<Page>
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-21219
Eaton Vance Insured Municipal Bond Fund II
-------------------------------------------
(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: 811-21217
Eaton Vance Insured California Municipal Bond Fund II
-----------------------------------------------------
(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: 811-21222
Eaton Vance Insured Florida 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: 811-21225
Eaton Vance Insured Massachusetts 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: 811-21224
Eaton Vance Insured Michigan 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: 811-7230
Eaton Vance Insured New Jersey 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: 811-21218
Eaton Vance Insured New York Municipal Bond Fund II
---------------------------------------------------
(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: 811-21226
Eaton Vance Insured Ohio 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: 811-21227
Eaton Vance Insured Pennsylvania Municipal Bond Fund
----------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
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>
[EV LOGO]
[PHOTO IMAGE]
ANNUAL REPORT SEPTEMBER 30, 2003
[PHOTO IMAGE]
EATON VANCE INSURED MUNICIPAL BOND FUNDS
[PHOTO IMAGE]
INSURED CALIFORNIA II
INSURED MUNICIPAL II
INSURED FLORIDA
INSURED MASSACHUSETTS
INSURED MICHIGAN
INSURED NEW JERSEY
INSURED NEW YORK II
INSURED OHIO
INSURED PENNSYLVANIA
<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 FUNDS 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>
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 II 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 Thomas J.
Fetter nation. The nation's jobless rate Portfolio Manager was 6.1% in
September 2003, up from 5.6% a year ago.
- - Insured* transportation bonds remained the Fund's largest sector weighting at
September 30, 2003. Investments included bonds that funded a broad range of
transportation projects, including monorails, rapid transit, toll bridges,
tunnels, highways and turnpike authorities.
- - Insured* water and sewer issues were large commitments for the Fund. Major
cities such as Atlanta and Houston have experienced rapid population growth.
The resulting "urban sprawl" has dramatically increased the need for water
facilities and produced additional opportunities in water and sewer bonds.
- - Insured* general obligations (GOs) were a significant investment. With state
and local jurisdictions encountering revenue shortfalls and worsening budget
crises, the risk of downgrades has risen commensurately. Insured* GOs
represented high quality and a partial refuge from those pressures.
- - Insured* special tax revenue bonds constituted a major investment. These
issues provide communities a financing mechanism for public programs, such as
utilities and transportation facilities.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 53
- - Effective Maturity: 11.5 years
- - Average Rating: AAA
- - Average Call: 10.9 years
- - Average Dollar Price: $91.97
</Table>
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 2.67% for the period from inception on November 29, 2002
through September 30, 2003. That return was the result of a decrease in share
price from $14.325 (net of sales load of $0.675 per share) on November 29,
2002 to $14.00 on September 30, 2003, and the reinvestment of $0.714 in
regular monthly dividends.(3)
- - Based on net asset value, the Fund had a total return of 8.46% for the period
ended September 30, 2003. That return was the result of an increase in net
asset value from $14.325 (net of sales load of $0.675 per share) on November
29, 2002 to $14.79 on September 30, 2003, and the reinvestment of all
distributions.
- - Based on the most recent dividend and a share price of $14.00, the Fund had a
market yield of 6.81% at September 30, 2003.(4) The Fund's market yield is
equivalent to a taxable yield of 10.48%.(5)
[CHART]
RATING DISTRIBUTION(1),(2)
By total investments
<Table>
AAA 86.3%
AA 5.6%
A 7.2%
Non-Rated 0.9%
</Table>
For federal income tax purposes, 100% of the total dividends paid by the Fund
from net investment income during the period ended September 30, 2003 was
designated as an exempt interest dividend.
FUND INFORMATION
as of September 30, 2003
PERFORMANCE(6)
<Table>
Average Annual Total Return (by share price, American Stock Exchange)
Life of Fund (11/29/02) 2.67%
Average Annual Total Return (by net asset value)
Life of Fund (11/29/02) 8.46%
</Table>
[CHART]
FIVE LARGEST CATEGORIES(1)
By net assets applicable to common shares
<Table>
Insured - Transportation* 36.6%
Insured - Water & Sewer* 22.3%
Insured - General Obligations* 17.2%
Insured - Special Tax Revenue 12.0%
Insured - Utilities* 10.7%
</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 II 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 slug-with
technology still slow to gain traction. The state's September 2003 jobless
rate was 6.4%, down from 6.7% a year ago.
- - Given the state's difficult financial situation, management focused intently
on maintaining superior credit quality. The Fund had its largest sector
weighting in insured* general obligations (GOs), which provided secure income
together with diversification among state, city and county issues.
- - Insured* lease revenue/certificates of participation bonds were significant
holdings. These instruments are used issuers to provide lease financing for
various municipal projects. The economies of scale of a pooled issue can
provide low fixed-rate interest costs, an attractive feature for municipal
borrowers.
- - Insured* transportation bonds played a prominent role in the Fund. The state
continues to upgrade its highway system and terminal facilities to meet
changing needs. The Fund's holdings included issues for toll bridges and
airport authorities.
- - Management had large investments in essential services bonds, including
insured* sewer revenue issues. These issues funded sewer and wastewater
facilities, key projects for California's growing population.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 45
- - Effective Maturity: 9.5 years
- - Average Rating: AAA
- - Average Call: 8.9 years
- - Average Dollar Price: $95.42
</Table>
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 1.06% for the period from inception on November 29, 2002
through September 30, 2003. That return was the result of a decrease in share
price from $14.325 (net of sales load of $0.675 per share) on November 29,
2002 to $13.80 on September 30, 2003, and the reinvestment of $0.675 in
regular monthly dividends.(3)
- - Based on net asset value, the Fund had a total return of 6.62% for the period
ended September 30, 2003. That return was the result of an increase in net
asset value from $14.325 (net of sales load of $0.675 per share) on November
29, 2002 to $14.56 on September 30, 2003, and the reinvestment of all
distributions.
- - Based on the most recent dividend and a share price of $13.80, the Fund had a
market yield of 6.52% at September 30, 2003.(4) The Fund's market yield is
equivalent to a taxable yield of 11.06%.(5)
[CHART]
RATING DISTRIBUTION(1),(2)
By total investments
<Table>
AAA 95.3%
AA 2.8%
A 1.9%
</Table>
For federal income tax purposes, 100% of the total dividends paid by the Fund
from net investment income during the period ended September 30, 2003 was
designated as an exempt interest dividend.
FUND INFORMATION
as of September 30, 2003
PERFORMANCE(6)
<Table>
Average Annual Total Return (by share price, American Stock Exchange)
Life of Fund (11/29/02) 1.06%
Average Annual Total Return (by net asset value)
Life of Fund (11/29/02) 6.62%
</Table>
[CHART]
FIVE LARGEST CATEGORIES(1)
By net assets applicable to common shares
<Table>
Insured - General Obligations* 31.2%
Insured - Lease Revenue/COPs* 20.9%
Insured - Transportation* 18.3%
Insured - Special Assessment Revenue* 18.0%
Insured - Sewer Revenue 16.4%
</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 41.05% combined federal and state
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 FLORIDA MUNICIPAL BOND FUND as of September 30, 2003
INVESTMENT UPDATE
[PHOTO OF CYNTHIA J. CLEMSON]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
- - Florida again led the region in job creation in 2003. The service sector
remained strong, paced by health care and education, while high gas prices
slightly hurt the tourism sector. Construction continued to generate new jobs,
as single-family homebuilding benefited from still- interest rates. The
state's jobless rate was 5.2% in September 2003, down from 5.4% a year ago.
- - Insured* special tax revenue bonds were the Fund's largest sector weighting at
September 30, 2003. These issues provided a financing alternative for a
diverse range of facilities for Florida cities and towns faced with the
infrastructure needs of growing communities.
- - The Fund also had investments in insured* miscellaneous, or
non-sector-specific, bonds that funded key projects in the state. Holdings
included issues that provided sport franchise financing, bonds that aided
county tourism development and an issue that provided funding for improvements
to county transportation facilities.
- - The Fund was selective within the hospital sector, given the industry's
competitive pressures. Management focused on insured* issues of well-managed
facilities with sound financial fundamentals.
- - Insured* general obligations (GOs) represented another investment area of very
high quality. Selected issues of the state board of education and municipal
loan council provided investments insulated from economic fluctuations and
high quality profiles.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 46
- - Effective Maturity: 11.9 years
- - Average Rating: AAA
- - Average Call: 10.4 years
- - Average Dollar Price: $99.41
</Table>
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 3.08% for the period from inception on November 29, 2002
through September 30, 2003. That return was the result of a decrease in share
price from $14.325 (net of sales load of $0.675 per share) on November 29,
2002 to $14.10 on September 30, 2003, and the reinvestment of $0.675 in
regular monthly dividends.(3)
- - Based on net asset value, the Fund had a total return of 6.37% for the period
ended September 30, 2003. That return was the result of an increase in net
asset value from $14.325 (net of sales load of $0.675 per share) on November
29, 2002 to $14.55 on September 30, 2003, and the reinvestment of all
distributions.
- - Based on the most recent dividend and a share price of $14.10, the Fund had a
market yield of 6.38% at September 30, 2003.(4) The Fund's market yield is
equivalent to a taxable yield of 9.82%.(5)
[CHART]
RATING DISTRIBUTION(1),(2)
By total investments
<Table>
AAA 90.4%
AA 7.8%
A 1.8%
</Table>
For federal income tax purposes, 100% of the total dividends paid by the Fund
from net investment income during the period ended September 30, 2003 was
designated as an exempt interest dividend.
FUND INFORMATION
as of September 30, 2003
PERFORMANCE(6)
<Table>
Average Annual Total Return (by share price, American Stock Exchange)
Life of Fund (11/29/02) 3.08%
Average Annual Total Return (by net asset value)
Life of Fund (11/29/02) 6.37%
</Table>
[CHART]
FIVE LARGEST CATEGORIES(1)
By net assets applicable to common shares
<Table>
Insured - Special Tax Revenue* 36.0%
Insured - Miscellaneous* 22.7%
Insured - Hospital* 18.6%
Insured - General Obligations* 14.5%
Insured - Transportation* 8.7%
</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 intangibles 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 and state
intangibles 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>
EATON VANCE INSURED MASSACHUSETTS MUNICIPAL BOND FUND as of September 30, 2003
INVESTMENT UPDATE
[PHOTO OF ROBERT B. MacINTOSH]
Robert B. MacIntosh
Portfolio Manager
MANAGEMENT UPDATE
- - The Massachusetts economy has improved in recent months, as rising demand for
technology products and improving financial markets have boosted the state's
leading industries. The construction sector has been supported by a strong
housing market. The state's September 2003 jobless rate was 5.7%, up from 5.5%
a year ago.
- - Insured* private education bonds remained the Fund's largest sector weighting
at September 30, 2003. Massachusetts is home to some of the nation's leading
universities, which enjoy consistently strong applicant demand, sound
underlying fundamentals and a reputation as high quality issuers.
- - Insured general obligations (GOs)* were a large investment for the Fund. In
addition to state GOs, the Fund's investments focused on cities and towns with
a strong tax base and sound economic underpinning, two key determinants for
investors in general obligations.
- - Insured* lease revenue/certificates of participation (COPs) constituted
significant investments. Pooled COPs and lease revenue bonds finance purchase
of equipment and facilities and are secured by individual lease transactions
for each borrower.
- - Management used Puerto Rico bonds to add further diversification to the Fund.
The Fund's Puerto Rico investments included insured* general obligations, as
well as issues that financed electric utilities, highways, and municipal
finance and public building authorities.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 35
- - Effective Maturity: 11.8 years
- - Average Rating: AAA
- - Average Call: 9.8 years
- - Average Dollar Price: $98.68
</Table>
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 5.61% for the period from inception on November 29, 2002
through September 30, 2003. That return was the result of an increase in share
price from $14.325 (net of sales load of $0.675 per share) on November 29,
2002 to $14.45 on September 30, 2003, and the reinvestment of $0.675 in
regular monthly dividends.(3)
- - Based on net asset value, the Fund had a total return of 7.22% for the period
ended September 30, 2003. That return was the result of an increase in net
asset value from $14.325 (net of sales load of $0.675 per share) on November
29, 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 $14.45, the Fund had a
market yield of 6.23% at September 30, 2003.(4) The Fund's market yield is
equivalent to a taxable yield of 10.12%.(5)
[CHART]
RATING DISTRIBUTION(1),(2)
By total investments
<Table>
AAA 88.1%
AA 7.4%
A 1.8%
BBB 2.7%
</Table>
For federal income tax purposes, 100% of the total dividends paid by the Fund
from net investment income during the period ended September 30, 2003 was
designated as an exempt interest dividend.
FUND INFORMATION
as of September 30, 2003
PERFORMANCE(6)
<Table>
Average Annual Total Return (by share price, American Stock Exchange)
Life of Fund (11/29/02) 5.61%
Average Annual Total Return (by net asset value)
Life of Fund (11/29/02) 7.22%
</Table>
[CHART]
FIVE LARGEST CATEGORIES(1)
By net assets applicable to common shares
<Table>
Insured - Private Education* 35.1%
Insured - General Obligations* 25.1%
Insured - Lease Revenue/COPs* 15.3%
Private Education 13.2%
Insured - Hospital* 11.6%
</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 combined 38.45% federal and state
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.
7
<Page>
EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND as of September 30, 2003
INVESTMENT UPDATE
[PHOTO OF WILLIAM H. AHERN]
William H. Ahern
Portfolio Manager
MANAGEMENT UPDATE
- - Michigan's economy generated modest but uneven growth in 2003. Some
manufacturing segments have reported increased activity, although production
in the state's key auto industry was running around 4% below last year.
Residential construction remained strong, however, boosted by record low
interest rates. The state's September 2003 jobless rate was 7.4%, up from 6.1%
a year ago.
- - Insured* general obligations (GOs) constituted the Fund's largest sector
weighting at September 30, 2003. With some Michigan municipalities suffering
shortfalls in sales tax receipts, insured* GOs provided some insulation from
revenue-related uncertainties.
- - The Fund had significant investments in hospital bonds. Management remained
very selective, focusing on the more competitive institutions, with favorable
cost structures, in-demand care specialties and strategic alliances with other
hospitals.
- - The Fund maintained an exposure to essential services bonds, including
insured* water and sewer issues. Because the revenues for these issues are
based on fees and water payments, they are considered less subject to economic
fluctuations.
- - The Fund continued to emphasize diversification. Management found additional
opportunities for diversification in selected Puerto Rico bonds, including
general obligations and building authority bonds.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 33
- - Effective Maturity: 10.6 years
- - Average Rating: AAA
- - Average Call: 9.8 years
- - Average Dollar Price: $93.57
</Table>
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 5.31% for the period from inception on November 29, 2002
through September 30, 2003. That return was the result of an increase in share
price from $14.325 (net of sales load of $0.675 per share) on November 29,
2002 to $14.41 on September 30, 2003, and the reinvestment of $0.675 in
regular monthly dividends.(3)
- - Based on net asset value, the Fund had a total return of 6.12% for the period
ended September 30, 2003. That return was the result of an increase in net
asset value from $14.325 (net of sales load of $0.675 per share) on November
29, 2002 to $14.52 on September 30, 2003, and the reinvestment of all
distributions.
- - Based on the most recent dividend and a share price of $14.41, the Fund had a
market yield of 6.25% at September 30, 2003.(4) The Fund's market yield is
equivalent to a taxable yield of 10.02%.(5)
[CHART]
RATING DISTRIBUTION(1),(2)
By total investments
<Table>
AAA 82.1%
AA 4.4%
A 13.5%
</Table>
For federal income tax purposes, 100.00% of the total dividends paid by the Fund
from net investment income during the period ended September 30, 2003 was
designated as an exempt interest dividend.
FUND INFORMATION
as of September 30, 2003
PERFORMANCE(6)
<Table>
Average Annual Total Return (by share price, American Stock Exchange)
Life of Fund (11/29/02) 5.31%
Average Annual Total Return (by net asset value)
Life of Fund (11/29/02) 6.12%
</Table>
[CHART]
FIVE LARGEST CATEGORIES(1)
By net assets applicable to common shares
<Table>
Insured - General Obligations* 39.1%
Hospital 22.9%
Insured - Special Tax Revenue* 16.2%
Insured - Public Education* 15.1%
Insured - Lease Revenue/COPs* 12.6%
</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 37.60% 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.
8
<Page>
EATON VANCE INSURED NEW JERSEY MUNICIPAL BOND FUND as of September 30, 2003
INVESTMENT UPDATE
[PHOTO OF ROBERT B. MACINTOSH]
Robert B. MacIntosh
Portfolio Manager
MANAGEMENT UPDATE
- - The New Jersey economy showed signs of recovery in 2003, as earlier weakness
gave way to growing optimism from employers and increased spending by
business. Health care and business services each remained a major source of
new employment. The state's September 2003 jobless rate was 5.8%, down from
6.0% a year ago.
- - Insured* general obligations (GOs) represented the Fund's largest sector
weighting at September 30, 2003. The Fund's investments focused on GOs of
cities and townships we believe are in sound financial condition and have
relatively strong economic fundamentals.
- - Insured* public education bonds were prominent investments for the Fund. In
addition to bonds for the state universities, the Fund has investments in
issues that funded community colleges and the state's medical and dentistry
school.
- - Insured* transportation bonds were major components of the Fund. The
Portfolio's investments included issuers that have responsibility for
aviation, highways and port facilities in the southern counties of New Jersey,
as well as similar facilities in the metropolitan New York area.
- - Lease revenue/certificates of participation (COPs) were notable investments.
These bonds provided flexible and cost effective financing for a range of New
Jersey issuers, including preservation projects and the state's building
authority.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 38
- - Effective Maturity: 12.0 years
- - Average Rating: AAA
- - Average Call: 11.1 years
- - Average Dollar Price: $92.49
</Table>
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 6.14% for the period from inception on November 29, 2002
through September 30, 2003. That return was the result of an increase in share
price from $14.325 (net of sales load of $0.675 per share) on November 29,
2002 to $14.52 on September 30, 2003, and the reinvestment of $0.675 in
regular monthly dividends.(3)
- - Based on net asset value, the Fund had a total return of 7.89% for the period
ended September 30, 2003. That return was the result of an increase in net
asset value from $14.325 (net of sales load of $0.675 per share) on November
29, 2002 to $14.76 on September 30, 2003, and the reinvestment of all
distributions.
- - Based on the most recent dividend and a share price of $14.52, the Fund had a
market yield of 6.20% at September 30, 2003.(4) The Fund's market yield is
equivalent to a taxable yield of 10.19%.(5)
[CHART]
RATING DISTRIBUTION(1),(2)
By total investments
<Table>
AAA 84.6%
AA 6.3%
A 8.1%
BBB 1.0%
</Table>
For federal income tax purposes, 100.00% of the total dividends paid by the Fund
from net investment income during the period ended September 30, 2003 was
designated as an exempt interest dividend.
FUND INFORMATION
as of September 30, 2003
PERFORMANCE(6)
<Table>
Average Annual Total Return (by share price, American Stock Exchange)
Life of Fund (11/29/02) 6.14%
Average Annual Total Return (by net asset value)
Life of Fund (11/29/02) 7.89%
</Table>
[CHART]
FIVE LARGEST CATEGORIES(1)
By net assets applicable to common shares
<Table>
Insured - General Obligations* 34.0%
Insured - Public Education* 27.7%
Insured - Transportation* 17.1%
Insured - Lease Revenue/COPs* 16.4%
Transportation 15.6%
</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 39.14% 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.
9
<Page>
EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND II 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.
- - The Fund's insured* transportation bonds were the Fund's largest weighting at
September 30, 2003 and included several segments of the state's transportation
complex, including bonds for bridges and tunnels, the New York and New Jersey
port authority 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.
- - Insured* private education bonds bonds were attractive for their stable
tuition revenues and included some of the state's most esteemed institutions,
such as Fordham University, University of Rochester and Brooklyn Law School.
