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

811-21148

 

Eaton Vance Insured New York Municipal Bond Fund

(Exact name of registrant as specified in charter)

 

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

 

02109

(Address of principal executive offices)

 

(Zip code)

 

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

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(617) 482-8260

 

 

Date of fiscal year end:

September 30

 

 

Date of reporting period:

March 31, 2006

 

 



 

Item 1. Reports to Stockholders

 



Semiannual Report March 31, 2006

EATON VANCE
INSURED
MUNICIPAL
BOND
FUNDS

CLOSED-END FUNDS:

Insured Municipal

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

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




 

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

 

TABLE OF CONTENTS

 

Investment Update

2

 

 

Performance Information and Portfolio Composition

 

 

 

Insured Municipal Bond Fund

3

Insured California Municipal Bond Fund

4

Insured New York Municipal Bond Fund

5

 

 

Financial Statements

15

 

 

Dividend Reinvestment Plan

30

 

 

Board of Trustees’ Annual Approval of Investment Advisory Agreements

32

 

 

Management and Organization

35

 

1



 

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

 

INVESTMENT UPDATE

 

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

 

Economic and Market Conditions

 

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

 

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

 

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

 

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

 

Management Discussion

 

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

 

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

 

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

 

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

 


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

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

Past performance is no guarantee of future results.

 

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

 

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

 

2



 

PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION

 

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

 

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

 

 

 

Six Months

 

1.69

%

One Year

 

13.95

 

Life of Fund (8/30/02)

 

7.57

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

3.96

%

One Year

 

10.22

 

Life of Fund (8/30/02)

 

8.77

 

 


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

 

Index Performance(2)

 

 

 

 

 

 

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.98

%

One Year

 

3.81

 

Life of Fund (8/31/02)

 

4.40

 

 

 

 

 

Lipper Averages(3)

 

 

 

 

 

 

 

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

 

 

 

Six Months  

 

 1.16

%

One Year

 

4.79

 

Life of Fund (8/31/02)

 

5.23

 

 

 

 

 

Market Yields

 

 

 

Market Yield(4)

 

5.41

%

Taxable Equivalent Market Yield(5)

 

8.32

 

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Fund performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

 

Portfolio Manager: Robert B. MacIntosh, CFA

 

Rating Distribution(6), (7)

 

By total investments

 

 

Fund Statistics(7)

 

• Number of Issues:

 

123

 

• Average Maturity:

 

28.3 years

 

• Effective Maturity:

 

13.0 years

 

• Average Rating:

 

AA+

 

• Average Call:

 

10.0 years

 

• Average Dollar Price:

 

$

89.90

 

• Leverage:*

 

37

%

 


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

 

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month-end only. (3) The Lipper Averages are the average total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Insured Municipal Debt Funds (Leveraged) Classification contained 26, 26 and 23 funds for the 6-month, 1-year and Life-Of-Fund time periods, respectively. Lipper Averages are available as of month-end only. (4) The Fund’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate would result in a lower tax-equivalent figure. (6) As of 3/31/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (7) Fund information may not be representative of the Fund’s current or future investments and may change due to active management.

 

3



 

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

 

 

 

 

 

 

 

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

 

 

 

Six Months

 

4.50

%

One Year

 

11.24

 

Life of Fund (8/30/02)

 

5.96

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

4.27

%

One Year

 

9.64

 

Life of Fund (8/30/02)

 

7.50

 

 


(1)

 

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

 

Index Performance(2)

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.98

%

One Year

 

3.81

 

Life of Fund (8/31/02)

 

4.40

 

 

Lipper Averages(3)

 

 

 

 

 

 

 

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

 

 

 

Six Months

 

1.55

%

One Year

 

5.53

 

Life of Fund (8/31/02)

 

5.28

 

 

 

 

 

Market Yields

 

 

 

Market Yield(4)

 

5.47

%

Taxable Equivalent Market Yield(5)

 

9.28

 

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Fund performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

 

Portfolio Manager: Cynthia J. Clemson

 

Rating Distribution(6), (7)

 

By total investments

 

 

Fund Statistics(7)

 

 

 

 

 

 

 

• Number of Issues:

 

90

 

• Average Maturity:

 

26.6 years

 

• Effective Maturity:

 

9.9 years

 

• Average Rating:

 

AAA

 

• Average Call:

 

8.1 years

 

• Average Dollar Price:

 

$

94.66

 

• Leverage:*

 

38

%

 


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

 

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month-end only. (3) The Lipper Averages are the average total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper California Insured Municipal Debt Funds Classification contained 13, 13 and 10 funds for the 6-month, 1-year and Life-Of-Fund time periods, respectively. Lipper Averages are available as of month-end only. (4) The Fund’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent figure assumes a maximum 41.05% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. (6) As of 3/31/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (7) Fund information may not be representative of the Fund’s current or future investments and may change due to active management.

 

4



 

Fund Performance as of 3/31/05(1)

 

 

 

 

 

 

 

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

 

 

 

Six Months

 

5.47

%

One Year

 

11.49

 

Life of Fund (8/30/02)

 

5.65

 

 

 

 

 

Average Annual Total Return (by net asset value)

 

 

 

Six Months

 

3.26

%

One Year

 

7.59

 

Life of Fund (8/30/02)

 

7.22

 

 


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

 

Index Performance(2)

 

 

 

 

 

 

 

Lehman Brothers Municipal Bond Index - Average Annual Total Returns

 

 

 

Six Months

 

0.98

%

One Year

 

3.81

 

Life of Fund (8/31/02)

 

4.40

 

 

 

 

 

Lipper Averages(3)

 

 

 

 

 

 

 

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

 

 

 

Six Months

 

0.85

%

One Year

 

4.65

 

Life of Fund (8/31/02)

 

5.34

 

 

 

 

 

Market Yields

 

 

 

Market Yield(4)

 

5.46

%

Taxable Equivalent Market Yield(5)

 

9.10

 

 

Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or share price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when sold, may be worth more or less than their original cost. Fund performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return.

 

Portfolio Manager: Craig R. Brandon, CFA

 

Rating Distribution(6), (7)

 

By total investments

 

 

Fund Statistics(7)

 

 

 

 

 

 

 

• Number of Issues:

 

65

 

• Average Maturity:

 

26.6 years

 

• Effective Maturity:

 

9.7 years

 

• Average Rating:

 

AAA

 

• Average Call:

 

9.0 years

 

• Average Dollar Price:

 

$

95.45

 

• Leverage:*

 

38

%

 


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

 

(2) It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month-end only. (3) The Lipper Averages are the average total returns at net asset value of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper New York Insured Municipal Debt Funds Classification contained 12, 12 and 9 funds for the 6-month, 1-year and Life-Of-Fund time periods, respectively. Lipper Averages are available as of month-end only. (4) The Fund’s market yield is calculated by dividing the last dividend per share of the semiannual period by the share price at the end of the period and annualizing the result. (5) Taxable-equivalent figure assumes a maximum 40.01% combined federal and state income tax rate. A lower tax rate would result in a lower tax-equivalent figure. (6) As of 3/31/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (7) Fund information may not be representative of the Fund’s current or future investments and may change due to active management.

 

5



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

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 159.5%      
Principal Amount
(000's omitted)
  Security   Value  
Electric Utilities — 2.5%      
$ 14,500     Long Island Power Authority, NY, Electric System Revenue,
4.50%, 12/1/24
  $ 14,256,400    
  10,300     Sabine River Authority, TX, (TXU Energy Co. LLC),
Variable Rate, 5.20%, 5/1/28
    10,549,466    
            $ 24,805,866    
General Obligations — 6.8%      
$ 12,500     California, 5.25%, 4/1/30   $ 13,044,875    
  3,750     California, 5.25%, 4/1/34     3,946,200    
  13,250     California, 5.50%, 11/1/33     14,399,437    
  19,500     New York City, NY, 5.25%, 1/15/33     20,433,270    
  15,000     Puerto Rico Public Buildings Authority, Commonwealth
Guaranteed, 5.25%, 7/1/29
    15,714,450    
            $ 67,538,232    
Hospital — 6.4%      
$ 8,000     Brevard County, FL, Health Facilities Authority,
(Health First, Inc.), 5.00%, 4/1/36
  $ 8,135,440    
  11,000     California Health Facilities Financing Authority,
(Cedars-Sinai Medical Center), 5.00%, 11/15/34
    11,163,130    
  1,225     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.00%, 2/15/25
    1,231,468    
  2,610     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.00%, 2/15/35
    2,581,916    
  2,500     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.25%, 2/15/27
    2,543,300    
  6,200     Camden County, NJ, Improvement Authority,
(Cooper Health System), 5.75%, 2/15/34
    6,498,964    
  2,600     Cuyahoga County, OH, (Cleveland Clinic Health System),
5.50%, 1/1/29
    2,755,818    
  3,900     Hawaii Department of Budget and Finance,
(Hawaii Pacific Health), 5.60%, 7/1/33
    4,035,954    
  5,525     Highlands County, FL, Health Facilities Authority,
(Adventist Health System), 5.375%, 11/15/35
    5,713,347    
  5,880     Indiana HEFA, (Clarian Health Partners), 4.75%, 2/15/34     5,697,720    
  2,625     Indiana HEFA, (Clarian Health Partners), 5.00%, 2/15/36     2,627,887    
  8,500     Lehigh County, PA, General Purpose Authority,
(Lehigh Valley Health Network), 5.25%, 7/1/32
    8,696,265    
  2,500     South Miami, FL, Health Facility Authority, (Baptist Health),
5.25%, 11/15/33
    2,580,150    
            $ 64,261,359    
Insured-Electric Utilities — 16.5%      
$ 13,000     Burlington, KS, PCR, (Kansas Gas & Electric Co.), (MBIA),
5.30%, 6/1/31
  $ 13,804,700    
  21,355     Chelan County, WA, Public Utility District No. 1,
(Columbia River), (MBIA), 0.00%, 6/1/27
    7,782,830    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Electric Utilities (continued)      
$ 4,975     Hamilton, OH, Electric, (FSA), 4.70%, 10/15/25   $ 5,038,182    
  9,000     Jacksonville Electric Authority, FL, Electric System Revenue,
(FSA), 4.75%, 10/1/34
    9,071,730    
  19,045     Lincoln NE, Electric System, (FSA), 4.75%, 9/1/35     19,137,749    
  2,625     Municipal Energy Agency, NE, (Power Supply System),
(FSA), 5.00%, 4/1/36
    2,708,632    
  18,240     Nebraska, NE, Public Power District, (FGIC),
4.75%, 1/1/35
    18,416,016    
  22,150     Omaha Public, NE, Power District, (FGIC), 4.25%, 2/1/35     20,659,748    
  60,755     South Carolina Public Service Authority, (FSA),
5.125%, 1/1/37
    62,656,024    
  10,650     Southern Minnesota Municipal Power Agency, (MBIA),
0.00%, 1/1/22
    5,219,245    
            $ 164,494,856    
Insured-General Obligations — 23.5%      
$ 3,975     Alvin, TX, Independent School District, (MBIA),
3.25%, 2/15/27
  $ 3,183,975    
  60,000     California, (XLCA), 5.00%, 10/1/28     61,930,200    
  15,530     Chicago, IL, Board of Education, (Chicago School Reform),
(FGIC), 0.00%, 12/1/30
    4,854,833    
  41,300     Chicago, IL, Board of Education, (Chicago School Reform),
(FGIC), 0.00%, 12/1/21
    20,130,446    
  10,000     Chicago, IL, Board of Education, (FGIC), 0.00%, 12/1/31     2,952,400    
  10,500     Chicago, IL, Board of Education, (FGIC), 0.00%, 12/1/29     3,401,370    
  4,920     Clarkston, MI, Community Schools, (MBIA), 4.00%, 5/1/26     4,502,292    
  3,875     Clarkston, MI, Community Schools, (MBIA), 4.00%, 5/1/29     3,493,739    
  11,190     Frisco, TX, Independent School District, (MBIA),
4.00%, 7/15/36
    9,727,467    
  13,180     Georgia, (MBIA), 2.00%, 9/1/24     8,999,304    
  20,425     Kane, Cook and Du Page Counties, IL, School District No. 46,
(AMBAC), 0.00%, 1/1/21
    10,293,587    
  50,650     Kane, Cook and Du Page Counties, IL, School District No. 46,
(AMBAC), 0.00%, 1/1/22
    24,330,234    
  13,000     Philadelphia, PA, School District, (FGIC), 5.25%, 6/1/34     13,736,710    
  8,525     Phoenix, AZ, (AMBAC), 3.00%, 7/1/28     6,589,399    
  2,700     Pima County, AZ, (FSA), 3.50%, 7/1/19     2,454,030    
  20,750     Schaumburg, IL, (FGIC), 5.00%, 12/1/38     21,284,313    
  21,300     Washington, (Motor Vehicle Fuel), (MBIA), 0.00%, 6/1/25     8,645,670    
  21,125     Washington, (Motor Vehicle Fuel), (MBIA), 0.00%, 6/1/26     8,164,601    
  21,070     Washington, (Motor Vehicle Fuel), (MBIA), 0.00%, 6/1/27     7,736,272    
  21,510     Washington, (Motor Vehicle Fuel), (MBIA), 0.00%, 6/1/28     7,516,454    
            $ 233,927,296    
Insured-Hospital — 1.0%      
$ 11,190     Connecticut Health and Educational Facilities Authority,
(Danbury Hospital), (AMBAC), 4.25%, 7/1/36
  $ 10,396,070    
            $ 10,396,070    

