Edgar Filing: FIRST TRUST FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II

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 811-21539
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FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
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(Exact name of registrant as specified in charter)

1001 Warrenville Road
Suite 300
LISLE, IL 60532
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(Address of principal executive offices) (Zip code)

W. Scott Jardine
First Trust Portfolios L.P.
1001 Warrenville Road
Suite 300
LISLE, IL 60532
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(Name and address of agent for service)

registrant's telephone number, including area code: 630-241-4141
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Date of fiscal year end: MAY 31
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Date of reporting period: NOVEMBER 30, 2005
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. ss. 3507.

ITEM 1. REPORTS TO STOCKHOLDERS.

The Report to Shareholders is attached herewith.

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FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE
INCOME FUND II
SEMI-ANNUAL REPORT
FOR THE SIX MONTHS ENDED NOVEMBER 30, 2005
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TABLE OF CONTENTS
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FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
SEMI-ANNUAL REPORTs
NOVEMBER 30, 2005

Shareholder Letter .................................................. 1
Portfolio Commentary ................................................ 2
Portfolio Components ................................................ 4
Portfolio of Investments ............................................ 5
Statement of Assets and Liabilities ................................. 16
Statement of Operations ............................................. 17
Statements of Changes in Net Assets ................................. 18
Statement of Cash Flows ............................................. 19
Financial Highlights ................................................ 20
Notes to Financial Statements ....................................... 21
Additional Information .............................................. 26
Dividend Reinvestment Plan
Proxy Voting Policies and Procedures
Portfolio Holdings
Submission of Matters to a Vote of Shareholders
By-Law Amendment

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This Semi-Annual Report contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933. Forward-looking statements
include statements regarding the goals, beliefs, plans or current expectations
of First Trust Advisors L.P. and/or Four Corners Capital Management, LLC and
their respective representatives, taking into account the information currently
available to them. Forward-looking statements include all statements that do not
relate solely to current or historical fact. For example, forward-looking
statements include the use of words such as "anticipate," "estimate," "intend,"
"expect," "believe," "plan," "may," "should," "would" or other words that convey
uncertainty of future events or outcomes.

Forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause First Trust/Four Corners Senior Floating Rate
Income Fund II's (the "Fund") actual results, performance or achievements to be
materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. When evaluating the
information included in this Semi-Annual Report, you are cautioned not to place
undue reliance on these forward-looking statements, which reflect the judgment
of First Trust Advisors L.P. and/or Four Corners Capital Management, LLC and
their respective representatives only as of the date hereof. We undertake no
obligation to publicly revise or update these forward-looking statements to
reflect events and circumstances that arise after the date hereof.

HOW TO READ THIS REPORT

This report contains information that can help you evaluate your investment. It
includes details about the First Trust/Four Corners Senior Floating Rate Income
Fund II (the "Fund") and presents data and analysis that provide insight into
the Fund's performance and investment approach.

By reading the letter from the Fund's President, James A. Bowen, together with
the portfolio commentary by Michael P. McAdams and Robert I. Bernstein of Four
Corners Capital Management, LLC, the Fund's sub-advisor, you will obtain an
understanding of how the market environment affected the Fund's performance. The
statistical information that follows can help you understand the Fund's
performance compared to that of relevant market benchmarks.

It is important to keep in mind that the opinions expressed by Mr. Bowen, First
Trust Advisors L.P. personnel, Mr. McAdams and Mr. Bernstein are just that:
informed opinions. They should not be considered to be promises or advice. The
opinions, like the statistics, cover the period through the date on the cover of
this report. Of course, the risks of investing in the Fund are spelled out in
the prospectus.

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SHAREHOLDER LETTER
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FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II (FCT)
SEMI-ANNUAL REPORT
NOVEMBER 30, 2005

Dear Shareholders:

We are pleased to inform you that your Fund, the First Trust/Four Corners Senior
Floating Rate Income Fund II (NYSE: FCT), has continued to provide attractive
monthly income for the period ended November 30, 2005. While interest rates have
continued to rise, fueling steady dividend increases for the Fund, the dividend
distribution rate has increased from 6.2% as of May 31, to 7.7%, as of November
30, based on the Fund's market price.

The Fund, composed primarily of senior secured floating rate corporate loans,
seeks to provide a high level of current income. As a secondary objective, the
Fund will attempt to preserve capital. For the six months ended November 30,
2005, the Fund's market price total return was -3.3%. Despite pressure on the
market price, the Fund's net asset value ("NAV") total return over the same
period was 3.8%. This compares favorably to its benchmark, the Standard &
Poor's/LSTA Leveraged Loan Index, which posted a 3.1% gain over the same
six-month period.

The Fund is managed by Four Corners Capital Management, LLC ("Four Corners"), a
leading asset management firm that specializes in the sub-investment grade and
structured finance markets. The portfolio management team, including the credit
research analysts, collectively has over 100 years' experience in all aspects of
the senior loan market, including structuring, underwriting, researching,
trading, managing and investing in senior loans.

I encourage you to read the portfolio commentary from Michael P. McAdams and
Robert I. Bernstein, Co-Portfolio Managers, found on the following pages, for
more details about the Fund's performance and the management strategy. We thank
you for your confidence in First Trust Advisors L.P. and Four Corners and we
will work diligently to keep earning it.

Sincerely,

/S/ JAMES A. BOWEN
James A. Bowen
President of the First Trust/Four Corners Senior Floating Rate Income Fund II
January 6, 2006

Page 1

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A COMMENTARY ON THE FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
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OVERVIEW

The First Trust/Four Corners Senior Floating Rate Income Fund II ("FCT" or the
"Fund") posted a market price total return of -3.3% for the six-month period
ended November 30, 2005. The Fund's net asset value (or "NAV") total return for
the period was 3.8%. During the period, the Fund paid dividends totaling $0.5922
per share, reflecting four separate dividend increases from $0.0927 to $0.1075
per share, or an increase of 16.0%. Based on the most recent dividend, FCT
provided a distribution rate of 7.7% based on the Fund's market price, and 6.8%
based on the Fund's NAV as of November 30, 2005. The Fund's stock
exchange-listed market price declined 6.5% over the period.

ECONOMIC AND MARKET ENVIRONMENT

The first half of the Fund's 2006 fiscal year continued to benefit from a
favorable economic environment for senior floating-rate loan investing. During
the period, the Federal Reserve (the "Fed") continued to increase domestic
short-term interest rates. With each increase, the Fed indirectly increased the
amount of floating rate interest owed by the Fund's corporate borrowers to their
lenders, thereby contributing to the Fund's dividend increases.

Underlying the increase in short-term interest rates has been solid U.S.
economic expansion despite the devastation from the Gulf hurricanes and concern
for elevated energy prices. While residential housing markets may be softening
slightly for the first time in several years, job growth and factory utilization
remain drivers of increased demand for resources, inflationary pressures and
economic growth. As evidence, in the quarter ended September 30, 2005, Gross
Domestic Product rose at a strong annual rate of 4.1%. Similarly, improved
corporate cash flow levels have contributed to continued low corporate debt
default rates; for the period ended September 30, 2005, Standard & Poor's
calculated that defaults were 1.3%, which is lower than the long-term domestic
average of 3.6%. Nevertheless, defaults have increased slightly of late due to
continuing issues in the automotive and airline sectors (to which the Fund has
minimal exposure) and from unanticipated events such as fraud and unusually
severe hurricanes.

Reflecting the potential for continued economic growth and a lower-than-average
default environment, corporations have increased their willingness to borrow,
thereby providing an increase in the number of opportunities in which to invest.
New institutional Senior Loan issuance rose 23% from the prior year for the
year-to-date period ended November 2005. Similarly, Senior Loan market
liquidity, as measured by secondary loan trading volume, grew 9.7%
year-over-year to over $129 billion in secondary loan trades for the nine months
ended September 2005.

Since the beginning of 2005 we have seen reduced credit spreads (that somewhat
limited the Fund's dividend growth in the Spring). We have more recently seen a
stabilization of credit spreads that, when combined with Fed rate increases,
have resulted in an improved environment for dividend increases. In addition,
the current market reflects a better balance of inflows into the Senior Loan
asset class relative to the volume of new issues and prepayments. The
stabilized, but still historically low, level of spreads reflects the markets'
low concern for defaults over the short to medium term. Indeed, Standard &
Poor's predicts that the default rate will remain below the long-term average
for at least the next 12 months.

We also remain comfortable with credit standards of new issue loans and continue
to see the risk/return advantage of Senior Loans as representing considerable
value in comparison to the loan markets' recent history as well as relative to
the outlooks for other asset classes.

INVESTMENT STRATEGY AND PORTFOLIO COMPOSITION

As previously mentioned, the investment philosophy of Four Corners Capital
Management, LLC ("Four Corners") is intended to generate high income with
relatively less volatility throughout a variety of market conditions. The Fund
also remains a "pure play" strategy that focuses on Senior Loans, generally
avoiding investments in riskier but higher yielding "junk" bonds. In the long
run, we believe that our strategy may result in lower NAV volatility and
potentially better NAV returns than a strategy relying upon high yield bonds to
pay a slightly higher dividend in the short run.

The investment strategy used to implement our philosophy focuses on thorough
fundamental credit analysis, broad issuer and industry diversification and a
proactive sell discipline in order to minimize risk. The Fund's portfolio is
generally more heavily weighted towards companies and industries from which we
expect to see lower earnings volatility and from which we expect to see higher
recoveries for senior lenders in circumstances where cash flow volatility does
occur. For example, the Fund has had very little exposure to the automotive and
airline industries, which have performed poorly based on weak industry
fundamentals as evidenced by recent defaults in the sectors.

Page 2

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A COMMENTARY ON THE FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE
INCOME FUND II - (CONTINUED)
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The Fund remains broadly diversified with over 175 positions across 36
industries. At November 30, 2005, the five largest individual borrower exposures
in total represented 10.2% of the Fund's total investments. The Fund also has
the flexibility to invest up to 10% of the portfolio in Special Situation debt
investments, which are typically investments in companies that are either in
default or experiencing financial difficulties. Given the growth and improvement
in the economy during the last year, we have seen few attractive opportunities
in this segment of the market. As a result, the portfolio contained only two
Special Situation investments, representing 2.9% of the Fund's total
investments.

The Fund's investment quality, measured by independent credit rating agencies,
has changed relatively little from the prior period. The Fund is predominately
invested in loans rated between BB and B. While our strategy focuses on such
non-investment grade credit, Senior Loans we buy are senior and collateralized
relative to other debt or equity of the same issuer, thus reducing the
probability of substantial losses.

As mentioned in prior reports, the Fund is leveraged using both adjustable-rate
Auction Market Preferred Shares and an asset-backed commercial paper conduit.
The terms and conditions of the leverage provide the Fund with the ability to
borrow on a floating-rate basis. Since the income generated by the Fund's Senior
Loan investment portfolio is also floating rate-based, the Fund is substantially
less exposed to risk from interest rate increases than would be a leveraged fund
that invests in fixed-rate bonds. And, as Fund assets and liabilities tend to
move in tandem, either up or down, portfolio leverage benefits investors
regardless of the direction of rates. At November 30, 2005, the portfolio
leverage accounted for 35.1% of the Fund's total assets.

PERFORMANCE REVIEW

For the 6-month period ended November 30, 2005, the Fund's NAV-based total
return was 3.8%. This return exceeded the benchmark (the Standard & Poor's/LSTA
Leveraged Loan Index) return of 3.1%. A portion of the Fund's performance is
attributable to the beneficial impact of leverage and the negative impact of
fees, expenses and cash balances, which are not included in the benchmark
return. As mentioned above, the Fund's dividend was increased on four separate
occasions during the period, totaling a 16.0% increase to $0.1075 in November.
Additionally, the Fund's NAV had relatively low volatility, ranging from a low
of $18.87 to a high of $19.20 ending the period at $19.00. The Fund's NAV
performance over the period was influenced by a number of factors. We actively
managed the portfolio, generating trading gains when available, as well as
taking losses to reduce exposure to firms whose circumstances may have changed
since our initial purchase. Despite the Fund's positive NAV total return, the
Fund's market price total return was -3.3% during the period.

