<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-21142
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Eaton Vance Insured Municipal Bond Fund
---------------------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
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(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
September 30
------------
Date of Fiscal Year End
September 30, 2003
------------------
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-21147
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Eaton Vance Insured California Municipal Bond Fund
--------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
September 30
------------
Date of Fiscal Year End
September 30, 2003
------------------
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
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)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(Registrant's Telephone Number)
September 30
------------
Date of Fiscal Year End
September 30, 2003
------------------
Date of Reporting Period
<Page>
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
[EATON VANCE(R) MANAGEMENT INVESTMENTS LOGO]
[PHOTO IMAGE]
ANNUAL REPORT SEPTEMBER 30, 2003
[PHOTO IMAGE]
EATON VANCE INSURED MUNICIPAL BOND FUNDS
INSURED MUNICIPAL
INSURED CALIFORNIA
INSURED NEW YORK
[PHOTO IMAGE]
<Page>
EATON VANCE FUNDS
EATON VANCE MANAGEMENT
BOSTON MANAGEMENT AND RESEARCH
EATON VANCE DISTRIBUTORS, INC.
PRIVACY NOTICE
The Eaton Vance organization is committed to ensuring your financial
privacy. This notice is being sent to comply with privacy regulations of
the Securities and Exchange Commission. Each of the above financial
institutions has in effect the following 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.
- 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).
- Policies and procedures (including physical, electronic and procedural
safeguards) are in place that are designed to protect the
confidentiality of such information.
For more information about Eaton Vance's privacy policies, call:
1-800-262-1122
----------
IMPORTANT NOTICE
REGARDING DELIVERY OF
SHAREHOLDER DOCUMENTS
The Securities and Exchange Commission (SEC) permits mutual 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.
From time to time, mutual funds are required to vote proxies related to the
securities held by the funds. The Eaton Vance Funds or their underlying
Portfolios 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 without charge, upon request, by calling 1-800-262-1122.
This description is also available on the Securities and Exchange Commission's
website at http://www.sec.gov.
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUND as of September 30, 2003
LETTER TO SHAREHOLDERS
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
President
In our shareholder reports, we refer frequently to "quality spreads" and their
important role in bond analysis. However, while followed closely by bond
analysts and portfolio managers, this aspect of municipal bond investing is
generally overlooked by individual investors. As part of our continuing
educational series, we thought it might be instructive to discuss quality
spreads and why they constitute a key variable for investors in the municipal
bond market.
QUALITY SPREADS: COMPENSATION FOR ADDED CREDIT RISK...
The term "quality spread" refers to the difference in yields between bonds of
varying quality but similar maturities. A bond rated BBB, for example, should
have a higher yield than an insured bond rated AAA because investors who buy
lower-quality bonds anticipate being paid for accepting a higher level of credit
risk. That risk premium comes in the form of higher yields. Spreads are
typically stated in basis points, or 1/100's of a percentage point. Thus, a bond
yielding 5.00% trades at a spread of 100 basis points (1.00%) over a bond that
yields 4.00%.
SPREAD FLUCTUATIONS ARE INFLUENCED BY A VARIETY OF FACTORS...
Spreads fluctuate with changes in market conditions, with many factors
influencing spread relationships. The quality and type of bond are primary
factors. For example, an insured general obligation rated AAA - with no credit
risk - will trade at a significantly lower yield than a BBB-rated industrial
bond, which has a significantly higher credit risk. Naturally, a bond's price
will respond to changes that may impact - for better or worse - the underlying
fundamentals of an issuer. Remember, bond yields move in the opposite direction
of bond prices.
Another factor that influences spreads is supply. Assuming stable demand,
spreads are likely to widen if the supply for a specific issuer increases, as
the market must now digest a larger volume of bonds. Similarly, if supply
declines, spreads may narrow, as investors may be willing to pay more for a
credit that is increasingly scarce.
Finally, quality spreads may fluctuate with changes in the overall economy. For
example, spreads tend to narrow as the economy strengthens and the revenue
outlook improves. On the other hand, as the economy slows or enters recession,
spreads tend to widen, as investors become increasingly worried about the
direction of the economy and its impact on bonds with higher credit risk.
SPREADS CONSTITUTE A KEY FACTOR IN INVESTMENT DECISIONS...
Quality spreads play an important role in the investment decisions of municipal
bond portfolio managers. The widening of spreads may suggest a developing
opportunity. If spreads have widened appreciably, the investor may detect an
unusual opportunity in a lower-quality, higher-yielding bond. Conversely, if
lower-quality bonds have significantly outperformed high-quality bonds over a
period, the resulting narrowing of spreads may signal the need for caution. This
"spread compression" may prompt portfolio managers to upgrade their portfolios
with higher-quality bonds because they are no longer being adequately
compensated for the risk of owning lower-quality bonds.
While quality spreads are a key metric for municipal bond investors, they
represent just one of many factors considered in establishing a diversified bond
portfolio. At Eaton Vance, we realize that complex markets require intensive
research, a need that emphasizes once again the value of experienced,
professional portfolio management.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
November 5, 2003
SHARES OF THE FUNDS 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. YIELDS WILL
VARY.
2
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2003
MARKET RECAP
While the pace of job growth was disappointing, the U.S. economy improved
noticeably in the year ended September 30, 2003. The passage of significant tax
legislation appeared to give consumer spending a boost. Capital spending, which
has lagged the recovery rate of past expansions, was at last showing signs of
recovery in late summer and early fall, as manufacturers of industrial equipment
reported stronger orders.
TECHNOLOGY, RETAILING AND CONSTRUCTION HAVE LED THE ECONOMY IN THE EARLY STAGES
OF RECOVERY...
A beginning recovery was evident in several key sectors of the economy.
Technology companies, especially semiconductor manufacturers and suppliers, have
reported robust demand. The manufacturing sector also saw a pickup in activity,
with industrial segments, such as machine tools, faring well, as factories began
to refit their plants. The retail sector - with the exception of weak auto sales
- - was very strong, as consumer confidence rose and tax cuts filtered into
consumers' pockets. Despite a rise in mortgage rates, residential construction
maintained its strong momentum, although the commercial side was quite sluggish.
WITH SLOW JOB GROWTH AND MANAGEABLE INFLATION, THE FEDERAL RESERVE HAS KEPT
INTEREST RATES LOW...
Gross Domestic Product expanded 3.3% in the second quarter of 2003, followed by
a 7.2% rise in the third quarter. However, despite the rebounding economy, the
labor market remained stagnant through much of the year - the nation's jobless
rate was 6.1% in September 2003. While large employers were slow to rehire, the
pace of layoffs slowed considerably. Job growth was stronger among temporary
agencies and smaller firms, which have generated the lion's share of new jobs in
recent years.
Core inflation has generally been contained. Prices for finished goods, consumer
staples and services have seen little change. However, prices for some
commodities have witnessed a sharp rise, including lumber, plywood, steel and
natural gas. Meanwhile, gasoline prices, which spiked dramatically during the
prime summer driving season, have since fallen back slightly. With inflation
largely held at bay, the Federal Reserve has maintained an accommodative
monetary policy. The Fed lowered its Federal Funds rate - a key short-term
interest rate barometer - to 1.00% in June.
[CHART]
Municipal bond yields exceeded Treasury yields
<Table>
30-Year AAA-rated
General Obligation (GO) Bonds* 4.97%
Taxable equivalent yield
in 35.0% tax bracket 7.65%
30-Year Treasury Bond 4.87%
</Table>
Principal and interest payments of Treasury securities are guaranteed by the
U.S. government.
*GO yields are a compilation of a representative variety of general obligations
and are not necessarily representative of a Fund's yield. Statistics as of
September 30, 2003.
Past performance is no guarantee of future results.
Source: Bloomberg, L.P.
However, while the decline in short-term interest rates helped revive the stock
market, longer-term interest rates moved slightly higher, prompting a bond
market pullback. Ten-year Treasury bond yields - which were at 3.59% at
September 30, 2002 - rose to 3.93% by September 30, 2003 in response to a
reviving economy. The Lehman Brothers Municipal Bond Index had a total return of
3.89% for the year ended September 30, 2003.*
FACING RISING BUDGET SHORTFALLS, BELEAGUERED STATES HAVE BEEN FORCED TO RAISE
TAXES...
Despite lower federal tax rates, the rationale for tax-exempt income has
remained intact. Many state governments have enacted income tax hikes and fee
increases to make up for revenue shortfalls and budget deficits. Thus, while one
portion of the tax burden has fallen, another portion has grown more onerous for
many taxpayers. For that reason, we believe that municipal bonds will continue
to present interesting investment opportunities and to merit a place in the
portfolios of tax-conscious investors.
*It is not possible to invest directly in an Index.
THE VIEWS EXPRESSED THROUGHOUT THIS REPORT ARE THOSE OF THE VARIOUS 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 EATON VANCE DISCLAIMS ANY RESPONSIBILITY TO
UPDATE SUCH VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND,
BECAUSE INVESTMENT DECISIONS FOR AN EATON VANCE FUND ARE BASED ON MANY FACTORS,
MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY EATON
VANCE FUND.
3
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUND as of September 30, 2003
INVESTMENT UPDATE
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
Portfolio Manager
MANAGEMENT UPDATE
- - The U.S. economy gathered new momentum in 2003. Consumer-based sectors, such
as retail, have mounted a recovery, housing remains relatively strong and
manufacturing appears to be on the mend in many sections of the nation. The
nation's jobless rate was 6.1% in September 2003, up from 5.6% a year ago.
- - The Fund's largest sector weighting was insured* transportation bonds. The
nation's transportation infrastructure is undergoing a dramatic overhaul to
meet the needs of the next century. The Fund's holdings included issues for
rapid transit, toll roads and bridges, monorails and highways.
- - Insured general obligations (GOs)* were a significant commitment for the Fund.
Amid an uncertain recovery, a weak revenue outlook has raised the specter of
budget deficits for many state and cities. As a consequence, the insured* GO
sector has drawn more attention from investors.
- - In a slow economic recovery, management emphasized public purpose bonds that
are relatively immune to economic fluctuations. Consistent with that approach,
the Fund had a large investment in insured* water and sewer bonds, whose
revenues derive from non-discretionary water bill payments.
- - In a changing interest rate environment, management continued to fine-tune the
Fund's coupon structure. Management was able to take advantage of an increase
in retail demand to make these adjustments.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 107
- - Effective Maturity: 12.3 years
- - Average Rating: AAA
- - Average Call: 11.1 years
- - Average Dollar Price: $89.46
</Table>
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of -3.42% for the year ended September 30, 2003. That return was
the result of a decrease in share price from $15.00 on September 30, 2002 to
$13.58 on September 30, 2003 and the reinvestment of $0.908 in regular monthly
dividends.(3)
- - Based on net asset value, the Fund had a total return of 5.67% for the year
ended September 30, 2003. That return was the result of a decrease in net
asset value per share from $14.81 on September 30, 2002 to $14.67 on September
30, 2003, and the reinvestment of all distributions.
- - Based on the most recent dividend and a share price of $13.58, the Fund had a
market yield of 6.68% at September 30, 2003.(4) The Fund's market yield is
equivalent to a taxable yield of 10.28%.(5)
[CHART]
RATING DISTRIBUTION(1),(2)
By total investments
<Table>
AAA 84.1%
AA 7.1%
A 5.2%
BBB 2.7%
Non-Rated 0.9%
</Table>
For federal income tax purposes, 100.00% of the total dividends paid by the
Fund from net investment income during the year ended September 30, 2003
was designated as an exempt interest dividend.
FUND INFORMATION
as of September 30, 2003
PERFORMANCE(6)
Average Annual Total Returns (by share price, American Stock Exchange)
<Table>
One Year -3.42%
Life of Fund (8/30/02) 1.04
</Table>
Average Annual Total Returns (by net asset value)
<Table>
One Year 5.67%
Life of Fund (8/30/02) 8.45
</Table>
[CHART]
FIVE LARGEST CATEGORIES(1)
By net assets applicable to common shares
<Table>
Insured - Transportation* 39.0%
Insured - General Obligations* 21.6%
Insured - Water & Sewer* 14.6%
Insured - Electric Utilities* 14.4%
Insured - Escrowed/Prerefunded* 9.2%
</Table>
- ----------
(1) Fund Statistics, Rating Distribution and Five Largest Categories are
subject to change.
