<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
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Eaton Vance Insured Municipal Bond Fund
---------------------------------------
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(registrant's Telephone Number)
September 30
----------------
Date of Fiscal Year End
September 30, 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
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Eaton Vance Insured New York Municipal Bond Fund
------------------------------------------------
(Exact Name of registrant as Specified in Charter)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Address of Principal Executive Offices)
Alan R. Dynner
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
-----------------------------------------------------------------------
(Name and Address of Agent for Services)
(617) 482-8260
--------------
(registrant's Telephone Number)
September 30
------------
Date of Fiscal Year End
September 30, 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
September 30, 2004
----------------------
Date of Reporting Period
ITEM 1. REPORTS TO STOCKHOLDERS
<Page>
[EV LOGO]
[GRAPHIC IMAGE]
ANNUAL REPORT SEPTEMBER 30, 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.
Each Fund will file a schedule of its portfolio holdings on Form N-Q with the
Securities and Exchange Commission (the "SEC") for the first and third quarters
of each fiscal year. Each Fund's Form N-Q will be available on the Eaton Vance
website www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the
EDGAR database on the SEC's website at www.sec.gov. Form N-Q may also be
reviewed and copied at the SEC's public reference room in Washington, D.C. (call
1-800-732-0330 for information on the operation of the public reference room).
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 September 30, 2004
LETTER TO SHAREHOLDERS
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
President
The municipal bond market consists of a broad array of bond issues, with widely
varying features and performance characteristics that may make them appropriate
for a specific investment scenario. In this edition of our continuing
educational series, we will feature zero coupon bonds - a variety of bond that
has seen increasing use by investors over the past 20 years - and discuss why
they can provide flexibility in managing a bond portfolio.
THE 1980'S BROUGHT NEW VARIATIONS TO THE BOND MARKET...
Any discussion of zero coupon bonds should start with the term "coupon."
Traditionally, bonds were issued in certificate form, with interest coupons
attached, which the owner would clip and present for payment. The coupon rate
indicates the rate of annual interest the issuer pays to the bondholder. For
example, a $1,000 bond with a 5% coupon makes two semiannual interest payments
of $25 each.
Today, most bonds are issued as "book-entry bonds," registered in the owner's
name on the books of the issuer, but not delivered in certificate form. That
change has not only replaced the antiquated coupon-clipping system, but also
encouraged the development of new types of bonds - including zero coupon
bonds, introduced in 1982.
ZERO-COUPONS: NO INTEREST PAYMENTS, BUT A PREDICTABLE LUMP-SUM PAYMENT AT
MATURITY...
Zero coupon bonds do not have coupons attached and do not make regular interest
payments. Instead, they are issued at a discount, usually well below par, or
face value. As with coupon bonds, the bondholder receives face value if the bond
is held to its maturity date. Over time - from its issuance to its maturity -
zero coupon bonds accrete to par, meaning that their price appreciates over time
to reflect the accrual of "imputed" compound interest. An investor holding a
zero coupon bond to maturity receives a lump sum payment from the issuer for
face value reflecting the initial investment plus interest that has accrued.
Although zero coupon bonds do not pay any interest until they mature, the
accrual of "imputed" compound interest is recognized currently. Mutual funds are
required to distribute substantially all of their income (including accrued
income) annually. A fund may therefore be required to sell securities to obtain
cash needed for income distributions.
ZERO COUPON BONDS PROVIDE PORTFOLIO MANAGERS ADDITIONAL FLEXIBILITY...
For a portfolio manager, zero coupons can play a useful strategic role. Like
other bonds, zero coupon bond prices are affected by market conditions, changes
in an issuer's underlying fundamentals and fluctuations in interest rates.
Because they pay no coupon or periodic interest payments, they typically display
more price sensitivity than other bonds in response to changes in interest
rates. Therefore, zero coupon bonds can provide more appreciation potential in a
declining interest rate environment. Of course, zero coupons display increased
DOWNSIDE volatility in the event of an INCREASE in interest rates.
Some zero coupon bonds start out as coupon-bearing bonds, which are then
deposited with a trustee and subsequently "stripped" of their coupons. New
securities are then created from principal and coupon payments. This allows an
investor to choose a maturity to match the time when funds will be needed.
Moreover, because of their many permutations, zero coupon bonds can help balance
income-oriented bonds with performance-oriented zero coupons, providing more
versatility in managing a municipal portfolio.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
November 10, 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>
EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2004
MARKET RECAP
The U.S. economy continued to expand in the year ended September 30, 2004,
although at a somewhat more moderate rate, as the fiscal year drew to a close.
One key economic factor was the surge in gasoline and energy prices, which
raised fears that inflation could re-emerge. Amid those concerns, bond market
performance was less robust in the second half of the year than in the first
half.
IN AN UNEVEN ECONOMY, SOME SECTORS GENERATED GROWTH...
The nation's Gross Domestic Product grew by 3.7% in the third quarter of 2004,
following a 2.8% rise in the second quarter. Economic activity was uneven, with
some segments slowing, while others grew at varying rates. For example, retail
sales slowed in reaction to consumer concerns over inflation and ongoing
geo-political events. Auto sales were impacted by higher gas prices, with buyers
opting for fuel-efficient smaller vehicles over SUVs and trucks.
Interestingly, manufacturing activity grew stronger, driven by rising demand for
durable goods and capital equipment. Demand for aerospace equipment, steel
products, industrial machinery, and information technology products was
especially strong. Non-durable goods manufacturing, tied more closely to
consumer spending, weakened significantly. The construction sector followed
recent patterns, with residential building on the rise, while commercial
activity lagged.
HOWEVER ERRATIC, JOB GROWTH HAS GAINED SOME STRENGTH...
Meanwhile, job growth continued to puzzle many economists throughout much of the
year. Having made significant productivity improvements during the recent
economic downturn, many businesses were slow to return to previous employment
levels. As a result, job gains during the summer and early fall fell short of
expectations. However, later reports brought news of a surge in new employment,
with strength in construction areas, as well as in the energy, transportation,
health care and service sectors. The nation's unemployment rate fell to 5.4% in
September 2004, down from 6.1% a year earlier.
[CHART]
MUNICIPAL BOND YIELDS WERE 98% OF TREASURY YIELDS
<Table>
30-YEAR AAA-RATED GENERAL OBLIGATION (GO) BONDS* 4.81%
TAXABLE EQUIVALENT YIELD IN 35.0% TAX BRACKET 7.40%
30-YEAR TREASURY BOND 4.91%
</Table>
PRINCIPAL AND INTEREST PAYMENTS OF TREASURY SECURITIES ARE GUARANTEED BY THE
U.S. GOVERNMENT.
*GO YIELDS ARE A COMPILATION OF A REPRESENTATIVE VARIETY OF GENERAL OBLIGATIONS
AND ARE NOT NECESSARILY REPRESENTATIVE OF A FUND'S YIELD. STATISTICS AS OF
SEPTEMBER 30, 2004.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
SOURCE: BLOOMBERG, L.P.
THE FEDERAL RESERVE REMAINED VIGILANT IN LIGHT OF RISING INFLATION...
Inflation re-emerged as a concern to investors and to the Federal Reserve. Oil
prices soared amid supply concerns, which were exacerbated by the continuing
turmoil in the Middle East, hurricanes in the Gulf of Mexico and surging demand
from China. Against that backdrop, the Federal Reserve emphasized that it would
wage a vigorous fight against inflation. After maintaining a stable interest
rate policy for more than a year, the Fed raised its benchmark Federal Funds
rate by 25 basis points in June, August and September 2004.
Following a strong rally in the first half of the year, the municipal bond
market lost some momentum in the second half, as inflation exerted upward
pressure on interest rates. For the year ended September 30, 2004, the Lehman
Brothers Municipal Bond Index had a total return of 4.60%.*
*It is not possible to invest directly in an Index. The Index's total return
does not reflect commissions or expenses that would have been incurred if an
investor individually purchased or sold the securities represented in the Index.
THE VIEWS EXPRESSED THROUGHOUT THIS REPORT ARE THOSE OF THE VARIOUS PORTFOLIO
MANAGERS AND ARE CURRENT ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS
STATED ON THE COVER. THESE VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON
MARKET OR OTHER CONDITIONS, AND EATON VANCE DISCLAIMS ANY RESPONSIBILITY TO
UPDATE SUCH VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND,
BECAUSE INVESTMENT DECISIONS FOR AN EATON VANCE FUND ARE BASED ON MANY FACTORS,
MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON BEHALF OF ANY EATON
VANCE FUND.
3
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUND as of September 30, 2004
INVESTMENT UPDATE
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 9.91% for the year ended September 30, 2004. That return was
the result of an increase in share price from $13.58 on September 30, 2003 to
$13.95 on September 30, 2004 and the reinvestment of $0.938 in regular
monthly dividends.(1)
- - Based on net asset value, the Fund had a total return of 7.58% for the year
ended September 30, 2004. That return was the result of an increase in net
asset value per share from $14.67 on September 30, 2003 to $14.75 on
September 30, 2004, and the reinvestment of all distributions.
- - In comparison, the Lehman Brothers Municipal Bond Index had a total return of
4.60% during the year ended September 30, 2004.(2)
- - Based on the most recent dividend and a share price of $13.95, the Fund had a
market yield of 6.72% at September 30, 2004.(3) The Fund's market yield is
equivalent to a taxable yield of 10.34%.(4)
[CHART]
RATING DISTRIBUTION(5),(6)
By total investments
<Table>
Non-Rated 0.9%
AAA 83.6%
AA 2.1%
A 12.0%
BBB 1.4%
</Table>
* Private insurance does not decrease the risk of loss of principal
associated with this investment.
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
Portfolio Manager
MANAGEMENT UPDATE
- - The U.S. economy continued to expand modestly in 2004, although consumers
grew increasingly worried about rising fuel costs. Economic growth was
supported primarily by capital spending, as businesses made new investments
in computers and machinery. The U.S. jobless rate was 5.4% in September 2004,
down from 6.1% a year ago.
- - Reflecting the key role of transportation in the nation's economy, insured*
transportation bonds were the Fund's largest sector weighting at September
30, 2004. As the nation has upgraded its transportation facilities to adjust
to changing needs, the Fund's investments included issues for turnpikes,
highways, bridges, monorails and mass transit.
- - Insured* general obligations (GO) again played a prominent role in the Fund.
Given the slow economic recovery, insured* GOs were prized investments,
especially in a market characterized by very narrow quality spreads.
- - The Fund maintained a focus on essential services bonds, including insured*
electric utility bonds. The revenues for these issues derive from utility
payments and are, therefore, considered less subject to economic fluctuations
than more discretionary expenditures.
- - At September 30, 2004, the Fund had leverage in the amount of approximately
38% of the Fund's total assets. The Fund uses leverage through the issuance
of preferred shares. Use of financial leverage creates an opportunity for
increased income, but, at the same time, creates special risks (including the
likelihood of greater volatility of net asset value and market price of
common shares).
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL AND
ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN NET ASSET VALUE OR SHARE
PRICE (AS APPLICABLE) WITH ALL DISTRIBUTIONS REINVESTED. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE IS FOR THE STATED TIME PERIOD
ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER OR
HIGHER THAN THE QUOTED RETURN.
FUND INFORMATION
AS OF SEPTEMBER 30, 2004
PERFORMANCE(7)
Average Annual Total Returns (by share price, American Stock Exchange)
<Table>
One Year 9.91%
Life of Fund (8/30/02) 5.19
</Table>
Average Annual Total Returns (by net asset value)
<Table>
One Year 7.58%
Life of Fund (8/30/02) 8.03
</Table>
(1) A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO FEDERAL INCOME TAX AND/OR
ALTERNATIVE MINIMUM TAX; INCOME MAY BE SUBJECT TO STATE INCOME TAX. (2) IT
IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THE INDEX'S TOTAL RETURN
DOES NOT REFLECT THE COMMISSIONS OR EXPENSES THAT WOULD HAVE BEEN INCURRED
IF AN INVESTOR INDIVIDUALLY PURCHASED OR SOLD THE SECURITIES REPRESENTED IN
THE INDEX. (3) 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. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM
35.00% FEDERAL INCOME TAX RATE. A LOWER TAX RATE WOULD RESULT IN A LOWER
TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE REPRESENTATIVE OF
THE FUND'S CURRENT OR FUTURE INVESTMENTS. (6) RATING DISTRIBUTION IS
DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES BY THE TOTAL
INVESTMENTS OF THE FUND. (7) 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.
4
<Page>
EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND as of September 30, 2004
INVESTMENT UPDATE
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 9.36% for the year ended September 30, 2004. That return was
the result of an increase in share price from $13.41 on September 30, 2003 to
$13.73 on September 30, 2004 and the reinvestment of $0.900 in regular
monthly dividends.(1)
- - Based on net asset value, the Fund had a total return of 7.34% for the year
ended September 30, 2004. That return was the result of an increase in net
asset value per share from $14.18 on September 30, 2003 to $14.25 on
September 30, 2004, and the reinvestment of all distributions.
- - In comparison, the Lehman Brothers Municipal Bond Index had a total return of
4.60% during the year ended September 30, 2004.(2)
- - Based on the most recent dividend and a share price of $13.73, the Fund had a
market yield of 6.55% at September 30, 2004.(3) The Fund's market yield is
equivalent to a taxable yield of 11.11%.(4)
[CHART]
RATING DISTRIBUTION(5),(6)
By total investments
<Table>
AAA 88.4%
AA 4.9%
A 6.3%
BBB 0.4%
</Table>
* Private insurance does not decrease the risk of loss of principal
associated with this investment.
[PHOTO OF CYNTHIA J. CLEMSON]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
- - Although the California economy managed to halt its job losses in 2004, the
state continued to lag the nation in new job creation. While the state's
information technology area was slow to recover, business services, energy
and construction sectors were strong. The state's September 2004 jobless rate
was 5.9%, down from 6.7% a year ago.
- - Insured* general obligations (GOs) constituted the Fund's largest sector
weighting at September 30, 2004. Given the state's recent budgetary and
financial difficulties, the Fund's investments focused primarily on insured*
local school district bonds of communities with a good property tax base and
sound local finances.
- - Insured* lease revenue/certificates of participation (COPs) were major
investments for the Fund. COPs were a vehicle employed by various Financing
Authorities throughout the state to finance such diverse projects as
recreational facilities, public improvements and seismic - quake-resistant -
retrofits.
