Eaton Vance Insured California Municipal Bond Fund
 
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
811-21147
Investment Company Act File Number
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)
Maureen A. Gemma
Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number, Including Area Code)
September 30
Date of Fiscal Year End
December 31, 2008
Date of Reporting Period
 
 

 

 

Item 1. Schedule of Investments

 

 

     
Eaton Vance Insured California Municipal Bond Fund   as of December 31, 2008
     
     
PORTFOLIO OF INVESTMENTS (Unaudited)    
Tax-Exempt Investments — 194.2%
                 
Principal Amount            
(000’s omitted)     Security   Value  
 
Hospital — 12.1%        
$ 2,000    
California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 7/1/23
   $ 1,731,120  
  1,745    
California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 11/15/34
     1,296,378  
  10,900    
California Statewide Communities Development Authority, (Huntington Memorial Hospital), 5.00%, 7/1/35
     7,855,739  
  2,330    
California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/34
     1,733,007  
  3,850    
California Statewide Communities Development Authority, (Kaiser Permanente), 5.25%, 3/1/45
     2,791,519  
  4,000    
Torrance Hospital, (Torrance Memorial Medical Center), 5.50%, 6/1/31
     3,254,440  
  2,100    
Turlock, (Emanuel Medical Center, Inc.), 5.375%, 10/15/34
     1,211,154  
  3,005    
Washington Health Care Facilities Authority, (Providence Health Care), 5.25%, 7/1/29
     2,322,234  
  3,165    
Washington Township Health Care District, 5.00%, 7/1/32
     2,276,585  
  1,000    
Washington Township Health Care District, 5.00%, 7/1/37
     694,800  
       
 
      
       
 
   $ 25,166,976  
       
 
      
Insured-Electric Utilities — 11.2%        
$ 20,000    
Anaheim Public Financing Authority, (Electric System District), (BHAC), (MBIA), 4.50%, 10/1/27(1)
   $ 16,919,200  
  6,750    
Los Angeles Department of Water and Power, (AMBAC), (BHAC), 5.00%, 7/1/26(1)
     6,565,961  
       
 
      
       
 
   $ 23,485,161  
       
 
      
Insured-Escrowed/Prerefunded — 9.7%        
$ 55    
California Water Resource, (Central Valley), (FGIC), Prerefunded to 12/1/12, 5.00%, 12/1/29
   $ 62,031  
  7,540    
Foothill/Eastern, Transportation Corridor Agency, (FSA), 0.00%, 1/1/21
     4,671,256  
  13,940    
Sacramento County Airport System, (FSA), Prerefunded to 7/1/12, 5.00%, 7/1/27(1)
     15,554,531  
       
 
      
       
 
   $ 20,287,818  
       
 
      
Insured-General Obligations — 43.9%        
$ 4,260    
Antelope Valley Community College District, (Election of 2004), (MBIA), 5.25%, 8/1/39(2)
   $ 4,095,692  
  17,495    
Arcadia Unified School District, (FSA), 0.00%, 8/1/40(3)
     2,294,819  
  18,375    
Arcadia Unified School District, (FSA), 0.00%, 8/1/41
     2,262,881  
  2,840    
Azusa Unified School District, (FSA), 0.00%, 7/1/25
     1,104,561  
  6,030    
Burbank Unified School District, (FGIC), 0.00%, 8/1/21
     3,018,317  
  6,500    
California, (AGC), 4.50%, 8/1/30(1)
     5,475,405  
  10,000    
Chabot — Las Positas, Community College District, (AMBAC), 0.00%, 8/1/32
     2,294,700  
  10,000    
Chabot — Las Positas, Community College District, (AMBAC), 0.00%, 8/1/36
     1,712,900  
  10,000    
Chabot — Las Positas, Community College District, (AMBAC), 0.00%, 8/1/37
     1,602,300  
  32,755    
Chabot — Las Positas, Community College District, (AMBAC), 0.00%, 8/1/44
     3,305,962  
  3,000    
Chino Valley Unified School District, (FSA), 5.00%, 8/1/26(2)
     2,941,440  
  10,600    
Coast Community College District, (Election of 2002), (FSA), 0.00%, 8/1/33
     2,319,810  
  25,000    
Coast Community College District, (Election of 2002), (FSA), 0.00%, 8/1/34
     5,133,000  
  6,180    
El Camino Hospital District, (MBIA), 4.45%, 8/1/36
     5,005,800  
  7,725    
Escondido, (Election of 2004), (MBIA), 4.75%, 9/1/36
     6,437,629  
  2,060    
Huntington Beach, City School District, (FGIC), (MBIA), 0.00%, 8/1/25
     775,343  
  2,140    
Huntington Beach, City School District, (FGIC), (MBIA), 0.00%, 8/1/26
     749,064  
  2,000    
Jurupa Unified School District, (FGIC), (MBIA), 0.00%, 8/1/23
     834,060  
  2,000    
Jurupa Unified School District, (FGIC), (MBIA), 0.00%, 8/1/26
     669,140  
  7,300    
Los Angeles Community College District, (Election of 2001), (FGIC), (FSA), 5.00%, 8/1/32(2)
     6,922,152  
  3,225    
Modesto, High School District, Stanislaus County, (FGIC), (MBIA), 0.00%, 8/1/24
     1,303,771  
  10,000    
San Diego Unified School District, (FGIC), 0.00%, 7/1/22
     4,858,000  
  10,000    
San Diego Unified School District, (FGIC), 0.00%, 7/1/23
     4,534,100  
  8,000    
San Juan Unified School District, (FSA), 0.00%, 8/1/21
     4,100,720  

