<Page>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-21142
---------
Eaton Vance Insured 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
March 31, 2004
--------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-21147
---------
Eaton Vance Insured California Municipal Bond Fund
--------------------------------------------------
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
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
March 31, 2004
--------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-21148
---------
Eaton Vance Insured New York Municipal Bond Fund
------------------------------------------------
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
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
March 31, 2004
--------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
[EV LOGO]
[GRAPHIC IMAGE]
SEMIANNUAL REPORT MARCH 31, 2004
[GRAPHIC IMAGE]
EATON VANCE
INSURED
MUNICIPAL
BOND
FUNDS
CLOSED-END FUNDS:
INSURED MUNICIPAL
INSURED CALIFORNIA
INSURED NEW YORK
[GRAPHIC IMAGE]
<Page>
EATON VANCE FUNDS
EATON VANCE MANAGEMENT
BOSTON MANAGEMENT AND RESEARCH
EATON VANCE DISTRIBUTORS, INC.
PRIVACY NOTICE
The Eaton Vance organization is committed to ensuring your financial privacy.
This notice is being sent to comply with privacy regulations of the Securities
and Exchange Commission. Each of the above financial institutions has in effect
the following policy with respect to nonpublic personal information about its
customers:
- - Only such information received from you, through application forms or
otherwise, and information about your Eaton Vance fund transactions will be
collected.
- - None of such information about you (or former customers) will be disclosed to
anyone, except as permitted by law (which includes disclosure to employees
necessary to service your account).
- - Policies and procedures (including physical, electronic and procedural
safeguards) are in place that are designed to protect the confidentiality of
such information.
For more information about Eaton Vance's privacy policies, call: 1-800-262-1122
----------
IMPORTANT NOTICE
REGARDING DELIVERY OF
SHAREHOLDER DOCUMENTS
The Securities and Exchange Commission permits funds to deliver only one copy of
shareholder documents, including prospectuses, proxy statements and shareholder
reports, to fund investors with multiple accounts at the same residential or
post office box address. This practice is often called "householding" and it
helps eliminate duplicate mailings to shareholders.
EATON VANCE, OR YOUR FINANCIAL ADVISER, MAY HOUSEHOLD THE MAILING OF YOUR
DOCUMENTS INDEFINITELY UNLESS YOU INSTRUCT EATON VANCE, OR YOUR FINANCIAL
ADVISER, OTHERWISE.
If you would prefer that your Eaton Vance documents not be householded, please
contact Eaton Vance at 1-800-262-1122, or contact your financial adviser.
Your instructions that householding not apply to delivery of your Eaton Vance
documents will be effective within 30 days of receipt by Eaton Vance or your
financial adviser.
From time to time, funds are required to vote proxies related to the securities
held by the funds. The Eaton Vance Funds or their underlying Portfolios 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 March 31, 2004
LETTER TO SHAREHOLDERS
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
President
Amid the market volatility of recent years, many investors have become more
concerned with risk management. That trend has been especially true in the
municipal bond market, where the use of bond insurance has become increasingly
common. Today, roughly half of all municipal bond issuance is composed of
insured bonds. As part of our continuing educational series, we thought it might
be helpful to discuss bond insurance and its impact on the municipal market.
THE USE OF BOND INSURANCE HAS GROWN DRAMATICALLY OVER THE YEARS...
Municipal bond insurance was initially developed in 1971, when AMBAC Assurance
Corp., the nation's first municipal insurer, offered insurance as a way to
guarantee principal and interest payments on bond issues in the event of a bond
default. Over the following three decades, the municipal market has witnessed a
surge in the use of insurance. For example, in 1980, just 3% of all municipal
issuance was insured. However, by late 2003, that figure had risen to roughly
50%. Insurance has clear benefits for purchasers: the elimination of default
risk of the underlying issuer, AAA quality ratings and an enhancement of an
issue's liquidity. (It's important to note that, while insured bonds are insured
as to principal and interest payments, they still remain subject to interest
rate and market risks.)
THE MECHANICS OF MUNICIPAL BOND INSURANCE...
We start with the underlying reality that an issuer with a AAA credit rating
will pay less in interest expense than an issuer with a lower credit rating.
Thus, an issuer must first determine whether purchasing insurance is financially
feasible. That is, will the interest savings offset the cost of insurance? If
so, the issuer must then qualify for insurance. Just as an individual must
qualify for insurance, so must a bond issuer meet certain criteria. The issuer
provides key financial data and documents to potential insurers that are then
used to assess the issuer's financial strength and underlying fundamentals. If
the issuer qualifies, insurance is then effected by "direct purchase," with the
payment of a one-time premium by the issuer. The premium fee is calculated as a
percentage of the value of the bond issue - typically, around 50 basis points
(0.50%), but more if the credit entails higher risk. (An alternative method of
purchase involves "elective bidding," in which the insurance is purchased by
bond dealers, who determine at the time the bond is sold whether it is more
attractive as an insured or uninsured bond.)
IN-DEPTH CREDIT ANALYSIS INCLUDES INSURERS AS WELL AS BOND ISSUERS...
When analyzing municipal bonds, an investor naturally researches the issuer's
fundamentals. However, if the bond is insured, the analyst is concerned with the
soundness of the insurer as well. At Eaton Vance, analysis of the insured
segment is an integral part of our total municipal research effort. Research
includes, among other areas, analysis of an insurer's claims-paying ability, its
capital structure and the overall quality of its portfolio of policies. Based on
claims-paying ability, there are currently six bond insurers rated AAA by
Moody's Investors Service, Standard & Poor's and Fitch Ratings - the nation's
leading rating agencies.
INSURERS CAN PLAY A VALUABLE ROLE IN STRUCTURING BOND DEALS AND IMPROVING CREDIT
QUALITY...
Insurers play an important role in capital formation for municipal borrowers,
working closely with municipal officials to forge deals that raise capital for
vital projects at affordable interest rates. In so doing, the insurers can help
states and municipalities achieve more efficient fiscal management. Insurers
often re-structure bond deals by insisting on provisions that are intended to
make the deal more secure. That has proved a major benefit to investors in
recent years. In a more risk-conscious climate, we believe that an ongoing
analysis of the insured market is a necessary discipline to invest successfully
in today's municipal market.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
May 12, 2004
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
U.S. economic activity continued to make progress in the six months ended March
31, 2004, although the pace of the recovery was a topic of strong debate.
Businesses increased capital spending, reinvesting in plants and equipment.
Meanwhile, consumer spending remained very resilient, despite deepening concerns
over the continuing conflict in Iraq, slow job growth and sharply rising
gasoline prices. However, the investment climate remained generally positive
and, against this backdrop, the bond market generated solid returns during the
period.
THE CONSTRUCTION AND BUSINESS SERVICE SECTORS WERE AMONG THE LEADERS IN JOB
GROWTH...
Construction employment, while subject to seasonal fluctuations, contributed
strongly to the economy. Gains were also seen in the service sector, where
business services, health care, education, retailing and leisure showed
strength. Interestingly, temporary employment agencies reported some weakness,
suggesting that employers may be increasingly inclined to begin hiring permanent
employees. The manufacturing sector remained lackluster. However, hopes rose
that recent trends showing less deterioration might mark an end to the
relentless job losses dating to 2000.
WHILE KEEPING INTEREST RATES AT A RECORD LOW, THE FEDERAL RESERVE CONTINUED TO
MONITOR THE ECONOMY CLOSELY FOR INFLATION...
The nation's Gross Domestic Product grew by 4.2% in the first quarter of 2004,
following a 4.1% rise in the fourth quarter of 2003. While the data suggested a
sound overall economy, the slow pace of job creation remained a concern. The
nation's unemployment rate was 5.7% in March 2004, down just 0.1% from 5.8% a
year earlier. Recent labor market data have been unusually volatile. The Federal
Reserve is likely to keep a close eye on future jobs reports - as well as prices
of key commodities and consumer goods - for signs of a return of inflation. Late
in the period, inflation appeared to be edging somewhat higher, especially
energy, transportation and clothing costs. Nevertheless, through March, the
Federal Reserve held its Federal Funds rate - a key short-term interest rate
barometer - at 1.00%, where it has stood since June 2003.
MUNICIPAL BOND YIELDS NEARLY EQUALLED TREASURY YIELDS
<Table>
30-YEAR AAA-RATED GENERAL OBLIGATION (GO) BONDS* 4.75%
TAXABLE EQUIVALENT YIELD IN 35.0% TAX BRACKET 7.31%
30-YEAR TREASURY BOND 4.77%
</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 THE FUNDS' YIELD STATISTICS AS OF
MARCH 31, 2004.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
SOURCE BLOOMBERG, L.P.
The municipal bond market performed generally in line with the Treasury market
during the six-month period ended March 31, 2004. Ten-year Treasury bond yields
- - which were around 3.93% at September 30, 2003 - declined to 3.83% by March 31,
2004, while 10-year municipal yields fell from 3.76% to 3.64%. The Lehman
Brothers Municipal Bond Index posted a total return of 3.12% for the six months
ended March 31, 2004.*
STATE TAX RATES ROSE AGAIN IN 2003, INCREASING THE BURDEN ON STATE TAXPAYERS...
While federal taxes declined, state taxes rose significantly in 2002 and 2003,
according to the Tax Foundation. Over the past decade, the fastest growing
category of state tax collections was individual income taxes, which rose at an
average annual rate of 7.7%. That trend has left taxpayers with a larger state
tax bill and made a strong case for municipal bonds as one of the few remaining
ways to pare one's tax burden. Thus, we continue to believe that municipal bonds
remain a worthwhile consideration for tax-conscious investors.
* It is not possible to invest directly in an Index.
THE VIEWS EXPRESSED THROUGHOUT THIS REPORT ARE THOSE OF THE VARIOUS PORTFOLIO
MANAGERS AND ARE CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS
STATED ON THE COVER. THESE VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON
MARKET OR OTHER CONDITIONS, AND EATON VANCE DISCLAIMS ANY RESPONSIBILITY TO
UPDATE SUCH VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND,
BECAUSE INVESTMENT DECISIONS FOR AN EATON VANCE FUND ARE BASED ON MANY FACTORS,
MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY EATON
VANCE FUND.
3
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUND as of March 31, 2004
INVESTMENT UPDATE
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
Portfolio Manager
MANAGEMENT UPDATE
- - While some measures suggested the U.S. economy was slowly recovering, job
growth remained sluggish. The nation's manufacturing sector continued to shed
jobs, while global outsourcing took an increasing toll on the technology and
service sectors. The nation's jobless rate was 5.7% in March 2004, down from
5.8% a year ago.
- - Insured* transportation bonds remained the Fund's largest sector weighting at
March 31, 2004. These issues financed upgrades needed for the nation's vital
transportation grid, and represented a wide range of projects, including
highways, turnpikes, toll bridges, rapid transit and urban monorails.
- - Insured* general obligation bonds (GOs) remained a key emphasis for the Fund.
In a slow recovery, many states and municipalities have faced lower income
and sales tax receipts. Insured* GOs provided a measure of insulation from
those revenue-related uncertainties.
- - Insured* electric utility bonds were a significant investment. Electric power
issues are attractive to investors in an uncertain economy because they
represent an essential service, a non-discretionary expenditure backed by
utility bill payments.
- - The Fund emphasized a broad diversification by sector, issuer and coupon
allocation. Management maintained a balance between current coupon issues and
zero-coupon issues for appreciation potential.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 113
- - Effective Maturity: 12.6 years
- - Average Rating: AA+
- - Average Call: 11.6 years
- - Average Dollar Price: $90.74
</Table>
THE FUND
PERFORMANCE FOR THE PAST SIX MONTHS
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 11.04% for the six months ended March 31, 2004. That return
was the result of an increase in share price to $14.59 on March 31, 2004 from
$13.58 on September 30, 2003, and the reinvestment of $0.469 in regular
monthly dividends.(3)
- - Based on net asset value, the Fund had a total return of 5.82% for the six
months ended March 31, 2004. That return was the result of an increase in net
asset value to $15.02 on March 31, 2004 from $14.67 on September 30, 2003,
and the reinvestment of all distributions.(3)
- - Based on the most recent dividend and a share price of $14.59, the Fund had a
market yield of 6.43% at March 31, 2004.(4) The Fund's market yield is
equivalent to a taxable yield of 9.89%.(5)
RATING DISTRIBUTION(1),(2)
By total investments
[CHART]
<Table>
AAA 84.5%
AA 4.5%
A 5.8%
BBB 4.3%
Non-Rated 0.9%
</Table>
FUND INFORMATION
as of March 31, 2004
PERFORMANCE(6)
Average Annual Total Returns (by share price, American Stock Exchange)
<Table>
One year 12.62%
Life of Fund (8/30/02) 7.57
</Table>
Average Annual Total Returns (by net asset value)
<Table>
One year 10.88%
Life of Fund (8/30/02) 9.55
</Table>
(1) FUND STATISTICS AND RATING DISTRIBUTION 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 INCOME 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.
PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM THE
FUND'S ISSUANCE OF AUCTION PREFERRED SHARES.
* 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. PERFORMANCE IS FOR THE STATED TIME PERIOD
ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER
OR HIGHER THAN QUOTED RETURN.
4
<Page>
EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND as of March 31, 2004
INVESTMENT UPDATE
[PHOTO OF CYNTHIA J. CLEMSON]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
- - The California economy saw stagnant job growth in 2003, as the manufacturing,
government, information and entertainment sectors struggled. Construction,
financial services, leisure, tourism and selected service sectors led the way
in job creation. The state's March 2004 jobless rate was 6.5%, down from 6.8%
a year ago.
- - Insured* general obligation bonds (GOs) were the Fund's largest sector
weighting at March 31, 2004. The Fund's holdings focused on school district
and college district bond issues, diversified among large urban issuers as
well as smaller communities throughout the state.