- - Insured* special tax revenue bonds were significant investments of the Fund
and financed a wide variety of projects. The Fund's investments included
issues that financed school projects, rapid transit projects and public
facilities throughout California.
- - At September 30, 2004, the Fund had leverage in the amount of approximately
39% of the Fund's total assets. The Fund uses leverage through the issuance
of preferred shares. Use of financial leverage creates an opportunity for
increased income, but, at the same time, creates special risks (including the
likelihood of greater volatility of net asset value and market price of
common shares).
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL AND
ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN NET ASSET VALUE OR SHARE
PRICE (AS APPLICABLE) WITH ALL DISTRIBUTIONS REINVESTED. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE IS FOR THE STATED TIME PERIOD
ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER OR
HIGHER THAN THE QUOTED RETURN.
FUND INFORMATION
AS OF SEPTEMBER 30, 2004
PERFORMANCE(7)
Average Annual Total Returns (by share price, American Stock Exchange)
<Table>
One Year 9.36%
Life of Fund (8/30/02) 4.35
</Table>
Average Annual Total Returns (by net asset value)
<Table>
One Year 7.34%
Life of Fund (8/30/02) 6.23
</Table>
(1) A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO FEDERAL INCOME TAX AND/OR
ALTERNATIVE MINIMUM TAX; INCOME MAY BE SUBJECT TO STATE INCOME TAX. (2) IT
IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THE INDEX'S TOTAL RETURN
DOES NOT REFLECT THE COMMISSIONS OR EXPENSES THAT WOULD HAVE BEEN INCURRED
IF AN INVESTOR INDIVIDUALLY PURCHASED OR SOLD THE SECURITIES REPRESENTED IN
THE INDEX. (3) 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. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM
41.05% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD
RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE
REPRESENTATIVE OF THE FUND'S CURRENT OR FUTURE INVESTMENTS. (6) RATING
DISTRIBUTION IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES
BY THE TOTAL INVESTMENTS OF THE FUND. (7) 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.
5
<Page>
EATON VANCE INSURED NEW YORK MUNICIPAL BOND FUND as of September 30, 2004
INVESTMENT UPDATE
THE FUND
- - Based on share price (traded on the American Stock Exchange), the Fund had a
total return of 10.02% for the year ended September 30, 2004. That return was
the result of an increase in share price from $13.45 on September 30, 2003 to
$13.86 on September 30, 2004 and the reinvestment of $0.900 in regular
monthly dividends.(1)
- - Based on net asset value, the Fund had a total return of 6.10% for the year
ended September 30, 2004. That return was the result of a decrease in net
asset value per share from $14.48 on September 30, 2003 to $14.39 on
September 30, 2004, and the reinvestment of all distributions.
- - In comparison, the Lehman Brothers Municipal Bond Index had a total return of
4.60% during the year ended September 30, 2004.(2)
- - Based on the most recent dividend and a share price of $13.86, the Fund had a
market yield of 6.49% at September 30, 2004.(3) The Fund's market yield is
equivalent to a taxable yield of 10.82%.(4)
[CHART]
RATING DISTRIBUTION(5),(6)
By total investments
<Table>
AAA 84.8%
AA 10.0%
A 5.2%
</Table>
* Private insurance does not decrease the risk of loss of principal
associated with this investment.
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
Portfolio Manager
MANAGEMENT UPDATE
- - In 2004, the New York economy registered its strongest growth since the 2001
recession. The state saw a significant upturn in key sectors, such as
business services, information, technology and continued growth in health
care, education and tourism. These areas offset job losses in manufacturing,
banking and government. The state's September 2004 jobless rate was 5.5%,
down from 6.4% a year ago.
- - Insured* transportation bonds were the Fund's largest sector weighting at
September 30, 2004. The Fund's investments included issues for toll bridges,
mass transit and port authorities, which have increased their investments to
meet the New York area's growth and security needs.
- - Insured* private education bonds were a significant focus of the Fund, with
an emphasis on dormitory issues. These bonds provides financing for the
construction and expansion of dormitories, classrooms and lab facilities for
public and private universities throughout the state.
- - The Fund insured* hospital bond investments emphasized institutions with
strong patient demand. In a competitive industry, management targeted some of
New York's most renowed facilities, including New York Presbyterian and
Memorial Sloan-Kettering.
- - At September 30, 2004, the Fund had leverage in the amount of approximately
38% of the Fund's total assets. The Fund uses leverage through the issuance
of preferred shares. Use of financial leverage creates an opportunity for
increased income, but, at the same time, creates special risks (including the
likelihood of greater volatility of net asset value and market price of
common shares).
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. RETURNS ARE HISTORICAL AND
ARE CALCULATED BY DETERMINING THE PERCENTAGE CHANGE IN NET ASSET VALUE OR SHARE
PRICE (AS APPLICABLE) WITH ALL DISTRIBUTIONS REINVESTED. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE IS FOR THE STATED TIME PERIOD
ONLY; DUE TO MARKET VOLATILITY, THE FUND'S CURRENT PERFORMANCE MAY BE LOWER OR
HIGHER THAN THE QUOTED RETURN.
FUND INFORMATION
AS OF SEPTEMBER 30, 2004
PERFORMANCE(7)
Average Annual Total Returns (by share price, American Stock Exchange)
<Table>
One Year 10.02%
Life of Fund (8/30/02) 4.73
</Table>
Average Annual Total Returns (by net asset value)
<Table>
One Year 6.10%
Life of Fund (8/30/02) 6.62
</Table>
(1) A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO FEDERAL INCOME TAX AND/OR
ALTERNATIVE MINIMUM TAX; INCOME MAY BE SUBJECT TO STATE INCOME TAX. (2) IT
IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THE INDEX'S TOTAL RETURN
DOES NOT REFLECT THE COMMISSIONS OR EXPENSES THAT WOULD HAVE BEEN INCURRED
IF AN INVESTOR INDIVIDUALLY PURCHASED OR SOLD THE SECURITIES REPRESENTED IN
THE INDEX. (3) 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. (4) TAXABLE-EQUIVALENT YIELD ASSUMES A MAXIMUM
40.01% COMBINED FEDERAL AND STATE INCOME TAX RATE. A LOWER TAX RATE WOULD
RESULT IN A LOWER TAX-EQUIVALENT FIGURE. (5) RATING DISTRIBUTION MAY NOT BE
REPRESENTATIVE OF THE FUND'S CURRENT OR FUTURE INVESTMENTS. (6) RATING
DISTRIBUTION IS DETERMINED BY DIVIDING THE TOTAL MARKET VALUE OF THE ISSUES
BY THE TOTAL INVESTMENTS OF THE FUND. (7) 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.
6
<Page>
INSURED MUNICIPAL BOND FUND as of September 30, 2004
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 161.1%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 1.6%
$ 10,000 Cohasset, MN, PCR, (Allete, Inc.), 4.95%, 7/1/22 $ 10,134,500
3,500 Minnesota Municipal Power Agency, 5.00%, 10/1/34 3,511,760
2,000 Minnesota Municipal Power Agency, 5.125%, 10/1/29 2,040,000
- --------------------------------------------------------------------------------------------------------------
$ 15,686,260
- --------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 7.0%
$ 12,500 California, 5.25%, 4/1/30 $ 12,854,875
3,750 California, 5.25%, 4/1/34 3,872,625
13,250 California, 5.50%, 11/1/33 14,051,095
19,500 New York City, NY, 5.25%, 1/15/33 20,113,080
15,000 Puerto Rico Public Buildings Authority, Commonwealth
Guaranteed, 5.25%, 7/1/29 15,638,400
- --------------------------------------------------------------------------------------------------------------
$ 66,530,075
- --------------------------------------------------------------------------------------------------------------
HOSPITAL -- 3.3%
$ 5,000 Camden County, NJ, Improvement Authority,
(Cooper Health), 5.75%, 2/15/34 $ 5,042,700
1,500 Colorado Health Facilities Authority,
(Parkview Medical Center, Inc.), 5.00%, 9/1/25 1,478,505
3,400 Cuyahoga County, OH, (Cleveland Clinic Health System),
5.50%, 1/1/29 3,512,948
3,900 Hawaii Pacific Health, 5.60%, 7/1/33 3,949,413
6,275 Highlands County, FL, Health Facilities Authority,
(Adventist Health System), 5.375%, 11/15/35 6,438,401
8,500 Lehigh County, PA, General Purpose Authority,
(Lehigh Valley Health Network), 5.25%, 7/1/32 8,540,885
2,500 South Miami, FL, Health Facility Authority,
(Baptist Health), 5.25%, 11/15/33 2,549,700
- --------------------------------------------------------------------------------------------------------------
$ 31,512,552
- --------------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 14.8%
$ 13,000 Burlington, KS, PCR, (Kansas Gas & Electric Co.), (MBIA),
5.30%, 6/1/31 $ 13,729,040
21,355 Chelan County, WA, Public Utility District No. 1,
(Columbia River), (MBIA), 0.00%, 6/1/27 6,437,892
4,750 Forsyth, MT, PCR, (Puget Sound Energy), (AMBAC),
5.00%, 3/1/31 4,877,300
21,000 Long Island Power Authority, NY, (AMBAC),
5.00%, 9/1/34 21,467,460
2,625 Municipal Energy Agency, NE, (Power Supply System),
(FSA), 5.00%, 4/1/36 2,678,392
7,585 Nebraska Public Power District, (AMBAC),
5.00%, 1/1/27 7,825,900
$ 60,755 South Carolina Public Service Authority, (FSA),
5.125%, 1/1/37 $ 62,352,249
19,490 Southern Minnesota Municipal Power Agency, (MBIA),
0.00%, 1/1/21 9,218,575
10,650 Southern Minnesota Municipal Power Agency, (MBIA),
0.00%, 1/1/22 4,754,053
18,745 Southern Minnesota Municipal Power Agency, (MBIA),
0.00%, 1/1/24 7,436,704
- --------------------------------------------------------------------------------------------------------------
$ 140,777,565
- --------------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 35.7%
$ 4,400 Alvin, TX, Independent School District, (MBIA),
3.25%, 2/15/27 $ 3,424,828
60,000 California, (XLCA), 5.00%, 10/1/28 61,490,400
17,380 Chicago, IL, (MBIA), 5.00%, 1/1/41 17,488,973
15,530 Chicago, IL, Board of Education, (Chicago School Reform),
(FGIC), 0.00%, 12/1/30 3,841,345
41,300 Chicago, IL, Board of Education, (Chicago School Reform),
(FGIC), 0.00%, 12/1/21 18,078,662
36,135 Chicago, IL, Board of Education, (FGIC), 0.00%, 12/1/30 8,969,791
10,000 Chicago, IL, Board of Education, (FGIC), 0.00%, 12/1/31 2,341,200
19,000 Chicago, IL, Board of Education, (FGIC), 0.00%, 12/1/29 5,009,920
10,500 Chicago, IL, Board of Education, (FGIC), 0.00%, 12/1/29 2,773,365
10,000 Detroit, MI, School District, (FGIC), 5.00%, 5/1/32 10,196,800
14,375 Detroit, MI, School District, (FGIC), 5.25%, 5/1/28 15,098,637
16,115 Florida Department of Transportation, (Right of Way),
(FSA), 5.00%, 7/1/31 16,580,079
16,920 Florida Department of Transportation, (Right of Way),
(FSA), 5.00%, 7/1/32 17,401,036
20,425 Kane Cook and Du Page Counties, IL,
School District No. 46, (AMBAC), 0.00%, 1/1/21 9,314,413
50,650 Kane Cook and Du Page Counties, IL,
School District No. 46, (AMBAC), 0.00%, 1/1/22 21,714,161
7,500 King County, WA, (MBIA), 5.25%, 1/1/34 7,778,925
44,000 Massachusetts, (AMBAC), 5.50%, 8/1/30 50,055,720
13,000 Philadelphia, PA, School District, (FGIC), 5.25%, 6/1/34 13,641,290
9,650 Phoenix, AZ, (AMBAC), 3.00%, 7/1/28 7,282,758
20,750 Schaumburg, IL, (FGIC), 5.00%, 12/1/38 21,019,542
21,300 Washington, (Motor Vehicle Fuel),
(MBIA), 0.00%, 6/1/25 7,371,504
21,125 Washington, (Motor Vehicle Fuel),
(MBIA), 0.00%, 6/1/26 6,843,232
21,070 Washington, (Motor Vehicle Fuel),
(MBIA), 0.00%, 6/1/27 6,415,394
21,510 Washington, (Motor Vehicle Fuel),
(MBIA), 0.00%, 6/1/28 6,170,359
- --------------------------------------------------------------------------------------------------------------
$ 340,302,334
- --------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
7
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 2.0%
$ 11,700 Maryland HEFA, (Medlantic/Helix Issue), (AMBAC),
5.25%, 8/15/38 $ 12,607,218
6,000 Maryland HEFA, (Medlantic/Helix Issue), (FSA),
5.25%, 8/15/38 6,465,240
- --------------------------------------------------------------------------------------------------------------
$ 19,072,458
- --------------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES OF
PARTICIPATION -- 5.8%
$ 12,010 Anaheim, CA, Public Financing Authority Lease Revenue,
(FSA), 5.00%, 3/1/37 $ 12,108,482
42,795 San Jose, CA, Financing Authority, (Civic Center),
(AMBAC), 5.00%, 6/1/37 43,289,282
- --------------------------------------------------------------------------------------------------------------
$ 55,397,764
- --------------------------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 2.4%
$ 10,000 Massachusetts Development Finance Agency,
(Franklin W. Olin College), (XLCA), 5.25%, 7/1/33 $ 10,386,600
13,400 Massachusetts HEFA, (Boston University), (FGIC),
4.50%, 10/1/37 12,754,522
- --------------------------------------------------------------------------------------------------------------
$ 23,141,122
- --------------------------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 5.2%
$ 35,770 University of California, (FGIC), 5.00%, 9/1/27 $ 36,231,791
12,500 University of Massachusetts Building Authority, (AMBAC),
5.25%, 11/1/29 13,175,125
- --------------------------------------------------------------------------------------------------------------
$ 49,406,916
- --------------------------------------------------------------------------------------------------------------
INSURED-SEWER REVENUE -- 3.4%
$ 13,670 Chicago, IL, Wastewater Transmission, (MBIA),
0.00%, 1/1/23 $ 5,510,514
19,000 King County, WA, Sewer, (FGIC), 5.00%, 1/1/31 19,269,800
11,365 Passaic Valley, NJ, Sewer Commissioners, (FGIC),
2.50%, 12/1/32 7,516,925
- --------------------------------------------------------------------------------------------------------------
$ 32,297,239
- --------------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 7.0%
$ 3,750 Arizona Tourism and Sports Authority, (Multipurpose
Stadium Facility), (MBIA), 5.00%, 7/1/25 $ 3,891,037
18,980 Houston, TX, Hotel Occupancy Tax, (AMBAC),
0.00%, 9/1/24 6,893,156
10,000 Metropolitan Transportation Authority, NY, Dedicated
Tax Fund, (MBIA), 5.00%, 11/15/30 10,230,700
9,000 Metropolitan Transportation Authority, NY, Petroleum
Tax Fund, (FGIC), 5.00%, 11/15/31 9,180,540
$ 10,500 Reno, NV, Sales and Room Tax, (AMBAC),
5.125%, 6/1/37 $ 10,748,535
25,500 Utah Transportation Authority Sales Tax,
(FSA), 5.00%, 6/15/32 25,910,040
- --------------------------------------------------------------------------------------------------------------
$ 66,854,008
- --------------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 37.0%
$ 15,600 California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/33 $ 15,948,348
10,000 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/24 3,674,300
17,000 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/25 5,820,290
10,200 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/21 4,539,918
20,000 E-470 Public Highway Authority, CO, (MBIA),
0.00%, 9/1/24 7,291,800
34,915 Massachusetts Turnpike Authority, Metropolitan Highway
System, (AMBAC), 5.00%, 1/1/39 35,176,863
25,000 Massachusetts Turnpike Authority, Metropolitan Highway
System, (MBIA), 5.00%, 1/1/37 25,212,250
9,985 Massachusetts Turnpike Authority, Metropolitan Highway
System, (MBIA), 5.125%, 1/1/37 10,137,671
20,000 Nevada Department of Business and Industry, (Las Vegas