In October, one of the Fund's investments, a Senior Loan issued by Refco Inc.,
experienced a sudden and serious reversal resulting in the eventual bankruptcy
filing by part of the firm. The firm's problem arose from the discovery of
fraudulently unreported financial dealings between the company and its CEO and a
subsequent U.S. Securities and Exchange Commission investigation; the CEO was
arrested and has been charged with accounting fraud. As background, Refco was
one of the world's leading brokerage, commodities trading and derivative firms.
The Refco loan was part of a recapitalization when the company went public just
this past summer in a transaction led by Credit Suisse First Boston, Goldman
Sachs and Bank of America. Previously, the management had been highly regarded
and Four Corners had successfully invested in prior bank loan issues of the
firm.

Consistent with our strategy to, whenever possible, reduce exposure to problem
credits, we sold the position based upon a variety of concerns including
reported loss of clients and potential for further regulatory action. The sale
resulted in a loss of $0.11 per share in NAV. While the ultimate outcome of
Refco's situation remains uncertain, and mindful that every situation has its
own unique facts, we believe that the prompt sale of investments is a proven
means of minimizing downside in deteriorating situations.

Despite the isolated and unusual situation with Refco and the recently
well-publicized (although long-developing) concerns about the U.S. automotive
and airline industries that Four Corners has successfully avoided, we do not
currently plan to change our outlook for Senior Loan investing. This view is
consistent with the above-mentioned fundamental economic strength and continuing
relative conservatism of new loan origination standards.

In closing, we remain disappointed that the broader market has not placed a
higher value on demonstrated performance and the lower volatility-focused
strategy of the Fund. We note, though, that the Fund trades at a discount
comparable to other funds with loan-based strategies. We are also pleased to
have received favorable research opinions from several brokerage firms,
including Wachovia Securities, Raymond James & Associates and Ryan Beck & Co. We
feel that as of November 30, 2005, the Fund had an attractive and competitive
distribution rate of 7.7% based on market price.

We remain committed to delivering long-term performance and superior client
support and appreciate the opportunity to assist in meeting your investment
goals.

Page 3

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO COMPONENTS+
NOVEMBER 30, 2005 (UNAUDITED)

S&P RATING BREAKDOWN

[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]

B 13.92%
B- 5.31%
B+ 26.21%
BB 9.16%
BB- 11.72%
BB+ 3.81%
Cash/Cash Equivalents 2.65%
CCC+ 1.57%
NR 25.65%

ECONOMIC SECTOR BREAKDOWN

[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]

Consumer Discretionary 32.71%
Consumer Staples 5.14%
Energy 7.57%
Financials 8.28%
Health Care 7.90%
Industrials 15.45%
Information Technology 3.92%
Materials 7.35%
Telecommunication Services 2.72%
Utilities 6.31%
Cash/Cash Equivalents 2.65%

+ Percentages are based on total investments. Please note that the
percentages shown on the Portfolio of Investments are based on net assets.
NR Not Rated
* The percentage of Senior Loan Interests not rated includes 13.10% of
Senior Loan Interests that were privately rated upon issuance. The rating
agencies do not provide ongoing surveillance on the private ratings.

Page 4 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 2005 (UNAUDITED)

BANK LOAN
PRINCIPAL RATINGS+ STATED MARKET
VALUE DESCRIPTION~ MOODY'S S&P COUPON MATURITY* VALUE
------------ ------------------------------------------------ -------------- ------------- --------- -------------

SENIOR FLOATING RATE TERM LOAN INTERESTS** - 145.3%

AEROSPACE & DEFENSE - 3.9%
AEROSPACE & DEFENSE - 3.9%
$ 3,288,889 Hexcel Corp. ................................... B2 B+ 5.81%-6.13% 3/01/12 $ 3,314,927
3,060,211 Hunter Defense Holdings, Inc. .................. NR(a) NR(a) 7.19%-9.00% 3/10/11 3,071,686
2,032,936 K&F Industries, Inc. ........................... B2 B+ 6.45% 11/18/12 2,052,631
997,500 Mid-Western Aircraft Systems, Inc. ............. B1 BB- 6.41% 12/31/11 1,008,971
2,732,484 MRO Acquisition Corp. .......................... B1 B+ 6.57% 8/27/10 2,759,809
3,323,077 Standard Aero Holdings, Inc. ................... B2 B+ 6.22%-6.44% 8/24/12 3,302,308
3,100,000 Vought Aircraft Industries, Inc. ............... Ba3 B+ 6.36% 12/22/10 3,118,082
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TOTAL AEROSPACE & DEFENSE 18,628,414
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AIR FREIGHT & LOGISTICS - 1.2%
AIR FREIGHT & LOGISTICS - 1.2%
5,925,060 United Air Lines Inc.,
(Debtor in Possession) (g) .................. NR(a) BB 8.62% 3/31/06 5,979,376
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TOTAL AIR FREIGHT & LOGISTICS 5,979,376
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AUTO COMPONENTS - 4.3%
AUTO PARTS & EQUIPMENT - 4.3%
5,000,000 Axletech International
Holdings, Inc. (c) .......................... Caa1 B- 10.59% 4/21/13 5,016,665
3,000,000 Collins & Aikman Corp.,
(Debtor in Possession) (g) .................. NR NR 6.88%-7.25% 5/17/07 3,020,001
6,000,000 Environmental Systems
Products Holdings Inc. (c) .................. Caa1 NR(a) 13.66%-14.41% 12/12/10 6,090,000
6,451,250 TRW Automotive Inc. ............................ Ba2 BB+ 5.25% 6/30/12 6,467,378
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TOTAL AUTO COMPONENTS 20,594,044
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BEVERAGES - 0.2%
SOFT DRINKS - 0.2%
990,000 Culligan Corp. ................................. B1 B+ 6.64% 9/30/11 1,001,447
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TOTAL BEVERAGES 1,001,447
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BUILDING PRODUCTS - 2.8%
BUILDING PRODUCTS - 2.8%
4,761,885 Custom Building Products ....................... NR(a) NR(a) 6.27% 10/20/11 4,794,623
2,402,525 Headwaters Inc. . .............................. B1 B+ 6.43%-8.25% 4/30/11 2,418,543
962,500 NCI Building Systems, Inc. ..................... Ba2 BB 5.75%-5.95% 6/18/10 966,109
4,309,579 PGT Industries, Inc. ........................... NR(a) NR(a) 7.14%-7.23% 1/29/10 4,352,675
1,000,000 South Edge, LLC ................................ NR(a) NR(a) 5.56% 10/31/09 1,005,417
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TOTAL BUILDING PRODUCTS 13,537,367
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CHEMICALS - 3.0%
DIVERSIFIED CHEMICALS - 3.0%
5,000,000 BCP Crystal US Holdings Corp. .................. B1 B+ 6.20% 1/26/09 5,062,500
6,000,000 Brenntag Holding GmbH
& Company KG ................................ B1 BB- 6.81% 12/09/11 6,007,998
3,500,000 Huntsman International, LLC .................... Ba3 BB- 5.89% 8/16/12 3,512,033
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TOTAL CHEMICALS 14,582,531
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See Notes to Financial Statements. Page 5

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2005 (UNAUDITED)

SENIOR FLOATING RATE TERM LOAN INTERESTS**- CONTINUED

COMMERCIAL SERVICES & SUPPLIES - 11.1%
DIVERSIFIED COMMERCIAL SERVICES - 5.4%
$ 1,953,488 Affinion Group, Inc. ........................... B1 B+ 6.89%-7.10% 10/17/12 $ 1,916,860
1,987,425 Ashtead Group PLC. ............................. Ba3 BB 6.13% 11/12/09 2,000,675
10,972,500 IAP Worldwide Services, Inc. ................... B1 B+ 6.81% 3/30/11 11,118,796
4,000,000 IAP Worldwide Services, Inc. (c) ............... B2 B- 9.81% 3/30/12 4,076,668
2,815,295 N.E.W. Customer Service
Companies, Inc. ............................. NR(a) NR(a) 7.06%-7.56% 7/01/11 2,850,487
2,962,500 United Rentals, Inc. ........................... B2 BB 6.11%-6.45% 2/14/11 2,989,163
960,117 Western Inventory Service, Ltd. ................ NR NR 6.85%-8.50% 3/31/11 963,717
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25,916,366
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ENVIRONMENTAL SERVICES - 1.9%
2,934,124 Duratek, Inc. .................................. B1 BB- 6.75%-7.19% 12/16/09 2,937,792
6,158,496 Envirocare of Utah, LLC ........................ NR(a) NR(a) 6.95% 4/13/10 6,227,779
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9,165,571
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OFFICE SERVICES & SUPPLIES - 3.8%
3,231,946 Infrasource Inc. ............................... Ba3 BB- 6.78% 9/30/10 3,248,106
4,889,560 Monitronics International, Inc. ................ B1 B+ 7.71%-7.89% 8/26/09 4,914,008
4,159,877 Pike Electric, Inc. ............................ NR(a) NR(a) 6.38%-6.44% 7/01/12 4,201,476
4,950,000 Quanta Services Inc. ........................... Ba3 BB- 6.88%-6.89% 6/19/08 4,993,312
700,417 TRM Corp. ...................................... B2 B+ 8.11%-8.22% 11/19/10 696,915
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18,053,817
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TOTAL COMMERCIAL SERVICES & SUPPLIES 53,135,754
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COMMUNICATIONS EQUIPMENT - 0.2%
COMMUNICATIONS EQUIPMENT - 0.2%
1,000,000 Sorenson Communications, Inc. .................. B2 B 7.13% 11/15/12 1,010,625
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TOTAL COMMUNICATIONS EQUIPMENT 1,010,625
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CONTAINERS & PACKAGING - 4.6%
METAL & GLASS CONTAINERS - 1.8%
734,667 BWAY Corp. ..................................... B1 B+ 6.44%-6.56% 6/30/11 741,554
1,000,000 Captive Plastics, Inc. ......................... NR(a) B- 6.89% 8/16/11 1,007,500
4,776,720 Owens-Illinois Group, Inc. ..................... B1 BB- 5.87% 4/01/07 4,794,633
2,082,188 Owens-Illinois Group, Inc. ..................... B1 BB- 5.92%-6.12% 4/01/08 2,092,612
-------------
8,636,299
-------------
PAPER PACKAGING - 2.8%
1,364,448 Boise Cascade, LLC ............................. Ba3 BB 5.78%-6.00% 10/28/11 1,379,609
3,970,000 Graham Packaging
Holdings Company ............................ B2 B 6.38%-6.63% 10/07/11 4,019,625
6,000,000 Graham Packaging Holdings
Company (c) ................................. B3 CCC+ 8.25% 4/07/12 6,097,500
2,000,000 Pregis Corp. ................................... B1 B+ 6.37% 10/12/12 2,010,000
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13,506,734
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TOTAL CONTAINERS & PACKAGING 22,143,033
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Page 6 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2005 (UNAUDITED)