- - Insured* lease revenue/certificates of participation (COPs) were prominent
investments. These instruments provide a mechanism for financing, whereby
communities can achieve cost-effective funding for public projects.
- - The Fund maintained a significant investment in essential services bonds,
including insured* water and insured* 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 its efforts toward broad diversification according to
market sector and issuer. Management also made adjustments as warranted to
the Fund's coupon structure to reflect changing market conditions.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 93
- - Effective Maturity: 9.8 years
- - Average Rating: AAA
- - Average Call: 9.0 years
- - Average Dollar Price: $92.55
</Table>
THE FUND
PERFORMANCE FOR THE PAST SIX MONTHS
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 11.42% for the six months ended March 31, 2004. That return
was the result of an increase in share price to $14.47 on March 31, 2004 from
$13.41 on September 30, 2003, and the reinvestment of $0.450 in regular
monthly dividends.(3)
- - Based on net asset value, the Fund had a total return of 6.90% for the six
months ended March 31, 2004. That return was the result of an increase in net
asset value to $14.68 on March 31, 2004 from $14.18 on September 30, 2003,
and the reinvestment of all distributions.(3)
- - Based on the most recent dividend and a share price of $14.47, the Fund had a
market yield of 6.22% at March 31, 2004.(4) The Fund's market yield is
equivalent to a taxable yield of 10.55%.(5)
RATING DISTRIBUTION(1),(2)
By total investments
[CHART]
<Table>
AAA 90.4%
AA 4.3%
A 3.9%
BBB 1.4%
</Table>
FUND INFORMATION
as of March 31, 2004
PERFORMANCE(6)
Average Annual Total Returns (by share price, American Stock Exchange)
<Table>
One year 14.66%
Life of Fund (8/30/02) 7.01
</Table>
Average Annual Total Returns (by net asset value)
<Table>
One year 9.96%
Life of Fund (8/30/02) 7.98
</Table>
(1) FUND STATISTICS AND RATING DISTRIBUTION 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 AND STATE INCOME
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.
PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM THE
FUND'S ISSUANCE OF AUCTION PREFERRED SHARES.
* 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. PERFORMANCE IS FOR THE STATED TIME PERIOD
ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER
OR HIGHER THAN QUOTED RETURN.
5
<Page>
EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND as of March 31, 2004
INVESTMENT UPDATE
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
Portfolio Manager
MANAGEMENT UPDATE
- - The New York economy improved in 2003 and early 2004, although job creation
was sporadic. The pace of hiring in the key financial services and
manufacturing sectors remained central to the still-evolving recovery of the
New York economy. The state's March 2004 jobless rate was 6.5%, up slightly
from 6.3% a year ago.
- - Insured* transportation bonds were the Fund's largest sector weighting at
March 31, 2004. The Fund's investments included port authorities, tunnel and
bridge authorities, the state thruway and New York City rapid transit bonds.
These facilities handle huge daily volumes of passenger and freight traffic
and, therefore, play a key role in the state's economy.
- - The Fund had large investments in insured* private education bonds.
Investments focused largely on Dormitory Authority bonds, one of New York's
largest sources of municipal issuance. These investments funded projects for
some of the state's finest universities.
- - Insured* hospital bonds represented a large commitment for the Fund. The
hospital industry has seen a trend toward cost containment. The Fund
emphasized institutions we believe have sound financial structures, good
management and in-demand health care specialties.
- - In the slow recovery, the Fund has been well served by its broad
diversification. In addition to diversifying according to issuer, sector and
insurer, management maintained a well-diversified coupon allocation.
FUND STATISTICS(1)
<Table>
- - Number of Issues: 63
- - Effective Maturity: 9.4 years
- - Average Rating: AAA
- - Average Call: 9.2 years
</Table>
THE FUND
PERFORMANCE FOR THE PAST SIX MONTHS
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 11.26% for the six months ended March 31, 2004. That return
was the result of an increase in share price to $14.50 on March 31, 2004 from
$13.45 on September 30, 2003, and the reinvestment of $0.450 in regular
monthly dividends.(3)
- - Based on net asset value, the Fund had a total return of 3.78% for the six
months ended March 31, 2004. That return was the result of an increase in net
asset value to $14.56 on March 31, 2004 from $14.48 on September 30, 2003,
and the reinvestment of all distributions.(3)
- - Based on the most recent dividend and a share price of $14.50, the Fund had a
market yield of 6.21% at March 31, 2004.(4) The Fund's market yield is
equivalent to a taxable yield of 10.35%.(5)
RATING DISTRIBUTION(1),(2)
By total investments
[CHART]
<Table>
AAA 86.1%
AA 10.1%
A 3.6%
BBB 0.2%
</Table>
FUND INFORMATION
as of March 31, 2004
PERFORMANCE(6)
Average Annual Total Returns (by share price, American Stock Exchange)
<Table>
One year 13.19%
Life of Fund (8/30/02) 7.01
</Table>
Average Annual Total Returns (by net asset value)
<Table>
One year 7.59%
Life of Fund (8/30/02) 7.29
</Table>
(1) FUND STATISTICS AND RATING DISTRIBUTION 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 AND STATE INCOME
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 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.
PERFORMANCE RESULTS REFLECT THE EFFECT OF LEVERAGE RESULTING FROM THE
FUND'S ISSUANCE OF AUCTION PREFERRED SHARES.
* 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. PERFORMANCE IS FOR THE STATED TIME PERIOD
ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER
OR HIGHER THAN QUOTED RETURN.
6
<Page>
INSURED MUNICIPAL BOND FUND as of March 31, 2004
PORTFOLIO OF INVESTMENTS (Unaudited)
TAX-EXEMPT INVESTMENTS -- 159.8%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 7.9%
$ 3,750 California, 5.00%, 2/1/33 $ 3,753,900
10,000 California, 5.125%, 11/1/24 10,189,200
13,000 California, 5.25%, 11/1/29 13,339,040
15,000 California, 5.25%, 4/1/30 15,329,100
13,250 California, 5.50%, 11/1/33 13,887,722
19,500 New York City, NY, 5.25%, 1/15/33 20,456,865
- --------------------------------------------------------------------------------------------
$ 76,955,827
- --------------------------------------------------------------------------------------------
HOSPITAL -- 3.1%
$ 3,500 Cuyahoga County, OH, (Cleveland Clinic Health
System), 5.50%, 1/1/29 $ 3,663,695
6,900 Hawaii Pacific Health, 5.60%, 7/1/33 7,021,440
5,525 Highlands County, FL, Health Facilities Authority,
(Adventist Health System), 5.375%, 11/15/35 5,698,430
8,500 Lehigh County, PA, General Purpose Authority,
(Lehigh Valley Health Network), 5.25%, 7/1/32 8,746,840
4,500 South Miami, FL, Health Facility Authority,
(Baptist Health), 5.25%, 11/15/33 4,616,370
- --------------------------------------------------------------------------------------------
$ 29,746,775
- --------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 15.4%
$ 21,355 Chelan County, WA, Public Utility District No. 1,
(Columbia River), (MBIA), 0.00%, 6/1/27 $ 6,284,990
14,500 Forsyth, MT, PCR, (Puget Sound Energy),
(AMBAC), 5.00%, 3/1/31 15,162,940
3,000 Municipal Energy Agency, NE, (Power Supply
System), (FSA), 5.00%, 4/1/36 3,117,450
8,585 Nebraska Public Power District, (AMBAC),
5.00%, 1/1/27 8,982,400
26,930 Nebraska Public Power District, (AMBAC),
5.00%, 1/1/35 28,030,898
60,755 South Carolina Public Service Authority, (FSA),
5.125%, 1/1/37 63,321,291
19,490 Southern Minnesota Municipal Power Agency,
(MBIA), 0.00%, 1/1/21 9,024,455
10,650 Southern Minnesota Municipal Power Agency,
(MBIA), 0.00%, 1/1/22 4,652,878
21,745 Southern Minnesota Municipal Power Agency,
(MBIA), 0.00%, 1/1/24 8,472,287
6,000 Westmoreland County, PA, Municipal Authority,
(MBIA), 0.00%, 8/15/23 2,304,960
- --------------------------------------------------------------------------------------------
$ 149,354,549
- --------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 28.7%
$ 4,500 Alvin, TX, Independent School District, (MBIA),
3.25%, 2/15/27 $ 3,586,995
60,000 California, (XLCA), 5.00%, 10/1/28 62,035,200
17,380 Chicago, IL, (MBIA), 5.00%, 1/1/41 17,833,444
15,530 Chicago, IL, Board of Education, (Chicago School
Reform), (FGIC), 0.00%, 12/1/30 3,909,522
41,300 Chicago, IL, Board of Education, (Chicago School
Reform), (FGIC), 0.00%, 12/1/21 17,439,338
36,135 Chicago, IL, Board of Education, (FGIC),
0.00%, 12/1/30 9,120,474
10,000 Chicago, IL, Board of Education, (FGIC),
0.00%, 12/1/31 2,390,500
19,000 Chicago, IL, Board of Education, (FGIC),
0.00%, 12/1/29 5,055,900
10,500 Chicago, IL, Board of Education, (FGIC),
0.00%, 12/1/29 2,797,620
10,000 Detroit, MI, School District, (FGIC),
5.00%, 5/1/32 10,408,400
14,375 Detroit, MI, School District, (FGIC),
5.25%, 5/1/28 15,316,706
2,880 Gadsden, AL, (AMBAC), 5.125%, 8/1/28 3,048,019
20,425 Kane Cook and Du Page Counties, IL, School
District No. 46, (AMBAC), 0.00%, 1/1/21 8,960,448
50,650 Kane Cook and Du Page Counties, IL, School
District No. 46, (AMBAC), 0.00%, 1/1/22 20,935,165
10,000 King County, WA, (MBIA), 5.25%, 1/1/34 10,439,000
44,000 Massachusetts, (AMBAC), 5.50%, 8/1/30 50,857,840
10,000 Phoenix, AZ, (AMBAC), 3.00%, 7/1/28 7,636,900
21,300 Washington, (Motor Vehicle Fuel), (MBIA),
0.00%, 6/1/25 7,205,151
21,125 Washington, (Motor Vehicle Fuel), (MBIA),
0.00%, 6/1/26 6,738,030
21,070 Washington, (Motor Vehicle Fuel), (MBIA),
0.00%, 6/1/27 6,357,030
21,510 Washington, (Motor Vehicle Fuel), (MBIA),
0.00%, 6/1/28 6,153,796
- --------------------------------------------------------------------------------------------
$ 278,225,478
- --------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 2.5%
$ 5,000 California Health Facilities Financing Authority,
(Sutter Health), (MBIA), 5.00%, 8/15/38 $ 5,131,450
11,700 Maryland HEFA, (Medlantic/Helix Issue),
(AMBAC), 5.25%, 8/15/38 12,908,844
6,000 Maryland HEFA, (Medlantic/Helix Issue), (FSA),
5.25%, 8/15/38 6,619,920
- --------------------------------------------------------------------------------------------
$ 24,660,214
- --------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
7
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
INSURED-INDUSTRIAL DEVELOPMENT REVENUE -- 0.6%
$ 5,425 Puerto Rico Public Buildings Authority,
(Government Facilities), (CIFG), 5.25%, 7/1/23 $ 6,083,324
- --------------------------------------------------------------------------------------------
$ 6,083,324
- --------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 6.0%
$ 12,010 Anaheim, CA, Public Financing Authority Lease
Revenue, (FSA), 5.00%, 3/1/37 $ 12,288,992
1,650 New Jersey EDA, (School Facilities), (AMBAC),
4.375%, 9/1/29 1,610,351
42,795 San Jose, CA, Financing Authority, (Civic Center),
(AMBAC), 5.00%, 6/1/37 44,179,418
- --------------------------------------------------------------------------------------------
$ 58,078,761
- --------------------------------------------------------------------------------------------
INSURED-OTHER REVENUE -- 0.5%
$ 5,000 New York City, NY, Trust for Cultural Resources,
(Wildlife Conservation Society), (FGIC),
4.50%, 2/1/34 $ 4,922,200
- --------------------------------------------------------------------------------------------
$ 4,922,200
- --------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 2.9%
$ 2,920 Massachusetts Development Finance Agency,
(Brandeis University), (FGIC),
4.75%, 10/1/33 $ 2,934,425
10,000 Massachusetts Development Finance Agency,
(Franklin W. Olin College), (XLCA),
5.25%, 7/1/33 10,473,000
14,900 Massachusetts HEFA, (Boston University),
(FGIC), 4.50%, 10/1/37 14,463,281
- --------------------------------------------------------------------------------------------
$ 27,870,706
- --------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 4.3%
$ 40,440 University of California, (FGIC), 5.00%, 9/1/27 $ 41,311,078
- --------------------------------------------------------------------------------------------
$ 41,311,078
- --------------------------------------------------------------------------------------------
INSURED-SEWER REVENUE -- 3.5%
$ 13,670 Chicago, IL, Wastewater Transmission,
(MBIA), 0.00%, 1/1/23 $ 5,356,179
19,000 King County, WA, Sewer, (FGIC),
5.00%, 1/1/31 19,645,810
13,430 Passaic Valley, NJ, Sewer Commissioners,
(FGIC), 2.50%, 12/1/32 9,095,870
- --------------------------------------------------------------------------------------------
$ 34,097,859
- --------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 7.5%
$ 10,000 Arizona Tourism and Sports Authority,
(Multipurpose Stadium Facility), (MBIA),
5.00%, 7/1/24 $ 10,493,900
5,305 Arizona Tourism and Sports Authority,
(Multipurpose Stadium Facility), (MBIA),
5.00%, 7/1/25 5,558,791
18,980 Houston, TX, Hotel Occupancy Tax, (AMBAC),
0.00%, 9/1/24 6,692,917
20,000 Metropolitan Pier and Exposition Authority,
(McCormick Place Expansion), IL, (MBIA),
0.00%, 6/15/32 4,675,200
10,500 Reno, NV, Sales and Room Tax, (AMBAC),
5.125%, 6/1/37 10,919,685
7,815 Tustin, CA, Unified School District, (FSA),
5.00%, 9/1/38 8,061,094
25,500 Utah Transportation Authority Sales Tax, (FSA),
5.00%, 6/15/32 26,445,540
- --------------------------------------------------------------------------------------------
$ 72,847,127
- --------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 38.1%
$ 15,600 California Infrastructure and Economic
Development, (Bay Area Toll Bridges), (AMBAC),
5.00%, 7/1/33 $ 16,261,752
10,000 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/24 3,555,200
17,000 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/25 5,721,350
10,200 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/21 4,352,544
20,000 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/24 7,071,000