Monorail -1st Tier), (AMBAC), 5.375%, 1/1/40 20,686,200
10,070 Nevada Department of Business and Industry, (Las Vegas
Monorail), (AMBAC), 0.00%, 1/1/23 4,011,888
3,100 Nevada Department of Business and Industry, (Las Vegas
Monorail), (AMBAC), 0.00%, 1/1/28 893,544
13,700 Newark, NJ, Housing Authority, (Newark Marine Terminal),
(MBIA), 5.00%, 1/1/37 13,985,919
25,415 Northwest Parkway Public Highway Authority, CO, (FSA),
5.25%, 6/15/41 26,137,294
75,000 San Joaquin Hills, CA, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/31 18,407,250
45,020 San Joaquin Hills, CA, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/26 14,826,887
119,000 San Joaquin Hills, CA, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/34 24,809,120
87,045 San Joaquin Hills, CA, Transportation Corridor Agency,
(Toll Road Bonds), (MBIA), 0.00%, 1/15/25 30,624,172
23,000 Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/27 6,889,420
40,165 Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/20 18,828,147
64,900 Texas Turnpike Authority, (AMBAC), 5.00%, 8/15/42 65,168,686
- --------------------------------------------------------------------------------------------------------------
$ 353,069,967
- --------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
8
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------------------------
INSURED-UTILITIES -- 8.0%
$ 5,000 Illinois Development Finance Authority, (Peoples Gas,
Light and Coke), (AMBAC), 5.00%, 2/1/33 $ 5,076,300
61,000 Los Angeles, CA, Department of Water and Power, (FGIC),
5.00%, 7/1/43 61,470,920
10,000 West Palm Beach, FL, Utility System,
(FGIC), 5.00%, 10/1/34 10,233,200
- --------------------------------------------------------------------------------------------------------------
$ 76,780,420
- --------------------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 10.5%
$ 25,885 Atlanta, GA, Water and Wastewater, (MBIA),
5.00%, 11/1/39(1) $ 26,176,983
20,935 Birmingham, AL, Waterworks and Sewer Board, (MBIA),
5.00%, 1/1/37 21,294,454
26,000 East Bay, CA, Municipal Utility District Water System,
(MBIA), 5.00%, 6/1/38 26,350,220
8,500 New York City, NY, Municipal Water Finance Authority,
(Water and Sewer System), (MBIA), 5.125%, 6/15/34 8,746,245
9,500 Palm Coast, FL, Utility System, (MBIA), 5.00%, 10/1/33 9,703,775
15,250 Pittsburgh, PA, Water and Sewer Authority, (FGIC),
0.00%, 9/1/26 4,970,890
2,500 Sunrise Utility System, (AMBAC), 5.00%, 10/1/28 2,588,000
- --------------------------------------------------------------------------------------------------------------
$ 99,830,567
- --------------------------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 2.8%
$ 8,930 Albany, OR, Water, (FGIC), 5.00%, 8/1/33 $ 9,137,533
5,000 Baltimore, MD, (Water Projects), (FGIC), 5.125%, 7/1/42 5,128,850
5,000 Metropolitan Water District, CA, (FGIC), 5.00%, 10/1/33 5,118,300
6,000 Metropolitan Water District, CA, (FGIC), 5.00%, 10/1/36 6,133,080
1,000 Metropolitan Water District, CA, (MBIA), 5.00%, 7/1/37 1,012,360
- --------------------------------------------------------------------------------------------------------------
$ 26,530,123
- --------------------------------------------------------------------------------------------------------------
OTHER REVENUE -- 6.2%
$ 10,000 Capital Trust Agency, FL, (Seminole Tribe Convention),
8.95%, 10/1/33 $ 11,623,100
2,170 Capital Trust Agency, FL, (Seminole Tribe Convention),
10.00%, 10/1/33 2,602,438
32,500 Golden Tobacco Securitization Corp., CA, 5.375%, 6/1/28 33,197,450
11,750 Tobacco Settlement Financing Corp., NJ, 6.75%, 6/1/39 11,301,033
- --------------------------------------------------------------------------------------------------------------
$ 58,724,021
- --------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 8.4%
$ 28,500 Port Authority of New York and New Jersey,
5.00%, 9/1/38 $ 28,966,830
39,960 Puerto Rico Highway and Transportation Authority,
5.125%, 7/1/43 40,616,543
$ 10,000 Triborough Bridge and Tunnel Authority, NY,
5.25%, 11/15/30 $ 10,452,800
- --------------------------------------------------------------------------------------------------------------
$ 80,036,173
- --------------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 161.1%
(IDENTIFIED COST $1,490,568,400) $ 1,535,949,564
- --------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.1% $ 10,074,913
- --------------------------------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (62.2)% $ (592,793,631)
- --------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHARES -- 100.0% $ 953,230,846
- --------------------------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by municipalities. The
ability of the issuers of the debt securities to meet their obligations may be
affected by economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic developments, at
September 30, 2004, 83.6% of the securities in the portfolio of investments are
backed by bond insurance of various financial institutions and financial
guaranty assurance agencies. The aggregate percentage insured by an individual
financial institution ranged from 4.7% to 25.0% 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
9
<Page>
INSURED CALIFORNIA MUNICIPAL BOND FUND as of September 30, 2004
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 161.3%
<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 $ 3,090,420
- --------------------------------------------------------------------------------------------------------------
$ 3,090,420
- --------------------------------------------------------------------------------------------------------------
ESCROWED / PREREFUNDED -- 3.9%
$ 5,110 Foothill/Eastern, Transportation Corridor Agency,
Escrowed to Maturity, 0.00%, 1/1/30 $ 1,382,306
9,175 San Joaquin Hills, Transportation Corridor Agency,
Escrowed to Maturity, 0.00%, 1/1/22 4,023,788
18,100 San Joaquin Hills, Transportation Corridor Agency,
Toll Road Bonds, Escrowed to Maturity, 0.00%, 1/1/25 6,624,600
- --------------------------------------------------------------------------------------------------------------
$ 12,030,694
- --------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 6.8%
$ 6,750 California, 5.25%, 4/1/30 $ 6,941,632
3,250 California, 5.25%, 4/1/34 3,356,275
9,975 California, 5.50%, 11/1/33 10,578,088
- --------------------------------------------------------------------------------------------------------------
$ 20,875,995
- --------------------------------------------------------------------------------------------------------------
HOSPITAL -- 3.0%
$ 2,000 California Health Facilities Financing Authority, (Catholic
Healthcare West), 5.25%, 7/1/23 $ 2,015,020
4,000 Torrance Hospital, (Torrance Memorial Medical Center),
5.50%, 6/1/31 4,134,800
3,005 Washington Township Health Care District, 5.25%, 7/1/29 3,067,203
- --------------------------------------------------------------------------------------------------------------
$ 9,217,023
- --------------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 3.0%
$ 4,000 Sacramento, Municipal Electric Utility District, (FSA),
5.00%, 8/15/28 $ 4,092,560
5,000 Sacramento, Municipal Electric Utility District, (MBIA),
5.00%, 8/15/28 5,112,050
- --------------------------------------------------------------------------------------------------------------
$ 9,204,610
- --------------------------------------------------------------------------------------------------------------
INSURED-ESCROWED / PREREFUNDED -- 1.1%
$ 7,540 Foothill/Eastern, Transportation Corridor Agency, (FSA),
Escrowed to Maturity, 0.00%, 1/1/21 $ 3,524,121
- --------------------------------------------------------------------------------------------------------------
$ 3,524,121
- --------------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 26.9%
$ 2,840 Azusa Unified School District, (FSA), 0.00%, 7/1/25 $ 979,658
2,160 Azusa Unified School District, (FSA), 0.00%, 7/1/26 697,421
$ 3,290 Azusa Unified School District, (FSA), 0.00%, 7/1/27 $ 995,159
6,030 Burbank Unified School District, (FGIC), 0.00%, 8/1/21 2,658,084
1,835 Buttonwillow Union School District, (Election of 2002),
(AMBAC), 5.50%, 11/1/27 2,096,157
2,180 Ceres Unified School District, (FGIC), 0.00%, 8/1/25 748,786
3,000 Chino Valley Unified School District, (FSA),
5.00%, 8/1/26 3,098,250
2,900 Folsom Cordova Unified School District, (MBIA),
0.00%, 10/1/22 1,190,972
1,505 Folsom Cordova Unified School District, (MBIA),
0.00%, 10/1/25 512,543
6,555 Foothill-De Anza Community College District,
(Election of 1999), (FGIC), 0.00%, 8/1/28 1,868,699
8,500 Foothill-De Anza Community College District, (Election
of 1999), (FGIC), 0.00%, 8/1/29 2,293,300
8,865 Foothill-De Anza Community College District, (Election
of 1999), (FGIC), 0.00%, 8/1/30 2,246,214
1,835 Huntington Beach City School District, (FGIC),
0.00%, 8/1/24 668,619
2,060 Huntington Beach City School District, (FGIC),
0.00%, 8/1/25 707,569
2,140 Huntington Beach City School District, (FGIC),
0.00%, 8/1/26 687,989
2,000 Jurupa Unified School District, (FGIC), 0.00%, 8/1/23 776,700
2,000 Jurupa Unified School District, (FGIC), 0.00%, 8/1/26 642,980
2,235 Kings Canyon Joint Unified School District, (FGIC),
0.00%, 8/1/25 767,678
10,000 Los Angeles Unified School District, (Election of 1997),
(MBIA), 5.125%, 1/1/27 10,374,700
3,225 Modesto High School District, Stanislaus County, (FGIC),
0.00%, 8/1/24 1,175,093
9,000 North Orange County Community College District, (MBIA),
5.00%, 2/1/27 9,255,150
5,000 Riverside Unified School District, (FGIC), 5.00%, 2/1/27 5,135,150
6,135 Salinas Union High School District, (MBIA), 5.00%, 6/1/27 6,306,228
1,500 San Diego Unified School District, (FGIC), 0.00%, 7/1/20 706,725
10,000 San Diego Unified School District, (FGIC), 0.00%, 7/1/22 4,157,800
10,000 San Diego Unified School District, (FGIC), 0.00%, 7/1/23 3,899,800
8,000 San Juan Unified School District, (FSA), 0.00%, 8/1/21 3,526,480
5,000 San Mateo County Community College District, (FGIC),
0.00%, 9/1/22 2,061,850
4,365 San Mateo County Community College District, (FGIC),
0.00%, 9/1/23 1,688,076
3,955 San Mateo County Community College District, (FGIC),
0.00%, 9/1/25 1,352,689
5,240 San Mateo Union High School District, (FGIC),
0.00%, 9/1/21 2,300,517
2,740 Santa Ana Unified School District, (MBIA), 5.00%, 8/1/32 2,796,608
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
10
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS (CONTINUED)
$ 3,825 Union Elementary School District, (FGIC),
0.00%, 9/1/24 $ 1,387,787
3,000 Ventura County Community College District, (MBIA),
5.00%, 8/1/27 3,085,050
- --------------------------------------------------------------------------------------------------------------
$ 82,846,481
- --------------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 6.8%
$ 20,860 California Health Facilities Financing Authority,
(Sutter Health), (MBIA), 5.00%, 8/15/38 $ 21,058,170
- --------------------------------------------------------------------------------------------------------------
$ 21,058,170
- --------------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES
OF PARTICIPATION -- 22.7%
$ 2,000 Anaheim, Public Financing Authority Lease Revenue,
(FSA), 0.00%, 9/1/30 $ 496,940
5,000 Anaheim, Public Financing Authority Lease Revenue,
(FSA), 0.00%, 9/1/35 940,300
8,545 Anaheim, Public Financing Authority Lease Revenue,
(FSA), 0.00%, 9/1/29 2,262,203
30,000 Anaheim, Public Financing Authority Lease Revenue,
(FSA), 5.00%, 3/1/37 30,246,000
1,000 California Public Works Board Lease Revenue,
(Department of General Services), (AMBAC),
5.00%, 12/1/27 1,020,430
6,000 Sacramento Financing Authority,
(City Hall Redevelopment), (FSA), 5.00%, 12/1/28 6,118,500
7,805 San Bernardino County Medical Center Financing Project,
(MBIA), 5.00%, 8/1/28 7,878,991
15,000 San Jose Financing Authority, (Civic Center), (AMBAC),
5.00%, 6/1/37 15,173,250
5,850 Shasta Joint Powers Financing Authority,
(County Administration Building), (MBIA),
5.00%, 4/1/29 5,986,247
- --------------------------------------------------------------------------------------------------------------
$ 70,122,861
- --------------------------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 0.5%
$ 1,560 California Educational Facilities Authority,
(St. Mary's College of California), (MBIA),
5.125%, 10/1/26 $ 1,634,459
- --------------------------------------------------------------------------------------------------------------
$ 1,634,459
- --------------------------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 12.7%
$ 1,000 California University, (AMBAC), 5.125%, 11/1/26 $ 1,042,280
22,250 University of California, (FGIC), 5.00%, 9/1/27 22,537,248
15,000 University of California, (FGIC), 5.125%, 9/1/30 15,432,900
- --------------------------------------------------------------------------------------------------------------
$ 39,012,428
- --------------------------------------------------------------------------------------------------------------
INSURED-SEWER REVENUE -- 13.7%
$ 23,115 East Bay Municipal Utility District Water System, (MBIA),
5.00%, 6/1/38 $ 23,403,475
18,350 Livermore-Amador Valley Water Management Agency,
(AMBAC), 5.00%, 8/1/31 18,694,430
- --------------------------------------------------------------------------------------------------------------
$ 42,097,905
- --------------------------------------------------------------------------------------------------------------
INSURED-SPECIAL ASSESSMENT REVENUE -- 1.9%
$ 1,800 Murrieta Redevelopment Agency Tax, (MBIA),
5.00%, 8/1/32 $ 1,829,124
4,045 Santa Clara Valley Transportation Authority, (MBIA),
5.00%, 6/1/26 4,149,604
- --------------------------------------------------------------------------------------------------------------
$ 5,978,728
- --------------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 15.3%
$ 2,500 North City, School Facility Financing Authority,
(AMBAC), 0.00%, 9/1/26 $ 795,125
7,000 Pomona Public Financing Authority, (MBIA),
5.00%, 2/1/33 7,077,140
13,630 San Francisco, Bay Area Rapid Transportation
District Sales Tax Revenue, (AMBAC), 5.00%, 7/1/31 13,882,973
3,500 San Francisco, Bay Area Rapid Transportation District,
(AMBAC), 5.00%, 7/1/26 3,591,455
7,000 San Francisco, Bay Area Rapid Transportation District,
(AMBAC), 5.125%, 7/1/36 7,180,110
2,500 Tustin Unified School District, (FSA), 5.00%, 9/1/32 2,533,825
12,000 Tustin Unified School District, (FSA), 5.00%, 9/1/38 12,128,520
- --------------------------------------------------------------------------------------------------------------
$ 47,189,148
- --------------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 14.7%
$ 15,150 California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/33 $ 15,488,300
7,250 California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (AMBAC), 5.00%, 7/1/36 7,406,673
1,000 California Infrastructure and Economic Development,
(Bay Area Toll Bridges), (FGIC), 5.00%, 7/1/29 1,025,950
13,940 Sacramento County, Airport System, (FSA),
5.00%, 7/1/27 14,212,666
3,445 San Joaquin Hills, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/30 894,081
5,000 San Joaquin Hills, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/31 1,227,150
15,000 San Joaquin Hills, Transportation Corridor Agency,
(MBIA), 0.00%, 1/15/26 4,940,100
- --------------------------------------------------------------------------------------------------------------