 

See notes to financial statements

6



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

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Lease Revenue / Certificates of
Participation — 5.6%
     
$ 12,010     Anaheim, CA, Public Financing Authority Lease Revenue,
(FSA), 5.00%, 3/1/37
  $ 12,193,153    
  42,795     San Jose, CA, Financing Authority, (Civic Center), (AMBAC),
5.00%, 6/1/37
    43,882,421    
            $ 56,075,574    
Insured-Other Revenue — 3.3%      
$ 28,675     Golden State Tobacco Securitization Corp., CA, (AGC),
5.00%, 6/1/45
  $ 29,254,235    
  4,000     Golden State Tobacco Securitization Corp., CA, (FGIC),
5.00%, 6/1/38
    4,110,800    
            $ 33,365,035    
Insured-Private Education — 1.1%      
$ 10,000     Massachusetts Development Finance Agency,
(Franklin W. Olin College), (XLCA), 5.25%, 7/1/33
  $ 10,499,900    
            $ 10,499,900    
Insured-Public Education — 5.7%      
$ 9,610     New Jersey Educational Facilities Authority,
(Kean University), (MBIA), 4.50%, 7/1/37
  $ 9,273,266    
  14,215     University of California, (FGIC), 4.75%, 5/15/37     14,300,006    
  7,700     University of California, (MBIA), 4.75%, 5/15/37     7,746,046    
  12,500     University of Massachusetts Building Authority, (AMBAC),
5.25%, 11/1/29
    13,349,000    
  13,470     University of Vermont and State Agricultural College, (MBIA),
4.00%, 10/1/35
    11,969,442    
            $ 56,637,760    
Insured-Sewer Revenue — 3.7%      
$ 13,670     Chicago, IL, Wastewater Transmission, (MBIA),
0.00%, 1/1/23
  $ 6,257,579    
  11,075     King County, WA, Sewer Revenue, (FGIC), 4.50%, 1/1/31     10,760,138    
  19,000     King County, WA, Sewer Revenue, (FGIC), 5.00%, 1/1/31     19,451,060    
            $ 36,468,777    
Insured-Special Tax Revenue — 6.6%      
$ 10,000     Grand Forks, ND, Sales Tax Revenue, (Alerus Project),
(MBIA), 4.50%, 12/15/29
  $ 9,834,700    
  18,980     Houston, TX, Hotel Occupancy Tax, (AMBAC),
0.00%, 9/1/24
    8,009,370    
  10,000     Metropolitan Transportation Authority, NY, Dedicated
Tax Fund, (MBIA), 5.00%, 11/15/30
    10,326,500    
  17,200     New York Convention Center Development Corp., (AMBAC),
4.75%, 11/15/45
    17,213,588    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Special Tax Revenue (continued)      
$ 6,000     Phoenix, AZ, Civic Improvement Corp., (Civic Plaza
Expansion Project), (FGIC), 4.25%, 7/1/30
  $ 5,632,020    
  4,000     Puerto Rico Convention Center District Authority, Hotel
Occupancy, (CIFG), 4.50%, 7/1/36
    3,906,000    
  10,500     Reno, NV, Sales and Room Tax, (AMBAC), 5.125%, 6/1/37     10,815,105    
            $ 65,737,283    
Insured-Transportation — 43.4%      
$ 15,600     California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/33
  $ 16,120,728    
  6,000     Central, TX, Regional Mobility Authority, (FGIC),
5.00%, 1/1/45
    6,121,020    
  10,000     E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/24
    4,219,900    
  17,000     E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/25
    6,819,720    
  10,200     E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/21
    4,998,816    
  20,000     E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/24
    8,409,600    
  5,240     Florida Department of Transportation, (Turnpike Revenue),
(FSA), 4.50%, 7/1/34
    5,132,894    
  20,450     Massachusetts Bay Transportation Authority, Revenue
Assessment, (MBIA), 4.00%, 7/1/33
    18,138,332    
  34,915     Massachusetts Turnpike Authority, Metropolitan Highway
System, (AMBAC), 5.00%, 1/1/39
    35,316,523    
  8,985     Massachusetts Turnpike Authority, Metropolitan Highway
System, (MBIA), 5.125%, 1/1/37
    9,221,665    
  20,000     Nevada Department of Business and Industry, (Las Vegas
Monorail -1st Tier), (AMBAC), 5.375%, 1/1/40
    20,820,200    
  10,070     Nevada Department of Business and Industry, (Las Vegas
Monorail), (AMBAC), 0.00%, 1/1/23
    4,560,099    
  3,100     Nevada Department of Business and Industry, (Las Vegas
Monorail), (AMBAC), 0.00%, 1/1/28
    1,090,890    
  16,200     New York Thruway Authority, (FSA), 4.75%, 1/1/30     16,435,224    
  13,700     Newark, NJ, Housing Authority, (Newark Marine Terminal),
(MBIA), 5.00%, 1/1/37
    14,156,621    
  6,500     North Texas Tollway Authority, (FSA), 4.50%, 1/1/38     6,219,135    
  24,665     Northwest Parkway Public Highway Authority, CO, (FSA),
5.25%, 6/15/41
    25,794,164    
  3,170     Pima County, AZ, (MBIA), 3.50%, 7/1/19     2,881,213    
  15,795     Puerto Rico Highway and Transportation Authority, (CIFG),
5.25%, 7/1/41
    17,472,903    
  75,000     San Joaquin Hills, CA, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/31
    22,975,500    
  45,020     San Joaquin Hills, CA, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/26
    17,691,960    
  119,000     San Joaquin Hills, CA, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/34
    31,249,400    
  87,045     San Joaquin Hills, CA, Transportation Corridor Agency,
(Toll Road Bonds), (MBIA), 0.00%, 1/15/25
    35,833,815    

 

See notes to financial statements

7



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

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Transportation (continued)      
$ 4,820     South Jersey, NJ, Transportation Authority, (FGIC),
4.50%, 11/1/35
  $ 4,700,464    
  10,410     Tampa-Hillsborough County, FL, Expressway Authority,
(AMBAC), 4.00%, 7/1/34
    9,276,351    
  40,165     Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/20     20,716,705    
  64,900     Texas Turnpike Authority, (AMBAC), 5.00%, 8/15/42     66,125,961    
            $ 432,499,803    
Insured-Utilities — 7.9%      
$ 5,000     Illinois Development Finance Authority, (Peoples Gas,
Light and Coke), (AMBAC), 5.00%, 2/1/33
  $ 5,123,200    
  61,585     Los Angeles, CA, Department of Water and Power, (FGIC),
5.00%, 7/1/43
    63,181,283    
  10,000     West Palm Beach, FL, Utility System, (FGIC),
5.00%, 10/1/34
    10,376,400    
            $ 78,680,883    
Insured-Water and Sewer — 10.1%      
$ 25,885     Atlanta, GA, Water and Wastewater, (MBIA),
5.00%, 11/1/39(1)
  $ 26,476,213    
  20,935     Birmingham, AL, Waterworks and Sewer Board, (MBIA),
5.00%, 1/1/37
    21,543,162    
  8,675     New York City, NY, Municipal Water Finance Authority,
(Water and Sewer System), (AMBAC), 4.50%, 6/15/29
    8,569,772    
  875     New York City, NY, Municipal Water Finance Authority,
(Water and Sewer System), (FSA), 4.50%, 6/15/29
    864,386    
  8,500     New York City, NY, Municipal Water Finance Authority,
(Water and Sewer System), (MBIA), 5.125%, 6/15/34
    8,799,200    
  25,000     New York, NY, City Municipal Water Finance Authority,
Water and Sewer, (AMBAC), 4.50%, 6/15/36
    24,333,750    
  9,500     Palm Coast, FL, Utility System, (MBIA), 5.00%, 10/1/33     9,808,655    
            $ 100,395,138    
Insured-Water Revenue — 6.2%      
$ 8,930     Albany, OR, Water, (FGIC), 5.00%, 8/1/33   $ 9,225,404    
  3,250     Baltimore, MD, (Water Projects), (FGIC), 5.125%, 7/1/42     3,365,440    
  1,000     Detroit, MI, Water Supply System, (FGIC), 4.50%, 7/1/31     972,710    
  41,195     Massachusetts Water Resource Authority, (AMBAC),
4.00%, 8/1/40
    35,643,150    
  5,000     Metropolitan Water District, CA, (FGIC), 5.00%, 10/1/33     5,175,350    
  6,000     Metropolitan Water District, CA, (FGIC), 5.00%, 10/1/36     6,206,580    
  700     Metropolitan Water District, CA, (MBIA), 5.00%, 7/1/37     712,509    
            $ 61,301,143    
Other Revenue — 3.9%      
$ 38,175     Golden State Tobacco Securitization Corp., CA,
5.00%, 6/1/45
  $ 38,832,374    
            $ 38,832,374    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Private Education — 0.3%      
$ 3,100     Maryland Health and Higher Educational Facilities Authority,
(Loyola University), 5.125%, 10/1/45
  $ 3,180,197    
            $ 3,180,197    
Special Tax Revenue — 1.5%      
$ 4,600     New Jersey EDA, (Cigarette Tax), 5.50%, 6/15/24   $ 4,769,418    
  1,750     New Jersey EDA, (Cigarette Tax), 5.50%, 6/15/31     1,800,453    
  2,405     New Jersey EDA, (Cigarette Tax), 5.75%, 6/15/29     2,532,441    
  5,110     New Jersey EDA, (Cigarette Tax), 5.75%, 6/15/34     5,363,201    
            $ 14,465,513    
Transportation — 2.0%      
$ 20,000     Puerto Rico Highway and Transportation Authority,
5.125%, 7/1/43
  $ 20,353,800    
            $ 20,353,800    
Water and Sewer — 1.5%      
$ 15,000     New York, NY, City Municipal Water Finance Authority,
Water and Sewer, 4.75%, 6/15/33
  $ 15,101,550    
            $ 15,101,550    
    Total Tax-Exempt Investments — 159.5%
(identified cost $1,526,400,897)
  $ 1,589,018,409    
  Other Assets, Less Liabilities — (0.0)%         $ (311,089 )  
  Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (59.5)%
        $ (592,575,865 )  
  Net Assets Applicable to
Common Shares — 100.0%
        $ 996,131,455    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