- - The Fund has continued to pursue broad diversification by sector, issuer and
coupon distribution. In addition, call protection remained a prime strategic
consideration.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 41
- - Effective Maturity: 11.2 years
- - Average Rating: AA+
- - Average Call: 9.4 years
- - Average Dollar Price: $96.55
</Table>
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 0.38% for the period from inception on November 29, 2002
through September 30, 2003. That return was the result of a decrease in share
price from $14.325 (net of sales load of $0.675 per share) on November 29,
2002 to $13.71 on September 30, 2003, and the reinvestment of $0.686 in
regular monthly dividends.(3)
- - Based on net asset value, the Fund had a total return of 8.87% for the period
ended September 30, 2003. That return was the result of an increase in net
asset value from $14.325 (net of sales load of $0.675 per share) on November
29, 2002 to $14.87 on September 30, 2003, and the reinvestment of all
distributions.
- - Based on the most recent dividend and a share price of $13.71, 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 11.14%.(5)
[CHART]
RATING DISTRIBUTION(1),(2)
By total investments
<Table>
AAA 83.8%
AA 6.8%
A 4.7%
BBB 3.0%
Non-Rated 1.7%
</Table>
For federal income tax purposes, 100% of the total dividends paid by the Fund
from net investment income during the period ended September 30, 2003 was
designated as an exempt interest dividend.
FUND INFORMATION0
as of September 30, 2003
PERFORMANCE(6)
<Table>
Average Annual Total Return (by share price, American Stock Exchange)
Life of Fund (11/29/02) 0.38%
Average Annual Total Return (by net asset value)
Life of Fund (11/29/02) 8.87%
</Table>
[CHART]
FIVE LARGEST CATEGORIES(1)
By net assets applicable to common shares
<Table>
Insured - Transportation* 18.6%
Insured - Hospital* 18.5%
Insured - Private Education* 18.4%
Insured - Lease Revenue/COPs* 16.3%
Insured - Public Education* 15.9%
</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.
10
<Page>
EATON VANCE INSURED OHIO MUNICIPAL BOND FUND as of September 30, 2003
INVESTMENT UPDATE
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
Portfolio Manager
MANAGEMENT UPDATE
- - Ohio's economy enjoyed increased activity in 2003. Manufacturing saw rising
production levels, although the key steel and auto segments were
disappointing. Homebuilding remained strong and commercial construction - a
laggard to date - showed sporadic signs of a renewal. The state's September
2003 jobless rate was 5.8%, up from 5.6% a year ago.
- - Insured* general obligations (GOs) were the Fund's largest sector weighting at
September 30, 2003. School district bonds remained the prime source of new GO
issuance, providing income opportunities in high quality investments.
- - The Fund had large investments in insured* public education bonds, which we
deemed attractive for their stable revenues and ability to raise tuition.
Among the investments were issues for some of Ohio's major universities,
including Ohio University and University of Cincinnati.
- - Insured* transportation bonds were a significant commitment for the Fund. The
largest such investment was an issue for Cleveland's airport system. The
Cleveland airport, which has outperformed its regional peers with respect to
on-time departures and arrivals, is currently undergoing a $1.4 billion
expansion.
- - Insured* special tax revenue bonds represented a major focus. Investments
included bonds issued to finance projects in Hamilton County, as well as some
Puerto Rico infrastructure financing authority bonds.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 38
- - Effective Maturity: 11.4 years
- - Average Rating: AAA
- - Average Call: 10.3 years
- - Average Dollar Price: $93.69
</Table>
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 5.46% for the period from inception on November 29, 2002
through September 30, 2003. That return was the result of an increase in share
price from $14.325 (net of sales load of $0.675 per share) on November 29,
2002 to $14.43 on September 30, 2003, and the reinvestment of $0.675 in
regular monthly dividends.(3)
- - Based on net asset value, the Fund had a total return of 6.85% for the period
ended September 30, 2003. That return was the result of an increase in net
asset value from $14.325 (net of sales load of $0.675 per share) on November
29, 2002 to $14.62 on September 30, 2003, and the reinvestment of all
distributions.
- - Based on the most recent dividend and a share price of $14.43, the Fund had a
market yield of 6.24% at September 30, 2003.(4) The Fund's market yield is
equivalent to a taxable yield of 10.38%.(5)
[CHART]
RATING DISTRIBUTION(1),(2)
By total investments
<Table>
AAA 82.5%
AA 11.2%
A 3.1%
Non-Rated 3.2%
</Table>
For federal income tax purposes, 100% of the total dividends paid by the Fund
from net investment income during the period ended September 30, 2003 was
designated as an exempt interest dividend.
FUND INFORMATION
as of September 30, 2003
PERFORMANCE(6)
<Table>
Average Annual Total Return (by share price, American Stock Exchange)
Life of Fund (11/29/02) 5.46%
Average Annual Total Return (by net asset value)
Life of Fund (11/29/02) 6.85%
</Table>
[CHART]
FIVE LARGEST CATEGORIES(1)
By net assets applicable to common shares
<Table>
Insured - General Obligations* 55.2%
Insured - Public Education* 16.2%
Insured - Transportation* 15.7%
Insured - Special Tax Revenue* 14.9%
Insured - Lease Revenue/COPs* 12.3%
</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 39.88% 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.
11
<Page>
EATON VANCE INSURED PENNSYLVANIA MUNICIPAL BOND FUND as of September 30, 2003
INVESTMENT UPDATE
[PHOTO OF CYNTHIA J. CLEMSON]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
- - The Pennsylvania economy has showed improvement in 2003. The service sector
provided the largest source of new jobs, especially in health care, government
and leisure. Manufacturing remained sluggish, although it fared better in
Pennsylvania than in many other states. The Commonwealth's September 2003
jobless rate was 5.3%, down from 5.7% a year ago.
- - Insured* general obligations (GOs) were the Fund's largest investments at
September 30, 2003. Insured* GOs provided the quality prized by investors, as
a slow recovery made many investors leery of some economically-sensitive
issuers.
- - The Fund's insured* transportation bonds represented a significant investment.
The largest investment was in Pennsylvania Turnpike Commission bonds, which
helped fund the Commission's efforts to modernize the 541-mile turnpike,
improve traffic flow patterns and create a more efficient toll collection
system.
- - Insured* private education bonds remained a prime focus of the Fund.
Investments included issues that financed projects for some of the state's
well-known universities, as well as private secondary schools and institutions
for career and technical training.
- - The the Fund's investments were further diversified through selective
purchases of Puerto Rico bonds. The Fund's Puerto Rico holdings included
general obligations, as well as issues that funded electric power and
transportation projects.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 47
- - Effective Maturity: 10.2 years
- - Average Rating: AAA
- - Average Call: 8.4 years
- - Average Dollar Price: $97.94
</Table>
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 4.80% for the period from inception on November 29, 2002
through September 30, 2003. That return was the result of an increase in share
price from $14.325 (net of sales load of $0.675 per share) on November 29,
2002 to $14.33 on September 30, 2003, and the reinvestment of $0.681 in
regular monthly dividends.(3)
- - Based on net asset value, the Fund had a total return of 6.63% for the period
ended September 30, 2003. That return was the result of an increase in net
asset value from $14.325 (net of sales load of $0.675 per share) on November
29, 2002 to $14.58 on September 30, 2003, and the reinvestment of all
distributions.
- - Based on the most recent dividend and a share price of $14.33, the Fund had a
market yield of 6.33% at September 30, 2003.(4) The Fund's market yield is
equivalent to a taxable yield of 10.02%.(5)
[CHART]
RATING DISTRIBUTION(1),(2)
By total investments
<Table>
AAA 94.1%
A 5.4%
BBB 0.5%
</Table>
For federal income tax purposes, 100% of the total dividends paid by the Fund
from net investment income during the period ended September 30, 2003 was
designated as an exempt interest dividend.
FUND INFORMATION
as of September 30, 2003
PERFORMANCE(6)
<Table>
Average Annual Total Return (by share price, American Stock Exchange)
Life of Fund (11/29/02) 4.80%
Average Annual Total Return (by net asset value)
Life of Fund (11/29/02) 6.63%
</Table>
[CHART]
FIVE LARGEST CATEGORIES(1)
By net assets applicable to common shares
<Table>
Insured - General Obligations* 43.6%
Insured - Transportation* 23.9%
Insured - Private Education* 20.9%
Insured - Special Tax Revenue* 14.3%
Insured - Water & Sewer* 14.0%
</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 36.82% 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 distributionsreinvested.
* 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.
12
<Page>
INSURED MUNICIPAL BOND FUND II as of September 30, 2003
PORTFOLIO OF INVESTMENTS
Tax-Exempt Investments -- 160.6%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 8.9%
$ 5,750 California, 5.25%, 4/1/30 $ 5,779,325
6,500 New York City, NY, 5.25%, 1/15/33 6,578,130
1,500 North Carolina, Variable Rate, 3/1/28(1)(2) 720,480
- -----------------------------------------------------------------------------------------------------
$ 13,077,935
- -----------------------------------------------------------------------------------------------------
HOSPITAL -- 6.2%
$ 2,000 Cuyahoga County, OH, (Cleveland Clinic Health System),
5.50%, 1/1/29 $ 2,049,120
2,500 Lehigh County, PA, General Purpose Authority, (Lehigh Valley
Health Network), 5.25%, 7/1/32 2,454,300
4,500 South Miami, FL, Health Facility Authority, (Baptist Health),
5.25%, 11/15/33 4,531,050
- -----------------------------------------------------------------------------------------------------
$ 9,034,470
- -----------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 9.7%
$ 22,685 Chelan County, WA, Public Utility District No. 1, (Columbia
River), (MBIA), 0.00%, 6/1/23 $ 7,655,053
3,500 Forsyth, MT, PCR, (Puget Sound Energy), (AMBAC),
5.00%, 3/1/31 3,543,820
3,000 Nebraska Public Power District, (AMBAC), 5.00%, 1/1/35 3,033,960
- -----------------------------------------------------------------------------------------------------
$ 14,232,833
- -----------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 6.3%
$ 8,210 Jefferson County, AL, Sewer, (FGIC), Prerefunded to
8/1/12, 5.00%, 2/1/38 $ 9,233,623
- -----------------------------------------------------------------------------------------------------
$ 9,233,623
- -----------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 17.2%
$ 1,640 California, (XLCA), Variable Rate, 10/1/28(2)(3) $ 1,702,254
10,000 Chicago, IL, Board of Education, (FGIC), 0.00%, 12/1/23 3,488,600
5,700 Chicago, IL, Board of Education, (FSA), 5.00%, 12/1/31 5,747,139
8,330 King County, WA, (MBIA), 5.25%, 1/1/34 8,568,238
2,080 Philadelphia, PA, (FSA), Variable Rate, 9/15/31(2)(3) 2,139,800
10,000 Washington, (Motor Vehicle Fuel), (MBIA),
0.00%, 12/1/23 3,502,300
- -----------------------------------------------------------------------------------------------------
$ 25,148,331
- -----------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 3.7%
$ 1,800 Maine Health and Higher Educational Facilities Authority,
(MBIA), 5.00%, 7/1/32 $ 1,817,856
$ 3,000 Maryland HEFA, Medlantic, (FSA), Variable Rate,
8/15/38(2)(3) $ 3,626,040
- -----------------------------------------------------------------------------------------------------
$ 5,443,896
- -----------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 2.9%
$ 4,250 Massachusetts Development Finance Agency, (MBIA),
5.125%, 2/1/34 $ 4,322,675
- -----------------------------------------------------------------------------------------------------
$ 4,322,675
- -----------------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 3.7%
$ 2,500 Massachusetts Development Finance Agency,
(Boston University), (XLCA), 6.00%, 5/15/59 $ 2,805,875
2,500 Massachusetts Development Finance Agency,
(Franklin W. Olin College), (XLCA), 5.25%, 7/1/33 2,562,125
- -----------------------------------------------------------------------------------------------------
$ 5,368,000
- -----------------------------------------------------------------------------------------------------
INSURED-SEWER REVENUE -- 3.3%
$ 3,510 Passaic Valley, NJ, Sewer Commissioners, (FGIC),
2.50%, 12/1/32 $ 2,294,838
2,575 Tacoma, WA, Sewer Revenue, (FGIC), 5.00%, 12/1/31 2,594,570
- -----------------------------------------------------------------------------------------------------
$ 4,889,408
- -----------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 12.0%
$ 12,000 Metropolitan Pier and Exposition Authority, (McCormick
Place Expansion), IL, (MBIA), 0.00%, 6/15/32 $ 2,556,000
11,000 Metropolitan Pier and Exposition Authority, (McCormick
Place Expansion), IL, (MBIA), 0.00%, 12/15/25 3,376,120
4,000 Metropolitan Pier and Exposition Authority, (McCormick
Place Expansion), IL, (MBIA), 5.25%, 6/15/42 4,123,680
2,165 San Jose, CA, Redevelopment Agency Tax, (MBIA),
Variable Rate, 8/1/32(2)(3) 2,233,804
5,325 Utah Transportation Authority Sales Tax, (FSA),
5.00%, 6/15/32 5,383,362
- -----------------------------------------------------------------------------------------------------
$ 17,672,966
- -----------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 36.6%
$ 4,000 California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/33 $ 4,056,760
4,000 Chicago, IL, Transportation, (Skywalk), (AMBAC),
5.25%, 1/1/31 4,136,320
1,250 Dallas, TX, Area Rapid Transportation Sales Tax, (AMBAC),
5.00%, 12/1/31 1,261,175
11,900 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/22 4,572,456
</Table>
See notes to financial statements.
13
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION (CONTINUED)
$ 12,390 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/24 $ 4,114,223
3,835 Massachusetts Turnpike Authority, Metropolitan Highway
System, (MBIA), Variable Rate, 1/1/37(2)(3) 3,905,411
13,885 Nevada Department of Business and Industry, (Las Vegas
Monorail-1st Tier), (AMBAC), 0.00%, 1/1/20 6,242,141
5,000 South Carolina Transportation Infrastructure, (AMBAC),
5.25%, 10/1/31 5,180,000
10,000 Texas Turnpike Authority, (AMBAC), 5.00%, 8/15/42 10,058,500
10,000 Triborough Bridge and Tunnel Authority, NY, (MBIA),
5.00%, 11/15/32 10,134,800
- -----------------------------------------------------------------------------------------------------
$ 53,661,786
- -----------------------------------------------------------------------------------------------------
INSURED-UTILITIES -- 10.7%
$ 8,000 Los Angeles, CA, Department of Water and Power, (FGIC),
5.00%, 7/1/43 $ 8,034,320
1,500 Los Angeles, CA, Department of Water and Power, (MBIA),
5.125%, 7/1/41 1,519,890
6,000 Philadelphia, PA, Gas Works Revenue, (FSA),
5.00%, 8/1/32 6,068,880
- -----------------------------------------------------------------------------------------------------
$ 15,623,090
- -----------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 22.3%
$ 4,740 Atlanta, GA, Water and Sewer, (FGIC),
5.00%, 11/1/38(4) $ 4,788,964
4,895 Atlanta, GA, Water and Wastewater, (MBIA),
5.00%, 11/1/39 4,944,831
10,705 Birmingham, AL, Waterworks and Sewer Board, (MBIA),
5.00%, 1/1/37 10,802,951
10,750 Houston, TX, Water & Sewer System, (FSA),
5.00%, 12/1/30 10,831,915
1,275 Pittsburgh, PA, Water and Sewer Authority, (AMBAC),
Variable Rate, 12/1/27(2)(3) 1,368,865
- -----------------------------------------------------------------------------------------------------
$ 32,737,526
- -----------------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 9.7%
$ 2,330 Contra Costa, CA, Water District, (FSA), Variable Rate,
10/1/32(2)(3) $ 2,423,550
3,450 Detroit, MI, Water Supply System, (MBIA) ,
Variable Rate, 7/1/34(2)(3) 3,576,753
3,500 Metropolitan Water District, CA, (FGIC), 5.00%, 10/1/36 3,548,160
4,610 Texas Southmost Regional Water Authority, (MBIA),
5.00%, 9/1/32 4,645,451
- -----------------------------------------------------------------------------------------------------
$ 14,193,914
- -----------------------------------------------------------------------------------------------------
OTHER REVENUE -- 1.5%
$ 1,500 Capital Trust Agency, FL, (Seminole Tribe Convention),
8.95%, 10/1/33 $ 1,662,255
430 Capital Trust Agency, FL, (Seminole Tribe Convention),
10.00%, 10/1/33 507,318
- -----------------------------------------------------------------------------------------------------
$ 2,169,573
- -----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 5.9%
$ 8,500 Metropolitan Transportation Authority of New York,
5.125%, 1/1/29 $ 8,643,225
- -----------------------------------------------------------------------------------------------------
$ 8,643,225
- -----------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 160.6%
(IDENTIFIED COST $230,834,109) $ 235,453,251
- -----------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- (0.9)% $ (1,327,682)
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (59.7)% $ (87,551,976)
- -----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHARES -- 100.0% $ 146,573,593
- -----------------------------------------------------------------------------------------------------
</Table>
FSA - Financial Security Assurance, Inc.
FGIC - Financial Guaranty Insurance Company
AMBAC - AMBAC Financial Group, 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, 86.0% 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 3.0% to 36.7% of total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements.
14
<Page>
INSURED CALIFORNIA MUNICIPAL BOND FUND II as of September 30, 2003
PORTFOLIO OF INVESTMENTS
Tax-Exempt Investments -- 158.8%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 3.0%
$ 750 California, 5.00%, 2/1/21 $ 763,110
900 California, 5.25%, 4/1/30 904,590
- -----------------------------------------------------------------------------------------------------
$ 1,667,700
- -----------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 12.2%
$ 3,475 Glendale Electric, (MBIA), 5.00%, 2/1/32 $ 3,522,677
1,650 Puerto Rico Electric Power Authority, (FSA),
Variable Rate, 7/1/29(1)(2) 1,802,542
455 Sacramento Municipal Electric Utility District, (FSA),
Variable Rate, 8/15/28(2)(3) 475,944
1,000 Southern California Public Power Authority, (Magnolia
Power), (AMBAC), 5.00%, 7/1/25 1,019,650
- -----------------------------------------------------------------------------------------------------
$ 6,820,813
- -----------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 31.2%
$ 1,250 California, (AMBAC), 5.00%, 4/1/27 $ 1,265,113
415 California, (XLCA), Variable Rate, 10/1/28(2)(3) 430,753
5,000 Clovis Unified School District, (FGIC), 0.00%, 8/1/20 2,196,850
2,000 Laguna Salada Union School District, (FGIC),
0.00%, 8/1/22 768,200
2,350 Long Beach Unified School District, (Election of 1999),
(FSA), 5.00%, 8/1/31 2,377,942
1,710 Los Angeles Unified School District, (FGIC),
5.375%, 7/1/25 1,808,000
1,945 Los Osos Community Services, Wastewater Assessment
District, (MBIA), 5.00%, 9/2/33 1,971,919
1,000 Mount Diablo Unified School District, (FSA),
5.00%, 8/1/25 1,018,170
4,300 San Mateo County Community College District, (Election
of 2001), (FGIC), 0.00%, 9/1/21 1,757,754
1,750 Santa Ana Unified School District, (MBIA), 5.00%, 8/1/32 1,772,960
3,200 Union Elementary School District, (FGIC), 0.00%, 9/1/22 1,225,280
2,600 Union Elementary School District, (FGIC), 0.00%, 9/1/23 930,072
- -----------------------------------------------------------------------------------------------------
$ 17,523,013
- -----------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 20.9%
$ 4,000 Anaheim, Public Financing Authority Lease Revenue, (FSA),
5.00%, 3/1/37 $ 4,025,880
4,250 California Public Works Board Lease Revenue, (Department
of General Services), (AMBAC), 5.00%, 12/1/27(4) 4,320,040
2,250 Orange County Water District Certificates of Participation,
(MBIA), 5.00%, 8/15/34 2,277,698
$ 1,075 San Jose Financing Authority, (Civic Center), (AMBAC),
5.00%, 6/1/32 $ 1,088,889
- -----------------------------------------------------------------------------------------------------
$ 11,712,507
- -----------------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 10.5%
$ 4,000 California University, (AMBAC), 5.00%, 11/1/33 $ 4,047,880
1,790 University of California, (FGIC), 5.125%, 9/1/31 1,832,387
- -----------------------------------------------------------------------------------------------------
$ 5,880,267
- -----------------------------------------------------------------------------------------------------
INSURED-SEWER REVENUE -- 16.4%
$ 5,700 East Bay Municipal Utility District Water System, (MBIA),
5.00%, 6/1/38 $ 5,742,978
3,425 Los Angeles Wastewater Treatment System, (FGIC),
5.00%, 6/1/28 3,476,546
- -----------------------------------------------------------------------------------------------------
$ 9,219,524
- -----------------------------------------------------------------------------------------------------
INSURED-SPECIAL ASSESSMENT REVENUE -- 18.0%
$ 2,500 Cathedral City Public Financing Authority, (Housing
Redevelopment), (MBIA), 5.00%, 8/1/33 $ 2,534,300
2,500 Cathedral City Public Financing Authority, (Tax Allocation
Redevelopment), (MBIA), 5.00%, 8/1/33 2,534,300
1,250 Irvine Public Facility and Infrastructure Authority Assessment,
(AMBAC), 5.00%, 9/2/23 1,262,125
1,750 Irvine Public Facility and Infrastructure Authority Assessment,
(AMBAC), 5.00%, 9/2/26 1,765,610
2,000 Murrieta Redevelopment Agency Tax, (MBIA),
5.00%, 8/1/32 2,027,440
- -----------------------------------------------------------------------------------------------------
$ 10,123,775
- -----------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 9.3%
$ 3,750 San Francisco Bay Area Rapid Transportation District,
(AMBAC), 5.125%, 7/1/36 $ 3,826,613
1,335 San Jose Redevelopment Agency Tax, (MBIA),
Variable Rate, 8/1/32(2)(3) 1,377,426
- -----------------------------------------------------------------------------------------------------
$ 5,204,039
- -----------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 18.3%
$ 4,000 California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/36 $ 4,053,640
2,250 Los Angeles County Metropolitan Transportation Authority,
(FGIC), 5.25%, 7/1/30 2,345,490
1,400 Sacramento County Airport System, (FSA), 5.00%, 7/1/27 1,422,218
500 San Francisco City and County Airports Commission
International, (FGIC), 5.00%, 5/1/29 504,585
</Table>
See notes to financial statements.