$ 45,194,920
- --------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
11
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------------------------
INSURED-UTILITIES -- 7.5%
$ 8,000 Los Angeles Department of Water and Power, (FGIC),
5.00%, 7/1/43 $ 8,061,760
14,750 Los Angeles Department of Water and Power, (MBIA),
5.125%, 7/1/41 14,966,530
- --------------------------------------------------------------------------------------------------------------
$ 23,028,290
- --------------------------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 12.0%
$ 8,180 California Water Resource, (Central Valley), (FGIC),
5.00%, 12/1/29(1) $ 8,380,655
5,500 Contra Costa Water District, (FSA), 4.50%, 10/1/31 5,328,620
7,620 East Bay Municipal Utility District Water System,
(MBIA), 5.00%, 6/1/38 7,722,641
2,000 East Bay Municipal Utility District Water System,
(MBIA), 5.00%, 6/1/26 2,051,720
10,000 Metropolitan Water District, (FGIC), 5.00%, 10/1/36 10,221,800
3,250 San Diego, (Water Utility Fund), (FGIC), 4.75%, 8/1/28 3,254,875
- --------------------------------------------------------------------------------------------------------------
$ 36,960,311
- --------------------------------------------------------------------------------------------------------------
LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 0.9%
$ 2,570 Sacramento Financing Authority, 5.40%, 11/1/20 $ 2,860,179
- --------------------------------------------------------------------------------------------------------------
$ 2,860,179
- --------------------------------------------------------------------------------------------------------------
WATER REVENUE -- 6.9%
$ 21,180 Southern California Metropolitan Water District,
5.00%, 7/1/37 $ 21,402,390
- --------------------------------------------------------------------------------------------------------------
$ 21,402,390
- --------------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 161.3%
(IDENTIFIED COST $485,413,333) $ 497,329,133
- --------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- 1.9% $ 5,954,382
- --------------------------------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (63.2)% $ (195,006,398)
- --------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHARES -- 100.0% $ 308,277,117
- --------------------------------------------------------------------------------------------------------------
</Table>
AMBAC - AMBAC Financial Group, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
The Fund invests primarily in debt securities issued by California
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at September 30, 2004, 86.0% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by an
individual financial institution ranged from 17.4% to 28.8% 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
12
<Page>
INSURED NEW YORK MUNICIPAL BOND FUND as of September 30, 2004
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 163.4%
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES -- 1.8%
$ 2,000 Long Island Power Authority Electric System Revenue,
5.00%, 9/1/27 $ 2,034,760
1,000 New York Power Authority, 5.25%, 11/15/40 1,031,500
1,000 Puerto Rico Electric Power Authority, 5.25%, 7/1/31 1,040,480
- --------------------------------------------------------------------------------------------------------------
$ 4,106,740
- --------------------------------------------------------------------------------------------------------------
GENERAL OBLIGATIONS -- 4.6%
$ 1,500 New York, 5.25%, 1/15/28 $ 1,557,990
3,500 New York City, 5.25%, 8/15/26 3,668,840
3,075 New York City, 5.25%, 6/1/27 3,191,881
2,000 New York City, 5.25%, 1/15/33 2,062,880
- --------------------------------------------------------------------------------------------------------------
$ 10,481,591
- --------------------------------------------------------------------------------------------------------------
HOSPITAL -- 6.3%
$ 1,430 New York Dormitory Authority Revenue,
(Lenox Hill Hospital), 5.50%, 7/1/30 $ 1,475,831
2,500 New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), 5.00%, 7/1/34 2,540,025
10,000 New York Dormitory Authority, (North General Hospital),
5.00%, 2/15/25 10,299,400
- --------------------------------------------------------------------------------------------------------------
$ 14,315,256
- --------------------------------------------------------------------------------------------------------------
INSURED-ELECTRIC UTILITIES -- 5.1%
$ 5,000 Long Island Power Authority Electric System Revenue,
(FSA), 0.00%, 6/1/22 $ 2,236,650
7,500 Long Island Power Authority, (AMBAC), 5.00%, 9/1/34 7,666,950
4,785 Long Island Power Authority, (FSA), 0.00%, 6/1/28 1,496,365
- --------------------------------------------------------------------------------------------------------------
$ 11,399,965
- --------------------------------------------------------------------------------------------------------------
INSURED-GENERAL OBLIGATIONS -- 3.0%
$ 1,750 New York Dormitory Authority, (School Districts
Financing Program), (MBIA), 5.00%, 10/1/30 $ 1,789,952
2,700 Sachem Central School District, Holbrook, (MBIA),
5.00%, 10/15/26 2,798,307
2,085 Sachem Central School District, Holbrook, (MBIA),
5.00%, 10/15/28 2,148,259
- --------------------------------------------------------------------------------------------------------------
$ 6,736,518
- --------------------------------------------------------------------------------------------------------------
INSURED-HOSPITAL -- 22.3%
$ 15,500 New York City Health and Hospital Corp.,
(Health Systems), (AMBAC), 5.00%, 2/15/23 $ 16,183,550
10,600 New York Dormitory Authority, (Hospital Surgery),
(AMBAC), 5.00%, 2/1/38 10,725,398
$ 6,800 New York Dormitory Authority, (Maimonides
Medical Center), (MBIA), 5.00%, 8/1/33 $ 6,966,872
4,000 New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), (MBIA), 0.00%, 7/1/26 1,394,040
23,835 New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), (MBIA), 0.00%, 7/1/28 7,417,929
26,070 New York Dormitory Authority, (Memorial Sloan-Kettering
Cancer Center), (MBIA), 0.00%, 7/1/29 7,687,261
- --------------------------------------------------------------------------------------------------------------
$ 50,375,050
- --------------------------------------------------------------------------------------------------------------
INSURED-LEASE REVENUE / CERTIFICATES
OF PARTICIPATION -- 5.5%
$ 12,000 New York Urban Development Corp.,
(Personal Income Tax), (MBIA), 5.125%, 3/15/27 $ 12,405,240
- --------------------------------------------------------------------------------------------------------------
$ 12,405,240
- --------------------------------------------------------------------------------------------------------------
INSURED-MISCELLANEOUS -- 0.9%
$ 2,000 New York City Cultural Resource, (Wildlife
Conservation Society), (FGIC), 5.00%, 2/1/34 $ 2,049,820
- --------------------------------------------------------------------------------------------------------------
$ 2,049,820
- --------------------------------------------------------------------------------------------------------------
INSURED-OTHER REVENUE -- 2.7%
$ 6,000 New York City Cultural Resource, (American Museum
of Natural History), (MBIA), 5.00%, 7/1/44 $ 6,097,740
- --------------------------------------------------------------------------------------------------------------
$ 6,097,740
- --------------------------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION -- 33.2%
$ 4,000 Madison County, IDA, (Colgate University), (MBIA),
5.00%, 7/1/39 $ 4,075,480
16,500 New York City Industrial Development Agency,
(New York University), (AMBAC), 5.00%, 7/1/41 16,701,465
1,750 New York Dormitory Authority, (Barnard College),
(AMBAC), 4.75%, 7/1/35 1,748,757
11,500 New York Dormitory Authority, (Brooklyn Law School),
(XLCA), 5.125%, 7/1/30 11,867,425
1,300 New York Dormitory Authority, (FIT Student Housing Corp.),
(FGIC), 5.00%, 7/1/29 1,335,776
2,225 New York Dormitory Authority, (FIT Student Housing Corp.),
(FGIC), 5.125%, 7/1/26 2,329,174
1,000 New York Dormitory Authority, (Iona College), (XLCA),
5.125%, 7/1/32 1,029,570
3,000 New York Dormitory Authority, (New York Medical College),
(MBIA), 5.00%, 7/1/21 3,155,430
4,250 New York Dormitory Authority, (New York University),
(AMBAC), 5.00%, 7/1/31 4,331,345
4,500 New York Dormitory Authority, (New York University),
(AMBAC), 5.00%, 7/1/41 4,554,945
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
13
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------------------------
INSURED-PRIVATE EDUCATION (CONTINUED)
$ 3,000 New York Dormitory Authority, (New York University),
(AMBAC), 5.50%, 7/1/40 $ 3,465,420
4,500 New York Dormitory Authority, (New York University),
(MBIA), 4.50%, 7/1/34(1) 4,333,995
13,585 New York Dormitory Authority, (Rochester Institute of
Technology), (AMBAC), 5.25%, 7/1/32 14,194,967
1,820 New York Dormitory Authority, (Rockefeller University),
(MBIA), 4.75%, 7/1/37 1,821,784
- --------------------------------------------------------------------------------------------------------------
$ 74,945,533
- --------------------------------------------------------------------------------------------------------------
INSURED-PUBLIC EDUCATION -- 4.2%
$ 9,500 New York Dormitory Authority, (University Educational
Facility), (MBIA), 4.75%, 5/15/25 $ 9,563,935
- --------------------------------------------------------------------------------------------------------------
$ 9,563,935
- --------------------------------------------------------------------------------------------------------------
INSURED-SOLID WASTE -- 2.5%
$ 1,710 Ulster County Resource Recovery Agency,
Solid Waste System, (AMBAC), 0.00%, 3/1/19 $ 904,607
1,645 Ulster County Resource Recovery Agency,
Solid Waste System, (AMBAC), 0.00%, 3/1/20 821,414
1,790 Ulster County Resource Recovery Agency,
Solid Waste System, (AMBAC), 0.00%, 3/1/21 842,195
1,240 Ulster County Resource Recovery Agency,
Solid Waste System, (AMBAC), 0.00%, 3/1/22 550,634
1,090 Ulster County Resource Recovery Agency,
Solid Waste System, (AMBAC), 0.00%, 3/1/23 456,209
1,490 Ulster County Resource Recovery Agency,
Solid Waste System, (AMBAC), 0.00%, 3/1/24 595,940
3,735 Ulster County Resource Recovery Agency,
Solid Waste System, (AMBAC), 0.00%, 3/1/25 1,399,654
- --------------------------------------------------------------------------------------------------------------
$ 5,570,653
- --------------------------------------------------------------------------------------------------------------
INSURED-SPECIAL TAX REVENUE -- 4.7%
$ 2,000 Metropolitan Transportation Authority,
Petroleum Tax Fund, (FGIC), 5.00%, 11/15/31 $ 2,040,120
7,250 New York City Transitional Finance Authority,
(Future Tax), (MBIA), 5.00%, 5/1/31(2) 7,411,748
1,185 Schenectady Metroplex Development Authority,
(FGIC), 4.50%, 9/15/24 1,181,113
- --------------------------------------------------------------------------------------------------------------
$ 10,632,981
- --------------------------------------------------------------------------------------------------------------
INSURED-TRANSPORTATION -- 40.7%
$ 32,500 Metropolitan Transportation Authority, (FSA),
5.00%, 11/15/30 $ 33,249,775
15,560 Metropolitan Transportation Authority, (FSA),
5.00%, 11/15/32(3) 15,887,227
$ 5,775 Port Authority of New York and New Jersey, (MBIA),
5.125%, 10/15/30 $ 5,906,093
11,500 Puerto Rico Highway and Transportation Authority, (MBIA),
5.00%, 7/1/33 11,831,775
24,600 Triborough Bridge and Tunnel Authority, (MBIA),
5.00%, 11/15/32 25,117,338
- --------------------------------------------------------------------------------------------------------------
$ 91,992,208
- --------------------------------------------------------------------------------------------------------------
INSURED-WATER AND SEWER -- 11.6%
$ 8,000 New York City Municipal Water Finance Authority,
(AMBAC), 5.00%, 6/15/38 $ 8,143,600
10,000 New York City Municipal Water Finance Authority,
Water and Sewer, (MBIA), 5.125%, 6/15/34 10,289,700
7,500 Niagara Falls Public Water Authority and Sewer System,
(MBIA), 5.00%, 7/15/34 7,662,675
- --------------------------------------------------------------------------------------------------------------
$ 26,095,975
- --------------------------------------------------------------------------------------------------------------
INSURED-WATER REVENUE -- 1.0%
$ 1,000 Buffalo Municipal Water Finance Authority, (FSA),
5.125%, 7/1/32 $ 1,029,570
1,200 Upper Mohawk Valley Regional Water Finance Authority,
(FGIC), 4.75%, 4/1/33 1,205,412
- --------------------------------------------------------------------------------------------------------------
$ 2,234,982
- --------------------------------------------------------------------------------------------------------------
LEASE REVENUE / CERTIFICATES OF PARTICIPATION -- 1.8%
$ 4,000 Metropolitan Transportation Authority, Lease Contract,
5.125%, 1/1/29 $ 4,092,120
- --------------------------------------------------------------------------------------------------------------
$ 4,092,120
- --------------------------------------------------------------------------------------------------------------
PRIVATE EDUCATION -- 2.1%
$ 1,630 Madison County Industrial Development Agency,
(Colgate University), 5.00%, 7/1/33 $ 1,657,042
3,065 Rensselaer County Industrial Development Agency,
(Rensselaer Polytech Institute), 5.125%, 8/1/27 3,141,104
- --------------------------------------------------------------------------------------------------------------
$ 4,798,146
- --------------------------------------------------------------------------------------------------------------
SPECIAL TAX REVENUE -- 1.1%
$ 2,500 New York City Transitional Finance Authority,
(Future Tax), 5.00%, 2/1/33 $ 2,539,875
- --------------------------------------------------------------------------------------------------------------
$ 2,539,875
- --------------------------------------------------------------------------------------------------------------
TRANSPORTATION -- 8.3%
$ 14,500 Port Authority of New York and New Jersey,
5.00%, 9/1/38 $ 14,737,510
3,990 Puerto Rico Highway and Transportation Authority,
5.125%, 7/1/43 4,055,556
- --------------------------------------------------------------------------------------------------------------
$ 18,793,066
- --------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
14
<Page>
<Table>
<Caption>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT INVESTMENTS -- 163.4%
(IDENTIFIED COST $357,899,366) $ 369,227,394
- --------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES -- (0.3)% $ (744,094)
- --------------------------------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES PLUS CUMULATIVE
UNPAID DIVIDENDS -- (63.1)% $ (142,511,302)
- --------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHARES -- 100.0% $ 225,971,998
- --------------------------------------------------------------------------------------------------------------
</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
September 30, 2004, 84.0% of the securities in the portfolio of investments are
backed by bond insurance of various financial institutions and financial
guaranty assurance agencies. The aggregate percentage insured by an individual
financial institution ranged from 2.2% to 37.9% of total investments.