SENIOR FLOATING RATE TERM LOAN INTERESTS**- CONTINUED

DIVERSIFIED CONSUMER SERVICES - 0.4%
SPECIALIZED CONSUMER SERVICES - 0.4%
$ 1,650,288 Coinstar, Inc. ................................. Ba3 BB- 6.10% 7/01/11 $ 1,677,105
-------------
TOTAL DIVERSIFIED CONSUMER SERVICES 1,677,105
-------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 1.9%
INTEGRATED TELECOMMUNICATION SERVICES - 1.9%
1,000,000 Hawaiian Telecom
Communications, Inc. ........................ B1 B+ 6.28% 10/31/12 1,009,000
6,000,000 NTL Investment Holdings Ltd. ................... B1 BB- 7.14% 5/10/12 6,013,500
1,990,000 Telcordia Technologies, Inc. ................... B1 B+ 6.84%-6.91% 9/15/12 1,968,856
-------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 8,991,356
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ELECTRIC UTILITIES - 7.4%
ELECTRIC UTILITIES - 7.4%
6,089,483 Allegheny Energy Supply Inc. ................... Ba2 BB 5.64%-5.92% 3/08/11 6,150,377
776,715 Cogentrix Delaware
Holdings, Inc. .............................. Ba2 BB+ 5.78% 4/14/12 783,997
7,991,057 Covanta Energy Corp. ........................... B1 B+ 6.85%-6.96% 6/24/12 8,085,951
1,000,000 LSP Kendall Energy, LLC ........................ B1 B 6.09% 10/07/13 991,875
6,482,562 Midwest Generation, LLC ........................ Ba3 BB- 6.05%-6.22% 4/27/11 6,539,284
7,966,250 NRG Energy, Inc. ............................... Ba3 BB 5.90% 12/24/11 7,992,802
2,148,408 Riverside Energy Center, LLC ................... Ba3 B 8.49% 6/24/11 2,212,860
1,656,670 Rocky Mountain Energy
Center, LLC ................................. Ba3 B 8.49% 6/24/11 1,706,370
993,231 Texas Genco, LLC ............................... Ba2 BB 5.87%-6.11% 12/14/11 994,163
-------------
TOTAL ELECTRIC UTILITIES 35,457,679
-------------
ELECTRICAL EQUIPMENT - 1.2%
ELECTRICAL COMPONENTS & EQUIPMENT - 1.2%
2,798,952 Penn Engineering
& Manufacturing Corp. ....................... B2 B 6.52% 5/25/11 2,826,941
3,000,000 Penn Engineering
& Manufacturing Corp. (c) ................... B3 CCC+ 10.02% 5/25/12 3,030,000
-------------
TOTAL ELECTRICAL EQUIPMENT 5,856,941
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.6%
ELECTRONIC EQUIPMENT MANUFACTURERS - 0.4%
1,921,612 VeriFone, Inc. ................................. B1 B+ 6.24% 6/30/11 1,931,220
-------------
ELECTRONIC MANUFACTURING SERVICES - 0.2%
1,000,000 Cinram International Inc. ...................... Ba3 BB 6.12% 9/30/09 1,007,292
-------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 2,938,512
-------------
ENERGY EQUIPMENT & SERVICES - 3.2%
OIL & GAS EQUIPMENT & SERVICES - 3.2%
5,147,169 Ferrell Companies, Inc. ........................ NR NR 7.39%-9.50% 12/17/11 5,256,547
3,000,000 Key Energy Services, Inc. ...................... B1 B- 7.02%-7.28% 6/30/12 3,039,999
7,000,000 Targa Resources, Inc. .......................... Ba3 B+ 6.47%-6.66% 10/31/12 7,035,000
-------------
TOTAL ENERGY EQUIPMENT & SERVICES 15,331,546
-------------

See Notes to Financial Statements. Page 7

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2005 (UNAUDITED)

SENIOR FLOATING RATE TERM LOAN INTERESTS**- CONTINUED

FOOD & STAPLES RETAILING - 1.8%
DRUG RETAIL - 0.8%
$ 3,859,637 The Jean Coutu Group (PJC) Inc. ................ B1 BB- 6.50% 7/30/11 $ 3,883,158
-------------
FOOD DISTRIBUTORS - 1.0%
1,970,000 Golden State Foods Corp. ....................... NR(a) NR(a) 5.99% 2/25/11 1,984,775
3,000,000 Nash Finch Company ............................. B1 B+ 6.50% 11/12/10 3,007,500
-------------
4,992,275
-------------
TOTAL FOOD & STAPLES RETAILING 8,875,433
-------------
FOOD PRODUCTS - 5.9%
AGRICULTURAL PRODUCTS - 1.9%
1,995,000 Chiquita Brands, L.L.C. ........................ B1 BB- 6.20% 6/08/12 2,005,807
7,000,000 Dole Food Company, Inc. (c) .................... B3 B 9.44% 7/22/10 7,192,500
-------------
9,198,307
-------------
PACKAGED FOODS & MEATS - 4.0%
7,888,348 Keystone Foods Holdings LLC .................... NR(a) NR(a) 5.81%-6.00% 6/16/11 7,973,803
8,917,444 OSI Group LLC .................................. NR(a) NR(a) 6.02% 9/02/11 9,014,046
2,000,000 THL Food Products Company ...................... B1 B+ 6.17% 11/21/10 2,025,000
-------------
19,012,849
-------------
TOTAL FOOD PRODUCTS 28,211,156
-------------
HEALTH CARE PROVIDERS & SERVICES - 8.7%
HEALTH CARE DISTRIBUTORS - 0.6%
3,000,000 CCS Medical, Inc. .............................. B3 B 7.50% 9/30/12 2,961,249
-------------
HEALTH CARE FACILITIES - 0.8%
929,064 Lifepoint Hospitals, Inc. ...................... Ba3 BB 6.19% 4/15/12 933,564
2,967,544 Select Medical Corp. (d) ....................... B1 BB- 5.78%-7.75% 2/24/12 2,966,719
-------------
3,900,283
-------------
HEALTH CARE SERVICES - 5.3%
5,920,101 CHS/Community Health
Systems, Inc. ............................... Ba3 BB- 5.97%-6.16% 8/19/11 5,985,470
4,803,922 DaVita Inc. .................................... B1 BB- 6.35%-6.64% 10/05/12 4,867,972
3,000,000 Team Finance, LLC .............................. B2 B+ 6.88% 11/23/12 3,018,750
6,461,731 US Oncology Holdings, Inc. ..................... B1 B+ 5.94%-6.69% 8/20/11 6,526,348
5,080,100 VWR International, Inc. ........................ B2 B+ 6.69% 4/07/11 5,137,252
-------------
25,535,792
-------------
MANAGED HEALTH CARE - 2.0%
4,438,800 IASIS Healthcare Corp. ......................... B1 B+ 6.27%-6.30% 6/22/11 4,495,208
2,962,500 Medcath Holdings Corp. ......................... B2 B+ 6.77%-8.25% 6/30/11 2,977,313
1,985,000 Vanguard Health Systems, Inc. .................. B2 B 6.21% 9/23/11 2,007,331
-------------
9,479,852
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 41,877,176
-------------

Page 8 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2005 (UNAUDITED)

SENIOR FLOATING RATE TERM LOAN INTERESTS**- CONTINUED

HOTELS, RESTAURANTS & LEISURE - 9.3%
CASINOS & GAMING - 6.6%
$ 5,925,000 Boyd Gaming Corp. .............................. Ba2 BB 5.52%-5.70% 6/30/11 $ 5,984,250
2,995,000 CCM Merger, Inc. ............................... B1 B+ 5.96%-6.39% 10/21/12 3,011,473
2,857,143 Columbia Entertainment ......................... NR(a) NR(a) 6.66% 10/24/11 2,878,571
3,580,339 Global Cash Access, Inc. ....................... B2 B+ 6.47% 3/10/10 3,625,093
7,940,000 Marina District Finance
Company, Inc. ............................... NR NR 5.91% 10/20/11 7,999,550
2,000,000 Penn National Gaming, Inc. ..................... Ba3 BB- 5.97%-6.26% 10/03/12 2,023,750
6,000,000 Pinnacle Entertainment, Inc. ................... B1 BB- 7.22% 8/27/10 6,030,000
-------------
31,552,687
-------------
HOTELS, RESORTS & CRUISE LINES - 1.3%
6,273,305 OpBiz, LLC ..................................... B3 B- 7.05% 8/31/10 6,257,622
-------------
LEISURE FACILITIES - 1.4%
6,858,931 American Skiing Company ........................ NR NR 8.62%-9.06% 11/24/10 6,893,226
-------------
TOTAL HOTELS, RESTAURANTS & LEISURE 44,703,535
-------------
HOUSEHOLD DURABLES - 5.1%
HOMEBUILDING - 4.6%
2,038,576 Kyle Acquisition Group, LLC .................... NR(a) NR(a) 6.06% 7/20/08 2,051,317
2,775,964 Kyle Acquisition Group, LLC .................... NR(a) NR(a) 6.06% 7/20/10 2,793,314
11,353,445 Lake at Las Vegas Joint Venture ................ B2 B+ 6.91%-7.04% 11/01/09 11,415,889
1,000,000 Technical Olympic USA, Inc. .................... NR(a) NR 7.19% 8/01/08 1,008,750
5,000,000 Technical Olympic USA, Inc.,
(Mezzanine Debt) (c) ........................ NR(a) NR 9.69% 8/01/09 5,000,000
-------------
22,269,270
-------------
HOUSEWARES & SPECIALTIES - 0.5%
2,316,237 Visant Holding Corp. ........................... B1 B+ 5.94%-6.19% 10/04/11 2,346,638
-------------
TOTAL HOUSEHOLD DURABLES 24,615,908
-------------
INDUSTRIAL CONGLOMERATES - 1.5%
INDUSTRIAL CONGLOMERATES - 1.5%
2,977,500 Goodman Global Holdings, Inc. .................. B2 B+ 6.38% 12/23/11 3,017,199
1,000,000 Mueller Group, Inc. ............................ B2 B+ 6.30%-6.66% 10/03/12 1,011,964
942,078 Rexnord Corp. .................................. B1 B+ 6.07%-6.30% 12/31/11 951,892
1,965,075 Roller Bearing Corp. ........................... NR(a) NR(a) 6.84%-8.25% 7/01/11 1,977,357
-------------
TOTAL INDUSTRIAL CONGLOMERATES 6,958,412
-------------
INSURANCE - 0.9%
LIFE & HEALTH INSURANCE - 0.9%
4,365,894 Conseco, Inc. .................................. B2 BB- 6.14% 6/22/10 4,404,096
-------------
TOTAL INSURANCE 4,404,096
-------------
INTERNET SOFTWARE & SERVICES - 1.3%
INTERNET SOFTWARE & SERVICES - 1.3%
5,985,000 SunGard Data Systems Inc. ...................... B1 B+ 6.68%-6.81% 2/11/13 6,021,724
-------------
TOTAL INTERNET SOFTWARE & SERVICES 6,021,724
-------------

See Notes to Financial Statements. Page 9

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2005 (UNAUDITED)