19,810 Massachusetts Turnpike Authority, (AMBAC),
5.00%, 1/1/39 20,260,281
9,985 Massachusetts Turnpike Authority, Metropolitan
Highway System, (MBIA), 5.125%, 1/1/37 10,234,325
5,600 Metropolitan Transportation Authority, NY, (FGIC),
5.00%, 11/15/25 5,861,184
9,000 Metropolitan Transportation Authority, NY, (FGIC),
5.00%, 11/15/31 9,325,350
5,000 Metropolitan Transportation Authority, NY, (FSA),
5.00%, 11/15/30 5,211,250
23,400 Metropolitan Transportation Authority, NY, (FSA),
5.00%, 11/15/32 24,320,556
20,000 Metropolitan Transportation Authority, NY, (MBIA),
5.00%, 11/15/30 20,845,000
20,000 Nevada Department of Business and Industry,
(Las Vegas Monorail -1st Tier), (AMBAC),
5.375%, 1/1/40 21,228,000
</Table>
See notes to financial statements
8
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION (CONTINUED)
$ 10,070 Nevada Department of Business and Industry,
(Las Vegas Monorail), (AMBAC), 0.00%, 1/1/23 $ 3,881,280
3,100 Nevada Department of Business and Industry,
(Las Vegas Monorail), (AMBAC), 0.00%, 1/1/28 888,801
25,415 Northwest Parkway Public Highway Authority, CO,
(FSA), 5.25%, 6/15/41 26,866,451
10,000 Port Authority of New York and New Jersey,
(XLCA), 4.50%, 9/15/35 9,711,300
75,000 San Joaquin Hills, CA, Transportation Corridor
Agency, (MBIA), 0.00%, 1/15/31 18,350,250
45,020 San Joaquin Hills, CA, Transportation Corridor
Agency, (MBIA), 0.00%, 1/15/26 14,539,659
119,000 San Joaquin Hills, CA, Transportation Corridor
Agency, (MBIA), 0.00%, 1/15/34 24,797,220
87,045 San Joaquin Hills, CA, Transportation Corridor
Agency, (Toll Road Bonds), (MBIA),
0.00%, 1/15/25 29,910,403
23,000 Texas Turnpike Authority, (AMBAC),
0.00%, 8/15/27 6,971,530
40,165 Texas Turnpike Authority, (AMBAC),
0.00%, 8/15/20 18,181,892
59,900 Texas Turnpike Authority, (AMBAC),
5.00%, 8/15/42 61,483,157
- --------------------------------------------------------------------------------------------
$ 369,829,735
- --------------------------------------------------------------------------------------------
INSURED-UTILITIES -- 7.1%
$ 5,000 Illinois Development Finance Authority, (Peoples
Gas, Light and Coke), (AMBAC), 5.00%, 2/1/33 $ 5,160,000
62,000 Los Angeles, CA, Department of Water and
Power, (FGIC), 5.00%, 7/1/43 63,647,960
- --------------------------------------------------------------------------------------------
$ 68,807,960
- --------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 13.8%
$ 5,300 Arkansas Community Water System, Public
Water Authority, (MBIA), 5.00%, 10/1/42 $ 5,472,250
25,885 Atlanta, GA, Water and Wastewater, (MBIA),
5.00%, 11/1/39(1) 26,740,499
33,825 Birmingham, AL, Waterworks and Sewer Board,
(MBIA), 5.00%, 1/1/37 34,973,021
26,000 East Bay, CA, Municipal Utility District Water
System, (MBIA), 5.00%, 6/1/38 26,712,920
5,000 Marco Island, FL, Utility System, (MBIA),
4.75%, 10/1/29 5,066,800
10,000 New York City, NY, Municipal Water Finance
Authority, (Water and Sewer System), (MBIA),
5.125%, 6/15/34 10,494,900
10,000 Palm Coast, FL, Utility System, (MBIA),
5.00%, 10/1/33 10,442,000
$15,250 Pittsburgh, PA, Water and Sewer Authority, (FGIC),
0.00%, 9/1/26 $ 4,888,693
8,500 San Antonio, TX, Water System, (FSA),
5.00%, 5/15/28 8,802,430
- --------------------------------------------------------------------------------------------
$ 133,593,513
- --------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 4.2%
$ 10,180 Albany, OR, Water, (FGIC), 5.00%, 8/1/33 $ 10,607,153
10,000 Baltimore, MD, (Water Projects), (FGIC),
5.125%, 7/1/42 10,466,800
8,000 Chicago, IL, Water Revenue, (AMBAC),
5.00%, 11/1/26 8,277,680
5,000 Metropolitan Water District, CA, (FGIC),
5.00%, 10/1/33 5,217,100
5,000 Metropolitan Water District, CA, (FGIC),
5.00%, 10/1/36 5,213,150
1,000 Metropolitan Water District, CA, (MBIA),
5.00%, 7/1/37 1,025,780
- --------------------------------------------------------------------------------------------
$ 40,807,663
- --------------------------------------------------------------------------------------------
LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 0.9%
$ 8,850 New Jersey EDA, (School Facilities),
5.00%, 6/15/26 $ 9,244,445
- --------------------------------------------------------------------------------------------
$ 9,244,445
- --------------------------------------------------------------------------------------------
OTHER REVENUE -- 6.1%
$ 10,000 Capital Trust Agency, FL, (Seminole Tribe
Convention), 8.95%, 10/1/33 $ 11,761,800
2,170 Capital Trust Agency, FL, (Seminole Tribe
Convention), 10.00%, 10/1/33 2,696,616
32,500 Golden Tobacco Securitization Corp., CA,
5.375%, 6/1/28 32,922,500
11,750 Tobacco Settlement Financing Corp., NJ,
6.75%, 6/1/39 11,631,560
- --------------------------------------------------------------------------------------------
$ 59,012,476
- --------------------------------------------------------------------------------------------
TRANSPORTATION -- 6.7%
$ 28,500 Port Authority of New York and New Jersey,
5.00%, 9/1/38 $ 29,489,805
24,090 Triborough Bridge and Tunnel Authority, NY,
5.00%, 1/1/32 24,861,121
10,000 Triborough Bridge and Tunnel Authority, NY,
5.25%, 11/15/30 10,648,300
- --------------------------------------------------------------------------------------------
$ 64,999,226
- --------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
9
<Page>
<Table>
<Caption>
VALUE
- --------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 159.8%
(IDENTIFIED COST $1,486,093,964) $ 1,550,448,916
- --------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.3% $ 12,597,608
- --------------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (61.1)% $ (592,892,048)
- --------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHARES -- 100.0% $ 970,154,476
- --------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
CIFG - CDC IXIS Financial Guaranty North America, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by municipalities. The
ability of the issuers of the debt securities to meet their obligations may be
affected by economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic developments, at March
31, 2004, 84.5% 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 an individual financial
institution ranged from 0.4% to 24.7% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
10
<Page>
INSURED CALIFORNIA MUNICIPAL BOND FUND as of March 31, 2004
PORTFOLIO OF INVESTMENTS (Unaudited)
TAX-EXEMPT INVESTMENTS -- 159.6%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 1.0%
$ 3,000 Puerto Rico Electric Power Authority,
5.125%, 7/1/29 $ 3,134,610
- --------------------------------------------------------------------------------------------
$ 3,134,610
- --------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 6.3%
$ 5,110 Foothill/Eastern, Transportation Corridor Agency,
Escrowed to Maturity, 0.00%, 1/1/30 $ 1,374,488
18,790 Foothill/Eastern, Transportation Corridor Agency,
Escrowed to Maturity, 0.00%, 1/1/21 8,441,032
9,175 San Joaquin Hills, Transportation Corridor Agency,
Escrowed to Maturity, 0.00%, 1/1/22 3,875,245
18,100 San Joaquin Hills, Transportation Corridor Agency,
Toll Road Bonds, Escrowed to Maturity,
0.00%, 1/1/25 6,411,020
- --------------------------------------------------------------------------------------------
$ 20,101,785
- --------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 6.5%
$ 3,250 California, 5.00%, 2/1/33 $ 3,253,380
6,750 California, 5.25%, 4/1/30 6,898,095
9,975 California, 5.50%, 11/1/33 10,455,097
- --------------------------------------------------------------------------------------------
$ 20,606,572
- --------------------------------------------------------------------------------------------
HOSPITAL -- 1.0%
$ 3,005 Washington Township Health Care District,
5.25%, 7/1/29 $ 3,098,816
- --------------------------------------------------------------------------------------------
$ 3,098,816
- --------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 2.9%
$ 4,000 Sacramento, Municipal Electric Utility District,
(FSA), 5.00%, 8/15/28 $ 4,142,280
5,000 Sacramento, Municipal Electric Utility District,
(MBIA), 5.00%, 8/15/28 5,178,900
- --------------------------------------------------------------------------------------------
$ 9,321,180
- --------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 1.1%
$ 7,540 Foothill/Eastern, Transportation Corridor Agency,
(FSA), Escrowed to Maturity, 0.00%, 1/1/21 $ 3,387,194
- --------------------------------------------------------------------------------------------
$ 3,387,194
- --------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 32.8%
$ 2,840 Azusa Unified School District, (FSA),
0.00%, 7/1/25 $ 953,019
2,160 Azusa Unified School District, (FSA),
0.00%, 7/1/26 681,113
3,290 Azusa Unified School District, (FSA),
0.00%, 7/1/27 980,552
6,030 Burbank Unified School District, (FGIC),
0.00%, 8/1/21 2,585,785
1,835 Buttonwillow Union School District, (Election of
2002), (AMBAC), 5.50%, 11/1/27 2,122,801
2,180 Ceres Unified School District, (FGIC),
0.00%, 8/1/25 728,425
3,000 Chino Valley Unified School District, (FSA),
5.00%, 8/1/26 3,137,550
2,900 Folsom Cordova Unified School District, (MBIA),
0.00%, 10/1/22 1,157,854
1,465 Folsom Cordova Unified School District, (MBIA),
0.00%, 10/1/23 549,243
3,100 Folsom Cordova Unified School District, (MBIA),
0.00%, 10/1/23 1,162,221
1,505 Folsom Cordova Unified School District, (MBIA),
0.00%, 10/1/25 498,591
6,555 Foothill-De Anza Community College District,
(Election of 1999), (FGIC), 0.00%, 8/1/28 1,842,086
8,500 Foothill-De Anza Community College District,
(Election of 1999), (FGIC), 0.00%, 8/1/29 2,256,155
8,865 Foothill-De Anza Community College District,
(Election of 1999), (FGIC), 0.00%, 8/1/30 2,227,243
1,835 Huntington Beach City School District, (FGIC),
0.00%, 8/1/24 651,902
2,060 Huntington Beach City School District, (FGIC),
0.00%, 8/1/25 688,328
2,140 Huntington Beach City School District, (FGIC),
0.00%, 8/1/26 671,896
2,000 Jurupa Unified School District, (FGIC),
0.00%, 8/1/23 756,120
2,875 Jurupa Unified School District, (FGIC),
0.00%, 8/1/24 1,021,372
3,825 Jurupa Unified School District, (FGIC),
0.00%, 8/1/25 1,278,086
2,000 Jurupa Unified School District, (FGIC),
0.00%, 8/1/26 627,940
2,235 Kings Canyon Joint Unified School District, (FGIC),
0.00%, 8/1/25 746,803
10,000 Los Angeles Unified School District, (Election of
1997), (MBIA), 5.125%, 1/1/27 10,492,800
3,225 Modesto High School District, Stanislaus County,
(FGIC), 0.00%, 8/1/24 1,145,714
</Table>
See notes to financial statements
11
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS (CONTINUED)
$ 3,580 Modesto High School District, Stanislaus County,
(FGIC), 0.00%, 8/1/25 $ 1,196,221
9,000 North Orange County Community College District,
(MBIA), 5.00%, 2/1/27 9,398,610
5,000 Riverside Unified School District, (FGIC),
5.00%, 2/1/27 5,211,750
6,135 Salinas Union High School District, (MBIA),
5.00%, 6/1/27 6,402,793
13,500 San Diego Unified School District, (Election of
1998), (FSA), 5.00%, 7/1/26 14,114,385
1,500 San Diego Unified School District, (FGIC),
0.00%, 7/1/20 685,770
10,000 San Diego Unified School District, (FGIC),
0.00%, 7/1/22 4,042,500
10,000 San Diego Unified School District, (FGIC),
0.00%, 7/1/23 3,796,500
8,000 San Juan Unified School District, (FSA),
0.00%, 8/1/21 3,430,560
3,735 San Mateo County Community College District,
(FGIC), 0.00%, 9/1/20 1,693,897
5,000 San Mateo County Community College District,
(FGIC), 0.00%, 9/1/22 2,004,600
4,365 San Mateo County Community College District,
(FGIC), 0.00%, 9/1/23 1,643,335
3,955 San Mateo County Community College District,
(FGIC), 0.00%, 9/1/25 1,315,868
5,240 San Mateo Union High School District, (FGIC),
0.00%, 9/1/21 2,237,899
2,740 Santa Ana Unified School District, (MBIA),
5.00%, 8/1/32 2,847,490
3,825 Union Elementary School District, (FGIC),
0.00%, 9/1/24 1,353,132
3,000 Ventura County Community College District,
(MBIA), 5.00%, 8/1/27 3,132,870
1,985 Victor Elementary School District, (FGIC),
0.00%, 8/1/25 663,268
- --------------------------------------------------------------------------------------------
$ 104,135,047
- --------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 6.7%
$ 20,860 California Health Facilities Financing Authority,
(Sutter Health), (MBIA), 5.00%, 8/15/38 $ 21,408,409
- --------------------------------------------------------------------------------------------
$ 21,408,409
- --------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 19.9%
$ 2,000 Anaheim, Public Financing Authority Lease
Revenue, (FSA), 0.00%, 9/1/30 $ 496,440
$ 5,000 Anaheim, Public Financing Authority Lease
Revenue, (FSA), 0.00%, 9/1/35 $ 944,650
8,545 Anaheim, Public Financing Authority Lease
Revenue, (FSA), 0.00%, 9/1/29 2,241,524
30,000 Anaheim, Public Financing Authority Lease
Revenue, (FSA), 5.00%, 3/1/37 30,696,900
1,000 California Public Works Board Lease Revenue,
(Department of General Services), (AMBAC),
5.00%, 12/1/27 1,037,310
6,000 Sacramento Financing Authority, (City Hall
Redevelopment), (FSA), 5.00%, 12/1/28 6,219,480
15,000 San Jose Financing Authority, (Civic Center),
(AMBAC), 5.00%, 6/1/37 15,485,250
5,850 Shasta Joint Powers Financing Authority, (County
Administration Building), (MBIA), 5.00%, 4/1/29 6,066,684
- --------------------------------------------------------------------------------------------
$ 63,188,238
- --------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 0.5%
$ 1,560 California Educational Facilities Authority,
(St. Mary's College of California), (MBIA),
5.125%, 10/1/26 $ 1,650,152
- --------------------------------------------------------------------------------------------
$ 1,650,152
- --------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 12.5%
$ 1,000 California University, (AMBAC),
5.125%, 11/1/26 $ 1,051,690
22,500 University of California, (FGIC),
5.00%, 9/1/27 22,984,650
15,000 University of California, (FGIC),
5.125%, 9/1/30 15,618,600
- --------------------------------------------------------------------------------------------
