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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811-21227 |
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Eaton Vance Insured
Pennsylvania |
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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 Pennsylvania Municipal Bond as of December 31, 2006
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments — 179.5%
1
|
$ |
2,550 |
|
Shaler Area School District, (XLCA), 0.00%, 9/1/33 |
|
$ |
780,172 |
|
|
1,390 |
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Steel Valley School District, Allegheny County, (FSA), 0.00%, 11/1/29 |
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511,562 |
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||
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1,390 |
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Steel Valley School District, Allegheny County, (FSA), 0.00%, 11/1/30 |
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486,236 |
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||
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1,290 |
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Steel Valley School District, Allegheny County, (FSA), 0.00%, 11/1/31 |
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428,667 |
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||
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1,060 |
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Upper Clair Township, School District, (FSA), 5.00%, 7/15/32 |
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1,112,226 |
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||
|
|
|
|
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$ |
15,304,033 |
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|
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Insured-Hospital — 2.2% |
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|
|
||||
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$ |
1,000 |
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Washington County Hospital Authority, (Washington Hospital), (AMBAC), 5.125%, 7/1/28 |
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$ |
1,025,550 |
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|
|
|
|
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$ |
1,025,550 |
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|
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Insured-Industrial Development Revenue — 3.9% |
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|
|
||||
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$ |
1,700 |
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Allegheny County Industrial Development Authority, (MBIA), 5.00%, 11/1/29 |
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$ |
1,787,652 |
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|
|
|
|
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$ |
1,787,652 |
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|
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Insured-Lease Revenue / Certificates of Participation — 10.1% |
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|
|
||||
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$ |
1,300 |
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Philadelphia, Authority for Industrial Development Lease Revenue, (FSA), 5.125%, 10/1/26 |
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$ |
1,373,567 |
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|
1,700 |
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Philadelphia, Authority for Industrial Development Lease Revenue, (FSA), 5.25%, 10/1/30 |
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1,800,249 |
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||
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1,500 |
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State Public School Building Authority, (School District Philadelphia), (FSA), 4.50%, 6/1/36 |
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1,491,465 |
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|
|
|
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$ |
4,665,281 |
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|
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Insured-Private Education — 17.5% |
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|
|
||||
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$ |
1,000 |
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Chester County, Industrial Development Authority Educational Facility, (Westtown School), (AMBAC), 5.00%, 1/1/31 |
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$ |
1,044,960 |
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|
3,315 |
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Delaware County, (Villanova University), (MBIA), 5.00%, 12/1/28 |
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3,408,218 |
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||
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1,750 |
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Pennsylvania Higher Education Facilities Authority, (Thomas Jefferson University), (AMBAC), 4.25%, 9/1/31 |
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1,694,245 |
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||
|
1,900 |
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Pennsylvania Higher Educational Facilities Authority, (Temple University), (MBIA), 4.50%, 4/1/36 |
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1,902,014 |
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|
|
|
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$ |
8,049,437 |
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|
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Insured-Public Education — 8.9% |
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|
|
||||
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$ |
2,400 |
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Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32 |
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$ |
2,549,928 |
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|
1,000 |
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Pennsylvania Higher Educational Facilities Authority, (Clarion University Foundation), (XLCA), 5.00%, 7/1/33 |
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1,046,000 |
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||
|
500 |
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Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania), (MBIA), 4.50%, 6/15/36 |
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500,565 |
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|
|
|
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$ |
4,096,493 |
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|
2
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Insured-Special Tax Revenue — 9.8% |
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|
|
||||
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$ |
4,350 |
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Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/29 |
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$ |
4,498,335 |
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|
|
|
|
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$ |
4,498,335 |
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|
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Insured-Transportation — 25.1% |
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|
|
||||
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$ |
2,000 |
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Allegheny County Port Authority, (FGIC), 5.00%, 3/1/25 |
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$ |
2,097,880 |
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|
1,000 |
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Allegheny County, Port Authority, (FGIC), 5.00%, 3/1/29 |
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1,040,800 |
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2,050 |
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Pennsylvania Turnpike Commission, (FSA), 5.25%, 7/15/29 (1)(2) |
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2,402,946 |
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|
800 |
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Pennsylvania Turnpike Commission, (FSA), 5.25%, 7/15/29 (1)(2) |
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932,400 |
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||
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2,100 |
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Puerto Rico Highway and Transportation Authority, (CIFG), 5.25%, 7/1/41 (1)(2) |
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2,471,945 |
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||
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2,450 |
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Puerto Rico Highway and Transportation Authority, (MBIA), 5.00%, 7/1/36 (1)(2) |
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2,624,769 |
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|
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$ |
11,570,740 |
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|
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Insured-Water and Sewer — 22.1% |
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|
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||||
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$ |
1,000 |
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Ambridge Borough, Municipal Authority, (FSA), 4.60%, 10/15/41 |