SENIOR FLOATING RATE TERM LOAN INTERESTS**- CONTINUED

IT SERVICES - 4.0%
DATA PROCESSING & OUTSOURCED SERVICES - 0.6%
$ 995,000 Fidelity National Information
Solutions, Inc. ............................. Ba3 BB 5.61% 3/09/11 $ 995,089
1,908,108 Fidelity National Information
Solutions, Inc. ............................. Ba3 BB 5.86% 3/09/13 1,913,220
-------------
2,908,309
-------------
IT CONSULTING & OTHER SERVICES - 3.4%
3,128,402 Alion Science and
Technology Corp. ............................ B1 B+ 6.27%-6.45% 8/02/09 3,112,760
963,351 Apptis (DE), Inc. .............................. B2 B+ 7.45%-9.25% 1/05/10 966,963
994,950 CACI International Inc. ........................ Ba2 BB 5.04%-5.43% 5/03/11 1,004,070
8,955,000 DynCorp International LLC ...................... B2 B+ 6.69%-6.81% 2/11/11 8,955,000
2,125,000 Wyle Laboratories, Inc. (c) .................... NR(a) B- 10.77% 7/28/11 2,154,219
-------------
16,193,012
-------------
TOTAL IT SERVICES 19,101,321
-------------
LEISURE EQUIPMENT & PRODUCTS - 0.8%
LEISURE PRODUCTS - 0.8%
4,000,000 Brooklyn Basketball, LLC (d) ................... NR NR 7.69% 6/16/08 3,990,000
-------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 3,990,000
-------------
MACHINERY - 0.7%
INDUSTRIAL MACHINERY - 0.7%
2,397,215 Invensys International
Holdings Ltd. ............................... Ba3 B+ 7.79% 9/05/09 2,424,184
1,000,000 Invensys International
Holdings Ltd. (c) ........................... B1 B+ 8.53% 12/05/09 1,022,500
-------------
TOTAL MACHINERY 3,446,684
-------------
MEDIA - 25.2%
ADVERTISING - 0.4%
2,097,222 Adams Outdoor Advertising, LP .................. B1 B+ 6.20% 10/18/12 2,123,437
-------------
BROADCASTING & CABLE TV - 13.7%
3,950,000 Bragg Communications, Inc. ..................... NR(a) NR 6.24% 8/31/11 3,999,375
17,380,000 Century Cable Holdings, LLC .................... NR NR 9.00% 6/30/09 17,051,014
12,983,858 Charter Communications
Operating, LLC .............................. B2 B 7.25% 4/27/10 12,951,398
1,333,333 DIRECTV Holdings LLC ........................... Ba1 BB 5.39%-5.64% 4/13/13 1,344,723
902,724 Mediacom Illinois, LLC,
(Revolving Credit) .......................... Ba3 BB- 0.63%-7.50% 9/30/11 872,821
204,046 MMC Georgia LLC,
(Revolving Credit) .......................... Ba3 BB- 0.50%-7.50% 3/31/10 198,435
2,975,019 NEP Supershooters, L.P. ........................ B1 B 7.52% 2/03/11 2,991,753
1,000,000 NextMedia Operating, Inc. (c) .................. B3 CCC+ 8.62% 11/15/13 1,009,583
5,993,932 PanAmSat Corp. ................................. B1 BB+ 5.86% 8/20/11 6,059,757
2,487,500 Rainbow Media Holdings LLC ..................... B1 B+ 7.00%-7.19% 3/31/12 2,505,535
3,000,000 Raycom Media, Inc. ............................. NR NR 5.88% 10/06/11 3,000,000
4,500,000 Raycom Media, Inc. ............................. NR NR 6.06% 4/06/12 4,500,000

Page 10 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2005 (UNAUDITED)

SENIOR FLOATING RATE TERM LOAN INTERESTS**- CONTINUED

MEDIA- (CONTINUED)
BROADCASTING & CABLE TV - (CONTINUED)
$ 4,000,000 UPC Distribution Holding B.V. .................. B1 B 7.19% 12/31/11 $ 4,041,000
5,000,000 UPC Distribution Holding B.V. .................. B1 B 6.55% 9/30/12 5,037,500
-------------
65,562,894
-------------
MOVIES & ENTERTAINMENT - 5.8%
6,893,611 Loews Cineplex
Entertainment Corp. ......................... B1 B 6.34%-6.35% 6/30/11 6,914,078
7,000,000 Metro-Goldwyn-Mayer
Holdings II, Inc. ........................... NR(a) NR(a) 6.27% 4/08/12 7,039,774
3,820,307 Regal Cinemas Corp. ............................ Ba3 BB- 6.02% 11/10/10 3,856,917
9,854,870 WMG Acquisition Corp. .......................... B1 B+ 6.19%-6.59% 3/01/11 9,949,901
-------------
27,760,670
-------------
PUBLISHING - 5.3%
5,176,471 CBD Media, LLC ................................. B1 B 6.62% 12/31/09 5,234,706
2,129,045 Freedom Communications, Inc. ................... Ba3 BB 5.37%-5.53% 5/18/12 2,139,690
1,984,975 Media News Group, Inc. ......................... Ba3 BB 5.47% 12/30/10 1,984,975
4,000,000 Newspaper Holdings, Inc. ....................... NR NR 5.63% 8/24/12 4,017,500
1,948,655 Nexstar Broadcasting, Inc. ..................... Ba3 B+ 5.77% 10/01/12 1,958,398
1,500,000 PBI Media, Inc. (c) ............................ B3 CCC+ 10.24% 9/30/13 1,485,000
1,000,000 PRIMEDIA Inc. .................................. B2 B 6.34% 9/30/13 985,750
5,817,568 RH Donnelley Inc. .............................. Ba3 BB 5.52%-5.86% 6/30/11 5,837,144
2,000,000 WCP Exposition Services, LLC ................... NR NR 7.55%-7.72% 8/29/11 2,012,500
-------------
25,655,663
-------------
TOTAL MEDIA 121,102,664
-------------
METALS & MINING - 2.9%
ALUMINUM - 1.3%
6,061,538 Novelis Corp. .................................. Ba2 BB- 6.01% 1/07/12 6,118,365
-------------
DIVERSIFIED METALS & MINING - 1.0%
2,977,500 Murray Energy Corp. and
Coal Resources, Inc. ........................ B3 NR(a) 7.22% 1/28/10 2,981,222
2,000,000 PinnOak Resources .............................. B3 B 9.25% 11/15/12 2,005,000
-------------
4,986,222
-------------
PRECIOUS METALS & MINERALS - 0.6%
2,925,000 Carmeuse Lime, Inc. ............................ NR NR 6.00% 5/02/11 2,939,625
-------------
TOTAL METALS & MINING 14,044,212
-------------
MULTI-UTILITIES & UNREGULATED POWER - 2.3%
MULTI-UTILITIES & UNREGULATED POWER - 2.3%
995,000 KGEN, LLC ...................................... B2 B 6.65% 8/05/11 990,025
10,384,430 KGEN, LLC (c) .................................. B3 B- 13.02% 8/05/11 10,280,586
-------------
TOTAL MULTI-UTILITIES & UNREGULATED POWER 11,270,611
-------------

See Notes to Financial Statements. Page 11

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2005 (UNAUDITED)

SENIOR FLOATING RATE TERM LOAN INTERESTS**- CONTINUED

OIL & GAS - 8.5%
OIL & GAS EXPLORATION & PRODUCTION - 3.1%
$ 5,970,000 ATP Oil & Gas Corp. ............................ NR NR 9.37%-9.84% 4/14/10 $ 6,149,100
1,930,000 Mainline, L.P. ................................. Ba3 NR(a) 6.30% 12/17/11 1,949,300
4,581,888 Plains Resources Inc. .......................... Ba2 BB 6.40% 8/12/11 4,621,980
1,910,521 SemCrude, L.P. ................................. Ba3 B 5.87%-7.75% 3/16/11 1,929,626
-------------
14,650,006
-------------
OIL & GAS REFINING, MARKETING & TRANSPORTATION - 5.4%
4,250,000 Alon USA, Inc. ................................. B2 B 10.64% 12/16/08 4,356,250
1,000,000 Calumet Lubricants Company ..................... B2 B+ 7.83%-7.84% 11/10/12 1,000,000
5,000,000 Cheniere LNG Holdings, LLC ..................... NR BB 6.77%-6.95% 8/31/12 5,023,440
7,982,775 El Paso Corp. .................................. B3 B 6.61% 11/23/09 8,006,061
1,000,000 EPCO Holdings, Inc. ............................ Ba3 B+ 6.41%-6.60% 8/18/10 1,013,438
5,000,000 Hawkeye Renewables, LLC ........................ B2 B 6.93% 1/31/12 4,950,000
992,500 Regency Gas Service LLC ........................ B1 B+ 6.78% 6/01/10 997,462
750,000 Western Refining Company ....................... B2 BB- 6.72% 7/27/12 750,000
-------------
26,096,651
-------------
TOTAL OIL & GAS 40,746,657
-------------
PAPER & FOREST PRODUCTS - 0.8%
FOREST PRODUCTS - 0.4%
1,677,375 Koch Cellulose, LLC ............................ Ba3 BB 5.59%-5.77% 5/07/11 1,682,966
-------------
PAPER PRODUCTS - 0.4%
1,945,152 Solo Cup Company ............................... B1 B+ 6.52%-6.72% 2/27/11 1,954,877
-------------
TOTAL PAPER & FOREST PRODUCTS 3,637,843
-------------
PHARMACEUTICALS - 1.6%
PHARMACEUTICALS - 1.6%
7,549,511 Warner Chilcott Corp. .......................... B2 B 6.77%-7.01% 1/18/12 7,537,379
-------------
TOTAL PHARMACEUTICALS 7,537,379
-------------
REAL ESTATE - 11.9%
REAL ESTATE INVESTMENT TRUSTS - 2.8%
937,368 Lion Gables Realty, L.P. ....................... Ba2 BB+ 5.84% 9/30/06 940,689
922,222 Maguire Properties, Inc. ....................... Ba2 BB 5.84% 3/15/10 927,218
9,523,077 The Macerich Partnership, L.P. ................. NR NR(a) 5.85% 4/26/06 9,523,077
2,000,000 The Macerich Partnership, L.P. ................. NR NR(a) 7.50% 4/26/10 2,008,334
-------------
13,399,318
-------------
REAL ESTATE MANAGEMENT & DEVELOPMENT - 9.1%
1,881,241 CB Richard Ellis Services, Inc. ................ Ba3 B+ 5.62%-6.54% 3/31/10 1,895,351
6,915,354 General Growth Properties, Inc. ................ Ba2 BB+ 5.87% 11/12/07 6,927,456
2,980,772 General Growth Properties, Inc. ................ Ba2 BB+ 6.22% 11/12/08 2,997,167
1,000,000 Kuilima Resort Company (c) ..................... NR(a) NR(a) 10.72% 9/30/11 1,005,000
6,859,790 LNR Property Corp. ............................. B2 B+ 7.09%-7.26% 2/03/08 6,884,286
12,000,000 LNR Property Corp.,
(Mezzanine Debt) (d) (e) .................... NR NR 8.59%-8.76% 2/03/08 12,075,000
4,985,000 Palmdale Hills Property, LLC ................... B1 B+ 7.16%-7.24% 5/19/10 4,960,075
3,000,000 Pivotal Promontory, LLC ........................ NR(a) NR(a) 6.97% 8/31/10 3,000,000

Page 12 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2005 (UNAUDITED)

