Escrowed / Prerefunded — 1.5%      
$ 7,540     Foothill/Eastern, Transportation Corridor Agency,
(FSA), Escrowed to Maturity, 0.00%, 1/1/21
  $ 4,216,971    
            $ 4,216,971    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-General Obligations — 34.5%      
$ 4,260     Antelope Valley Community College District,
(Election of 2004), (MBIA), 5.25%, 8/1/39
  $ 4,334,550    
  17,495     Arcadia Unified School District, (FSA), 0.00%, 8/1/40     2,606,405    
  18,375     Arcadia Unified School District, (FSA), 0.00%, 8/1/41     2,582,606    
  2,840     Azusa Unified School District, (FSA), 0.00%, 7/1/25     1,142,305    
  6,030     Burbank Unified School District, (FGIC), 0.00%, 8/1/21     3,002,035    
  6,500     California, (AGC), 4.50%, 8/1/30     6,047,990    
  10,000     Chabot - Las Positas, Community College District,
(AMBAC), 0.00%, 8/1/32
    2,441,000    
  10,000     Chabot - Las Positas, Community College District,
(AMBAC), 0.00%, 8/1/36
    1,873,100    
  10,000     Chabot - Las Positas, Community College District,
(AMBAC), 0.00%, 8/1/37
    1,760,500    
  32,755     Chabot - Las Positas, Community College District,
(AMBAC), 0.00%, 8/1/44
    3,783,202    
  3,000     Chino Valley Unified School District,
(FSA), 5.00%, 8/1/26
    3,029,160    
  10,600     Coast Community College District, (Election of 2002),
(FSA), 0.00%, 8/1/33
    2,523,012    
  25,000     Coast Community College District, (Election of 2002),
(FSA), 0.00%, 8/1/34
    5,611,250    
  7,725     Escondido, (Election of 2004), (MBIA), 4.75%, 9/1/36     7,422,026    
  2,060     Huntington Beach, City School District,
(FGIC), 0.00%, 8/1/25
    784,242    
  2,140     Huntington Beach, City School District,
(FGIC), 0.00%, 8/1/26
    762,332    
  2,000     Jurupa Unified School District, (FGIC), 0.00%, 8/1/23     873,000    
  2,000     Jurupa Unified School District, (FGIC), 0.00%, 8/1/26     709,940    
  2,115     Los Angeles Unified School District, (FSA), 4.50%, 7/1/24     2,086,088    
  3,225     Modesto, High School District, Stanislaus County,
(FGIC), 0.00%, 8/1/24
    1,316,800    
  2,990     Oakland Unified School District, Alameda County,
(Election of 2006), (FSA), 4.375%, 8/1/28
    2,743,684    
  5,000     Riverside Unified School District, (FGIC), 5.00%, 2/1/27     4,987,550    
  10,000     San Diego Unified School District, (FGIC), 0.00%, 7/1/22     4,758,600    
  10,000     San Diego Unified School District, (FGIC), 0.00%, 7/1/23     4,463,600    
  8,000     San Juan Unified School District, (FSA), 0.00%, 8/1/21     4,130,400    
  5,240     San Mateo, Union High School District,
(FGIC), 0.00%, 9/1/21
    2,628,122    
  5,000     San Mateo County, Community College District,
(FGIC), 0.00%, 9/1/22
    2,358,700    
  4,365     San Mateo County, Community College District,
(FGIC), 0.00%, 9/1/23
    1,931,251    
  3,955     San Mateo County, Community College District,
(FGIC), 0.00%, 9/1/25
    1,526,867    
  2,740     Santa Ana Unified School District,
(MBIA), 5.00%, 8/1/32
    2,748,275    

 

See notes to financial statements
11



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

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-General Obligations (continued)      
$ 5,915     Santa Clara Unified School District, (Election of 2004),
(FSA), 4.375%, 7/1/30
  $ 5,434,288    
  3,825     Union Elementary School District, (FGIC),
0.00%, 9/1/24
    1,582,211    
  3,000     Ventura County, Community College District,
(MBIA), 5.00%, 8/1/27
    3,013,740    
            $ 96,998,831    
Insured-Hospital — 7.6%      
$ 19,495     California Health Facilities Financing Authority,
(Sutter Health), (MBIA), 5.00%, 8/15/38
  $ 19,343,329    
  2,000     California Statewide Communities Development Authority,
(Sutter Health), (AMBAC), 5.00%, 11/15/38
    1,984,380    
            $ 21,327,709    
Insured-Lease Revenue / Certificates of
Participation — 11.3%
     