(2) Rating Distribution is determined by dividing the total market value of the
issues by the total investments of the Fund.
(3) A portion of the Fund's income may be subject to federal income tax. Income
may be subject to state tax.
(4) The Fund's market yield is calculated by dividing the most recent dividend
per share by the share price at the end of the period and annualizing the
result.
(5) Taxable-equivalent yield assumes maximum 35.00% federal income tax rate. A
lower rate would result in a lower tax-equivalent figure.
(6) Returns are historical and are calculated by determining the percentage
change in share price or net asset value with all distributions reinvested.
* Private insurance does not remove the risk of loss of principal associated
with insured investments due to changes in market conditions.
Past performance is no guarantee of future results. Investment return and
share price will fluctuate so that shares, when sold, may be worth more or
less than their original cost.
4
<Page>
EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND as of September 30, 2003
INVESTMENT UPDATE
[PHOTO OF CYNTHIA J. CLEMSON]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
- - The California economy showed signs of a rebound in 2003, although the pace of
recovery remained slow. Health care, hospitality and residential construction
were the major sources of new jobs. Manufacturing remained sluggish, with
technology still slow to gain traction. The state's September 2003 jobless
rate was 6.4%, down from 6.7% a year ago.
- - Insured* transportation bonds were the Fund's largest sector weighting at
September 30, 2003. Given the state's vast geography, the efficient transport
of passengers and freight is a key segment of California's economy. The Fund's
investments included issues for airport authorities, mass transit and toll
bridges.
- - Insured* general obligations (GOs) were key components of the Fund. Given the
state's budgetary issues, the insured* nature of the bonds added an additional
measure of protection, and provided quality and a dependable revenue stream.
- - Insured* lease revenue/certificates of participation constituted significant
investments. These issues provided financing for a broad range of public
projects, including the Sacramento City Hall Redevelopment and the San Jose
Civic Center.
- - Insured* special tax revenue bonds were a major commitment for the Fund. These
issues provide municipalities an alternative financing method for the
infrastructure, utilities and transportation projects that are needed to
support California's population growth.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 98
- - Effective Maturity: 10.2 years
- - Average Rating: AAA
- - Average Call: 8.8 years
- - Average Dollar Price: $90.62
</Table>
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of -4.54% for the year ended September 30, 2003. That return was
the result of a decrease in share price from $15.00 on September 30, 2002 to
$13.41 on September 30, 2003 and the reinvestment of $0.901 in regular monthly
dividends.(3)
- - Based on net asset value, the Fund had a total return of 2.58% for the year
ended September 30, 2003. That return was the result of a decrease in net
asset value per share from $14.76 on September 30, 2002 to $14.18 on September
30, 2003, and the reinvestment of all distributions.
- - Based on the most recent dividend and a share price of $13.41, the Fund had a
market yield of 6.71% at September 30, 2003.(4) The Fund's market yield is
equivalent to a taxable yield of 11.38%.(5)
[CHART]
RATING DISTRIBUTION(1),(2)
By total investments
<Table>
AAA 91.3%
AA 6.1%
A 2.6%
</Table>
For federal income tax purposes, 100.00% of the total dividends paid by the
Fund from net investment income during the year ended September 30, 2003
was designated as an exempt interest dividend.
FUND INFORMATION
as of September 30, 2003
PERFORMANCE(6)
Average Annual Total Returns (by share price, American Stock Exchange)
<Table>
One Year -4.54%
Life of Fund (8/30/02) -0.04
</Table>
Average Annual Total Returns (by net asset value)
<Table>
One Year 2.58%
Life of Fund (8/30/02) 5.22
</Table>
[CHART]
FIVE LARGEST CATEGORIES(1)
By net assets applicable to common shares
<Table>
Insured - Transportation* 27.4%
Insured - General Obligations* 23.1%
Insured - Lease Revenue/COPs 22.3%
Insured - Special Tax Revenue* 17.9%
Insured - Public Education* 13.3%
</Table>
- ----------
(1) Fund Statistics, Rating Distribution and Five Largest Categories are
subject to change.
(2) Rating Distribution is determined by dividing the total market value of the
issues by the total investments of the Fund.
(3) A portion of the Fund's income may be subject to federal income tax. Income
may be subject to state tax.
(4) The Fund's market yield is calculated by dividing the most recent dividend
per share by the share price at the end of the period and annualizing the
result.
(5) Taxable-equivalent yield assumes maximum 41.05% federal income tax rate. A
lower rate would result in a lower tax-equivalent figure.
(6) Returns are historical and are calculated by determining the percentage
change in share price or net asset value with all distributions reinvested.
* Private insurance does not remove the risk of loss of principal associated
with insured investments due to changes in market conditions.
Past performance is no guarantee of future results. Investment return and
share price will fluctuate so that shares, when sold, may be worth more or
less than their original cost.
5
<Page>
EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND as of September 30, 2003
INVESTMENT UPDATE
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
Portfolio Manager
MANAGEMENT UPDATE
- - The New York economy has showed positive trends in 2003. The mid-August power
outage had only a minor impact on economic activity, mainly on retailers and
temporary agencies. Manufacturing and port activity improved, while housing
and hospitality markets remained strong. The state's September 2003 jobless
rate was 6.4%, up from 6.0% a year ago.
- - Insured* transportation bonds were the Fund's largest sector weighting at
September 30, 2003. Among the Fund's investments were bonds for thruways,
bridges and tunnels, port authorities and the New York City mass transit
authority.
- - While insured* hospital bonds constituted a large Fund weighting, management
was very selective within the sector. In a very competitive market, the Fund
focused on the state's top tier institutions, including New York Presbyterian
Hospital and Memorial Sloan-Kettering.
- - The Fund's insured* education bonds were deemed attractive for their stable
tuition revenues. Investments included some of the state's most esteemed
institutions, such as Rochester Institute of Technology, Rockefeller
University and New York Medical College.
- - The Fund has continued to pursue broad diversification by sector, issuer and
coupon distribution. In addition, amid a quickening pace of refundings, call
protection remained a prime strategic consideration.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 66
- - Effective Maturity: 11.1 years
- - Average Rating: AAA
- - Average Call: 10.1 years
- - Average Dollar Price: $96.54
</Table>
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of -4.78% for the year ended September 30, 2003. That return was
the result of a decrease in share price from $15.06 on September 30, 2002 to
$13.45 on September 30, 2003 and the reinvestment of $0.900 in regular monthly
dividends.(3)
- - Based on net asset value, the Fund had a total return of 5.09% for the year
ended September 30, 2003. That return was the result of a decrease in net
asset value per share from $14.69 on September 30, 2002 to $14.48 on September
30, 2003, and the reinvestment of all distributions.
- - Based on the most recent dividend and a share price of $13.45, the Fund had a
market yield of 6.69% at September 30, 2003.(4) The Fund's market yield is
equivalent to a taxable yield of 11.15%.(5)
[CHART]
RATING DISTRIBUTION(1),(2)
By total investments
<Table>
AAA 85.7%
AA 10.8%
A 3.5%
</Table>
For federal income tax purposes, 100.00% of the total dividends paid by the
Fund from net investment income during the year ended September 30, 2003
was designated as an exempt interest dividend.
FUND INFORMATION
as of September 30, 2003
PERFORMANCE(6)
Average Annual Total Returns (by share price, American Stock Exchange)
<Table>
One Year -4.78%
Life of Fund (8/30/02) 0.09
</Table>
Average Annual Total Returns (by net asset value)
<Table>
One Year 5.09%
Life of Fund (8/30/02) 7.11
</Table>
[CHART]
FIVE LARGEST CATEGORIES(1)
By net assets applicable to common shares
<Table>
Insured - Transportation* 44.1%
Insured - Private Education* 29.3%
Insured - Hospital* 27.8%
Insured - Special Tax Revenue* 10.8%
Transportation 7.4%
</Table>
- ----------
(1) Fund Statistics, Rating Distribution and Five Largest Categories are
subject to change.
(2) Rating Distribution is determined by dividing the total market value of the
issues by the total investments of the Fund.
(3) A portion of the Fund's income may be subject to federal income tax. Income
may be subject to state tax.
(4) The Fund's market yield is calculated by dividing the most recent dividend
per share by the share price at the end of the period and annualizing the
result.
(5) Taxable-equivalent yield assumes maximum 40.01% federal income tax rate. A
lower rate would result in a lower tax-equivalent figure.
(6) Returns are historical and are calculated by determining the percentage
change in share price or net asset value with all distributions reinvested.
* Private insurance does not remove the risk of loss of principal associated
with insured investments due to changes in market conditions.
Past performance is no guarantee of future results. Investment return and
share price will fluctuate so that shares, when sold, may be worth more or
less than their original cost.