SENIOR FLOATING RATE TERM LOAN INTERESTS**- CONTINUED

REAL ESTATE- (CONTINUED)
REAL ESTATE MANAGEMENT & DEVELOPMENT - (CONTINUED)
$ 791,284 The Newkirk Master
Limited Partnership ......................... NR(a) NR(a) 5.71%-7.50% 8/11/08 $ 796,724
2,000,000 The Rhodes Companies, LLC ...................... Ba3 B+ 7.39% 11/21/10 1,970,000
1,000,000 Yellowstone Development, LLC ................... NR(a) NR(a) 6.60% 9/30/10 1,000,000
-------------
43,511,059
-------------
TOTAL REAL ESTATE 56,910,377
-------------
SPECIALTY RETAIL - 2.4%
APPAREL RETAIL - 0.4%
1,000,000 The Neiman Marcus Group, Inc. .................. B1 B+ 6.48% 4/06/13 1,003,636
937,500 The William Carter Company ..................... B1 BB 5.65%-5.81% 7/14/12 946,875
-------------
1,950,511
-------------
SPECIALTY STORES - 2.0%
1,985,000 Dollarama Group L.P. ........................... NR(a) NR(a) 6.49% 11/18/11 2,012,294
4,350,651 Harbor Freight Tools USA, Inc. ................. NR(a) NR(a) 6.62%-6.65% 7/15/10 4,389,807
3,000,000 TravelCenters of America, Inc. ................. B1 BB 5.62%-5.77% 12/01/11 3,030,000
-------------
9,432,101
-------------
TOTAL SPECIALTY RETAIL 11,382,612
-------------
TRANSPORTATION INFRASTRUCTURE - 1.4%
MARINE PORTS & SERVICES - 1.4%
4,907,651 Horizon Lines Holding LLC ...................... B2 B+ 6.27% 7/07/11 4,958,774
2,000,000 Sirva Worldwide, Inc. .......................... B2 B+ 8.08%-8.10% 12/08/10 1,903,334
-------------
TOTAL TRANSPORTATION INFRASTRUCTURE 6,862,108
-------------
WIRELESS TELECOMMUNICATION SERVICES - 2.3%
WIRELESS TELECOMMUNICATION SERVICES - 2.3%
4,000,000 AAT Communications Corp. ....................... B1 BB+ 6.16% 7/27/12 4,047,500
3,000,000 MetroPCS Wireless, Inc. ........................ NR NR 8.25% 5/31/11 3,072,501
4,000,000 Nextel Partners, Inc. .......................... Ba3 B+ 5.37% 5/31/12 4,010,832
-------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 11,130,833
-------------

TOTAL SENIOR FLOATING RATE TERM LOAN INTERESTS** ............................................... 697,696,471
-------------
(Cost $695,728,677)

SENIOR FLOATING RATE NOTES - 4.8%

HEALTH CARE PROVIDERS & SERVICES - 1.0%
HEALTH CARE FACILITIES - 0.5%
2,500,000 Select Medical
Holdings Corp. (d) (f) ...................... B1 B+ 9.93% 9/15/15 2,475,000
-------------
HEALTH CARE SERVICES - 0.5%
2,500,000 US Oncology Holdings, Inc. (d) (f) ............. Caa1 B- 9.26% 3/15/15 2,433,250
-------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 4,908,250
-------------

See Notes to Financial Statements. Page 13

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2005 (UNAUDITED)

SENIOR FLOATING RATE NOTES - CONTINUED

HOUSEHOLD DURABLES - 0.6%
HOMEBUILDING - 0.6%
$ 3,000,000 Builders Firstsource, Inc. (c) (f) ............. B3 B- 8.04% 2/15/12 $ 3,023,280
-------------
TOTAL HOUSEHOLD DURABLES 3,023,280
-------------
MEDIA - 2.3%
BROADCASTING & CABLE TV - 1.9%
3,000,000 Intelsat, Ltd. (d) (f) ......................... B2 B+ 8.70% 1/15/12 3,045,000
6,000,000 Paxson Communications Corp. (f) ................ B1 B 6.90% 1/15/10 6,067,500
-------------
9,112,500
-------------
MOVIES & ENTERTAINMENT - 0.4%
2,000,000 AMC Entertainment, Inc. (f) .................... B2 B- 8.59% 8/15/10 2,060,000
-------------
TOTAL MEDIA 11,172,500
-------------
PHARMACEUTICALS - 0.9%
PHARMACEUTICALS - 0.9%
4,500,000 Elan Finance PLC (d) (f) ....................... B3 B 7.79% 11/15/11 4,162,500
-------------
TOTAL PHARMACEUTICALS 4,162,500
-------------

TOTAL SENIOR FLOATING RATE NOTES ............................................................... 23,266,530
-------------
(Cost $23,025,113)

REPURCHASE AGREEMENT - 4.1%
(Cost $19,600,000)

19,600,000 Agreement with Wachovia Capital Markets, LLC, 3.96% dated 11/30/05, to be
repurchased at $19,602,156 on 12/01/05, collateralized by $19,960,000
Federal Home Loan Bank, 4.27%, due 11/16/07 (Value $20,024,364) 19,600,000
-------------

TOTAL INVESTMENTS - 154.2% ..................................................................... 740,563,001
(Cost $738,353,790) (b)

NET OTHER ASSETS AND LIABILITIES - 1.2% ........................................................ 5,728,405
-------------

LOAN OUTSTANDING - (34.6)% ..................................................................... (166,000,000)
-------------
PREFERRED SHARES, AT LIQUIDATION VALUE - (20.8)% ............................................... (100,000,000)
-------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS - 100.0% .......................................... $ 480,291,406
=============

--------------
o All percentages shown in the Portfolio of Investments are based on
net assets applicable to Common Shares.
(a) This Senior Loan Interest was privately rated upon issuance. The
rating agency does not provide ongoing surveillance on the rating.
(b) Aggregate cost for federal income tax and financial reporting
purposes.
(c) This issue is secured by a second lien on the issuer's assets.
(d) This issue is unsecured.
(e) This issue's security interest is subordinated to other debt
holders.
(f) Securities are restricted and cannot be offered for public sale
without first being registered under the Securities Act of 1933, as
amended (Note 2E).
(g) This borrower has filed for protection in a federal bankruptcy
court.
+ Ratings below Baa3 by Moody's Investors Service, Inc. or BBB- by
Standard & Poor's Ratings Group are considered to be below
investment grade.
NR Not Rated

Page 14 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2005 (UNAUDITED)

* Senior Loans generally are subject to mandatory and/or optional
prepayment. Because of the mandatory prepayment conditions and
because there may be significant economic incentives for a borrower
to optionally prepay, prepayments of Senior Loans may occur. As a
result, the actual remaining maturity of Senior Loans may be
substantially less than the stated maturities shown. Senior Loans
generally have maturities that range from five to eight years;
however, the Fund estimates that refinancing and prepayments result
in an average maturity of the Senior Loans held in its portfolio to
be approximately 18-30 months.
** Senior Loans in which the Fund invests generally pay interest at
rates which are periodically predetermined by reference to a base
lending rate plus a premium. These base lending rates are generally
(i) the lending rate offered by one or more major European banks,
such as the London Inter-Bank Offered Rate ("LIBOR"), (ii) the prime
rate offered by one or more major United States banks or (iii) the
certificate of deposit rate.

See Notes to Financial Statements. Page 15

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 2005 (UNAUDITED)

ASSETS:
Investments, at value
(Cost $738,353,790) ........................................................................... $ 740,563,001
Cash ............................................................................................. 2,275,358
Prepaid expenses ................................................................................. 45,121
Receivables:
Investment securities sold ................................................................. 8,188,178
Interest ................................................................................... 6,237,510
-------------
Total Assets ............................................................................... 757,309,168
-------------
LIABILITIES:
Payables:
Outstanding loan ........................................................................... 166,000,000
Investment securities purchased ............................................................ 9,799,085
Interest and fees due on loan .............................................................. 654,775
Investment advisory fees ................................................................... 464,905
Accumulated unpaid dividends on Auction Market Preferred Shares ............................ 51,042
Administrative fees ........................................................................ 30,959
Offering costs ............................................................................. 2,998
Accrued expenses and other liabilities ........................................................... 13,998
-------------
Total Liabilities ............................................................................. 177,017,762
-------------
AUCTION MARKET PREFERRED SHARES:
($0.01 par value, 4,000 shares issued with liquidation preference of $25,000 per share) .......... 100,000,000

NET ASSETS (APPLICABLE TO COMMON SHAREHOLDERS) ................................................... 480,291,406
-------------

NET ASSETS INCLUDING AUCTION MARKET PREFERRED SHARES ............................................. $ 580,291,406
=============
NET ASSETS CONSIST OF:
Undistributed net investment income .............................................................. $ 1,841,380
Accumulated net realized loss on investments sold ................................................ (4,102,568)
Net unrealized appreciation of investments ....................................................... 2,209,211
Par value ........................................................................................ 252,728
Paid-in capital .................................................................................. 480,090,655
-------------
Net Assets (Applicable to Common Shareholders) ................................................ $ 480,291,406
=============

NET ASSET VALUE, applicable to Common Shares outstanding
(par value $0.01 per Common Share) ............................................................ $ 19.00
=============
Number of Common Shares outstanding .............................................................. 25,272,768
=============

Page 16 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 2005 (UNAUDITED)

INVESTMENT INCOME:
Interest ......................................................................................... $ 24,424,107
Other ............................................................................................ 227,951
-------------
Total investment income .................................................................... 24,652,058
-------------
EXPENSES:
Interest and fees on outstanding loan payable .................................................... 3,414,377
Investment advisory fees ......................................................................... 2,816,445
Administration fees .............................................................................. 187,813
Auction Market Preferred Shares commission fees .................................................. 127,315
Audit and legal fees ............................................................................. 85,555
Custodian fees ................................................................................... 50,897
Trustees' fees and expenses ...................................................................... 21,076
Other ............................................................................................ 135,824
-------------
Total expenses ................................................................................ 6,839,302
-------------
NET INVESTMENT INCOME ............................................................................ 17,812,756
-------------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS:
Realized gain/(loss) on investments during the period ............................................ (3,364,189)
Net change in unrealized appreciation/(depreciation) of investments during the period ............ 3,810,093
-------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS .................................................. 445,904
-------------
AUCTION MARKET PREFERRED SHARE DIVIDENDS ......................................................... (1,785,866)
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................................. $ 16,472,794
=============

See Notes to Financial Statements. Page 17

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
STATEMENTS OF CHANGES IN NET ASSETS

SIX MONTHS
ENDED PERIOD
11/30/05 ENDED
(UNAUDITED) 5/31/2005
------------- -------------

OPERATIONS:
Net investment income ........................................................................... $ 17,812,756 $ 23,973,237
Net realized gain/(loss) on investments during the period ....................................... (3,364,189) 807,812
Net change in unrealized appreciation/(depreciation) of investments during the period ........... 3,810,093 (1,120,791)
Distributions to Preferred Shareholders:
Dividends paid from net investment income .................................................... (1,785,866) (1,874,287)
------------- -------------
Net increase in net assets resulting from operations ............................................ 16,472,794 21,785,971

DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Dividends paid from net investment income .................................................... (14,966,533) (22,864,118)
------------- -------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
APPLICABLE TO COMMON SHARES .................................................................. 1,506,261 (1,078,147)
------------- -------------
CAPITAL TRANSACTIONS:
Value of 42,532 shares reinvested ............................................................... -- 809,437
Net proceeds from sale of 2,225,000 Common Shares ............................................... -- 41,108,540
------------- -------------
Total capital transactions ...................................................................... -- 41,917,977
------------- -------------
Net increase in net assets ...................................................................... 1,506,261 40,839,830

NET ASSETS (APPLICABLE TO COMMON SHAREHOLDERS):
Beginning of period ............................................................................. 478,785,145 437,945,315
------------- -------------
End of period ................................................................................... $ 480,291,406 $ 478,785,145
============= =============
Undistributed net investment income at end of period ............................................ $ 1,841,380 $ 781,023
============= =============

Page 18 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 2005 (UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase in net assets resulting from operations ................................. $ 16,472,794
Adjustments to reconcile net increase in net assets resulting
from operations to net cash provided by operating activities:
Changes in assets and liabilities:
Decrease in investments, at value* ................................................... 13,231,817
Increase in interest receivable ...................................................... (1,047,982)
Increase in prepaid expenses ......................................................... (29,623)
Decrease in receivable for investment securities sold ................................ 8,320,831
Decrease in payable for investment securities purchased .............................. (4,345,077)
Decrease in accumulated unpaid dividends on Auction Market Preferred Shares .......... (71,262)
Increase in interest and fees due on loan ............................................ 109,820
Decrease in investment advisory fees payable ......................................... (19,492)
Decrease in administrative fees payable .............................................. (1,245)
Decrease in accrued expenses and other liabilities ................................... (295,180)
-------------
CASH PROVIDED BY OPERATING ACTIVITIES ................................................... $ 32,325,401

CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to Common Shareholders from net investment income ...................... (14,966,533)
Decrease in loan outstanding ......................................................... (21,000,000)
-------------
CASH USED BY FINANCING ACTIVITIES ....................................................... (35,966,533)
-------------
Decrease in cash ........................................................................ (3,641,132)
Cash at beginning of period ............................................................. 5,916,490
-------------

CASH AT END OF PERIOD ................................................................... $ 2,275,358
=============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest ............................................. $ 3,304,557

----------
* Includes net change in unrealized appreciation on investments of
$3,810,093.