$ 11,915     California Public Works Board Lease Revenue,
(California Community College),
(FGIC), 4.00%, 10/1/30
  $ 9,920,667    
  1,000     California Public Works Board Lease Revenue,
(Department of General Services), (AMBAC),
5.00%, 12/1/27
    1,004,470    
  15,000     San Jose Financing Authority, (Civic Center),
(AMBAC), 5.00%, 6/1/37
    15,004,500    
  5,850     Shasta, Joint Powers Financing Authority,
(County Administration Building), (MBIA),
5.00%, 4/1/29
    5,819,873    
            $ 31,749,510    
Insured-Other Revenue — 7.0%      
$ 20,275     Golden State Tobacco Securitization Corp., (AGC),
5.00%, 6/1/45
  $ 19,674,252    
            $ 19,674,252    
Insured-Public Education — 8.1%      
$ 1,000     California State University, (AMBAC), 5.125%, 11/1/26   $ 1,010,520    
  3,095     University of California, (FSA), 4.50%, 5/15/26     2,990,575    
  6,690     University of California, (FSA), 4.50%, 5/15/28     6,349,747    
  12,965     University of California, General Revenues,
(FGIC), 4.75%, 5/15/37
    12,431,490    
            $ 22,782,332    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Sewer Revenue — 6.5%      
$ 18,350     Livermore-Amador Valley, Water Management Agency,
(AMBAC), 5.00%, 8/1/31
  $ 18,376,608    
            $ 18,376,608    
Insured-Special Assessment Revenue — 8.6%      
$ 7,765     Ceres, Redevelopment Agency Tax, (AMBAC),
4.00%, 11/1/36
  $ 6,365,980    
  1,800     Murrieta Redevelopment Agency Tax, (MBIA),
5.00%, 8/1/32
    1,789,848    
  7,000     Pomona, Public Financing Authority, (MBIA),
5.00%, 2/1/33
    6,960,100    
  6,110     Santa Cruz County, Redevelopment Agency Tax,
(MBIA), 5.00%, 9/1/35
    6,028,920    
  3,000     Tustin Unified School District, (FSA), 5.00%, 9/1/38     2,990,550    
            $ 24,135,398    
Insured-Special Tax Revenue — 15.4%      
$ 2,200     Hesperia Public Financing Authority, (Redevelopment and
Housing Project), (XLCA), 5.00%, 9/1/31
  $ 2,067,054    
  10,355     Hesperia Public Financing Authority, (Redevelopment and
Housing Project), (XLCA), 5.00%, 9/1/37
    9,575,683    
  2,500     North City, School Facility Financing Authority, (AMBAC),
0.00%, 9/1/26
    910,550    
  77,090     Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54     5,079,460    
  13,095     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44     1,572,317    
  25,980     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45     2,940,416    
  16,350     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46     1,742,910    
  925     San Francisco Bay Area Rapid Transportation District, Sales
Tax Revenue, (AMBAC), 5.00%, 7/1/26
    930,162    
  3,595     San Francisco Bay Area Rapid Transportation District, Sales
Tax Revenue, (AMBAC), 5.00%, 7/1/31
    3,570,302    
  1,850     San Francisco Bay Area Rapid Transportation District, Sales
Tax Revenue, (AMBAC), 5.125%, 7/1/36
    1,852,868    
  7,000     San Francisco Bay Area Rapid Transportation District, Sales
Tax Revenue, (FSA), 4.25%, 7/1/36
    6,033,580    
  8,425     San Jose Redevelopment Agency, (Merged Area),
(XLCA), 4.25%, 8/1/36
    7,123,675    
            $ 43,398,977    
Insured-Transportation — 6.3%      
$ 3,000     Puerto Rico Highway and Transportation Authority,
(FGIC), 5.25%, 7/1/39
  $ 2,871,150    
  13,940     Sacramento County, Airport System, (FSA),
5.00%, 7/1/27
    14,023,779    

 

See notes to financial statements
12



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

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Transportation (continued)      
$ 3,445     San Joaquin Hills, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/30
  $ 905,002    
            $ 17,799,931    
Insured-Utilities — 5.3%      
$ 14,750     Los Angeles, Department of Water and Power,
(MBIA), 5.125%, 7/1/41
  $ 14,790,415    
            $ 14,790,415    
Insured-Water Revenue — 22.8%      
$ 8,180     California Water Resource, (Central Valley),
(FGIC), 5.00%, 12/1/29(1)
  $ 8,192,924    
  2,955     Calleguas Las Virgenes Public Financing Authority,
(Municipal Water District), (MBIA), 4.25%, 7/1/32
    2,621,055    
  7,065     Calleguas Las Virgenes Public Financing Authority,
(Municipal Water District), (FGIC), 4.75%, 7/1/37
    6,773,639    
  5,500     Contra Costa, Water District, (FSA), 4.50%, 10/1/31     5,151,190    
  7,835     Los Angeles, Department of Water and Power,
Water Revenue, (FGIC), 5.00%, 7/1/43
    7,705,566    
  10,000     Metropolitan Water District, (FGIC), 5.00%, 10/1/36     10,014,300    
  1,750     San Diego, (Water Utility Fund), (FGIC), 4.75%, 8/1/28     1,707,528    
  8,330     San Francisco City and County Public Utilities Commission,
(FSA), 4.25%, 11/1/33
    7,396,040    
  7,500     San Luis Obispo County, (Nacimiento Water Project),
(MBIA), 4.50%, 9/1/40
    6,754,800    
  9,500     Santa Clara Valley Water District, (FSA), 3.75%, 6/1/28     7,875,595    
            $ 64,192,637    
Lease Revenue / Certificates of Participation — 1.0%      
$ 2,570     Sacramento City Financing Authority, 5.40%, 11/1/20   $ 2,787,448    
            $ 2,787,448    
Total Tax-Exempt Investments — 167.3%
(identified cost $490,638,740)
  $ 470,421,505    
Other Assets, Less Liabilities — 2.1%   $ 5,898,055    
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (69.4)%
  $ (195,086,243 )  
Net Assets Applicable to
Common Shares — 100.0%
  $ 281,233,317    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2008, 88.1% 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 4.0% to 23.9% of total investments.