(1) When-issued security.
(2) Security (or a portion thereof) has been segregated to cover when-issued
securities.
(3) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
SEE NOTES TO FINANCIAL STATEMENTS
15
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 2004
<Table>
<Caption>
INSURED MUNICIPAL FUND INSURED CALIFORNIA FUND INSURED NEW YORK FUND
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments --
Identified cost $ 1,490,568,400 $ 485,413,333 $ 357,899,366
Unrealized appreciation 45,381,164 11,915,800 11,328,028
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 1,535,949,564 $ 497,329,133 $ 369,227,394
- -------------------------------------------------------------------------------------------------------------------------------
Cash $ -- $ 521,569 $ --
Interest receivable 17,113,365 5,059,914 4,580,597
Receivable for daily variation margin on
open financial futures contracts 1,411,719 459,062 325,000
Prepaid expenses 383,099 -- --
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 1,554,857,747 $ 503,369,678 $ 374,132,991
- -------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for when-issued securities $ -- $ -- $ 4,384,530
Due to bank 8,687,788 -- 1,190,714
Accrued expenses 145,482 86,163 74,447
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 8,833,270 $ 86,163 $ 5,649,691
- -------------------------------------------------------------------------------------------------------------------------------
Auction preferred shares at liquidation
value plus cumulative unpaid dividends 592,793,631 195,006,398 142,511,302
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES $ 953,230,846 $ 308,277,117 $ 225,971,998
- -------------------------------------------------------------------------------------------------------------------------------
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) (5,470,349) (8,328,782) (5,989,971)
Accumulated undistributed net investment
income 6,552,094 1,143,005 646,029
Net unrealized appreciation (computed on
the basis of identified cost) 39,529,483 10,083,576 9,812,134
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES $ 953,230,846 $ 308,277,117 $ 225,971,998
- -------------------------------------------------------------------------------------------------------------------------------
AUCTION PREFERRED SHARES ISSUED AND OUTSTANDING
(LIQUIDATION PREFERENCE OF $25,000 PER SHARE)
23,700 7,800 5,700
- -------------------------------------------------------------------------------------------------------------------------------
COMMON SHARES OUTSTANDING
64,606,667 21,628,202 15,698,145
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER COMMON SHARE
NET ASSETS APPLICABLE TO COMMON SHARES
DIVIDED BY COMMON SHARES ISSUED AND
OUTSTANDING $ 14.75 $ 14.25 $ 14.39
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
16
<Page>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2004
<Table>
<Caption>
INSURED MUNICIPAL FUND INSURED CALIFORNIA FUND INSURED NEW YORK FUND
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 77,300,119 $ 24,913,526 $ 17,909,678
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 77,300,119 $ 24,913,526 $ 17,909,678
- -------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee $ 9,992,611 $ 3,275,789 $ 2,388,716
Trustees' fees and expenses 21,457 15,949 12,278
Legal and accounting services 78,414 68,738 56,393
Printing and postage 136,277 26,028 17,508
Custodian fee 323,374 200,864 160,944
Transfer and dividend disbursing agent 92,101 70,069 72,876
Preferred shares remarketing agent fee 1,485,323 488,837 352,250
Miscellaneous 80,301 46,872 40,466
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 12,209,858 $ 4,193,146 $ 3,101,431
- -------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 37,835 $ 7,752 $ 9,796
Reduction of investment adviser fee 4,919,439 1,612,696 1,175,983
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 4,957,274 $ 1,620,448 $ 1,185,779
- -------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 7,252,584 $ 2,572,698 $ 1,915,652
- -------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 70,047,535 $ 22,340,828 $ 15,994,026
- -------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 18,060,946 $ 1,104,099 $ 605,658
Financial futures contracts (26,795,836) (8,849,356) (6,041,679)
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (8,734,890) $ (7,745,257) $ (5,436,021)
- -------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 7,518,236 $ 6,473,722 $ 4,399,078
Financial futures contracts 4,215,843 1,826,112 (724,316)
- -------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 11,734,079 $ 8,299,834 $ 3,674,762
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) $ 2,999,189 $ 554,577 $ (1,761,259)
- -------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS FROM NET
INVESTMENT INCOME $ (7,059,224) $ (1,809,028) $ (1,398,712)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 65,987,500 $ 21,086,377 $ 12,834,055
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
17
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 2004
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS INSURED MUNICIPAL FUND INSURED CALIFORNIA FUND INSURED NEW YORK FUND
- -------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 70,047,535 $ 22,340,828 $ 15,994,026
Net realized loss from investment and financial
futures contracts transactions (8,734,890) (7,745,257) (5,436,021)
Net change in unrealized appreciation
(depreciation) from investments and
financial futures contracts 11,734,079 8,299,834 3,674,762
Distributions to preferred shareholders from
net investment income (7,059,224) (1,809,028) (1,398,712)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 65,987,500 $ 21,086,377 $ 12,834,055
- -------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareholders --
From net investment income $ (60,568,755) $ (19,465,383) $ (14,128,331)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ 5,418,745 $ 1,620,994 $ (1,294,276)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHARES
At beginning of year $ 947,812,101 $ 306,656,123 $ 227,266,274
- -------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 953,230,846 $ 308,277,117 $ 225,971,998
- -------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME INCLUDED IN
NET ASSETS APPLICABLE TO COMMON SHARES
AT END OF YEAR $ 6,552,094 $ 1,143,005 $ 646,029
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
18
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 2003
<Table>
<Caption>
INCREASE (DECREASE) IN NET ASSETS INSURED MUNICIPAL FUND INSURED CALIFORNIA FUND INSURED NEW YORK FUND
- -------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 67,196,099 $ 21,454,620 $ 15,371,205
Net realized gain (loss) from investment and
financial futures contracts transactions 2,343,382 (1,436,089) (614,965)
Net change in unrealized appreciation
(depreciation) from investments and
financial futures contracts (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(1) $ 21,487,500 $ 7,377,375 $ 6,159,750
Reinvestment of distributions to common
shareholders -- 89,787 502,907
Offering costs and preferred shares
underwriting discounts (12,311,002) (4,134,934) (3,053,056)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CAPITAL
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
19
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2004
FINANCIAL STATEMENTS
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
<Table>
<Caption>
INSURED MUNICIPAL FUND
--------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------
2004(1) 2003(1) 2002(1)(2)
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year (Common shares) $ 14.670 $ 14.810 $ 14.325(3)
- --------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 1.084 $ 1.041 $ 0.040
Net realized and unrealized gain 0.043 0.009 0.454
Distributions to preferred shareholders from net investment income (0.109) (0.091) --
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 1.018 $ 0.959 $ 0.494
- --------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.938) $ (0.908) $ --
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.938) $ (0.908) $ --
- --------------------------------------------------------------------------------------------------------------------
PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ (0.007) $ (0.009)
- --------------------------------------------------------------------------------------------------------------------
PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ (0.184) $ --
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 14.750 $ 14.670 $ 14.810
- --------------------------------------------------------------------------------------------------------------------
MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 13.950 $ 13.580 $ 15.000
- --------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON NET ASSET VALUE(5) 7.58% 5.67% 3.39%(4)
- --------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON MARKET VALUE(5) 9.91% (3.42)% 4.71%(4)
- --------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
20
<Page>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
<Table>
<Caption>
INSURED MUNICIPAL FUND
------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------
2004(1) 2003(1) 2002(1)(2)
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of year (000's omitted) $ 953,231 $ 947,812 $ 934,619
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(6) 0.77% 0.75% 0.48%(7)
Net expenses after custodian fee reduction(6) 0.77% 0.73% 0.46%(7)
Net investment income(6) 7.41% 7.20% 3.20%(7)
Portfolio Turnover 37% 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% 1.26% 0.80%(7)
Expenses after custodian fee reduction(6) 1.29% 1.24% 0.78%(7)
Net investment income(6) 6.89% 6.69% 2.88%(7)
Net investment income per share $ 1.008 $ 0.967 $ 0.036
++ The ratios reported above are based on net assets applicable solely to common
shares. The ratios based on net assets, including amounts related to
preferred shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses 0.47% 0.47%
Net expenses after custodian fee reduction 0.47% 0.46%
Net investment income 4.56% 4.54%
+ 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 0.79% 0.79%
Expenses after custodian fee reduction 0.79% 0.78%
Net investment income 4.24% 4.22%
Senior Securities:
Total preferred shares outstanding 23,700 23,700
Asset coverage per preferred share(8) $ 65,233 $ 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
21
<Page>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
<Table>
<Caption>
INSURED CALIFORNIA FUND
--------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------
2004(1) 2003(1) 2002(1)(2)
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year (Common shares) $ 14.180 $ 14.760 $ 14.325(3)
- --------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 1.033 $ 0.993 $ 0.031
Net realized and unrealized gain (loss) 0.021 (0.402) 0.420
Distributions to preferred shareholders from net investment income (0.084) (0.078) --
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.970 $ 0.513 $ 0.451
- --------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.900) $ (0.901) $ --
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.900) $ (0.901) $ --
- --------------------------------------------------------------------------------------------------------------------
PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ (0.011) $ (0.016)
- --------------------------------------------------------------------------------------------------------------------
PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ (0.181) $ --
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 14.250 $ 14.180 $ 14.760
- --------------------------------------------------------------------------------------------------------------------
MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 13.730 $ 13.410 $ 15.000
- --------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON NET ASSET VALUE(5) 7.34% 2.58% 3.04%(4)
- --------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON MARKET VALUE(5) 9.36% (4.54)% 4.71%(4)
- --------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
22
<Page>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
<Table>
<Caption>
INSURED CALIFORNIA FUND
------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------
2004(1) 2003(1) 2002(1)(2)
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of year (000's omitted) $ 308,277 $ 306,656 $ 311,634
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(6) 0.83% 0.80% 0.61%(7)
Net expenses after custodian fee reduction(6) 0.83% 0.77% 0.59%(7)
Net investment income(6) 7.23% 7.02% 2.54%(7)
Portfolio Turnover 24% 38% 0%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee. Had such action not been taken, the ratios and net
investment income per share would have been as follows:
Ratios (As a percentage of average net assets applicable to common shares):
Expenses(6) 1.36% 1.31% 0.93%(7)
Expenses after custodian fee reduction(6) 1.36% 1.28% 0.91%(7)
Net investment income(6) 6.71% 6.51% 2.22%(7)
Net investment income per share $ 0.959 $ 0.921 $ 0.027
++ The ratios reported above are based on net assets applicable solely to
common shares. The ratios based on net assets, including amounts related
to preferred shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses 0.51% 0.50%
Net expenses after custodian fee reduction 0.51% 0.48%
Net investment income 4.43% 4.42%
* The operating expenses of the Fund reflect a reduction of the investment
adviser fee. Had such action not been taken, the ratios would have been
as follows:
Ratios (As a percentage of average total net assets):
Expenses 0.83% 0.82%
Expenses after custodian fee reduction 0.83% 0.80%
Net investment income 4.11% 4.10%
Senior Securities:
Total preferred shares outstanding 7,800 7,800
Asset coverage per preferred share(8) $ 64,524 $ 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
23
<Page>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
<Table>
<Caption>
INSURED NEW YORK FUND
------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------
2004(1) 2003(1) 2002(1)(2)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of year (Common shares) $ 14.480 $ 14.690 $ 14.325(3)
- ------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Net investment income $ 1.019 $ 0.981 $ 0.028
Net realized and unrealized gain (loss) (0.120) (0.006)* 0.358
Distributions to preferred shareholders from net investment income (0.089) (0.090) --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.810 $ 0.885 $ 0.386
- ------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income $ (0.900) $ (0.900) $ --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO COMMON SHAREHOLDERS $ (0.900) $ (0.900) $ --
- ------------------------------------------------------------------------------------------------------------------------
PREFERRED AND COMMON SHARES OFFERING COSTS CHARGED TO PAID-IN CAPITAL $ -- $ (0.013) $ (0.021)
- ------------------------------------------------------------------------------------------------------------------------
PREFERRED SHARES UNDERWRITING DISCOUNTS $ -- $ (0.182) $ --
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR (COMMON SHARES) $ 14.390 $ 14.480 $ 14.690
- ------------------------------------------------------------------------------------------------------------------------
MARKET VALUE -- END OF YEAR (COMMON SHARES) $ 13.860 $ 13.450 $ 15.060
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON NET ASSET VALUE(5) 6.10% 5.09% 2.55%(4)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN ON MARKET VALUE(5) 10.02% (4.78)% 5.13%(4)
- ------------------------------------------------------------------------------------------------------------------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
24
<Page>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING DURING THE PERIODS STATED
<Table>
<Caption>
INSURED NEW YORK FUND
------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------
2004(1) 2003(1) 2002(1)(2)
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA+ ++
Net assets applicable to common shares, end of year (000's omitted) $ 225,972 $ 227,266 $ 223,739
Ratios (As a percentage of average net assets applicable to common shares):
Net expenses(6) 0.86% 0.83% 0.71%(7)
Net expenses after custodian fee reduction(6) 0.85% 0.79% 0.68%(7)
Net investment income(6) 7.11% 6.83% 2.26%(7)
Portfolio Turnover 33% 64% 8%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee. Had such action not been taken, the ratios and net
investment income per share would have been as follows:
Ratios (As a percentage of average net assets applicable to common shares):
Expenses(6) 1.38% 1.34% 1.03%(7)
Expenses after custodian fee reduction(6) 1.37% 1.30% 1.00%(7)
Net investment income(6) 6.59% 6.33% 1.94%(7)
Net investment income per share $ 0.944 $ 0.909 $ 0.024
++ The ratios reported are based on net assets applicable solely to common
shares. The ratios based on net assets, including amounts related to
preferred shares, are as follows:
Ratios (As a percentage of average total net assets):
Net expenses 0.52% 0.52%
Net expenses after custodian fee reduction 0.52% 0.50%
Net investment income 4.35% 4.31%
+ The operating expenses of the Fund reflect a reduction of the investment
adviser fee. Had such action not been taken, the ratios would have been
as follows:
Ratios (As a percentage of average total net assets):
Expenses 0.84% 0.84%
Expenses after custodian fee reduction 0.84% 0.82%
Net investment income 4.03% 3.99%
Senior Securities:
Total preferred shares outstanding 5,700 5,700
Asset coverage per preferred share(8) $ 64,646 $ 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
25
<Page>
EATON VANCE INSURED MUNICIPAL FUNDS as of September 30, 2004
NOTES TO FINANCIAL STATEMENTS
1 SIGNIFICANT ACCOUNTING POLICIES
Eaton Vance Insured Municipal Bond Fund (Insured Municipal Fund), Eaton Vance
Insured California Municipal Bond Fund (Insured California Fund), and Eaton
Vance Insured New York Municipal Bond Fund (Insured New York Fund),
(individually referred to as the Fund or collectively the Funds) are
registered under the Investment Company Act of 1940 (the 1940 Act), as
amended, as non-diversified, closed-end management investment companies. The
Insured Municipal Fund was organized under the laws of the Commonwealth of
Massachusetts by an Agreement and Declaration of Trust dated July 2, 2002.
