Iphone Microsoft Exchange email

Good morning,
I have read the iCloud privacy documents that imply that IMAP mail stored on mail serviers is not encrypted.  However, if I am using the iPhone Microsoft Exchange ActivSync connector and the iPhone downloads and keeps a local copy of the email so I can read it off-line  If I backup my phone to the iCloud does the Microsoft Exchange locally stored email get backed up?  If it does not then that is great.  If it does then is it encrypted or not?
Regards,
Paul

already did that several times.  Even changed the password to see if that would work.  Completely erased phone and started over.  no help either.

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