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

See notes to financial statements
13



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

PORTFOLIO OF INVESTMENTS (Unaudited)


Tax-Exempt Investments — 167.3%
     
Principal Amount
(000's omitted)
 
Security
 
Value
 
Electric Utilities — 0.9%      
$ 1,950     Long Island Power Authority, Electric System Revenue,
5.00%, 9/1/27
  $ 1,942,726    
            $ 1,942,726    
Escrowed / Prerefunded — 0.4%      
$ 735     New York City, Prerefunded to 6/1/12,
5.25%, 6/1/27
  $ 804,355    
            $ 804,355    
General Obligations — 4.4%      
$ 3,500     New York City, 5.25%, 8/15/26   $ 3,568,075    
  2,340     New York City, 5.25%, 6/1/27     2,367,729    
  1,500     New York City, 5.25%, 1/15/28     1,522,050    
  1,805     New York City, 5.25%, 1/15/33     1,811,660    
            $ 9,269,514    
Hospital — 0.3%      
$ 640     New York Dormitory Authority, (Lenox Hill Hospital),
5.50%, 7/1/30
  $ 597,715    
            $ 597,715    
Industrial Development Revenue — 3.0%      
$ 4,645     Liberty Development Corp., (Goldman Sachs Group, Inc.),
5.25%, 10/1/35
  $ 4,706,082    
  1,485     Liberty Development Corp., (Goldman Sachs Group, Inc.),
5.50%, 10/1/37
    1,558,760    
            $ 6,264,842    
Insured-Electric Utilities — 7.9%      
$ 6,730     Long Island Power Authority, (AMBAC), 5.00%, 9/1/34   $ 6,710,146    
  3,685     Long Island Power Authority, Electric System Revenue,
(MBIA), 4.25%, 5/1/33
    3,244,348    
  7,210     New York Power Authority, (MBIA), 4.50%, 11/15/47     6,519,570    
            $ 16,474,064    
Insured-General Obligations — 0.9%      
$ 1,750     New York Dormitory Authority, (School Districts
Financing Program), (MBIA), 5.00%, 10/1/30
  $ 1,755,583    
            $ 1,755,583    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Hospital — 16.7%      
$ 15,500     New York City Health and Hospital Corp.,
(Health Systems), (AMBAC), 5.00%, 2/15/23
  $ 15,746,760    
  2,240     New York Dormitory Authority,
(Health Quest Systems), (AGC), 5.125%, 7/1/37
    2,242,262    
  6,800     New York Dormitory Authority,
(Maimonides Medical Center), (MBIA), 5.00%, 8/1/33
    6,803,196    
  10,000     New York Dormitory Authority,
(Presbyterian Hospital), (FSA), 5.25%, 2/15/31
    10,128,900    
            $ 34,921,118    
Insured-Lease Revenue / Certificates of
Participation — 7.2%
     
$ 8,955     Hudson Yards Infrastructure Corp., (FGIC),
5.00%, 2/15/47
  $ 8,661,186    
  7,120     Hudson Yards Infrastructure Corp., (MBIA),
4.50%, 2/15/47
    6,436,765    
            $ 15,097,951    
Insured-Other Revenue — 8.7%      
$ 5,535     New York City Cultural Resource Trust, (American Museum
of Natural History), (MBIA), 5.00%, 7/1/44
  $ 5,488,727    
  3,030     New York City Industrial Development Agency, (Queens
Baseball Stadium), (AMBAC), 4.75%, 1/1/42
    2,839,019    
  2,465     New York City Industrial Development Agency, (Queens
Baseball Stadium), (AMBAC), 5.00%, 1/1/39
    2,426,743    
  8,000     New York City Industrial Development Agency, (Yankee
Stadium), (MBIA), 4.75%, 3/1/46
    7,492,640    
            $ 18,247,129    
Insured-Private Education — 29.2%      
$ 4,000     Madison County Industrial Development Agency,
(Colgate University), (MBIA), 5.00%, 7/1/39
  $ 3,990,280    
  16,500     New York City Industrial Development Agency,
(New York University), (AMBAC), 5.00%, 7/1/41
    16,419,150    
  11,500     New York Dormitory Authority, (Brooklyn Law School),
(XLCA), 5.125%, 7/1/30
    11,491,490    
  2,225     New York Dormitory Authority, (FIT Student Housing Corp.),
(FGIC), 5.125%, 7/1/26
    2,473,110    
  4,250     New York Dormitory Authority, (New York University),
(AMBAC), 5.00%, 7/1/31
    4,254,718    
  4,500     New York Dormitory Authority, (New York University),
(AMBAC), 5.00%, 7/1/41
    4,477,950    
  13,585     New York Dormitory Authority, (Rochester Institute of
Technology), (AMBAC), 5.25%, 7/1/32
    13,624,804    
  8,205     Oneida County Industrial Development Agency,
(Hamilton College), (MBIA), 0.00%, 7/1/34
    1,875,089    

 