The Insured California Fund and the Insured New York Fund were organized
under the laws of the Commonwealth of Massachusetts by an Agreement and
Declaration of Trust dated July 8, 2002. Each Fund's investment objective is
to achieve current income exempt from regular federal income tax, including
alternative minimum tax, and taxes in its specified state. Each Fund seeks to
achieve its objective by investing primarily in high grade municipal
obligations that are insured as to the timely payment of principal and
interest.
The following is a summary of significant accounting policies consistently
followed by each Fund in the preparation of its financial statements. The
policies are in conformity with accounting principles generally accepted in
the United States of America.
A INVESTMENT VALUATION -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the bid and asked prices. Futures contracts and options on futures
contracts listed on the commodity exchanges are valued at closing settlement
prices. Over-the-counter options on futures contracts are normally valued at
the mean between the latest bid and asked prices. Interest rate swaps are
normally valued on the basis of valuations furnished by a 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 not readily available 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,
2004, 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 Fund $ 1,072,880 September 30, 2011
Insured California Fund 557,635 September 30, 2011
Insured New York Fund 1,251,495 September 30, 2011
1,166,633 September 30, 2012
</Table>
Additionally, at September 30, 2004, Insured Municipal Fund, Insured
California Fund and Insured New York Fund had net capital losses of
$10,957,039, $10,115,483 and $5,122,077, respectively, attributable to
security transactions incurred after October 31, 2003. These are treated as
arising on the first day of each Fund's taxable year ending September 30,
2005.
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.
26
<Page>
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
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 OPTIONS ON FUTURES CONTRACTS -- Upon the purchase of a put option on a
financial futures contract by a Fund, the premium paid is recorded as an
investment, the value of which is marked-to-market daily. When a purchased
option expires, a Fund will realize a loss in the amount of the cost of the
option. When a Fund enters into a closing sale transaction, a Fund will
realize a gain or loss depending on whether the sales proceeds from the
closing sale transaction are greater or less than the cost of the option.
When a Fund exercises a put option, settlement is made in cash. The risk
associated with purchasing put options is limited to the premium originally
paid.
H USE OF ESTIMATES -- The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expense during the
reporting period. Actual results could differ from those estimates.
I INDEMNIFICATIONS -- Under each Fund's organizational documents, its
officers and Trustees may be indemnified against certain liabilities and
expenses arising out of the performance of their duties to each Fund and
shareholders are indemnified against personal liability for the obligations
of each Fund. Additionally, in the normal course of business, each Fund
enters into agreements with service providers that may contain
indemnification clauses. Each Fund's maximum exposure under these
arrangements is unknown as this would involve future claims that may be made
against each Fund that have not yet occurred.
J EXPENSE REDUCTION -- Investors Bank & Trust Company (IBT) serves as
custodian of the Funds. Pursuant to the respective custodian agreements, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances each Fund maintains with IBT. All credit balances used to
reduce the Funds' custodian fees are reported as a reduction of total
expenses in the Statement of Operations.
2 AUCTION PREFERRED SHARES (APS)
Each Fund issued Auction Preferred Shares on October 29, 2002 in a public
offering. The underwriting discounts and other offering costs were recorded
as a reduction of the capital of the common shares of each Fund. Dividends on
the APS, which accrue daily, are cumulative at a rate which was established
at the offering of each Fund's APS and generally have been reset every seven
days thereafter by an auction, unless a special dividend period has been set.
Special dividend periods are currently in effect on the following series:
<Table>
<Caption>
DIVIDEND
EFFECTIVE PERIOD DIVIDEND MATURITY
FUND DATE (DAYS) RATE DATE
-----------------------------------------------------------------------------
Insured Municipal
Series B March 3, 2004 364 1.068% March 1, 2005
Insured Municipal
Series C August 6, 2003 728 1.70% August 3, 2005
</Table>
Insured Municipal Fund Series B and Series C will pay each series'
accumulated dividends on the first business day of each month. Each series
within a Fund is identical in all respects to the other(s), except for the
dates of reset for the dividend rates.
Auction Preferred Shares issued and outstanding as of September 30, 2004 and
dividend rate ranges for the year ended September 30, 2004 are as indicated
below:
<Table>
<Caption>
PREFERRED SHARES DIVIDENDS RATE
FUND ISSUED AND OUTSTANDING RANGES
-----------------------------------------------------------------------
Insured Municipal Series A 4,740 0.75% - 1.36%
Insured Municipal Series B 4,740 1.068% - 1.18%
Insured Municipal Series C 4,740 1.70%
Insured Municipal Series D 4,740 1.10% - 1.41%
Insured Municipal Series E 4,740 0.74% - 1.35%
</Table>
27
<Page>
<Table>
<Caption>
PREFERRED SHARES DIVIDENDS RATE
FUND ISSUED AND OUTSTANDING RANGES
-----------------------------------------------------------------------
Insured California Series A 3,900 0.60% - 1.23%
Insured California Series B 3,900 0.50% - 1.31%
Insured New York Series A 2,850 1.05% - 1.46%
Insured New York Series B 2,850 0.45% - 1.41%
</Table>
The APS are redeemable at the option of each Fund at a redemption price equal
to $25,000 per share, plus accumulated and unpaid dividends on any dividend
payment date. The APS are also subject to mandatory redemption at a
redemption price equal to $25,000 per share, plus accumulated and unpaid
dividends, if any Fund is in default for an extended period on its asset
maintenance requirements with respect to the APS. If the dividends on the APS
shall remain unpaid in an amount equal to two full years' dividends, the
holders of the APS as a class have the right to elect a majority of the Board
of Trustees. In general, the holders of the APS and the Common Shares have
equal voting rights of one vote per share, except that the holders of the
APS, as a separate class, have the right to elect at least two members of the
Board of Trustees. The APS have a liquidation preference of $25,000 per
share, plus accumulated and unpaid dividends. Each Fund is required to
maintain certain asset coverage with respect to the APS as defined in each
Fund's By-Laws and the Investment Company Act of 1940. Each Fund pays an
annual fee equivalent to 0.25% of the preferred shares liquidation value for
the remarketing efforts associated with the preferred auction.
3 DISTRIBUTIONS TO SHAREHOLDERS
Each Fund intends to make monthly distributions of net investment income,
after payments of any dividends on any outstanding APS. Distributions are
recorded on the ex-dividend date. Distributions of realized capital gains, if
any, are made at least annually. Distributions to preferred shareholders are
recorded daily and are payable at the end of each dividend period. Each
dividend payment period for the APS is generally seven days. Insured
Municipal Fund Series B shares set a special dividend period of 364 days
effective March 3, 2004. Insured Municipal Fund Series C shares set a special
dividend period of 728 days effective August 6, 2003. Insured Municipal Fund
Series B and Series C will pay each Series' accumulated dividends on the
first business day of each month. The applicable dividend rate for APS on
September 30, 2004 are listed below. For the year ended September 30, 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 AVERAGE
SHAREHOLDERS APS
APS FROM NET INVESTMENT DIVIDEND
DIVIDEND RATES INCOME FOR RATES FOR
AS OF THE YEAR ENDED THE YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
FUND 2004 2004 2004
--------------------------------------------------------------------------------------
Insured Municipal Fund
Series A 1.36% 1,151,269 0.97%
Insured Municipal Fund
Series B 1.068% 1,325,430 1.12%
Insured Municipal Fund
Series C 1.70% 2,048,249 1.70%
Insured Municipal Fund
Series D 1.41% 1,382,410 1.18%
Insured Municipal Fund
Series E 1.35% 1,151,866 0.97%
Insured California Fund
Series A 1.20% 894,038 0.92%
Insured California Fund
Series B 1.31% 914,990 0.94%
Insured New York
Series A 1.46% 767,676 1.08%
Insured New York
Series B 1.41% 631,036 0.89%
</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 difference in method for accreting market discount and
amortizing premiums.
28
<Page>
The tax character of distributions paid for the years ended September 30,
2004 and September 30, 2003 was as follows:
<Table>
<Caption>
INSURED INSURED INSURED
MUNICIPAL CALIFORNIA NEW YORK
YEAR ENDED 9/30/04 FUND FUND FUND
----------------------------------------------------------------------------
Distributions declared from:
Tax-exempt income $ 67,627,979 $ 21,274,411 $ 15,527,043
<Caption>
YEAR ENDED 9/30/03
----------------------------------------------------------------------------
Distributions declared from:
Tax-exempt income $ 64,501,993 $ 21,149,887 $ 15,521,068
</Table>
During the year ended September 30, 2004, the following amounts were
reclassified due to differences between book and tax accounting for
amortization and accretion on debt securities, market discount on disposal of
securities, and capital losses:
<Table>
<Caption>
INSURED INSURED INSURED
MUNICIPAL CALIFORNIA NEW YORK
FUND FUND FUND
----------------------------------------------------------------------------
Increase (decrease):
Paid in capital -- -- --
Accumulated net realized
gain/(loss) on investments $ 453,626 $ 346,413 $ 33,096
Accumulated
undistributed income $ (453,626) $ (346,413) $ (33,096)
</Table>
These changes had no effect on the net assets or net asset value per share of
the Funds.
As of September 30, 2004, the components of distributable earnings
(accumulated losses) on a tax basis were as follows:
<Table>
<Caption>
INSURED INSURED INSURED
MUNICIPAL CALIFORNIA NEW YORK
FUND FUND FUND
----------------------------------------------------------------------------
Undistributed income $ 6,845,726 $ 1,143,005 $ 657,331
Capital loss carryforward $ (1,072,880) $ (557,635) $ (2,418,128)
Unrealized gain $ 40,237,372 $ 10,595,688 $ 9,846,474
Other temporary differences $ (5,398,990) $ (8,283,259) $ (3,617,485)
</Table>
4 INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee, computed at an annual rate of 0.65% of each
Fund's average weekly gross assets, was earned by Eaton Vance Management
(EVM) as compensation for investment advisory services rendered to each Fund.