See Notes to Financial Statements. Page 19

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
FINANCIAL HIGHLIGHTS
FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD

SIX MONTHS
ENDED YEAR PERIOD
11/30/2005 ENDED ENDED
(UNAUDITED) 5/31/2005 5/31/2004*
----------- ---------- -----------

Net asset value, beginning of period ....................................... $ 18.94 $ 19.04 $ 19.10
----------- ---------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss) ............................................... 0.70 0.95 (0.00)#
Net realized and unrealized gain/(loss) on investments ..................... 0.02 (0.02) (0.02)
Distributions paid to AMP*** Shareholders:
Dividends paid from net investment income ............................... (0.07) (0.07) --
----------- ---------- -----------
Total from investment operations ........................................... 0.65 0.86 (0.02)
----------- ---------- -----------
DISTRIBUTIONS PAID TO COMMON SHAREHOLDERS:
Dividends paid from net investment income ............................... (0.59) (0.91) --
----------- ---------- -----------
Dilutive impact from the offering of AMP Shares++ .......................... -- (0.05) --
----------- ---------- -----------
Common Share offering costs charged to paid-in capital ..................... -- -- (0.04)
----------- ---------- -----------
Net asset value, end of period ............................................. $ 19.00 $ 18.94 $ 19.04
=========== ========== ===========
Market value, end of period ................................................ $ 16.73 $ 17.89 $ 20.01
=========== ========== ===========
TOTAL RETURN BASED ON NET ASSET VALUE (A)+ ................................. 3.77% 4.38% (0.31)%
=========== ========== ===========
TOTAL RETURN BASED ON MARKET VALUE (B)+ .................................... (3.26)% (6.20)% 0.05%
=========== ========== ===========

RATIOS TO AVERAGE NET ASSETS AVAILABLE TO COMMON SHAREHOLDERS:
Ratio of expenses to average net assets excluding interest expense ......... 1.42%** 1.30% 1.44%**
Ratio of expenses to average net assets .................................... 2.83%** 2.02% --
Ratio of net investment income/(loss) to average net assets ................ 7.38%** 5.01% (0.76)%**
Ratio of net investment income to average net assets
net of AMP dividends (f) ................................................. 6.67%** 4.59% N/A

SUPPLEMENTAL DATA:
Portfolio turnover rate .................................................... 28.27% 115.24% 0.00%
Net assets, end of period (in 000's) ....................................... $ 480,291 $ 478,785 $ 437,945
----------------------------------------------------------------------------
Ratio of expenses to total average Managed Assets excluding interest
expense .................................................................... 0.91%** 0.92% 1.44%**
Ratio of expenses to total average Managed Assets .......................... 1.82%** 1.43% N/A

SENIOR SECURITIES:
Total AMP Shares Outstanding ............................................... 4,000 4,000 N/A
Liquidation and market value per AMP share (c) ............................. $ 25,013 $ 25,031 N/A
Asset coverage per share (d) ............................................... $ 186,573 $ 191,446 N/A
Loan outstanding (in 000's) ................................................ $ 166,000 $ 187,000 N/A
Asset coverage per $1,000 of loan outstanding (e) .......................... $ 4,496 $ 4,095 N/A
----------------------------------------------------------------------------

* The Fund commenced operations on May 18, 2004.
** Annualized.
*** Auction Market Preferred Shares.
(a) Total return based on net asset value is the combination of reinvested
dividend distributions and reinvested capital gains distributions, if any,
at prices obtained by the Dividend Reinvestment Plan and changes in net
asset value per share and does not reflect sales load.
(b) Total return based on market value is the combination of reinvested
dividend distributions and reinvested capital gains distributions, if any,
at prices obtained by the Dividend Reinvestment Plan and changes in Common
Share market price per share, all based on Common Share market price per
share.
(c) Includes accumulated and unpaid dividends.
(d) Calculated by subtracting the Fund's total liabilities (not including the
AMP Shares and loan outstanding) from the Fund's total assets, and
dividing this by the number of AMP Shares outstanding.
(e) Calculated by subtracting the Fund's total liabilities (not including the
AMP Shares and loan outstanding) from the Fund's total assets, and
dividing this by the amount of loan outstanding.
(f) The net investment income ratio reflects income net of operating expenses
and payments and changes in unpaid dividends to AMP Shareholders.
+ Total return is not annualized for periods less than one year.
++ The expenses associated with the offering of the AMP Shares had a $(0.05)
impact on the Common Share NAV.
N/A Not Applicable

Page 20 See Notes to Financial Statements.

--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
NOVEMBER 30, 2005 (UNAUDITED)

1. FUND DESCRIPTION

First Trust/Four Corners Senior Floating Rate Income Fund II (the "Fund") is a
diversified, closed-end management investment company organized as a
Massachusetts business trust on March 25, 2004, and is registered with the
Securities and Exchange Commission ("SEC") under the Investment Company Act of
1940, as amended (the "1940 Act"). The Fund trades under the ticker symbol FCT
on the New York Stock Exchange ("NYSE").

The Fund's primary investment objective is to seek a high level of current
income. As a secondary objective, the Fund will attempt to preserve capital. The
Fund will pursue these objectives through investment in a portfolio of senior
secured floating rate corporate loans ("Senior Loans"). There can be no
assurance that the Fund will achieve its investment objectives. Investment in
Senior Loans involves credit risk and, during periods of generally declining
credit quality, it may be particularly difficult for the Fund to achieve its
secondary investment objective. The Fund may not be appropriate for all
investors.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates.

A. PORTFOLIO VALUATION:

The net asset value ("NAV") of the Common Shares of the Fund is computed based
upon the value of the Fund's portfolio and other assets. The NAV is determined
as of the close of regular trading on the NYSE, normally 4:00 p.m. Eastern time,
on each day the NYSE is open for trading. Domestic debt securities and foreign
securities are priced using data reflecting the earlier closing of the principal
markets for those securities. The Fund calculates NAV per Common Share by
subtracting the Fund's liabilities (including accrued expenses, dividends
payable and any borrowings of the Fund) and the liquidation value of any
outstanding Preferred Shares from the Fund's Managed Assets (the value of
securities and other investments the Fund holds plus cash or other assets,
including interest accrued but not yet received) and dividing the result by the
total number of Common Shares outstanding.

The Fund's investments are valued daily at market value or, in the absence of
market value with respect to any portfolio securities, at fair value according
to procedures adopted by the Fund's Board of Trustees. A majority of the Fund's
assets are valued using market information supplied by third parties. In the
event that market quotations are not readily available, the pricing service does
not provide a valuation for a particular asset, or the valuations are deemed
unreliable, or if events occurring after the close of the principal markets for
particular securities (e.g., domestic debt and foreign securities), but before
the Fund values its assets, would materially affect NAV, First Trust Advisors
L.P. ("First Trust") may use a fair value method to value the Fund's securities
and investments. The use of fair value pricing by the Fund is governed by
valuation procedures adopted by the Fund's Board of Trustees, and in accordance
with the provisions of the 1940 Act.

The Senior Loans in which the Fund invests are not listed on any securities
exchange or board of trade. Senior Loans are typically bought and sold by
institutional investors in individually negotiated private transactions that
function in many respects like an over-the-counter secondary market, although
typically no formal market-makers exist. This market, while having grown
substantially in the past several years, generally has fewer trades and less
liquidity than the secondary market for other types of securities. Some Senior
Loans have few or no trades, or trade infrequently, and information regarding a
specific Senior Loan may not be widely available or may be incomplete.
Accordingly, determinations of the market value of Senior Loans may be based on
infrequent and dated information. Because there is less reliable, objective data
available, elements of judgment may play a greater role in valuation of Senior
Loans than for other types of securities. Typically, Senior Loans are valued
using information provided by an independent third party pricing service. If the
pricing service cannot or does not provide a valuation for a particular Senior
Loan or such valuation is deemed unreliable, First Trust may value such Senior
Loan at a fair value according to procedures adopted by the Fund's Board of
Trustees, and in accordance with the provisions of the 1940 Act.

Portfolio securities listed on any exchange other than the NASDAQ National
Market ("NASDAQ") are valued at the last sale price on the business day as of
which such value is being determined. If there has been no sale on such day, the
securities are valued at the mean of the most recent bid and asked prices on
such day. Securities traded on the NASDAQ are valued at the NASDAQ Official
Closing Price as determined by NASDAQ. Portfolio securities traded on more than
one securities exchange are valued at the last sale price on the business day as
of which such value is being determined at the close of the exchange
representing the principal market for such securities. Portfolio securities
traded in the over-the-counter market, but excluding securities traded on the
NASDAQ, are valued at the closing bid prices. Short-term investments that mature
in less than 60 days are valued at amortized cost.

Page 21

--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
--------------------------------------------------------------------------------

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
NOVEMBER 30, 2005 (UNAUDITED)

B. REPURCHASE AGREEMENTS:

The Fund engages in repurchase agreement transactions. Under the terms of a
typical repurchase agreement, the Fund takes possession of an underlying debt
obligation subject to an obligation of the seller to repurchase, and the Fund to
resell, the obligation at an agreed-upon price and time, thereby determining the
yield during the Fund's holding period. This arrangement results in a fixed rate
of return that is not subject to market fluctuations during the Fund's holding
period. The value of the collateral is at all times at least equal to the total
amount of the repurchase obligation, including interest. In the event of
counterparty default, the Fund has the right to use the collateral to offset
losses incurred. There is potential loss to the Fund in the event the Fund is
delayed or prevented from exercising its rights to dispose of the collateral
securities, including the risk of a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights. The Fund reviews the value of the collateral and the creditworthiness of
those banks and dealers with which the Fund enters into repurchase agreements to
evaluate potential risks.

C. SECURITIES TRANSACTIONS AND INVESTMENT INCOME:

Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Interest income is recorded on the accrual basis. Market premiums and discounts
are amortized over the expected life of each respective borrowing.

Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date; interest income on such securities
is not accrued until settlement date. The Fund instructs the custodian to
segregate assets of the Fund with a current value at least equal to the amount
of its when-issued purchase commitments.

D. UNFUNDED LOAN COMMITMENTS:

The Fund may enter into certain credit agreements, all or a portion of which may
be unfunded. The Fund had unfunded loan commitments of approximately $6,267,764
as of November 30, 2005. The Fund is obligated to fund these loan commitments at
the borrower's discretion. Net unrealized depreciation of $64,955 from these
commitments is included in "Accrued expenses and other liabilities" on the
Statement of Assets and Liabilities.

E. RESTRICTED SECURITIES:

The Fund may invest a portion of its assets in restricted securities. Restricted
securities are securities that cannot be offered for public sale without first
being registered under the Securities Act of 1933, as amended. The Fund
currently holds the restricted securities shown in the following table. These
securities are valued using market quotations according to the valuation
procedures as stated in the Portfolio Valuation section (Note 2A) and are not
expressed as a discount to the carrying value of a comparable unrestricted
security. There are no unrestricted securities with the same maturity dates and
yields for these issuers.