CIFG - CDC IXIS Financial Guaranty North America, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

XLCA - XL Capital Assurance, Inc.

The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2006, 84.4% 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 1.3% to 24.7% 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

8



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

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 158.6%      
Principal Amount
(000's omitted)
  Security   Value  
Escrowed / Prerefunded — 0.5%      
$ 5,110     Foothill/Eastern, Transportation Corridor Agency,
Escrowed to Maturity, 0.00%, 1/1/30
  $ 1,683,541    
            $ 1,683,541    
General Obligations — 9.7%      
$ 10,000     California, 4.75%, 6/1/35   $ 9,960,200    
  6,750     California, 5.25%, 4/1/30     7,044,233    
  3,250     California, 5.25%, 4/1/34     3,420,040    
  9,975     California, 5.50%, 11/1/33     10,840,331    
            $ 31,264,804    
Hospital — 9.2%      
$ 2,000     California Health Facilities Financing Authority,
(Catholic Healthcare West), 5.25%, 7/1/23
  $ 2,097,360    
  5,575     California Health Facilities Financing Authority,
(Cedars-Sinai Medical Center), 5.00%, 11/15/34
    5,657,677    
  10,900     California Statewide Communities Development Authority,
(Huntington Memorial Hospital), 5.00%, 7/1/35
    11,113,531    
  4,000     Torrance Hospital, (Torrance Memorial Medical Center),
5.50%, 6/1/31
    4,174,760    
  3,360     Turlock, (Emanuel Medical Center, Inc.),
5.375%, 10/15/34
    3,450,149    
  3,005     Washington Township Health Care District, 5.25%, 7/1/29     3,083,100    
            $ 29,576,577    
Insured-Electric Utilities — 3.0%      
$ 4,000     Sacramento, Municipal Electric Utility District, (FSA),
5.00%, 8/15/28
  $ 4,124,040    
  5,380     Sacramento, Municipal Electric Utility District, (MBIA),
5.00%, 8/15/28
    5,561,521    
            $ 9,685,561    
Insured-Escrowed / Prerefunded — 1.2%      
$ 7,540     Foothill/Eastern, Transportation Corridor Agency, (FSA),
Escrowed to Maturity, 0.00%, 1/1/21
  $ 3,877,445    
            $ 3,877,445    
Insured-General Obligations — 27.7%      
$ 2,840     Azusa Unified School District, (FSA), 0.00%, 7/1/25   $ 1,145,883    
  3,290     Azusa Unified School District, (FSA), 0.00%, 7/1/27     1,203,745    
  6,030     Burbank Unified School District, (FGIC), 0.00%, 8/1/21     2,957,715    
  1,835     Buttonwillow Union School District, (Election of 2002),
(AMBAC), 5.50%, 11/1/27
    2,161,190    
  2,180     Ceres Unified School District, (FGIC), 0.00%, 8/1/25     877,951    
  3,000     Chino Valley Unified School District, (FSA), 5.00%, 8/1/26     3,114,450    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-General Obligations (continued)      
$ 6,555     Foothill-De Anza Community College District,
(Election of 1999), (FGIC), 0.00%, 8/1/28
  $ 2,277,469    
  8,500     Foothill-De Anza Community College District,
(Election of 1999), (FGIC), 0.00%, 8/1/29
    2,803,895    
  8,865     Foothill-De Anza Community College District,
(Election of 1999), (FGIC), 0.00%, 8/1/30
    2,781,926    
  2,300     Huntington Beach City School District, (Election of 2004),
(MBIA), 4.50%, 8/1/29
    2,270,744    
  1,835     Huntington Beach City School District, (FGIC),
0.00%, 8/1/24
    776,003    
  2,060     Huntington Beach City School District, (FGIC),
0.00%, 8/1/25
    829,624    
  2,140     Huntington Beach City School District, (FGIC),
0.00%, 8/1/26
    822,231    
  2,000     Jurupa Unified School District, (FGIC), 0.00%, 8/1/23     889,740    
  2,000     Jurupa Unified School District, (FGIC), 0.00%, 8/1/26     768,440    
  2,235     Kings Canyon Joint Unified School District, (FGIC),
0.00%, 8/1/25
    897,397    
  10,000     Los Angeles Unified School District, (Election of 1997),
(MBIA), 5.125%, 1/1/27
    10,474,600    
  2,000     Los Angeles Unified School District, (FGIC), 5.00%, 7/1/22     2,106,560    
  3,225     Modesto High School District, Stanislaus County, (FGIC),
0.00%, 8/1/24
    1,364,530    
  5,000     Riverside Unified School District, (FGIC), 5.00%, 2/1/27     5,176,600    
  6,135     Salinas Union High School District, (MBIA), 5.00%, 6/1/27     6,360,707    
  10,000     San Diego Unified School District, (FGIC), 0.00%, 7/1/22     4,693,100    
  10,000     San Diego Unified School District, (FGIC), 0.00%, 7/1/23     4,457,000    
  8,000     San Juan Unified School District, (FSA), 0.00%, 8/1/21     3,924,000    
  5,000     San Mateo County Community College District, (FGIC),
0.00%, 9/1/22
    2,328,750    
  4,365     San Mateo County Community College District, (FGIC),
0.00%, 9/1/23
    1,931,643    
  3,955     San Mateo County Community College District, (FGIC),
0.00%, 9/1/25
    1,585,678    
  5,240     San Mateo Union High School District, (FGIC),
0.00%, 9/1/21
    2,560,316    
  2,740     Santa Ana Unified School District, (MBIA), 5.00%, 8/1/32     2,831,845    
  2,500     Santa Barbara High School District, (Election of 2000),
(FSA), 4.50%, 8/1/25
    2,488,675    
  5,915     Santa Clara Unified School District, (Election of 2004),
(FSA), 4.375%, 7/1/30
    5,704,604    
  3,825     Union Elementary School District, (FGIC), 0.00%, 9/1/24     1,611,205    
  3,000     Ventura County Community College District, (MBIA),
5.00%, 8/1/27
    3,112,560    
            $ 89,290,776    
Insured-Hospital — 6.6%      
$ 20,860     California Health Facilities Financing Authority,
(Sutter Health), (MBIA), 5.00%, 8/15/38
  $ 21,306,821    
            $ 21,306,821    

 

See notes to financial statements

9



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

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Lease Revenue / Certificates of
Participation — 21.3%
     
$ 2,000     Anaheim, Public Financing Authority Lease Revenue,
(FSA), 0.00%, 9/1/30
  $ 625,740    
  5,000     Anaheim, Public Financing Authority Lease Revenue,
(FSA), 0.00%, 9/1/35
    1,216,900    
  8,545     Anaheim, Public Financing Authority Lease Revenue,
(FSA), 0.00%, 9/1/29
    2,810,194    
  30,000     Anaheim, Public Financing Authority Lease Revenue,
(FSA), 5.00%, 3/1/37
    30,457,500    
  12,265     California Public Works Board Lease Revenue,
(California Community College), (FGIC), 4.00%, 10/1/30
    11,114,788    
  1,000     California Public Works Board Lease Revenue, (Department
of General Services), (AMBAC), 5.00%, 12/1/27
    1,032,240    
  15,000     San Jose Financing Authority, (Civic Center), (AMBAC),
5.00%, 6/1/37
    15,381,150    
  5,850     Shasta Joint Powers Financing Authority, (County
Administration Building), (MBIA), 5.00%, 4/1/29
    6,047,028    
            $ 68,685,540    
Insured-Other Revenue — 4.7%      
$ 11,900     Golden Tobacco Securitization Corp., (AGC),
5.00%, 6/1/45
  $ 12,140,380    
  3,000     Golden Tobacco Securitization Corp., (FGIC),
5.00%, 6/1/38
    3,083,100    
            $ 15,223,480    
Insured-Private Education — 0.5%      
$ 1,560     California Educational Facilities Authority, (St. Mary's College
of California), (MBIA), 5.125%, 10/1/26
  $ 1,637,173    
            $ 1,637,173    
Insured-Public Education — 9.8%      
$ 1,000     California State University, (AMBAC), 5.125%, 11/1/26   $ 1,042,460    
  15,000     University of California, (FGIC), 4.75%, 5/15/37     15,089,700    
  15,000     University of California, (FGIC), 5.125%, 9/1/30     15,472,650    
            $ 31,604,810    
Insured-Sewer Revenue — 5.9%      
$ 18,350     Livermore-Amador Valley Water Management Agency,
(AMBAC), 5.00%, 8/1/31
  $ 18,836,459    
            $ 18,836,459    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Special Assessment Revenue — 7.4%      
$ 1,800     Murrieta Redevelopment Agency Tax, (MBIA),
5.00%, 8/1/32
  $ 1,862,244    
  7,000     Pomona Public Financing Authority, (MBIA),
5.00%, 2/1/33
    7,148,540    
  11,110     Santa Cruz County Redevelopment Agency Tax, (MBIA),
5.00%, 9/1/35
    11,571,176    
  3,000     Tustin Unified School District, (FSA), 5.00%, 9/1/38     3,075,120    
            $ 23,657,080    
Insured-Special Tax Revenue — 8.0%      
$ 2,500     North City, School Facility Financing Authority, (AMBAC),
0.00%, 9/1/26
  $ 945,425    
  13,630     San Francisco, Bay Area Rapid Transportation District Sales
Tax Revenue, (AMBAC), 5.00%, 7/1/31
    13,986,288    
  3,500     San Francisco, Bay Area Rapid Transportation District,
(AMBAC), 5.00%, 7/1/26
    3,616,130    
  7,000     San Francisco, Bay Area Rapid Transportation District,
(AMBAC), 5.125%, 7/1/36
    7,223,510    
            $ 25,771,353    
Insured-Transportation — 16.1%      
$ 15,150     California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/33
  $ 15,655,707    
  7,250     California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/36
    7,492,005    
  1,000     California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (FGIC), 5.00%, 7/1/29
    1,037,150    
  5,000     Los Angeles County, Metropolitan Transportation Authority,
(AMBAC), 4.50%, 7/1/32
    4,890,350    
  13,940     Sacramento County, Airport System, (FSA), 5.00%, 7/1/27     14,364,891    
  3,445     San Joaquin Hills, Transportation Corridor Agency, (MBIA),
0.00%, 1/15/30
    1,107,946    
  5,000     San Joaquin Hills, Transportation Corridor Agency, (MBIA),
0.00%, 1/15/31
    1,531,700    
  15,000     San Joaquin Hills, Transportation Corridor Agency, (MBIA),
0.00%, 1/15/26
    5,894,700    
            $ 51,974,449    
Insured-Utilities — 7.6%      
$ 9,000     Los Angeles Department of Water and Power, (FGIC),
5.00%, 7/1/43
  $ 9,233,280    
  14,750     Los Angeles Department of Water and Power, (MBIA),
5.125%, 7/1/41
    15,143,825    
            $ 24,377,105    