Except for Trustees of each Fund who are not members of EVM's organization,
officers and Trustees receive remuneration for their services to each Fund
out of such investment adviser fee. For the year ended September 30, 2004,
the fee was equivalent to 0.65% of each Fund's average weekly gross assets
and amounted to $9,992,611, $3,275,789, and $2,388,716 for Insured Municipal
Fund, Insured California Fund and Insured New York Fund, respectively. EVM
also serves as the administrator of the Funds, but currently receives no
compensation.
In addition, EVM has contractually agreed to reimburse the Fund for fees and
other expenses in the amount of 0.32% of average weekly gross assets of each
Fund during the first five full years of each Fund's operations, 0.24% of
average weekly gross assets of each Fund in year six, 0.16% in year seven and
0.08% in year eight. For the year ended September 30, 2004, EVM contractually
waived $4,919,439, $1,612,696 and $1,175,983 of its advisory fee for Insured
Municipal Fund, Insured California Fund and Insured New York Fund,
respectively
Certain officers and one Trustee of each Fund are officers of the above
organization.
5 INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, for the year ended September 30, 2004 were as
follows:
<Table>
INSURED MUNICIPAL FUND
Purchases $ 564,267,165
Sales 605,385,504
INSURED CALIFORNIA FUND
Purchases $ 119,816,322
Sales 134,773,927
INSURED NEW YORK FUND
Purchases $ 119,653,242
Sales 120,761,834
</Table>
29
<Page>
6 FEDERAL INCOME TAX BASIS OF UNREALIZED
APPRECIATION (DEPRECIATION)
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Fund at September 30, 2004, as computed for Federal
income tax purposes, were as follows:
<Table>
INSURED MUNICIPAL FUND
AGGREGATE COST $ 1,489,860,511
------------------------------------------------------------------------
Gross unrealized appreciation $ 48,320,862
Gross unrealized depreciation (2,231,809)
------------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 46,089,053
------------------------------------------------------------------------
INSURED CALIFORNIA FUND
AGGREGATE COST $ 484,901,221
------------------------------------------------------------------------
Gross unrealized appreciation $ 12,861,583
Gross unrealized depreciation (433,671)
------------------------------------------------------------------------
Net unrealized appreciation $ 12,427,912
------------------------------------------------------------------------
INSURED NEW YORK FUND
AGGREGATE COST $ 357,865,026
------------------------------------------------------------------------
Gross unrealized appreciation $ 11,449,094
Gross unrealized depreciation (86,726)
------------------------------------------------------------------------
Net unrealized appreciation $ 11,362,368
------------------------------------------------------------------------
</Table>
7 SHARES OF BENEFICIAL INTEREST
Each Declaration of Trust permits the Trustees to issue an unlimited number
of full and fractional $0.01 par value common shares. Transactions in Fund
shares were as follows:
<Table>
<Caption>
INSURED MUNICIPAL FUND
----------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------
2004 2003
------------------------------------------------------------------------
Sales -- 1,500,000
------------------------------------------------------------------------
NET INCREASE -- 1,500,000
------------------------------------------------------------------------
<Caption>
INSURED CALIFORNIA FUND
----------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------
2004 2003
------------------------------------------------------------------------
Sales -- 515,000
Shares issued pursuant to
the Fund's dividend
reinvestment plan -- 6,535
------------------------------------------------------------------------
NET INCREASE 521,535
------------------------------------------------------------------------
<Caption>
INSURED NEW YORK FUND
----------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------
2004 2003
------------------------------------------------------------------------
Sales -- 430,000
Shares issued pursuant to
the Fund's dividend
reinvestment plan -- 36,478
------------------------------------------------------------------------
Net increase -- 466,478
------------------------------------------------------------------------
</Table>
8 FINANCIAL INSTRUMENTS
Each Fund may trade in financial instruments with off-balance sheet risk in
the normal course of its investing activities to assist in managing exposure
to various market risks. These financial instruments include futures
contracts and may involve, to a varying degree, elements of risk in excess of
the amounts recognized for financial statement purposes. The notional or
contractual amounts of these instruments represent the investment each Fund
has in particular classes of financial instruments and does not necessarily
represent the amounts potentially subject to risk. The measurement of the
risks associated with these instruments is meaningful only when all related
and offsetting transactions are considered.
A summary of obligations under these financial instruments at September 30,
2004 is as follows:
FUTURES CONTRACTS
<Table>
<Caption>
EXPIRATION AGGREGATE NET UNREALIZED
FUND DATE CONTRACTS POSITION COST VALUE DEPRECIATION
--------------------------------------------------------------------------------------------------------
Insured 3,475
Municipal 12/04 U.S. Treasury Bond Short $ (384,108,475) $ (389,960,156) $ (5,851,681)
--------------------------------------------------------------------------------------------------------
Insured 1,130
California 12/04 U.S. Treasury Bond Short $ (124,974,963) $ (126,807,187) $ (1,832,224)
--------------------------------------------------------------------------------------------------------
Insured 800
New York 12/04 U.S. Treasury Bond Short $ (88,259,106) $ (89,775,000) $ (1,515,894)
--------------------------------------------------------------------------------------------------------
</Table>
At September 30, 2004, each Fund had sufficient cash and/or securities to
cover margin requirements on open futures contracts.
9 OVERDRAFT ADVANCES
Pursuant to the custodian agreement between the Funds and Investors Bank &
Trust (the Bank), the Bank may in its discretion advance funds to the Funds
to make properly authorized payments. When such payments result in an
overdraft by the Funds, the Funds are obligated to repay the Bank at the
current rate of interest charged by the
30
<Page>
Bank for secured loans (currently, a rate above the federal funds rate). This
obligation is payable on demand to the Bank. At September 30, 2004, the
Insured Municipal Bond Fund and Insured New York Fund had payments due to the
Bank pursuant to the foregoing arrangement of $8,687,788 and $1,190,714,
respectively.
10 ANNUAL MEETING OF SHAREHOLDERS (UNAUDITED)
Each Fund held its Annual Meeting of Shareholders on July 23, 2004. The
following action was taken by the shareholders of each Fund:
ITEM 1: The election of James B. Hawkes and Samuel L. Hayes, III as Class II
Trustees of each Fund for a three-year term expiring in 2007.
Mr. Hayes was designated the Nominee to be elected solely by APS
shareholders:
<Table>
<Caption>
NOMINEE FOR NOMINEE FOR
CLASS II TRUSTEE CLASS II TRUSTEE
ELECTED BY APS ELECTED BY ALL
SHAREHOLDERS: SHAREHOLDERS
FUND SAMUEL L. HAYES, III JAMES B. HAWKES
----------------------------------------------------------------
Insured California Fund
----------------------------------------------------------------
For 7,275 21,264,582
Withheld 5 178,060
----------------------------------------------------------------
Insured Municipal Fund
----------------------------------------------------------------
For 20,343 62,709,043
Withheld 37 734,711
----------------------------------------------------------------
Insured New York Fund
----------------------------------------------------------------
For 4,880 15,211,694
Withheld 8 156,829
----------------------------------------------------------------
</Table>
31
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2004
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE TRUSTEES AND SHAREHOLDERS OF EATON VANCE INSURED MUNICIPAL BOND FUND,
EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND AND EATON VANCE INSURED NEW
YORK MUNICIPALS BOND FUND:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Eaton Vance Insured Municipal Bond Fund, Eaton
Vance Insured California Municipal Bond Fund, and Eaton Vance Insured New York
Municipal Bond Fund ("the Funds") as of September 30, 2004, and the related
statements of operations for the year then ended, the statements of changes in
net assets for the years ended September 30, 2004 and 2003 and the financial
highlights for the years ended September 30, 2004 and 2003 and the period from
the start of business, August 30, 2002 to September 30, 2002. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. Our
procedures included confirmation of securities held as of September 30, 2004 by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights, referred to
above, present fairly, in all material respects, the financial position of Eaton
Vance Insured Municipal Bond Fund, Eaton Vance Insured California Municipal Bond
Fund, and Eaton Vance Insured New York Municipal Bond Fund at September 30,
2004, the results of their operations for the year then ended, the changes in
their net assets for the years ended September 30, 2004 and 2003, and their
financial highlights for the years ended September 30, 2004 and 2003 and the
period from the start of business, August 30, 2002 to September 30, 2002, in
conformity with accounting principles generally accepted in the United States of
America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 17, 2004
32
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS as of September 30, 2004
FEDERAL TAX INFORMATION (Unaudited)
The Form 1099-DIV you receive in January 2005 will show the tax status of all
distributions paid to your account in calendar 2004. Shareholders are advised to
consult their own tax adviser with respect to the tax consequences of their
investment in the Funds. As required by the Internal Revenue Code regulations,
shareholders must be notified within 60 days of the Funds' fiscal year end
regarding exempt-interest dividends.
EXEMPT-INTEREST DIVIDENDS -- The Funds designate the following amounts of
dividends from net investment income as an exempt-interest dividend.
<Table>
Insured Municipal Bond Fund 100.00%
Insured California Municipal Bond Fund 100.00%
Insured New York Municipal Bond Fund 100.00%
</Table>
33
<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.
34
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS
APPLICATION FOR PARTICIPATION IN DIVIDEND REINVESTMENT PLAN
This form is for shareholders who hold their common shares in their own names.
If your common shares are held in the name of a brokerage firm, bank, or other
nominee, you should contact your nominee to see if it will participate in the
Plan on your behalf. If you wish to participate in the Plan, but your brokerage
firm, bank, or nominee is unable to participate on your behalf, you should
request that your common shares be re-registered in your own name which will
enable your participation in the Plan.
The following authorization and appointment is given with the understanding that
I may terminate it at any time by terminating my participation in the Plan as
provided in the terms and conditions of the Plan.
----------------------------------------
Please print exact name on account
----------------------------------------
Shareholder signature Date
----------------------------------------
Shareholder signature Date
Please sign exactly as your common
shares are registered. All persons whose
names appear on the share certificate
must sign.
YOU SHOULD NOT RETURN THIS FORM IF YOU WISH TO RECEIVE YOUR DIVIDENDS AND
DISTRIBUTIONS IN CASH. THIS IS NOT A PROXY.
THIS AUTHORIZATION FORM, WHEN SIGNED, SHOULD BE MAILED TO THE FOLLOWING ADDRESS:
Eaton Vance Insured Municipal Bond Funds
c/o PFPC Inc.
P.O. Box 43027
Providence, RI 02940-3027
800-331-1710
NUMBER OF EMPLOYEES
Each Fund is organized as a Massachusetts business trust and is registered under
the Investment Company Act of 1940, as amended, as a closed-end, nondiversified,
management investment company and has no employees.
NUMBER OF SHAREHOLDERS
As of September 30, 2004, our records indicate that there are 394, 93 and 83
registered shareholders for Insured Municipal Fund, Insured California Fund and
Insured New York Fund, respectively, and approximately 32,400, 8,900 and 8,000
shareholders owning the Fund shares in street name, such as through brokers,
banks, and financial intermediaries for Insured Municipal Fund, Insured
California Fund and Insured New York Fund, respectively.
If you are a street name shareholder and wish to receive Fund reports directly,
which contain important information about a Fund, please write or call:
Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
1-800-225-6265
AMERICAN STOCK EXCHANGE SYMBOLS
<Table>
Insured Municipal Fund EIM
Insured California Fund EVM
Insured New York Fund ENX
</Table>
35
<Page>
EATON VANCE INSURED MUNICIPAL BOND FUNDS
MANAGEMENT AND ORGANIZATION
FUND MANAGEMENT. The Trustees and officers of Eaton Vance Insured Municipal Bond
Fund (IMF), Eaton Vance Insured California Municipal Bond Fund (ICA), and Eaton
Vance Insured New York Municipal Bond Fund (INY), (the Funds) are listed below.
Except as indicated, each individual has held the office shown or other offices
in the same company for the last five years. The "noninterested Trustees"
consist of those Trustees who are not "interested persons" of the Funds, as that
term is defined under the 1940 Act. The business address of each Trustee and
officer is The Eaton Vance Building, 255 State Street, Boston, Massachusetts
02109. As used below, "EVC" refers to Eaton Vance Corp., "EV" refers to Eaton
Vance, Inc., "EVM" refers to Eaton Vance Management, "BMR" refers to Boston
Management and Research and "EVD" refers to Eaton Vance Distributors, Inc. EVC
and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD
is the Funds' principal underwriter and a wholly-owned subsidiary of EVM.
<Table>
<Caption>
TERM OF NUMBER OF PORTFOLIOS
POSITION(S) OFFICE AND IN FUND COMPLEX
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY
DATE OF BIRTH FUNDS SERVICE DURING PAST FIVE YEARS TRUSTEE(1) OTHER DIRECTORSHIPS HELD
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE
James B. Hawkes Trustee and Until 2007. Chairman, President and 195 Director of EVC
11/9/41 Vice President 3 years. Chief Executive Officer of
Trustee BMR, EVC, EVM and EV;
since 2002. Director of EV; Vice
President and Director of
EVD. Trustee and/or officer
of 195 registered investment
companies in the Eaton Vance
Fund Complex. Mr. Hawkes is
an interested person because
of his positions with BMR,
EVM, EVC and EV, which are
affiliates of the Funds.
NONINTERESTED TRUSTEE(S)
Samuel L. Hayes, III(A) Trustee Until 2007. Jacob H. Schiff Professor of 195 Director of Tiffany & Co.
2/23/35 3 years. Investment Banking Emeritus, (specialty retailer) and
Trustee Harvard University Graduate Telect, Inc.
since 2002. School of Business (telecommunication
Administration. services company)
William H. Park Trustee Until 2006. President and Chief 195 None
9/19/47 3 years. Executive Officer, Prizm
Trustee Capital Management, LLC
since 2003. (investment management firm)
(since 2002). Executive Vice
President and Chief
Financial Officer, United
Asset Management Corporation
(a holding company owning
institutional investment
management firms)
(1982-2001).
Ronald A. Pearlman Trustee Until 2005. Professor of Law, Georgetown 195 None
7/10/40 3 years. University Law Center (since
Trustee 1999). Tax Partner,
since 2003. Covington & Burling,
Washington, DC (1991-2000)
Norton H. Reamer(A) Trustee Until 2005. President, Chief Executive 195 None
9/21/35 3 years. Officer and a Director of
Trustee Asset Management Finance
since 2002. Corp. (a specialty finance
company serving the
investment management
industry) (since October
2003). President, Unicorn
Corporation (an investment
and financial advisory
services company) (since
September 2000). Formerly,
Chairman, Hellman, Jordan
Management Co., Inc. (an
investment management
company) (2000-2003).
