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 811-21344
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FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
- --------------------------------------------------------------------------------
(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, 2006
------------------

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.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND (FCM)
SEMI-ANNUAL REPORT
NOVEMBER 30, 2006

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TABLE OF CONTENTS
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FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND (FCM)
NOVEMBER 30, 2006

Shareholder Letter ....................................................... 1
Portfolio Commentary ..................................................... 2
Portfolio Components ..................................................... 5
Portfolio of Investments ................................................. 6
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 Amendments

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. (the "Advisor") and/or Four Corners Capital
Management, LLC ("Four Corners" or the "Sub-Advisor") 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 actual results, performance or achievements of the
First Trust/Four Corners Senior Floating Rate Income Fund (the "Fund") 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 the Advisor and/or Four Corners 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 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 the
Fund's Sub-Advisor, you may obtain an understanding of how the market
environment affected the Fund's performance. The statistical information that
follows may 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,
personnel of the Advisor and Sub-Advisor 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 (FCM)
SEMI-ANNUAL REPORT
NOVEMBER 30, 2006

Dear Shareholders:

We are pleased to present this semi-annual report of the First Trust/Four
Corners Senior Floating Rate Income Fund (AMEX Symbol: FCM), which includes a
discussion of how your Fund performed over the semi-annual reporting period
ended November 30, 2006. Over the six-month period covered by this report, the
market continued to favor senior-secured floating-rate loans ("Senior Loans").
The Fund benefited from a strong U.S. economy, Gross Domestic Product ("GDP")
expansion, and strong corporate earnings growth. An attractive credit
environment driven by strong investor demand for the Senior Loan asset class
also contributed positively to the Fund's performance.

First Trust Advisors L.P. acts as the Fund's investment advisor and currently
manages or supervises approximately $28 billion in assets. Four Corners Capital
Management, LLC ("Four Corners"), the Fund's Sub-Advisor, structures and manages
a variety of alternative fixed-income products with a specialization in Senior
Loans. Four Corners serves as investment manager or sub-advisor to approximately
$3.6 billion in assets across a variety of retail and institutional products
distributed around the globe. The portfolio managers' outlook for the markets
and a review of the Fund's strategy and performance can be found in the
portfolio commentary on the following pages.

We appreciate the opportunity to assist you in achieving your financial goals
and thank you for your continued confidence.

Sincerely,

/S/ JAMES A. BROWN
James A. Bowen
President of the First Trust/Four Corners Senior Floating Rate Income Fund
January 17, 2007

Page 1

MICHAEL P. MCADAMS
PRESIDENT AND CHIEF EXECUTIVE OFFICER, FOUR CORNERS CAPITAL MANAGEMENT, LLC
CO-PORTFOLIO MANAGER, FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
(FCM)

Mr. McAdams is responsible for overseeing the investment and distribution
activities of Four Corners Capital Management, LLC ("Four Corners") and is
Co-Portfolio Manager of FCM. He has over 26 years of experience in investment
management and banking, all of which has been spent in leveraged finance. Prior
to founding Four Corners, Mr. McAdams was with ING Capital Advisors, LLC,
("ICA") from 1995 to 2001. Mr. McAdams was a founder of ICA and held the titles
of President, Chief Executive Officer and Chief Investment Officer. Under his
leadership, ICA completed over one dozen structured transactions and had over $7
billion in assets under management. Prior to ICA, Mr. McAdams established the
first retail senior floating rate loan fund, the Pilgrim Prime Rate Trust
(NYSE:PPR), which he managed from its inception in 1988 through 1995. Mr.
McAdams was previously employed by National Bank of Canada, where he was a
member of one of the first teams to manage a non-originated U.S. corporate loan
portfolio. Mr. McAdams began his banking career at Manufacturers Hanover Trust
Company. Mr. McAdams received an MBA in Finance/Accounting from the University
of California Los Angeles and dual BAs in Finance/Accounting and Eastern
European Studies from California State University at Fullerton. Mr. McAdams is
one of the initial members of the Loan Syndication and Trading Association and
was its Chairman in 2001, its Vice Chairman in 2002 and has been a Board Member
since 1998. Mr. McAdams received the 2006 Credit Investment News Outstanding
Contribution award in the U.S. Loan Market.