$ 39,654,940
- --------------------------------------------------------------------------------------------
INSURED-SEWER REVENUE -- 13.5%
$ 23,115 East Bay Municipal Utility District Water System,
(MBIA), 5.00%, 6/1/38 $ 23,723,618
18,350 Livermore-Amador Valley Water Management
Agency, (AMBAC), 5.00%, 8/1/31 19,003,627
- --------------------------------------------------------------------------------------------
$ 42,727,245
- --------------------------------------------------------------------------------------------
INSURED-SPECIAL ASSESSMENT REVENUE -- 1.9%
$ 1,800 Murrieta Redevelopment Agency Tax, (MBIA),
5.00%, 8/1/32 $ 1,874,970
4,045 Santa Clara Valley Transportation Authority,
(MBIA), 5.00%, 6/1/26 4,178,728
- --------------------------------------------------------------------------------------------
$ 6,053,698
- --------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
12
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 14.1%
$ 2,500 North City, School Facility Financing Authority,
(AMBAC), 0.00%, 9/1/26 $ 776,425
7,000 Pomona Public Financing Authority, (MBIA),
5.00%, 2/1/33 7,205,590
3,500 San Francisco, Bay Area Rapid Transportation
District, (AMBAC), 5.00%, 7/1/26 3,616,830
7,000 San Francisco, Bay Area Rapid Transportation
District, (AMBAC), 5.125%, 7/1/36 7,265,440
13,000 Tustin Unified School District, (FSA),
5.00%, 9/1/32 13,458,120
12,000 Tustin Unified School District, (FSA),
5.00%, 9/1/38 12,377,880
- --------------------------------------------------------------------------------------------
$ 44,700,285
- --------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 14.4%
$ 15,150 California Infrastructure and Economic
Development, (Bay Area Toll Bridges), (AMBAC),
5.00%, 7/1/33 $ 15,792,663
7,250 California Infrastructure and Economic
Development, (Bay Area Toll Bridges), (AMBAC),
5.00%, 7/1/36 7,551,963
1,000 California Infrastructure and Economic
Development, (Bay Area Toll Bridges), (FGIC),
5.00%, 7/1/29 1,042,420
13,940 Sacramento County, Airport System, (FSA),
5.00%, 7/1/27 14,439,331
3,445 San Joaquin Hills, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/30 890,601
5,000 San Joaquin Hills, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/31 1,223,350
15,000 San Joaquin Hills, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/26 4,844,400
- --------------------------------------------------------------------------------------------
$ 45,784,728
- --------------------------------------------------------------------------------------------
INSURED-UTILITIES -- 4.8%
$ 14,750 Los Angeles Department of Water and Power,
(MBIA), 5.125%, 7/1/41 $ 15,252,975
- --------------------------------------------------------------------------------------------
$ 15,252,975
- --------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 12.9%
$ 8,180 California Water Resource, (Central Valley),
(FGIC), 5.00%, 12/1/29(1) $ 8,509,081
5,500 Contra Costa Water District, (FSA),
4.50%, 10/1/31 5,376,855
7,620 East Bay Municipal Utility District Water System,
(MBIA), 5.00%, 6/1/38 7,828,940
$ 2,000 East Bay Municipal Utility District Water System,
(MBIA), 5.00%, 6/1/26 $ 2,073,580
3,350 Long Beach Water Revenue, (MBIA),
5.00%, 5/1/24 3,505,072
10,000 Metropolitan Water District, (FGIC),
5.00%, 10/1/36 10,426,300
3,250 San Diego, (Water Utility Fund), (FGIC),
4.75%, 8/1/28 3,265,600
- --------------------------------------------------------------------------------------------
$ 40,985,428
- --------------------------------------------------------------------------------------------
WATER REVENUE -- 6.8%
$ 21,180 Southern California Metropolitan Water District,
5.00%, 7/1/37 $ 21,715,219
- --------------------------------------------------------------------------------------------
$ 21,715,219
- --------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 159.6%
(IDENTIFIED COST $490,095,152) $ 506,906,521
- --------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.8% $ 5,668,411
- --------------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (61.4)% $ (195,016,478)
- --------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHARES -- 100.0% $ 317,558,454
- --------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
The Fund invests primarily in debt securities issued by California
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 31, 2004, 86.4% 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 an
individual financial institution ranged from 14.5% to 28.1% of total
investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
13
<Page>
INSURED NEW YORK MUNICIPAL BOND FUND as of March 31, 2004
PORTFOLIO OF INVESTMENTS (Unaudited)
TAX-EXEMPT INVESTMENTS -- 159.9%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 1.3%
$ 2,000 Long Island Power Authority Electric System
Revenue, 5.00%, 9/1/27 $ 2,042,400
1,000 New York Power Authority, 5.25%, 11/15/40 1,047,620
- --------------------------------------------------------------------------------------------
$ 3,090,020
- --------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 4.2%
$ 3,000 New York, 5.25%, 1/15/28 $ 3,146,100
3,075 New York City, 5.25%, 6/1/27 3,218,756
3,000 New York City, 5.25%, 1/15/33 3,147,210
- --------------------------------------------------------------------------------------------
$ 9,512,066
- --------------------------------------------------------------------------------------------
HOSPITAL -- 7.0%
$ 1,430 New York Dormitory Authority Revenue, (Lenox
Hill Hospital), 5.50%, 7/1/30 $ 1,492,963
4,000 New York Dormitory Authority, (Memorial
Sloan-Kettering Cancer Center), 5.00%, 7/1/34 4,131,640
10,000 New York Dormitory Authority, (North General
Hospital), 5.00%, 2/15/25 10,328,700
- --------------------------------------------------------------------------------------------
$ 15,953,303
- --------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 3.3%
$ 5,000 Long Island Power Authority Electric System
Revenue, (FSA), 0.00%, 6/1/22 $ 2,163,450
3,000 Long Island Power Authority, (FSA), 0.00%, 6/1/20 1,455,330
6,250 Long Island Power Authority, (FSA), 0.00%, 6/1/26 2,162,812
1,000 Long Island Power Authority, (FSA), 0.00%, 6/1/27 329,130
4,785 Long Island Power Authority, (FSA), 0.00%, 6/1/28 1,498,279
- --------------------------------------------------------------------------------------------
$ 7,609,001
- --------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 3.4%
$ 1,505 Sachem Central School District, (MBIA),
5.00%, 6/15/27 $ 1,587,218
3,700 Sachem Central School District, Holbrook,
(MBIA), 5.00%, 10/15/26 3,896,396
2,085 Sachem Central School District, Holbrook,
(MBIA), 5.00%, 10/15/28 2,191,356
- --------------------------------------------------------------------------------------------
$ 7,674,970
- --------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 22.2%
$ 16,500 New York City Health and Hospital Corp.,
(Health Systems), (AMBAC), 5.00%, 2/15/23 $ 17,325,000
$ 10,600 New York Dormitory Authority, (Hospital Surgery),
(AMBAC), 5.00%, 2/1/38 $ 10,882,278
4,000 New York Dormitory Authority, (Memorial
Sloan-Kettering Cancer Center), (MBIA),
0.00%, 7/1/26 1,378,680
23,835 New York Dormitory Authority, (Memorial
Sloan-Kettering Cancer Center), (MBIA),
0.00%, 7/1/28 7,429,846
26,070 New York Dormitory Authority, (Memorial
Sloan-Kettering Cancer Center), (MBIA),
0.00%, 7/1/29 7,726,105
6,000 New York Dormitory Authority, (New York
Presbyterian Hospital), (AMBAC),
5.00%, 8/1/32 6,115,020
- --------------------------------------------------------------------------------------------
$ 50,856,929
- --------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 7.0%
$ 3,150 New York Urban Development Corp., (Personal
Income Tax), (FGIC), 5.00%, 3/15/33 $ 3,282,647
12,000 New York Urban Development Corp., (Personal
Income Tax), (MBIA), 5.125%, 3/15/27 12,623,640
- --------------------------------------------------------------------------------------------
$ 15,906,287
- --------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 31.5%
$ 16,500 New York City Industrial Development Agency,
(New York University), (AMBAC),
5.00%, 7/1/41 $ 16,999,290
2,500 New York Dormitory Authority, (Barnard College),
(AMBAC), 4.75%, 7/1/35 2,527,550
11,500 New York Dormitory Authority, (Brooklyn Law
School), (XLCA), 5.125%, 7/1/30 12,078,105
2,500 New York Dormitory Authority, (Fordham
University), (MBIA), 5.00%, 7/1/28 2,579,650
1,000 New York Dormitory Authority, (Iona College),
(XLCA), 5.125%, 7/1/32 1,048,580
7,500 New York Dormitory Authority, (New York Medical
College), (MBIA), 5.00%, 7/1/21 7,851,000
4,250 New York Dormitory Authority, (New York
University), (AMBAC), 5.00%, 7/1/31 4,402,533
4,500 New York Dormitory Authority, (New York
University), (AMBAC), 5.00%, 7/1/41 4,636,170
3,000 New York Dormitory Authority, (New York
University), (AMBAC), 5.50%, 7/1/40 3,536,010
13,585 New York Dormitory Authority, (Rochester Institute
of Technology), (AMBAC), 5.25%, 7/1/32 14,448,191
</Table>
See notes to financial statements
14
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION (CONTINUED)
$ 1,820 New York Dormitory Authority, (Rockefeller
University), (MBIA), 4.75%, 7/1/37 $ 1,837,217
- --------------------------------------------------------------------------------------------
$ 71,944,296
- --------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 5.2%
$ 1,750 New York Dormitory Authority, (School Districts
Financing Program), (MBIA), 5.00%, 10/1/30 $ 1,823,168
10,000 New York Dormitory Authority, (University
Educational Facility), (MBIA), 4.75%, 5/15/25 10,083,300
- --------------------------------------------------------------------------------------------
$ 11,906,468
- --------------------------------------------------------------------------------------------
INSURED-SOLID WASTE -- 2.4%
$ 1,710 Ulster County Resource Recovery Agency, Solid
Waste System, (AMBAC), 0.00%, 3/1/19 $ 883,677
1,645 Ulster County Resource Recovery Agency, Solid
Waste System, (AMBAC), 0.00%, 3/1/20 800,720
1,790 Ulster County Resource Recovery Agency, Solid
Waste System, (AMBAC), 0.00%, 3/1/21 823,185
1,240 Ulster County Resource Recovery Agency, Solid
Waste System, (AMBAC), 0.00%, 3/1/22 538,024
1,090 Ulster County Resource Recovery Agency, Solid
Waste System, (AMBAC), 0.00%, 3/1/23 446,431
1,490 Ulster County Resource Recovery Agency, Solid
Waste System, (AMBAC), 0.00%, 3/1/24 575,378
3,735 Ulster County Resource Recovery Agency, Solid
Waste System, (AMBAC), 0.00%, 3/1/25 1,363,835
- --------------------------------------------------------------------------------------------
$ 5,431,250
- --------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 6.1%
$ 4,750 New York City Transitional Finance Authority,
(Future Tax), (AMBAC), 5.00%, 5/1/30 $ 4,950,023
8,750 New York City Transitional Finance Authority,
(Future Tax), (MBIA), 5.00%, 5/1/31 9,112,075
- --------------------------------------------------------------------------------------------
$ 14,062,098
- --------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 45.8%
$ 2,000 Metropolitan Transportation Authority, (FGIC),
5.00%, 11/15/31 $ 2,072,300
37,750 Metropolitan Transportation Authority, (FSA),
5.00%, 11/15/30 39,344,938
15,560 Metropolitan Transportation Authority, (FSA),
5.00%, 11/15/32(1) 16,172,130
5,000 New York Thruway Authority, (FGIC),
5.00%, 1/1/25 5,140,250
5,775 Port Authority of New York and New Jersey,
(MBIA), 5.125%, 10/15/30 5,963,092
$ 10,000 Triborough Bridge and Tunnel Authority, (FGIC),
5.00%, 1/1/32 $ 10,373,100
24,600 Triborough Bridge and Tunnel Authority, (MBIA),
5.00%, 11/15/32 25,603,680
- --------------------------------------------------------------------------------------------
$ 104,669,490
- --------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 8.8%
$ 2,765 Albany Municipal Water Finance Authority, (MBIA),
5.00%, 12/1/33 $ 2,824,724
1,000 Buffalo Municipal Water Finance Authority, (FSA),
5.125%, 7/1/32 1,049,990
11,000 New York City Municipal Water Finance Authority,
Water and Sewer, (MBIA), 5.125%, 6/15/34 11,544,390
4,500 Niagara Falls Public Water Authority and Sewer
System, (MBIA), 5.00%, 7/15/34 4,693,275
- --------------------------------------------------------------------------------------------
$ 20,112,379
- --------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 0.5%
$ 1,200 Upper Mohawk Valley Regional Water Finance
Authority, (FGIC), 4.75%, 4/1/33 $ 1,216,236
- --------------------------------------------------------------------------------------------
$ 1,216,236
- --------------------------------------------------------------------------------------------
PRIVATE EDUCATION -- 2.6%
$ 1,000 Dutchess County Industrial Development Agency,
(Marist College), 5.00%, 7/1/22 $ 1,027,130
1,630 Madison County Industrial Development Agency,
(Colgate University), 5.00%, 7/1/33 1,690,375
3,065 Rensselaer County Industrial Development Agency,
(Rensselaer Polytech Institute), 5.125%, 8/1/27 3,154,774
- --------------------------------------------------------------------------------------------
$ 5,872,279
- --------------------------------------------------------------------------------------------
TRANSPORTATION -- 8.6%
$ 4,500 Metropolitan Transportation Authority,
5.125%, 1/1/29 $ 4,687,020
14,500 Port Authority of New York and New Jersey,
5.00%, 9/1/38 15,003,585
- --------------------------------------------------------------------------------------------
$ 19,690,605
- --------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
15
<Page>
<Table>
<Caption>
VALUE
- --------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 159.9%
(IDENTIFIED COST $349,713,275) $ 365,507,677
- --------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 2.5% $ 5,599,899
- --------------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (62.4)% $ (142,563,526)
- --------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHARES -- 100.0% $ 228,544,050
- --------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by New York municipalities.