CARRYING COST
ACQUISITION PRINCIPAL CARRYING AT ACQUISITION MARKET % OF
SECURITY DATE VALUE VALUE DATE VALUE NET ASSETS
-------------------------------------------------------------------------------------------------------------------

AMC Entertainment, Inc. 9/20/05 $ 2,000,000 103.00 102.25 $ 2,060,000 0.43%
Builders Firstsource, Inc. 2/8/05 3,000,000 100.78 100.00 3,023,280 0.63%
Elan Finance PLC 3/2/05 3,000,000 92.50 86.50 2,775,000 0.58%
Elan Finance PLC 3/31/05 1,000,000 92.50 75.75 925,000 0.19%
Elan Finance PLC 8/9/05 500,000 92.50 90.50 462,500 0.10%
Intelsat, Ltd. 2/14/05 3,000,000 101.50 103.50 3,045,000 0.63%
Paxson Communications Corp. 6/3/04 1,000,000 101.13 100.13 1,011,250 0.21%
Paxson Communications Corp. 6/2/04 2,000,000 101.13 100.13 2,022,500 0.42%
Paxson Communications Corp. 6/16/04 1,000,000 101.13 100.75 1,011,250 0.21%
Paxson Communications Corp. 10/15/04 2,000,000 101.13 100.94 2,022,500 0.42%
Select Medical Holdings Corp. 9/16/05 1,500,000 99.00 100.00 1,485,000 0.31%
Select Medical Holdings Corp. 9/19/05 1,000,000 99.00 100.25 990,000 0.21%
US Oncology Holdings, Inc. 8/4/05 1,000,000 97.33 96.50 973,300 0.20%
US Oncology Holdings, Inc. 8/5/05 1,500,000 97.33 96.63 1,459,950 0.30%
------------ ------------ ----
$ 23,500,000 $ 23,266,530 4.84%
============ ============ ====

Page 22

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
NOVEMBER 30, 2005 (UNAUDITED)

F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:

The Fund will distribute to holders of its Common Shares monthly dividends of
all or a portion of its net income after the payment of interest and dividends
in connection with the financing associated with leverage. If the Fund
recognizes a long-term capital gain, it will be required to allocate such gain
between the Common Shares and Auction Market Preferred Shares ("AMP Shares")
issued by the Fund in proportion to the total dividends paid for the year.
Distributions will automatically be reinvested into additional Common Shares
pursuant to the Fund's Dividend Reinvestment Plan unless cash distributions are
elected by the shareholder.

Distributions from income and capital gains are determined in accordance with
income tax regulations, which may differ from accounting principles generally
accepted in the United States of America. These differences are primarily due to
differing treatments of income and gains on various investment securities held
by the Fund, timing differences and differing characterization of distributions
made by the Fund.

The tax character of distributions paid during the fiscal year ended May 31,
2005 was as follows:

2005
-------------
Distributions paid from:

Ordinary Income .......................... $ 24,738,405

As of May 31, 2005, the components of distributable earnings on a tax basis were
as follows:

Undistributed Ordinary Income ............ $ 1,499,092
Net Unrealized Depreciation .............. $ (2,494,455)

G. INCOME TAXES:

The Fund intends to continue to qualify as a regulated investment company by
complying with the requirements under Subchapter M of the Internal Revenue Code
of 1986, as amended, and by distributing substantially all of its net investment
income and net realized gains to shareholders. Accordingly, no provision has
been made for federal or state income taxes.

H. EXPENSES:

The Fund will pay all expenses directly related to its operations.

I. COMMON SHARE ORGANIZATION AND OFFERING COSTS:

Organization costs consist of costs incurred to establish the Fund and enable it
to legally do business. These costs include filing fees, listing fees, legal
services pertaining to the organization of the business and audit fees relating
to the initial registration and auditing the initial statement of assets and
liabilities, among other fees. Offering costs consist of legal fees pertaining
to the Fund's shares offered for sale, registration fees, underwriting fees, and
printing of the initial prospectus, among other fees. First Trust and Four
Corners Capital Management, LLC ("Four Corners" or the "Sub-Advisor") have paid
all organization expenses and all offering costs of the Fund (other than sales
load) that exceeded $0.04 per Common Share. The Fund's estimated share of Common
Share offering costs, $920,000 and $89,209, in fiscal years 2004 and 2005,
respectively, was recorded as a reduction of the proceeds from the sale of
Common Shares.

3. INVESTMENT ADVISORY FEE AND OTHER AFFILIATED TRANSACTIONS

First Trust is a limited partnership with one limited partner, Grace Partners of
DuPage, L.P., and one general partner, The Charger Corporation. First Trust
serves as investment advisor to the Fund pursuant to an Investment Management
Agreement. First Trust is responsible for the ongoing monitoring of the Fund's
investment portfolio, managing the Fund's business affairs and certain
administrative services necessary for the management of the Fund. For these
services, First Trust is entitled to a monthly fee calculated at an annual rate
of 0.75% of the Fund's Managed Assets, the average daily gross asset value of
the Fund minus the sum of the Fund's accrued and unpaid dividends on any
outstanding AMP Shares and accrued liabilities.

Page 23

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
NOVEMBER 30, 2005 (UNAUDITED)

Four Corners serves as the Fund's sub-advisor and manages the Fund's portfolio
subject to First Trust's supervision. Four Corners receives a portfolio
management fee of 0.38% of Managed Assets that is paid monthly by First Trust
from its investment advisory fee.

PFPC Inc. ("PFPC"), an indirect, majority-owned subsidiary of The PNC Financial
Services Group, Inc., serves as the Fund's Administrator and Transfer Agent in
accordance with certain fee arrangements. PFPC Trust Company, an indirect,
majority-owned subsidiary of The PNC Financial Services Group, Inc., serves as
the Fund's Custodian in accordance with certain fee arrangements.

Deutsche Bank Trust Company Americas, a wholly-owned subsidiary of Deutsche Bank
AG ("Auction Agent"), serves as the Fund's AMP Share transfer agent, registrar,
dividend disbursing agent and redemption agent.

The Fund pays each Trustee who is not an officer or employee of First Trust or
any of its affiliates an annual retainer of $10,000, which includes compensation
for all regular quarterly board meetings and regular committee meetings. No
additional meeting fees are paid in connection with regular quarterly board
meetings or regular committee meetings. Additional fees of $1,000 and $500 are
paid to non-interested Trustees for special board meetings and non-regular
committee meetings, respectively. These additional fees are shared by the funds
in the First Trust fund complex that participate in the particular meeting and
are not per fund fees. Trustees are also reimbursed for travel and out-of-pocket
expenses in connection with all meetings.

4. PURCHASES AND SALES OF SECURITIES

Cost of purchases and proceeds from sales of investment securities, excluding
short-term investments, for the six months ended November 30, 2005, were
$211,890,328 and $252,834,557, respectively.

As of November 30, 2005, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was $3,713,348
and the aggregate gross unrealized depreciation for all securities in which
there was an excess of tax cost over value was $1,504,137.

5. COMMON SHARES

As of November 30, 2005, 25,272,768 of $0.01 par value Common Shares were
issued. An unlimited number of Common Shares have been authorized under the
Fund's Dividend Reinvestment Plan.

COMMON SHARE TRANSACTIONS WERE AS FOLLOWS:

SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, 2005 MAY 31, 2005
----------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
------- ------- ----------- ------------

Proceeds from shares sold ....................... -- $ -- 2,225,000 $ 42,497,500
Issued as reinvestment of dividends
under the Dividend Reinvestment Plan ......... -- -- 42,532 809,437
Offering Cost Common Shares ..................... -- -- -- (89,209)
Offering Cost AMP Shares ........................ -- -- -- (1,299,751)
------- ------- ----------- ------------
-- $ -- 2,267,532 $ 41,917,977
======= ======= =========== ============

6. AUCTION MARKET PREFERRED SHARES

The Fund's Declaration of Trust authorizes the issuance of an unlimited number
of preferred shares of beneficial interest, par value $0.01 per share, in one or
more classes or series, with rights as determined by the Board of Trustees
without the approval of Common Shareholders. As of November 30, 2005, the Fund
has 2,000 Series A and 2,000 Series B Auction Market Preferred Shares ("AMP
Shares") outstanding at a liquidation value of $25,000 per share. The AMP Shares
offering costs of $299,751 and commissions of $1,000,000, paid directly to
Lehman Brothers, were charged to capital of Common Shares for the year ended May
31, 2005.

The Fund is required to meet certain asset coverage tests with respect to the
AMP Shares. If the Fund fails to maintain Eligible Assets having an aggregated
Discounted Value at least equal to the AMP Shares Basic Maintenance Amount as of
any Valuation Date and the failure is not cured on or before the related Asset
Coverage Cure Date, the Fund will be required in certain circumstances to redeem
certain AMP Shares.

Page 24

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
NOVEMBER 30, 2005 (UNAUDITED)

An auction of the Series A AMP Shares is generally held every 7 days and an
auction of the Series B AMP Shares is generally held every 28 days. Existing
shareholders may submit an order to hold, bid or sell such shares at par value
on each auction date.

The annual dividend rate in effect as of November 30, 2005 was 3.95% and 4.10%
for the Series A 7 day and Series B 28 day auctions, respectively. The dividend
rate, as set by the auction process, is generally expected to vary with
short-term interest rates. These rates may vary in a manner not related directly
to the income received on the Fund's assets, which could have either a
beneficial or detrimental impact on net investment income and gains available to
Common Shareholders.

Under Emerging Issues Task Force (EITF) promulgating Topic D-98, Classification
and Measurement of Redeemable Securities, which was issued on July 19, 2001,
preferred securities that are redeemable for cash or other assets are to be
classified outside of permanent equity to the extent that the redemption is at a
fixed or determinable price and at the option of the holder or upon the
occurrence of an event that is not solely within the control of the issuer.
Subject to guidance of the EITF, the Fund's AMP Shares are classified outside of
permanent equity (net assets attributable to Common Shares) in the accompanying
financial statements.

7. REVOLVING CREDIT FACILITY

On August 2, 2004, the Fund entered into a 364-Day Revolving Credit Facility
("Credit Facility") with various lenders and Citicorp North America Inc., as
agent, to be used as leverage for the Fund. On August 1, 2005, this Credit
Facility was amended to extend its expiration date to July 31, 2006. The Credit
Facility provides for a secured line of credit for the Fund, where Fund assets
are pledged against advances made to the Fund. Under the requirements of the
1940 Act, the Fund, immediately after any such borrowings, must have an "asset
coverage" of at least 300% (33-1/3% of the Fund's total assets after
borrowings). The total commitment under the Credit Facility is $195,000,000. For
the six months ended November 30, 2005, the average amount outstanding was
$167,759,563, with a weighted average interest rate of 3.54%. The Fund also pays
additional borrowing costs, which include an administration fee of 0.02%, a
program fee of 0.20% and a liquidity fee of 0.14% per year. Such expenses are
included in "Interest and fees on outstanding loan payable" on the Statement of
Operations.

8. SUBSEQUENT EVENTS

On November 21, 2005, the Fund declared a dividend of $0.111 per share, which
represents a dividend from net investment income to Common Shareholders of
record December 5, 2005, payable December 12, 2005.

On December 20, 2005, the Fund declared distributions totaling $0.1318 per
share, which represents a dividend from net investment income of $0.1148 and
short-term capital gains of $0.0170, to Common Shareholders of record December
30, 2005, payable January 17, 2006.