ROBERT I. BERNSTEIN
CHIEF INVESTMENT OFFICER, FOUR CORNERS CAPITAL MANAGEMENT, LLC
CO-PORTFOLIO MANAGER, FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
(FCM)

Mr. Bernstein is responsible for managing the investment process of Four Corners
and is Co-Portfolio Manager of FCM. He has nearly 15 years of experience in
leveraged finance including senior secured loans, high-yield bonds and private
equity investments. Mr. Bernstein was most recently a partner of The Yucaipa
Companies, a Los Angeles-based private equity firm, where he completed merger
and acquisition transactions and leveraged financings valued in excess of $4
billion. Previously, Mr. Bernstein was a Vice President in Bankers Trust's
leveraged finance group, where he arranged senior loan and high yield bond
financings for financial sponsors and corporate issuers. He also worked in GE
Capital's restructuring group, where he focused primarily on asset-based loans
to distressed borrowers. Mr. Bernstein received an MBA in Finance from the
University of Chicago and a BBA in Finance magna cum laude from Hofstra
University. He also served as an infantry officer in the U.S. Marine Corps.

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PORTFOLIO COMMENTARY
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OVERVIEW

The First Trust/Four Corners Senior Floating Rate Income Fund ("FCM" or the
"Fund") generated a total return of 6.64%, including market price change and
dividends, for the six-month period ending November 30, 2006 (the "Fiscal
Period"). The Fund's Net Asset Value ("NAV") total return over the same period
was 2.57%. During the Fiscal Period, the Fund increased its dividend four times
and declared dividends totaling $0.7193 per common share compared to $0.5964 for
the same period in the prior year, representing an increase of 20.6%. The Fund's
common share price increased 2.4% during the Fiscal Period, from $17.63 to
$18.06, and its discount to NAV narrowed from 7.4% to 3.7%. Based on its most
recent dividend, FCM paid a yield of 8.14% calculated on the Fund's common share
price and 7.83% based on the Fund's $18.75 NAV as of November 30, 2006.

ECONOMIC AND MARKET ENVIRONMENT

The Fiscal Period continued to be a positive environment for Senior Loan
investing. The Fund continued to benefit from an attractive credit environment
primarily due to a strong U.S. economy, which kept market-wide default rates at
very low levels. Additionally, continued strong investor demand for the Senior
Loan asset class due to its appealing risk-adjusted returns relative to other
investment opportunities has kept secondary prices firm across the Senior Loan
market. This combination of low default rates and firm secondary prices has
resulted in stable NAV returns.

GDP continued to expand during the period, including the recent upward revision
to third-quarter GDP to 2.2%. Corporate earnings growth remained strong during
the period and, while interest rates have increased, real rates remain low on a
historical basis. The Fund primarily invests in the loans of non-investment
grade companies, and strong earnings, combined with low real interest rates,
make these companies better able to service their debt.

The Federal Reserve has not changed the Federal Funds rate target (set at 5.25%)
since its June 29, 2006 meeting. While the Fed Board (the "Fed") policy makers
continue to maintain a tightening bias, they are predicting that economic growth
will run slightly below the trend for the next year. Signs of a slowdown in GDP
growth domestically and internationally have emerged which have, among other
indicators, led some economists to predict a hiatus in Fed tightening during
Fiscal

Page 2

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PORTFOLIO COMMENTARY - (CONTINUED)
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2007. While we acknowledge these signals and the significant rise in interest
rates since 2003, we believe that the fundamental strength of the economy,
combined with the Fed's overriding focus on containing inflation, may result in
further interest rate increases.

From the Fund's perspective, these are very favorable conditions. A tightening
bias increases the possibility that the Fund can continue to increase its
dividend since the loans that the Fund invests in are floating rate and their
income is based on short-term interest rates. However, excessive tightening
could result in a spike in real interest rates, hurting companies' ability to
service their debt. While we do not expect corporate earnings to sustain their
year-over-year double digit growth levels, earnings are generally expected to
remain relatively strong through 2007, which, combined with low real interest
rates, should continue to enable the companies in which we invest to service
their debt.