 

See notes to financial statements

10



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

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Water Revenue — 11.8%      
$ 8,180     California Water Resource, (Central Valley), (FGIC),
5.00%, 12/1/29(1)
  $ 8,462,783    
  1,250     Contra Costa Water District, (FSA), 4.50%, 10/1/27     1,238,950    
  5,500     Contra Costa Water District, (FSA), 4.50%, 10/1/31     5,397,700    
  2,000     East Bay Municipal Utility District Water System, (MBIA),
5.00%, 6/1/26
    2,066,180    
  10,000     Metropolitan Water District, (FGIC), 5.00%, 10/1/36     10,344,300    
  1,750     San Diego, (Water Utility Fund), (FGIC), 4.75%, 8/1/28     1,758,138    
  9,355     San Francisco City and County Water Revenue, (FSA),
4.25%, 11/1/33
    8,766,758    
            $ 38,034,809    
Lease Revenue / Certificates of Participation — 0.9%      
$ 2,570     Sacramento Financing Authority, 5.40%, 11/1/20   $ 2,788,861    
            $ 2,788,861    
Water Revenue — 6.7%      
$ 21,180     Southern California Metropolitan Water District,
5.00%, 7/1/37
  $ 21,536,671    
            $ 21,536,671    
  Total Tax-Exempt Investments — 158.6%
(identified cost $492,925,282)
        $ 510,813,315    
  Other Assets, Less Liabilities — 1.9%         $ 6,195,126    
  Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (60.5)%
        $ (195,030,464 )  
  Net Assets Applicable to
Common Shares — 100.0%
        $ 321,977,977    

 

AGC - Assured Guaranty Corp.

AMBAC - AMBAC Financial Group, Inc.

FGIC - Financial Guaranty Insurance Company

FSA - Financial Security Assurance, Inc.

MBIA - Municipal Bond Insurance Association

The Fund invests primarily in debt securities issued by 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, 2006, 83.0% 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 2.4% to 23.5% 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

11



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

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 159.4%      
Principal Amount
(000's omitted)
 
Security
 
Value
 
Electric Utilities — 2.9%      
$ 3,750     Long Island Power Authority Electric System Revenue,
4.50%, 12/1/24
  $ 3,687,000    
  1,950     Long Island Power Authority Electric System Revenue,
5.00%, 9/1/27
    2,004,015    
  1,000     Puerto Rico Electric Power Authority, 5.25%, 7/1/31     1,040,240    
          $ 6,731,255    
General Obligations — 4.6%      
$ 1,500     New York, 5.25%, 1/15/28   $ 1,574,475    
  3,500     New York City, 5.25%, 8/15/26     3,712,590    
  3,075     New York City, 5.25%, 6/1/27     3,220,540    
  2,000     New York City, 5.25%, 1/15/33     2,095,720    
          $ 10,603,325    
Hospital — 1.0%      
$ 640     New York Dormitory Authority Revenue, (Lenox Hill Hospital),
5.50%, 7/1/30
  $ 634,438    
  1,750     New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), 5.00%, 7/1/34
    1,794,782    
          $ 2,429,220    
Housing — 0.5%      
$ 1,250     New York City Housing Development Corp., (Multi-Family
Housing), 4.65%, 5/1/26
  $ 1,256,675    
          $ 1,256,675    
Industrial Development Revenue — 2.9%      
$ 6,800     New York City Industrial Development Agency,
(Liberty-IAC/Interactive Corp.), 5.00%, 9/1/35
  $ 6,850,524    
          $ 6,850,524    
Insured-Electric Utilities — 4.1%      
$ 7,500     Long Island Power Authority, (AMBAC), 5.00%, 9/1/34   $ 7,774,950    
  4,785     Long Island Power Authority, (FSA), 0.00%, 6/1/28     1,765,091    
          $ 9,540,041    
Insured-General Obligations — 2.9%      
$ 1,750     New York Dormitory Authority, (School Districts Financing
Program), (MBIA), 5.00%, 10/1/30
  $ 1,806,297    
  2,700     Sachem Central School District, Holbrook, (MBIA),
5.00%, 10/15/26
    2,814,372    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-General Obligations (continued)      
$ 2,085     Sachem Central School District, Holbrook, (MBIA),
5.00%, 10/15/28
  $ 2,170,589    
          $ 6,791,258    
Insured-Health Care Miscellaneous — 0.8%      
$ 1,900     New York City Industrial Development Agency,
(American National Red Cross), (AMBAC),
4.50%, 2/1/30
  $ 1,857,763    
            $ 1,857,763    
Insured-Hospital — 22.6%      
$ 15,500     New York City Health and Hospital Corp., (Health Systems),
(AMBAC), 5.00%, 2/15/23
  $ 16,147,280    
  10,000     New York Dormitory Authority, (Hospital Surgery),
(MBIA), 5.00%, 2/1/38
    10,175,400    
  6,800     New York Dormitory Authority, (Maimonides Medical Center),
(MBIA), 5.00%, 8/1/33
    7,050,444    
  3,050     New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), (MBIA), 0.00%, 7/1/26
    1,233,725    
  23,835     New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), (MBIA), 0.00%, 7/1/28
    8,710,024    
  26,070     New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), (MBIA), 0.00%, 7/1/29
    9,066,103    
            $ 52,382,976    
Insured-Other Revenue — 3.3%      
$ 5,535     New York City Cultural Resource, (American Museum of
Natural History), (MBIA), 5.00%, 7/1/44
  $ 5,697,452    
  2,000     New York City Cultural Resource, (Wildlife Conservation
Society), (FGIC), 5.00%, 2/1/34
    2,072,360    
            $ 7,769,812    
Insured-Private Education — 27.4%      
$ 4,000     Madison County, IDA, (Colgate University), (MBIA),
5.00%, 7/1/39
  $ 4,132,960    
  16,500     New York City Industrial Development Agency,
(New York University), (AMBAC), 5.00%, 7/1/41
    16,830,495    
  11,500     New York Dormitory Authority, (Brooklyn Law School),
(XLCA), 5.125%, 7/1/30
    11,972,075    
  2,225     New York Dormitory Authority, (FIT Student Housing Corp.),
(FGIC), 5.125%, 7/1/26
    2,342,525    
  4,250     New York Dormitory Authority, (New York University),
(AMBAC), 5.00%, 7/1/31
    4,361,095    
  5,000     New York Dormitory Authority, (New York University),
(AMBAC), 5.00%, 7/1/41
    5,100,150    

 

See notes to financial statements

12



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

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Private Education (continued)      
$ 3,000     New York Dormitory Authority, (New York University),
(AMBAC), 5.50%, 7/1/40
  $ 3,536,010    
  13,585     New York Dormitory Authority, (Rochester Institute of
Technology), (AMBAC), 5.25%, 7/1/32
    14,214,393    
  1,220     New York Dormitory Authority, (Rockefeller University),
(MBIA), 4.75%, 7/1/37
    1,227,613    
          $ 63,717,316    
Insured-Public Education — 4.6%      
$ 1,000     New York Dormitory Authority, (Educational Housing
Services), (AMBAC), 5.25%, 7/1/25
  $ 1,104,710    
  9,500     New York Dormitory Authority, (University Educational
Facility), (MBIA), 4.75%, 5/15/25
    9,553,770    
            $ 10,658,480    
Insured-Solid Waste — 1.9%      
$ 1,790     Ulster County Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/21
  $ 929,744    
  1,240     Ulster County Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/22
    616,404    
  1,090     Ulster County Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/23
    516,845    
  1,490     Ulster County Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/24
    673,659    
  3,735     Ulster County Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/25
    1,609,524    
          $ 4,346,176    
Insured-Special Tax Revenue — 18.4%      
$ 15,560     Metropolitan Transportation Authority, Petroleum Tax Fund,
(FSA), 5.00%, 11/15/32(1)
  $ 16,049,984    
  7,250     New York City Transitional Finance Authority, (Future Tax),
(MBIA), 5.00%, 5/1/31
    7,481,420    
  4,000     New York Convention Center Development Corp.,
(AMBAC), 4.75%, 11/15/45
    4,003,160    
  3,000     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/36
    710,670    
  7,960     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/28
    2,802,000    
  4,430     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/37
    998,478    
  35,000     Puerto Rico Infrastructure Financing Authority, (AMBAC),
0.00%, 7/1/44
    5,527,200    
  18,305     Puerto Rico Infrastructure Financing Authority, (FGIC),
0.00%, 7/1/33
    5,075,793    
          $ 42,648,705    

 

Principal Amount
(000's omitted)
 
Security
 
Value
 
Insured-Transportation — 30.6%      
$ 32,500     Metropolitan Transportation Authority, (FSA),
5.00%, 11/15/30
  $ 33,708,350    
  11,500     Puerto Rico Highway and Transportation Authority, (MBIA),
5.00%, 7/1/33
    11,912,735    
  24,600     Triborough Bridge and Tunnel Authority, (MBIA),
5.00%, 11/15/32
    25,374,654    
            $ 70,995,739    
Insured-Water and Sewer — 10.9%      
$ 7,000     New York City Municipal Water Finance Authority,
(AMBAC), 5.00%, 6/15/38
  $ 7,206,360    
  10,000     New York City Municipal Water Finance Authority,
Water and Sewer, (MBIA), 5.125%, 6/15/34
    10,352,000    
  7,500     Niagara Falls Public Water Authority and Sewer System,
(MBIA), 5.00%, 7/15/34
    7,743,975    
            $ 25,302,335    
Insured-Water Revenue — 3.0%      
$ 2,410     New York State Environmental Facilities Corp. (MBIA),
4.25%, 6/15/30
  $ 2,299,333    
  4,900     New York State Environmental Facilities Corp., (MBIA),
4.25%, 6/15/31
    4,655,882    
            $ 6,955,215    
Lease Revenue / Certificates of Participation — 6.2%      
$ 4,000     Metropolitan Transportation Authority, Lease Contract,
5.125%, 1/1/29
  $ 4,188,720    
  10,000     New York Dormitory Authority, (North General Hospital),
5.00%, 2/15/25
    10,307,100    
            $ 14,495,820    
Private Education — 2.6%      
$ 1,055     Hempstead Industrial Development Agency, (Adelphi
University), 4.50%, 10/1/24
  $ 1,033,584    
  150     Hempstead Industrial Development Agency, (Adelphi
University), 5.00%, 10/1/35
    153,474    
  1,630     Madison County Industrial Development Agency,
(Colgate University), 5.00%, 7/1/33
    1,675,265    
  3,065     Rensselaer County Industrial Development Agency,
(Rensselaer Polytech Institute), 5.125%, 8/1/27
    3,148,491    
            $ 6,010,814    
Transportation — 8.2%      
$ 14,500     Port Authority of New York and New Jersey,
5.00%, 9/1/38
  $ 14,955,445    