1

 

 

                 
Principal Amount            
(000’s omitted)     Security   Value  
 
$ 5,000    
San Mateo County, Community College District, (FGIC), (MBIA), 0.00%, 9/1/22
   $ 2,316,350  
  4,365    
San Mateo County, Community College District, (FGIC), (MBIA), 0.00%, 9/1/23
     1,881,752  
  3,955    
San Mateo County, Community College District, (FGIC), (MBIA), 0.00%, 9/1/25
     1,480,831  
  5,240    
San Mateo Union High School District, (FGIC), (MBIA), 0.00%, 9/1/21
     2,706,984  
  5,835    
Santa Clara Unified School District, (Election of 2004), (FSA), 4.375%, 7/1/30
     4,929,816  
  3,825    
Union Elementary School District, (FGIC), (MBIA), 0.00%, 9/1/24
     1,605,161  
  3,000    
Ventura County, Community College District, (MBIA), 5.00%, 8/1/27
     2,949,990  
       
 
      
       
 
   $ 91,622,450  
       
 
      
Insured-Hospital — 16.9%        
$ 2,175    
California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), (BHAC), 5.00%, 11/15/34(2)
   $ 2,098,397  
  19,495    
California Health Facilities Financing Authority, (Sutter Health), (BHAC),(MBIA), 5.00%, 8/15/38(1)
     18,680,889  
  10,000    
California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 4/1/31(1)
     9,313,650  
  3,500    
California Statewide Communities Development Authority, (Kaiser Permanente), (BHAC), 5.00%, 3/1/41(1)
     3,154,742  
  2,000    
California Statewide Communities Development Authority, (Sutter Health), (AMBAC), (BHAC), 5.00%, 11/15/38(1)
     1,916,230  
       
 
      
       
 
   $ 35,163,908  
       
 
      
Insured-Lease Revenue/Certificates of Participation — 15.6%        
$ 11,915    
California Public Works Board Lease Revenue, (California Community College), (FGIC), 4.00%, 10/1/30
   $ 8,320,959  
  1,000    
California Public Works Board Lease Revenue, (Department of General Services), (AMBAC), 5.00%, 12/1/27
     869,390  
  10,000    
San Diego County Water Authority, Certificates of Participation, (FSA), 5.00%, 5/1/38(1)
     9,386,050  
  1,000    
San Jose Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37
     936,670  
  14,000    
San Jose Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37(1)
     13,113,730  
       
 
      
       
 
   $ 32,626,799  
       
 
      
Insured-Other Revenue — 7.7%        
$ 20,275    
Golden State Tobacco Securitization Corp., CA, (AGC), 5.00%, 6/1/45(1)
   $ 16,167,488  
       
 
      
       
 
   $ 16,167,488  
       
 
      
Insured-Public Education — 13.8%        
$ 1,000    
California State University, (AMBAC), 5.125%, 11/1/26
   $ 954,370  
  8,250    
California State University, (BHAC), (FSA), 5.00%, 11/1/39(1)
     7,748,441  
  10,750    
University of California, (BHAC), (FGIC), 4.75%, 5/15/37(1)
     9,527,833  
  3,095    
University of California, (FSA), 4.50%, 5/15/26(1)
     2,793,114  
  6,690    
University of California, (FSA), 4.50%, 5/15/28(1)
     5,847,796  
  2,115    
University of California, General Revenues, (BHAC), (FGIC), 4.75%, 5/15/37
     1,874,503  
       