6
<Page>
INSURED MUNICIPAL BOND FUND as of September 30, 2003
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 162.2%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 5.4%
$ 3,750 California, 5.00%, 2/1/33 $ 3,623,812
15,000 California, 5.25%, 4/1/30 15,076,500
31,900 New York City, NY, 5.25%, 1/15/33 32,283,438
- ------------------------------------------------------------------------------------------
$ 50,983,750
- ------------------------------------------------------------------------------------------
HOSPITAL -- 2.4%
$ 3,500 Cuyahoga County, OH, (Cleveland Clinic Health
System), 5.50%, 1/1/29 $ 3,585,960
4,500 Highlands County, FL, Health Facilities Authority,
(Adventist Health System),
5.375%, 11/15/35(1) 4,455,495
10,500 Lehigh County, PA, General Purpose Authority,
(Lehigh Valley Health Network),
5.25%, 7/1/32 10,308,060
4,500 South Miami, FL, Health Facility Authority,
(Baptist Health), 5.25%, 11/15/33 4,531,050
- ------------------------------------------------------------------------------------------
$ 22,880,565
- ------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 14.4%
$ 21,355 Chelan County, WA, Public Utility District No. 1,
(Columbia River), (MBIA), 0.00%, 6/1/27 $ 5,589,458
10,000 Forsyth, MT, PCR, (Puget Sound Energy),
(AMBAC), 5.00%, 3/1/31 10,125,200
8,585 Nebraska Public Power District, (AMBAC),
5.00%, 1/1/27 8,733,606
26,930 Nebraska Public Power District, (AMBAC),
5.00%, 1/1/35 27,234,848
60,755 South Carolina Public Service Authority,
(FSA), 5.125%, 1/1/37 61,867,424
18,990 Southern Minnesota Municipal Power Agency,
(MBIA), 0.00%, 1/1/21 8,520,053
10,650 Southern Minnesota Municipal Power Agency,
(MBIA), 0.00%, 1/1/22 4,472,680
21,745 Southern Minnesota Municipal Power Agency,
(MBIA), 0.00%, 1/1/24 8,045,650
6,000 Westmoreland County, PA, Municipal Authority,
(MBIA), 0.00%, 8/15/23 2,196,720
- ------------------------------------------------------------------------------------------
$ 136,785,639
- ------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 9.2%
$ 9,500 Jefferson County, AL, Sewer, (FGIC),
Prerefunded to 2/1/09, 5.00%, 2/1/33 $ 10,768,060
16,850 Jefferson County, AL, Sewer, (FGIC),
Prerefunded to 2/1/12, 5.00%, 2/1/27 18,950,858
25,000 Jefferson County, AL, Sewer, (FGIC),
Prerefunded to 2/1/12, 5.00%, 2/1/32 28,117,000
$ 26,245 Jefferson County, AL, Sewer, (FGIC),
Prerefunded to 8/1/12, 5.00%, 2/1/41 $ 29,517,227
- ------------------------------------------------------------------------------------------
$ 87,353,145
- ------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 21.6%
$ 60,000 California, (XLCA), 5.00%, 10/1/28 $ 60,759,600
17,380 Chicago, IL, (MBIA), 5.00%, 1/1/41 17,454,560
15,530 Chicago, IL, Board of Education, (Chicago
School Reform), (FGIC), 0.00%, 12/1/30 3,587,119
41,300 Chicago, IL, Board of Education, (Chicago School
Reform), (FGIC), 0.00%, 12/1/21 16,570,386
36,135 Chicago, IL, Board of Education, (FGIC),
0.00%, 12/1/30 8,362,000
10,000 Chicago, IL, Board of Education, (FGIC),
0.00%, 12/1/31 2,185,500
19,000 Chicago, IL, Board of Education, (FGIC)
0.00%, 12/1/29 4,646,070
10,500 Chicago, IL, Board of Education, (FGIC)
0.00%, 12/1/29 2,570,820
10,000 Detroit, MI, School District, (FGIC),
5.00%, 5/1/32 10,130,300
14,375 Detroit, MI, School District, (FGIC),
5.25%, 5/1/28 14,987,950
20,425 Kane Cook and Du Page Counties, IL, School
District No. 46, (AMBAC), 0.00%, 1/1/21 8,581,359
50,650 Kane Cook and Du Page Counties, IL, School
District No. 46, (AMBAC), 0.00%, 1/1/22 19,879,619
10,000 King County, WA, (MBIA), 5.25%, 1/1/34 10,286,000
21,300 Washington, (Motor Vehicle Fuel), (MBIA),
0.00%, 6/1/25 6,745,923
21,125 Washington, (Motor Vehicle Fuel), (MBIA),
0.00%, 6/1/26 6,295,884
21,070 Washington, (Motor Vehicle Fuel), (MBIA),
0.00%, 6/1/27 5,947,429
21,510 Washington, (Motor Vehicle Fuel), (MBIA),
0.00%, 6/1/28 5,740,589
- ------------------------------------------------------------------------------------------
$ 204,731,108
- ------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 2.5%
$ 5,000 California Health Facilities Financing Authority,
(Sutter Health), (MBIA), 5.00%, 8/15/38 $ 5,004,550
11,700 Maryland HEFA, (Medlantic/Helix Issue),
(AMBAC), 5.25%, 8/15/38 12,596,805
6,000 Maryland HEFA, (Medlantic/Helix Issue), (FSA),
5.25%, 8/15/38 6,417,300
- ------------------------------------------------------------------------------------------
$ 24,018,655
- ------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
7
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 5.9%
$ 12,010 Anaheim, CA, Public Financing Authority Lease
Revenue, (FSA), 5.00%, 3/1/37 $ 12,087,705
42,795 San Jose, CA, Financing Authority, (Civic Center),
(AMBAC), 5.00%, 6/1/37 43,266,173
- ------------------------------------------------------------------------------------------
$ 55,353,878
- ------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 1.1%
$ 10,000 Massachusetts Development Finance Agency,
(Franklin W. Olin College), (XLCA),
5.25%, 7/1/33 $ 10,248,500
- ------------------------------------------------------------------------------------------
$ 10,248,500
- ------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 4.3%
$ 40,440 University of California, (FGIC),
5.00%, 9/1/27 $ 40,762,711
- ------------------------------------------------------------------------------------------
$ 40,762,711
- ------------------------------------------------------------------------------------------
INSURED-SEWER REVENUE -- 3.9%
$ 13,670 Chicago, IL, Wastewater Transmission, (MBIA),
0.00%, 1/1/23 $ 5,002,673
19,000 King County, WA, Sewer, (FGIC),
5.00%, 1/1/31 19,209,760
19,000 Passaic Valley, NJ, Sewer Commissioners,
(FGIC), 2.50%, 12/1/32 12,422,200
- ------------------------------------------------------------------------------------------
$ 36,634,633
- ------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 7.4%
$ 10,000 Arizona Tourism and Sports Authority,
(Multipurpose Stadium Facility), (MBIA),
5.00%, 7/1/24 $ 10,251,500
5,305 Arizona Tourism and Sports Authority,
(Multipurpose Stadium Facility), (MBIA),
5.00%, 7/1/25 5,421,710
18,980 Houston, TX, Hotel Occupancy Tax, (AMBAC),
0.00%, 9/1/24 6,238,536
20,000 Metropolitan Pier and Exposition Authority,
(McCormick Place Expansion), IL, (MBIA),
0.00%, 6/15/32 4,260,000
10,500 Reno, NV, Sales and Room Tax, (AMBAC),
5.125%, 6/1/37 10,685,325
7,815 Tustin, CA, Unified School District, (FSA),
5.00%, 9/1/38 7,879,005
25,500 Utah Transportation Authority Sales Tax, (FSA),
5.00%, 6/15/32 25,779,480
- ------------------------------------------------------------------------------------------
$ 70,515,556
- ------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 39.0%
$ 11,000 California Infrastructure and Economic
Development, (Bay Area Toll Bridges),
(AMBAC), 5.00%, 7/1/33 $ 11,156,090
10,000 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/24 3,354,600
17,000 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/25 5,378,120
10,200 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/21 4,193,730
20,000 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/24 6,641,200
12,500 Los Angeles County, CA, Metropolitan
Transportation Authority, (AMBAC),
5.00%, 7/1/25 12,552,125
19,810 Massachusetts Turnpike Authority, (AMBAC),
5.00%, 1/1/39 19,951,245
9,985 Massachusetts Turnpike Authority, Metropolitan
Highway System, (MBIA), 5.125%, 1/1/37 10,104,720
5,600 Metropolitan Transportation Authority, NY, (FGIC),
5.00%, 11/15/25 5,716,928
10,000 Metropolitan Transportation Authority, NY, (FSA),
5.00%, 11/15/30 10,149,500
23,400 Metropolitan Transportation Authority, NY, (FSA),
5.00%, 11/15/32 23,715,432
20,000 Metropolitan Transportation Authority, NY, (MBIA),
5.00%, 11/15/30 20,299,000
20,000 Nevada Department of Business and Industry,
(Las Vegas Monorail -1st Tier), (AMBAC),
5.375%, 1/1/40 20,959,800
10,070 Nevada Department of Business and Industry,
(Las Vegas Monorail), (AMBAC),
0.00%, 1/1/23 3,690,756
3,100 Nevada Department of Business and
Industry, (Las Vegas Monorail), (AMBAC),
0.00%, 1/1/28 845,990
11,500 North Texas Tollway Authority, (FGIC),
5.00%, 1/1/20 11,937,230
25,415 Northwest Parkway Public Highway Authority,
CO, (FSA), 5.25%, 6/15/41 26,282,414
75,000 San Joaquin Hills, CA, Transportation Corridor
Agency, (MBIA), 0.00%, 1/15/31 17,082,000
45,020 San Joaquin Hills, CA, Transportation Corridor
Agency, (MBIA), 0.00%, 1/15/26 13,711,291
119,000 San Joaquin Hills, CA, Transportation Corridor
Agency, (MBIA), 0.00%, 1/15/34 23,036,020
87,045 San Joaquin Hills, CA, Transportation Corridor
Agency, (Toll Road Bonds), (MBIA),
0.00%, 1/15/25 28,137,296
23,000 Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/27 6,402,050
40,165 Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/20 17,483,825
</Table>
See notes to financial statements.
8
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION (CONTINUED)
$ 59,900 Texas Turnpike Authority, (AMBAC),
5.00%, 8/15/42 $ 60,250,415
6,000 Triborough Bridge and Tunnel Authority,
NY, (MBIA), 5.00%, 11/15/32 6,080,880
- ------------------------------------------------------------------------------------------
$ 369,112,657
- ------------------------------------------------------------------------------------------
INSURED-UTILITIES -- 8.2%
$ 5,000 Illinois Development Finance Authority,
(Peoples Gas, Light and Coke), (AMBAC),
5.00%, 2/1/33 $ 5,031,200
67,000 Los Angeles, CA, Department of Water and
Power, (FGIC), 5.00%, 7/1/43 67,287,430
5,700 Philadelphia, PA, Gas Works Revenue, (FSA),
5.00%, 8/1/32 5,765,436
- ------------------------------------------------------------------------------------------
$ 78,084,066
- ------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 14.6%
$ 5,300 Arkansas Community Water System, Public
Water Authority, (MBIA), 5.00%, 10/1/42 $ 5,354,749
25,885 Atlanta, GA, Water and Wastewater, (MBIA),
5.00%, 11/1/39(2) 26,148,509
33,825 Birmingham, AL, Waterworks and Sewer Board,
(MBIA), 5.00%, 1/1/37(3) 34,134,499
23,115 Birmingham, AL, Waterworks and Sewer Board,
(MBIA), 5.00%, 1/1/43 23,305,930
26,000 East Bay, CA, Municipal Utility District Water
System, (MBIA), 5.00%, 6/1/38 26,196,040
10,000 New York City, NY, Municipal Water Finance
Authority, (Water and Sewer System), (MBIA),
5.125%, 6/15/34 10,215,500
15,250 Pittsburgh, PA, Water and Sewer Authority,
(FGIC), 0.00%, 9/1/26 4,670,618
8,500 San Antonio, TX, Water System, (FSA),
5.00%, 5/15/28 8,590,950
- ------------------------------------------------------------------------------------------
$ 138,616,795
- ------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 3.0%
$ 10,000 Baltimore, MD, (Water Projects), (FGIC),
5.125%, 7/1/42 $ 10,191,300
8,000 Chicago, IL, Water Revenue, (AMBAC),
5.00%, 11/1/26 8,092,480
5,000 Metropolitan Water District, CA, (FGIC),
5.00%, 10/1/33 5,072,750
5,000 Metropolitan Water District, CA, (FGIC),
5.00%, 10/1/36 5,068,800
- ------------------------------------------------------------------------------------------
$ 28,425,330
- ------------------------------------------------------------------------------------------
LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 2.0%
$ 8,850 New Jersey EDA, (School Facilities),
5.00%, 6/15/26 $ 8,975,139
10,000 New Jersey EDA, (School Facilities),
5.00%, 6/15/28 10,124,400
- ------------------------------------------------------------------------------------------
$ 19,099,539
- ------------------------------------------------------------------------------------------
OTHER REVENUE -- 6.0%
$ 10,000 Capital Trust Agency, FL, (Seminole Tribe
Convention), 8.95%, 10/1/33 $ 11,081,700
2,170 Capital Trust Agency, FL, (Seminole Tribe
Convention), 10.00%, 10/1/33 2,560,188
25,000 Golden Tobacco Securitization Corp., CA,
5.375%, 6/1/28 24,661,750
9,415 Tobacco Settlement Financing Corp., NJ,
6.125%, 6/1/42 7,654,489
11,750 Tobacco Settlement Financing Corp., NJ,
6.75%, 6/1/39 10,506,498
- ------------------------------------------------------------------------------------------
$ 56,464,625
- ------------------------------------------------------------------------------------------
PRIVATE EDUCATION -- 4.6%
$ 17,720 Illinois Educational Facilities Authority,
(University of Chicago), 5.25%, 7/1/41 $ 18,035,770
10,000 Massachusetts HEFA, (Harvard University),
5.125%, 7/15/37 10,295,900
15,000 North Carolina Capital Facilities Finance Agency,
(Duke University), 5.125%, 7/1/42 15,240,000
- ------------------------------------------------------------------------------------------
$ 43,571,670
- ------------------------------------------------------------------------------------------
TRANSPORTATION -- 6.7%
$ 28,500 Port Authority of New York and New Jersey,
5.00%, 9/1/38 $ 28,715,460
24,090 Triborough Bridge and Tunnel Authority, NY,
5.00%, 1/1/32 24,307,051
10,000 Triborough Bridge and Tunnel Authority, NY,
5.25%, 11/15/30 10,352,900
- ------------------------------------------------------------------------------------------
$ 63,375,411
- ------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 162.2%
(IDENTIFIED COST $1,499,155,305) $ 1,537,018,233
- ------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
9
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 0.4% $ 3,670,602
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (62.6)% $ (592,876,734)
- ------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHARES -- 100.0% $ 947,812,101
- ------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by municipalities. The
ability of the issuers of the debt securities to meet their obligations may be
affected by economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic developments, at
September 30, 2003, 83.3% of the securities in the portfolio of investments are
backed by bond insurance of various financial institutions and financial
guaranty assurance agencies. The aggregate percentage insured by financial
institutions ranged from 4.6% to 24.4% of total investments.
(1) When-issued security.
(2) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(3) Security (or a portion thereof) has been segregated to cover when-issued
securities.
See notes to financial statements.