The ability of the issuers of the debt securities to meet their obligations may
be affected by economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic developments, at March
31, 2004, 85.2% 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 an individual financial
institution ranged from 3.6% to 33.0% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
16
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS
FINANCIAL STATEMENTS (Unaudited)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 2004
<Table>
<Caption>
INSURED MUNICIPAL FUND INSURED CALIFORNIA FUND INSURED NEW YORK FUND
- -----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments --
Identified cost $ 1,486,093,964 $ 490,095,152 $ 349,713,275
Unrealized appreciation 64,354,952 16,811,369 15,794,402
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 1,550,448,916 $ 506,906,521 $ 365,507,677
- -----------------------------------------------------------------------------------------------------------------------------
Cash 4,196,933 1,414,010 1,871,088
Receivable for investments sold 10,303,658 -- --
Interest receivable 17,591,636 4,793,582 4,387,651
Prepaid expenses 828,619 11,554 57,006
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 1,583,369,762 $ 513,125,667 $ 371,823,422
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased $ 17,699,855 $ -- $ --
Payable for daily variation margin on open financial
futures contracts 2,389,062 484,687 670,312
Accrued expenses 234,321 66,048 45,534
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 20,323,238 $ 550,735 $ 715,846
- -----------------------------------------------------------------------------------------------------------------------------
Auction preferred shares at liquidation value plus
cumulative unpaid dividends 592,892,048 195,016,478 142,563,526
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES $ 970,154,476 $ 317,558,454 $ 228,544,050
- -----------------------------------------------------------------------------------------------------------------------------
SOURCES OF NET ASSETS
Common Shares, $0.01 par value, unlimited number of
shares authorized $ 646,067 $ 216,282 $ 156,981
Additional paid-in capital 911,973,551 305,163,036 221,346,825
Accumulated net realized loss (computed on the basis
of identified cost) (4,488,612) (3,967,593) (6,948,979)
Accumulated undistributed net investment income 5,692,076 957,653 446,035
Net unrealized appreciation (computed on the basis
of identified cost) 56,331,394 15,189,076 13,543,188
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES $ 970,154,476 $ 317,558,454 $ 228,544,050
- -----------------------------------------------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING
(LIQUIDATION PREFERENCE OF $25,000 PER SHARE)
23,700 7,800 5,700
- -----------------------------------------------------------------------------------------------------------------------------
COMMON SHARES OUTSTANDING
64,606,667 21,628,202 15,698,145
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE
NET ASSETS APPLICABLE TO COMMON SHARES DIVIDED BY
COMMON SHARES ISSUED AND OUTSTANDING $ 15.02 $ 14.68 $ 14.56
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
17
<Page>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2004
<Table>
<Caption>
INSURED MUNICIPAL FUND INSURED CALIFORNIA FUND INSURED NEW YORK FUND
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 38,553,703 $ 12,446,620 $ 8,937,681
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 38,553,703 12,446,620 8,937,681
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 5,061,963 $ 1,658,640 $ 1,207,123
Trustees fees and expenses 12,057 8,923 6,841
Legal and accounting services 29,686 34,266 24,282
Printing and postage 109,376 20,285 6,009
Custodian fee 147,468 98,106 78,860
Transfer and dividend disbursing agent 41,127 35,910 35,770
Preferred shares remarketing agent fee 742,661 244,418 178,614
Miscellaneous 50,774 20,995 29,185
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 6,195,112 $ 2,121,543 $ 1,566,684
- -----------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of investment adviser fee 2,492,043 816,561 594,277
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 2,492,043 $ 816,561 $ 594,277
- -----------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 3,703,069 $ 1,304,982 $ 972,407
- -----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 34,850,634 $ 11,141,638 $ 7,965,274
- -----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost basis) 17,893,597 2,348,107 1,112,194
Financial futures contracts (25,193,124) (5,385,762) (7,474,127)
- -----------------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (7,299,527) $ (3,037,655) $ (6,361,933)
- -----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) 26,492,024 11,369,291 8,865,452
Financial futures contracts 2,043,966 2,036,043 (1,459,636)
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ 28,535,990 $ 13,405,334 $ 7,405,816
- -----------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN $ 21,236,463 $ 10,367,679 $ 1,043,883
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM
NET INVESTMENT INCOME $ (3,460,345) $ (874,294) $ (667,215)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 52,626,752 $ 20,635,023 $ 8,341,942
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
18
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 2004
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS INSURED MUNICIPAL FUND INSURED CALIFORNIA FUND INSURED NEW YORK FUND
- -----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 34,850,634 $ 11,141,638 $ 7,965,274
Net realized loss (7,299,527) (3,037,655) (6,361,933)
Net change in unrealized appreciation
(depreciation) 28,535,990 13,405,334 7,405,816
Distributions to preferred shareholders from
net investment income (3,460,345) (874,294) (667,215)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 52,626,752 $ 20,635,023 $ 8,341,942
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to common shareholders --
From net investment income (30,284,377) (9,732,692) (7,064,166)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 22,342,375 $ 10,902,331 $ 1,277,776
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES
At beginning of period $ 947,812,101 $ 306,656,123 $ 227,266,274
- -----------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 970,154,476 $ 317,558,454 $ 228,544,050
- -----------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES
AT END OF PERIOD $ 5,692,076 $ 957,653 $ 446,035
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
19
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS INSURED MUNICIPAL FUND INSURED CALIFORNIA FUND INSURED NEW YORK FUND
- -----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 67,196,099 $ 21,454,620 $ 15,371,205
Net realized gain (loss) 2,343,382 (1,436,089) (614,965)
Net change in unrealized appreciation
(depreciation) (1,020,901) (7,178,731) 682,190
Distributions to preferred shareholders from
net investment income (5,871,438) (1,685,296) (1,403,053)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 62,647,142 $ 11,154,504 $ 14,035,377
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to common shareholders --
From net investment income (58,630,555) (19,464,591) (14,118,015)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (58,630,555) $ (19,464,591) $ (14,118,015)
- -----------------------------------------------------------------------------------------------------------------------------
Capital share transactions --
Proceeds from sale of common shares 21,487,500 7,377,375 6,159,750
Reinvestment of distributions to common
shareholders -- 89,787 502,907
Offering costs and preferred shares underwriting
discounts (12,311,002) (4,134,934) (3,053,056)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CAPITAL TRANSACTIONS $ 9,176,498 $ 3,332,228 $ 3,609,601
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 13,193,085 $ (4,977,859) $ 3,526,963
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES
At beginning of year $ 934,619,016 $ 311,633,982 $ 223,739,311
- -----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 947,812,101 $ 306,656,123 $ 227,266,274
- -----------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS APPLICABLE TO COMMON SHARES
AT END OF YEAR $ 4,586,164 $ 423,001 $ 212,142
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Proceeds from sale of shares net of sales load paid of $1,012,500, $347,625
and $290,250 for Insured Municipal Fund, Insured California Fund and
Insured New York Fund, respectively.
See notes to financial statements
20
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS as of March 31, 2004
FINANCIAL STATEMENTS
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
<Table>
<Caption>
INSURED MUNICIPAL FUND
------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 -----------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2)
- ---------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares) $ 14.670 $ 14.810 $ 14.325(3)
- ---------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.539 $ 1.041 $ 0.040
Net realized and unrealized gain 0.334 0.009 0.454
Distributions to preferred shareholders from net
investment income (0.054) (0.091) --
- ---------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.819 $ 0.959 $ 0.494
- ---------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.469) $ (0.908) $ --
- ---------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.469) $ (0.908) $ --
- ---------------------------------------------------------------------------------------------------------
PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO
PAID-IN CAPITAL $ -- $ (0.007) $ (0.009)
- ---------------------------------------------------------------------------------------------------------
PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ (0.184) $ --
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 15.020 $ 14.670 $ 14.810
- ---------------------------------------------------------------------------------------------------------
MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.590 $ 13.580 $ 15.000
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON NET ASSET VALUE(5) 5.82% 5.67% 3.39%(4)
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON MARKET VALUE(5) 11.04% (3.42)% 4.71%(4)
- ---------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
21
<Page>
<Table>
<Caption>
INSURED MUNICIPAL FUND
-----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 ------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2)
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+,++
Net assets applicable to common shares, end of period
(000's omitted) $ 970,154 $ 947,812 $ 934,619
Ratios (As a percentage of average net assets
applicable to common shares):
Net expenses(6) 0.77%(7) 0.75% 0.48%(7)
Net expenses after custodian fee reduction(6) 0.77%(7) 0.73% 0.46%(7)
Net investment income(6) 7.22%(7) 7.20% 3.20%(7)
Portfolio Turnover 18% 63% 0%
* The operating expenses of the Fund reflect a reduction of the investment
adviser fee. Had such action not been taken, the ratios and net investment
income per share would have been as follows:
Ratios (As a percentage of average net assets
applicable to common shares):
Expenses(6) 1.29%(7) 1.26% 0.80%(7)
Expenses after custodian fee reduction(6) 1.29%(7) 1.24% 0.78%(7)
Net investment income(6) 6.70%(7) 6.69% 2.88%(7)
Net investment income per share $ 0.500 $ 0.967 $ 0.036
- --------------------------------------------------------------------------------------------------------------
++ The ratios reported above are based on net assets applicable solely to common
shares. The ratios based on net assets, including amounts related to preferred
shares, are as follows
Ratios (As a percentage of average total net assets):
Net expenses 0.48%(7) 0.47%
Net expenses after custodian fee reduction 0.48%(7) 0.46%
Net investment income 4.47%(7) 4.54%
+ The operating expenses of the Fund reflect a reduction of the investment
advisor fee. Had such action not been taken, the ratios would have been as
follows:
Ratios (As a percentage of average total net assets):
Expenses 0.80%(7) 0.79%
Expenses after custodian fee reduction 0.80%(7) 0.78%
Net investment income 4.15%(7) 4.22%
- --------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 23,700 23,700
Asset coverage per preferred share(8) $ 65,951 $ 65,008
Involuntary liquidation preference per preferred
share(9) $ 25,000 $ 25,000
Approximate market value per preferred share(9) $ 25,000 $ 25,000
- --------------------------------------------------------------------------------------------------------------
</Table>
(1) Computed using average common shares outstanding.
(2) For the period from the start of business, August 30, 2002, to September
30, 2002.
(3) Net asset value at beginning of period reflects the deduction of the sales
load of $0.675 per share paid by the shareholder from the $15.000 offering
price.
(4) Total investment return on net asset value is calculated assuming a
purchase at the offering price of $15.000 less the sales load of $0.675 per
share paid by the shareholder on the first day and a sale at the net asset
value on the last day of the period reported. Total investment return on
market value is calculated assuming a purchase at the offering price of
$15.000 less the sales load of $0.675 per share paid by the shareholder on
the first day and a sale at the current market price on the last day of the
period reported. Total investment return on net asset value and total
investment return on market value are not computed on an annualized basis.
(5) Returns are historical and are calculated by determining the percentage
change in net asset value or market value with all distributions
reinvested. Total return is not computed on an annualized basis.