15
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION (CONTINUED)
$ 6,670 San Joaquin Hills Transportation Corridor Agency, (MBIA),
0.00%, 1/15/27 $ 1,921,560
- -----------------------------------------------------------------------------------------------------
$ 10,247,493
- -----------------------------------------------------------------------------------------------------
INSURED-UTILITIES -- 8.4%
$ 1,400 Los Angeles Department of Water and Power, (FGIC),
5.00%, 7/1/38 $ 1,413,230
1,500 Los Angeles Department of Water and Power, (FGIC),
5.00%, 7/1/43 1,506,435
1,750 Los Angeles Department of Water and Power, (FGIC),
5.125%, 7/1/41 1,773,205
- -----------------------------------------------------------------------------------------------------
$ 4,692,870
- -----------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 3.1%
$ 1,750 Metropolitan Water District, CA, (Southern California
Waterworks), (MBIA), 5.00%, 7/1/30 $ 1,766,240
- -----------------------------------------------------------------------------------------------------
$ 1,766,240
- -----------------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 3.0%
$ 835 Contra Costa Water District, (FSA),
Variable Rate, 10/1/32(2)(3) $ 868,525
800 Metropolitan Water District, (Southern California
Waterworks), (MBIA), Variable Rate, 7/1/27(2)(3) 814,472
- -----------------------------------------------------------------------------------------------------
$ 1,682,997
- -----------------------------------------------------------------------------------------------------
WATER REVENUE -- 4.5%
$ 2,500 California Water Resource, (Central Valley),
5.00%, 12/1/29 $ 2,517,625
- -----------------------------------------------------------------------------------------------------
$ 2,517,625
- -----------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 158.8%
(IDENTIFIED COST $87,775,098) $ 89,058,863
- -----------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.4% $ 777,031
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (60.2)% $ (33,752,500)
- -----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHARES -- 100.0% $ 56,083,394
- -----------------------------------------------------------------------------------------------------
</Table>
FSA - Financial Security Assurance, Inc.
FGIC - Financial Guaranty Insurance Company
AMBAC - AMBAC Financial Group, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by California
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at September 30, 2003, 95.3% 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 0.5% to 31.7% of total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements.
16
<Page>
INSURED FLORIDA MUNICIPAL BOND FUND as of September 30, 2003
PORTFOLIO OF INVESTMENTS
Tax-Exempt Investments -- 157.1%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 5.4%
$ 2,000 Jacksonville Electric Authority, (Electric System),
5.25%, 10/1/31 $ 2,019,340
- -----------------------------------------------------------------------------------------------------
$ 2,019,340
- -----------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 4.1%
$ 1,500 Florida Board of Education Capital Outlay, (Public
Education), 5.00%, 6/1/32 $ 1,520,685
- -----------------------------------------------------------------------------------------------------
$ 1,520,685
- -----------------------------------------------------------------------------------------------------
HOSPITAL -- 5.5%
$ 1,050 Highlands County, Health Facility Authority, (Adventist
Health), 5.25%, 11/15/23 $ 1,052,572
1,000 South Miami Health Facility Authority, (Baptist Health),
5.25%, 11/15/33 1,006,900
- -----------------------------------------------------------------------------------------------------
$ 2,059,472
- -----------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 2.9%
$ 500 Puerto Rico Electric Power Authority, (FSA),
5.125%, 7/1/26 $ 521,125
500 Puerto Rico Electric Power Authority, (FSA),
Variable Rate, 7/1/29(1)(2) 546,225
- -----------------------------------------------------------------------------------------------------
$ 1,067,350
- -----------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 3.0%
$ 1,025 Dade County, Professional Sports Franchise Facility,
(MBIA), Escrowed to Maturity, 5.25%, 10/1/30 $ 1,114,872
- -----------------------------------------------------------------------------------------------------
$ 1,114,872
- -----------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 14.5%
$ 2,500 Florida Board of Education Capital Outlay, (Public
Education), (MBIA), 5.00%, 6/1/32 $ 2,534,475
1,520 Florida Municipal Loan Council Revenue, (MBIA),
0.00%, 4/1/23 568,267
1,520 Florida Municipal Loan Council Revenue, (MBIA),
0.00%, 4/1/24 530,678
1,700 Puerto Rico General Obligation, (FSA),
5.125%, 7/1/30 1,757,307
- -----------------------------------------------------------------------------------------------------
$ 5,390,727
- -----------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 18.6%
$ 1,500 Jacksonville Economic Development Commission,
(Mayo Clinic), (MBIA), 5.50%, 11/15/36 $ 1,590,870
1,000 Jacksonville Economic Development Commission,
(Mayo Clinic), (MBIA), 5.50%, 11/15/36 1,060,580
1,500 Miami-Dade County, Health Facilities Authority,
(Miami Children's Hospital), (AMBAC), 5.125%, 8/15/26 1,538,625
1,510 Sarasota County, Public Hospital Board, (Sarasota
Memorial Hospital), (MBIA), 5.25%, 7/1/24(3) 1,618,161
1,000 Sarasota County, Public Hospital Board, (Sarasota
Memorial Hospital), (MBIA), 5.50%, 7/1/28 1,099,910
- -----------------------------------------------------------------------------------------------------
$ 6,908,146
- -----------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 7.6%
$ 1,605 Port Palm Beach District, (Improvements), (XLCA),
0.00%, 9/1/24 $ 547,819
1,950 Port Palm Beach District, (Improvements), (XLCA),
0.00%, 9/1/25 625,521
1,700 Port Palm Beach District, (Improvements), (XLCA),
0.00%, 9/1/26 512,006
1,000 Puerto Rico Public Building Authority, (XLCA),
5.50%, 7/1/21 1,144,500
- -----------------------------------------------------------------------------------------------------
$ 2,829,846
- -----------------------------------------------------------------------------------------------------
INSURED-MISCELLANEOUS -- 22.7%
$ 1,500 Miami-Dade County, (Professional Sports Franchise),
(MBIA), 4.75%, 10/1/30 $ 1,487,595
1,740 Orange County Tourist Development, (AMBAC),
5.125%, 10/1/25 1,794,410
750 Orange County Tourist Development, (AMBAC),
Variable Rate, 10/1/30(2)(4) 806,085
1,500 Polk County, Transportation Improvements, (FSA),
5.375%, 12/1/25 1,581,975
2,750 Village Center Community Development District,
(MBIA), 5.00%, 11/1/32 2,779,535
- -----------------------------------------------------------------------------------------------------
$ 8,449,600
- -----------------------------------------------------------------------------------------------------
INSURED-SEWER REVENUE -- 7.5%
$ 2,750 Pinellas County, Sewer, (FSA), 5.00%, 10/1/32 $ 2,788,472
- -----------------------------------------------------------------------------------------------------
$ 2,788,472
- -----------------------------------------------------------------------------------------------------
INSURED-SPECIAL ASSESSMENT REVENUE -- 7.6%
$ 2,780 Julington Creek, Plantation Community Development District,
(MBIA), 5.00%, 5/1/29 $ 2,812,609
- -----------------------------------------------------------------------------------------------------
$ 2,812,609
- -----------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
17
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 36.0%
$ 1,000 Bay County, Sales Tax, (AMBAC), 5.125%, 9/1/27 $ 1,028,580
1,250 Bay County, Sales Tax, (AMBAC), 5.125%, 9/1/32 1,280,787
500 Dade County, Convention Center Special Tax, (AMBAC),
5.00%, 10/1/35 503,275
1,000 Dade County, Special Obligation Residual Certificates,
(AMBAC), Variable Rate, 10/1/35(2)(4) 1,019,650
1,500 Jacksonville Capital Improvements, (AMBAC),
5.00%, 10/1/30 1,521,165
4,000 Jacksonville Transportation, (MBIA), 5.00%, 10/1/31 4,048,680
1,275 Jacksonville, Excise Tax, (FGIC), 5.125%, 10/1/27 1,311,580
225 Miami-Dade County, Special Obligation, (MBIA),
5.00%, 10/1/37 226,838
1,420 Orange County, Sales Tax, (FGIC), 5.125%, 1/1/23 1,482,636
440 Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 7/1/28(4) 465,441
1,120 Sunrise Public Facility, (MBIA), 0.00%, 10/1/20 500,405
- -----------------------------------------------------------------------------------------------------
$ 13,389,037
- -----------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 8.7%
$ 1,500 Florida Turnpike Authority, (Department of Transportation),
(FGIC), 4.50%, 7/1/27 $ 1,443,735
400 Puerto Rico Highway and Transportation Authority, (CIFG),
5.00%, 7/1/28 411,164
330 Puerto Rico Highway and Transportation Authority, (FSA),
Variable Rate, 7/1/32(2)(4) 353,899
940 Puerto Rico Highway and Transportation Authority, (MBIA),
Variable Rate, 7/1/36(2)(4) 1,022,993
- -----------------------------------------------------------------------------------------------------
$ 3,231,791
- -----------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 7.2%
$ 1,500 Marion County Utility System, (MBIA), 5.00%, 12/1/33 $ 1,520,805
1,000 Sunrise Utility System, (AMBAC), 5.50%, 10/1/18 1,153,900
- -----------------------------------------------------------------------------------------------------
$ 2,674,705
- -----------------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 5.8%
$ 1,640 Tampa Bay Water Utility System, (FGIC),
5.00%, 10/1/31 $ 1,659,959
500 Tampa Bay Water Utility System, (FGIC),
Variable Rate, 10/1/27(1)(2) 497,160
- -----------------------------------------------------------------------------------------------------
$ 2,157,119
- -----------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 157.1%
(IDENTIFIED COST $57,519,541) $ 58,413,771
- -----------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 3.4% $ 1,272,949
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (60.5)% $ (22,500,613)
- -----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHARES -- 100.0% $ 37,186,107
- -----------------------------------------------------------------------------------------------------
</Table>
FSA - Financial Security Assurance, Inc.
FGIC - Financial Guaranty Insurance Company
AMBAC - AMBAC Financial Group, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
CIFG - CDC IXIS Financial Guaranty North America, Inc.
The Fund invests primarily in debt securities issued by Florida 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, 90.4% 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 0.7% to 42.0% of total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(4) Security has been issued as a leveraged inverse floater bond.
See notes to financial statements.
18
<Page>
INSURED MASSACHUSETTS MUNICIPAL BOND FUND as of September 30, 2003
PORTFOLIO OF INVESTMENTS
Tax-Exempt Investments -- 163.2%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
HOSPITAL -- 6.2%
$ 1,500 Massachusetts HEFA, (Partners Healthcare System),
5.75%, 7/1/32 $ 1,572,870
- -----------------------------------------------------------------------------------------------------
$ 1,572,870
- -----------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 4.1%
$ 1,000 Puerto Rico Electric Power Authority, (FSA),
5.125%, 7/1/26 $ 1,042,250
- -----------------------------------------------------------------------------------------------------
$ 1,042,250
- -----------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 3.7%
$ 3,000 Massachusetts College Building Authority, (MBIA),
Escrowed to Maturity, 0.00%, 5/1/26 $ 943,020
- -----------------------------------------------------------------------------------------------------
$ 943,020
- -----------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 25.1%
$ 2,270 Boston, (MBIA), 5.00%, 2/1/23 $ 2,337,283
1,000 Martha's Vineyard, (AMBAC), 5.00%, 5/1/32(1) 1,013,800
500 Massachusetts, (MBIA), 5.00%, 8/1/27 509,120
1,020 Maynard, (MBIA), 5.50%, 2/1/22 1,129,650
1,335 Puerto Rico General Obligation, (FGIC),
Variable Rate, 7/1/32(2)(3) 1,431,681
- -----------------------------------------------------------------------------------------------------
$ 6,421,534
- -----------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 11.6%
$ 1,750 Massachusetts HEFA, (Harvard Pilgrim Health), (FSA),
5.00%, 7/1/28 $ 1,750,665
1,210 Massachusetts HEFA, (New England Medical Center),
(FGIC), 5.00%, 5/15/25 1,223,032
- -----------------------------------------------------------------------------------------------------
$ 2,973,697
- -----------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 15.3%
$ 1,750 Massachusetts Development Finance Agency, (MBIA),
5.125%, 2/1/34 $ 1,779,925
1,000 Plymouth County Correctional Facility, (AMBAC),
5.00%, 4/1/22 1,028,330
1,000 Puerto Rico Public Building Authority, (CIFG),
Variable Rate, 7/1/36(2)(3) 1,107,040
- -----------------------------------------------------------------------------------------------------
$ 3,915,295
- -----------------------------------------------------------------------------------------------------
INSURED-MISCELLANEOUS -- 7.5%
$ 1,000 Massachusetts Development Finance Agency,
(WGBH Educational Foundation), (AMBAC),
5.375%, 1/1/42 $ 1,044,930
800 Puerto Rico Municipal Finance Agency, (FSA),
Variable Rate, 8/1/27(2)(3) 863,472
- -----------------------------------------------------------------------------------------------------
$ 1,908,402
- -----------------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 35.1%
$ 1,000 Massachusetts Development Finance Agency,
(Boston University), (XLCA), 6.00%, 5/15/59 $ 1,122,330
2,000 Massachusetts Development Finance Agency,
(Franklin W. Olin College), (XLCA), 5.25%, 7/1/33 2,049,700
250 Massachusetts HEFA, (Boston College), (MBIA),
4.75%, 6/1/31 247,515
2,500 Massachusetts HEFA, (Brandeis University), (MBIA),
5.00%, 10/1/26 2,540,375
1,000 Massachusetts IFA, (College of the Holy Cross), (MBIA),
5.00%, 9/1/23 1,023,140
2,000 Massachusetts IFA, (Tufts University), (MBIA),
4.75%, 2/15/28 1,990,740
- -----------------------------------------------------------------------------------------------------
$ 8,973,800
- -----------------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 11.0%
$ 700 Massachusetts College Building Authority, (XLCA),
5.50%, 5/1/39 $ 781,109
1,000 Massachusetts HEFA, (University of Massachusetts),
(FGIC), 5.125%, 10/1/34 1,021,990
1,000 Massachusetts HEFA, (Worcester State College),
(AMBAC), 5.00%, 11/1/32 1,016,610
- -----------------------------------------------------------------------------------------------------
$ 2,819,709
- -----------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 11.4%
$ 500 Massachusetts Turnpike Authority, (AMBAC),
5.00%, 1/1/39 $ 503,565
5,700 Massachusetts Turnpike Authority, (MBIA),
0.00%, 1/1/28 1,637,325
415 Massachusetts Turnpike Authority, Metropolitan
Highway System, (MBIA), Variable Rate, 1/1/37(2)(3) 422,619
335 Puerto Rico Highway and Transportation Authority, (MBIA),
Variable Rate, 7/1/36(2)(3) 364,577
- -----------------------------------------------------------------------------------------------------
$ 2,928,086
- -----------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 9.9%
$ 2,500 Massachusetts Water Resource Authority, (FSA),
5.00%, 8/1/32 $ 2,531,725
- -----------------------------------------------------------------------------------------------------
$ 2,531,725
- -----------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
19
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
PRIVATE EDUCATION -- 13.2%
$ 500 Massachusetts Development Finance Agency,
(Massachusetts College of Pharmacy), 5.75%, 7/1/33 $ 496,075
750 Massachusetts Development Finance Agency, (Middlesex
School), 5.00%, 9/1/33 753,757
600 Massachusetts Development Finance Agency, (Western
New England College), 6.125%, 12/1/32 611,304
500 Massachusetts HEFA, (Boston College), 5.125%, 6/1/24 514,720
1,000 Massachusetts IFA, (Groton School), 5.00%, 3/1/28 1,012,440
- -----------------------------------------------------------------------------------------------------
$ 3,388,296
- -----------------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE -- 9.1%
$ 2,300 Massachusetts Bay Transportation Authority, Sales Tax,
5.00%, 7/1/32 $ 2,329,118
- -----------------------------------------------------------------------------------------------------
$ 2,329,118
- -----------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 163.2%
(IDENTIFIED COST $41,245,388) $ 41,747,802
- -----------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- (2.6)% $ (660,276)
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (60.6)% $ (15,502,014)
- -----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHARES -- 100.0% $ 25,585,512
- -----------------------------------------------------------------------------------------------------
</Table>
FSA - Financial Security Assurance, Inc.
FGIC - Financial Guaranty Insurance Company
AMBAC - AMBAC Financial Group, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
CIFG - CDC IXIS Financial Guaranty North America, Inc.
The Fund invests primarily in debt securities issued by Massachusetts
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at September 30, 2003, 82.5% 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 2.7% to 35.8% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
See notes to financial statements.