10
<Page>
INSURED CALIFORNIA MUNICIPAL BOND FUND as of September 30, 2003
PORTFOLIO OF INVESTMENTS
Tax-Exempt Investments -- 163.4%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 6.3%
$ 5,110 Foothill/Eastern, Transportation Corridor Agency,
Escrowed to Maturity, 0.00%, 1/1/30 $ 1,309,233
18,790 Foothill/Eastern, Transportation Corridor Agency,
Escrowed to Maturity, 0.00%, 1/1/21 8,199,016
9,175 San Joaquin Hills, Transportation Corridor Agency,
Escrowed to Maturity, 0.00%, 1/1/22 3,754,960
18,100 San Joaquin Hills, Transportation Corridor Agency,
Toll Road Bonds, Escrowed to Maturity, 0.00%, 1/1/25 6,123,592
- ------------------------------------------------------------------------------------------
$ 19,386,801
- ------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 3.2%
$ 3,250 California, 5.00%, 2/1/33 $ 3,140,637
6,750 California, 5.25%, 4/1/30 6,784,425
- ------------------------------------------------------------------------------------------
$ 9,925,062
- ------------------------------------------------------------------------------------------
HOSPITAL -- 1.0%
$ 3,005 Washington Township Health Care District, 5.25%,
7/1/29 $ 3,038,115
- ------------------------------------------------------------------------------------------
$ 3,038,115
- ------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 4.2%
$ 2,500 Northern California Power Agency, (Hydroelectric),
(MBIA), 5.125%, 7/1/23 $ 2,571,600
4,000 Sacramento, Municipal Electric Utility District,
(FSA), 5.00%, 8/15/28 4,061,360
5,000 Sacramento, Municipal Electric Utility District,
(MBIA), 5.00%, 8/15/28 5,069,550
1,000 Southern California Public Power Authority,
(Magnolia Power), (AMBAC), 5.00%, 7/1/25 1,019,650
- ------------------------------------------------------------------------------------------
$ 12,722,160
- ------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 1.1%
$ 7,540 Foothill/Eastern, Transportation Corridor Agency,
(FSA), Escrowed to Maturity, 0.00%, 1/1/21 $ 3,290,079
- ------------------------------------------------------------------------------------------
$ 3,290,079
- ------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 23.1%
$ 2,840 Azusa Unified School District, (FSA), 0.00%, 7/1/25 $ 899,655
2,160 Azusa Unified School District, (FSA), 0.00%, 7/1/26 644,738
3,290 Azusa Unified School District, (FSA), 0.00%, 7/1/27 929,063
6,030 Burbank Unified School District, (FGIC), 0.00%, 8/1/21 2,475,255
1,835 Buttonwillow Union School District, (Election of 2002),
(AMBAC), 5.50%, 11/1/27 2,058,925
$ 2,180 Ceres Unified School District, (FGIC), 0.00%, 8/1/25 $ 687,550
2,900 Folsom Cordova Unified School District, (MBIA),
0.00%, 10/1/22 1,104,494
1,465 Folsom Cordova Unified School District, (MBIA),
0.00%, 10/1/23 521,100
3,100 Folsom Cordova Unified School District, (MBIA),
0.00%, 10/1/23 1,102,670
1,505 Folsom Cordova Unified School District, (MBIA),
0.00%, 10/1/25 470,493
6,555 Foothill-De Anza Community College District,
(Election of 1999), (FGIC), 0.00%, 8/1/28 1,743,106
8,500 Foothill-De Anza Community College District,
(Election of 1999), (FGIC), 0.00%, 8/1/29 2,132,140
8,865 Foothill-De Anza Community College District,
(Election of 1999), (FGIC), 0.00%, 8/1/30 2,096,838
1,835 Huntington Beach City School District, (FGIC),
0.00%, 8/1/24 615,129
2,060 Huntington Beach City School District, (FGIC),
0.00%, 8/1/25 649,703
2,140 Huntington Beach City School District, (FGIC),
0.00%, 8/1/26 635,944
2,000 Jurupa Unified School District, (FGIC),
0.00%, 8/1/23 717,540
2,875 Jurupa Unified School District, (FGIC),
0.00%, 8/1/24 963,757
3,825 Jurupa Unified School District, (FGIC), 0.00%, 8/1/25 1,206,367
2,000 Jurupa Unified School District, (FGIC), 0.00%, 8/1/26 594,340
2,235 Kings Canyon Joint Unified School District, (FGIC),
0.00%, 8/1/25 704,897
3,580 Modesto High School District, Stanislaus County,
(FGIC), 0.00%, 8/1/25 1,129,096
3,720 Orchard School District, (FGIC), 0.00%, 8/1/21 1,527,023
5,000 Riverside Unified School District, (FGIC), 5.00%,
2/1/27 5,083,650
6,135 Salinas Union High School District, (MBIA), 5.00%,
6/1/27 6,240,522
1,500 San Diego Unified School District, (FGIC), 0.00%,
7/1/20 661,740
10,000 San Diego Unified School District, (FGIC), 0.00%,
7/1/22 3,857,300
10,000 San Diego Unified School District, (FGIC), 0.00%,
7/1/23 3,603,200
3,600 San Jose Evergreen Community College District,
(MBIA), 5.00%, 9/1/26 3,666,132
8,000 San Juan Unified School District, (FSA), 0.00%,
8/1/21 3,283,920
3,735 San Mateo County Community College District, (FGIC),
0.00%, 9/1/20 1,634,361
5,000 San Mateo County Community College District, (FGIC),
0.00%, 9/1/22 1,912,350
4,365 San Mateo County Community College District, (FGIC),
0.00%, 9/1/23 1,559,309
3,955 San Mateo County Community College District, (FGIC),
0.00%, 9/1/25 1,241,870
</Table>
See notes to financial statements.
11
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS (CONTINUED)
$ 5,240 San Mateo Union High School District, (FGIC),
0.00%, 9/1/21 $ 2,142,007
2,740 Santa Ana Unified School District, (MBIA), 5.00%,
8/1/32 2,775,949
3,825 Union Elementary School District, (FGIC), 0.00%,
9/1/24 1,276,594
3,000 Ventura County Community College District, (MBIA),
5.00%, 8/1/27 3,052,290
1,985 Victor Elementary School District, (FGIC), 0.00%,
8/1/25 626,049
2,500 West Contra Costa Unified School District, (FGIC),
5.00%, 8/1/31 2,526,500
- ------------------------------------------------------------------------------------------
$ 70,753,566
- ------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 6.8%
$ 20,860 California Health Facilities Financing Authority,
(Sutter Health), (MBIA), 5.00%, 8/15/38 $ 20,878,983
- ------------------------------------------------------------------------------------------
$ 20,878,983
- ------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 22.3%
$ 2,000 Anaheim, Public Financing Authority Lease Revenue,
(FSA), 0.00%, 9/1/30 $ 468,480
5,000 Anaheim, Public Financing Authority Lease Revenue,
(FSA), 0.00%, 9/1/35 878,750
8,545 Anaheim, Public Financing Authority Lease Revenue,
(FSA), 0.00%, 9/1/29 2,123,176
30,000 Anaheim, Public Financing Authority Lease Revenue,
(FSA), 5.00%, 3/1/37 30,194,100
1,000 California Public Works Board Lease Revenue,
(Department of General Services), (AMBAC), 5.00%,
12/1/27 1,016,480
1,265 Coachella Valley Unified School District, (MBIA),
5.00%, 9/1/27 1,285,227
6,000 Sacramento Financing Authority, (City Hall
Redevelopment), (FSA), 5.00%, 12/1/28 6,094,440
15,000 San Jose Financing Authority, (Civic Center),
(AMBAC), 5.00%, 6/1/37 15,165,150
5,850 Shasta Joint Powers Financing Authority, (County
Administration Building), (MBIA), 5.00%, 4/1/29 5,940,675
5,000 Shasta Joint Powers Financing Authority, (County
Administration Building), (MBIA), 5.00%, 4/1/33 5,069,850
- ------------------------------------------------------------------------------------------
$ 68,236,328
- ------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 0.5%
$ 1,560 California Educational Facilities Authority,
(St. Mary's College of California), (MBIA), 5.125%,
10/1/26 $ 1,606,769
- ------------------------------------------------------------------------------------------
$ 1,606,769
- ------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 13.3%
$ 1,835 California University, (AMBAC), 5.00%, 11/1/33 $ 1,856,965
1,000 California University, (AMBAC), 5.125%, 11/1/26 1,026,260
22,500 University of California, (FGIC), 5.00%, 9/1/27 22,679,550
15,000 University of California, (FGIC), 5.125%, 9/1/30 15,332,250
- ------------------------------------------------------------------------------------------
$ 40,895,025
- ------------------------------------------------------------------------------------------
INSURED-SEWER REVENUE -- 7.6%
$ 23,115 East Bay Municipal Utility District Water System,
(MBIA), 5.00%, 6/1/38 $ 23,237,047
- ------------------------------------------------------------------------------------------
$ 23,237,047
- ------------------------------------------------------------------------------------------
INSURED-SPECIAL ASSESSMENT REVENUE -- 0.6%
$ 1,800 Murrieta Redevelopment Agency Tax, (MBIA),
5.00%, 8/1/32 $ 1,824,696
- ------------------------------------------------------------------------------------------
$ 1,824,696
- ------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 17.9%
$ 7,000 Manteca Redevelopment Agency, (FSA),
5.00%, 10/1/32 $ 7,097,650
2,500 North City, School Facility Financing Authority,
(AMBAC), 0.00%, 9/1/26 736,350
7,000 Pomona Public Financing Authority, (MBIA),
5.00%, 2/1/33 7,078,820
3,500 San Francisco, Bay Area Rapid Transportation
District, (AMBAC), 5.00%, 7/1/26 3,552,535
7,000 San Francisco, Bay Area Rapid Transportation
District, (AMBAC), 5.125%, 7/1/36 7,143,010
4,045 Santa Clara Valley Transportation Authority, (MBIA),
5.00%, 6/1/26 4,105,190
13,000 Tustin Unified School District, (FSA), 5.00%, 9/1/32 13,153,400
12,000 Tustin Unified School District, (FSA), 5.00%, 9/1/38 12,098,280
- ------------------------------------------------------------------------------------------
$ 54,965,235
- ------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 27.4%
$ 4,000 Alameda Corridor Transportation Authority, (MBIA),
4.75%, 1/1/25 $ 3,975,680
15,150 California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/33 15,364,978
7,250 California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/36 7,347,223
1,000 California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (FGIC), 5.00%, 7/1/29 1,015,750
35,400 Los Angeles County, Metropolitan Transportation Authority,
(AMBAC), 5.00%, 7/1/25 35,547,618
</Table>
See notes to financial statements.
12
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- (CONTINUED)
$ 13,940 Sacramento County, Airport System, (FSA),
5.00%, 7/1/27 $ 14,161,228
3,445 San Joaquin Hills, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/30 834,724
5,000 San Joaquin Hills, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/31 1,138,800
15,000 San Joaquin Hills, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/26 4,568,400
- ------------------------------------------------------------------------------------------
$ 83,954,401
- ------------------------------------------------------------------------------------------
INSURED-UTILITIES -- 4.9%
$ 14,750 Los Angeles Department of Water and Power, (MBIA),
5.125%, 7/1/41 $ 14,945,585
- ------------------------------------------------------------------------------------------
$ 14,945,585
- ------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 13.2%
$ 8,180 California Water Resource, (Central Valley), (FGIC),
5.00%, 12/1/29(1) $ 8,302,700
5,500 Contra Costa Water District, (FSA), 4.50%, 10/1/31 5,202,780
7,620 East Bay Municipal Utility District Water System,
(MBIA), 5.00%, 6/1/38 7,677,455
2,000 East Bay Municipal Utility District Water System,
(MBIA), 5.00%, 6/1/26 2,029,760
3,350 Long Beach Water Revenue, (MBIA), 5.00%, 5/1/24 3,416,632
10,000 Metropolitan Water District, CA, (FGIC), 5.00%,
10/1/36 10,137,600
3,750 San Diego, (Water Utility Fund), (FGIC), 4.75%,
8/1/28 3,709,313
- ------------------------------------------------------------------------------------------
$ 40,476,240
- ------------------------------------------------------------------------------------------
WATER REVENUE -- 10.0%
$ 4,500 California Water Resource, (Central Valley),
4.75%, 12/1/24 $ 4,490,190
4,970 California Water Resource, (Central Valley),
5.00%, 12/1/29 5,005,039
21,180 Southern California Metropolitan Water District,
5.00%, 7/1/37 21,308,351
- ------------------------------------------------------------------------------------------
$ 30,803,580
- ------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 163.4%
(IDENTIFIED COST $495,497,594) $ 500,939,672
- ------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 0.2% $ 728,491
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (63.6)% $ (195,012,040)
- ------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHARES -- 100.0% $ 306,656,123
- ------------------------------------------------------------------------------------------
</Table>
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 September 30, 2003, 87.4% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from 18.3% to 27.2% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements.