 

See notes to financial statements

13



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

PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D

Principal Amount
(000's omitted)
 
Security
 
Value
 
Transportation (continued)  
$ 3,990     Puerto Rico Highway and Transportation Authority,
5.125%, 7/1/43
  $ 4,060,583    
        $ 19,016,028    
Total Tax-Exempt Investments — 159.4%
(identified cost $356,273,398)
      $ 370,359,477    
Other Assets, Less Liabilities — 1.9%       $ 4,448,028    
Auction Preferred Shares Plus Cumulative
Unpaid Dividends — (61.3)%
      $ (142,533,440 )  
Net Assets Applicable to
Common Shares — 100.0%
      $ 232,274,065    

 

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, 2006, 81.8% 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 2.6% to 36.0% 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

14




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

FINANCIAL STATEMENTS (Unaudited)

Statements of Assets and Liabilities

As of March 31, 2006

    Insured Municipal Fund   Insured California Fund   Insured New York Fund  
Assets  
Investments —  
Identified cost   $ 1,526,400,897     $ 492,925,282     $ 356,273,398    
Unrealized appreciation     62,617,512       17,888,033       14,086,079    
Investments, at value   $ 1,589,018,409     $ 510,813,315     $ 370,359,477    
Cash   $     $ 693,280     $ 455,376    
Receivable for investments sold     23,883,146                
Interest receivable     17,239,449       5,699,760       4,159,741    
Receivable for daily variation margin on open financial futures contracts     120,937       35,312       22,687    
Total assets   $ 1,630,261,941     $ 517,241,667     $ 374,997,281    
Liabilities  
Due to custodian   $ 40,868,780     $     $    
Payable to affiliate for investment advisory fees     448,630       145,527       105,759    
Accrued expenses     237,211       87,699       84,017    
Total liabilities   $ 41,554,621     $ 233,226     $ 189,776    
Auction preferred shares at liquidation value plus cumulative unpaid dividends     592,575,865       195,030,464       142,533,440    
Net assets applicable to common shares   $ 996,131,455     $ 321,977,977     $ 232,274,065    
Sources of Net Assets  
Common Shares, $0.01 par value, unlimited number of shares authorized   $ 646,382     $ 216,282     $ 156,981    
Additional paid-in capital     912,453,277       305,163,036       221,346,825    
Accumulated net realized gain (loss) (computed on the basis of identified cost)     4,558,440       (6,155,905 )     (6,537,321 )  
Undistributed net investment income     2,892,260       793,039       422,679    
Net unrealized appreciation (computed on the basis of identified cost)     75,581,096       21,961,525       16,884,901    
Net assets applicable to common shares   $ 996,131,455     $ 321,977,977     $ 232,274,065    
Auction Preferred Shares Issued and Outstanding
(Liquidation preference of $25,000 per share)
 
      23,700       7,800       5,700    
Common Shares Outstanding  
      64,638,238       21,628,202       15,698,145    
Net Asset Value Per Common Share  
Net assets applicable to common shares ÷ common shares issued and outstanding   $ 15.41     $ 14.89     $ 14.80    

 

See notes to financial statements

15



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

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Operations

For the Six Months Ended March 31, 2006

    Insured Municipal Fund   Insured California Fund   Insured New York Fund  
Investment Income  
Interest   $ 37,978,001     $ 12,273,663     $ 8,916,601    
Total investment income   $ 37,978,001     $ 12,273,663     $ 8,916,601    
Expenses  
Investment adviser fee   $ 5,122,374     $ 1,665,337     $ 1,209,7054    
Trustees' fees and expenses     12,349       9,184       7,007    
Legal and accounting services     41,925       56,509       55,983    
Printing and postage     59,794       19,271       21,800    
Custodian fee     286,129       118,093       105,166    
Transfer and dividend disbursing agent     37,530       34,874       34,365    
Preferred shares remarketing agent fee     738,592       243,083       177,637    
Miscellaneous     111,726       43,103       30,659    
Total expenses   $ 6,410,419     $ 2,189,454     $ 1,642,371    
Deduct —  
Reduction of custodian fee   $ 26,390     $ 11,441     $ 4,164    
Reduction of investment adviser fee     2,521,784       819,808       595,571    
Total expense reductions   $ 2,548,174     $ 831,249     $ 599,735    
Net expenses   $ 3,862,245     $ 1,358,205     $ 1,042,636    
Net investment income   $ 34,115,756     $ 10,915,458     $ 7,873,965    
Realized and Unrealized Gain (Loss)  
Net realized gain (loss) —  
Investment transactions (identified cost basis)   $ 8,644,316     $ 2,876,782     $ 485,884    
Financial futures contracts     16,503,979       4,924,546       2,683,626    
Net realized gain   $ 25,148,295     $ 7,801,328     $ 3,169,510    
Change in unrealized appreciation (depreciation) —  
Investments (identified cost basis)   $ (16,251,636 )   $ (4,315,092 )   $ (2,895,600 )  
Financial futures contracts     2,942,219       758,920       896,156    
Net change in unrealized appreciation (depreciation)   $ (13,309,417 )   $ (3,556,172 )   $ (1,999,444 )  
Net realized and unrealized gain   $ 11,838,878     $ 4,245,156     $ 1,170,066    
Distributions to preferred shareholders
From net investment income
  $ (7,458,402 )   $ (2,597,113 )   $ (1,918,193 )  
From net realized gain     (902,151 )              
Total distributions to preferred shareholders   $ (8,360,553 )   $ (2,597,113 )   $ (1,918,193 )  
Net increase in net assets from operations   $ 37,594,081     $ 12,563,501     $ 7,125,838    

 

See notes to financial statements

16



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

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Six Months Ended March 31, 2006

Increase (Decrease) in Net Assets   Insured Municipal Fund   Insured California Fund   Insured New York Fund  
From operations —  
Net investment income   $ 34,115,756     $ 10,915,458     $ 7,873,965    
Net realized gain from investment transactions and financial futures contracts     25,148,295       7,801,328       3,169,510    
Net change in unrealized appreciation (depreciation) from investments and financial futures contracts     (13,309,417 )     (3,556,172 )     (1,999,444 )  
Distributions to preferred shareholders  
From net investment income     (7,458,402 )     (2,597,113 )     (1,918,193 )  
From net realized gain     (902,151 )              
Net increase in net assets from operations   $ 37,594,081     $ 12,563,501     $ 7,125,838    
Distributions to common shareholders —  
From net investment income   $ (27,334,945 )   $ (8,370,115 )   $ (6,012,358 )  
From net realized gain     (4,457,860 )              
Total distributions to common shareholders   $ (31,792,805 )   $ (8,370,115 )   $ (6,012,358 )  
Capital share transactions —  
Reinvestment of distributions to common shareholders   $ 480,041     $     $    
Net increase in net assets from capital share transactions   $ 480,041     $     $    
Net increase in net assets   $ 6,281,317     $ 4,193,386     $ 1,113,480    
Net Assets Applicable to Common Shares  
At beginning of period   $ 989,850,138     $ 317,784,591     $ 231,160,585    
At end of period   $ 996,131,455     $ 321,977,977     $ 232,274,065    
Undistributed net investment income included in
net assets applicable to common shares
 
At end of period   $ 2,892,260     $ 793,039     $ 422,679    

 

See notes to financial statements

17



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

FINANCIAL STATEMENTS (Unaudited) CONT'D

Statements of Changes in Net Assets

For the Year Ended September 30, 2005

Increase (Decrease) in Net Assets   Insured Municipal Fund   Insured California Fund   Insured New York Fund  
From operations —  
Net investment income   $ 68,447,409     $ 21,869,110     $ 15,736,294    
Net realized loss from investment transactions and financial futures contracts     (10,136,706 )     (5,857,486 )     (3,736,753 )  
Net change in unrealized appreciation (depreciation) from investments and financial futures contracts     49,361,030       15,434,121       9,072,211    
Distributions to preferred shareholders  
From net investment income     (11,235,061 )     (3,500,228 )     (2,626,097 )  
Net increase in net assets from operations   $ 96,436,672     $ 27,945,517     $ 18,445,655    
Distributions to common shareholders —  
From net investment income   $ (59,817,380 )   $ (18,438,043 )   $ (13,257,068 )  
Total distributions to common shareholders   $ (59,817,380 )   $ (18,438,043 )   $ (13,257,068 )  
Net increase in net assets   $ 36,619,292     $ 9,507,474     $ 5,188,587    
Net Assets Applicable to Common Shares  
At beginning of year   $ 953,230,846     $ 308,277,117     $ 225,971,998    
At end of year   $ 989,850,138     $ 317,784,591     $ 231,160,585    
Undistributed net investment income included in
net assets applicable to common shares
 
At end of year   $ 3,569,851     $ 844,809     $ 479,265    

 

See notes to financial statements

18




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

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Municipal Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)    2002(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 15.320     $ 14.750     $ 14.670     $ 14.810     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.528     $ 1.059     $ 1.084     $ 1.041     $ 0.040    
Net realized and unrealized gain     0.183       0.611       0.043       0.009       0.454    
Distributions to preferred shareholders             (0.174 )     (0.109 )     (0.091 )        
From net investment income     (0.115 )                          
From net realized gain     (0.014 )                          
Total income from operations   $ 0.582     $ 1.496     $ 1.018     $ 0.959     $ 0.494    
Less distributions to common shareholders  
From net investment income   $ (0.423 )   $ (0.926 )   $ (0.938 )   $ (0.908 )   $    
From net realized gain     (0.069 )                          
Total distributions to common shareholders   $ (0.492 )   $ (0.926 )   $ (0.938 )   $ (0.908 )   $    
Preferred and Common shares offering costs charged to paid-in capital   $     $     $     $ (0.007 )   $ (0.009 )  
Preferred Shares underwriting discounts   $     $     $     $ (0.184 )   $    
Net asset value — End of period (Common shares)   $ 15.410     $ 15.320     $ 14.750     $ 14.670     $ 14.810    
Market value — End of period (Common shares)   $ 14.809     $ 15.050     $ 13.950     $ 13.580     $ 15.000    
Total Investment Return on Net Asset Value(5)      3.96 %     10.70 %     7.58 %     5.67 %     3.39 %(4)   
Total Investment Return on Market Value(5)      1.69 %     14.98 %     9.91 %     (3.42 )%     4.71 %(4)   