20
<Page>
INSURED MICHIGAN MUNICIPAL BOND FUND as of September 30, 2003
PORTFOLIO OF INVESTMENTS
Tax-Exempt Investments -- 160.5%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 5.9%
$ 1,250 Michigan Strategic Fund, (Detroit Edison Pollution Control),
5.45%, 9/1/29 $ 1,280,362
- -----------------------------------------------------------------------------------------------------
$ 1,280,362
- -----------------------------------------------------------------------------------------------------
HOSPITAL -- 22.9%
$ 1,000 Michigan Hospital Finance Authority, (McLaren Obligated
Group), 4.50%, 10/15/21 $ 917,030
1,000 Michigan Hospital Finance Authority, (Oakwood Hospital),
5.75%, 4/1/32 1,041,210
1,500 Michigan Hospital Finance Authority, (Sparrow Obligation
Group), 5.625%, 11/15/36 1,517,280
1,500 Michigan Hospital Finance Authority, (Trinity Health),
5.375%, 12/1/30 1,530,345
- -----------------------------------------------------------------------------------------------------
$ 5,005,865
- -----------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 2.4%
$ 500 Michigan Strategic Fund Resource Recovery, (Detroit
Edison Co.), (XLCA), 5.25%, 12/15/32 $ 516,775
- -----------------------------------------------------------------------------------------------------
$ 516,775
- -----------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 4.8%
$ 1,000 Michigan Hospital Finance Authority, (St. John Health
System), (AMBAC), Escrowed to Maturity,
5.00%, 5/15/28 $ 1,048,250
- -----------------------------------------------------------------------------------------------------
$ 1,048,250
- -----------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 39.1%
$ 1,550 Detroit School District, (School Bond Loan Fund), (FSA),
5.125%, 5/1/31 $ 1,582,736
1,960 Grand Rapids and Kent County Joint Building Authority,
(Devos Place), (MBIA), 0.00%, 12/1/27 558,953
4,000 Grand Rapids and Kent County Joint Building Authority,
(MBIA), 0.00%, 12/1/30 965,680
750 Greenville Public Schools, (MBIA), 5.00%, 5/1/25 762,510
1,000 Melvindle-Northern Allen Park School District, (Building
and Site), (FSA), 5.00%, 5/1/28 1,015,140
3,080 Okemos Public School District, (MBIA), 0.00%, 5/1/19 1,499,929
990 Portland Public Schools, (School Bond Loan Fund),
(MBIA), 5.00%, 5/1/29 1,002,771
1,095 Puerto Rico General Obligation, (FGIC),
Variable Rate, 7/1/32(1)(2) 1,174,300
- -----------------------------------------------------------------------------------------------------
$ 8,562,019
- -----------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 9.7%
$ 500 Michigan Hospital Finance Authority, Mid-Michigan
Obligation Group, (AMBAC), 5.00%, 4/15/32 $ 504,800
1,590 Royal Oak Hospital Finance Authority Revenue, (William
Beaumont Hospital), (MBIA), 5.25%, 11/15/35 1,624,487
- -----------------------------------------------------------------------------------------------------
$ 2,129,287
- -----------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 12.6%
$ 1,750 Michigan House of Representatives, (AMBAC),
0.00%, 8/15/22 $ 685,195
2,615 Michigan House of Representatives, (AMBAC),
0.00%, 8/15/23 957,404
1,000 Puerto Rico Public Building Authority, (CIFG),
Variable Rate, 7/1/36(1)(2) 1,107,040
- -----------------------------------------------------------------------------------------------------
$ 2,749,639
- -----------------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 15.1%
$ 1,500 Central Michigan University, (AMBAC),
5.05%, 10/1/32(3) $ 1,525,695
1,000 Eastern Michigan University, (FGIC), 5.00%, 6/1/28 1,015,800
750 Lake Superior University, (AMBAC), 5.125%, 11/15/26 768,173
- -----------------------------------------------------------------------------------------------------
$ 3,309,668
- -----------------------------------------------------------------------------------------------------
INSURED-SEWER REVENUE -- 5.8%
$ 1,250 Detroit Sewer Disposal, (FGIC), 5.125%, 7/1/31 $ 1,274,250
- -----------------------------------------------------------------------------------------------------
$ 1,274,250
- -----------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX -- 4.6%
$ 1,000 Ypsilanti Community Utilities Authority, (San Sewer
System), (FGIC), 5.00%, 5/1/32 $ 1,011,930
- -----------------------------------------------------------------------------------------------------
$ 1,011,930
- -----------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 16.2%
$ 500 Detroit Downtown Development, (MBIA),
4.75%, 7/1/25 $ 499,630
1,500 Lansing Building Authority, (MBIA), 5.00%, 6/1/29 1,522,305
1,500 Wayne Charter County, (Airport Hotel-Detroit Metropolitan
Airport), (MBIA), 5.00%, 12/1/30 1,520,280
- -----------------------------------------------------------------------------------------------------
$ 3,542,215
- -----------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 4.6%
$ 1,000 Michigan Trunk Line, (FSA), 5.00%, 11/1/25 $ 1,017,590
- -----------------------------------------------------------------------------------------------------
$ 1,017,590
- -----------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
21
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
INSURED-UTILITY -- 7.0%
$ 1,000 Lansing Board Water Supply, Steam and Eletctric Utility,
(FSA), 5.00%, 7/1/25 $ 1,020,440
510 Lansing Board Water Supply, Steam and Eletctric Utility,
(FSA), 5.00%, 7/1/26 519,226
- -----------------------------------------------------------------------------------------------------
$ 1,539,666
- -----------------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 9.8%
$ 1,300 Detroit Water Supply System, (FGIC), 5.00%, 7/1/30 $ 1,315,314
800 Detroit Water Supply System, (MBIA) ,
Variable Rate, 7/1/34(1)(2) 829,392
- -----------------------------------------------------------------------------------------------------
$ 2,144,706
- -----------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 160.5%
(IDENTIFIED COST $34,462,526) $ 35,132,222
- -----------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.2% $ 261,035
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (61.7)% $ (13,500,000)
- -----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHARES -- 100.0% $ 21,893,257
- -----------------------------------------------------------------------------------------------------
</Table>
FSA - Financial Security Assurance, Inc.
FGIC - Financial Guaranty Insurance Company
AMBAC - AMBAC Financial Group, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
CIFG - CDC IXIS Financial Guaranty North America, Inc.
The Fund invests primarily in debt securities issued by Michigan municipalities.
The ability of the issuers of the debt securities to meet their obligations may
be affected by economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic developments, at
September 30, 2003, 82.1% 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 1.5% to 30.7% of total investments.
(1) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(2) Security has been issued as a leveraged inverse floater bond.
(3) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements.
22
<Page>
INSURED NEW JERSEY MUNICIPAL BOND FUND as of September 30, 2003
PORTFOLIO OF INVESTMENTS
Tax-Exempt Investments -- 159.3%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
EDUCATION -- 3.4%
$ 1,250 New Jersey Educational Facilities Authority, (Steven's
Institute of Technology), 5.25%, 7/1/32 $ 1,262,725
- -----------------------------------------------------------------------------------------------------
$ 1,262,725
- -----------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 34.0%
$ 2,260 Bayonne, (FSA), 0.00%, 7/1/22 $ 892,723
2,415 Bayonne, (FSA), 0.00%, 7/1/23 890,507
1,500 Bordentown Regional School District Board of Education,
(FGIC), 5.00%, 1/15/30(1) 1,529,535
5,500 Irvington Township, (FSA), 0.00%, 7/15/26 1,678,765
1,500 Jersey City, (FSA), 5.25%, 9/1/23 1,595,955
2,340 Old Bridge Township Board of Education, (MBIA),
5.00%, 7/15/27 2,389,327
1,550 Puerto Rico General Obligation, (FGIC),
Variable Rate, 7/1/32(2)(3) 1,662,251
1,130 Rutherford Board of Education, (FGIC), 4.75%, 1/15/27 1,135,740
1,000 Washington Township and Mercer County Board of
Education, (FGIC), 5.00%, 1/1/27 1,019,230
- -----------------------------------------------------------------------------------------------------
$ 12,794,033
- -----------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 11.4%
$ 2,750 New Jersey Health Care Facilities, (Englewood Hospital),
(MBIA), 5.00%, 8/1/31 $ 2,786,080
1,500 New Jersey Health Care Facilities, (Jersey City Medical
Center), (FSA), 5.00%, 8/1/41 1,514,520
- -----------------------------------------------------------------------------------------------------
$ 4,300,600
- -----------------------------------------------------------------------------------------------------
INSURED-INDUSTRIAL DEVELOPMENT REVENUE -- 8.5%
$ 3,170 Lafayette Yard, Community Development Corporation,
(Hotel and Conference Center), (FGIC), 5.00%, 4/1/35 $ 3,194,853
- -----------------------------------------------------------------------------------------------------
$ 3,194,853
- -----------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 16.4%
$ 10,000 Garden State New Jersey Preservation Trust, (FSA),
0.00%, 11/1/28 $ 2,684,200
1,250 Middlesex County, (MBIA), 5.00%, 8/1/31 1,273,037
1,000 New Jersey Building Authority, (FSA), 5.00%, 12/15/21 1,128,580
1,000 Puerto Rico Public Building Authority, (CIFG),
Variable Rate, 7/1/36(2)(3) 1,107,040
- -----------------------------------------------------------------------------------------------------
$ 6,192,857
- -----------------------------------------------------------------------------------------------------
INSURED-MISCELLANEOUS -- 2.7%
$ 950 Puerto Rico Municipal Finance Agency, (FSA),
Variable Rate, 8/1/27(2)(3) $ 1,025,373
- -----------------------------------------------------------------------------------------------------
$ 1,025,373
- -----------------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 5.4%
$ 2,000 New Jersey Educational Facilities Authority, (Kean
University), (FGIC), 5.00%, 7/1/28 $ 2,037,420
- -----------------------------------------------------------------------------------------------------
$ 2,037,420
- -----------------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 27.7%
$ 1,400 Monmouth, (Brookdale Community College), (AMBAC),
5.00%, 8/1/29 $ 1,420,552
1,000 New Jersey Educational Facilities Authority, (Rowan
University), (FGIC), 5.00%, 7/1/27 1,019,670
1,600 New Jersey Educational Facilities Authority, (Rowan
University), (FGIC), 5.00%, 7/1/33 1,626,544
775 Rutgers University, (FGIC), 4.75%, 5/1/27 776,597
1,000 University of New Jersey Medicine and Dentistry,
(AMBAC), 5.00%, 12/1/31 1,017,230
4,490 University of New Jersey Medicine and Dentistry,
(AMBAC), 5.00%, 4/15/32 4,570,057
- -----------------------------------------------------------------------------------------------------
$ 10,430,650
- -----------------------------------------------------------------------------------------------------
INSURED-SEWER REVENUE -- 6.1%
$ 900 Long Branch Sewer Authority, (FGIC), 4.75%, 6/1/23 $ 923,769
2,100 Passaic Valley Sewer Commissioners, (FGIC),
2.50%, 12/1/32 1,372,980
- -----------------------------------------------------------------------------------------------------
$ 2,296,749
- -----------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 17.1%
$ 4,000 Delaware River and Bay Authority, (MBIA),
5.00%, 1/1/33 $ 4,078,400
1,290 Port Authority of New York and New Jersey, (FSA),
Variable Rate, 11/1/27(2)(3) 1,379,861
950 South Jersey Transportation Authority, (AMBAC),
5.00%, 11/1/29 966,074
- -----------------------------------------------------------------------------------------------------
$ 6,424,335
- -----------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 4.1%
$ 4,500 Middlesex County Improvements Authority Utilities System,
(Perth Amboy), (AMBAC), 0.00%, 9/1/24 $ 1,545,390
- -----------------------------------------------------------------------------------------------------
$ 1,545,390
- -----------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
23
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 1.4%
$ 600 Bayonne Municipal Utilities Authority, Water and Sewer
Revenue, (XLCA), Variable Rate, 4/1/11(2)(3) $ 544,818
- -----------------------------------------------------------------------------------------------------
$ 544,818
- -----------------------------------------------------------------------------------------------------
LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 4.0%
$ 1,500 New Jersey EDA, (School Facilities), 5.00%, 6/15/26 $ 1,521,210
- -----------------------------------------------------------------------------------------------------
$ 1,521,210
- -----------------------------------------------------------------------------------------------------
SENIOR LIVING / LIFE CARE -- 1.5%
$ 600 New Jersey EDA, (Fellowship Village), 5.50%, 1/1/25 $ 571,434
- -----------------------------------------------------------------------------------------------------
$ 571,434
- -----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 15.6%
$ 300 Delaware River Joint Toll Bridge Commission,
5.00%, 7/1/24 $ 305,427
1,450 Delaware River Joint Toll Bridge Commission,
5.00%, 7/1/28 1,470,909
2,250 Port Authority of New York and New Jersey,
5.00%, 9/1/38 2,267,010
1,825 South Jersey Port Authority, (Marine Terminal),
5.10%, 1/1/33 1,840,257
- -----------------------------------------------------------------------------------------------------
$ 5,883,603
- -----------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 159.3%
(IDENTIFIED COST $59,076,213) $ 60,026,050
- -----------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 0.4% $ 161,319
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (59.7)% $ (22,500,581)
- -----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHARES -- 100.0% $ 37,686,788
- -----------------------------------------------------------------------------------------------------
</Table>
FSA - Financial Security Assurance, Inc.
FGIC - Financial Guaranty Insurance Company
AMBAC - AMBAC Financial Group, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
CIFG - CDC IXIS Financial Guaranty North America, Inc.
The Fund invests primarily in debt securities issued by New Jersey
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at September 30, 2003, 84.6% 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 0.9% to 27.2% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
See notes to financial statements.
24
<Page>
INSURED NEW YORK MUNICIPAL BOND FUND II as of September 30, 2003
PORTFOLIO OF INVESTMENTS
Tax-Exempt Investments -- 157.6%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 7.3%
$ 2,750 New York, NY, 5.25%, 1/15/28 $ 2,790,177
- -----------------------------------------------------------------------------------------------------
$ 2,790,177
- -----------------------------------------------------------------------------------------------------
HOSPITAL -- 2.0%
$ 750 Suffolk County Industrial Development Agency,
(Huntington Hospital), 5.875%, 11/1/32 $ 773,377
- -----------------------------------------------------------------------------------------------------
$ 773,377
- -----------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 7.4%
$ 6,800 Long Island Power Authority Electric Systems Revenue,
(FSA), 0.00%, 6/1/22 $ 2,802,348
- -----------------------------------------------------------------------------------------------------
$ 2,802,348
- -----------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 12.3%
$ 500 Puerto Rico General Obligation, (FGIC),
Variable Rate, 7/1/32(1)(2) $ 536,210
315 Rochester, (FGIC), 5.00%, 10/1/24 335,147
2,000 Sachem School District, (MBIA), 5.00%, 6/15/27 2,050,120
1,700 Spencerport Central School District, (MBIA),
5.00%, 6/15/22 1,758,650
- -----------------------------------------------------------------------------------------------------
$ 4,680,127
- -----------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 18.5%
$ 2,250 New York City Health and Hospital Corp., (Health Systems),
(AMBAC), 5.00%, 2/15/23 $ 2,311,762
6,125 New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), (MBIA), 0.00%, 7/1/26 1,953,998
3,365 New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), (MBIA), 0.00%, 7/1/27 1,013,841
1,000 New York Dormitory Authority, (Municipal Health Facilities
Improvement), (FSA), 4.75%, 1/15/29 991,930
750 New York Dormitory Authority, (New York Presbyterian
Hospital), (AMBAC), 5.00%, 8/1/32 757,860
- -----------------------------------------------------------------------------------------------------
$ 7,029,391
- -----------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 16.3%
$ 1,000 New York City Industrial Development Agency, (New
York University), (AMBAC), 5.00%, 7/1/31 $ 1,011,780
4,005 New York Urban Development Corp., (Personal Income
Tax), (FGIC), 5.00%, 3/15/33 4,060,670
$ 1,000 Puerto Rico Public Building Authority, (CIFG),
Variable Rate, 7/1/36(1)(2) $ 1,107,040
- -----------------------------------------------------------------------------------------------------
$ 6,179,490
- -----------------------------------------------------------------------------------------------------
INSURED-MISCELLANEOUS -- 4.6%
$ 1,000 New York City Cultural Resource Trust, (Museum of
Modern Art), (AMBAC), 5.125%, 7/1/31 $ 1,026,890
580 New York City Trust Cultural Resources, (Museum of
History), (AMBAC), Variable Rate, 7/1/29(1)(3) 699,793
- -----------------------------------------------------------------------------------------------------
$ 1,726,683
- -----------------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 18.4%
$ 2,500 New York Dormitory Authority, (Brooklyn Law School),
(XLCA), 5.125%, 7/1/30 $ 2,555,650
1,500 New York Dormitory Authority, (Fordham University),
(FGIC), 5.00%, 7/1/32 1,519,515
1,000 New York Dormitory Authority, (New York University),
(AMBAC), 5.00%, 7/1/31 1,013,070
750 New York Dormitory Authority, (New York University),
(AMBAC), 5.00%, 7/1/41 757,868
1,125 New York Dormitory Authority, (University of Rochester),
(MBIA), 5.00%, 7/1/27 1,140,030
- -----------------------------------------------------------------------------------------------------
$ 6,986,133
- -----------------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 15.9%
$ 1,750 New York Dormitory Authority, (New York City University),
(FGIC), 5.25%, 7/1/30 $ 2,014,390
2,245 New York Dormitory Authority, (School Districts Financing
Program), (MBIA), 5.00%, 10/1/30 2,278,338
200 New York Dormitory Authority, (Upstate Community College),
(MBIA), 5.00%, 7/1/27 203,318
1,500 New York University Dormitory Authority, (State University),
(XLCA), 5.00%, 7/1/25 1,530,255
- -----------------------------------------------------------------------------------------------------
$ 6,026,301
- -----------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 6.6%
$ 2,500 New York City Transitional Finance Authority, (MBIA),
4.75%, 5/1/23 $ 2,517,475
- -----------------------------------------------------------------------------------------------------
$ 2,517,475
- -----------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 18.6%
$ 2,000 Metropolitan Transportation Authority, (FGIC),
5.25%, 11/15/31 $ 2,080,000
</Table>
See notes to financial statements.
25
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION (CONTINUED)
$ 1,000 Metropolitan Transportation Authority, (FSA),
5.00%, 11/15/30 $ 1,014,950
835 Port Authority of New York and New Jersey, (FSA),
Variable Rate, 11/1/27(1)(2) 893,166
1,000 Puerto Rico Highway and Transportation Authority, (AMBAC),
Variable Rate, 1/1/19(1)(2) 1,061,780
2,000 Triborough Bridge and Tunnel Authority, (MBIA),
5.00%, 11/15/32 2,026,960
- -----------------------------------------------------------------------------------------------------
$ 7,076,856
- -----------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 7.0%
$ 2,700 New York City Municipal Water Finance Authority,
(Water and Sewer System), (FGIC), 4.75%, 6/15/31(4) $ 2,652,831
- -----------------------------------------------------------------------------------------------------
$ 2,652,831
- -----------------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 6.3%
$ 750 Buffalo Municipal Water Finance Authority, (FSA),
5.00%, 7/1/27 $ 762,443
1,000 Buffalo Municipal Water Finance Authority, (FSA),
5.125%, 7/1/32 1,022,570
650 Suffolk County Water Authority, (MBIA), 4.50%, 6/1/26 624,501
- -----------------------------------------------------------------------------------------------------
$ 2,409,514
- -----------------------------------------------------------------------------------------------------
OTHER REVENUE -- 1.7%
$ 500 Puerto Rico Infrastructure Financing Authority, Variable
Rate, 10/1/32(1)(2) $ 632,745
- -----------------------------------------------------------------------------------------------------
$ 632,745
- -----------------------------------------------------------------------------------------------------
PRIVATE EDUCATION -- 4.0%
$ 1,000 Dutchess County, Industrial Development Agency,
(Marist College), 5.00%, 7/1/22 $ 1,007,220
500 Rensselaer County Industrial Development Agency,
(Rensselaer Polytech Institute), 5.125%, 8/1/27 504,040
- -----------------------------------------------------------------------------------------------------
$ 1,511,260
- -----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 10.7%
$ 1,500 Port Authority of New York and New Jersey,
5.00%, 9/1/38 $ 1,511,340
2,500 Triborough Bridge and Tunnel Authority,
5.125%, 1/1/31 2,546,975
- -----------------------------------------------------------------------------------------------------
$ 4,058,315
- -----------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 157.6%
(IDENTIFIED COST $58,629,018) $ 59,853,023
- -----------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.7% $ 634,757
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (59.3)% $ (22,503,672)
- -----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHARES -- 100.0% $ 37,984,108
- -----------------------------------------------------------------------------------------------------
</Table>
FSA - Financial Security Assurance, Inc.
FGIC - Financial Guaranty Insurance Company
AMBAC - AMBAC Financial Group, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
CIFG - CDC IXIS Financial Guaranty North America, 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, 83.7% 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 1.8% to 26.0% of total investments.
(1) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(2) Security has been issued as a leveraged inverse floater bond.
(3) Security has been issued as an inverse floater bond.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements.