13
<Page>
INSURED NEW YORK MUNICIPAL BOND FUND as of September 30, 2003
PORTFOLIO OF INVESTMENTS
Tax-Exempt Investments -- 160.2%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 1.3%
$ 2,000 Long Island Power Authority Electric System Revenue,
5.00%, 9/1/27 $ 1,994,940
1,000 New York Power Authority, 5.25%, 11/15/40 1,027,860
- ------------------------------------------------------------------------------------------
$ 3,022,800
- ------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 4.7%
$ 3,000 New York, 5.25%, 1/15/28 $ 3,043,830
1,500 New York City, 5.00%, 9/15/22 1,515,795
3,075 New York City, 5.25%, 6/1/27 3,118,173
3,000 New York City, 5.25%, 1/15/33 3,036,060
- ------------------------------------------------------------------------------------------
$ 10,713,858
- ------------------------------------------------------------------------------------------
HOSPITAL -- 4.4%
$ 10,000 New York Dormitory Authority, (North General
Hospital), 5.00%, 2/15/25 $ 10,040,300
- ------------------------------------------------------------------------------------------
$ 10,040,300
- ------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 6.6%
$ 7,500 Long Island Power Authority Electric System Revenue,
(CIFG), 5.00%, 9/1/33 $ 7,608,150
5,000 Long Island Power Authority Electric System Revenue,
(FSA), 0.00%, 6/1/22 2,060,550
4,000 Long Island Power Authority, (FSA), 0.00%, 6/1/20 1,866,600
6,250 Long Island Power Authority, (FSA), 0.00%, 6/1/26 2,020,000
4,785 Long Island Power Authority, (FSA), 0.00%, 6/1/28 1,385,736
- ------------------------------------------------------------------------------------------
$ 14,941,036
- ------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 2.6%
$ 250 Cattaraugus County, (MBIA), 4.75%, 9/15/27 $ 249,462
3,625 Sachem Central School District, (MBIA),
5.00%, 6/15/26 3,721,534
2,005 Sachem Central School District, (MBIA),
5.00%, 6/15/27 2,055,245
- ------------------------------------------------------------------------------------------
$ 6,026,241
- ------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 27.8%
$ 17,500 New York City Health and Hospital Corp., (Health
Systems), (AMBAC), 5.00%, 2/15/23 $ 17,980,375
10,600 New York Dormitory Authority, (Hospital Surgery),
(AMBAC), 5.00%, 2/1/38 10,682,256
4,000 New York Dormitory Authority, (Memorial Sloan-
Kettering Cancer Center), (MBIA), 0.00%, 7/1/26 $ 1,276,080
23,835 New York Dormitory Authority, (Memorial Sloan-
Kettering Cancer Center), (MBIA), 0.00%, 7/1/28 6,802,986
26,070 New York Dormitory Authority, (Memorial Sloan-
Kettering Cancer Center), (MBIA), 0.00%, 7/1/29 7,046,721
2,965 New York Dormitory Authority, (Mental Health Services
Facility Improvements), (FSA), 5.25%, 8/15/30 3,051,786
5,360 New York Dormitory Authority, (Municipal Health
Facilities Improvement), (FSA), 4.75%, 1/15/29 5,316,745
5,000 New York Dormitory Authority, (New York Presbyterian
Hospital), (AMBAC), 4.75%, 8/1/27 4,891,450
6,000 New York Dormitory Authority, (New York Presbyterian
Hospital), (AMBAC), 5.00%, 8/1/32 6,062,880
- ------------------------------------------------------------------------------------------
$ 63,111,279
- ------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 29.3%
$ 8,000 New York City Industrial Development Agency,
(New York University), (AMBAC), 5.00%, 7/1/41 $ 8,076,160
11,500 New York Dormitory Authority, (Brooklyn Law School),
(XLCA), 5.125%, 7/1/30 11,755,990
5,000 New York Dormitory Authority, (Fordham University),
(MBIA), 5.00%, 7/1/28 5,063,900
1,000 New York Dormitory Authority, (Iona College), (XLCA),
5.125%, 7/1/32 1,021,140
10,000 New York Dormitory Authority, (New York Medical
College), (MBIA), 5.00%, 7/1/21 10,438,300
4,250 New York Dormitory Authority, (New York University),
(AMBAC), 5.00%, 7/1/31 4,305,547
5,020 New York Dormitory Authority, (New York University),
(AMBAC), 5.00%, 7/1/41 5,072,660
3,000 New York Dormitory Authority, (New York University),
(AMBAC), 5.50%, 7/1/40 3,424,740
13,585 New York Dormitory Authority, (Rochester Institute of
Technology), (AMBAC), 5.25%, 7/1/32 14,100,279
1,820 New York Dormitory Authority, (Rockefeller
University), (MBIA), 4.75%, 7/1/37 1,806,841
1,460 Saratoga County Industrial Development Agency,
(Skidmore College), (FSA), 4.50%, 7/1/21 1,460,482
- ------------------------------------------------------------------------------------------
$ 66,526,039
- ------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION-- 5.2%
$ 1,750 New York Dormitory Authority, (School Districts
Financing Program), (MBIA), 5.00%, 10/1/30 $ 1,775,987
10,000 New York Dormitory Authority, (University Educational
Facility), (MBIA), 4.75%, 5/15/25 10,013,900
- ------------------------------------------------------------------------------------------
$ 11,789,887
- ------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
14
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------
INSURED-SOLID WASTE -- 2.3%
$ 1,710 Ulster County Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/19 $ 853,871
1,645 Ulster County Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/20 770,255
1,790 Ulster County Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/21 785,452
1,240 Ulster County Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/22 512,492
1,090 Ulster County Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/23 422,931
1,490 Ulster County Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/24 543,001
3,735 Ulster County Resource Recovery Agency, Solid Waste
System, (AMBAC), 0.00%, 3/1/25 1,282,039
- ------------------------------------------------------------------------------------------
$ 5,170,041
- ------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 10.8%
$ 9,000 New York City Transitional Finance Authority, (Future
Tax), (MBIA), 5.00%, 5/1/31 $ 9,120,960
3,150 New York Urban Development Corp., (Personal Income
Tax), (FGIC), 5.00%, 3/15/33 3,193,785
12,000 New York Urban Development Corp., (Personal Income
Tax), (MBIA), 5.125%, 3/15/27 12,306,000
- ------------------------------------------------------------------------------------------
$ 24,620,745
- ------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 44.1%
$ 37,750 Metropolitan Transportation Authority, (FSA),
5.00%, 11/15/30 $ 38,314,362
15,560 Metropolitan Transportation Authority, (FSA),
5.00%, 11/15/32 (1) 15,769,749
5,000 New York Thruway Authority, (FGIC), 5.00%, 1/1/25 5,076,050
5,775 Port Authority of New York and New Jersey, (MBIA),
5.125%, 10/15/30 5,901,184
10,000 Triborough Bridge and Tunnel Authority, (FGIC),
5.00%, 1/1/32 10,124,000
24,600 Triborough Bridge and Tunnel Authority, (MBIA),
5.00%, 11/15/32 24,931,608
- ------------------------------------------------------------------------------------------
$ 100,116,953
- ------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 6.5%
$ 1,000 Buffalo Municipal Water Finance Authority, (FSA),
5.125%, 7/1/32 $ 1,022,570
11,000 New York City Municipal Water Finance Authority,
Water and Sewer, (MBIA), 5.125%, 6/15/34 11,237,050
2,500 Niagara Falls Public Water Authority and Sewer
System, (MBIA), 5.00%, 7/15/34 2,535,000
- ------------------------------------------------------------------------------------------
$ 14,794,620
- ------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 0.7%
$ 1,650 Buffalo Municipal Water Finance Authority, (FGIC),
5.00%, 7/1/28 $ 1,671,087
- ------------------------------------------------------------------------------------------
$ 1,671,087
- ------------------------------------------------------------------------------------------
PRIVATE EDUCATION -- 2.1%
$ 1,630 Madison County Industrial Development Agency,
(Colgate University), 5.00%, 7/1/33 $ 1,644,279
3,065 Rensselaer County Industrial Development Agency,
(Rensselaer Polytech Institute), 5.125%, 8/1/27 3,089,765
- ------------------------------------------------------------------------------------------
$ 4,734,044
- ------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE -- 0.9%
$ 1,925 New York City Transitional Finance Authority,
5.00%, 8/1/24 $ 1,964,154
- ------------------------------------------------------------------------------------------
$ 1,964,154
- ------------------------------------------------------------------------------------------
TRANSPORTATION -- 7.4%
$ 5,000 Metropolitan Transportation Authority, 5.125%, 1/1/29 $ 5,084,250
2,000 New York Thruway Authority, 5.25%, 1/1/21 2,147,040
9,500 Port Authority of New York and New Jersey,
5.00%, 9/1/38 9,571,820
- ------------------------------------------------------------------------------------------
$ 16,803,110
- ------------------------------------------------------------------------------------------
WATER AND SEWER -- 3.5%
$ 3,090 New York City Municipal Water Finance Authority,
Water and Sewer, 5.00%, 6/15/28 $ 3,134,651
1,000 New York City Municipal Water Finance Authority,
Water and Sewer, 5.125%, 6/15/31 1,018,400
3,750 New York City Municipal Water Finance Authority,
Water and Sewer, 5.125%, 6/15/32 3,816,600
- ------------------------------------------------------------------------------------------
$ 7,969,651
- ------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 160.2%
(IDENTIFIED COST $357,086,895) $ 364,015,845
- ------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 2.6% $ 5,820,993
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (62.8)% $ (142,570,564)
- ------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHARES -- 100.0% $ 227,266,274
- ------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
15
<Page>
AMBAC - AMBAC Financial Group, Inc.
CIFG - CDC IXIS Financial Guaranty North America, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by New York municipalities.
The ability of the issuers of the debt securities to meet their obligations may
be affected by economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic developments, at
September 30, 2003, 84.8% of the securities in the portfolio of investments are
backed by bond insurance of various financial institutions and financial
guaranty assurance agencies. The aggregate percentage insured by financial
institutions ranged from 2.1% to 31.9% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements.