 

See notes to financial statements

19



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

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured Municipal Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)    2002(1)(2)   
Ratios/Supplemental Data† ††   
Net assets applicable to common shares, end of period (000's omitted)   $ 996,131     $ 989,850     $ 953,231     $ 947,812     $ 934,619    
Ratios (As a percentage of average net assets applicable to common shares):                                          
Net expenses(6)     0.79 %(7)     0.78 %     0.77 %     0.75 %     0.48 %(7)  
Net expenses after custodian fee reduction(6)     0.78 %(7)     0.77 %     0.77 %     0.73 %     0.46 %(7)  
Net investment income(6)     6.93 %(7)     6.97 %     7.41 %     7.20 %     3.20 %(7)  
Portfolio Turnover     25 %     51 %     37 %     63 %        

 

†  The operating expenses of the Fund reflect reductions of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows:

Ratios (As a percentage of average net assets applicable to common shares):  
Expenses(6)     1.30 %(7)     1.29 %     1.29 %     1.26 %     0.80 %(7)  
Expenses after custodian fee reduction(6)     1.29 %(7)     1.28 %     1.29 %     1.24 %     0.78 %(7)  
Net investment income(6)     6.41 %(7)     6.46 %     6.89 %     6.69 %     2.88 %(7)  
Net investment income per share   $ 0.489     $ 0.981     $ 1.008     $ 0.967     $ 0.036    

 

††  The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

Ratios (As a percentage of average total net assets):                            
Net expenses     0.49 %(7)     0.48 %     0.47 %     0.47 %    
Net expenses after custodian fee reduction     0.49 %(7)     0.48 %     0.47 %     0.46 %    
Net investment income     4.33 %(7)     4.35 %     4.56 %     4.54 %    

 

†  The operating expenses of the Fund reflect reductions of the investment adviser fee. Had such action not been taken, the ratios would have been as follows:

Ratios (As a percentage of average total net assets):                            
Expenses     0.81 %(7)     0.80 %     0.79 %     0.79 %    
Expenses after custodian fee reduction     0.81 %(7)     0.80 %     0.79 %     0.78 %    
Net investment income     4.01 %(7)     4.03 %     4.24 %     4.22 %    
Senior Securities:                            
Total preferred shares outstanding     23,700       23,700       23,700       23,700      
Asset coverage per preferred share(8)   $ 67,034     $ 66,769     $ 65,233     $ 65,008      
Involuntary liquidation preference per preferred share(9)   $ 25,000     $ 25,000     $ 25,000     $ 25,000      
Approximate market value per preferred share(9)   $ 25,000     $ 25,000     $ 25,000     $ 25,000      

 

(1)  Computed using average common shares outstanding.

(2)  For the period from the start of business, August 30, 2002, to September 30, 2002.

(3)  Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price.

(4)  Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis.

(5)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis.

(6)  Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Fund's leveraged capital structure.

(7)  Annualized.

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

(9)  Plus accumulated and unpaid dividends.

See notes to financial statements

20



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

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured California Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)    2002(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 14.690     $ 14.250     $ 14.180     $ 14.760     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.505     $ 1.011     $ 1.033     $ 0.993     $ 0.031    
Net realized and unrealized gain (loss)     0.202       0.444       0.021       (0.402 )     0.420    
Distributions to preferred shareholders from net investment income     (0.120 )     (0.162 )     (0.084 )     (0.078 )        
Total income from operations   $ 0.587     $ 1.293     $ 0.970     $ 0.513     $ 0.451    
Less distributions to common shareholders  
From net investment income   $ (0.387 )   $ (0.853 )   $ (0.900 )   $ (0.901 )   $    
Total distributions to common shareholders   $ (0.387 )   $ (0.853 )   $ (0.900 )   $ (0.901 )   $    
Preferred and Common shares offering costs charged to paid-in capital   $     $     $     $ (0.011 )   $ (0.016 )  
Preferred Shares underwriting discounts   $     $     $     $ (0.181 )   $    
Net asset value — End of period (Common shares)   $ 14.890     $ 14.690     $ 14.250     $ 14.180     $ 14.760    
Market value — End of period (Common shares)   $ 14.140     $ 13.920     $ 13.730     $ 13.410     $ 15.000    
Total Investment Return on Net Asset Value(4)      4.27 %     9.58 %     7.34 %     2.58 %     3.04 %(5)   
Total Investment Return on Market Value(4)      4.50 %     7.77 %     9.36 %     (4.54 )%     4.71 %(5)   

 

See notes to financial statements

21



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

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured California Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)    2002(1)(2)   
Ratios/Supplemental Data† ††   
Net assets applicable to common shares, end of period (000's omitted)   $ 321,978     $ 317,785     $ 308,277     $ 306,656     $ 311,634    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(6)     0.86 %(7)     0.84 %     0.83 %     0.80 %     0.61 %(7)  
Net expenses after custodian fee reduction(6)     0.85 %(7)     0.83 %     0.83 %     0.77 %     0.59 %(7)  
Net investment income(6)     6.87 %(7)     6.93 %     7.23 %     7.02 %     2.54 %(7)  
Portfolio Turnover     14 %     16 %     24 %     38 %     0 %  

 

†  The operating expenses of the Fund reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows:

Ratios (As a percentage of average net assets applicable to common shares):                                          
Expenses(6)     1.38 %(7)     1.36 %     1.36 %     1.31 %     0.93 %(7)  
Expenses after custodian fee reduction(6)     1.37 %(7)     1.35 %     1.36 %     1.28 %     0.91 %(7)  
Net investment income(6)     6.35 %(7)     6.41 %     6.71 %     6.51 %     2.22 %(7)  
Net investment income per share   $ 0.466     $ 0.935     $ 0.959     $ 0.921     $ 0.027    

 

††  The ratios reported above are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

Ratios (As a percentage of average total net assets):                                          
Net expenses     0.53 %(7)     0.52 %     0.51 %     0.50 %     0.00 %  
Net expenses after custodian fee reduction     0.53 %(7)     0.51 %     0.51 %     0.48 %        
Net investment income     4.26 %(7)     4.28 %     4.43 %     4.42 %        

 

†  The operating expenses of the Fund reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows:

Ratios (As a percentage of average total net assets):                                          
Expenses     0.85 %(7)     0.84 %     0.83 %     0.82 %          
Expenses after custodian fee reduction     0.85 %(7)     0.83 %     0.83 %     0.80 %          
Net investment income     3.94 %(7)     3.96 %     4.11 %     4.10 %          
Senior Securities:                                          
Total preferred shares outstanding     7,800       7,800       7,800       7,800          
Asset coverage per preferred share(8)   $ 66,283     $ 65,745     $ 64,524     $ 64,316     $    
Involuntary liquidation preference per preferred share(9)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $    
Approximate market value per preferred share(9)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $    

 

(1)  Computed using average common shares outstanding.

(2)  For the period from the start of business, August 30, 2002, to September 30, 2002.

(3)  Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price.

(4)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on an annualized basis.

(5)  Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis.

(6)  Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Fund's leveraged capital structure.

(7)  Annualized.

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

(9)  Plus accumulated and unpaid dividends.

See notes to financial statements

22



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

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured New York Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)    2002(1)(2)   
Net asset value — Beginning of period (Common shares)   $ 14.730     $ 14.390     $ 14.480     $ 14.690     $ 14.325 (3)   
Income (loss) from operations  
Net investment income   $ 0.502     $ 1.002     $ 1.019     $ 0.981     $ 0.028    
Net realized and unrealized gain (loss)     0.073       0.349       (0.120 )     (0.006 )*     0.358    
Distributions to preferred shareholders from net investment income     (0.122 )     (0.167 )     (0.089 )     (0.090 )        
Total income from operations   $ 0.453     $ 1.184     $ 0.810     $ 0.885     $ 0.386    
Less distributions to common shareholders  
From net investment income   $ (0.383 )   $ (0.844 )   $ (0.900 )   $ (0.900 )   $    
Total distributions to common shareholders   $ (0.383 )   $ (0.844 )   $ (0.900 )   $ (0.900 )   $    
Preferred and Common shares offering costs charged to paid-in capital   $     $     $     $ (0.013 )   $ (0.021 )  
Preferred Shares underwriting discounts   $     $     $     $ (0.182 )   $    
Net asset value — End of period (Common shares)   $ 14.800     $ 14.730     $ 14.390     $ 14.480     $ 14.690    
Market value — End of period (Common shares)   $ 14.040     $ 13.680     $ 13.860     $ 13.450     $ 15.060    
Total Investment Return on Net Asset Value(4)      3.26 %     8.77 %     6.10 %     5.09 %     2.55 %(5)   
Total Investment Return on Market Value(4)      5.47 %     4.88 %     10.02 %     (4.78 )%     5.13 %(5)   

 

See notes to financial statements

23



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

FINANCIAL STATEMENTS CONT'D

Financial Highlights

Selected data for a common share outstanding during the periods stated

    Insured New York Fund  
    Six Months Ended
March 31, 2006
  Year Ended September 30,  
    (Unaudited)(1)    2005(1)    2004(1)    2003(1)    2002(1)(2)   
Ratios/Supplemental Data† ††   
Net assets applicable to common shares, end of period (000's omitted)   $ 232,274     $ 231,161     $ 225,972     $ 227,266     $ 223,739    
Ratios (As a percentage of average net assets applicable to common shares):  
Net expenses(6)     0.91 %(7)     0.87 %     0.86 %     0.83 %     0.71 %(7)  
Net expenses after custodian fee reduction(6)     0.91 %(7)     0.86 %     0.85 %     0.79 %     0.68 %(7)  
Net investment income(6)     6.84 %(7)     6.81 %     7.11 %     6.83 %     2.26 %(7)  
Portfolio Turnover     4 %     23 %     33 %     64 %     8 %  

 

†  The operating expenses of the Fund reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios and net investment income per share would have been as follows:

Ratios (As a percentage of average net assets applicable to common shares):                                          
Expenses(6)     1.43 %(7)     1.39 %     1.38 %     1.34 %     1.03 %(7)  
Expenses after custodian fee reduction(6)     1.43 %(7)     1.38 %     1.37 %     1.30 %     1.00 %(7)  
Net investment income(6)     6.32 %(7)     6.29 %     6.59 %     6.33 %     1.94 %(7)  
Net investment income per share   $ 0.464     $ 0.925     $ 0.944     $ 0.909     $ 0.024    

 

††  The ratios reported are based on net assets applicable solely to common shares. The ratios based on net assets, including amounts related to preferred shares, are as follows:

Ratios (As a percentage of average total net assets):                                          
Net expenses     0.56 %(7)     0.54 %     0.52 %     0.52 %     0.00 %  
Net expenses after custodian fee reduction     0.56 %(7)     0.53 %     0.52 %     0.50 %        
Net investment income     4.23 %(7)     4.21 %     4.35 %     4.31 %        

 

†  The operating expenses of the Fund reflect a reduction of the investment adviser fee. Had such action not been taken, the ratios would have been as follows:

Ratios (As a percentage of average total net assets):                                          
Expenses     0.88 %(7)     0.86 %     0.84 %     0.84 %          
Expenses after custodian fee reduction     0.88 %(7)     0.85 %     0.84 %     0.82 %          
Net investment income     3.91 %(7)     3.89 %     4.03 %     3.99 %          
Senior Securities:                                          
Total preferred shares outstanding     5,700       5,700       5,700       5,700          
Asset coverage per preferred share(8)   $ 65,756     $ 65,560     $ 64,646     $ 64,884     $    
Involuntary liquidation preference per preferred share(9)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $    
Approximate market value per preferred share(9)   $ 25,000     $ 25,000     $ 25,000     $ 25,000     $    

 

(1)  Computed using average common shares outstanding.