See notes to financial statements
14



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

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Private Education (continued)      
$ 8,455     Oneida County Industrial Development Agency,
(Hamilton College), (MBIA), 0.00%, 7/1/36
  $ 1,711,123    
  4,000     Oneida County Industrial Development Agency,
(Hamilton College), (MBIA), 0.00%, 7/1/37
    762,400    
            $ 61,080,114    
Insured-Solid Waste — 1.4%      
$ 1,790     Ulster County, Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/21
  $ 948,235    
  1,090     Ulster County, Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/23
    512,017    
  3,735     Ulster County, Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/25
    1,531,499    
            $ 2,991,751    
Insured-Special Tax Revenue — 33.5%      
$ 14,560     Metropolitan Transportation Authority, Petroleum Tax Fund,
(FSA), 5.00%, 11/15/32(1)
  $ 14,497,829    
  10,000     New York City, Transitional Finance Authority, (FGIC),
(FSA), 5.00%, 7/15/31
    10,062,900    
  4,000     New York Convention Center Development Corp., Hotel
Occupancy Tax, (AMBAC), 4.75%, 11/15/45
    3,792,760    
  13,335     New York Convention Center Development Corp., Hotel
Occupancy Tax, (AMBAC), 5.00%, 11/15/44
    13,127,107    
  3,000     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/36
    551,700    
  10,000     Puerto Rico Infrastructure Financing Authority, (FGIC),
0.00%, 7/1/32
    2,365,500    
  54,630     Puerto Rico Sales Tax Financing, (AMBAC),
0.00%, 8/1/54
    3,599,571    
  83,445     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44     10,019,241    
  18,440     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45     2,087,039    
  11,605     Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46     1,237,093    
  8,620     Sales Tax Asset Receivables Corp., (AMBAC),
5.00%, 10/15/29
    8,686,719    
            $ 70,027,459    
Insured-Transportation — 32.0%      
$ 22,500     Metropolitan Transportation Authority, (FSA),
5.00%, 11/15/30
  $ 22,600,125    
  5,600     Port Authority of New York and New Jersey, (FSA),
5.00%, 8/15/24
    5,811,904    
  11,000     Port Authority of New York and New Jersey, (FSA),
5.00%, 8/15/33
    11,114,180    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Transportation (continued)      
$ 3,145     Puerto Rico Highway and Transportation Authority, (MBIA),
5.00%, 7/1/33
  $ 3,118,016    
  24,150     Triborough Bridge and Tunnel Authority, (MBIA),
5.00%, 11/15/32
    24,207,960    
            $ 66,852,185    
Insured-Water and Sewer — 10.0%      
$ 6,615     New York City Municipal Water Finance Authority,
(Water and Sewer System), (AMBAC), 5.00%, 6/15/38
  $ 6,538,266    
  10,000     New York City Municipal Water Finance Authority,
(Water and Sewer System), (MBIA), 5.125%, 6/15/34
    10,019,800    
  4,580     Suffolk County Water Authority, (MBIA), 4.50%, 6/1/32     4,353,015    
            $ 20,911,081    
Lease Revenue / Certificates of Participation — 6.8%      
$ 4,000     Metropolitan Transportation Authority, Lease Contract,
5.125%, 1/1/29
  $ 4,006,480    
  10,000     New York Dormitory Authority, (North General Hospital),
5.00%, 2/15/25
    10,128,700    
            $ 14,135,180    
Private Education — 2.3%      
$ 1,630     Madison County Industrial Development Agency,
(Colgate University), 5.00%, 7/1/33
  $ 1,634,352    
  3,065     Rensselaer County Industrial Development Agency,
(Rensselaer Polytech Institute), 5.125%, 8/1/27
    3,073,613    
            $ 4,707,965    
Water Revenue — 1.7%      
$ 3,750     New York State Environmental Facilities Corp., Clean Water,
(Municipal Water Finance), 4.50%, 6/15/36
  $ 3,489,300    
            $ 3,489,300    
Total Tax-Exempt Investments — 167.3%
(identified cost $358,388,772)
  $ 349,570,032    
Other Assets, Less Liabilities — 0.9%   $ 1,863,638    
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (68.2)%
  $ (142,531,512 )  
Net Assets Applicable to
Common Shares — 100.0%
  $ 208,902,158    

 

See notes to financial statements
15



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

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2008, 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 0.6% to 30.3% of total investments.

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

See notes to financial statements
16




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

FINANCIAL STATEMENTS (Unaudited)

