UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED
MANAGEMENT INVESTMENT COMPANIES
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Investment Company Act File Number |
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811-21217 |
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Eaton Vance Insured California |
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(Exact Name of Registrant as Specified in Charter) |
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The Eaton Vance Building, |
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02109 |
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(Address of Principal Executive Offices) |
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(Zip code) |
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Alan R. Dynner, Esq. Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109 |
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(Name and Address of Agent for Services) |
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Registrant’s Telephone Number, Including Area Code: |
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(617) 482-8260 |
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Date of Fiscal Year End: |
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September 30 |
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Date of Reporting Period: |
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December 31, 2006 |
Item 1. Schedule of Investments
Eaton Vance Insured California Municipal Bond Fund II as of December 31, 2006
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments — 167.1%
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Principal |
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Security |
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Value |
|
||
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General Obligations — 4.3% |
|
|
|
||||
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$ |
900 |
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California, 5.25%, 4/1/30 |
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$ |
948,645 |
|
|
1,465 |
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California, 5.50%, 11/1/33 |
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1,606,285 |
|
||
|
|
|
|
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$ |
2,554,930 |
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|
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Hospital — 15.8% |
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|
|
||||
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$ |
1,850 |
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California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 11/15/34 |
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$ |
1,924,684 |
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|
2,940 |
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California Statewide Communities Development Authority, (Huntington Memorial Hospital), 5.00%, 7/1/35 |
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3,052,396 |
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||
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1,000 |
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California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36 |
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1,041,440 |
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||
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1,400 |
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California Statewide Communities Development Authority, (Kaiser Permanente), 5.00%, 3/1/41 |
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1,454,712 |
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||
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1,900 |
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California Statewide Communities Development Authority, (Kaiser Permanente), 5.25%, 3/1/45 |
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2,014,513 |
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||
|
|
|
|
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$ |
9,487,745 |
|
|
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Insured-Electric Utilities — 8.0% |
|
|
|
||||
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$ |
1,475 |
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Glendale Electric, (MBIA), 5.00%, 2/1/32 |
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$ |
1,541,390 |
|
|
1,650 |
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Puerto Rico Electric Power Authority, (FSA), Variable Rate, 6.37%, 7/1/29 (1)(2) |
|
1,835,707 |
|
||
|
1,370 |
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Sacramento Municipal Electric Utility District, (FSA), 5.00%, 8/15/28 (3)(4) |
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1,427,284 |
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|
|
|
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$ |
4,804,381 |
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|
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Insured-Escrowed/Prerefunded — 6.2% |
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|
|
||||
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$ |
740 |
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San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, Prerefunded to 7/1/11, (AMBAC), 5.00%, 7/1/31 |
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$ |
784,785 |
|
|
2,765 |
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San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, Prerefunded to 7/1/11, (AMBAC), 5.125%, 7/1/36 |
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2,946,633 |
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|
|
|
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$ |
3,731,418 |
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|
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Insured-General Obligations — 50.0% |
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|
|
||||
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$ |
1,250 |
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California, (AMBAC), 5.00%, 4/1/27 |
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$ |
1,311,062 |
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|
1,245 |
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California, (XLCA), 5.00%, 10/1/28 (3)(4) |
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1,298,933 |
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19,350 |
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Chabot-Las Positas Community College District, (AMBAC), 0.00%, 8/1/43 |
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3,176,883 |
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5,000 |
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Clovis Unified School District, (FGIC), 0.00%, 8/1/20 |
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2,819,700 |
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6,675 |
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Coast Community College District, (FSA), 0.00%, 8/1/35 |
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1,524,970 |
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2,000 |
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Laguna Salada Union School District, (FGIC), 0.00%, 8/1/22 |
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1,027,240 |
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2,350 |
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Long Beach Unified School District, (Election of 1999), (FSA), 5.00%, 8/1/31 |
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2,436,080 |
|
||
|
1,945 |
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Los Osos Community Services, Wastewater Assessment District, (MBIA), 5.00%, 9/2/33 |
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2,033,595 |
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||
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1,000 |
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Mount Diablo Unified School District, (FSA), 5.00%, 8/1/25 |
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1,055,060 |
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1
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$ |
1,100 |
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Oakland, Unified School District, Alamedia County, (Election of 2006), (FSA), 4.375%, 8/1/28 |