(2)  For the period from the start of business, August 30, 2002, to September 30, 2002.

(3)  Net asset value at beginning of period reflects the deduction of the sales load of $0.675 per share paid by the shareholder from the $15.000 offering price.

(4)  Returns are historical and are calculated by determining the percentage change in net asset value or market value with all distributions reinvested. Total return is not computed on annualized basis.

(5)  Total investment return on net asset value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the net asset value on the last day of the period reported. Total investment return on market value is calculated assuming a purchase at the offering price of $15.000 less the sales load of $0.675 per share paid by the shareholder on the first day and a sale at the current market price on the last day of the period reported. Total investment return on net asset value and total investment return on market value are not computed on an annualized basis.

(6)  Ratios do not reflect the effect of dividend payments to preferred shareholders. Ratios to average net assets applicable to common shares reflect the Fund's leveraged capital structure.

(7)  Annualized.

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

(9)  Plus accumulated and unpaid dividends.

*  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.

See notes to financial statements

24




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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1  Significant Accounting Policies

Eaton Vance Insured Municipal Bond Fund (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), (individually referred to as a Fund or collectively the Funds) are registered under the Investment Company Act of 1940 (the 1940 Act), as amended, as non-diversified, closed-end management investment companies. The Insured Municipal Fund was organized under the laws of the Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated July 2, 2002. The Insured California Fund and the Insured New York Fund were organized under the laws of the Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated July 8, 2002. Each Fund's investment objective is to achieve current income exempt from regular federal income tax, including alternative minimum tax, and taxes in its specified state. Each Fund seeks to achieve its objective by investing primarily in high grade municipal obligations that are insured as to the timely payment of principal and interest.

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

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

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

C  Federal Taxes — Each Fund's policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year all of its taxable, if any, and tax-exempt income, including any net realized gain on investments. Therefore, no provision for federal income or excise tax is necessary. At September 30, 2005, the Funds, for federal income tax purposes, had capital loss carryovers which will reduce taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Internal Revenue Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. The amounts and expiration dates of the capital loss carryovers are as follows:

Fund   Amount   Expires  
Insured Municipal Fund   $ 1,072,880     September 30, 2011  
      4,954,488     September 30, 2013  
Insured California Fund     557,635     September 30, 2011  
      10,557,537     September 30, 2013  
Insured New York Fund     1,251,495     September 30, 2011  
      1,166,633     September 30, 2012  
      5,433,153     September 30, 2013  

 

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

D  Offering Costs — Costs incurred by the Funds in connection with the offerings of the common shares and preferred shares were recorded as a reduction of capital paid in excess of par applicable to common shares.

E  Financial Futures Contracts — Upon the entering of a financial futures contract, a Fund is required to deposit (initial margin) either in cash or securities an amount equal to a certain percentage of the purchase price indicated in the financial futures contract. Subsequent payments are made or received by a Fund (margin maintenance) each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for book purposes as unrealized gains or losses by a Fund. A Fund's investment in financial futures contracts is designed for both hedging against anticipated future changes in interest rates and investment purposes. Should interest rates move unexpectedly, a Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss.

25



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

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

F  Options on Futures Contracts — Upon the purchase of a put option on a financial futures contract by a Fund, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, a Fund will realize a loss in the amount of the cost of the option. When a Fund enters into a closing sale transaction, a Fund will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the cost of the option. When a Fund exercises a put option, settlement is made in cash. The risk associated with purchasing put options is limited to the premium originally paid.

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

H  Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.

I  Indemnifications — Under each Fund's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each Fund and shareholders are indemnified against personal liability for the obligations of each Fund. Additionally, in the normal course of business, each Fund enters into agreements with service providers that may contain indemnification clauses. Each Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Fund that have not yet occurred.

J  Expense Reduction — Investors Bank & Trust Company (IBT) serves as custodian of the Funds. Pursuant to the respective custodian agreements, IBT receives a fee reduced by credits which are determined based on the average daily cash balances each Fund maintains with IBT. All credit balances used to reduce the Funds' custodian fees are reported as a reduction of total expenses in the Statements of Operations.

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

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

2  Auction Preferred Shares (APS)

Each Fund issued Auction Preferred Shares on October 29, 2002 in a public offering. The underwriting discounts and other offering costs were recorded as a reduction of the capital of the common shares of each Fund. Dividends on the APS, which accrue daily, are cumulative at a rate which was established at the offering of each Fund's APS and generally have been reset every seven days thereafter by an auction, unless a special dividend period has been set. Each series within a Fund is identical in all respects to the other(s), except for the dates of reset for the dividend rates.

Auction Preferred Shares issued and outstanding as of March 31, 2006 and dividend rate ranges for the six months ended March 31, 2006 are as indicated below:

Fund   Preferred Shares
Issued and Outstanding
  Dividends Rate
Ranges
 
Insured Municipal Series A     4,740       2.30 % – 4.73%  
Insured Municipal Series B     4,740       0.80 % – 4.00%  
Insured Municipal Series C     4,740       2.50 % – 5.15%  
Insured Municipal Series D     4,740       2.30 % – 4.00%  
Insured Municipal Series E     4,740       2.18 % – 3.90%  
Insured California Series A     3,900       2.00 % – 3.35%  
Insured California Series B     3,900       2.04 % – 3.30%  
Insured New York Series A     2,850       2.25 % – 3.30%  
Insured New York Series B     2,850       2.30 % – 3.25%  

 

The APS are redeemable at the option of each Fund at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends on any dividend payment date. The APS are also subject to mandatory redemption at a redemption price equal to $25,000 per share, plus accumulated and unpaid dividends, if any Fund is in default for an extended period on its asset

26



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

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

maintenance requirements with respect to the APS. If the dividends on the APS shall remain unpaid in an amount equal to two full years' dividends, the holders of the APS as a class have the right to elect a majority of the Board of Trustees. In general, the holders of the APS and the Common Shares have equal voting rights of one vote per share, except that the holders of the APS, as a separate class, have the right to elect at least two members of the Board of Trustees. The APS have a liquidation preference of $25,000 per share, plus accumulated and unpaid dividends. Each Fund is required to maintain certain asset coverage with respect to the APS as defined in each Fund's By-Laws and the Investment Company Act of 1940. Each Fund pays an annual fee equivalent to 0.25% of the preferred shares liquidation value for the remarketing efforts associated with the preferred auction.

3  Distributions to Shareholders

Each Fund intends to make monthly distributions of net investment income, after payments of any dividends on any outstanding APS. Distributions are recorded on the ex-dividend date. Distributions of realized capital gains, if any, are made at least annually. Distributions to preferred shareholders are recorded daily and are payable at the end of each dividend period. Each dividend payment period for the APS is generally seven days. The applicable dividend rate for APS on March 31, 2006 are listed below. For the six months ended March 31, 2006, the amount of dividends each Fund paid to Auction Preferred shareholders and average APS dividend rates for such period were as follows:

Fund   APS
Dividend Rates
as of
March 31,
2006
  Dividends Paid
to Preferred
Shareholders from
net investment
income and net
realized gain for the
six months ended
March 31,
2006
  Average
APS
Dividend
Rates for the
six months ended
March 31,
2006
 
Insured Municipal Fund
Series A
    2.50 %   $ 1,699,096       2.88 %  
Insured Municipal Fund
Series B
    3.25 %   $ 1,620,019       2.75 %  
Insured Municipal Fund
Series C
    3.26 %   $ 1,727,608       2.94 %  
Insured Municipal Fund
Series D
    3.10 %   $ 1,654,901       2.82 %  
Insured Municipal Fund
Series E
    3.00 %   $ 1,658,929       2.82 %  
Insured California Fund
Series A
    2.70 %   $ 1,266,560       2.61 %  

 

Fund   APS
Dividend Rates
as of
March 31,
2006
  Dividends Paid
to Preferred
Shareholders from
net investment
income and net
realized gain for the
six months ended
March 31,
2006
  Average
APS
Dividend
Rates for the
six months ended
March 31,
2006
 
Insured California Fund
Series B
    3.30 %   $ 1,330,553       2.75 %  
Insured New York
Series A
    2.81 %   $ 955,927       2.70 %  
Insured New York
Series B
    2.95 %   $ 962,266       2.72 %  

 

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.

4  Investment Adviser Fee and Other Transactions with Affiliates  

The investment adviser fee, computed at an annual rate of 0.65% of each Fund's average weekly gross assets, was earned by Eaton Vance Management (EVM) as compensation for investment advisory services rendered to each Fund. Except for Trustees of each Fund who are not members of EVM's organization, officers and Trustees receive remuneration for their services to each Fund out of such investment adviser fee. For the six months ended March 31, 2006, the fee was equivalent to 0.65% (annualized) of each Fund's average weekly gross assets and amounted to $5,122,374, $1,665,337, and $1,209,754 for Insured Municipal Fund, Insured California Fund and Insured New York Fund, respectively. EVM also serves as the administrator of the Funds, but currently receives no compensation.

In addition, EVM has contractually agreed to reimburse the Fund for fees and other expenses in the amount of 0.32% of average weekly gross assets of each Fund during the first five full years of each Fund's operations, 0.24% of average weekly gross assets of each Fund in year six, 0.16% in year seven and 0.08% in year eight. For the six months ended March 31, 2006, EVM contractually waived $2,521,784, $819,808 and $595,571 of its advisory fee for Insured Municipal Fund, Insured California Fund and Insured New York Fund, respectively.

27



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

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

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

5  Investments

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

Insured Municipal Fund  
Purchases   $ 393,525,143    
Sales     414,083,012    
Insured California Fund  
Purchases   $ 71,716,461    
Sales     73,055,907    
Insured New York Fund  
Purchases   $ 16,559,704    
Sales     27,878,478    

 

6  Federal Income Tax Basis of Unrealized Appreciation (Depreciation)

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

Insured Municipal Fund  
Aggregate Cost   $ 1,525,345,707    
Gross unrealized appreciation   $ 67,849,189    
Gross unrealized depreciation     (4,176,487 )  
Net unrealized appreciation   $ 63,672,702    
Insured California Fund  
Aggregate Cost   $ 492,376,234    
Gross unrealized appreciation   $ 18,926,681    
Gross unrealized depreciation     (489,600 )  
Net unrealized appreciation   $ 18,437,081    
Insured New York Fund  
Aggregate Cost   $ 356,231,234    
Gross unrealized appreciation   $ 14,918,128    
Gross unrealized depreciation     (789,885 )  
Net unrealized appreciation   $ 14,128,243    

 

7  Shares of Beneficial Interest

Each Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional $0.01 par value common shares. For the six months ended March 31, 2006 and the year ended September 30, 2005, there were no transactions in Fund shares for Insured California Fund and Insured New York Fund.