Unlike traditional fixed income investments (i.e. high yield bonds), Senior
Loans have minimal, if any, interest rate risk. Rather, in rising rate
environments like we have seen in recent years, Senior Loan income typically
rises (with a several month lag) along with Fed rate increases. One caveat
however, is that in recent years, narrowing credit spread has partly offset the
benefits from rising rates. Notwithstanding the modest decline in credit
spreads, the Fund still increased its dividend 14 times since the Fed tightening
began and has demonstrated low NAV volatility. More recently, we have seen
credit spreads trend somewhat higher. Loan market liquidity has also improved
during the period.

Inflows into the Senior Loan asset class during Calendar 2006 were exceptional
and occurred in tandem with strong growth in new Senior Loan issuance. New
Senior Loan issuance rose over 37% year-over-year through November to $457
billion. In November alone, there was $66 billion of new Senior Loan issuance.
The forward calendar remains very robust with a visible pipeline of $54 billion
already scheduled for 2007. Similarly, secondary trading volume grew nearly 34%
year-over year.

As previously mentioned, the demand for the asset class of Senior Loans remained
strong, as investors perceived reduced levels of risk resulting from an
improving economic environment and low levels of defaults and credit losses, as
well as the returns benefit of a floating-rate asset class. For the six months
ended November 30, 2006, Senior Loans generated a total return of 3.19%
(S&P/LSTA Leveraged Loan Index). Senior Loans have generated positive returns
every calendar year that the data has been tracked since 1992.

INVESTMENT STRATEGY AND PORTFOLIO COMPOSITION

The primary objective of the Fund is to seek a high level of current income. As
a secondary objective, the Fund attempts to preserve capital. The investment
strategy employed in managing the Fund was designed to achieve the Fund's
objectives through risk minimization throughout entire economic and credit
cycles. In contrast, many managers of Senior Loan-based closed-end funds invest
up to 20% or more of their portfolios in high yield bonds in order to boost
yields in the short run. FCM utilizes a "pure play" strategy that generally
prohibits the Fund from investing in high yield bonds, and focuses primarily on
Senior Loans. In some market environments, the Fund's pure play strategy may
result in lower current dividends/yields than some other Senior Loan-based
closed-end funds. However, we believe that our strategy can result in lower NAV
volatility while maintaining competitive dividends/yield and higher and more
stable long-term total NAV returns.

Our strategy focuses on thorough fundamental credit analysis, broad issuer and
industry diversification, and a pro-active sell discipline in order to minimize
risk. The Fund's portfolio is generally more heavily weighted towards industry
groups that we expect to exhibit lower earnings volatility, and which we expect
to provide high recoveries to senior lenders in circumstances where earnings
volatility does occur.

The Fund is well diversified with over 130 positions across 28 industries. At
November 30, 2006, the five largest individual borrower exposures in total
represented 7.5% of the Fund's portfolio. 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 at the time of
purchase or are experiencing financial difficulties. We view our ability to
achieve modest gains from this subset of Senior Loans as opportunistic rather
than obligatory, and given the growth and improvement in the economy in recent
years, we have seen limited value opportunities in this segment of the
portfolio. On November 30, 2006, the portfolio included one Special Situation
investment representing 1.3% of the Fund's portfolio.

As mentioned in prior reports, the Fund is leveraged using adjustable-rate Money
Market Cumulative Preferred(R) Shares. 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, the Fund is less exposed to interest rate mismatch risk than a
closed-end fund with a fixed-rate investment portfolio, and investors will
generally benefit from portfolio leverage regardless of short-term interest
rates. At November 30, 2006, the portfolio leverage accounted for 36.5% of the
Fund's total managed assets.