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$ |
1,090,848 |
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|
2,205 |
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San Diego Unified School District, (MBIA), 5.50%, 7/1/24 (3)(4) |
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2,589,449 |
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4,300 |
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San Mateo County Community College District, (Election of 2001), (FGIC), 0.00%, 9/1/21 |
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2,303,424 |
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1,750 |
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Santa Ana Unified School District, (MBIA), 5.00%, 8/1/32 |
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1,826,563 |
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1,620 |
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Santa Clara Unified School District, (Election of 2004), (FSA), 4.375%, 7/1/30 |
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1,603,557 |
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1,000 |
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Simi Valley Unified School District, (MBIA), 5.00%, 8/1/28 |
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1,057,150 |
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3,200 |
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Union Elementary School District, (FGIC), 0.00%, 9/1/22 |
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1,637,728 |
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2,600 |
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Union Elementary School District, (FGIC), 0.00%, 9/1/23 |
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1,270,828 |
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$ |
30,063,070 |
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|
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Insured-Lease Revenue / Certificates of Participation — 20.0% |
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|
|
||||
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$ |
4,000 |
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Anaheim Public Financing Authority Lease Revenue, (FSA), 5.00%, 3/1/37 |
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$ |
4,060,440 |
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|
4,250 |
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California Public Works Board Lease Revenue, (Department of General Services), (AMBAC), 5.00%, 12/1/27 (5) |
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4,469,725 |
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|
2,250 |
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Orange County Water District, Certificates of Participation, (MBIA), 5.00%, 8/15/34 |
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2,358,270 |
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||
|
1,075 |
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San Jose Financing Authority, (Civic Center), (AMBAC), 5.00%, 6/1/32 |
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1,118,656 |
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|
|
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$ |
12,007,091 |
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|
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Insured-Other Revenue — 1.3% |
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|
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||||
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$ |
750 |
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Golden State Tobacco Securitization Corp., (Tobacco Settlement Revenue), (FGIC), 5.00%, 6/1/35 |
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$ |
792,443 |
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$ |
792,443 |
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Insured-Public Education — 13.7% |
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|
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||||
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$ |
4,000 |
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California State University, (AMBAC), 5.00%, 11/1/33 |
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$ |
4,214,760 |
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|
3,790 |
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University of California, (FGIC), 5.125%, 9/1/31 |
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4,034,379 |
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$ |
8,249,139 |
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Insured-Special Assessment Revenue — 22.3% |
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|
|
||||
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$ |
2,500 |
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Cathedral City Public Financing Authority, (Housing Redevelopment), (MBIA), 5.00%, 8/1/33 |
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$ |
2,636,200 |
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|
2,500 |
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Cathedral City Public Financing Authority, (Tax Allocation Redevelopment), (MBIA), 5.00%, 8/1/33 |
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2,636,200 |
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1,750 |
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Irvine Public Facility and Infrastructure Authority Assessment, (AMBAC), 5.00%, 9/2/26 |
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1,804,618 |
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2,000 |
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Murrieta Redevelopment Agency Tax, (MBIA), 5.00%, 8/1/32 |
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2,108,960 |
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4,000 |
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San Jose Redevelopment Agency Tax, (MBIA), 5.00%, 8/1/32 (3)(4) |
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4,236,896 |
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|
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$ |
13,422,874 |
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|
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Insured-Special Tax Revenue — 4.9% |
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|
|
||||
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$ |
260 |
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San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AMBAC), 5.00%, 7/1/31 |
|
$ |
271,167 |
|
|
985 |
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San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AMBAC), 5.125%, 7/1/36 |
|
1,032,753 |
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||
2
|
$ |
1,695 |
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San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (FSA), 4.25%, 7/1/36 |
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$ |
1,635,014 |
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|
|
|
|
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$ |
2,938,934 |
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|
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Insured-Transportation — 4.6% |
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|
|
||||
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$ |
6,670 |
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San Joaquin Hills Transportation Corridor Agency, (MBIA), 0.00%, 1/15/27 |
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$ |
2,787,727 |
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|
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|
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$ |
2,787,727 |
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Insured-Utilities — 3.0% |
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|
|
||||
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$ |
1,750 |
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Los Angeles Department of Water and Power, (FGIC), 5.125%, 7/1/41 |
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$ |
1,818,075 |
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$ |
1,818,075 |
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Insured-Water Revenue — 8.7% |