(6) Ratios do not reflect the effect of dividend payments to preferred
shareholders. Ratios to average net assets applicable to common shares
reflect the Fund's leveraged capital structure.
(7) Annualized.
(8) Calculated by subtracting the Fund's total liabilities (not including the
preferred shares) from the Fund's total assets, and dividing this by the
number of preferred shares outstanding.
(9) Plus accumulated and unpaid dividends.
See notes to financial statements
22
<Page>
<Table>
<Caption>
INSURED CALIFORNIA FUND
------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 -----------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2)
- ---------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares) $ 14.180 $ 14.760 $ 14.325(3)
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.515 $ 0.993 $ 0.031
Net realized and unrealized gain (loss) 0.475 (0.402) 0.420
Distributions to preferred shareholders from net
investment income (0.040) (0.078) --
- ---------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.950 $ 0.513 $ 0.451
- ---------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.450) $ (0.901) $ --
- ---------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.450) $ (0.901) $ --
- ---------------------------------------------------------------------------------------------------------
PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO
PAID-IN CAPITAL $ -- $ (0.011) $ (0.016)
- ---------------------------------------------------------------------------------------------------------
PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ (0.181) $ --
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.680 $ 14.180 $ 14.760
- ---------------------------------------------------------------------------------------------------------
MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.470 $ 13.410 $ 15.000
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON NET ASSET VALUE(5) 6.90% 2.58% 3.04%(4)
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON MARKET VALUE(5) 11.42% (4.54)% 4.71%(4)
- ---------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
23
<Page>
<Table>
<Caption>
INSURED CALIFORNIA FUND
-----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 ------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2)
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+,++
Net assets applicable to common shares, end of period
(000's omitted) $ 317,558 $ 306,656 $ 311,634
Ratios (As a percentage of average net assets
applicable to common shares):
Net expenses(6) 0.83%(7) 0.80% 0.61%(7)
Net expenses after custodian fee reduction(6) 0.83%(7) 0.77% 0.59%(7)
Net investment income(6) 7.06%(7) 7.02% 2.54%(7)
Portfolio Turnover 14% 38% 0%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee. Had such action not been taken, the ratios and net investment
income per share would have been as follows:
Ratios (As a percentage of average net assets
applicable to common shares):
Expenses(6) 1.35%(7) 1.31% 0.93%(7)
Expenses after custodian fee reduction(6) 1.35%(7) 1.28% 0.91%(7)
Net investment income(6) 6.54%(7) 6.51% 2.22%(7)
Net investment income per share $ 0.477 $ 0.921 $ 0.027
- --------------------------------------------------------------------------------------------------------------
++ The ratios reported above are based on net assets applicable solely to common
shares. The ratios based on net assets, including amounts related to preferred
shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses 0.51%(7) 0.50%
Net expenses after custodian fee reduction 0.51%(7) 0.48%
Net investment income 4.36%(7) 4.42%
* The operating expenses of the Fund reflect a reduction of the investment
advisor fee. Had such action not been taken, the ratios would have been as
follows:
Ratios (As a percentage of average total net assets):
Expenses 0.83%(7) 0.82%
Expenses after custodian fee reduction 0.83%(7) 0.80%
Net investment income 4.04%(7) 4.10%
- --------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 7,800 7,800
Asset coverage per preferred share(8) $ 65,715 $ 64,316
Involuntary liquidation preference per preferred
share(9) $ 25,000 $ 25,000
Approximate market value per preferred share(9) $ 25,000 $ 25,000
- --------------------------------------------------------------------------------------------------------------
</Table>
(1) Computed using average common shares outstanding.
(2) For the period from the start of business, August 30, 2002, to September
30, 2002.
(3) Net asset value at beginning of period reflects the deduction of the sales
load of $0.675 per share paid by the shareholder from the $15.000 offering
price.
(4) Total investment return on net asset value is calculated assuming a
purchase at the offering price of $15.000 less the sales load of $0.675 per
share paid by the shareholder on the first day and a sale at the net asset
value on the last day of the period reported. Total investment return on
market value is calculated assuming a purchase at the offering price of
$15.000 less the sales load of $0.675 per share paid by the shareholder on
the first day and a sale at the current market price on the last day of the
period reported. Total investment return on net asset value and total
investment return on market value are not computed on an annualized basis.
(5) Returns are historical and are calculated by determining the percentage
change in net asset value or market value with all distributions
reinvested. Total return is not computed on an annualized basis.
(6) Ratios do not reflect the effect of dividend payments to preferred
shareholders. Ratios to average net assets applicable to common shares
reflect the Fund's leveraged capital structure.
(7) Annualized.
(8) Calculated by subtracting the Fund's total liabilities (not including the
preferred shares) from the Fund's total assets, and dividing this by the
number of preferred shares outstanding.
(9) Plus accumulated and unpaid dividends.
See notes to financial statements
24
<Page>
<Table>
<Caption>
INSURED NEW YORK FUND
------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 -----------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2)
- ---------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period (Common shares) $ 14.480 $ 14.690 $ 14.325(3)
- ---------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 0.507 $ 0.981 $ 0.028
Net realized and unrealized gain (loss) 0.066 (0.006)* 0.358
Distributions to preferred shareholders from net
investment income (0.043) (0.090) --
- ---------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.530 $ 0.885 $ 0.386
- ---------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.450) $ (0.900) $ --
- ---------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.450) $ (0.900) $ --
- ---------------------------------------------------------------------------------------------------------
PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO
PAID-IN CAPITAL $ 0.182 $ (0.013) $ (0.021)
- ---------------------------------------------------------------------------------------------------------
PREFERRED SHARES UNDERWRITING DISCOUNTS $ (0.182) $ (0.182) $ --
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.560 $ 14.480 $ 14.690
- ---------------------------------------------------------------------------------------------------------
MARKET VALUE -- END OF PERIOD (COMMON SHARES) $ 14.500 $ 13.450 $ 15.060
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON NET ASSET VALUE(5) 3.78% 5.09% 2.55%(4)
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON MARKET VALUE(5) 11.26% (4.78)% 5.13%(4)
- ---------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements
25
<Page>
<Table>
<Caption>
INSURED NEW YORK FUND
-----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2004 ------------------------------
(UNAUDITED)(1) 2003(1) 2002(1)(2)
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+,++
Net assets applicable to common shares, end of period
(000's omitted) $ 228,544 $ 227,266 $ 223,739
Ratios (As a percentage of average net assets
applicable to common shares):
Net expenses(6) 0.85%(7) 0.83% 0.71%(7)
Net expenses after custodian fee reduction(6) 0.85%(7) 0.79% 0.68%(7)
Net investment income(6) 6.96%(7) 6.83% 2.26%(7)
Portfolio Turnover 14% 64% 8%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee. Had such action not been taken, the ratios and net investment
income per share would have been as follows:
Ratios (As a percentage of average net assets
applicable to common shares):
Expenses(6) 1.37%(7) 1.34% 1.03%(7)
Expenses after custodian fee reduction(6) 1.37%(7) 1.30% 1.00%(7)
Net investment income(6) 6.44%(7) 6.33% 1.94%(7)
Net investment income per share $ 0.469 $ 0.909 $ 0.024
- --------------------------------------------------------------------------------------------------------------
++ 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 0.52%(7) 0.52%
Net expenses after custodian fee reduction 0.52%(7) 0.50%
Net investment income 4.29%(7) 4.31%
* The operating expenses of the Fund reflect a reduction of the investment
adviser fee. Had such action not been taken, the ratios would have been as
follows:
Ratios (As a percentage of average total net assets):
Expenses 0.84%(7) 0.84%
Expenses after custodian fee reduction 0.84%(7) 0.82%
Net investment income 3.97%(7) 3.99%
- --------------------------------------------------------------------------------------------------------------
Senior Securities:
Total preferred shares outstanding 5,700 5,700
Asset coverage per preferred share(8) $ 65,107 $ 64,884
Involuntary liquidation preference per preferred
share(9) $ 25,000 $ 25,000
Approximate market value per preferred share(9) $ 25,000 $ 25,000
- --------------------------------------------------------------------------------------------------------------
</Table>
(1) Computed using average common shares outstanding.
(2) For the period from the start of business, August 30, 2002, to September
30, 2002.
(3) Net asset value at beginning of period reflects the deduction of the sales
load of $0.675 per share paid by the shareholder from the $15.000 offering
price.
(4) Total investment return on net asset value is calculated assuming a
purchase at the offering price of $15.000 less the sales load of $0.675 per
share paid by the shareholder on the first day and a sale at the net asset
value on the last day of the period reported. Total investment return on
market value is calculated assuming a purchase at the offering price of
$15.000 less the sales load of $0.675 per share paid by the shareholder on
the first day and a sale at the current market price on the last day of the
period reported. Total investment return on net asset value and total
investment return on market value are not computed on an annualized basis.
(5) Returns are historical and are calculated by determining the percentage
change in net asset value or market value with all distributions
reinvested. Total return is not computed on an annualized basis.
(6) Ratios do not reflect the effect of dividend payments to preferred
shareholders. Ratios to average net assets applicable to common shares
reflect the Fund's leveraged capital structure.
(7) Annualized.
(8) Calculated by subtracting the Fund's total liabilities (not including the
preferred shares) from the Fund's total assets, and dividing this by the
number of preferred shares outstanding.
(9) Plus accumulated and unpaid dividends.
* The per share amount is not in accord with the net realized and unrealized
gain (loss) on investments for the period because of the timing of sales of
Fund shares and the amount of the per share realized and unrealized gains
and losses at such time.
See notes to financial statements
26
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS as of March 31, 2004
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 SIGNIFICANT ACCOUNTING POLICIES
Eaton Vance Insured Municipal Bond Fund (Insured Municipal Fund), Eaton Vance
Insured California Municipal Bond Fund (Insured California Fund), and Eaton
Vance Insured New York Municipal Bond Fund (Insured New York Fund),
(individually referred to as the Fund or collectively the Funds) are
registered under the Investment Company Act of 1940 (the 1940 Act), as
amended, as non-diversified, closed-end management investment companies. The
Insured Municipal Fund was organized under the laws of the Commonwealth of
Massachusetts by an Agreement and Declaration of Trust dated July 2, 2002.
The Insured California Fund and the Insured New York Fund were organized
under the laws of the Commonwealth of Massachusetts by an Agreement and
Declaration of Trust dated July 8, 2002. Each Fund's investment objective is
to achieve current income exempt from regular federal income tax, including
alternative minimum tax, and taxes in its specified state. Each Fund seeks to
achieve its objective by investing primarily in high grade municipal
obligations that are insured as to the timely payment of principal and
interest.
The following is a summary of significant accounting policies consistently
followed by each Fund in the preparation of its financial statements. The
policies are in conformity with accounting principles generally accepted in
the United States of America.
A INVESTMENT VALUATION -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Futures contracts listed on the
commodity exchanges are valued at closing settlement prices. Interest rate
swaps are normally valued on the basis of valuations furnished by a broker.
Short-term obligations, maturing in sixty days or less, are valued at
amortized cost, which approximates value. Investments for which valuations or
market quotations are unavailable are valued at fair value using methods
determined in good faith by or at the direction of the Trustees.
B INVESTMENT TRANSACTIONS -- Investment transactions are recorded on a trade
date basis. Realized gains and losses from such transactions are determined
using the specific identification method. Securities purchased or sold on a
when-issued or delayed delivery basis may be settled a month or more after
the transaction date. The securities so purchased are subject to market
fluctuations during this period. To the extent that when-issued or delayed
delivery purchases are outstanding, the Fund instructs the custodian to
segregate assets in a separate account, with a current value at least equal
to the amount of its purchase commitments.
C INCOME -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount.
D FEDERAL TAXES -- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable, if any, and
tax-exempt income, including any net realized gain on investments. Therefore,
no provision for federal income or excise tax is necessary. At September 30,
2003, the Funds, for federal income tax purposes, had a capital loss
carryover which will reduce taxable income arising from future net realized
gain on investments, if any, to the extent permitted by the Internal Revenue
Code and thus will reduce the amount of distributions to shareholders which
would otherwise be necessary to relieve the Funds of any liability for
federal income or excise tax. The amounts and expiration dates of the capital
loss carryovers are as follows:
<Table>
<Caption>
FUND AMOUNT EXPIRES
-----------------------------------------------------------------------------
Insured Municipal $ 1,076,715 September 30, 2011
Insured California 672,504 September 30, 2011
Insured New York 1,251,495 September 30, 2011
</Table>
Additionally, at September 30, 2003, Insured Municipal Fund, Insured
California Fund and Insured New York Fund had net capital losses of
$6,521,683, $4,261,210 and $164,124, respectively, attributable to security
transactions incurred after October 31, 2002. These are treated as arising on
the first day of each Fund's taxable year ending September 30, 2004.
In addition, each Fund intends to satisfy conditions which will enable it to
designate distributions from the interest income generated by its investments
in municipal obligations, which are exempt from regular federal income taxes
when received by each Fund, as exempt-interest dividends.
E OFFERING COSTS -- Costs incurred by the Funds in connection with the
offerings of the common shares and preferred shares were recorded as a
reduction of capital paid in excess of par applicable to common shares.
F FINANCIAL FUTURES CONTRACTS -- Upon the entering of a financial futures
contract, a Fund is required to deposit (initial margin) either in cash or
securities an amount equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
27
<Page>
received by a Fund (margin maintenance) each day, dependent on the daily
fluctuations in the value of the underlying security, and are recorded for
book purposes as unrealized gains or losses by a Fund. A Fund's investment in
financial futures contracts is designed for both hedging against anticipated
future changes in interest rates and investment purposes. Should interest
rates move unexpectedly, a Fund may not achieve the anticipated benefits of
the financial futures contracts and may realize a loss.