 
      
       
 
   $ 28,746,057  
       
 
      
Insured-Sewer Revenue — 6.0%        
$ 13,350    
Livermore-Amador Valley, Water Management Agency, (AMBAC), 5.00%, 8/1/31
   $ 12,475,842  
       
 
      
       
 
   $ 12,475,842  
       
 
      
Insured-Special Assessment Revenue — 8.5%        
$ 7,765    
Ceres, Redevelopment Agency Tax, (AMBAC), 4.00%, 11/1/36
   $ 4,574,362  
  855    
Murrieta Redevelopment Agency Tax, (MBIA), 5.00%, 8/1/32
     648,868  
  7,000    
Pomona, Public Financing Authority, (MBIA), 5.00%, 2/1/33
     6,465,410  
  4,110    
Santa Cruz County, Redevelopment Agency Tax, (MBIA), 5.00%, 9/1/35
     3,244,557  

2

 

 

                 
Principal Amount            
(000’s omitted)     Security   Value  
 
$ 3,000    
Tustin Unified School District, (FSA), 5.00%, 9/1/38
   $ 2,720,730  
       
 
      
       
 
   $ 17,653,927  
       
 
      
Insured-Special Tax Revenue — 16.4%        
$ 1,900    
Hesperia Public Financing Authority, (Redevelopment and Housing Project), (XLCA), 5.00%, 9/1/31
   $ 1,462,753  
  10,355    
Hesperia Public Financing Authority, (Redevelopment and Housing Project), (XLCA), 5.00%, 9/1/37
     7,631,117  
  2,500    
North City, School Facility Financing Authority, (AMBAC), 0.00%, 9/1/26
     826,700  
  75,680    
Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54
     2,780,483  
  13,095    
Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44
     1,124,206  
  25,980    
Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45
     2,072,944  
  16,350    
Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46
     1,208,592  
  835    
Sacramento Area Flood Control Agency, (BHAC), 5.50%, 10/1/28
     856,468  
  355    
Sacramento Area Flood Control Agency, (BHAC), 5.625%, 10/1/37
     361,500  
  3,595    
San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AMBAC), 5.00%, 7/1/31
     3,431,499  
  1,850    
San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (AMBAC), 5.125%, 7/1/36
     1,769,895  
  7,000    
San Francisco Bay Area Rapid Transportation District, Sales Tax Revenue, (FSA), 4.25%, 7/1/36
     5,430,880  
  8,425    
San Jose Redevelopment Agency, (Merged Area), (XLCA), 4.25%, 8/1/36
     5,235,801  
       
 
      
       
 
   $ 34,192,838  
       
 
      
Insured-Transportation — 1.3%        
$ 3,000    
Puerto Rico Highway and Transportation Authority, (FGIC), 5.25%, 7/1/39
   $ 2,162,280  
  3,445    
San Joaquin Hills, Transportation Corridor Agency, (MBIA), 0.00%, 1/15/30
     648,280  
       
 
      
       
 
   $ 2,810,560  
       
 
      
Insured-Water Revenue — 29.8%        
$ 8,000    
California Department of Water Resources Center, (Valley Project), (BHAC), (FGIC), 5.00%, 12/1/29(1)
   $ 7,787,280  
  7,065    
Calleguas Las Virgines Public Financing Authority, (Municipal Water District), (BHAC), (FGIC), 4.75%, 7/1/37
     6,233,096  
  5,500    
Contra Costa, Water District, (FSA), 4.50%, 10/1/26(1)
     4,842,530  
  7,750    
Los Angeles Department of Water & Power, (BHAC), (FGIC), 5.00%, 7/1/43(1)
     7,207,035  
  14,750    
Los Angeles Department of Water and Power, (BHAC), (MBIA), 5.125%, 7/1/41(1)
     14,066,780  
  10,000    
Metropolitan Water District, Water and Sewer Systems, (BHAC), (FGIC), 5.00%, 10/1/36(1)
     9,667,450  
  7,500    
San Luis Obispo County, (Nacimiento Water Project), (MBIA), 4.50%, 9/1/40
     5,092,425  
  9,500    
Santa Clara Valley Water District, (FSA), 3.75%, 6/1/28(2)
     7,333,525  
       