26
<Page>
INSURED OHIO MUNICIPAL BOND FUND as of September 30, 2003
PORTFOLIO OF INVESTMENTS
Tax-Exempt Investments -- 157.9%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 12.1%
$ 3,415 Granville School District, 5.00%, 12/1/24 $ 3,477,802
925 Ohio, (Infrastructure Improvements), 4.875%, 3/1/23 944,823
- -----------------------------------------------------------------------------------------------------
$ 4,422,625
- -----------------------------------------------------------------------------------------------------
HOSPITAL -- 2.5%
$ 900 Cuyahoga County, (Cleveland Clinic Health System),
5.50%, 1/1/29 $ 922,104
- -----------------------------------------------------------------------------------------------------
$ 922,104
- -----------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 9.6%
$ 4,000 Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/25 $ 1,380,360
1,775 Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/26 578,987
5,000 Ohio Municipal Electric Generation Agency, (MBIA),
0.00%, 2/15/27 1,550,250
- -----------------------------------------------------------------------------------------------------
$ 3,509,597
- -----------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 55.2%
$ 1,500 Ashtabula School District, (Construction Improvements),
(FGIC), 5.00%, 12/1/30(1) $ 1,525,845
2,000 Cincinnati School District, (School Improvements),
(FSA), 5.00%, 12/1/22 2,078,140
2,500 Cuyahoga Community College District, (AMBAC),
5.00%, 12/1/32 2,540,900
500 Independence School District, (School Improvements),
(FGIC), 4.75%, 12/1/30 496,570
935 Nordonia Hills School District, (School Improvements),
(AMBAC), 5.45%, 12/1/25 1,004,929
1,900 Northwest Ohio School District, (School Improvements),
(MBIA), 4.75%, 12/1/29 1,890,006
2,500 Olentangy School District, (School Facility Construction
and Improvements, (MBIA), 5.00%, 12/1/30 2,543,075
1,400 Plain School District, (FGIC), 0.00%, 12/1/27 420,098
2,500 Plain School District, (FGIC), 5.00%, 12/1/30 2,544,925
1,400 Powell, (FGIC), 5.50%, 12/1/32 1,492,876
2,600 Trotwood-Madison School District, (School Improvements),
(FGIC), 5.00%, 12/1/30 2,644,798
1,000 Zanesville School District, (School Improvements), (MBIA),
5.05%, 12/1/29 1,025,270
- -----------------------------------------------------------------------------------------------------
$ 20,207,432
- -----------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 12.3%
$ 1,400 Cleveland, (Cleveland Stadium), (AMBAC),
5.25%, 11/15/27 $ 1,460,228
1,000 Puerto Rico Public Building Authority, (CIFG),
Variable Rate, 7/1/36(2)(3) 1,107,040
900 Puerto Rico Public Buildings Authority, Government
Facility Revenue, (XLCA), 5.25%, 7/1/36 939,717
1,000 Summit County, (Civic Theater Project), (AMBAC),
5.00%, 12/1/33 1,012,310
- -----------------------------------------------------------------------------------------------------
$ 4,519,295
- -----------------------------------------------------------------------------------------------------
INSURED-MISCELLANEOUS -- 0.8%
$ 280 Puerto Rico Municipal Finance Agency, (FSA), Variable
Rate, 8/1/27(2)(3) $ 302,215
- -----------------------------------------------------------------------------------------------------
$ 302,215
- -----------------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 16.2%
$ 3,000 Cincinnati Technical and Community College, (AMBAC),
5.00%, 10/1/28 $ 3,056,520
1,170 Ohio University, (FSA), 5.25%, 12/1/23 1,242,376
500 University of Akron, (FGIC), Variable Rate, 1/1/29(2)(4) 598,825
1,000 University of Cincinnati, (AMBAC), 5.00%, 6/1/31 1,016,480
- -----------------------------------------------------------------------------------------------------
$ 5,914,201
- -----------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 14.9%
$ 4,315 Hamilton County, Sales Tax, (AMBAC),
0.00%, 12/1/22 $ 1,699,549
5,000 Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/23 1,853,900
1,000 Hamilton County, Sales Tax, (AMBAC), 0.00%, 12/1/24 350,080
875 Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 7/1/07(2)(4) 908,731
615 Puerto Rico Infrastructure Financing Authority, (AMBAC),
Variable Rate, 7/1/28(3) 650,559
- -----------------------------------------------------------------------------------------------------
$ 5,462,819
- -----------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 15.7%
$ 4,750 Cleveland Airport System, (FSA), 5.00%, 1/1/31 $ 4,808,710
885 Puerto Rico Highway and Transportation Authority,
(AMBAC), Variable Rate, 1/1/19(2)(3) 939,675
- -----------------------------------------------------------------------------------------------------
$ 5,748,385
- -----------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 10.6%
$ 3,800 Cleveland Waterworks, (FGIC), 5.00%, 1/1/25 $ 3,875,658
- -----------------------------------------------------------------------------------------------------
$ 3,875,658
- -----------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
27
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
PRIVATE EDUCATION -- 8.0%
$ 1,000 Ohio Higher Educational Facilities Authority, (Oberlin
College), 5.00%, 10/1/33 $ 1,011,380
1,000 Ohio Higher Educational Facilities Authority, (Oberlin
College), Variable Rate, 10/1/29(2)(4) 1,026,520
850 Ohio Higher Educational Facilities Commission, (John
Carroll University), 5.25%, 11/15/33 873,129
- -----------------------------------------------------------------------------------------------------
$ 2,911,029
- -----------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 157.9%
(IDENTIFIED COST $56,870,433) $ 57,795,360
- -----------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.9% $ 690,437
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (59.8)% $ (21,876,254)
- -----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHARES -- 100.0% $ 36,609,543
- -----------------------------------------------------------------------------------------------------
</Table>
FSA - Financial Security Assurance, Inc.
FGIC - Financial Guaranty Insurance Company
AMBAC - AMBAC Financial Group, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
CIFG - CDC IXIS Financial Guaranty North America, Inc.
The Fund invests primarily in debt securities issued by Ohio municipalities. The
ability of the issuers of the debt securities to meet their obligations may be
affected by economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic developments, at
September 30, 2003, 85.7% 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 1.6% to 28.5% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
(4) Security has been issued as an inverse floater bond.
See notes to financial statements.
28
<Page>
INSURED PENNSYLVANIA MUNICIPAL BOND FUND as of September 30, 2003
PORTFOLIO OF INVESTMENTS
Tax-Exempt Investments -- 158.5%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
HOSPITAL -- 6.1%
$ 350 Lebanon County Health Facility Authority, (Good Samaritan
Hospital), 6.00%, 11/15/35 $ 355,813
1,500 Lehigh County General Purpose Authority, (Lehigh Valley
Health Network), 5.25%, 7/1/32 1,472,580
750 Pennsylvania HEFA, (UPMC Health System),
6.00%, 1/15/31 787,612
- -----------------------------------------------------------------------------------------------------
$ 2,616,005
- -----------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 5.1%
$ 1,650 Puerto Rico Electric Power Authority, (FSA),
5.125%, 7/1/26 $ 1,719,712
400 Puerto Rico Electric Power Authority, (MBIA),
Variable Rate, 7/1/29(1)(2) 455,472
- -----------------------------------------------------------------------------------------------------
$ 2,175,184
- -----------------------------------------------------------------------------------------------------
INSURED-GAS UTILITIES -- 5.3%
$ 1,355 Philadelphia Natural Gas Works, (FSA),
5.125%, 8/1/31 $ 1,377,994
875 Philadelphia Natural Gas Works, (FSA),
Variable Rate, 7/1/28(3) 886,856
- -----------------------------------------------------------------------------------------------------
$ 2,264,850
- -----------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 43.6%
$ 250 Allegheny County, (FGIC), 5.25%, 11/1/21 $ 266,960
1,650 Armstrong County, (MBIA), 5.40%, 6/1/31 1,728,623
4,845 Canon McMillan School District, (FGIC), 0.00%, 12/1/33 1,007,760
500 Canon McMillan School District, (FGIC), 5.25%, 12/1/34 518,865
1,500 Cranberry Township, (FGIC), 5.00%, 12/1/25 1,525,560
4,500 East Allegheny School District, (FGIC), 5.00%, 4/1/32 4,556,565
1,080 Fairview School District, (FGIC), 5.125%, 2/1/29 1,103,263
2,555 McKeesport School District, (MBIA), 0.00%, 10/1/21 1,063,187
2,000 Pennridge School District, (MBIA), 5.00%, 2/15/29 2,032,060
1,000 Philadelphia, (FSA), 5.00%, 9/15/31 1,009,580
300 Philadelphia, (FSA), 5.25%, 9/15/25 311,133
585 Philadelphia, (FSA), Variable Rate, 9/15/31(1)(2) 601,819
400 Puerto Rico General Obligation, (FGIC),
Variable Rate, 7/1/32(1)(2) 428,968
2,500 Upper Clair Township School District, (FSA),
5.00%, 7/15/32 2,533,550
- -----------------------------------------------------------------------------------------------------
$ 18,687,893
- -----------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 6.0%
$ 2,500 Washington County Hospital Authority, (Washington
Hospital), (AMBAC), 5.125%, 7/1/28 $ 2,548,800
- -----------------------------------------------------------------------------------------------------
$ 2,548,800
- -----------------------------------------------------------------------------------------------------
INSURED-INDUSTRIAL DEVELOPMENT REVENUE -- 4.0%
$ 1,700 Allegheny County IDA, (MBIA), 5.00%, 11/1/29 $ 1,725,347
- -----------------------------------------------------------------------------------------------------
$ 1,725,347
- -----------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 7.2%
$ 1,300 Philadelphia Authority for Industrial Development Lease
Revenue, (FSA), 5.125%, 10/1/26 $ 1,327,638
1,700 Philadelphia Authority for Industrial Development Lease
Revenue, (FSA), 5.25%, 10/1/30 1,767,354
- -----------------------------------------------------------------------------------------------------
$ 3,094,992
- -----------------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 20.9%
$ 1,000 Chester County IDA Educational Facility, (Westtown School),
(AMBAC), 5.00%, 1/1/31 $ 1,012,400
3,365 Delaware County, (Villanova University), (MBIA),
5.00%, 12/1/28 3,401,409
1,000 Northeastern Pennsylvania HEFA, (Wyoming Seminary),
(MBIA), 4.75%, 10/1/28 992,620
3,000 Pennsylvania HEFA, (Temple University), (MBIA),
5.00%, 4/1/29(4) 3,034,020
500 Pennsylvania Public School Building Authority, (Lehigh
Career and Technical Institute), (MBIA), 5.00%, 10/1/31 506,085
- -----------------------------------------------------------------------------------------------------
$ 8,946,534
- -----------------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 4.8%
$ 1,000 Lycoming County Authority, (Pennsylvania College of
Technology), (AMBAC), 5.25%, 5/1/32 $ 1,037,160
1,000 Pennsylvania HEFA, (Clarion University Foundation),
(XLCA), 5.00%, 7/1/33 1,007,990
- -----------------------------------------------------------------------------------------------------
$ 2,045,150
- -----------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 14.3%
$ 4,350 Pittsburgh and Allegheny County Public Auditorium,
(AMBAC), 5.00%, 2/1/29 $ 4,401,156
1,750 Southeastern Transportation Authority, (FGIC),
4.75%, 3/1/29 1,735,895
- -----------------------------------------------------------------------------------------------------
$ 6,137,051
- -----------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
29
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000's OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 23.9%
$ 2,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/25 $ 2,036,380
1,000 Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29 1,014,020
1,000 Pennsylvania Turnpike Commision, Oil Franchise Tax,
(AMBAC), 4.75%, 12/1/27 1,001,980
1,500 Pennsylvania Turnpike Commission Registration Fee,
(AMBAC), 5.00%, 7/15/31 1,522,530
3,750 Pennsylvania Turnpike Commission, (AMBAC),
5.00%, 7/15/41 3,785,588
815 Puerto Rico Highway and Transportation Authority,
(MBIA), Variable Rate, 7/1/36(1)(2) 886,956
- -----------------------------------------------------------------------------------------------------
$ 10,247,454
- -----------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 14.0%
$ 1,555 Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25 $ 498,269
2,155 Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25 690,527
1,920 Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26 580,493
2,500 Pennsylvania University Sewer Authority, (MBIA),
5.00%, 11/1/26 2,538,950
1,000 Philadelphia Water & Wastewater, (FGIC),
Variable Rate, 11/1/31(1)(3) 1,042,540
580 Pittsburgh Water and Sewer Authority, (AMBAC),
Variable Rate, 12/1/27(1)(2) 622,700
- -----------------------------------------------------------------------------------------------------
$ 5,973,479
- -----------------------------------------------------------------------------------------------------
TRANSPORTATION -- 3.3%
$ 1,400 Delaware River Joint Toll Bridge Commission,
5.00%, 7/1/28 $ 1,420,188
- -----------------------------------------------------------------------------------------------------
$ 1,420,188
- -----------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 158.5%
(IDENTIFIED COST $67,068,257) $ 67,882,927
- -----------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 2.2% $ 942,061
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (60.7)% $ (26,003,379)
- -----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHARES -- 100.0% $ 42,821,609
- -----------------------------------------------------------------------------------------------------
</Table>
FSA - Financial Security Assurance, Inc.
FGIC - Financial Guaranty Insurance Company
AMBAC - AMBAC Financial Group, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by Pennsylvania
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at September 30, 2003, 94.1% 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 1.5% to 27.1% of total investments.
(1) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(2) Security has been issued as a leveraged inverse floater bond.
(3) Security has been issued as an inverse floater bond.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements.
30
<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 INSURED INSURED
MUNICIPAL FUND II CALIFORNIA FUND II FLORIDA FUND
- -----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments--
Identified cost $ 230,834,109 $ 87,775,098 $ 57,519,541
Unrealized appreciation 4,619,142 1,283,765 894,230
- -----------------------------------------------------------------------------------------------------------------------------
Investments, at value $ 235,453,251 $ 89,058,863 $ 58,413,771
- -----------------------------------------------------------------------------------------------------------------------------
Cash $ -- $ -- $ 326,565
Receivable for investments sold 2,282,938 -- --
Interest receivable 3,041,217 1,043,096 1,120,931
- -----------------------------------------------------------------------------------------------------------------------------
Total assets $ 240,777,406 $ 90,101,959 $ 59,861,267
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased $ 5,863,095 $ -- $ --
Payable for daily variation margin on open financial
futures contracts 730,112 226,562 154,062
Due to bank 19,392 16,167 --
Accrued expenses 39,238 23,336 20,485
- -----------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 6,651,837 $ 266,065 $ 174,547
- -----------------------------------------------------------------------------------------------------------------------------
Auction preferred shares at liquidation value plus
cumulative unpaid dividends 87,551,976 33,752,500 22,500,613
- -----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to common shares $ 146,573,593 $ 56,083,394 $ 37,186,107
- -----------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Common Shares, $0.01 par value, unlimited number of
shares authorized $ 99,076 $ 38,513 $ 25,559
Additional paid-in capital 140,481,753 54,587,941 36,225,714
Accumulated net realized gain (computed on the basis
of identified cost) 2,741,450 490,365 376,143
Accumulated undistributed net investment income 811,569 334,279 108,559
Net unrealized appreciation (computed on the basis
of identified cost) 2,439,745 632,296 450,132
- -----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to common shares $ 146,573,593 $ 56,083,394 $ 37,186,107
- -----------------------------------------------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING
(LIQUIDATION PREFERENCE OF $25,000 PER SHARE)
3,500 1,350 900
- -----------------------------------------------------------------------------------------------------------------------------
COMMON SHARES OUTSTANDING
9,907,581 3,851,257 2,555,923
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE
Net assets applicable to common shares DIVIDED BY
common shares issued and outstanding $ 14.79 $ 14.56 $ 14.55
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
31
<Page>
<Table>
<Caption>
INSURED INSURED INSURED
MASSACHUSETTS FUND MICHIGAN FUND NEW JERSEY FUND
- -----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments--
Identified cost $ 41,245,388 $ 34,462,526 $ 59,076,213
Unrealized appreciation 502,414 669,696 949,837
- -----------------------------------------------------------------------------------------------------------------------------
Investments, at value $ 41,747,802 $ 35,132,222 $ 60,026,050
- -----------------------------------------------------------------------------------------------------------------------------
Interest receivable 569,492 575,283 768,290
- -----------------------------------------------------------------------------------------------------------------------------
Total assets $ 42,317,294 $ 35,707,505 $ 60,794,340
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased $ 736,017 $ -- $ --
Payable for daily variation margin on open financial
futures contracts 108,750 80,875 135,937
Due to bank 366,457 214,747 449,125
Accrued expenses 18,544 18,626 21,909
- -----------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 1,229,768 $ 314,248 $ 606,971
- -----------------------------------------------------------------------------------------------------------------------------
Auction preferred shares at liquidation value plus
cumulative unpaid dividends 15,502,014 13,500,000 22,500,581
- -----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to common shares $ 25,585,512 $ 21,893,257 $ 37,686,788
- -----------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Common Shares, $0.01 par value, unlimited number of
shares authorized $ 17,440 $ 15,079 $ 25,539
Additional paid-in capital 24,701,591 21,354,633 36,190,426
Accumulated net realized gain (loss) (computed on
the basis of identified cost) 584,592 (74,821) 749,740
Accumulated undistributed net investment income 137,386 116,639 218,635
Net unrealized appreciation (computed on the basis
of identified cost) 144,503 481,727 502,448
- -----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to common shares $ 25,585,512 $ 21,893,257 $ 37,686,788
- -----------------------------------------------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING
(LIQUIDATION PREFERENCE OF $25,000 PER SHARE)
620 540 900
- -----------------------------------------------------------------------------------------------------------------------------
COMMON SHARES OUTSTANDING
1,744,040 1,507,930 2,553,854
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE
Net assets applicable to common shares DIVIDED BY
common shares issued and outstanding $ 14.67 $ 14.52 $ 14.76
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
32
<Page>
<Table>
<Caption>
INSURED INSURED INSURED
NEW YORK FUND II OHIO FUND PENNSYLVANIA FUND
- -----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments--
Identified cost $ 58,629,018 $ 56,870,433 $ 67,068,257
Unrealized appreciation 1,224,005 924,927 814,670
- -----------------------------------------------------------------------------------------------------------------------------
Investments, at value $ 59,853,023 $ 57,795,360 $ 67,882,927
- -----------------------------------------------------------------------------------------------------------------------------
Cash -- -- 111,097
Interest receivable 822,444 855,105 1,029,189
- -----------------------------------------------------------------------------------------------------------------------------
Total assets $ 60,675,467 $ 58,650,465 $ 69,023,213
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for daily variation margin on open financial
futures contracts $ 72,500 $ 63,437 $ 174,000
Due to bank 92,301 81,113 --
Accrued expenses 22,886 20,118 24,225
- -----------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 187,687 $ 164,668 $ 198,225
- -----------------------------------------------------------------------------------------------------------------------------
Auction preferred shares at liquidation value plus
cumulative unpaid dividends 22,503,672 21,876,254 26,003,379
- -----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to common shares $ 37,984,108 $ 36,609,543 $ 42,821,609
- -----------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Common Shares, $0.01 par value, unlimited number of
shares authorized $ 25,536 $ 25,042 $ 29,376
Additional paid-in capital 36,186,792 35,484,736 41,633,458
Accumulated net realized gain (computed on the basis
of identified cost) 626,987 328,253 672,980
Accumulated undistributed net investment income 174,093 68,227 171,562
Net unrealized appreciation (computed on the basis of
identified cost) 970,700 703,285 314,233
- -----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to common shares $ 37,984,108 $ 36,609,543 $ 42,821,609
- -----------------------------------------------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING
(LIQUIDATION PREFERENCE OF $25,000 PER SHARE)
900 875 1,040
- -----------------------------------------------------------------------------------------------------------------------------
COMMON SHARES OUTSTANDING
2,553,603 2,504,186 2,937,624
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE
Net assets applicable to common shares DIVIDED BY
common shares issued and outstanding $ 14.87 $ 14.62 $ 14.58
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
33
<Page>
Statements of Operations
For the Period Ended September 30, 2003(1)
<Table>
<Caption>
INSURED INSURED INSURED
MUNICIPAL FUND II CALIFORNIA FUND II FLORIDA FUND
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 9,654,344 $ 3,585,738 $ 2,289,490
- -----------------------------------------------------------------------------------------------------------------------------
Total investment income $ 9,654,344 $ 3,585,738 $ 2,289,490
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 1,003,100 $ 386,099 $ 256,780
Trustees fees and expenses 4,469 3,404 886
Legal and accounting services 38,585 30,546 27,587
Printing and postage 12,451 8,717 7,697
Custodian fee 64,064 25,490 23,610
Organization costs 7,500 7,500 7,500
Transfer and dividend disbursing agent 92,534 35,569 23,913
Preferred shares remarketing agent fee 77,013 58,087 39,033
Miscellaneous 20,618 10,416 11,645
- -----------------------------------------------------------------------------------------------------------------------------
Total expenses $ 1,320,334 $ 565,828 $ 398,651
- -----------------------------------------------------------------------------------------------------------------------------
Deduct--
Reduction of custodian fee 21,396 8,156 19,075
Reduction of investment adviser fee 273,573 105,356 70,169
Expense reimbursement of organization costs 7,500 7,500 7,500
- -----------------------------------------------------------------------------------------------------------------------------
Total expense reductions $ 302,469 $ 121,012 $ 96,744
- -----------------------------------------------------------------------------------------------------------------------------
Net expenses $ 1,017,865 $ 444,816 $ 301,907
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income $ 8,636,479 $ 3,140,922 $ 1,987,583
- -----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss)--
Investment transactions (identified cost basis) 1,554,032 (29,599) (1,885)
Financial futures contracts 1,141,163 505,390 371,504
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain $ 2,695,195 $ 475,791 $ 369,619
- -----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation)--
Investments (identified cost basis) 4,619,142 1,283,765 894,230
Financial futures contracts (2,179,397) (651,469) (444,098)
- -----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $ 2,439,745 $ 632,296 $ 450,132
- -----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain $ 5,134,940 $ 1,108,087 $ 819,751
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareholders $ (701,821) $ (192,472) $ (152,002)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 13,069,598 $ 4,056,537 $ 2,655,332
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, November 29, 2002, to
September 30, 2003.