G USE OF ESTIMATES -- The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expense during the
reporting period. Actual results could differ from those estimates.
H INDEMNIFICATIONS -- Under each Fund's organizational documents, its
officers and Trustees may be indemnified against certain liabilities and
expenses arising out of the performance of their duties to each Fund and
shareholders are indemnified against personal liability for the obligations
of each Fund. Additionally, in the normal course of business, each Fund
enters into agreements with service providers that may contain
indemnification clauses. Each Fund's maximum exposure under these
arrangements is unknown as this would involve future claims that may be made
against each Fund that have not yet occurred
I 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.
K INTERIM FINANCIAL STATEMENTS -- The interim financial statements relating
to March 31, 2004 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Funds'
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
2 AUCTION PREFERRED SHARES (APS)
Each Fund issued Auction Preferred Shares on October 29, 2002 in a public
offering. The underwriting discounts and other offering costs were recorded
as a reduction of the capital of the common shares of each Fund. Dividends on
the APS, which accrue daily, are cumulative at a rate which was established
at the offering of each Fund's APS and have been reset every seven days
thereafter by an auction. Special dividend periods were set on the following
series:
<Table>
<Caption>
DIVIDEND
EFFECTIVE PERIOD DIVIDEND MATURITY
FUND DATE (DAYS) RATE DATE
-------------------------------------------------------------------------------
Insured Municipal Series B March 2, 2004 364 1.068% March 1, 2005
Insured Municipal Series C August 6, 2003 728 1.70% August 3, 2005
Insured Municipal Series D August 7, 2003 364 1.15% August 5, 2004
Insured New York Series A August 4, 2003 364 1.05% August 2, 2004
</Table>
Insured Municipal Fund Series B, Series C, Series D and Insured New York Fund
Series A will pay each series' accumulated dividends on the first business
day of each month. Each series within a Fund is identical in all respects to
the other(s), except for the dates of reset for the dividend rates.
Auction Preferred Shares issued and outstanding as of March 31, 2004 and
dividend rate ranges for the six months ended March 31, 2004 are as indicated
below:
<Table>
<Caption>
PREFERRED SHARES DIVIDENDS RATE
FUND ISSUED AND OUTSTANDING RANGES
---------------------------------------------------------------------------
Insured Municipal Series A 4,740 0.75%-1.20%
Insured Municipal Series B 4,740 1.068%-1.18%
Insured Municipal Series C 4,740 1.70%
Insured Municipal Series D 4,740 1.15%
Insured Municipal Series E 4,740 0.74%-1.28%
Insured California Series A 3,900 0.60%-1.23%
Insured California Series B 3,900 0.75%-1.21%
Insured New York Series A 2,850 1.05%
Insured New York Series B 2,850 0.45%-1.21%
</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
28
<Page>
dividends on the APS shall remain unpaid in an amount equal to two full
years' dividends, the holders of the APS as a class have the right to elect a
majority of the Board of Trustees. In general, the holders of the APS and the
Common Shares have equal voting rights of one vote per share, except that the
holders of the APS, as a separate class, have the right to elect at least two
members of the Board of Trustees. The APS have a liquidation preference of
$25,000 per share, plus accumulated and unpaid dividends. Each Fund is
required to maintain certain asset coverage with respect to the APS as
defined in each Fund's By-Laws and the Investment Company Act of 1940. Each
Fund pays an annual fee equivalent to 0.25% of the preferred shares
liquidation value for the remarketing efforts associated with the preferred
auction.
3 DISTRIBUTIONS TO SHAREHOLDERS
Each Fund intends to make monthly distributions of net investment income,
after payments of any dividends on any outstanding APS. Distributions are
recorded on the ex-dividend date. Distribution to preferred shareholders are
recorded daily and are payable at the end of each dividend period. Each
dividend payment period for the APS is generally seven days. Insured
Municipal Fund Series B and Series D shares and Insured New York Series A
shares set a special dividend period of 364 days effective March 2, 2004,
August 7, 2003 and August 4, 2003, respectively. Insured Municipal Fund
Series C shares set a special dividend period of 728 days effective August 6,
2003. Insured Municipal Fund Series B, Series C, Series D and Insured New
York Fund Series A will pay each Series' accumulated dividends on the first
business day of each month. The applicable dividend rate for APS on March 31,
2004 are listed below. For the six months ended March 31, 2004, the amount of
dividends each Fund paid to Auction Preferred shareholders and average APS
dividend rates for such period were as follows:
<Table>
<Caption>
DIVIDENDS PAID
TO PREFERRED
SHAREHOLDERS
FROM NET AVERAGE APS
APS INVESTMENT DIVIDEND RATES
DIVIDEND RATES INCOME FOR THE FOR THE SIX MONTHS
AS OF SIX MONTHS ENDED ENDED
FUND MARCH 31, 2004 MARCH 31, 2004 MARCH 31, 2004
-----------------------------------------------------------------------------
Insured Municipal
Series A 0.94% 525,962 0.90%
Insured Municipal
Series B 1.068% 690,840 1.16%
Insured Municipal
Series C 1.70% 1,018,167 1.70%
Insured Municipal
Series D 1.15% 683,223 1.15%
Insured Municipal
Series E 0.92% 542,153 0.90%
Insured California
Series A 0.92% 431,808 0.88%
Insured California
Series B 0.90% 442,486 0.91%
Insured New York
Series A 1.05% 375,060 1.05%
Insured New York
Series B 0.60% 292,155 0.82%
</Table>
The Funds distinguish between distributions on a tax basis and a financial
reporting basis. Accounting principles generally accepted in the United
States of America require that only distributions in excess of tax basis
earnings and profits be reported in the financial statements as a return of
capital. Permanent differences between book and tax accounting relating to
distributions are reclassified to paid in capital. These differences relate
primarily to the method for amortizing premiums.
4 INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee, computed at an annual rate of 0.65% of each
Fund's average weekly gross assets, was earned by Eaton Vance Management
(EVM) as compensation for investment advisory services rendered to each Fund.
Except for Trustees of each Fund who are not members of EVM's organization,
officers and Trustees receive remuneration for their services to each Fund
out of such investment adviser fee. For the six months ended March 31, 2004,
the fee was equivalent to 0.65% (annualized) of each Fund's average weekly
gross assets and amounted to $5,061,963, $1,658,640, and $1,207,123 for
Insured Municipal Fund, Insured
29
<Page>
California Fund and Insured New York Fund, respectively. EVM also serves as
the administrator of the Funds, but currently receives no compensation.
In addition, EVM has contractually agreed to reimburse the Fund for fees and
other expenses in the amount of 0.32% of average weekly gross assets of each
Fund during the first five full years of each Fund's operations, 0.24% of
average weekly gross assets of each Fund in year six, 0.16% in year seven and
0.08% in year eight. For the six months ended March 31, 2004, EVM
contractually waived $2,492,043, $816,561 and $594,277 of its advisory fee
for Insured Municipal Fund, Insured California Fund and Insured New York
Fund, respectively
Certain officers and one Trustee of each Fund are officers of the above
organization.
5 INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, for the six months ended March 31, 2004 were as
follows:
INSURED MUNICIPAL FUND
<Table>
Purchases $ 275,261,203
Sales 313,384,322
</Table>
INSURED CALIFORNIA FUND
<Table>
Purchases $ 71,727,710
Sales 81,495,994
</Table>
INSURED NEW YORK FUND
<Table>
Purchases $ 51,508,358
Sales 60,663,669
</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 March 31, 2004, as computed for Federal
income tax purposes, were as follows:
INSURED MUNICIPAL FUND
<Table>
AGGREGATE COST $ 1,485,447,890
-----------------------------------------------------------------------------
Gross unrealized appreciation $ 65,763,033
Gross unrealized depreciation (762,007)
-----------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 65,001,026
-----------------------------------------------------------------------------
</Table>
INSURED CALIFORNIA FUND
<Table>
AGGREGATE COST $ 489,560,226
-----------------------------------------------------------------------------
Gross unrealized appreciation $ 17,885,595
Gross unrealized depreciation (539,300)
-----------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 17,346,295
-----------------------------------------------------------------------------
</Table>
INSURED NEW YORK FUND
<Table>
AGGREGATE COST $ 349,660,756
-----------------------------------------------------------------------------
Gross unrealized appreciation $ 15,846,920
Gross unrealized depreciation --
-----------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 15,846,920
-----------------------------------------------------------------------------
</Table>
7 SHARES OF BENEFICIAL INTEREST
Each Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional $0.01 par value common shares. Transactions in Fund
shares were as follows:
<Table>
<Caption>
INSURED MUNICIPAL FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales -- 1,500,000
-----------------------------------------------------------------------------
NET INCREASE -- 1,500,000
-----------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INSURED CALIFORNIA FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales -- 515,000
Shares issued pursuant to the Trust's
dividend reinvestment plan -- 6,535
-----------------------------------------------------------------------------
NET INCREASE -- 521,535
-----------------------------------------------------------------------------
</Table>
<Table>
<Caption>
INSURED NEW YORK FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 2004 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2003
-----------------------------------------------------------------------------
Sales -- 430,000
Shares issued pursuant to the Trust's
dividend reinvestment plan -- 36,478
-----------------------------------------------------------------------------
NET INCREASE -- 466,478
-----------------------------------------------------------------------------
</Table>
30
<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 March 31, 2004
is as follows:
FUTURES CONTRACTS
<Table>
<Caption>
EXPIRATION NET UNREALIZED
FUND DATE CONTRACTS POSITION DEPRECIATION
----------------------------------------------------------------------------------
Insured Municipal 6/04 3,475 U.S. Treasury Bond Short $ (8,023,558)
Insured California 6/04 705 U.S. Treasury Bond Short $ (1,622,293)
Insured New York 6/04 975 U.S. Treasury Bond Short $ (2,251,214)
</Table>
At March 31, 2004, each Fund had sufficient cash and/or securities to cover
margin requirements on open futures contracts.
31
<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.
32
<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 March 31, 2004, our records indicate that there are 371, 92 and 81
registered shareholders for Insured Municipal Fund, Insured California Fund and
Insured New York Fund, respectively, and approximately 33,500, 8,800 and 8,100
shareholders owning the Fund shares in street name, such as through brokers,
banks, and financial intermediaries for Insured Municipal Fund, Insured
California Fund and Insured New York Fund, respectively.
If you are a street name shareholder and wish to receive Fund reports directly,
which contain important information about a Fund, please write or call:
Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
1-800-225-6265
AMERICAN STOCK EXCHANGE SYMBOLS
Insured Municipal Fund EIM
Insured California Fund EVM
Insured New York Fund ENX
33
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS
INVESTMENT MANAGEMENT
EATON VANCE INSURED MUNICIPAL BOND FUNDS
OFFICERS
Thomas J. Fetter
President and Portfolio Manager
of Insured Municipal Bond Fund
and Insured New York
Municipal Bond Fund
James B. Hawkes
Vice President and Trustee
Cynthia J. Clemson
Vice President and Portfolio
Manager of Insured California
Municipal Bond Fund
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
TRUSTEES
Samuel L. Hayes, III
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
34
<Page>
THIS PAGE INTENTIONALLY LEFT BLANK
<Page>
THIS PAGE INTENTIONALLY LEFT BLANK
<Page>
THIS PAGE INTENTIONALLY LEFT BLANK
<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
EATON VANCE INSURED MUNICIPAL BOND FUNDS
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
<Page>
1453-5/04 CE-IMBSRC
<Page>
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics applicable to its Principal
Executive Officer, Principal Financial Officer and Principal Accounting Officer.
The registrant undertakes to provide a copy of such code of ethics to any person
upon request, without charge, by calling 1-800-262-1122.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The registrant's Board has designated William H. Park, Samuel L. Hayes, III and
Norton H. Reamer, each an independent trustee, as its audit committee financial
experts. Mr. Park is a certified public accountant who is the President and
Chief Executive Officer of Prizm Capital Management, LLC (investment management
firm). Previously, he served as Executive Vice President and Chief Financial
Officer of United Asset Management Corporation ("UAM") (a holding company owning
institutional investment management firms). Mr. Hayes is the Jacob H. Schiff
Professor of Investment Banking Emeritus of the Harvard University Graduate
School of Business Administration. Mr. Reamer is the President, Chief Executive
Officer and a Director of Asset Management Finance Corp. (a specialty finance
company serving the investment management industry) and is President of Unicorn
Corporation (an investment and financial advisory services company). Formerly,
Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment
management company) and Advisory Director of Berkshire Capital Corporation (an
investment banking firm), Chairman of the Board of UAM and Chairman, President
and Director of the UAM Funds (mutual funds).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not required in this filing
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not required in this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
Please see schedule of investments contained in the Report to Stockholders
included under Item 1 of this Form N-CSR.
<Page>
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
The Board of Trustees of the Trust has adopted a proxy voting policy and
procedure (the "Fund Policy"), pursuant to which the Trustees have delegated
proxy voting responsibility to the Fund's investment adviser and adopted the
investment adviser's proxy voting policies and procedures (the "Policies") which
are described below. The Trustees will review the Fund's proxy voting records
from time to time and will annually consider approving the Policies for the
upcoming year. In the event that a conflict of interest arises between the
Fund's shareholders and the investment adviser, the administrator, or any of
their affiliates or any affiliate of the Fund, the investment adviser will
generally refrain from voting the proxies related to the companies giving rise
to such conflict until it consults with the Board of the Fund except as
contemplated under the Fund Policy. The Board's Special Committee will instruct
the investment adviser on the appropriate course of action.
The Policies are designed to promote accountability of a company's management to
its shareholders and to align the interests of management with those
shareholders. The investment adviser will generally support company management
on proposals relating to environmental and social policy issues and on matters
regarding the state of organization of the company. On all other matters, the
investment adviser will take management's proposals under advisement but will
consider each matter in light of the guidelines set forth in the Policies.