Statements of Assets and Liabilities

As of March 31, 2008

    Insured Municipal Fund   Insured California Fund   Insured New York Fund  
Assets  
Investments —  
Identified cost   $ 1,512,728,963     $ 490,638,740     $ 358,388,772    
Unrealized depreciation     (65,723,650 )     (20,217,235 )     (8,818,740 )  
Investments, at value   $ 1,447,005,313     $ 470,421,505     $ 349,570,032    
Cash   $ 2,032,256     $ 2,957,303     $    
Receivable for investments sold     1,559,693       84,044          
Receivable from the transfer agent     246,360                
Interest receivable     17,572,155       5,476,014       4,251,718    
Prepaid expenses     30,585       14,526       15,236    
Total assets   $ 1,468,446,362     $ 478,953,392     $ 353,836,986    
Liabilities  
Payable for daily variation margin on open financial futures contracts   $     $ 109,440     $ 44,360    
Payable for open interest rate swap contracts     6,775,718       2,215,277       1,504,990    
Payable for when-issued securities     27,868,447                
Due to custodian                 617,099    
Payable to affiliate for Trustees' fees     2,700       1,129       866    
Payable to affiliate for investment adviser fee     493,981       164,023       120,919    
Accrued expenses     343,436       143,963       115,082    
Total liabilities   $ 35,484,282     $ 2,633,832     $ 2,403,316    
Auction preferred shares at liquidation value plus cumulative unpaid dividends   $ 592,688,671     $ 195,086,243     $ 142,531,512    
Net assets applicable to common shares   $ 840,273,409     $ 281,233,317     $ 208,902,158    
Sources of Net Assets  
Common shares, $0.01 par value, unlimited number of shares authorized   $ 648,169     $ 216,516     $ 157,332    
Additional paid-in capital     914,858,596       305,498,498       221,852,977    
Accumulated net realized loss (computed on the basis of identified cost)     (8,066,999 )     (1,632,979 )     (1,984,656 )  
Accumulated undistributed (distributions in excess of) net investment income     5,333,011       1,204,269       (90,736 )  
Net unrealized depreciation (computed on the basis of identified cost)     (72,499,368 )     (24,052,987 )     (11,032,759 )  
Net assets applicable to common shares   $ 840,273,409     $ 281,233,317     $ 208,902,158    
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      23,700       7,800       5,700    
Common Shares Outstanding  
      64,816,891       21,651,554       15,733,205    
Net Asset Value Per Common Share  
Net assets applicable to common shares ÷ common shares issued and outstanding   $ 12.96     $ 12.99     $ 13.28    

 

See notes to financial statements
17



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

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Operations

For the Six Months Ended March 31, 2008

    Insured Municipal Fund   Insured California Fund   Insured New York Fund  
Investment Income  
Interest   $ 37,220,196     $ 12,257,243     $ 8,881,631    
Total investment income   $ 37,220,196     $ 12,257,243     $ 8,881,631    
Expenses  
Investment adviser fee   $ 4,944,066     $ 1,634,844     $ 1,191,915    
Trustees' fees and expenses     15,020       10,251       7,855    
Legal and accounting services     39,873       27,667       27,005    
Printing and postage     63,570       16,242       13,830    
Custodian fee     279,609       109,698       109,753    
Transfer and dividend disbursing agent fees     30,420       29,553       29,137    
Preferred shares remarketing agent fee     740,625       243,750       182,030    
Miscellaneous     40,589       22,124       19,115    
Total expenses   $ 6,153,772     $ 2,094,129     $ 1,580,640    
Deduct —  
Reduction of custodian fee   $ 91,970     $ 23,067     $ 30,055    
Reduction of investment adviser fee     1,825,501       603,635       440,092    
Total expense reductions   $ 1,917,471     $ 626,702     $ 470,147    
Net expenses   $ 4,236,301     $ 1,467,427     $ 1,110,493    
Net investment income   $ 32,983,895     $ 10,789,816     $ 7,771,138    
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) —  
Investment transactions (identified cost basis)   $ 2,830,293     $ 1,216,503     $ 774,723    
Financial futures contracts     (1,367,840 )     (493,656 )     (656,300 )  
Interest rate swap contracts     (9,938,323 )     (2,703,369 )     (1,737,848 )  
Net realized loss   $ (8,475,870 )   $ (1,980,522 )   $ (1,619,425 )  
Change in unrealized appreciation (depreciation) —  
Investments (identified cost basis)   $ (107,155,564 )   $ (31,344,684 )   $ (19,755,535 )  
Financial futures contracts     (313,290 )     (1,740,324 )     (773,367 )  
Interest rate swap contracts     (7,195,171 )     (2,352,149 )     (1,588,998 )  
Net change in unrealized appreciation (depreciation)   $ (114,664,025 )   $ (35,437,157 )   $ (22,117,900 )  
Net realized and unrealized loss   $ (123,139,895 )   $ (37,417,679 )   $ (23,737,325 )  
Distributions to preferred shareholders  
From net investment income   $ (7,823,568 )   $ (1,925,573 )   $ (2,471,837 )  
From net realized gain     (3,284,630 )     (2,039,505 )        
Net decrease in net assets from operations   $ (101,264,198 )   $ (30,592,941 )   $ (18,438,024 )  

 

See notes to financial statements
18



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

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Six Months Ended March 31, 2008