Formerly, Advisory Director
of Berkshire Capital
Corporation (investment
banking firm) (2002-2003).
Formerly Chairman of the
Board, United Asset
Management Corporation (a
holding company owning
institutional investment
management firms) and
Chairman, President and
Director, UAM Funds (mutual
funds) (1980-2000).
Lynn A. Stout Trustee Until 2005. Professor of Law, University 195 None
9/14/57 3 years. of California at Los Angeles
Trustee School of Law (since July
since 2002. 2001). Formerly, Professor
of Law, Georgetown
University Law Center.
</Table>
36
<Page>
PRINCIPAL OFFICERS WHO ARE NOT TRUSTEES
<Table>
<Caption>
TERM OF
POSITION(S) OFFICE AND
NAME AND WITH THE LENGTH OF PRINCIPAL OCCUPATION(S)
DATE OF BIRTH FUNDS SERVICE DURING PAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------------------------
Thomas J. Fetter President Since 2002 Vice President of EVM and BMR. Officer of 124 registered
8/20/43 investment companies managed by EVM or BMR.
Cynthia J. Clemson Vice President Vice President of ICA since Vice President of EVM and BMR. Officer of 84 registered
3/2/63 2002; of IMF and INY investment companies managed by EVM or BMR.
since 2004
Robert B. MacIntosh Vice President Since 2002 Vice President of EVM and BMR. Officer of 124 registered
1/22/57 investment companies managed by EVM or BMR.
Alan R. Dynner Secretary Since 2002 Vice President, Secretary and Chief Legal Officer of BMR,
10/10/40 EVM, EVD, EV and EVC. Officer of 195 registered
investment companies managed by EVM or BMR.
James L. O'Connor Treasurer Since 2002 Vice President of BMR, EVM and EVD. Officer of 116
4/1/45 registered investment companies managed by EVM or BMR.
Paul M. O'Neil Chief Since 2004 Vice President of BMR and EVM. Officer of 195 registered
7/11/53 Compliance Officer investment companies managed by EVM or BMR.
</Table>
(1) Includes both master and feeder funds in a master-feeder structure.
(A) APS Trustee.
37
<Page>
INVESTMENT ADVISER AND ADMINISTRATOR OF EATON VANCE INSURED MUNICIPAL BOND FUNDS
EATON VANCE MANAGEMENT
The Eaton Vance Building
255 State Street
Boston, MA 02109
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
PFPC INC.
Attn: Eaton Vance Insured Municipal Bond Funds
P.O. Box 43027
Providence, RI 02940-3027
(800) 331-1710
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
DELOITTE & TOUCHE LLP
200 Berkeley Street
Boston, MA 02116-5022
EATON VANCE INSURED MUNICIPAL BOND FUNDS
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
<Page>
1453-11/04 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
(a) -(d)
The following table presents the aggregate fees billed to the registrant for the
registrant's fiscal years ended September 30, 2003 and September 30, 2004 by the
registrant's principal accountant for professional services rendered for the
audit of the registrant's annual financial statements and fees billed for other
services rendered by the principal accountant during such period.
<Table>
<Caption>
FISCAL YEAR ENDED 9/30/03 9/30/04
- ----------------------------------------------------------------
Audit Fees $ 45,320 $ 64,931
Audit-Related Fees(1) 4,800 4,950
Tax Fees(2) 5,800 6,100
All Other Fees(3) 0 0
--------------------
Total $ 55,920 $ 75,981
====================
</Table>
(1) Audit-related fees consist of the aggregate fees billed for assurance and
related services that are reasonably related to the performance of the
audit of financial statements and are not reported under the category of
audit fees and specifically include fees for the performance of certain
agreed-upon procedures relating to the registrant's auction preferred
shares.
<Page>
(2) Tax fees consist of the aggregate fees billed for professional services
rendered by the principal accountant relating to tax compliance, tax
advice, and tax planning.
(3) All other fees consist of the aggregate fees billed for products and
services provided by the principal accountant other than audit,
audit-related, and tax services.
(e)(1) The registrant's audit committee has adopted policies and procedures
relating to the pre-approval of services provided by the registrant's principal
accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a
framework intended to assist the audit committee in the proper discharge of its
pre-approval responsibilities. As a general matter, the Pre-Approval Policies
(i) specify certain types of audit, audit-related, tax, and other services
determined to be pre-approved by the audit committee; and (ii) delineate
specific procedures governing the mechanics of the pre-approval process,
including the approval and monitoring of audit and non-audit service fees.
Unless a service is specifically pre-approved under the Pre-Approval Policies,
it must be separately pre-approved by the audit committee.
The Pre-Approval Policies and the types of audit and non-audit services
pre-approved therein must be reviewed and ratified by the registrant's audit
committee at least annually. The registrant's audit committee maintains full
responsibility for the appointment, compensation, and oversight of the work of
the registrant's principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the
registrant's audit committee pursuant to the "de minimis exception" set forth in
Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees
for audit-related, tax, and other services) billed for services rendered to the
registrant by its principal accountant for the registrant's last two fiscal
years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax,
and other services) billed for services rendered to the Eaton Vance organization
for the registrant's last two fiscal years.
<Table>
<Caption>
FISCAL YEAR ENDED 9/30/03 9/30/04
- -------------------------------------------------------------------
REGISTRANT $ 10,600 $ 11,050
EATON VANCE(1) $ 448,295 $ 329,084
</Table>
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the
registrant's investment adviser and administrator.
(h) The registrant's audit committee has considered whether the provision by the
registrant's principal accountant of non-audit services to the registrant's
investment adviser and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant that
were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is
compatible with maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
<Page>
The registrant has a separately-designated standing audit committee established
in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of
1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H.
Park and Lynn A. Stout are the members of the registrant's audit committee.
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 available
(1) without charge, upon request, by calling 1-800-262-1122, and (2) on the
Securities and Exchange Commission's website at http://www.sec.gov.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
<Page>
Not Applicable.
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: November 17, 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: November 17, 2004
By: /s/ Thomas J. Fetter
-------------------------------------
Thomas J. Fetter
President
Date: November 17, 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
(a) -(d)
The following table presents the aggregate fees billed to the registrant for the
registrant's fiscal years ended September 30, 2003 and September 30, 2004 by the
registrant's principal accountant for professional services rendered for the
audit of the registrant's annual financial statements and fees billed for other
services rendered by the principal accountant during such period.
<Table>
<Caption>
FISCAL YEAR ENDED 9/30/03 9/30/04
- --------------------------------------------------------------------
Audit Fees $ 36,732 $ 44,846.20
Audit-Related Fees(1) 4,800 4,950
Tax Fees(2) 5,800 6,100
All Other Fees(3) 0 0
------------------------
Total $ 47,332 $ 55,896.20
========================
</Table>
(1) Audit-related fees consist of the aggregate fees billed for assurance and
related services that are reasonably related to the performance of the
audit of financial statements and are not reported under the category of
audit fees and specifically include fees for the performance of certain
agreed-upon procedures relating to the registrant's auction preferred
shares.
(2) Tax fees consist of the aggregate fees billed for professional services
rendered by the principal accountant relating to tax compliance, tax
advice, and tax planning.
(3) All other fees consist of the aggregate fees billed for products and
services provided by the principal accountant other than audit,
audit-related, and tax services.
(e)(1) The registrant's audit committee has adopted policies and procedures
relating to the pre-approval of services provided by the registrant's principal
accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a
framework intended to assist the audit committee in the proper discharge of its
pre-approval
<Page>
responsibilities. As a general matter, the Pre-Approval Policies (i) specify
certain types of audit, audit-related, tax, and other services determined to be
pre-approved by the audit committee; and (ii) delineate specific procedures
governing the mechanics of the pre-approval process, including the approval and
monitoring of audit and non-audit service fees. Unless a service is specifically
pre-approved under the Pre-Approval Policies, it must be separately pre-approved
by the audit committee.
The Pre-Approval Policies and the types of audit and non-audit services
pre-approved therein must be reviewed and ratified by the registrant's audit
committee at least annually. The registrant's audit committee maintains full
responsibility for the appointment, compensation, and oversight of the work of
the registrant's principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the
registrant's audit committee pursuant to the "de minimis exception" set forth in
Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees
for audit-related, tax, and other services) billed for services rendered to the
registrant by its principal accountant for the registrant's last two fiscal
years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax,
and other services) billed for services rendered to the Eaton Vance organization
for the registrant's last two fiscal years.
<Table>
<Caption>
FISCAL YEAR ENDED 9/30/03 9/30/04
- -------------------------------------------------------------------
REGISTRANT $ 10,600 $ 11,050
EATON VANCE(1) $ 448,295 $ 329,084
</Table>
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the
registrant's investment adviser and administrator.
(h) The registrant's audit committee has considered whether the provision by the
registrant's principal accountant of non-audit services to the registrant's
investment adviser and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant that
were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is
compatible with maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
The registrant has a separately-designated standing audit committee established
in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of
1934, as amended. Norton H. Reamer (Chair), Samuel L. Hayes, III, William H.
Park and Lynn A. Stout are the members of the registrant's audit committee.
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 available
(1) without charge, upon request, by calling 1-800-262-1122, and (2) on the
Securities and Exchange Commission's website at http://www.sec.gov.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
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
<Page>
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.
INSURED NEW YORK MUNICIPAL BOND FUND
By: /s/Thomas J. Fetter
-----------------------
Thomas J. Fetter
President
Date: November 17, 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: November 17, 2004
-----------------
By: /s/Thomas J. Fetter
----------------------
Thomas J. Fetter
President
Date: November 17, 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
(a) -(d)
The following table presents the aggregate fees billed to the registrant for the
registrant's fiscal years ended September 30, 2003 and September 30, 2004 by the
registrant's principal accountant for professional services rendered for the
audit of the registrant's annual financial statements and fees billed for other
services rendered by the principal accountant during such period.
<Table>
<Caption>
FISCAL YEAR ENDED 9/30/03 9/30/04
- -----------------------------------------------------
Audit Fees $ 39,964 $ 46,309
Audit-Related Fees(1) 4,800 4,950
Tax Fees(2) 5,800 6,100
All Other Fees(3) 0 0
---------------------
Total $ 50,564 $ 57,359
=====================
</Table>
(1) Audit-related fees consist of the aggregate fees billed for assurance and
related services that are reasonably related to the performance of the
audit of financial statements and are not reported under the category of
audit fees and specifically include fees for the performance of certain
agreed-upon procedures relating to the registrant's auction preferred
shares.
<Page>
(2) Tax fees consist of the aggregate fees billed for professional services
rendered by the principal accountant relating to tax compliance, tax
advice, and tax planning.
(3) All other fees consist of the aggregate fees billed for products and
services provided by the principal accountant other than audit,
audit-related, and tax services.
(e)(1) The registrant's audit committee has adopted policies and procedures
relating to the pre-approval of services provided by the registrant's principal
accountant (the "Pre-Approval Policies"). The Pre-Approval Policies establish a
framework intended to assist the audit committee in the proper discharge of its
pre-approval responsibilities. As a general matter, the Pre-Approval Policies
(i) specify certain types of audit, audit-related, tax, and other services
determined to be pre-approved by the audit committee; and (ii) delineate
specific procedures governing the mechanics of the pre-approval process,
including the approval and monitoring of audit and non-audit service fees.
Unless a service is specifically pre-approved under the Pre-Approval Policies,
it must be separately pre-approved by the audit committee.
The Pre-Approval Policies and the types of audit and non-audit services
pre-approved therein must be reviewed and ratified by the registrant's audit
committee at least annually. The registrant's audit committee maintains full
responsibility for the appointment, compensation, and oversight of the work of
the registrant's principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the
registrant's audit committee pursuant to the "de minimis exception" set forth in
Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) The following table presents (i) the aggregate non-audit fees (i.e., fees
for audit-related, tax, and other services) billed for services rendered to the
registrant by its principal accountant for the registrant's last two fiscal
years; and (ii) the aggregate non-audit fees (i.e., fees for audit-related, tax,
and other services) billed for services rendered to the Eaton Vance organization
for the registrant's last two fiscal years.
<Table>
<Caption>
FISCAL YEAR ENDED 9/30/03 9/30/04
- -------------------------------------------------------
REGISTRANT $ 10,600 $ 11,050
EATON VANCE(1) $ 448,295 $ 329,084
</Table>
(1) Eaton Vance Management, a subsidiary of Eaton Vance Corp., acts as the
registrant's investment adviser and administrator.
(h) The registrant's audit committee has considered whether the provision by the
registrant's principal accountant of non-audit services to the registrant's
investment adviser and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant that
were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is
compatible with maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
The registrant has a separately-designated standing audit committee established
in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of
1934, as amended. Norton H. Reamer
<Page>
(Chair), Samuel L. Hayes, III, William H. Park and Lynn A. Stout are the members
of the registrant's audit committee.
ITEM 6. SCHEDULE OF INVESTMENTS
Please see schedule of investments contained in the Report to Stockholders
included under Item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
The Board of Trustees of the Trust has adopted a proxy voting policy and
procedure (the "Fund Policy"), pursuant to which the Trustees have delegated
proxy voting responsibility to the Fund's investment adviser and adopted the
investment adviser's proxy voting policies and procedures (the "Policies") which
are described below. The Trustees will review the Fund's proxy voting records
from time to time and will annually consider approving the Policies for the
upcoming year. In the event that a conflict of interest arises between the
Fund's shareholders and the investment adviser, the administrator, or any of
their affiliates or any affiliate of the Fund, the investment adviser will
generally refrain from voting the proxies related to the companies giving rise
to such conflict until it consults with the Board 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
<Page>
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 available
(1) without charge, upon request, by calling 1-800-262-1122, and (2) on the
Securities and Exchange Commission's website at http://www.sec.gov.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not Applicable.
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.
<Page>
(a)(2)(ii) President's Section 302 certification.
(b) Combined Section 906 certification.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
EATON VANCE INSURED CALIFORNIA MUNICIPAL BOND FUND
By: /s/ Thomas J. Fetter
--------------------
Thomas J. Fetter
President
Date: November 17, 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
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James L. O'Connor
Treasurer
Date: November 17, 2004
By: /s/ Thomas J. Fetter
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Thomas J. Fetter
President
Date: November 17, 2004