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$ |
1,001,890 |
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|
1,555 |
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Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25 |
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684,977 |
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||
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2,155 |
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Erie Sewer Authority, (AMBAC), 0.00%, 12/1/25 |
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949,277 |
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||
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1,920 |
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Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26 |
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806,746 |
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||
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1,500 |
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Pennsylvania University Sewer Authority, (MBIA), 5.00%, 11/1/26 |
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1,559,625 |
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||
|
3,000 |
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Philadelphia Water and Wastewater, (FGIC), 5.00%, 11/1/31 (1)(2) |
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3,146,730 |
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1,750 |
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Pittsburgh Water and Sewer Authority, (AMBAC), 5.125%, 12/1/27 (1)(2) |
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1,845,387 |
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||
|
150 |
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Saxonburg Water and Sewer Authority, (AGC), 5.00%, 3/1/35 |
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158,990 |
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|
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$ |
10,153,622 |
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|
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Private Education — 6.7% |
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|
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||||
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$ |
3,000 |
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Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania), 4.75%, 7/15/35 |
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$ |
3,077,280 |
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|
|
|
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$ |
3,077,280 |
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|
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Senior Living/Life Changes — 1.1% |
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|
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||||
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$ |
200 |
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Montgomery County, Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24 |
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$ |
206,672 |
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|
300 |
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Montgomery County, Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/30 |
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309,312 |
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|
|
|
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$ |
515,984 |
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|
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Transportation — 3.2% |
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|
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$ |
1,400 |
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Delaware River Joint Toll Bridge Commission, 5.00%, 7/1/28 |
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$ |
1,459,528 |
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|
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|
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$ |
1,459,528 |
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|
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Total Tax-Exempt Investments —
179.5% |
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$ |
82,626,261 |
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|||
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Other Assets, Less Liabilities — (23.0)% |
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$ |
(10,582,482 |
) |
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Auction Preferred Shares Plus Cumulative Unpaid Dividends — (56.5)% |
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$ |
(26,007,479 |
) |
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Net Assets Applicable to Common Shares — 100.0% |
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$ |
46,036,300 |
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3
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AGC |
— |
Assured Guaranty Corp. |
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AMBAC |
— |
AMBAC Financial Group, Inc. |
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CIFG |
— |
CDC IXIS Financial Guaranty North America, 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. |
The Fund invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at December 31, 2006, 88.7% 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 0.2% to 25.6% of total investments.
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(1) |
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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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(2) |
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Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund. |
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(3) |
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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
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Net |
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Expiration |
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Aggregate |
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Unrealized |
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Date(s) |
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Contracts |
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Position |
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Cost |
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Value |
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Appreciation |
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03/07 |
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50 U.S. Treasury Bond |
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Short |
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$ |
(5,712,747 |
) |
$ |
(5,571,875 |
) |
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$ |
140,872 |
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Interest Rate Swaps
At December 31, 2006, the Fund had entered into an interest rate swap agreement 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 $1,800,000. In exchange the Fund receives bi-annual payments at a rate equal to the three month 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 interest rate swap contracts of $6,386 at December 31, 2006.
At December 31, 2006, the Fund had entered into an interest rate swap agreement with JP Morgan Chases Bank N.A. whereby the Fund makes bi-annual payments at a fixed rate equal to 5.77% on the notional amount of $7,000,000. In exchange the Fund receives bi-annual payments at a rate equal to the USD-BMA-LIBOR-BBA 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 payable for open interest rate swap contracts of $484,404 at December 31, 2006.
At December 31, 2006, the Fund had entered into an interest rate swap agreement with Citibank N. A. whereby the Fund makes bi-annual payments at a fixed rate equal to 3.925% on the notional amount of $1,800,000. 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 interest rate swap contracts of $3,142 at December 31, 2006.
4
At December 31, 2006, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
The cost and unrealized appreciation (depreciation) in value of the investments owned at December 31, 2006, as computed on a federal income tax basis, were as follows:
|
Aggregate cost |
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$ |
67,911,923 |
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|
Gross unrealized appreciation |
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$ |
4,357,723 |
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Gross unrealized depreciation |
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(38,385 |
) |
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Net unrealized appreciation |
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$ |
4,319,338 |
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5
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 Pennsylvania Municipal Bond Fund
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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 26, 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 26, 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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|
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Treasurer and Principal Financial Officer |
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Date: |
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February 26, 2007 |