Increase (Decrease) in Net Assets   Insured Municipal Fund   Insured California Fund   Insured New York Fund  
From operations —  
Net investment income   $ 32,983,895     $ 10,789,816     $ 7,771,138    
Net realized loss from investment transactions, financial futures contracts and
interest rate swap contracts
    (8,475,870 )     (1,980,522 )     (1,619,425 )  
Net change in unrealized appreciation (depreciation) from investments,
financial futures contracts and interest rate swap contracts
    (114,664,025 )     (35,437,157 )     (22,117,900 )  
Distributions to preferred shareholders —  
From net investment income     (7,823,568 )     (1,925,573 )     (2,471,837 )  
From net realized gain     (3,284,630 )     (2,039,505 )        
Net decrease in net assets from operations   $ (101,264,198 )   $ (30,592,941 )   $ (18,438,024 )  
Distributions to common shareholders —  
From net investment income   $ (24,963,045 )   $ (7,835,168 )   $ (5,550,383 )  
From net realized gain     (12,085,094 )     (4,998,907 )        
Total distributions to common shareholders   $ (37,048,139 )   $ (12,834,075 )   $ (5,550,383 )  
Capital share transactions  
Reinvestment of distributions to common shareholders   $ 1,179,689     $ 152,537     $ 266,475    
Net increase in net assets from capital share transactions   $ 1,179,689     $ 152,537     $ 266,475    
Net decrease in net assets   $ (137,132,648 )   $ (43,274,479 )   $ (23,721,932 )  
Net Assets Applicable to Common Shares  
At beginning of period   $ 977,406,057     $ 324,507,796     $ 232,624,090    
At end of period   $ 840,273,409     $ 281,233,317     $ 208,902,158    
Accumulated undistributed (distributions in excess of)
net investment income included in net assets
applicable to common shares
 
At end of period   $ 5,333,011     $ 1,204,269     $ (90,736 )  

 

See notes to financial statements
19



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

FINANCIAL STATEMENTS CONT'D

Statements of Changes in Net Assets

For the Year Ended September 30, 2007

Increase (Decrease) in Net Assets   Insured Municipal Fund   Insured California Fund   Insured New York Fund  
From operations —  
Net investment income   $ 67,924,521     $ 22,148,276     $ 15,896,503    
Net realized gain from investment transactions, financial futures contracts and
interest rate swap contracts
    14,993,694       9,180,858       2,348,730    
Net change in unrealized appreciation (depreciation) from investments,
financial futures contracts and interest rate swap contracts
    (42,103,561 )     (15,082,041 )     (7,550,401 )  
Distributions to preferred shareholders —  
From net investment income     (14,559,631 )     (6,400,688 )     (4,744,586 )  
From net realized gain     (7,288,367 )              
Net increase in net assets from operations   $ 18,966,656     $ 9,846,405     $ 5,950,246    
Distributions to common shareholders —  
From net investment income   $ (49,857,665 )   $ (15,986,232 )   $ (11,230,453 )  
From net realized gain     (21,466,335 )              
Total distributions to common shareholders   $ (71,324,000 )   $ (15,986,232 )   $ (11,230,453 )  
Capital share transactions  
Reinvestment of distributions to common shareholders   $ 1,404,598     $ 183,159     $ 240,028    
Net increase in net assets from capital share transactions   $ 1,404,598     $ 183,159     $ 240,028    
Net decrease in net assets   $ (50,952,746 )   $ (5,956,668 )   $ (5,040,179 )  
Net Assets Applicable to Common Shares  
At beginning of year   $ 1,028,358,803     $ 330,464,464     $ 237,664,269    
At end of year   $ 977,406,057     $ 324,507,796     $ 232,624,090    
Accumulated undistributed net investment income included in
net assets applicable to common shares
 
At end of year   $ 5,135,729     $ 175,194     $ 160,346    

 

See notes to financial statements
20




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

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Municipal Fund  
    Six Months Ended
March 31, 2008
  Year Ended September 30,  
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)   
Net asset value — Beginning of period (Common shares)   $ 15.100     $ 15.910     $ 15.320     $ 14.750     $ 14.670     $ 14.810    
Income (loss) from operations  
Net investment income   $ 0.509     $ 1.050     $ 1.060     $ 1.059     $ 1.084     $ 1.041    
Net realized and unrealized gain (loss)     (1.904 )     (0.419 )     0.696       0.611       0.043       0.009    
Distributions to preferred shareholders  
From net investment income     (0.121 )     (0.225 )     (0.270 )     (0.174 )     (0.109 )     (0.091 )  
From net realized gain     (0.051 )     (0.113 )     (0.014 )                    
Total income (loss) from operations   $ (1.567 )   $ 0.293     $ 1.472     $ 1.496     $ 1.018     $ 0.959    
Less distributions to common shareholders  
From net investment income   $ (0.386 )   $ (0.771 )   $ (0.813 )   $ (0.926 )   $ (0.938 )   $ (0.908 )  
From net realized gain     (0.187 )     (0.332 )     (0.069 )                    
Total distributions to common shareholders   $ (0.573 )   $ (1.103 )   $ (0.882 )   $ (0.926 )   $ (0.938 )   $ (0.908 )  
Preferred and Common shares offering costs
charged to paid-in capital
  $     $     $     $     $     $ (0.007 )  
Preferred shares underwriting discounts   $     $     $     $     $     $ (0.184 )  
Net asset value — End of period (Common shares)   $ 12.960     $ 15.100     $ 15.910     $ 15.320     $ 14.750     $ 14.670    
Market value — End of period (Common shares)   $ 13.130     $ 15.310     $ 15.220     $ 15.050     $ 13.950     $ 13.580    
Total Investment Return on Net Asset Value(2)      (10.60 )%(7)      1.87 %     10.21 %     10.70 %     7.58 %     5.67 %  
Total Investment Return on Market Value(2)      (10.64 )%(7)      7.97 %     7.32 %     14.98 %     9.91 %     (3.42 )%  