See notes to financial statements.
34
<Page>
<Table>
<Caption>
INSURED INSURED INSURED
MASSACHUSETTS FUND MICHIGAN FUND NEW JERSEY FUND
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 1,641,805 $ 1,427,904 $ 2,398,276
- -----------------------------------------------------------------------------------------------------------------------------
Total investment income $ 1,641,805 $ 1,427,904 $ 2,398,276
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 175,757 $ 152,044 $ 258,507
Trustees fees and expenses 887 88 887
Legal and accounting services 25,089 24,977 27,589
Printing and postage 5,662 6,096 9,335
Custodian fee 19,001 17,647 22,857
Organization costs 7,500 7,500 7,500
Transfer and dividend disbursing agent 16,600 14,532 24,313
Preferred shares remarketing agent fee 26,558 23,765 39,606
Miscellaneous 10,189 10,225 11,387
- -----------------------------------------------------------------------------------------------------------------------------
Total expenses $ 287,243 $ 256,874 $ 401,981
- -----------------------------------------------------------------------------------------------------------------------------
Deduct--
Reduction of custodian fee $ 8,812 $ 10,011 $ 13,516
Reduction of investment adviser fee 47,930 41,466 70,502
Expense reimbursement of organization costs 7,500 7,500 7,500
- -----------------------------------------------------------------------------------------------------------------------------
Total expense reductions $ 64,242 $ 58,977 $ 91,518
- -----------------------------------------------------------------------------------------------------------------------------
Net expenses $ 223,001 $ 197,897 $ 310,463
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income $ 1,418,804 $ 1,230,007 $ 2,087,813
- -----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss)--
Investment transactions (identified cost basis) 132,575 (5,568) 200,393
Financial futures contracts 446,676 (78,238) 547,620
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) $ 579,251 $ (83,806) $ 748,013
- -----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation)--
Investments (identified cost basis) 502,414 669,696 949,837
Financial futures contracts (357,911) (187,969) (447,389)
- -----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $ 144,503 $ 481,727 $ 502,448
- -----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain $ 723,754 $ 397,921 $ 1,250,461
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareholders $ (99,094) $ (86,751) $ (143,861)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 2,043,464 $ 1,541,177 $ 3,194,413
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, November 29, 2002, to
September 30, 2003.
See notes to financial statements.
35
<Page>
<Table>
<Caption>
INSURED INSURED INSURED
NEW YORK FUND II OHIO FUND PENNSYLVANIA FUND
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 2,382,058 $ 2,221,070 $ 2,695,621
- -----------------------------------------------------------------------------------------------------------------------------
Total investment income $ 2,382,058 $ 2,221,070 $ 2,695,621
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 258,678 $ 250,253 $ 295,042
Trustees fees and expenses 887 886 887
Legal and accounting services 29,188 27,583 27,607
Printing and postage 7,171 8,964 11,233
Custodian fee 23,121 23,052 25,228
Organization costs 7,500 7,500 7,500
Transfer and dividend disbursing agent 22,394 26,716 27,761
Preferred shares remarketing agent fee 39,144 37,048 45,767
Miscellaneous 11,173 11,025 12,409
- -----------------------------------------------------------------------------------------------------------------------------
Total expenses $ 399,256 $ 393,027 $ 453,434
- -----------------------------------------------------------------------------------------------------------------------------
Deduct--
Reduction of custodian fee 16,269 19,087 20,242
Reduction of investment adviser fee 70,549 68,251 80,466
Expense reimbursement of organization costs 7,500 7,500 7,500
- -----------------------------------------------------------------------------------------------------------------------------
Total expense reductions $ 94,318 $ 94,838 $ 108,208
- -----------------------------------------------------------------------------------------------------------------------------
Net expenses $ 304,938 $ 298,189 $ 345,226
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income $ 2,077,120 $ 1,922,881 $ 2,350,395
- -----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss)--
Investment transactions (identified cost basis) 254,124 13,345 271,458
Financial futures contracts 365,677 297,996 397,160
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain $ 619,801 $ 311,341 $ 668,618
- -----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation)--
Investments (identified cost basis) 1,224,005 924,927 814,670
Financial futures contracts (253,305) (221,642) (500,437)
- -----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $ 970,700 $ 703,285 $ 314,233
- -----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain $ 1,590,501 $ 1,014,626 $ 982,851
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareholders $ (143,577) $ (147,817) $ (175,228)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 3,524,044 $ 2,789,690 $ 3,158,018
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, November 29, 2002, to
September 30, 2003.
See notes to financial statements.
36
<Page>
Statements of Changes in Net Assets
For the Period Ended September 30, 2003(1)
<Table>
<Caption>
INSURED INSURED INSURED
INCREASE (DECREASE) IN NET ASSETS MUNICIPAL FUND II CALIFORNIA FUND II FLORIDA FUND
- -----------------------------------------------------------------------------------------------------------------------------
From operations--
Net investment income $ 8,636,479 $ 3,140,922 $ 1,987,583
Net realized gain 2,695,195 475,791 369,619
Net change in unrealized appreciation (depreciation) 2,439,745 632,296 450,132
Distributions to preferred shareholders (701,821) (192,472) (152,002)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 13,069,598 $ 4,056,537 $ 2,655,332
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to common shareholders--
From net investment income (7,076,834) (2,599,597) (1,720,498)
- -----------------------------------------------------------------------------------------------------------------------------
Total distributions to common shareholders $ (7,076,834) $ (2,599,597) $ (1,720,498)
- -----------------------------------------------------------------------------------------------------------------------------
Capital share transactions--
Proceeds from sale of common shares(2) $ 141,787,289 $ 55,073,394 $ 36,321,367
Reinvestment of distributions to common shareholders 43,049 363 200,519
Offering costs and preferred shares underwriting
discounts (1,349,509) (547,303) (370,613)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions $ 140,480,829 $ 54,526,454 $ 36,151,273
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets $ 146,473,593 $ 55,983,394 $ 37,086,107
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES
At beginning of period $ 100,000 $ 100,000 $ 100,000
- -----------------------------------------------------------------------------------------------------------------------------
At end of period $ 146,573,593 $ 56,083,394 $ 37,186,107
- -----------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME INCLUDED IN NET
ASSETS APPLICABLE TO COMMON SHARES
At end of period $ 811,569 $ 334,279 $ 108,559
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, November 29, 2002, to September
30, 2003.
(2) Proceeds from the sale of shares net of sales load paid of $6,681,076,
$2,595,081 and $1,711,478 for Insured Municipal Fund II, Insured California
Fund II and Insured Florida Fund, respectively.
See notes to financial statements.
37
<Page>
<Table>
<Caption>
INSURED INSURED INSURED
INCREASE (DECREASE) IN NET ASSETS MASSACHUSETTS FUND MICHIGAN FUND NEW JERSEY FUND
- -----------------------------------------------------------------------------------------------------------------------------
From operations--
Net investment income $ 1,418,804 $ 1,230,007 $ 2,087,813
Net realized gain (loss) 579,251 (83,806) 748,013
Net change in unrealized appreciation (depreciation) 144,503 481,727 502,448
Distributions to preferred shareholders (99,094) (86,751) (143,861)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 2,043,464 $ 1,541,177 $ 3,194,413
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to common shareholders--
From net investment income (1,176,983) (1,017,632) (1,723,590)
- -----------------------------------------------------------------------------------------------------------------------------
Total distributions to common shareholders $ (1,176,983) $ (1,017,632) $ (1,723,590)
- -----------------------------------------------------------------------------------------------------------------------------
Capital share transactions--
Proceeds from sale of common shares(2) $ 24,879,202 $ 21,497,628 $ 36,480,532
Reinvestment of distributions to common shareholders 8,903 8,225 8,074
Offering costs and preferred shares underwriting
discounts (269,074) (236,141) (372,641)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions $ 24,619,031 $ 21,269,712 $ 36,115,965
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets $ 25,485,512 $ 21,793,257 $ 37,586,788
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES
At beginning of period $ 100,000 $ 100,000 $ 100,000
- -----------------------------------------------------------------------------------------------------------------------------
At end of period $ 25,585,512 $ 21,893,257 $ 37,686,788
- -----------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME INCLUDED IN NET
ASSETS APPLICABLE TO COMMON SHARES
At end of period $ 137,386 $ 116,639 $ 218,635
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, November 29, 2002, to September
30, 2003.
(2) Proceeds from sale of shares net of sales load paid of $1,172,318,
$1,012,977 and $1,718,978 for Insured Massachusetts Fund, Insured Michigan
Fund and Insured New Jersey Fund, respectively.
See notes to financial statements.
38
<Page>
<Table>
<Caption>
INSURED INSURED INSURED
INCREASE (DECREASE) IN NET ASSETS NEW YORK FUND II OHIO FUND PENNSYLVANIA FUND
- -----------------------------------------------------------------------------------------------------------------------------
From operations--
Net investment income $ 2,077,120 $ 1,922,881 $ 2,350,395
Net realized gain 619,801 311,341 668,618
Net change in unrealized appreciation (depreciation) 970,700 703,285 314,233
Distributions to preferred shareholders (143,577) (147,817) (175,228)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 3,524,044 $ 2,789,690 $ 3,158,018
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to common shareholders--
From net investment income (1,752,264) (1,689,925) (1,999,243)
- -----------------------------------------------------------------------------------------------------------------------------
Total distributions to common shareholders $ (1,752,264) $ (1,689,925) $ (1,999,243)
- -----------------------------------------------------------------------------------------------------------------------------
Capital share transactions--
Proceeds from sale of common shares(2) $ 36,480,718 $ 35,761,589 $ 41,979,857
Reinvestment of distributions to common shareholders 4,010 15,937 6,307
Offering costs and preferred shares underwriting
discounts (372,400) (367,748) (423,330)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions $ 36,112,328 $ 35,409,778 $ 41,562,834
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets $ 37,884,108 $ 36,509,543 $ 42,721,609
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES
At beginning of period $ 100,000 $ 100,000 $ 100,000
- -----------------------------------------------------------------------------------------------------------------------------
At end of period $ 37,984,108 $ 36,609,543 $ 42,821,609
- -----------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME INCLUDED IN NET
ASSETS APPLICABLE TO COMMON SHARES
At end of period $ 174,093 $ 68,227 $ 171,562
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) For the period from the start of business, November 29, 2002, to September
30, 2003.
(2) Proceeds from the sale of shares net of sales load paid of $1,718,987,
$1,685,101 and $1,978,108 for Insured New York Fund II, Insured Ohio Fund
and Insured Pennsylvania Fund, respectively.
See notes to financial statements.
39
<Page>
Financial Highlights
Selected data for a common share outstanding during the periods stated
<Table>
<Caption>
INSURED MUNICIPAL FUND II
-----------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- ------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares)(3) $ 14.325
- ------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.879
Net realized and unrealized gain 0.508
Distributions to preferred shareholders (0.071)
- ------------------------------------------------------------------------------------------------------------------
Total income from operations $ 1.316
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.714)
- ------------------------------------------------------------------------------------------------------------------
Total distributions to common shareholders $ (0.714)
- ------------------------------------------------------------------------------------------------------------------
Preferred and Common shares offering costs charged to paid-in capital $ (0.048)
- ------------------------------------------------------------------------------------------------------------------
Preferred Shares underwriting discounts $ (0.089)
- ------------------------------------------------------------------------------------------------------------------
Net asset value -- End of period (Common shares) $ 14.790
- ------------------------------------------------------------------------------------------------------------------
Market value -- End of period (Common shares) $ 14.000
- ------------------------------------------------------------------------------------------------------------------
Total Investment Return on Net Asset Value(4) 8.46%
- ------------------------------------------------------------------------------------------------------------------
Total Investment Return on Market Value(4) 2.67%
- ------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
40
<Page>
<Table>
<Caption>
INSURED MUNICIPAL FUND II
-----------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- ------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of period (000's omitted) $ 146,574
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(5) 0.86%(6)
Net expenses after custodian fee reduction(5) 0.84%(6)
Net investment income(5) 7.14%(6)
Portfolio Turnover 79%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Has such
actions 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(5) 1.09%(6)
Expenses after custodian fee reduction(5) 1.07%(6)
Net investment income(5) 6.91%(6)
Net investment income per share $ 0.851
- ------------------------------------------------------------------------------------------------------------------
++ 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 0.57%(6)
Net expenses after custodian fee reduction 0.56%(6)
Net investment income 4.72%(6)
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Has such actions
not been taken, the ratios would have been as follows:
Ratios (As a percentage of average total net assets):
Expenses 0.72%(6)
Expenses after custodian fee reduction 0.71%(6)
Net investment income 4.57%(6)
- ------------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 3,500
Asset coverage per preferred share(7) $ 66,893
Involuntary liquidation preference per preferred share(8) $ 25,000
Approximate market value per preferred share(8) $ 25,000
- ------------------------------------------------------------------------------------------------------------------
</Table>
(1) Computed using average common shares outstanding.
(2) For the period from the start of business, November 29, 2002, to September
30, 2003.
(3) Net asset value at beginning of period reflects the deduction of the sales
load of $0.675 per share paid by the shareholder from the $15.000 offering
price.
(4) 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) 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.
(6) Annualized.
(7) 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.
(8) Plus accumulated and unpaid dividends.
See notes to financial statements.
41
<Page>
<Table>
<Caption>
INSURED CALIFORNIA FUND II
-----------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- ------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares)(3) $ 14.325
- ------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.822
Net realized and unrealized gain 0.281
Distributions to preferred shareholders (0.050)
- ------------------------------------------------------------------------------------------------------------------
Total income from operations $ 1.053
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.675)
- ------------------------------------------------------------------------------------------------------------------
Total distributions to common shareholders $ (0.675)
- ------------------------------------------------------------------------------------------------------------------
Preferred and Common shares offering costs charged to paid-in capital $ (0.054)
- ------------------------------------------------------------------------------------------------------------------
Preferred Shares underwriting discounts $ (0.089)
- ------------------------------------------------------------------------------------------------------------------
Net asset value -- End of period (Common shares) $ 14.560
- ------------------------------------------------------------------------------------------------------------------
Market value -- End of period (Common shares) $ 13.800
- ------------------------------------------------------------------------------------------------------------------
Total Investment Return on Net Asset Value(4) 6.62%
- ------------------------------------------------------------------------------------------------------------------
Total Investment Return on Market Value(4) 1.06%
- ------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
42
<Page>
<Table>
<Caption>
INSURED CALIFORNIA FUND II
------------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of period (000's omitted) $ 56,083
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(5) 0.98%(6)
Net expenses after custodian fee reduction(5) 0.96%(6)
Net investment income(5) 6.75%(6)
Portfolio Turnover 36%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Has such actions
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(5) 1.22%(6)
Expenses after custodian fee reduction(5) 1.20%(6)
Net investment income(5) 6.51%(6)
Net investment income per share $ 0.793
- ------------------------------------------------------------------------------------------------------------------
++ The ratios reported are based on net assets applicable solely to common
shares. The ratios based on net assets, including amounts related to
preferred shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses 0.64%(6)
Net expenses after custodian fee reduction 0.63%(6)
Net investment income 4.46%(6)
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Has such actions
not been taken, the ratios would have been as follows:
Ratios (As a percentage of average total net assets):
Expenses 0.80%(6)
Expenses after custodian fee reduction 0.79%(6)
Net investment income 4.30%(6)
- ------------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 1,350
Asset coverage per preferred share(7) $ 66,545
Involuntary liquidation preference per preferred share(8) $ 25,000
Approximate market value per preferred share(8) $ 25,000
- ------------------------------------------------------------------------------------------------------------------
</Table>
(1) Computed using average common shares outstanding.
(2) For the period from the start of business, November 29, 2002, to September
30, 2003.
(3) Net asset value at beginning of period reflects the deduction of the sales
load of $0.675 per share paid by the shareholder from the $15.000 offering
price.
(4) 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) 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.
(6) Annualized.
(7) 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.
(8) Plus accumulated and unpaid dividends.
See notes to financial statements.
43
<Page>
<Table>
<Caption>
INSURED FLORIDA FUND
-------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- ----------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares)(3) $ 14.325
- ----------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.788
Net realized and unrealized gain 0.319
Distributions to preferred shareholders (0.060)
- ----------------------------------------------------------------------------------------------------------------
Total income from operations $ 1.047
- ----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.675)
- ----------------------------------------------------------------------------------------------------------------
Total distributions to common shareholders $ (0.675)
- ----------------------------------------------------------------------------------------------------------------
Preferred and Common shares offering costs charged to paid-in capital $ (0.058)
- ----------------------------------------------------------------------------------------------------------------
Preferred Shares underwriting discounts $ (0.089)
- ----------------------------------------------------------------------------------------------------------------
Net asset value -- End of period (Common shares) $ 14.550
- ----------------------------------------------------------------------------------------------------------------
Market value -- End of period (Common shares) $ 14.100
- ----------------------------------------------------------------------------------------------------------------
Total Investment Return on Net Asset Value(4) 6.37%
- ----------------------------------------------------------------------------------------------------------------
Total Investment Return on Market Value(4) 3.08%
- ----------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
44
<Page>
<Table>
<Caption>
INSURED FLORIDA FUND
-------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- ----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of period (000's omitted) $ 37,186
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(5) 1.04%(6)
Net expenses after custodian fee reduction(5) 0.98%(6)
Net investment income(5) 6.45%(6)
Portfolio Turnover 29%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Had such actions
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(5) 1.29%(6)
Expenses after custodian fee reduction(5) 1.23%(6)
Net investment income(5) 6.20%(6)
Net investment income per share $ 0.757
- ----------------------------------------------------------------------------------------------------------------
++ The ratios reported are based on net assets applicable solely to common
shares. The ratios based on net assets, including amounts related to
preferred shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses 0.69%(6)
Net expenses after custodian fee reduction 0.65%(6)
Net investment income 4.25%(6)
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Had such actions
not been taken, the ratios would have been as follows:
Ratios (As a percentage of average total net assets):
Expenses 0.86%(6)
Expenses after custodian fee reduction 0.82%(6)
Net investment income 4.08%(6)
- ----------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 900
Asset coverage per preferred share(7) $ 66,319
Involuntary liquidation preference per preferred share(8) $ 25,000
Approximate market value per preferred share(8) $ 25,000
- ----------------------------------------------------------------------------------------------------------------
</Table>
(1) Computed using average common shares outstanding.