    Insured Municipal Fund  
    Six Months Ended
March 31, 2006
(Unaudited)
  Year Ended
September 30, 2005
 
Shares issued pursuant to
the Fund's dividend  
reinvestment plan
    31,571          
Net increase     31,571          

 

8  Financial Instruments

Each Fund may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments include futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment each Fund has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.

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

Futures Contracts



Fund
 
Expiration
Date
 

Contracts
 

Position
 
Aggregate
Cost
 

Value
  Net
Unrealized
Appreciation
 
Insured
Municipal
  06/06   3,870
U.S. Treasury Bond
  Short   $ (435,398,272 )   $ (422,434,688 )   $ 12,963,584    
Insured
California
  06/06   1,130
U.S. Treasury Bond
  Short   $ (127,420,054 )   $ (123,346,562 )   $ 4,073,492    
Insured
New York
  06/06   726
U.S. Treasury Bond
  Short   $ (82,046,259 )   $ (79,247,437 )   $ 2,798,822    

 

At March 31, 2006, each Fund had sufficient cash and/or securities to cover margin requirements on open futures contracts.

28



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

NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D

9  Overdraft Advances

Pursuant to the custodian agreement between the Funds and IBT, IBT may in its discretion advance funds to the Funds to make properly authorized payments. When such payments result in an overdraft by the Funds, the Funds are obligated to repay IBT at the current rate of interest charged by IBT for secured loans (currently, a rate above the Federal Funds rate). This obligation is payable on demand to IBT. IBT has a lien on the Fund's assets to the extent of any overdraft. At March 31, 2006, the Insured Municipal Bond Fund had payments due to IBT pursuant to the foregoing arrangement of $40,868,780.

29




Eaton Vance Insured Municipal Bond Funds

DIVIDEND REINVESTMENT PLAN

Each Fund offers a dividend reinvestment plan (the Plan) pursuant to which shareholders may elect to have dividends and capital gains distributions automatically reinvested in common shares (the Shares) of the same Fund. You may elect to participate in the Plan by completing the Dividend Reinvestment Plan Application Form. If you do not participate, you will receive all distributions in cash paid by check mailed directly to you by PFPC Inc. as dividend paying agent. On the distribution payment date, if the net asset value per Share is equal to or less than the market price per Share plus estimated brokerage commissions, then new Shares will be issued. The number of Shares shall be determined by the greater of the net asset value per Share or 95% of the market price. Otherwise, Shares generally will be purchased on the open market by the Plan Agent. Distributions subject to income tax (if any) are taxable whether or not shares are reinvested.

If your shares are in the name of a brokerage firm, bank, or other nominee, you can ask the firm or nominee to participate in the Plan on your behalf. If the nominee does not offer the Plan, you will need to request that your shares be re-registered in your name with each Fund's transfer agent, PFPC Inc., or you will not be able to participate.

The Plan Agent's service fee for handling distributions will be paid by each Fund. Each participant will be charged their pro rata share of brokerage commissions on all open-market purchases.

Plan participants may withdraw from the Plan at any time by writing to the Plan Agent at the address noted on the following page. If you withdraw, you will receive shares in your name for all Shares credited to your account under the Plan. If a participant elects by written notice to the Plan Agent to have the Plan Agent sell part or all of his or her Shares and remit the proceeds, the Plan Agent is authorized to deduct a $5.00 fee plus brokerage commissions from the proceeds.

If you wish to participate in the Plan and your shares are held in your own name, you may complete the form on the following page and deliver it to the Plan Agent.

Any inquiries regarding the Plan can be directed to the Plan Agent, PFPC Inc., at 1-800-331-1710.

30



Eaton Vance Insured Municipal Bond Funds

APPLICATION FOR PARTCIPATION IN DIVIDEND REINVESTMENT PLAN

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

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

  Please print exact name on account

  Shareholder signature  Date

  Shareholder signature  Date

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

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

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

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

Number of Employees

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

Number of Shareholders

As of March 31, 2006, our records indicate that there are 379, 80 and 83 registered shareholders for Insured Municipal Fund, Insured California Fund and Insured New York Fund, respectively, and approximately 32,500, 9,000 and 8,000 shareholders owning the Fund shares in street name, such as through brokers, banks and financial intermediaries for Insured Municipal Fund, Insured California Fund and Insured New York Fund, respectively.

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

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

American Stock Exchange symbols

Insured Municipal Fund   EIM  
Insured California Fund   EVM  
Insured New York Fund   ENX  

 

31



Eaton Vance Insured Municipal Bond Funds

BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS

Overview of the Contract Review Process

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

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

Information about Fees, Performance and Expenses

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

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

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

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

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

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

Information about Portfolio Management

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

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

•  Data relating to portfolio turnover rates of each fund;

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

Information about the Adviser

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

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

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

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

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

Other Relevant Information

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

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

•  The terms of each advisory agreement.

32



Eaton Vance Insured Municipal Bond Funds

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

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

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

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

Results of the Process

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

•  Insured Municipal Bond Fund

•  Insured California Municipal Bond Fund

•  Insured New York Municipal Bond Fund

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

Nature, Extent and Quality of Services

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

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

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

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

33



Eaton Vance Insured Municipal Bond Funds

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

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

Fund Performance

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

Management Fees and Expenses

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

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

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

Profitability

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

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

Economies of Scale

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

34




Eaton Vance Insured Municipal Bond Funds

INVESTMENT MANAGEMENT

Eaton Vance Insured Municipal Bond Funds

Officers
Cynthia J. Clemson
President of EVM and ENX and Portfolio Manager of EVM; Vice President of EIM.
James B. Hawkes
Vice President and Trustee
Craig R. Brandon
Vice President and Portfolio Manager of ENX
Robert B. MacIntosh
President and Portfolio Manager of EIM; Vice President of EVM and ENX
Barbara E. Campbell
Treasurer
Alan R. Dynner
Secretary
Paul M. O'Neil
Chief Compliance Officer
  Trustees
Samuel L. Hayes, III
Chairman
Benjamin C. Esty
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
Ralph F. Verni
 

 

American Stock Exchange symbols

Insured Municipal Fund   EIM  
Insured California Fund   EVM  
Insured New York Fund   ENX  

 

35



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

The Eaton Vance Building
255 State Street
Boston, MA 02109

Custodian
Investors Bank & Trust Company

200 Clarendon Street
Boston, MA 02116

Transfer Agent and Dividend Disbursing Agent
PFPC Inc.

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

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



1453-3/06  CE-IMBSRC




 

Item 2. Code of Ethics

 

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

 

Item 3. Audit Committee Financial Expert

 

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

 

Item 4. Principal Accountant Fees and Services

 

Not required in this filing

 

Item 5. Audit Committee of Listed registrants

 

Not required in this filing.

 

Item 6. Schedule of Investments

 

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

 

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

 

The Board of Trustees of the Trust has adopted a proxy voting policy and procedure (the “Fund Policy”), pursuant to which the Trustees have delegated proxy voting responsibility to the Fund’s investment adviser and adopted the investment adviser’s proxy voting policies and procedures (the “Policies”) which are described below. The Trustees will review the Fund’s proxy voting records from time to time and will annually consider approving the Policies for the upcoming year. In the event that a conflict of interest arises between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund, the investment adviser will generally refrain from voting the proxies related to the companies giving rise to such conflict until it consults with the Board’s Special Committee except as contemplated under the Fund Policy. The Board’s Special Committee will instruct the investment adviser on the appropriate course of action.

 



 

The Policies are designed to promote accountability of a company’s management to its shareholders and to align the interests of management with those shareholders. The investment adviser will generally support company management on proposals relating to environmental and social policy issues, on matters regarding the state of organization of the company and routine matters related to corporate administration which are not expected to have a significant economic impact on the company or its shareholders. On all other matters, the investment adviser will review each matter on a case-by-case basis and reserves the right to deviate from the Policies’ guidelines when it believes the situation warrants such a deviation. The Policies include voting guidelines for matters relating to, among other things, the election of directors, approval of independent auditors, executive compensation, corporate structure and anti-takeover defenses. The investment adviser may abstain from voting from time to time where it determines that the costs associated with voting a proxy outweighs the benefits derived from exercising the right to vote.

 

In addition, the investment adviser will monitor situations that may result in a conflict of interest between the Fund’s shareholders and the investment adviser, the administrator, or any of their affiliates or any affiliate of the Fund by maintaining a list of significant existing and prospective corporate clients. The investment adviser’s personnel responsible for reviewing and voting proxies on behalf of the Fund will report any proxy received or expected to be received from a company included on that list to members of senior management of the investment adviser identified in the Policies. Such members of senior management will determine if a conflict exists. If a conflict does exist, the investment adviser will seek instruction on how to vote from the Special Committee.

 

Information on how the Fund voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge, upon request, by calling 1-800-262-1122, and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies

 

Not required in this filing.

 

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

 

No such purchases this period.

 



 

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

 

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

 

 The Governance Committee shall, when identifying candidates for the position of Independent Trustee, consider any such candidate recommended by a shareholder of a Fund if such recommendation contains  (i)sufficient background information concerning the candidate, including evidence the candidate is willing to serve as an Independent Trustee if selected for the position; and (ii) is received in a sufficiently timely manner (and in any event no later than the date specified for receipt of shareholder proposals in any applicable proxy statement with respect to a Fund). Shareholders shall be directed to address any such recommendations in writing to the attention of the Governance Committee, c/o the Secretary of the Fund. The Secretary shall retain copies of any shareholder recommendations which meet the foregoing requirements for a period of not more than 12 months following receipt. The Secretary shall have no obligation to acknowledge receipt of any shareholder recommendations.

 

Item 11. Controls and Procedures

 

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

 

(b) There have been no changes in the registrant’s internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Exhibits

 

(a)(1)

Registrant’s Code of Ethics – Not applicable (please see Item 2).

(a)(2)(i)

Treasurer’s Section 302 certification.

(a)(2)(ii)

President’s Section 302 certification.

(b)

Combined Section 906 certification.

 



 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Eaton Vance Insured New York Municipal Bond Fund

 

By:

/s/ Cynthia J. Clemson

 

 

Cynthia J. Clemson

 

President

 

 

 

 

Date:

May 18, 2006

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By:

/s/ Barbara E. Campbell

 

 

Barbara E. Campbell

 

Treasurer

 

 

 

 

Date:

May 18, 2006

 

 

 

 

 

By:

/s/ Cynthia J. Clemson

 

 

Cynthia J. Clemson

 

President

 

 

 

 

Date:

May 18, 2006