16
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2003
FINANCIAL STATEMENTS
Statements of Assets and Liabilities
As of September 30, 2003
<Table>
<Caption>
INSURED MUNICIPAL FUND INSURED CALIFORNIA FUND INSURED NEW YORK FUND
- --------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments --
Identified cost $ 1,499,155,305 $ 495,497,594 $ 357,086,895
Unrealized appreciation 37,862,928 5,442,078 6,928,950
- --------------------------------------------------------------------------------------------------------------------------------
Investments, at value $ 1,537,018,233 $ 500,939,672 $ 364,015,845
- --------------------------------------------------------------------------------------------------------------------------------
Receivable for investments sold $ 9,419,057 $ 2,982,256 $ 3,580,462
Interest receivable 16,415,876 4,817,703 4,314,433
Prepaid expenses 978,857 54 146,403
- --------------------------------------------------------------------------------------------------------------------------------
Total assets $ 1,563,832,023 $ 508,739,685 $ 372,057,143
- --------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased $ 13,194,456 $ 3,137,254 $ 1,496,660
Payable for daily variation margin on open
financial futures contracts 3,109,600 1,277,812 226,562
Payable for when-issued securities 4,449,031 -- --
Due to bank 2,228,962 2,617,366 450,211
Accrued expenses 161,139 39,090 46,872
- --------------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 23,143,188 $ 7,071,522 $ 2,220,305
- --------------------------------------------------------------------------------------------------------------------------------
Auction preferred shares at liquidation value plus
cumulative unpaid dividends 592,876,734 195,012,040 142,570,564
- --------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to common shares $ 947,812,101 $ 306,656,123 $ 227,266,274
- --------------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Common Shares, $0.01 par value, unlimited number
of shares authorized $ 646,067 $ 216,282 $ 156,981
Additional paid-in capital 911,973,551 305,163,036 221,346,825
Accumulated net realized gain (loss) (computed on
the basis of identified cost) 2,810,915 (929,938) (587,046)
Accumulated undistributed net investment income 4,586,164 423,001 212,142
Net unrealized appreciation (computed on the basis
of identified cost) 27,795,404 1,783,742 6,137,372
- --------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to common shares $ 947,812,101 $ 306,656,123 $ 227,266,274
- --------------------------------------------------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING
(LIQUIDATION PREFERENCE OF $25,000 PER SHARE)
23,700 7,800 5,700
- --------------------------------------------------------------------------------------------------------------------------------
COMMON SHARES OUTSTANDING
64,606,667 21,628,202 15,698,145
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE
Net assets applicable to common shares DIVIDED BY
common shares issued and outstanding $ 14.67 $ 14.18 $ 14.48
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
17
<Page>
Statements of Operations
For the Year Ended September 30, 2003
<Table>
<Caption>
INSURED MUNICIPAL FUND INSURED CALIFORNIA FUND INSURED NEW YORK FUND
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 73,988,916 $ 23,804,783 $ 17,143,062
- --------------------------------------------------------------------------------------------------------------------------------
Total investment income $ 73,988,916 $ 23,804,783 $ 17,143,062
- --------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 9,593,761 $ 3,147,936 $ 2,310,673
Trustees fees and expenses 21,652 15,875 11,935
Legal and accounting services 86,390 65,256 65,592
Printing and postage 136,681 37,519 29,772
Custodian fee 333,212 201,038 153,866
Transfer and dividend disbursing agent 62,748 58,795 61,413
Preferred shares remarketing agent fee 1,361,130 443,176 326,970
Miscellaneous 76,689 31,427 28,245
- --------------------------------------------------------------------------------------------------------------------------------
Total expenses $ 11,672,263 $ 4,001,022 $ 2,988,466
- --------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee 156,364 95,699 79,047
Reduction of investment adviser fee 4,723,082 1,555,160 1,137,562
- --------------------------------------------------------------------------------------------------------------------------------
Total expense reductions $ 4,879,446 $ 1,650,859 $ 1,216,609
- --------------------------------------------------------------------------------------------------------------------------------
Net expenses $ 6,792,817 $ 2,350,163 $ 1,771,857
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 67,196,099 $ 21,454,620 $ 15,371,205
- --------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost basis) (2,782,848) (4,263,149) (1,623,325)
Financial futures contracts 5,126,230 2,827,060 1,008,360
- --------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) $ 2,343,382 $ (1,436,089) $ (614,965)
- --------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) 9,046,623 (3,520,395) 1,473,768
Financial futures contracts (10,067,524) (3,658,336) (791,578)
- --------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) $ (1,020,901) $ (7,178,731) $ 682,190
- --------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) $ 1,322,481 $ (8,614,820) $ 67,225
- --------------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareholders $ (5,871,438) $ (1,685,296) $ (1,403,053)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 62,647,142 $ 11,154,504 $ 14,035,377
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
18
<Page>
Statements of Changes in Net Assets
For the Year Ended September 30, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS INSURED MUNICIPAL FUND INSURED CALIFORNIA FUND INSURED NEW YORK FUND
- --------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 67,196,099 $ 21,454,620 $ 15,371,205
Net realized gain (loss) 2,343,382 (1,436,089) (614,965)
Net change in unrealized appreciation
(depreciation) (1,020,901) (7,178,731) 682,190
Distributions to preferred shareholders (5,871,438) (1,685,296) (1,403,053)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 62,647,142 $ 11,154,504 $ 14,035,377
- --------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareholders --
From net investment income (58,630,555) (19,464,591) (14,118,015)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions to common shareholders $ (58,630,555) $ (19,464,591) $ (14,118,015)
- --------------------------------------------------------------------------------------------------------------------------------
Capital share transactions --
Proceeds from sale of common shares(1) $ 21,487,500 $ 7,377,375 $ 6,159,750
Reinvestment of distributions to common
shareholders -- 89,787 502,907
Offering costs and preferred shares underwriting
discounts (12,311,002) (4,134,934) (3,053,056)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share
transactions $ 9,176,498 $ 3,332,228 $ 3,609,601
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 13,193,085 $ (4,977,859) $ 3,526,963
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES
At beginning of year $ 934,619,016 $ 311,633,982 $ 223,739,311
- --------------------------------------------------------------------------------------------------------------------------------
At end of year $ 947,812,101 $ 306,656,123 $ 227,266,274
- --------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES
At end of year $ 4,586,164 $ 423,001 $ 212,142
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Proceeds from sale of shares net of sales load paid of $1,012,500, $347,625
and $290,250 for Insured Municipal Bond Fund, Insured California Fund and
Insured New York Fund, respectively.
See notes to financial statements.
19
<Page>
For the Period Ended September 30, 2002(1)
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS INSURED MUNICIPAL FUND INSURED CALIFORNIA FUND INSURED NEW YORK FUND
- --------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,359,591 $ 624,419 $ 399,388
Net realized loss -- -- (9,464)
Net change in unrealized appreciation
(depreciation) 28,816,305 8,962,473 5,455,182
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 31,175,896 $ 9,586,892 $ 5,845,106
- --------------------------------------------------------------------------------------------------------------------------------
Capital share transactions --
Proceeds from sale of common shares(2) $ 903,907,500 $ 302,257,500 $ 218,098,125
Offering costs and preferred shares underwriting
discounts (564,380) (310,410) (303,920)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital
transactions $ 903,343,120 $ 301,947,090 $ 217,794,205
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets $ 934,519,016 $ 311,533,982 $ 223,639,311
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES
At beginning of period $ 100,000 $ 100,000 $ 100,000
- --------------------------------------------------------------------------------------------------------------------------------
At end of period $ 934,619,016 $ 311,633,982 $ 223,739,311
- --------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES
At end of period $ 2,359,591 $ 624,419 $ 399,388
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, August 30, 2002, to September 30,
2002.
(2) Proceeds from sale of shares net of sales load paid of $42,592,500,
$14,242,500 and $10,276,875 for Insured Municipal Fund, Insured California
Fund and Insured New York Fund, respectively.
See notes to financial statements.
20
<Page>
Financial Highlights
Selected data for a common share outstanding during the periods stated
<Table>
<Caption>
INSURED MUNICIPAL FUND
---------------------------
YEAR ENDED SEPTEMBER 30,
---------------------------
2003(1) 2002(1)(2)
- --------------------------------------------------------------------------------
Net asset value -- Beginning of year (Common
shares) $ 14.810 $ 14.325(3)
- --------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 1.041 $ 0.040
Net realized and unrealized gain 0.009 0.454
Distributions to preferred shareholders (0.091) --
- --------------------------------------------------------------------------------
Total income from operations $ 0.959 $ 0.494
- --------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.908) $ --
- --------------------------------------------------------------------------------
Total distributions to common shareholders $ (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 year (Common shares) $ 14.670 $ 14.810
- --------------------------------------------------------------------------------
Market value -- End of year (Common shares) $ 13.580 $ 15.000
- --------------------------------------------------------------------------------
Total Investment Return on Net Asset Value 5.67%(5) 3.39%(4)
- --------------------------------------------------------------------------------
Total Investment Return on Market Value (3.42)%(5) 4.71%(4)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA +,++
Net assets applicable to common shares, end of
year (000's omitted) $ 947,812 $ 934,619
Ratios (As a percentage of average net assets
applicable to common shares):
Net expenses(6) 0.75% 0.48%(7)
Net expenses after custodian fee reduction(6) 0.73% 0.46%(7)
Net investment income(6) 7.20% 3.20%(7)
Portfolio Turnover 63% 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) 1.26% 0.80%(7)
Expenses after custodian fee reduction(6) 1.24% 0.78%(7)
Net investment income(6) 6.69% 2.88%(7)
Net investment income per share $ 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 0.47%
Net expenses after custodian fee reduction 0.46%
Net investment income 4.54%
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
21
<Page>
<Table>
<Caption>
INSURED MUNICIPAL FUND
---------------------------
YEAR ENDED SEPTEMBER 30,
---------------------------
2003(1) 2002(1)(2)
- --------------------------------------------------------------------------------
+ The operating expenses of the Fund reflect a
reduction of the investment advisor fee. Had
such action not been taken, the ratios would
have been as follows:
Ratios (As a percentage of average total net
assets):
Expenses 0.79%
Expenses after custodian fee reduction 0.78%
Net investment income 4.22%
- --------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 23,700
Asset coverage per preferred share(8) $ 65,008
Involuntary liquidation preference per
preferred share(9) $ 25,000
Approximate market value per preferred share(9) $ 25,000
- --------------------------------------------------------------------------------
</Table>
(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.
22
<Page>
<Table>
<Caption>
INSURED CALIFORNIA FUND
---------------------------
YEAR ENDED SEPTEMBER 30,
---------------------------
2003(1) 2002(1)(2)
- --------------------------------------------------------------------------------
Net asset value -- Beginning of year (Common
shares) $ 14.760 $ 14.325(3)
- --------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.993 $ 0.031
Net realized and unrealized gain (loss) (0.402) 0.420
Distributions to preferred shareholders (0.078) --
- --------------------------------------------------------------------------------
Total income from operations $ 0.513 $ 0.451
- --------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.901) $ --
- --------------------------------------------------------------------------------
Total distributions to common shareholders $ (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 year (Common shares) $ 14.180 $ 14.760
- --------------------------------------------------------------------------------
Market value -- End of year (Common shares) $ 13.410 $ 15.000
- --------------------------------------------------------------------------------
Total Investment Return on Net Asset Value 2.58%(5) 3.04%(4)
- --------------------------------------------------------------------------------
Total Investment Return on Market Value (4.54)%(5) 4.71%(4)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA +,++
Net assets applicable to common shares, end of
year (000's omitted) $ 306,656 $ 311,634
Ratios (As a percentage of average net assets
applicable to common shares):
Net expenses(6) 0.80% 0.61%(7)
Net expenses after custodian fee reduction(6) 0.77% 0.59%(7)
Net investment income(6) 7.02% 2.54%(7)
Portfolio Turnover 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) 1.31% 0.93%(7)
Expenses after custodian fee reduction(6) 1.28% 0.91%(7)
Net investment income(6) 6.51% 2.22%(7)
Net investment income per share $ 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 0.50%
Net expenses after custodian fee reduction 0.48%
Net investment income 4.42%
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
23
<Page>
<Table>
<Caption>
INSURED CALIFORNIA FUND
---------------------------
YEAR ENDED SEPTEMBER 30,
---------------------------
2003(1) 2002(1)(2)
- --------------------------------------------------------------------------------
* The operating expenses of the Fund reflect a
reduction of the investment advisor fee. Had
such action not been taken, the ratios would
have been as follows:
Ratios (As a percentage of average total net
assets):
Expenses 0.82%
Expenses after custodian fee reduction 0.80%
Net investment income 4.10%
- --------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 7,800
Asset coverage per preferred share(8) $ 64,316
Involuntary liquidation preference per
preferred share(9) $ 25,000
Approximate market value per preferred share(9) $ 25,000
- --------------------------------------------------------------------------------
</Table>
(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.