 

See notes to financial statements
21



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

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Municipal Fund  
    Six Months Ended
March 31, 2008
  Year Ended September 30,  
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)   
Ratios/Supplemental Data  
Net assets applicable to common shares, end of period (000's omitted)   $ 840,273     $ 977,406     $ 1,028,359     $ 989,850     $ 953,231     $ 947,812    
Ratios (As a percentage of average net assets applicable to common shares):(3)  
Expenses before custodian fee reduction     0.93 %(4)     0.79 %     0.79 %     0.78 %     0.77 %     0.75 %  
Expenses after custodian fee reduction     0.91 %(4)     0.78 %     0.78 %     0.77 %     0.77 %     0.73 %  
Net investment income     7.11 %(4)     6.76 %     6.91 %     6.97 %     7.41 %     7.20 %  
Portfolio Turnover     28 %     39 %     56 %     51 %     37 %     63 %  
The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:  
Ratios (As a percentage of average total net assets applicable to common shares and preferred shares):(3)  
Expenses before custodian fee reduction     0.57 %(4)     0.50 %     0.49 %     0.48 %     0.47 %     0.47 %  
Expenses after custodian fee reduction     0.56 %(4)     0.49 %     0.49 %     0.48 %     0.47 %     0.46 %  
Net investment income     4.34 %(4)     4.25 %     4.33 %     4.35 %     4.56 %     4.54 %  
Senior Securities:  
Total preferred shares outstanding     23,700       23,700       23,700       23,700       23,700       23,700    
Asset coverage per preferred share(5)   $ 60,463     $ 66,250     $ 68,397     $ 66,769     $ 65,233     $ 65,008    
Involuntary liquidation preference per preferred share(6)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(6)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Per share net investment income was 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)  Annualized.

(5)  Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding.

(6)  Plus accumulated and unpaid dividends.

(7)  Not annualized.

See notes to financial statements
22



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

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured California Fund  
    Six Months Ended
March 31, 2008
  Year Ended September 30,  
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)   
Net asset value — Beginning of period (Common shares)   $ 15.000     $ 15.280     $ 14.690     $ 14.250     $ 14.180     $ 14.760    
Income (loss) from operations  
Net investment income   $ 0.499     $ 1.024     $ 1.015     $ 1.011     $ 1.033     $ 0.993    
Net realized and unrealized gain (loss)     (1.733 )     (0.269 )     0.598       0.444       0.021       (0.402 )  
Distributions to preferred shareholders  
From net investment income     (0.089 )     (0.296 )     (0.259 )     (0.162 )     (0.084 )     (0.078 )  
From net realized gain     (0.094 )                                
Total income (loss) from operations   $ (1.417 )   $ 0.459     $ 1.354     $ 1.293     $ 0.970     $ 0.513    
Less distributions to common shareholders  
From net investment income   $ (0.362 )   $ (0.739 )   $ (0.764 )   $ (0.853 )   $ (0.900 )   $ (0.901 )  
From net realized gain     (0.231 )                                
Total distributions to common shareholders   $ (0.593 )   $ (0.739 )   $ (0.764 )   $ (0.853 )   $ (0.900 )   $ (0.901 )  
Preferred and Common shares offering costs
charged to paid-in capital
  $     $     $     $     $     $ (0.011 )  
Preferred shares underwriting discounts   $     $     $     $     $     $ (0.181 )  
Net asset value — End of period (Common shares)   $ 12.990     $ 15.000     $ 15.280     $ 14.690     $ 14.250     $ 14.180    
Market value — End of period (Common shares)   $ 13.550     $ 14.720     $ 14.840     $ 13.920     $ 13.730     $ 13.410    
Total Investment Return on Net Asset Value(2)      (9.61 )%(7)      3.10 %     9.85 %     9.58 %     7.34 %     2.58 %  
Total Investment Return on Market Value(2)      (3.92 )%(7)      4.18 %     12.58 %     7.77 %     9.36 %     (4.54 )%  

 

See notes to financial statements
23



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

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured California Fund  
    Six Months Ended
March 31, 2008
  Year Ended September 30,  
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)   
Ratios/Supplemental Data  
Net assets applicable to common shares, end of period (000's omitted)   $ 281,233     $ 324,508     $ 330,464     $ 317,785     $ 308,277     $ 306,656    
Ratios (As a percentage of average net assets applicable to common shares):(3)  
Expenses before custodian fee reduction     0.97 %(4)     0.81 %     0.85 %     0.84 %     0.83 %     0.80 %  
Expenses after custodian fee reduction     0.95 %(4)     0.81 %     0.84 %     0.83 %     0.83 %     0.77 %  
Net investment income     7.02 %(4)     6.73 %     6.85 %     6.93 %     7.23 %     7.02 %  
Portfolio Turnover     12 %     27 %     24 %     16 %     24 %     38 %  
The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:  
Ratios (As a percentage of average total net assets applicable to common shares and preferred shares):(3)  
Expenses before custodian fee reduction     0.59 %(4)     0.51 %     0.53 %     0.52 %     0.51 %     0.50 %  
Expenses after custodian fee reduction     0.58 %(4)     0.51 %     0.52 %     0.51 %     0.51 %     0.48 %  
Net investment income     4.29 %(4)     4.22 %     4.26 %     4.28 %     4.43 %     4.42 %  
Senior Securities:  
Total preferred shares outstanding     7,800       7,800       7,800       7,800       7,800       7,800    
Asset coverage per preferred share(5)   $ 61,067     $ 66,613     $ 67,375     $ 65,745     $ 64,524     $ 64,316    
Involuntary liquidation preference per preferred share(6)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    
Approximate market value per preferred share(6)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000     $ 25,000    

 

(1)  Per share net investment income was 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)  Annualized.