 
      
       
 
   $ 62,230,121  
       
 
      
Lease Revenue/Certificates of Participation — 1.3%        
$ 2,570    
Sacramento City Financing Authority, 5.40%, 11/1/20
   $ 2,671,978  
       
 
      
       
 
   $ 2,671,978  
       
 
      
       
 
        
Total Tax-Exempt Investments — 194.2%
(identified cost $470,558,169)
   $ 405,301,923  
       
 
      
       
 
        
Other Assets, Less Liabilities — (94.2)%   $ (196,624,359 )
       
 
      
       
 
        
Net Assets — 100.0%   $ 208,677,564  
       
 
      
     
AGC
  -  Assured Guaranty Corp.
 
    
AMBAC
  -  AMBAC Financial Group, Inc.
 
    
BHAC
  -  Berkshire Hathaway Assurance Corp.
 
    
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 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, 2008, 93.1% 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 3.5% to 34.1% of total investments.
 
    
(1)
   Security represents the underlying municipal bond of a tender option bond trust.
 
    
(2)
   Security (or a portion thereof) has been pledged as collateral for open swap contracts or inverse floating rate security transactions.
 
    
(3)
   Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

3

 

 

A summary of financial instruments at December 31, 2008 is as follows:
Futures Contracts
                                 
Expiration           Aggregate             Net Unrealized  
Date   Contracts   Position   Cost     Value     Depreciation  
 
3/09  
262 U.S. Treasury Bond
   Short   $ (32,644,681 )   $ (36,168,281 )   $ (3,523,600 )
   
 
                          
Interest Rate Swaps
                                 
            Annual   Floating   Effective Date/    
    Notional   Fixed Rate   Rate   Termination   Net Unrealized  
Counterparty   Amount   Paid By Fund   Paid To Fund   Date   Depreciation  
 
JPMorgan Chase Co.
  $ 6,425,000       4.743 %   3-month
USD-LIBOR-BMA 		  September 14, 2009 /
September 14, 2039 		  $ (2,425,208 )
Merrill Lynch Capital Services, Inc.
    10,337,500       4.682 %   3-month
USD-LIBOR-BBA 		  April 1, 2009 /
April 1, 2039 		    (3,905,510 )
Morgan Stanley Capital Services, Inc.
    7,750,000       4.691 %   3-month
USD-LIBOR-BBA 		  June 11, 2009 /
June 11, 2039 		    (2,908,225 )
 
                             
 
                          $ (9,238,943 )
 
                             
The effective date represents the date on which the Fund and the counterparty to the interest rate swap contract begin interest payment accruals.
At December 31, 2008, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2008, as determined on a federal income tax basis, were as follows:
         
Aggregate cost
   $ 274,660,087  
 
      
Gross unrealized appreciation
   $ 2,384,606  
Gross unrealized depreciation
     (68,252,770 )
 
      
Net unrealized depreciation
   $ (65,868,164 )
 
      
The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 (FAS 157), “Fair Value Measurements”, effective October 1, 2008. FAS 157 established a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
  •   Level 1 – quoted prices in active markets for identical investments
 
  •   Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
 
  •   Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
At December 31, 2008, the inputs used in valuing the Fund’s investments, which are carried at value, were as follows:
                     
        Investments in     Other Financial  
    Valuation Inputs   Securities     Instruments*  
Level 1  
Quoted Prices
   $ —     $ (3,523,600 )
Level 2  
Other Significant Observable Inputs
     405,301,923       (9,238,943 )
Level 3  
Significant Unobservable Inputs
     —       —  
   
 
            
Total  
 
   $ 405,301,923     $ (12,762,543 )
   
 
            
 
*   Other financial instruments include futures and interest rate swap contracts not reflected in the Portfolio of Investments, which are valued at the unrealized appreciation (depreciation) on the instrument.
The Fund held no investments or other financial instruments as of September 30, 2008 whose fair value was determined using Level 3 inputs.
For information on the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.

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
         
By:
  /s/ Cynthia J. Clemson
 
Cynthia J. Clemson 		   
 
  President    
 
        
Date:
  February 25, 2009    
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/ Cynthia J. Clemson
 
Cynthia J. Clemson 		   
 
  President    
 
        
Date:
  February 25, 2009    
 
        
By:
  /s/ Barbara E. Campbell    
 
       
 
  Barbara E. Campbell    
 
  Treasurer    
 
        
Date:
  February 25, 2009