Page 25

--------------------------------------------------------------------------------
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
NOVEMBER 30, 2005 (UNAUDITED)

DIVIDEND REINVESTMENT PLAN

If your Common Shares are registered directly with the Fund or if you hold your
Common Shares with a brokerage firm that participates in the Fund's Dividend
Reinvestment Plan (the "Plan"), unless you elect, by written notice to the Fund,
to receive cash distributions, all dividends, including any capital gain
distributions, on your Common Shares will be automatically reinvested by PFPC
Inc. (the "Plan Agent"), in additional Common Shares under the Plan. If you
elect to receive cash distributions, you will receive all distributions in cash
paid by check mailed directly to you by PFPC Inc. as the dividend paying agent.

If you decide to participate in the Plan, the number of Common Shares you will
receive will be determined as follows:

(1) If the Common Shares are trading at or above net asset value ("NAV")
at the time of valuation, the Fund will issue new shares at a price
equal to the greater of (i) NAV per Common Share on that date or
(ii) 95% of the market price on that date.

(2) If the Common Shares are trading below NAV at the time of valuation,
the Plan Agent will receive the dividend or distribution in cash and
will purchase Common Shares in the open market, on the NYSE or
elsewhere, for the participants' accounts. It is possible that the
market price for the Common Shares may increase before the Plan
Agent has completed its purchases. Therefore, the average purchase
price per share paid by the Plan Agent may exceed the market price
at the time of valuation, resulting in the purchase of fewer shares
than if the dividend or distribution had been paid in Common Shares
issued by the Fund. The Plan Agent will use all dividends and
distributions received in cash to purchase Common Shares in the open
market within 30 days of the valuation date except where temporary
curtailment or suspension of purchases is necessary to comply with
federal securities laws. Interest will not be paid on any uninvested
cash payments.

You may elect to opt-out of or withdraw from the Plan at any time by giving
written notice to the Plan Agent, or by telephone at (800) 331-1710, in
accordance with such reasonable requirements as the Plan Agent and Fund may
agree upon. If you withdraw or the Plan is terminated, you will receive a
certificate for each whole share in your account under the Plan, and you will
receive a cash payment for any fraction of a share in your account. If you wish,
the Plan Agent will sell your shares and send you the proceeds, minus brokerage
commissions.

The Plan Agent maintains all Common Shareholders' accounts in the Plan and gives
written confirmation of all transactions in the accounts, including information
you may need for tax records. Common Shares in your account will be held by the
Plan Agent in non-certificated form. The Plan Agent will forward to each
participant any proxy solicitation material and will vote any shares so held
only in accordance with proxies returned to the Fund. Any proxy you receive will
include all Common Shares you have received under the Plan.

There is no brokerage charge for reinvestment of your dividends or distributions
in Common Shares. However, all participants will pay a pro rata share of
brokerage commissions incurred by the Plan Agent when it makes open market
purchases.

Automatically reinvesting dividends and distributions does not mean that you do
not have to pay income taxes due upon receiving dividends and distributions.
Capital gains and income are realized although cash is not received by you.
Consult your financial advisor for more information.

If you hold your Common Shares with a brokerage firm that does not participate
in the Plan, you will not be able to participate in the Plan and any dividend
reinvestment may be effected on different terms than those described above.

The Fund reserves the right to amend or terminate the Plan if in the judgment of
the Board of Trustees the change is warranted. There is no direct service charge
to participants in the Plan; however, the Fund reserves the right to amend the
Plan to include a service charge payable by the participants. Additional
information about the Plan may be obtained by writing PFPC Inc., 301 Bellevue
Parkway, Wilmington, Delaware 19809.

--------------------------------------------------------------------------------
PROXY VOTING POLICIES AND PROCEDURES

A description of the policies and procedures that the Fund uses to determine how
to vote proxies and information on how the Fund voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30 is
available (1) without charge, upon request, by calling (800) 988-5891; (2) on
the Fund's website located at http://www.ftportfolios.com; and (3) on the
Securities and Exchange Commission's website located at http://www.sec.gov.

Page 26

--------------------------------------------------------------------------------
ADDITIONAL INFORMATION - (CONTINUED)
--------------------------------------------------------------------------------

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
NOVEMBER 30, 2005 (UNAUDITED)

PORTFOLIO HOLDINGS

The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission ("SEC") for the first and third quarters of each fiscal
year on Form N-Q. The Fund's Forms N-Q are available (1) by calling (800)
988-5891; (2) on the Fund's website located at http://www.ftportfolios.com; (3)
on the SEC's website at http://www.sec.gov; and (4) for review and copying at
the SEC's Public Reference Room ("PRR") in Washington, DC. Information regarding
the operation of the PRR may be obtained by calling 1-800-SEC-0330.

SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS

The Joint Annual Meeting of Shareholders of First Trust Value Line(R) Dividend
Fund, First Trust/Four Corners Senior Floating Rate Income Fund, Macquarie/First
Trust Global Infrastructure/Utilities Dividend & Income Fund, First Trust/Value
Line(R) & Ibbotson Equity Allocation Fund, and First Trust/Four Corners Senior
Floating Rate Income Fund II was held on September 12, 2005. At the Annual
Meeting, three of the Fund's Trustees, consisting of James A. Bowen, Niel B.
Nielson and Richard E. Erickson, were elected by holders of Common and Preferred
Shares voting together as a single class, to serve an additional one-year term.
The number of votes cast for James A. Bowen was 21,905,036, the number of votes
withheld was 210,514 and the number of abstentions was 3,161,218. The number of
votes cast for Niel B. Nielson was 21,890,033, the number of votes withheld was
225,517 and the number of abstentions was 3,161,218. The number of votes cast
for Richard E. Erickson was 21,905,005, the number of votes withheld was 210,545
and the number of abstentions was 3,161,218.

Also at the Annual Meeting of Shareholders of the Fund, two of the Fund's
Trustees, Thomas R. Kadlec and David M. Oster, were elected by the holders of
AMP Shares to serve an additional one year term. The number of votes cast for
each Trustee was 1,465, the number withheld was 40 and the number of abstentions
was 2,495.

BY-LAW AMENDMENT

On December 12, 2005, the Board of Trustees of the Fund approved certain changes
to the By-Laws of the Fund that may have the effect of delaying or preventing a
change of control of the Fund. To receive a copy of the revised By-Laws,
investors may call the Fund at (800) 988-5891.

Page 27

This Page Left Blank Intentionally.

ITEM 2. CODE OF ETHICS.

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Schedule of Investments in securities of unaffiliated issures as of the close of
the reporting period is included as part of the report to shareholders filed
under item 1 of this form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not yet applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

On December 12, 2005, the Registrant's Board of Trustees adopted an
Amended Nominating and Governance Committee Charter which included some material
changes to the procedures by which shareholders may recommend nominees to the
Registrant's board of trustees as described below:

Any proposal to elect any person nominated by shareholders for election
as trustee may only be brought before an annual meeting of the Registrant if
timely written notice (the "Shareholder Notice") is provided to the secretary of
the Registrant. Unless a greater or lesser period is required under applicable
law, to be timely, the Shareholder Notice must be delivered to or mailed and
received at Registrant's address, 1001 Warrenville Road, Suite 300, Lisle,
Illinois 60532, Attn: W. Scott Jardine, not less than forty-five (45) days nor
more than sixty (60) days prior to the first anniversary date of the date of the
Registrant's proxy statement released to shareholders for the prior year's
annual meeting; provided, however, if and only if the annual meeting is not
scheduled to be held within a period that commences thirty (30) days before the
first anniversary date of the annual meeting for the preceding year and ends
thirty (30) days after such anniversary date (an annual meeting date outside
such period being referred to herein as an "Other Annual Meeting Date"), such
Shareholder Notice must be given in the manner provided herein by the later of
the close of business on (i) the date forty-five (45) days prior to such Other
Annual Meeting Date or (ii) the tenth (10th) business day following the date
such Other Annual Meeting Date is first publicly announced or disclosed.

Any shareholder submitting a nomination of any person or persons (as
the case may be) for election as a trustee or trustees of the Registrant shall
deliver, as part of such Shareholder Notice: (i) a statement in writing setting
forth (A) the name, age, date of birth, business address, residence address and
nationality of the person or persons to be nominated; (B) the class or series
and number of all shares of the Registrant owned of record or beneficially by
each such person or persons, as reported to such shareholder by such nominee(s);
(C) any other information regarding each such person required by paragraphs (a),
(d), (e) and (f) of Item 401 of Regulation S-K or paragraph (b) of Item 22 of
Rule 14a-101 (Schedule 14A) under the Securities Exchange

Act of 1934, as amended (the "Exchange Act") (or any successor provision
thereto); (D) any other information regarding the person or persons to be
nominated that would be required to be disclosed in a proxy statement or other
filings required to be made in connection with solicitation of proxies for
election of trustees or directors pursuant to Section 14 of the Exchange Act
and the rules and regulations promulgated thereunder; and (E) whether such
shareholder believes any nominee is or will be an "interested person" of the
Registrant (as defined in the Investment Company Act of 1940) and, if not an
"interested person," information regarding each nominee that will be sufficient
for the Registrant to make such determination; and (ii) the written and signed
consent of any person to be nominated to be named as a nominee and to serve as
a trustee if elected. In addition, the trustees may require any proposed nominee
to furnish such other information as they may reasonably require or deem
necessary to determine the eligibility of such proposed nominee to serve as a
trustee.

Without limiting the foregoing, any shareholder who gives a Shareholder
Notice of any matter proposed to be brought before a shareholder meeting
(whether or not involving nominees for trustees) shall deliver, as part of such
Shareholder Notice: (i) the description of and text of the proposal to be
presented; (ii) a brief written statement of the reasons why such shareholder
favors the proposal; (iii) such shareholder's name and address as they appear on
the Registrant's books; (iv) any other information relating to the shareholder
that would be required to be disclosed in a proxy statement or other filings
required to be made in connection with the solicitation of proxies with respect
to the matter(s) proposed pursuant to Section 14 of the Exchange Act; (v) the
class or series and number of all shares of the Registrant owned beneficially
and of record by such shareholder; (vi) any material interest of such
shareholder in the matter proposed (other than as a shareholder); (vii) a
representation that the shareholder intends to appear in person or by proxy at
the shareholder meeting to act on the matter(s) proposed; (viii) if the proposal
involves nominee(s) for trustees, a description of all arrangements or
understandings between the shareholder and each proposed nominee and any other
person or persons (including their names) pursuant to which the nomination(s)
are to be made by the shareholder; and (ix) in the case of a shareholder (a
"BENEFICIAL OWNER") that holds shares entitled to vote at the meeting through a
nominee or "street name" holder of record, evidence establishing such Beneficial
Owner's indirect ownership of, and entitlement to vote, shares at the meeting of
shareholders. As used herein, shares "beneficially owned" shall mean all shares
which such person is deemed to beneficially own pursuant to Rules 13d-3 and
13d-5 under the Exchange Act.

A copy of the amended Nominating and Governance Committee Charter is
available on the Registrant's website at www.ftportfolios.com.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as

amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a
date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph, based on their evaluation of
these controls and procedures required by Rule 30a-3(b) under the 1940
Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).

(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's second fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Not applicable.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act
and Section 906 of the Sarbanes-Oxley Act of 2002 are
attached hereto.

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.

(registrant) FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II

By (Signature and Title)* /S/ JAMES A. BOWEN
-------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)

Date FEBRUARY 1, 2006
----------------------------------------------------------------------------

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.

Date FEBRUARY 1, 2006
----------------------------------------------------------------------------

By (Signature and Title)* /S/ MARK R. BRADLEY
-------------------------------------------------------
Mark R. Bradley, Treasurer, Controller,
Chief Financial Officer and Chief Accounting Officer
(principal financial officer)

Date FEBRUARY 1, 2006
----------------------------------------------------------------------------

* Print the name and title of each signing officer under his or her signature.