24
<Page>
<Table>
<Caption>
INSURED NEW YORK FUND
---------------------------
YEAR ENDED SEPTEMBER 30,
---------------------------
2003(1) 2002(1)(2)
- --------------------------------------------------------------------------------
Net asset value -- Beginning of year (Common
shares) $ 14.690 $ 14.325(3)
- --------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.981 $ 0.028
Net realized and unrealized gain (loss) (0.006)* 0.358
Distributions to preferred shareholders (0.090) --
- --------------------------------------------------------------------------------
Total income from operations $ 0.885 $ 0.386
- --------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.900) $ --
- --------------------------------------------------------------------------------
Total distributions to common shareholders $ (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 year (Common shares) $ 14.480 $ 14.690
- --------------------------------------------------------------------------------
Market value -- End of year (Common shares) $ 13.450 $ 15.060
- --------------------------------------------------------------------------------
Total Investment Return on Net Asset Value 5.09%(5) 2.55%(4)
- --------------------------------------------------------------------------------
Total Investment Return on Market Value (4.78)%(5) 5.13%(4)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA +,++
Net assets applicable to common shares, end of
year (000's omitted) $ 227,266 $ 223,739
Ratios (As a percentage of average net assets
applicable to common shares):
Net expenses(6) 0.83% 0.71%(7)
Net expenses after custodian fee reduction(6) 0.79% 0.68%(7)
Net investment income(6) 6.83% 2.26%(7)
Portfolio Turnover 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) 1.34% 1.03%(7)
Expenses after custodian fee reduction(6) 1.30% 1.00%(7)
Net investment income(6) 6.33% 1.94%(7)
Net investment income per share $ 0.909 $ 0.024
- --------------------------------------------------------------------------------
Ratios (As a percentage of average total net
assets):
Net expenses 0.52%
Net expenses after custodian fee reduction 0.50%
Net investment income 4.31%
Ratios (As a percentage of average total net
assets):
Expenses 0.84%
Expenses after custodian fee reduction 0.82%
Net investment income 3.99%
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
25
<Page>
<Table>
<Caption>
INSURED NEW YORK FUND
---------------------------
YEAR ENDED SEPTEMBER 30,
---------------------------
2003(1) 2002(1)(2)
- --------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 5,700
Asset coverage per preferred share $ 64,884
Involuntary liquidation preference per
preferred share $ 25,000
Approximate market value per preferred share $ 25,000
- --------------------------------------------------------------------------------
</Table>
(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.
* 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.
26
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2003
NOTES TO FINANCIAL STATEMENTS
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 the 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 are normally valued on the basis of
valuations furnished by a pricing service. Futures contracts listed on the
commodity exchanges are valued at closing settlement prices. Interest rate
swaps are normally valued on the basis of valuations furnished by a broker.
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 are valued at fair value using methods
determined in good faith by or at the direction of the Trustees.
B INVESTMENT TRANSACTIONS -- Investment transactions are recorded on a trade
date basis. Realized gains and losses from such transactions are determined
using the specific identification method. Securities purchased or sold on a
when-issued or delayed delivery basis may be settled a month or more after
the transaction date. The securities so purchased are subject to market
fluctuations during this period. To the extent that when-issued or delayed
delivery purchases are outstanding, the Fund instructs the custodian to
segregate assets in a separate account, with a current value at least equal
to the amount of its purchase commitments.
C INCOME -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount.
D 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,
2003, 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:
<Table>
<Caption>
FUND AMOUNT EXPIRES
----------------------------------------------------------------------------
Insured Municipal Fund $ 1,076,715 September 30, 2011
Insured California Municipal Fund 672,504 September 30, 2011
Insured New York Municipal Fund 1,251,495 September 30, 2011
</Table>
Additionally, at September 30, 2003, Insured Municipal Fund, Insured
California Fund and Insured New York Fund had net capital losses of
$6,521,683, $4,261,210 and $164,124, respectively, attributable to security
transactions incurred after October 31, 2002. These capital losses are
treated as arising on the first day of each Fund's taxable year ending
September 30, 2004.
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.
E 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.
F 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
27
<Page>
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.
G 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.
H 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 significant credit
balances used to reduce the Funds' custodian fees are reported as a reduction
of total expenses in the Statement of Operations.
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 have been reset every seven days
thereafter by an auction. Special dividend periods were set on the following
series:
<Table>
<Caption>
DIVIDEND
EFFECTIVE PERIOD DIVIDEND MATURITY
FUND DATE (DAYS) RATE DATE
---------------------------------------------------------------------------------------
Insured Municipal Fund Series B March 4, 2003 364 1.18% March 2, 2004
Insured Municipal Fund Series C August 6, 2003 728 1.70% August 3, 2005
Insured Municipal Fund Series D August 7, 2003 364 1.15% August 5, 2004
Insured New York Fund Series A August 4, 2003 364 1.05% August 2, 2004
</Table>
Insured Municipal Fund Series B, Series C, Series D and Insured New York Fund
Series A will pay each series' accumulated dividends on the first business
day of each month. 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 September 30, 2003 and
dividend rate ranges for the year ended September 30, 2003 are as indicated
below:
<Table>
<Caption>
PREFERRED SHARES DIVIDENDS RATE
FUND ISSUED AND OUTSTANDING RANGES
---------------------------------------------------------------------------
Insured Municipal Fund Series A 4,740 0.51%-1.60%
Insured Municipal Fund Series B 4,740 0.90%-1.55%
Insured Municipal Fund Series C 4,740 0.58%-1.70%
Insured Municipal Fund Series D 4,740 0.60%-1.55%
Insured Municipal Fund Series E 4,740 0.60%-1.55%
Insured California Fund Series A 3,900 0.40%-1.45%
Insured California Fund Series B 3,900 0.40%-1.45%
Insured New York Fund Series A 2,850 0.65%-1.65%
Insured New York Fund Series B 2,850 0.55%-1.60%
</Table>
The APS are redeemable at the option of each Fund at a redemption price equal
to $25,000 per share, plus accumulated and unpaid dividends on any dividend
payment date. The APS are also subject to mandatory redemption at a
redemption price equal to $25,000 per share, plus accumulated and unpaid
dividends, if any Fund is in default for an extended period on its asset
maintenance requirements with respect to the APS. If the dividends on the APS
shall remain unpaid in an amount equal to two full years' dividends, the
holders of the APS as a class have the right to elect a majority of the Board
of Trustees. In general, the holders of the APS and the Common Shares have
equal voting rights of one vote per share, except that the holders of the
APS, as a separate class, have the right to elect at least two members of the
Board of Trustees. The APS have a liquidation preference of $25,000 per
share, plus accumulated and unpaid dividends. Each Fund is required to
maintain certain asset coverage with respect to the APS as defined in each
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. Distribution 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. Insured
Municipal Fund Series B and Series D shares and Insured New York Series A
shares set a special dividend period of 364 days effective March 4, 2003,
August 7, 2003 and August 4, 2003, respectively. Insured
28
<Page>
Municipal Fund Series C shares set a special dividend period of 728 days
effective August 6, 2003. Insured Municipal Fund Series B, Series C, Series D
and Insured New York Fund Series A will pay each Series' accumulated
dividends on the first business day of each month. The applicable dividend
rate for APS on September 30, 2003 are listed below. For the year ended
September 30, 2003, the amount of dividends each Fund paid to Auction
Preferred shareholders and average APS dividend rates for such period were as
follows:
<Table>
<Caption>
DIVIDENDS PAID TO AVERAGE APS
APS PREFERRED SHAREHOLDERS DIVIDEND RATES
DIVIDEND RATES FOR THE YEAR FOR THE YEAR
AS OF ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
FUND 2003 2003 2003
-------------------------------------------------------------------------------------
Insured Municipal Fund
Series A 0.64% $ 1,086,544 0.99%
Insured Municipal Fund
Series B 1.18% 1,276,632 1.17%
Insured Municipal Fund
Series C 1.70% 1,234,245 1.14%
Insured Municipal Fund
Series D 1.15% 1,176,053 1.09%
Insured Municipal Fund
Series E 0.95% 1,097,964 1.00%
Insured California Fund
Series A 0.88% 829,023 0.92%
Insured California Fund
Series B 0.90% 856,273 0.95%
Insured New York Fund
Series A 1.05% 721,620 1.11%
Insured New York Fund
Series B 0.95% 681,433 1.03%
</Table>
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. These differences relate
primarily to the method for amortizing premiums.
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 year ended September 30, 2003,
the fee was equivalent to 0.65% of each Fund's average weekly gross assets
and amounted to $9,563,761, $3,147,936, and $2,310,673 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 year ended September 30, 2003, EVM contractually
waived $4,723,082, $1,555,160 and $1,137,562 of its advisory fee for Insured
Municipal Fund, Insured California Fund and Insured New York Fund,
respectively.
Certain officers and one Trustee of each Fund are officers of the above
organization.
5 INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, for the year ended September 30, 2003 were as
follows:
<Table>
Insured Municipal Fund
Purchases $ 1,505,190,345
Sales 916,497,961
Insured California Fund
Purchases $ 383,731,844
Sales 185,922,558
Insured New York Fund
Purchases $ 375,138,866
Sales 221,155,982
</Table>
29
<Page>
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 September 30, 2003, as computed for Federal
income tax purposes, were as follows:
<Table>
Insured Municipal Fund
Aggregate cost $ 1,498,813,515
-----------------------------------------------------------------
Gross unrealized appreciation $ 43,229,722
Gross unrealized depreciation (5,025,004)
-----------------------------------------------------------------
Net unrealized appreciation $ 38,204,718
-----------------------------------------------------------------
Insured California Fund
Aggregate cost $ 495,152,154
-----------------------------------------------------------------
Gross unrealized appreciation $ 7,300,237
Gross unrealized depreciation (1,512,719)
-----------------------------------------------------------------
Net unrealized appreciation $ 5,787,518
-----------------------------------------------------------------
Insured New York Fund
Aggregate cost $ 357,049,900
-----------------------------------------------------------------
Gross unrealized appreciation $ 7,381,742
Gross unrealized depreciation (415,797)
-----------------------------------------------------------------
Net unrealized appreciation $ 6,965,945
-----------------------------------------------------------------
</Table>
7 SHARES OF BENEFICIAL INTEREST
Each Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional $0.01 par value common shares. Transactions in Fund
shares were as follows:
<Table>
<Caption>
INSURED MUNICIPAL FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
2003 2002(1)
-----------------------------------------------------------------
Sales 1,500,000 63,100,000
-----------------------------------------------------------------
Net increase 1,500,000 63,100,000
-----------------------------------------------------------------
</Table>
<Table>
<Caption>
INSURED CALIFORNIA FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
2003 2002(1)
-----------------------------------------------------------------
Sales 515,000 21,100,000
Shares issued pursuant to the
Trust's dividend reinvestment plan 6,535 --
-----------------------------------------------------------------
Net increase 521,535 21,100,000
-----------------------------------------------------------------
</Table>
<Table>
<Caption>
INSURED NEW YORK FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
2003 2002(1)
-----------------------------------------------------------------
Sales 430,000 15,225,000
Shares issued pursuant to the
Trust's dividend reinvestment plan 36,478 --
-----------------------------------------------------------------
Net increase 466,478 15,225,000
-----------------------------------------------------------------
</Table>
(1) For the period from the start of business, August 30, 2002 to September
30, 2002.
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 September 30,
2003 is as follows:
Futures Contracts
<Table>
<Caption>
EXPIRATION NET UNREALIZED
FUND DATE CONTRACTS POSITION DEPRECIATION
------------------------------------------------------------------------------------------
Insured Municipal 12/03 1,660 U.S. Treasury Bond Short $ (10,067,524)
------------------------------------------------------------------------------------------
Insured California 12/03 705 U.S. Treasury Bond Short $ (3,658,336)
------------------------------------------------------------------------------------------
Insured New York 12/03 125 U.S. Treasury Bond Short $ (791,578)
</Table>
30
<Page>
At September 30, 2003, each Fund had sufficient cash and/or securities to
cover margin requirements on open futures contracts.
9 ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)
Each Fund held its Annual Meeting of Shareholders on July 25, 2003. The
following action was taken by the shareholders of each Fund:
ITEM 1: The election of Jessica M. Bibliowicz and William H. Park as Trustees
of the Fund for a three-year term expiring in 2006.
<Table>
<Caption>
NOMINEE FOR TRUSTEE NOMINEE FOR TRUSTEE
ELECTED BY ALL ELECTED BY ALL
SHAREHOLDERS SHAREHOLDERS
FUND JESSICA M. BIBLIOWICZ WILLIAM H. PARK
-----------------------------------------------------------------------------
Insured Municipal Fund
For 63,802,012 63,812,184
Withheld 466,832 456,660
Insured California Fund
For 21,285,020 21,288,260
Withheld 209,392 206,152
Insured New York Fund
For 15,317,696 15,315,547
Withheld 161,939 164,088
</Table>
Mr. Park replaces Donald R. Dwight as a Trustee of each Fund. As of July
2003, Mr. Dwight retired from each Fund's Board of Trustees. In addition, at
their June 2003 Board meeting, the Trustees of each Fund appointed Ronald A.
Pearlman as a new Trustee of each Fund. As of June 2003, each Fund's Audit
Committee membership also changed and now consists of the following
independent Trustees: Norton H. Reamer (chairman), Samuel L. Hayes, III,
William H. Park, and Lynn A. Stout.