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|
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||||
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$ |
2,500 |
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Contra Costa Water District, (FSA), 5.00%, 10/1/32 (3)(4) |
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$ |
2,632,765 |
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|
1,500 |
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Los Angeles Department of Water and Power, Water Revenue, (MBIA), 3.00%, 7/1/30 |
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1,191,480 |
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1,475 |
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San Francisco City and County Public Utilities Commission, (FSA), 4.25%, 11/1/33 |
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1,430,101 |
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|
|
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$ |
5,254,346 |
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|
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Water Revenue — 4.3% |
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|
|
||||
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$ |
2,500 |
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California Water Resource, (Central Valley), 5.00%, 12/1/29 |
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$ |
2,558,175 |
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|
|
|
|
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$ |
2,558,175 |
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|
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Total Tax-Exempt Investments — 167.1% |
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$ |
100,470,348 |
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|||
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Other Assets, Less Liabilities — (10.9)% |
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$ |
(6,582,813 |
) |
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Auction Preferred Shares Plus Cumulative Unpaid Dividends — (56.2)% |
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$ |
(33,763,315 |
) |
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Net Assets Applicable to Common Shares — 100.0% |
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$ |
60,124,220 |
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|||
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AMBAC |
— |
AMBAC Financial Group, Inc. |
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FGIC |
— |
Financial Guaranty Insurance Company |
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FSA |
— |
Financial Security Assurance, Inc. |
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MBIA |
— |
Municipal Bond Insurance Association |
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XLCA |
— |
XL Capital Assurance, Inc. |
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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 December 31, 2006, 85.5% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.3% to 26.9% of total investments. |
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(1) |
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Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2006, the aggregate value of the securities is $1,835,707 or 3.1% of the Fund’s net assets applicable to common shares. |
3
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(2) |
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Security has been issued as a inverse floater bond. The stated interest rate represents the rate in effect at December 31, 2006. |
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(3) |
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Security valued at fair value using methods determined in good faith by or at the direction of the Trustees. |
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(4) |
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Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund. |
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(5) |
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Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts. |
A summary of financial instruments at December 31, 2006 is as follows:
Futures Contracts
|
Expiration |
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Contracts |
|
Position |
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Aggregate |
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Value |
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Net |
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|||||||
|
03/07 |
|
104 U.S. Treasury Bond |
|
|
Short |
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|
$ |
(11,872,698 |
) |
$ |
(11,589,500 |
) |
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$ |
283,198 |
|
|
Interest Rate Swaps
At December 31, 2006, the Fund had entered into an interest rate swap agreement with Citigroup whereby the Fund makes bi-annual payments at a fixed rate equal to 3.925% on the notional amount of $2,350,000. In exchange, the Fund receives bi-annual payments at a rate equal to the USD-BMA Municipal Swap Index on the same notional amount. The effective date of the interest rate swap is August 16, 2007. The value of the contract, which terminates on August 16, 2027, is recorded as a receivable for open swap contracts of $4,101, on December 31, 2006.
At December 31, 2006, the Fund had entered into an interest rate swap with Merrill Lynch Capital Services, Inc. whereby the Fund makes bi-annual payments at a fixed rate equal to 4.006% on the notional amount of $2,350,000. In exchange, the Fund receives bi-annual payments at a rate equal to the USD-BMA Municipal Swap Index on the same notional amount. The effective date of the interest rate swap is August 7, 2007. The value of the contract, which terminates August 7, 2037, is recorded as a receivable for open swap contracts of $8,338, on December 31, 2006.
At December 31, 2006, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
The cost and unrealized appreciation (depreciation) in value of the investments owned at December 31, 2006, as computed on a federal income tax basis, were as follows:
|
Aggregate cost |
|
$ |
87,549,309 |
|
|
Gross unrealized appreciation |
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$ |
5,389,656 |
|
|
Gross unrealized depreciation |
|
(13,617 |
) |
|
|
Net unrealized appreciation |
|
$ |
5,376,039 |
|
4
Item 2. 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 on this Form N-Q 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 on this Form N-Q 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 fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Insured California Municipal Bond Fund II
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By: |
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/s/ Cynthia J. Clemson |
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|
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Cynthia J. Clemson |
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|
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President and Principal Executive Officer |
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Date: |
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February 27, 2007 |
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.
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By: |
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/s/ Cynthia J. Clemson |
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|
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Cynthia J. Clemson |
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|
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President and Principal Executive Officer |
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Date: |
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February 27, 2007 |
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By: |
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/s/ Barbara E. Campbell |
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|
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Barbara E. Campbell |
|
|
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Treasurer and Principal Financial Officer |
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Date: |
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February 27, 2007 |