(2) For the period from the start of business, November 29, 2002, to September
30, 2003.
(3) Net asset value at beginning of period reflects the deduction of the sales
load of $0.675 per share paid by the shareholder from the $15.000 offering
price.
(4) 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) 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.
(6) Annualized.
(7) 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.
(8) Plus accumulated and unpaid dividends.
See notes to financial statements.
45
<Page>
<Table>
<Caption>
INSURED MASSACHUSETTS FUND
------------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- ------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares)(3) $ 14.325
- ------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.823
Net realized and unrealized gain 0.411
Distributions to preferred shareholders (0.058)
- ------------------------------------------------------------------------------------------------------------------
Total income from operations $ 1.176
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.675)
- ------------------------------------------------------------------------------------------------------------------
Total distributions to common shareholders $ (0.675)
- ------------------------------------------------------------------------------------------------------------------
Preferred and Common shares offering costs charged to paid-in capital $ (0.066)
- ------------------------------------------------------------------------------------------------------------------
Preferred Shares underwriting discounts $ (0.090)
- ------------------------------------------------------------------------------------------------------------------
Net asset value -- End of period (Common shares) $ 14.670
- ------------------------------------------------------------------------------------------------------------------
Market value -- End of period (Common shares) $ 14.450
- ------------------------------------------------------------------------------------------------------------------
Total Investment Return on Net Asset Value(4) 7.22%
- ------------------------------------------------------------------------------------------------------------------
Total Investment Return on Market Value(4) 5.61%
- ------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
46
<Page>
<Table>
<Caption>
INSURED MASSACHUSETTS FUND
------------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- ------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of period (000's omitted) $ 25,586
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(5) 1.10%(6)
Net expenses after custodian fee reduction(5) 1.06%(6)
Net investment income(5) 6.73%(6)
Portfolio Turnover 81%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Has such actions
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(5) 1.36%(6)
Expenses after custodian fee reduction(5) 1.32%(6)
Net investment income(5) 6.47%(6)
Net investment income per share $ 0.791
- ------------------------------------------------------------------------------------------------------------------
++ The ratios reported are based on net assets applicable solely to common
shares. The ratios based on net assets, including amounts related to
preferred shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses 0.73%(6)
Net expenses after custodian fee reduction 0.70%(6)
Net investment income 4.42%(6)
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Had such actions
not been taken, the ratios would have been as follows:
Ratios (As a percentage of average total net assets):
Expenses 0.90%(6)
Expenses after custodian fee reduction 0.87%(6)
Net investment income 4.25%(6)
- ------------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 620
Asset coverage per preferred share(7) $ 66,270
Involuntary liquidation preference per preferred share(8) $ 25,000
Approximate market value per preferred share(8) $ 25,000
- ------------------------------------------------------------------------------------------------------------------
</Table>
(1) Computed using average common shares outstanding.
(2) For the period from the start of business, November 29, 2002 to September
30, 2003.
(3) Net asset value at the beginning of period reflects the deduction of the
sales load of $0.675 per share paid by the shareholder from the $15.000
offering price.
(4) 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 annaulized basis.
(5) 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.
(6) Annualized.
(7) 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.
(8) Plus accumulated and unpaid dividends.
See notes to financial statements.
47
<Page>
<Table>
<Caption>
INSURED MICHIGAN FUND
----------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- -----------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares)(3) $ 14.325
- -----------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.824
Net realized and unrealized gain 0.262
Distributions to preferred shareholders (0.058)
- -----------------------------------------------------------------------------------------------------------------
Total income from operations $ 1.028
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.675)
- -----------------------------------------------------------------------------------------------------------------
Total distributions to common shareholders $ (0.675)
- -----------------------------------------------------------------------------------------------------------------
Preferred and Common shares offering costs charged to paid-in capital $ (0.068)
- -----------------------------------------------------------------------------------------------------------------
Preferred Shares underwriting discounts $ (0.090)
- -----------------------------------------------------------------------------------------------------------------
Net asset value -- End of period (Common shares) $ 14.520
- -----------------------------------------------------------------------------------------------------------------
Market value -- End of period (Common shares) $ 14.410
- -----------------------------------------------------------------------------------------------------------------
Total Investment Return on Net Asset Value(4) 6.12%
- -----------------------------------------------------------------------------------------------------------------
Total Investment Return on Market Value(4) 5.31%
- -----------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
48
<Page>
<Table>
<Caption>
INSURED MICHIGAN FUND
----------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of period (000's omitted) $ 21,893
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(5) 1.14%(6)
Net expenses after custodian fee reduction(5) 1.09%(6)
Net investment income(5) 6.75%(6)
Portfolio Turnover 79%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Has such actions
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(5) 1.41%(6)
Expenses after custodian fee reduction(5) 1.36%(6)
Net investment income(5) 6.48%(6)
Net investment income per share $ 0.792
- -----------------------------------------------------------------------------------------------------------------
++ The ratios reported are based on net assets applicable solely to common
shares. The ratios based on net assets, including amounts related to
preferred shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses 0.75%(6)
Net expenses after custodian fee reduction 0.71%(6)
Net investment income 4.42%(6)
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Had such actions
not been taken, the ratios would have been as follows:
Ratios (As a percentage of average total net assets):
Expenses 0.93%(6)
Expenses after custodian fee reduction 0.89%(6)
Net investment income 4.25%(6)
- -----------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 540
Asset coverage per preferred share(7) $ 65,543
Involuntary liquidation preference per preferred share(8) $ 25,000
Approximate market value per preferred share(8) $ 25,000
- -----------------------------------------------------------------------------------------------------------------
</Table>
(1) Computed using average common shares outstanding.
(2) For the period from the start of business, November 29, 2002, to September
30, 2003.
(3) Net asset value at beginning of period reflects the deduction of the sales
load of $0.675 per share paid by the shareholder from the $15.000 offering
price.
(4) Total investment return on net asset value is calculated assuming a
purchase at the offering 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) 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.
(6) Annualized.
(7) 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.
(8) Plus accumulated and unpaid dividends.
See notes to financial statements.
49
<Page>
<Table>
<Caption>
INSURED NEW JERSEY FUND
----------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- -----------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares)(3) $ 14.325
- -----------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.826
Net realized and unrealized gain 0.489
Distributions to preferred shareholders (0.058)
- -----------------------------------------------------------------------------------------------------------------
Total income from operations $ 1.257
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.675)
- -----------------------------------------------------------------------------------------------------------------
Total distributions to common shareholders $ (0.675)
- -----------------------------------------------------------------------------------------------------------------
Preferred and Common shares offering costs charged to paid-in capital $ (0.058)
- -----------------------------------------------------------------------------------------------------------------
Preferred Shares underwriting discounts $ (0.089)
- -----------------------------------------------------------------------------------------------------------------
Net asset value -- End of period (Common shares) $ 14.760
- -----------------------------------------------------------------------------------------------------------------
Market value -- End of period (Common shares) $ 14.520
- -----------------------------------------------------------------------------------------------------------------
Total Investment Return on Net Asset Value(4) 7.89%
- -----------------------------------------------------------------------------------------------------------------
Total Investment Return on Market Value(4) 6.14%
- -----------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
50
<Page>
<Table>
<Caption>
INSURED NEW JERSEY FUND
---------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of period (000's omitted) $ 37,687
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(5) 1.03%(6)
Net expenses after custodian fee reduction(5) 0.99%(6)
Net investment income(5) 6.69%(6)
Portfolio Turnover 68%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Had such actions
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(5) 1.28%(6)
Expenses after custodian fee reduction(5) 1.24%(6)
Net investment income(5) 6.44%(6)
Net investment income per share $ 0.795
- -----------------------------------------------------------------------------------------------------------------
++ The ratios reported are based on net assets applicable solely to common
shares. The ratios based on net assets, including amounts related to
preferred shares, are as follow:
Ratios (As a percentage of average total net assets):
Net expenses 0.69%(6)
Net expenses after custodian fee reduction 0.66%(6)
Net investment income 4.43%(6)
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Had such actions
not been taken, the ratios would have been as follows:
Ratios (As a percentage of average total net assets):
Expenses 0.85%(6)
Expenses after custodian fee reduction 0.82%(6)
Net investment income 4.26%(6)
- -----------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 900
Asset coverage per preferred share(7) $ 66,875
Involuntary liquidation preference per preferred share(8) $ 25,000
Approximate market value per preferred share(8) $ 25,000
- -----------------------------------------------------------------------------------------------------------------
</Table>
(1) Computed using average common shares outstanding.
(2) For the period from the start of business, November 29, 2002, to September
30, 2003.
(3) Net asset value at beginning of period reflects the deduction of the sales
load of $0.675 per share paid by the shareholder from the $15.000 offering
price.
(4) 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) 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.
(6) Annualized.
(7) 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.
(8) Plus accumulated and unpaid dividends.
See notes to financial statements.
51
<Page>
<Table>
<Caption>
INSURED NEW YORK FUND II
----------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares)(3) $ 14.325
- -------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.818
Net realized and unrealized gain 0.617
Distributions to preferred shareholders (0.057)
- -------------------------------------------------------------------------------------------------------------------
Total income from operations $ 1.378
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.686)
- -------------------------------------------------------------------------------------------------------------------
Total distributions to common shareholders $ (0.686)
- -------------------------------------------------------------------------------------------------------------------
Preferred and Common shares offering costs charged to paid-in capital $ (0.058)
- -------------------------------------------------------------------------------------------------------------------
Preferred Shares underwriting discounts $ (0.089)
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- End of period (Common shares) $ 14.870
- -------------------------------------------------------------------------------------------------------------------
Market value -- End of period (Common shares) $ 13.710
- -------------------------------------------------------------------------------------------------------------------
Total Investment Return on Net Asset Value(4) 8.87%
- -------------------------------------------------------------------------------------------------------------------
Total Investment Return on Market Value(4) 0.38%
- -------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
52
<Page>
<Table>
<Caption>
INSURED NEW YORK FUND II
----------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of period (000's omitted) $ 37,984
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(5) 1.03%(6)
Net expenses after custodian fee reduction(5) 0.98%(6)
Net investment income(5) 6.65%(6)
Portfolio Turnover 66%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Has such actions
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(5) 1.28%(6)
Expenses after custodian fee reduction(5) 1.23%(6)
Net investment income(5) 6.40%(6)
Net investment income per share $ 0.787
- -------------------------------------------------------------------------------------------------------------------
++ The ratios reported are based on net assets applicable solely to common
shares. The ratios based on net assets, including amounts related to
preferred shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses 0.68%(6)
Net expenses after custodian fee reduction 0.65%(6)
Net investment income 4.40%(6)
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Had such actions
not been taken, the ratios would have been as follows:
Ratios (As a percentage of average total net assets):
Expenses 0.85%(6)
Expenses after custodian fee reduction 0.82%(6)
Net investment income 4.23%(6)
- -------------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 900
Asset coverage per preferred share(7) $ 67,209
Involuntary liquidation preference per preferred share(8) $ 25,000
Approximate market value per preferred share(8) $ 25,000
- -------------------------------------------------------------------------------------------------------------------
</Table>
(1) Computed using average common shares outstanding.
(2) For the period from the start of business, November 29, 2002, to September
30, 2003.
(3) Net asset value at beginning of period reflects the deduction of the sales
load of $0.675 per share paid by the shareholder from the $15.000 offering
price.
(4) 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) 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.
(6) Annualized.
(7) 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.
(8) Plus accumulated and unpaid dividends.
See notes to financial statements.
53
<Page>
<Table>
<Caption>
INSURED OHIO FUND
--------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- -----------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares)(3) $ 14.325
- -----------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.776
Net realized and unrealized gain 0.402
Distributions to preferred shareholders (0.060)
- -----------------------------------------------------------------------------------------------------------------
Total income from operations $ 1.118
- -----------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.675)
- -----------------------------------------------------------------------------------------------------------------
Total distributions to common shareholders $ (0.675)
- -----------------------------------------------------------------------------------------------------------------
Preferred and Common shares offering costs charged to paid-in capital $ (0.060)
- -----------------------------------------------------------------------------------------------------------------
Preferred Shares underwriting discounts $ (0.088)
- -----------------------------------------------------------------------------------------------------------------
Net asset value -- End of period (Common shares) $ 14.620
- -----------------------------------------------------------------------------------------------------------------
Market value -- End of period (Common shares) $ 14.430
- -----------------------------------------------------------------------------------------------------------------
Total Investment Return on Net Asset Value(4) 6.85%
- -----------------------------------------------------------------------------------------------------------------
Total Investment Return on Market Value(4) 5.46%
- -----------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
54
<Page>
<Table>
<Caption>
INSURED OHIO FUND
--------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of period (000's omitted) $ 36,610
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(5) 1.05%(6)
Net expenses after custodian fee reduction(5) 0.99%(6)
Net investment income(5) 6.38%(6)
Portfolio Turnover 32%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Had such actions
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(5) 1.30%(6)
Expenses after custodian fee reduction(5) 1.24%(6)
Net investment income(5) 6.13%(6)
Net investment income per share $ 0.746
- -----------------------------------------------------------------------------------------------------------------
++ The ratios reported are based on net assets applicable solely to common
shares. The ratios based on net assets, including amounts related to
preferred shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses 0.69%(6)
Net expenses after custodian fee reduction 0.65%(6)
Net investment income 4.21%(6)
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Had such actions
not been taken, the ratios would have ben as follows:
Ratios (As a percentage of average total net assets):
Expenses 0.86%(6)
Expenses after custodian fee reduction 0.82%(6)
Net investment income 4.04%(6)
- -----------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 875
Asset coverage per preferred share(7) $ 66,841
Involuntary liquidation preference per preferred share(8) $ 25,000
Approximate market value per preferred share(8) $ 25,000
- -----------------------------------------------------------------------------------------------------------------
</Table>
(1) Computed using average common shares outstanding.
(2) For the period from the start of business, November 29, 2002, to September
30, 2003.
(3) Net asset value at beginning of period reflects the deduction of the sales
load of $0.675 per share paid by the shareholder from the $15.000 offering
price.
(4) 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) 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.
(6) Annualized.
(7) 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.
(8) Plus accumulated and unpaid dividends.
See notes to financial statements.
55
<Page>
<Table>
<Caption>
INSURED PENNSYLVANIA FUND
-----------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- ------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares)(3) $ 14.325
- ------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.811
Net realized and unrealized gain 0.331
Distributions to preferred shareholders (0.060)
- ------------------------------------------------------------------------------------------------------------------
Total income from operations $ 1.082
- ------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.681)
- ------------------------------------------------------------------------------------------------------------------
Total distributions to common shareholders $ (0.681)
- ------------------------------------------------------------------------------------------------------------------
Preferred and Common shares offering costs charged to paid-in capital $ (0.056)
- ------------------------------------------------------------------------------------------------------------------
Preferred Shares underwriting discounts $ (0.090)
- ------------------------------------------------------------------------------------------------------------------
Net asset value -- End of period (Common shares) $ 14.580
- ------------------------------------------------------------------------------------------------------------------
Market value -- End of period (Common shares) $ 14.330
- ------------------------------------------------------------------------------------------------------------------
Total Investment Return on Net Asset Value(4) 6.63%
- ------------------------------------------------------------------------------------------------------------------
Total Investment Return on Market Value(4) 4.80%
- ------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
56
<Page>
<Table>
<Caption>
INSURED PENNSYLVANIA FUND
-----------------------------
PERIOD ENDED
SEPTEMBER 30, 2003(1)(2)
- ------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of period (000's omitted) $ 42,822
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(5) 1.03%(6)
Net expenses after custodian fee reduction(5) 0.97%(6)
Net investment income(5) 6.64%(6)
Portfolio Turnover 34%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Had such actions
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(5) 1.28%(6)
Expenses after custodian fee reduction(5) 1.22%(6)
Net investment income(5) 6.39%(6)
Net investment income per share $ 0.780
- ------------------------------------------------------------------------------------------------------------------
++ The ratios reported are based on net assets applicable solely to common
shares. The ratios based on net assets, including amounts related to
preferred shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses 0.68%(6)
Net expenses after custodian fee reduction 0.64%(6)
Net investment income 4.37%(6)
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee and a reimbursement of expenses by the Adviser. Had such actions
not been taken, the ratios would have been as follows:
Ratios (As a percentage of average total net assets):
Expenses 0.84%(6)
Expenses after custodian fee reduction 0.80%(6)
Net investment income 4.20%(6)
- ------------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 1,040
Asset coverage per preferred share(7) $ 66,178
Involuntary liquidation preference per preferred share(8) $ 25,000
Approximate market value per preferred share(8) $ 25,000
- ------------------------------------------------------------------------------------------------------------------
</Table>
(1) Computed using average common shares outstanding.
(2) For the period from the start of business, November 29, 2002, to September
30, 2003.
(3) Net asset value at beginning of period reflects the deduction of the sales
load of $0.675 per share paid by the shareholder from the $15.000 offering
price.
(4) Total investment return on net asset value is calculated assuming a
purchase at the offering price of $15.000 less the sales load of $0.675 per
share paid by the shareholder on the first day and sale at the net asset
value on the last day of the period reported. Total investment return on
market value is calculated assuming a purchase at the offering price of
$15.000 less the sales load of $0.675 per share paid by the shareholder on
the first day and a sale at the current market price on the last day of the
period reported. Total investment return on net asset value and total
investment return on market value are not computed on an annualized basis.
(5) 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.
(6) Annualized.
(7) 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.
(8) Plus accumulated and unpaid dividends.
See notes to financial statements.
57
<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 II (Insured Municipal Fund II),
Eaton Vance Insured California Municipal Bond Fund II (Insured California
Fund II), Eaton Vance Insured Florida Municipal Bond Fund (Insured Florida
Fund), Eaton Vance Insured Massachusetts Municipal Bond Fund (Insured
Massachusetts Fund), Eaton Vance Insured Michigan Municipal Bond Fund
(Insured Michigan Fund), Eaton Vance Insured New Jersey Municipal Bond Fund
(Insured New Jersey Fund), Eaton Vance Insured New York Municipal Bond Fund
II (Insured New York Fund II), Eaton Vance Insured Ohio Municipal Bond Fund
(Insured Ohio Fund), and Eaton Vance Insured Pennsylvania Municipal Bond
Fund (Insured Pennsylvania Fund) (individually referred to as the Fund or
collectively the Funds) are registered under the Investment Company Act of
1940, as amended, as non-diversified, closed-end management investment
companies. Each of the Funds was organized under the laws of The
Commonwealth of Massachusetts by an Agreement and Declaration of Trust
dated October 3, 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 fair 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
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.
Additionally, at September 30, 2003, Insured Municipal Fund II, Insured
California Fund II, Insured Florida Fund, Insured Michigan Fund and Insured
Pennsylvania Fund had net capital losses of $622,940, $175,668, $74,414,
$271,775, and $61,966 respectively, attributable to security transactions
incurred after October 31, 2002. These are treated as arising on the first
day of each Fund's taxable year ending September 20, 2004.
E ORGANIZATION AND OFFERING COSTS -- Costs incurred by each Fund in
connection with its organization have been expensed. Costs incurred by each
Fund 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 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
58
<Page>
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 the financial statements in
conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of
the financial statements and the reported amounts of income and expense
during the reporting period. Actual results could differ from those
estimates.
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 January 15, 2003 in a public
offering. The underwriting discounts and other offering costs were recorded
as a reduction of 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. Initially, the Insured Municipal Fund II has
elected an Initial Dividend Period for Series B of 360 days. The Insured
Municipal Fund II pays the Series B accumulated dividends on the first
business day of each month. Final payment will be made on January 12, 2004.