(5)  Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding.

(6)  Plus accumulated and unpaid dividends.

(7)  Not annualized.

See notes to financial statements
24



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

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured New York Fund  
    Six Months Ended
March 31, 2008
  Year Ended September 30,  
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)   
Net asset value — Beginning of period (Common shares)   $ 14.800     $ 15.140     $ 14.730     $ 14.390     $ 14.480     $ 14.690    
Income (loss) from operations  
Net investment income   $ 0.494     $ 1.012     $ 1.010     $ 1.002     $ 1.019     $ 0.981    
Net realized and unrealized gain (loss)     (1.504 )     (0.335 )     0.424       0.349       (0.120 )     (0.006 )(2)  
Distributions to preferred shareholders  
From net investment income     (0.157 )     (0.302 )     (0.268 )     (0.167 )     (0.089 )     (0.090 )  
Total income (loss) from operations   $ (1.167 )   $ 0.375     $ 1.166     $ 1.184     $ 0.810     $ 0.885    
Less distributions to common shareholders  
From net investment income   $ (0.353 )   $ (0.715 )   $ (0.756 )   $ (0.844 )   $ (0.900 )   $ (0.900 )  
Total distributions to common shareholders   $ (0.353 )   $ (0.715 )   $ (0.756 )   $ (0.844 )   $ (0.900 )   $ (0.900 )  
Preferred and Common shares offering costs
charged to paid-in capital
  $     $     $     $     $     $ (0.013 )  
Preferred shares underwriting discounts   $     $     $     $     $     $ (0.182 )  
Net asset value — End of period (Common shares)   $ 13.280     $ 14.800     $ 15.140     $ 14.730     $ 14.390     $ 14.480    
Market value — End of period (Common shares)   $ 13.420     $ 14.500     $ 14.650     $ 13.680     $ 13.860     $ 13.450    
Total Investment Return on Net Asset Value(3)      (7.96 )%(8)      2.59 %     8.41 %     8.77 %     6.10 %     5.09 %  
Total Investment Return on Market Value(3)      (5.05 )%(8)      3.87 %     12.95 %     4.88 %     10.02 %     (4.78 )%  

 

See notes to financial statements
25



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

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured New York Fund  
    Six Months Ended
March 31, 2008
  Year Ended September 30,  
    (Unaudited)(1)    2007(1)    2006(1)    2005(1)    2004(1)    2003(1)   
Ratios/Supplemental Data  
Net assets applicable to common shares, end of period (000's omitted)   $ 208,902     $ 232,624     $ 237,664     $ 231,161     $ 225,972     $ 227,266    
Ratios (As a percentage of average net assets applicable to common shares):(4)  
Expenses before custodian fee reduction     1.02 %(5)     0.86 %     0.88 %     0.87 %     0.86 %     0.83 %  
Expenses after custodian fee reduction     0.99 %(5)     0.85 %     0.88 %     0.86 %     0.85 %     0.79 %  
Net investment income     6.94 %(5)     6.72 %     6.86 %     6.81 %     7.11 %     6.83 %  
Portfolio Turnover     25 %     28 %     14 %     23 %     33 %     64 %  
The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:  
Ratios (As a percentage of average total net assets applicable to common shares and preferred shares):(4)  
Expenses before custodian fee reduction     0.62 %(5)     0.54 %     0.55 %     0.54 %     0.52 %     0.52 %  
Expenses after custodian fee reduction     0.61 %(5)     0.53 %     0.54 %     0.53 %     0.52 %     0.50 %  
Net investment income     4.24 %(5)     4.19 %     4.24 %     4.21 %     4.35 %     4.31 %  
Senior Securities:  
Total preferred shares outstanding     5,700       5,700       5,700       5,700       5,700       5,700    
Asset coverage per preferred share(6)   $ 61,655     $ 65,823     $ 66,705     $ 65,560     $ 64,646     $ 64,884    
Involuntary liquidation preference per preferred share(7)   $ 25,000     $ 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     $ 25,000    

 

(1)  Per share net investment income was computed using average common shares outstanding.

(2)  The per share amount is not in accord with the net realized and unrealized gain (loss) on investments for the period because of the timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time.

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

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

(5)  Annualized.

(6)  Calculated by subtracting the Fund's total liabilities (not including the preferred shares) from the Fund's total assets, and dividing this by the number of preferred shares outstanding.

(7)  Plus accumulated and unpaid dividends.

(8)  Not annualized.

See notes to financial statements
26




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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1  Significant Accounting Policies

Eaton Vance Insured Municipal Bond Fund (Insured Municipal Fund), Eaton Vance Insured California Municipal Bond Fund (Insured California Fund) and Eaton Vance Insured New York Municipal Bond Fund (Insured New York 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 spe