Except in the instance of routine matters related to corporate administration
which are not expected to have a significant economic impact on the company or
its shareholders (on which the investment adviser will routinely vote with
management), the investment adviser will review each matter on a case-by-case
basis and reserves the right to deviate from the Policies guidelines when it
believes the situation warrants such a deviation. The Policy includes voting
guidelines for matters relating to, among other things, the election of
directors, approval of independent auditors, executive compensation, corporate
structure and anti-takeover defenses. The investment adviser may abstain from
voting from time to time where it determines that the costs associated with
voting a proxy outweighs the benefits derived from exercising the right to vote.
In addition, the investment adviser will monitor situations that may result in a
conflict of interest between the Fund's shareholders and the investment adviser,
the administrator, or any of their affiliates or any affiliate of the Fund by
maintaining a list of significant existing and prospective corporate clients.
The investment adviser's personnel responsible for reviewing and voting proxies
on behalf of the Fund will report any proxy received or expected to be received
from a company included on that list to the investment adviser's general counsel
or chief equity investment officer. The general counsel or chief equity
investment officer will determine if a conflict exists. If a conflict does
exist, the proxy will either be voted strictly in accordance with the Policy or
the investment adviser will seek instruction on how to vote from the Board.
Effective August 31, 2004, information on how the Fund voted proxies relating to
portfolio securities during the 12 month period ended June 30, 2004 [is/will be]
available (1) without charge, upon request, by calling 1-800-262-1122, and (2)
on the Securities and Exchange Commission's website at http://www.sec.gov.
<Page>
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not required in this filing.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Effective February 9, 2004, the Governance Committee of the Board of Trustees
formalized the procedures by which a Fund's shareholders may recommend nominees
to the registrant's Board of Trustees. The Governance Committee shall, when
identifying candidates for the position of Independent Trustee, consider any
such candidate recommended by a shareholder of a Fund if such recommendation
contains sufficient background information concerning the candidate, and is
received in a sufficiently timely manner (and in any event no later than the
date specified for receipt of shareholder proposals in any applicable proxy
statement with respect to a Fund). Shareholders shall be directed to address any
such recommendations to the attention of the Governance Committee, c/o the
Secretary of the Fund.
ITEM 10. CONTROLS AND PROCEDURES
(a) It is the conclusion of the registrant's principal executive officer and
principal financial officer that the effectiveness of the registrant's current
disclosure controls and procedures (such disclosure controls and procedures
having been evaluated within 90 days of the date of this filing) provide
reasonable assurance that the information required to be disclosed by the
registrant has been recorded, processed, summarized and reported within the time
period specified in the Commission's rules and forms and that the information
required to be disclosed by the registrant has been accumulated and communicated
to the registrant's principal executive officer and principal financial officer
in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant's internal controls over
financial reporting during the period that has materially affected, or is
reasonably likely to materially affect the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS
(a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2).
(a)(2)(i) Treasurer's Section 302 certification.
(a)(2)(ii) President's Section 302 certification.
(b) Combined Section 906 certification.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE INSURED MUNICIPAL BOND FUND
By: /s/ Thomas J. Fetter
---------------------------
Thomas J. Fetter
President
Date: May 20, 2004
------------
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: May 20, 2004
------------
By: /s/ Thomas J. Fetter
--------------------------------
Thomas J. Fetter
President
Date: May 20, 2004
------------
<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 (investment management
firm). Previously, he served as Executive Vice President and Chief Financial
Officer of United Asset Management Corporation ("UAM") (a holding company owning
institutional investment management firms). Mr. Hayes is the Jacob H. Schiff
Professor of Investment Banking Emeritus of the Harvard University Graduate
School of Business Administration. Mr. Reamer is the President, Chief Executive
Officer and a Director of Asset Management Finance Corp. (a specialty finance
company serving the investment management industry) and is President of Unicorn
Corporation (an investment and financial advisory services company). Formerly,
Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment
management company) and Advisory Director of Berkshire Capital Corporation (an
investment banking firm), Chairman of the Board of UAM and Chairman, President
and Director of the UAM Funds (mutual funds).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not required in this filing
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not required in this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
Please see schedule of investments contained in the Report to Stockholders
included under Item 1 of this Form N-CSR.
<Page>
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
The Board of Trustees of the Trust has adopted a proxy voting policy and
procedure (the "Fund Policy"), pursuant to which the Trustees have delegated
proxy voting responsibility to the Fund's investment adviser and adopted the
investment adviser's proxy voting policies and procedures (the "Policies") which
are described below. The Trustees will review the Fund's proxy voting records
from time to time and will annually consider approving the Policies for the
upcoming year. In the event that a conflict of interest arises between the
Fund's shareholders and the investment adviser, the administrator, or any of
their affiliates or any affiliate of the Fund, the investment adviser will
generally refrain from voting the proxies related to the companies giving rise
to such conflict until it consults with the Board of the Fund except as
contemplated under the Fund Policy. The Board's Special Committee will instruct
the investment adviser on the appropriate course of action.
The Policies are designed to promote accountability of a company's management to
its shareholders and to align the interests of management with those
shareholders. The investment adviser will generally support company management
on proposals relating to environmental and social policy issues and on matters
regarding the state of organization of the company. On all other matters, the
investment adviser will take management's proposals under advisement but will
consider each matter in light of the guidelines set forth in the Policies.
Except in the instance of routine matters related to corporate administration
which are not expected to have a significant economic impact on the company or
its shareholders (on which the investment adviser will routinely vote with
management), the investment adviser will review each matter on a case-by-case
basis and reserves the right to deviate from the Policies guidelines when it
believes the situation warrants such a deviation. The Policy includes voting
guidelines for matters relating to, among other things, the election of
directors, approval of independent auditors, executive compensation, corporate
structure and anti-takeover defenses. The investment adviser may abstain from
voting from time to time where it determines that the costs associated with
voting a proxy outweighs the benefits derived from exercising the right to vote.
In addition, the investment adviser will monitor situations that may result in a
conflict of interest between the Fund's shareholders and the investment adviser,
the administrator, or any of their affiliates or any affiliate of the Fund by
maintaining a list of significant existing and prospective corporate clients.
The investment adviser's personnel responsible for reviewing and voting proxies
on behalf of the Fund will report any proxy received or expected to be received
from a company included on that list to the investment adviser's general counsel
or chief equity investment officer. The general counsel or chief equity
investment officer will determine if a conflict exists. If a conflict does
exist, the proxy will either be voted strictly in accordance with the Policy or
the investment adviser will seek instruction on how to vote from the Board.
Effective August 31, 2004, information on how the Fund voted proxies relating to
portfolio securities during the 12 month period ended June 30, 2004 [is/will be]
available (1) without charge, upon request, by calling 1-800-262-1122, and (2)
on the Securities and Exchange Commission's website at http://www.sec.gov.
<Page>
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not required in this filing.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Effective February 9, 2004, the Governance Committee of the Board of Trustees
formalized the procedures by which a Fund's shareholders may recommend nominees
to the registrant's Board of Trustees. The Governance Committee shall, when
identifying candidates for the position of Independent Trustee, consider any
such candidate recommended by a shareholder of a Fund if such recommendation
contains sufficient background information concerning the candidate, and is
received in a sufficiently timely manner (and in any event no later than the
date specified for receipt of shareholder proposals in any applicable proxy
statement with respect to a Fund). Shareholders shall be directed to address any
such recommendations to the attention of the Governance Committee, c/o the
Secretary of the Fund.
ITEM 10. CONTROLS AND PROCEDURES
(a) It is the conclusion of the registrant's principal executive officer and
principal financial officer that the effectiveness of the registrant's current
disclosure controls and procedures (such disclosure controls and procedures
having been evaluated within 90 days of the date of this filing) provide
reasonable assurance that the information required to be disclosed by the
registrant has been recorded, processed, summarized and reported within the time
period specified in the Commission's rules and forms and that the information
required to be disclosed by the registrant has been accumulated and communicated
to the registrant's principal executive officer and principal financial officer
in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant's internal controls over
financial reporting during the period that has materially affected, or is
reasonably likely to materially affect the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS
(a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2).
(a)(2)(i) Treasurer's Section 302 certification.
(a)(2)(ii) President's Section 302 certification.
(b) Combined Section 906 certification.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND
By: /s/ Thomas J. Fetter
---------------------------
Thomas J. Fetter
President
Date: May 20, 2004
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: May 20, 2004
By: /s/ Thomas J. Fetter
--------------------------------
Thomas J. Fetter
President
Date: May 20, 2004
<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 (investment management
firm). Previously, he served as Executive Vice President and Chief Financial
Officer of United Asset Management Corporation ("UAM") (a holding company owning
institutional investment management firms). Mr. Hayes is the Jacob H. Schiff
Professor of Investment Banking Emeritus of the Harvard University Graduate
School of Business Administration. Mr. Reamer is the President, Chief Executive
Officer and a Director of Asset Management Finance Corp. (a specialty finance
company serving the investment management industry) and is President of Unicorn
Corporation (an investment and financial advisory services company). Formerly,
Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment
management company) and Advisory Director of Berkshire Capital Corporation (an
investment banking firm), Chairman of the Board of UAM and Chairman, President
and Director of the UAM Funds (mutual funds).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not required in this filing
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not required in this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
Please see schedule of investments contained in the Report to Stockholders
included under Item 1 of this Form N-CSR.
<Page>
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
The Board of Trustees of the Trust has adopted a proxy voting policy and
procedure (the "Fund Policy"), pursuant to which the Trustees have delegated
proxy voting responsibility to the Fund's investment adviser and adopted the
investment adviser's proxy voting policies and procedures (the "Policies") which
are described below. The Trustees will review the Fund's proxy voting records
from time to time and will annually consider approving the Policies for the
upcoming year. In the event that a conflict of interest arises between the
Fund's shareholders and the investment adviser, the administrator, or any of
their affiliates or any affiliate of the Fund, the investment adviser will
generally refrain from voting the proxies related to the companies giving rise
to such conflict until it consults with the Board of the Fund except as
contemplated under the Fund Policy. The Board's Special Committee will instruct
the investment adviser on the appropriate course of action.
The Policies are designed to promote accountability of a company's management to
its shareholders and to align the interests of management with those
shareholders. The investment adviser will generally support company management
on proposals relating to environmental and social policy issues and on matters
regarding the state of organization of the company. On all other matters, the
investment adviser will take management's proposals under advisement but will
consider each matter in light of the guidelines set forth in the Policies.
Except in the instance of routine matters related to corporate administration
which are not expected to have a significant economic impact on the company or
its shareholders (on which the investment adviser will routinely vote with
management), the investment adviser will review each matter on a case-by-case
basis and reserves the right to deviate from the Policies guidelines when it
believes the situation warrants such a deviation. The Policy includes voting
guidelines for matters relating to, among other things, the election of
directors, approval of independent auditors, executive compensation, corporate
structure and anti-takeover defenses. The investment adviser may abstain from
voting from time to time where it determines that the costs associated with
voting a proxy outweighs the benefits derived from exercising the right to vote.
In addition, the investment adviser will monitor situations that may result in a
conflict of interest between the Fund's shareholders and the investment adviser,
the administrator, or any of their affiliates or any affiliate of the Fund by
maintaining a list of significant existing and prospective corporate clients.
The investment adviser's personnel responsible for reviewing and voting proxies
on behalf of the Fund will report any proxy received or expected to be received
from a company included on that list to the investment adviser's general counsel
or chief equity investment officer. The general counsel or chief equity
investment officer will determine if a conflict exists. If a conflict does
exist, the proxy will either be voted strictly in accordance with the Policy or
the investment adviser will seek instruction on how to vote from the Board.
Effective August 31, 2004, information on how the Fund voted proxies relating to
portfolio securities during the 12 month period ended June 30, 2004 [is/will be]
available (1) without charge, upon request, by calling 1-800-262-1122, and (2)
on the Securities and Exchange Commission's website at http://www.sec.gov.
<Page>
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not required in this filing.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Effective February 9, 2004, the Governance Committee of the Board of Trustees
formalized the procedures by which a Fund's shareholders may recommend nominees
to the registrant's Board of Trustees. The Governance Committee shall, when
identifying candidates for the position of Independent Trustee, consider any
such candidate recommended by a shareholder of a Fund if such recommendation
contains sufficient background information concerning the candidate, and is
received in a sufficiently timely manner (and in any event no later than the
date specified for receipt of shareholder proposals in any applicable proxy
statement with respect to a Fund). Shareholders shall be directed to address any
such recommendations to the attention of the Governance Committee, c/o the
Secretary of the Fund.
ITEM 10. CONTROLS AND PROCEDURES
(a) It is the conclusion of the registrant's principal executive officer and
principal financial officer that the effectiveness of the registrant's current
disclosure controls and procedures (such disclosure controls and procedures
having been evaluated within 90 days of the date of this filing) provide
reasonable assurance that the information required to be disclosed by the
registrant has been recorded, processed, summarized and reported within the time
period specified in the Commission's rules and forms and that the information
required to be disclosed by the registrant has been accumulated and communicated
to the registrant's principal executive officer and principal financial officer
in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant's internal controls over
financial reporting during the period that has materially affected, or is
reasonably likely to materially affect the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS
(a)(1) Registrant's Code of Ethics - Not applicable (please see Item 2).
(a)(2)(i) Treasurer's Section 302 certification.
(a)(2)(ii) President's Section 302 certification.
(b) Combined Section 906 certification.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND
By: /s/ Thomas J. Fetter
---------------------------
Thomas J. Fetter
President
Date: May 20, 2004
------------
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: May 20, 2004
------------
By: /s/ Thomas J. Fetter
--------------------------------
Thomas J. Fetter
President
Date: May 20, 2004
------------