Series A and Series B are identical in all respects 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
period from the date of accumulation of initial rate, January 17, 2003, to
September 30, 2003 are as indicated below:
<Table>
<Caption>
PREFERRED SHARES
ISSUED AND DIVIDENDS RATE
FUND OUTSTANDING RANGES
--------------------------------------------------------------------------
Insured Municipal Fund II Series A 1,750 0.65% - 1.20%
Insured Municipal Fund II Series B 1,750 1.35%
Insured California Fund II 1,350 0.40% - 1.15%
Insured Florida Fund 900 0.75% - 1.25%
Insured Massachusetts Fund 620 0.70% - 1.15%
Insured Michigan Fund 540 0.45% - 1.20%
Insured New Jersey Fund 900 0.65% - 1.15%
Insured New York Fund II 900 0.40% - 1.15%
Insured Ohio Fund 875 0.70% - 1.20%
Insured Pennsylvania Fund 1,040 0.70% - 1.20%
</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
Trust's By-Laws and the Investment Company Act of 1940. Each Fund pays an
annual fee equivalent to 0.25% of the preferred shares liquidation value
for the remarketing efforts associated with the preferred auction.
3 DISTRIBUTIONS TO SHAREHOLDERS
Each Fund intends to make monthly distributions of net investment income,
after payments of any dividends on any outstanding APS. Distributions are
recorded on the ex-dividend date. Distributions 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. Effective
January 17, 2003, the Series B shares of the Insured Municipal Fund II set
a special dividend period of 360 days. The Insured Municipal Fund II Series
B pays accumulated dividends on the first business day of each month. Final
payment will be made on January 12, 2004. The applicable dividend rate for
APS on September 30, 2003 are listed below. For the period ended September
30, 2003, the amount of dividends each Fund paid to Auction Preferred
59
<Page>
shareholders and average APS dividend rates for such period were as
follows:
<Table>
<Caption>
DIVIDENDS
PAID TO
PREFERRED AVERAGE APS
APS SHAREHOLDERS DIVIDEND RATES
DIVIDEND RATES FOR THE YEAR FOR THE
AS OF ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
FUND 2003 2003 2003
-----------------------------------------------------------------------------------------
Insured Municipal Fund II Series A 0.70% $ 285,933 0.93%
Insured Municipal Fund II Series B 1.35% 415,888 1.35%
Insured California Fund II 0.45% 192,472 0.81%
Insured Florida Fund 0.99% 152,002 0.96%
Insured Massachusetts Fund 0.95% 99,094 0.91%
Insured Michigan Fund 0.90% 86,751 0.91%
Insured New Jersey Fund 0.95% 143,861 0.91%
Insured New York Fund II 0.85% 143,577 0.91%
Insured Ohio Fund 0.95% 147,817 0.96%
Insured Pennsylvania Fund 0.95% 175,228 0.96%
</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 0.55% 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 period from the
start of business November 29, 2002, to September 30, 2003, the fee was
equivalent to 0.55% (annualized) of each Fund's average weekly gross assets
and amounted to $1,003,100, $386,099, $256,780, $175,757, $152,044,
$258,507, $258,678, $250,253 and $295,042, for Insured Municipal Fund II,
Insured California Fund II, Insured Florida Fund, Insured Massachusetts
Fund, Insured Michigan Fund, Insured New Jersey Fund, Insured New York Fund
II, Insured Ohio Fund and Insured Pennsylvania 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 0.15% of average weekly total assets of
each Fund during the first five full years of each Fund's operations, 0.10%
of average weekly total assets of each Fund in year six, and 0.05% in year
seven. For the period from the start of business November 29, 2002, to
September 30, 2003, EVM contractually waived $273,573, $105,356, $70,169,
$47,930, $41,466, $70,502, $70,549, $68,251 and $80,466 for Insured
Municipal Fund II, Insured California Fund II, Insured Florida Fund,
Insured Massachusetts Fund, Insured Michigan Fund, Insured New Jersey Fund,
Insured New York Fund II, Insured Ohio Fund and Insured Pennsylvania Fund,
respectively.
Eaton Vance has agreed to pay offering costs (other than sales load) that
exceed $0.03 per common share. Eaton Vance has agreed to reimburse all Fund
organization costs.
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 period from the start of business,
November 29, 2002, to September 30, 2003 were as follows:
<Table>
Insured Municipal Fund II
Purchases $ 369,102,810
Sales 141,127,948
Insured California Fund II
Purchases $ 115,895,636
Sales 28,407,343
Insured Florida Fund
Purchases $ 71,058,896
Sales 13,618,421
Insured Massachusetts Fund
Purchases $ 67,888,965
Sales 26,831,352
</Table>
60
<Page>
<Table>
Insured Michigan Fund
Purchases $ 58,729,625
Sales 24,406,113
Insured New Jersey Fund
Purchases $ 94,762,080
Sales 36,037,965
Insured New York Fund II
Purchases $ 93,253,519
Sales 34,984,355
Insured Ohio Fund
Purchases $ 72,936,204
Sales 16,320,686
Insured Pennsylvania Fund
Purchases $ 86,518,801
Sales 19,831,799
</Table>
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 II
Aggregate cost $ 230,819,860
--------------------------------------------------------
Gross unrealized appreciation $ 6,086,653
Gross unrealized depreciation (1,453,262)
--------------------------------------------------------
Net unrealized appreciation $ 4,633,391
--------------------------------------------------------
Insured California Fund II
Aggregate cost $ 87,760,534
--------------------------------------------------------
Gross unrealized appreciation $ 1,298,329
Gross unrealized depreciation --
--------------------------------------------------------
Net unrealized appreciation $ 1,298,329
--------------------------------------------------------
Insured Florida Fund
Aggregate cost $ 57,513,082
--------------------------------------------------------
Gross unrealized appreciation $ 913,373
Gross unrealized depreciation (12,684)
--------------------------------------------------------
Net unrealized appreciation $ 900,689
--------------------------------------------------------
Insured Massachusetts Fund
Aggregate cost $ 41,240,081
--------------------------------------------------------
Gross unrealized appreciation $ 575,776
Gross unrealized depreciation (68,055)
--------------------------------------------------------
Net unrealized appreciation $ 507,721
--------------------------------------------------------
Insured Michigan Fund
Aggregate cost $ 34,453,541
--------------------------------------------------------
Gross unrealized appreciation $ 701,554
Gross unrealized depreciation (22,873)
--------------------------------------------------------
Net unrealized appreciation $ 678,681
--------------------------------------------------------
Insured New Jersey Fund
Aggregate cost $ 59,075,698
--------------------------------------------------------
Gross unrealized appreciation $ 1,140,636
Gross unrealized depreciation (190,284)
--------------------------------------------------------
Net unrealized appreciation $ 950,352
--------------------------------------------------------
Insured New York Fund II
Aggregate cost $ 58,622,060
--------------------------------------------------------
Gross unrealized appreciation $ 1,332,851
Gross unrealized depreciation (101,888)
--------------------------------------------------------
Net unrealized appreciation $ 1,230,963
--------------------------------------------------------
Insured Ohio Fund
Aggregate cost $ 56,853,524
--------------------------------------------------------
Gross unrealized appreciation $ 969,441
Gross unrealized depreciation (27,605)
--------------------------------------------------------
Net unrealized appreciation $ 941,836
--------------------------------------------------------
Insured Pennsylvania Fund
Aggregate cost $ 67,063,893
--------------------------------------------------------
Gross unrealized appreciation $ 850,887
Gross unrealized depreciation (31,853)
--------------------------------------------------------
Net unrealized appreciation $ 819,034
--------------------------------------------------------
</Table>
61
<Page>
7 SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Funds to issue an unlimited number of
full and fractional $0.01 par value common shares. Transactions in common
shares for the period from the start of business November 29, 2002, to
September 30, 2003 were as follows:
<Table>
<Caption>
INSURED MUNICIPAL
FUND II
------------------------
PERIOD ENDED
SEPTEMBER 30, 2003
-----------------------------------------------------------------
Sales 9,897,891
Shares issued pursuant to the Trust's
dividend reinvestment plan 3,023
-----------------------------------------------------------------
Net increase 9,900,914
-----------------------------------------------------------------
</Table>
<Table>
<Caption>
INSURED CALIFORNIA
FUND II
------------------------
PERIOD ENDED
SEPTEMBER 30, 2003
-----------------------------------------------------------------
Sales 3,844,564
Shares issued pursuant to the Trust's
dividend reinvestment plan 26
-----------------------------------------------------------------
Net increase 3,844,590
-----------------------------------------------------------------
</Table>
<Table>
<Caption>
INSURED FLORIDA FUND
------------------------
PERIOD ENDED
SEPTEMBER 30, 2003
-----------------------------------------------------------------
Sales 2,535,523
Shares issued pursuant to the Trust's
dividend reinvestment plan 13,733
-----------------------------------------------------------------
Net increase 2,549,256
-----------------------------------------------------------------
</Table>
<Table>
<Caption>
INSURED
MASSACHUSETTS FUND
------------------------
PERIOD ENDED
SEPTEMBER 30, 2003
-----------------------------------------------------------------
Sales 1,736,767
Shares issued pursuant to the Trust's
dividend reinvestment plan 606
-----------------------------------------------------------------
Net increase 1,737,373
-----------------------------------------------------------------
</Table>
<Table>
<Caption>
INSURED MICHIGAN FUND
------------------------
PERIOD ENDED
SEPTEMBER 30, 2003
-----------------------------------------------------------------
Sales 1,500,707
Shares issued pursuant to the Trust's
dividend reinvestment plan 556
-----------------------------------------------------------------
Net increase 1,501,263
-----------------------------------------------------------------
</Table>
<Table>
<Caption>
INSURED
NEW JERSEY FUND
------------------------
PERIOD ENDED
SEPTEMBER 30, 2003
-----------------------------------------------------------------
Sales 2,546,634
Shares issued pursuant to the Trust's
dividend reinvestment plan 553
-----------------------------------------------------------------
Net increase 2,547,187
-----------------------------------------------------------------
</Table>
<Table>
<Caption>
INSURED NEW YORK
FUND II
------------------------
PERIOD ENDED
SEPTEMBER 30, 2003
-----------------------------------------------------------------
Sales 2,546,647
Shares issued pursuant to the Trust's
dividend reinvestment plan 289
-----------------------------------------------------------------
Net increase 2,546,936
-----------------------------------------------------------------
</Table>
<Table>
<Caption>
INSURED OHIO FUND
------------------------
PERIOD ENDED
SEPTEMBER 30, 2003
-----------------------------------------------------------------
Sales 2,496,446
Shares issued pursuant to the Trust's
dividend reinvestment plan 1,073
-----------------------------------------------------------------
Net increase 2,497,519
-----------------------------------------------------------------
</Table>
<Table>
<Caption>
INSURED
PENNSYLVANIA FUND
------------------------
PERIOD ENDED
SEPTEMBER 30, 2003
-----------------------------------------------------------------
Sales 2,930,531
Shares issued pursuant to the Trust's
dividend reinvestment plan 426
-----------------------------------------------------------------
Net increase 2,930,957
-----------------------------------------------------------------
</Table>
62
<Page>
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 II 12/03 375 U.S. Treasury Bond Short $ (2,179,397)
-----------------------------------------------------------------------------------------------
Insured California II 12/03 125 U.S. Treasury Bond Short $ (651,469)
-----------------------------------------------------------------------------------------------
Insured Florida 12/03 85 U.S. Treasury Bond Short $ (444,098)
-----------------------------------------------------------------------------------------------
Insured Massachusetts 12/03 60 U.S. Treasury Bond Short $ (357,911)
-----------------------------------------------------------------------------------------------
Insured Michigan 12/03 47 U.S. Treasury Bond Short $ (187,969)
-----------------------------------------------------------------------------------------------
Insured New Jersey 12/03 75 U.S. Treasury Bond Short $ (447,389)
-----------------------------------------------------------------------------------------------
Insured New York II 12/03 40 U.S. Treasury Bond Short $ (253,305)
-----------------------------------------------------------------------------------------------
Insured Ohio 12/03 35 U.S. Treasury Bond Short $ (221,642)
-----------------------------------------------------------------------------------------------
Insured Pennsylvania 12/03 96 U.S. Treasury Bond Short $ (500,437)
-----------------------------------------------------------------------------------------------
</Table>
At September 30, 2003, each Fund had sufficient cash and/or securities to
cover margin requirements on open future 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 II
For 9,822,474 9,823,308
Withheld 59,717 58,883
Insured California Fund II
For 3,819,284 3,819,284
Withheld 7,809 7,809
Insured Florida Fund
For 2,484,057 2,484,057
Withheld 15,231 15,231
Insured Massachusetts Fund
For 1,707,098 1,707,098
Withheld 5,820 5,820
Insured Michigan Fund
For 1,489,114 1,489,114
Withheld 11,673 11,673
Insured New Jersey Fund
For 2,536,240 2,538,240
Withheld 4,800 2,800
Insured New York Fund II
For 2,464,633 2,464,813
Withheld 41,170 40,990
Insured Ohio Fund
For 2,456,532 2,458,272
Withheld 20,720 18,980
Insured Pennsylvania Fund
For 2,868,198 2,875,698
Withheld 27,973 20,473
</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.
63
<Page>
EATON VANCE INSURED MUNICIPAL BONDS FUND as of September 30, 2003
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND SHAREHOLDERS OF EATON VANCE EATON VANCE INSURED MUNICIPAL
BOND FUND II, EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND II, EATON VANCE
INSURED FLORIDA MUNICIPAL BOND FUND, EATON VANCE INSURED MASSACHUSETTS MUNICIPAL
BOND FUND, EATON VANCE INSURED MICHIGAN MUNICIPAL BOND FUND, EATON VANCE INSURED
NEW JERSEY MUNICIPAL BOND FUND, EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND
II, EATON VANCE INSURED OHIO MUNICIPAL BOND FUND, AND EATON VANCE INSURED
PENNSYLVANIA MUNICIPAL BOND FUND:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Eaton Vance Insured Municipal Bond Fund II,
Eaton Vance Insured California Municipal Bond Fund II, Eaton Vance Insured
Florida Municipal Bond Fund, Eaton Vance Insured Massachusetts Municipal Bond
Fund, Eaton Vance Insured Michigan Municipal Bond Fund, Eaton Vance Insured New
Jersey Municipal Bond Fund, Eaton Vance Insured New York Municipal Bond Fund II,
Eaton Vance Insured Ohio Municipal Bond Fund, and Eaton Vance Insured
Pennsylvania Municipal Bond Fund (the "Funds") as of September 30, 2003, and the
related statements of operations and changes in net assets and financial
highlights for the period from the start of business, November 29, 2002 to
September 30, 2003. 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 II, Eaton Vance Insured California Municipal
Bond Fund II, Eaton Vance Insured Florida Municipal Bond Fund, Eaton Vance
Insured Massachusetts Municipal Bond Fund, Eaton Vance Insured Michigan
Municipal Bond Fund, Eaton Vance Insured New Jersey Municipal Bond Fund, Eaton
Vance Insured New York Municipal Bond Fund II, Eaton Vance Insured Ohio
Municipal Bond Fund, and Eaton Vance Insured Pennsylvania Municipal Bond Fund at
September 30, 2003, the results of their operations, the changes in their net
assets and their financial highlights for the period from the start of business,
November 29, 2002 to September 30, 2003, in conformity with accounting
principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 18, 2003
64
<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.
65
<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 32, 7, 9, 6, 8, 9,
20, 21 and 55 registered shareholders for Insured Municipal Fund II, Insured
California Fund II, Insured Florida Fund, Insured Massachusetts Fund, Insured
Michigan Fund, Insured New Jersey Fund, Insured New York Fund II, Insured Ohio
Fund and Insured Pennsylvania Fund, respectively, and approximately 4,600,
1,500, 1,200, 800, 900, 1,500, 1,200, 1,500 and 1,900 shareholders owning the
Fund shares in street name, such as through brokers, banks, and financial
intermediaries for Insured Municipal Fund II, Insured California Fund II,
Insured Florida Fund, Insured Massachusetts Fund, Insured Michigan Fund, Insured
New Jersey Fund, Insured New York Fund II, Insured Ohio Fund and Insured
Pennsylvania Fund, respectively.
If you are a street name shareholder and wish to receive Fund reports directly,
which contain important information about a Fund, please write or call:
Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
1-800-225-6265
66
<Page>
AMERICAN STOCK EXCHANGE SYMBOLS
Insured Municipal Fund II EIV
Insured California Fund II EIA
Insured Florida Fund EIF
Insured Massachusetts Fund MAB
Insured Michigan Fund MIW
Insured New Jersey Fund EMJ
Insured New York Fund II NYH
Insured Ohio Fund EIO
Insured Pennsylvania Fund EIP
67
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS
MANAGEMENT AND ORGANIZATION
Fund Management. The Trustees and officers of Eaton Vance Insured Municipal Bond
Fund II (EIV), Eaton Vance Insured California Municipal Bond Fund II (EIA),
Eaton Vance Insured Florida Municipal Bond Fund (EIF), Eaton Vance Insured
Massachusetts Municipal Bond Fund (MAB), Eaton Vance Insured Michigan Municipal
Bond Fund (MIW), Eaton Vance Insured New Jersey Municipal Bond Fund (EMJ), Eaton
Vance Insured New York Municipal Bond Fund II (NYH), Eaton Vance Insured Ohio
Municipal Bond Fund (EIO), and Eaton Vance Pennsylvania Municipal Bond Fund
(EIP), (the Funds) are listed below. Except as indicated, each individual has
held the office shown or other offices in the same company for the last five
years. The "noninterested Trustees" consist of those Trustees who are not
"interested persons" of the Funds, as that term is defined under the 1940 Act.
The business address of each Trustee and officer is 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. 3 years. President and Chief 191 None
11/28/59 Trustee since 2002. Executive Officer of
National Financial
Partners (financial
services company)
(since April 1999).
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. 3 years. Chairman, President and 193 Director of EVC
11/9/41 Vice Trustee since 2002. Chief Executive Officer
President of BMR, EVC, EVM and
EV; Director of EV;
Vice President and
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.
<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. 3 years. Jacob H. Schiff 193 Director of Tiffany & Co.
2/23/35 Trustee since 2002. Professor of Investment (specialty retailer) and
Banking Emeritus, Telect, Inc.
Harvard University (telecommunication
Graduate School of services company)
Business
Administration.
William H. Park Trustee Until 2006. 3 years. President and Chief 190 None
9/19/47 Trustee since 2003. Executive Officer,
Prizm Capital
Management, LLC
(investment 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).
</Table>
68
<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)
Ronald A. Pearlman Trustee Until 2005. 3 years. Professor of Law, 190 None
7/10/40 Trustee since 2003. Georgetown University
Law Center (since
1999). Tax Partner,
Covington & Burling,
Washington, DC
(1991-2000).
Norton H. Reamer(A) Trustee Until 2005. 3 years. President and Chief 193 None
9/21/35 Trustee since 2002. Executive Officer of
Asset Management
Finance Corp. (a
specialty 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. 3 years. Professor of Law, 193 None
9/14/57 Trustee since 2002. University of
California at Los
Angeles School of Law
(since July 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 The
8/20/43 Massachusetts Health & Education Tax-Exempt Trust. Officer of 128
registered investment companies managed by EVM or BMR.
William H. Ahern, Jr. Vice President of MIW Since 2002 Vice President of EVM and BMR. Officer of 36 registered
7/28/59 investment companies managed by EVM or BMR.
Cynthia J. Clemson Vice President of EIA, Since 2002 Vice President of EVM and BMR. Officer of 20 registered
3/2/63 EIF, and EIP 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 BMR, EVM,
10/10/40 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 registered
4/1/45 investment companies managed by EVM or BMR.
</Table>
(1) Includes both master and feeder funds in a master-feeder structure.
(A) APS Trustee.
69
<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>
1557-11/03 91MBIISRC
<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 II
- -------------------------------------------
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 II
- -----------------------------------------------------
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 Florida 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 Massachusetts 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/ Jams 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 Michigan 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 Jersey 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 II
- ---------------------------------------------------
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 Ohio 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 Pennsylvania 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
-----------------