31
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2003
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND SHAREHOLDERS OF EATON VANCE INSURED MUNICIPAL BOND FUND,
EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND AND EATON VANCE INSURED NEW
YORK MUNICIPALS BOND FUND:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Eaton Vance Insured Municipal Bond Fund, Eaton
Vance Insured California Municipal Bond Fund, and Eaton Vance Insured New York
Municipal Bond Fund ("the Funds") as of September 30, 2003, the related
statements of operations for the year then ended, and the statement of changes
in net assets and financial highlights for the year then ended and the period
from the start of business, August 30, 2002 to September 30, 2002. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. Our
procedures included confirmation of securities held as of September 30, 2003 by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights, referred to
above, present fairly, in all material respects, the financial position of Eaton
Vance Insured Municipal Bond Fund, Eaton Vance Insured California Municipal Bond
Fund, and Eaton Vance Insured New York Municipal Bond Fund at September 30,
2003, the results of their operations for the year then ended, the changes in
their net assets and their financial highlights for the year then ended and the
period from the start of business, August 30, 2002 to September 30, 2002, in
conformity with accounting principles generally accepted in the United States of
America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 18, 2003
32
<Page>
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.
33
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS
APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN
This form is for shareholders who hold their common shares in their own names.
If your common shares are held in the name of a brokerage firm, bank, or other
nominee, you should contact your nominee to see if it will participate in the
Plan on your behalf. If you wish to participate in the Plan, but your
brokerage firm, bank, or nominee is unable to participate on your behalf, you
should request that your common shares be re-registered in your own name which
will enable your participation in the Plan.
The following authorization and appointment is given with the understanding
that I may terminate it at any time by terminating my participation in the
Plan as provided in the terms and conditions of the Plan.
---------------------------------------------
Please print exact name on account
---------------------------------------------
Shareholder signature Date
---------------------------------------------
Shareholder signature Date
Please sign exactly as your common shares are
registered. All persons whose names appear on
the share certificate must sign.
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND
DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
THIS AUTHORIZATION FORM, WHEN SIGNED, SHOULD BE MAILED TO THE FOLLOWING
ADDRESS:
Eaton Vance Insured Municipal Bond Funds
c/o PFPC Inc.
P.O. Box 43027
Providence, RI 02940-3027
800-331-1710
NUMBER OF EMPLOYEES
Each Fund is organized as a Massachusetts business trust and is registered
under the Investment Company Act of 1940, as amended, as a closed-end,
nondiversified, management investment company and has no employees.
NUMBER OF SHAREHOLDERS
As of September 30, 2003, our records indicate that there are 356, 88 and 74
registered shareholders for Insured Municipal Fund, Insured California Fund
and Insured New York Fund, respectively, and approximately 33,100, 8,300 and
7,800 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
34
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS
MANAGEMENT AND ORGANIZATION
FUND MANAGEMENT. The Trustees and officers of Eaton Vance Insured Municipal Bond
Fund (IMF), Eaton Vance Insured California Municipal Bond Fund (ICA), and Eaton
Vance Insured New York Municipal Bond Fund (INY), (the Funds) are listed below.
Except as indicated, each individual has held the office shown or other offices
in the same company for the last five years. The "noninterested Trustees"
consist of those Trustees who are not "interested persons" of the Funds, as that
term is defined under the 1940 Act. The business address of each Trustee and
officer is The Eaton Vance Building, 255 State Street, Boston, Massachusetts
02109. As used below, "EVC" refers to Eaton Vance Corp., "EV" refers to Eaton
Vance, Inc., "EVM" refers to Eaton Vance Management, "BMR" refers to Boston
Management and Research and "EVD" refers to Eaton Vance Distributors, Inc. EVC
and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD
is the Funds' principal underwriter and a wholly-owned subsidiary of EVM.
<Table>
<Caption>
TERM OF NUMBER OF PORTFOLIOS
POSITION(S) OFFICE AND IN FUND COMPLEX
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY
DATE OF BIRTH FUNDS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD
- -----------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE(S)
Jessica M. Bibliowicz Trustee Until 2006. President and Chief Executive 191 None
11/28/59 3 Years. Officer of National Financial
Trustee Partners (financial services
since company) (since April 1999).
2002. President and Chief Operating
Officer of John A. Levin &
Co. (registered investment
adviser) (July 1997 to April
1999) and a Director of
Baker, Fentress & Company,
which owns John A. Levin &
Co. (July 1997 to April
1999). Ms. Bibliowicz is an
interested person because of
her affiliation with a
brokerage firm.
James B. Hawkes Trustee and Until 2004. Chairman, President and Chief 193 Director of EVC
11/9/41 Vice President 3 years. Executive Officer of BMR,
Trustee EVC, EVM and EV; Director of
since EV; Vice President and
2002. Director of EVD. Trustee
and/or officer of 193
registered investment
companies in the Eaton Vance
Fund Complex. Mr. Hawkes is
an interested person because
of his positions with BMR,
EVM, EVC and EV, which are
affiliates of the Funds.
</Table>
<Table>
<Caption>
TERM OF NUMBER OF PORTFOLIOS
POSITION(S) OFFICE AND IN FUND COMPLEX
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY
DATE OF BIRTH FUNDS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD
- -----------------------------------------------------------------------------------------------------------------------------------
NONINTERESTED TRUSTEE(S)
Samuel L. Hayes, III(A) Trustee Until 2004. Jacob H. Schiff Professor of 193 Director of Tiffany
2/23/35 3 years. Investment Banking Emeritus, & Co. (specialty
Trustee Harvard University Graduate retailer) and Telect,
since 2002. School of Business Inc. (telecommunication
Administration. services company)
William H. Park Trustee Until 2006. President and Chief Executive 190 None
9/19/47 3 years. Officer, Prizm Capital
Trustee Management, LLC (investment
since 2003. management firm) (since
2002). Executive Vice
President and Chief Financial
Officer, United Asset
Management Corporation (a
holding company owning
institutional investment
management firms)
(1982-2001).
Ronald A. Pearlman Trustee Until 2005. Professor of Law, Georgetown 190 None
7/10/40 3 years. University Law Center (since
Trustee 1999). Tax Partner, Covington
since 2003. & Burling, Washington, DC
(1991-2000).
</Table>
35
<Page>
<Table>
<Caption>
TERM OF NUMBER OF PORTFOLIOS
POSITION(S) OFFICE AND IN FUND COMPLEX
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY
DATE OF BIRTH FUNDS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD
- -----------------------------------------------------------------------------------------------------------------------------------
NONINTERESTED TRUSTEE(S) (CONTINUED)
Norton H. Reamer(A) Trustee Until 2005. President and Chief Executive 193 None
9/21/35 3 years. Officer of Asset Management
Trustee Finance Corp. (a specialty
since 2002. finance company serving the
investment management
industry) (since October
2003). President, Unicorn
Corporation (an investment
and financial advisory
services company) (since
September 2000). Formerly,
Chairman, Hellman, Jordan
Management Co., Inc. (an
investment management
company) (2000-2003).
Formerly, Advisory Director
of Berkshire Capital
Corporation (investment
banking firm) (2000-2003).
Formerly Chairman of the
Board, United Asset
Management Corporation (a
holding company owning
institutional investment
management firms) and
Chairman, President and
Director, UAM Funds (mutual
funds) (1980-2000).
Lynn A. Stout Trustee Until 2005. Professor of Law, University 193 None
9/14/57 3 years. of California at Los Angeles
Trustee School of Law (since July
since 2002. 2001). Formerly, Professor of
Law, Georgetown University
Law Center.
</Table>
PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES
<Table>
<Caption>
TERM OF
POSITION(S) OFFICE AND
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH FUNDS SERVICE DURING PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------
Thomas J. Fetter President Since 2002 Vice President of EVM and BMR. Trustee and President of
8/20/43 The Massachusetts Health & Education Tax-Exempt Trust.
Officer of 128 registered investment companies managed
by EVM or BMR.
Cynthia J. Clemson Vice President Since 2002 Vice President of EVM and BMR. Officer of 20 registered
3/2/63 of ICA investment companies managed by EVM or BMR.
Robert B. MacIntosh Vice President Since 2002 Vice President of EVM and BMR. Officer of 128 registered
1/22/57 investment companies managed by EVM or BMR.
Alan R. Dynner Secretary Since 2002 Vice President, Secretary and Chief Legal Officer of
10/10/40 BMR, EVM, EVD, EV and EVC. Officer of 193 registered
investment companies managed by EVM or BMR.
James L. O'Connor Treasurer Since 2002 Vice President of BMR, EVM and EVD. Officer of 115
4/1/45 registered investment companies managed by EVM or BMR.
</Table>
(1) Includes both master and feeder funds in a master-feeder structure.
(A) APS Trustee.
36
<Page>
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
INDEPENDENT AUDITORS
DELOITTE & TOUCHE LLP
200 Berkeley Street
Boston, MA 02116-5022
EATON VANCE INSURED MUNICIPAL BOND FUNDS
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
<Page>
1453-11/03 CE-IMBSRC
<Page>
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 President and
Chief Executive Officer of Prizm Capital Management, LLC (a fixed income
investment management firm). Previously, he served as Executive Vice President
and Chief Financial Officer of United Asset Management Corporation ("UAM") (a
holding company
<Page>
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 of
Unicorn Capital (an investment and financial advisory services company),
Chairman of Hellman, Jordan Management Co., Inc. (an investment management
company) and Advisory Director of Berkshire Capital Corporation (an investment
banking firm). Previously, Mr. Reamer was 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. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not required in this filing since the registrant invests exclusively in
non-voting securities.
ITEM 8. [RESERVED]
ITEM 9. 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 significant changes in the registrant's internal controls
or in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. 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.
<Page>
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 MUNICIPAL BOND FUND
By: /s/ Thomas J. Fetter
--------------------------------------
Thomas J. Fetter
President
Date: November 18, 2003
-----------------
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/ James L. O'Connor
--------------------------------------
James L. O'Connor
Treasurer
Date: November 18, 2003
-----------------
By: /s/ Thomas J. Fetter
--------------------------------------
Thomas J. Fetter
President
Date: November 18, 2003
-----------------
<Page>
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 President and
Chief Executive Officer of Prizm Capital Management, LLC (a fixed income
investment management firm). Previously, he served as Executive Vice President
and Chief Financial Officer of United Asset Management Corporation ("UAM") (a
holding company
<Page>
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 of
Unicorn Capital (an investment and financial advisory services company),
Chairman of Hellman, Jordan Management Co., Inc. (an investment management
company) and Advisory Director of Berkshire Capital Corporation (an investment
banking firm). Previously, Mr. Reamer was 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. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not required in this filing since the registrant invests exclusively in
non-voting securities.
ITEM 8. [RESERVED]
ITEM 9. 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 significant changes in the registrant's internal controls
or in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. 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.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND
By: /S/ Thomas J. Fetter
----------------------------------
Thomas J. Fetter
President
Date: November 18, 2003
-----------------
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/ James L. O'Connor
----------------------------------
James L. O'Connor
Treasurer
Date: November 18, 2003
-----------------
By: /S/ Thomas J. Fetter
----------------------------------
Thomas J. Fetter
President
Date: November 18, 2003
-----------------
<Page>
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 President and
Chief Executive Officer of Prizm Capital Management, LLC (a fixed income
investment management firm). Previously, he served as Executive Vice President
and Chief Financial Officer of United Asset Management Corporation ("UAM") (a
holding company
<Page>
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 of
Unicorn Capital (an investment and financial advisory services company),
Chairman of Hellman, Jordan Management Co., Inc. (an investment management
company) and Advisory Director of Berkshire Capital Corporation (an investment
banking firm). Previously, Mr. Reamer was 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. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not required in this filing since the registrant invests exclusively in
non-voting securities.
ITEM 8. [RESERVED]
ITEM 9. 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 significant changes in the registrant's internal controls
or in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. 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.
<Page>
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/ Thomas J. Fetter
------------------------------------
Thomas J. Fetter
President
Date: November 18, 2003
-----------------
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/ James L. O'Connor
------------------------------------
James L. O'Connor
Treasurer
Date: November 18, 2003
-----------------
By: /S/ Thomas J. Fetter
------------------------------------
Thomas J. Fetter
President
Date: November 18, 2003
-----------------