Page 3

PERFORMANCE REVIEW

FCM generated a total return of 6.64%, including market price change and
dividends, for the Fiscal Period. The Fund's NAV total return was 2.57% over the
same period. This return lagged the benchmark (Standard & Poor's/LSTA Leveraged
Loan Index) return of 3.19%. The Fund's performance includes the beneficial
impact of leverage, and the negative impact of fees, expenses and uninvested
cash balances, which are not part of the benchmark return. The dividend
distribution totaled approximately $0.7193 per common share during the Fiscal
Period. FCM paid an annualized yield of 8.14% calculated on the Fund's common
share price and 7.83% based on the Fund's $18.75 NAV as of November 30, 2006.
Additionally, the Fund's NAV was relatively stable during the Fiscal Period,
ranging from a high of $19.03 to a low of $18.63, a range of approximately
2.15%.

In addition to the Fund's stable NAV performance/total return and high yield
during the Fiscal Period, the Fund's market price performance improved. During
the period, the market price of the Fund closed as high as $18.18 (November 21,
2006) and as low as $17.52 (July 17, 2006). The Fund ended the period at a 3.7%
discount to its NAV compared to a discount of 7.4% at the beginning of the
period. We also note that 13 of the 16 Senior Loan closed-end funds traded at
discounts to NAV on November 30, 2006, with the average of the narrower pure
play group (six of the 16 Senior Loan closed-end funds referred to above) being
3.7%. FCM's annualized market and NAV yield on November 30, 2006 (8.1% and 7.8%,
respectively) are slightly below the pure play peer group average of 8.3% and
8.0%, respectively.

We remain committed to long-term performance and superior client support, and we
appreciate the opportunity to assist investors in meeting their investment
goals.

Page 4

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
PORTFOLIO COMPONENTS+
NOVEMBER 30, 2006 (UNAUDITED)

S&P RATING BREAKDOWN

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

Cash/Cash Equivalents 1.86%
B 13.23%
B- 3.13%
B+ 15.13%
BB 13.44%
BB- 24%
BB+ 5.94%
BBB- 0.67%
CCC 0.17%
CCC+ 1.47%
NR 20.96%

ECONOMIC SECTOR BREAKDOWN

[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

Consumer Discretionary 30.42%
Industrials 15.64%
Materials 9.34%
Utilities 8.6%
Finance 7.9%
Health Care 7.8%
Energy 7.03%
Information Technology 5.91%
Consumer Staples 4.18%
Cash/Cash Equivalents 1.85%
Telecommunications Services 1.33%

+ 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 11.63% of
Senior Loan Interests that were privately rated upon issuance. The
rating agencies do not provide ongoing surveillance on the private
ratings.

See Notes to Financial Statements. Page 5

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 2006 (UNAUDITED)

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

SENIOR FLOATING RATE TERM LOAN INTERESTS** - 155.1%

AEROSPACE & DEFENSE - 5.1%
AEROSPACE & DEFENSE - 5.1%
$ 933,333 BE Aerospace, Inc................ NR(a) BB+ 7.12%-7.22% 8/24/12 $ 936,835
999,103 GenCorp Inc...................... Ba2 BB- 8.57%-8.62% 12/06/10 999,102
1,146,932 ILC Industries, Inc.............. NR(a) NR(a) 7.87% 2/24/12 1,154,101
923,077 Robertson Aviation, LLC.......... NR(a) NR(a) 8.25%-9.12% 4/19/13 927,692
715,385 Standard Aero Holdings, Inc...... Ba3 B+ 7.57%-7.63% 8/24/12 716,726
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TOTAL AEROSPACE & DEFENSE 4,734,456
--------------

AUTO COMPONENTS - 0.5%
AUTO PARTS & EQUIPMENT - 0.5%
500,000 Axletech International
Holdings, Inc. (c)............ Caa1 B- 11.87% 4/21/13 502,292
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TOTAL AUTO COMPONENTS 502,292
--------------

AUTOMOBILES - 0.5%
AUTOMOBILE MANUFACTURERS - 0.5%
500,000 General Motors Corp.............. Ba3 B+ TBA 11/29/13 500,536
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TOTAL AUTOMOBILES 500,536
--------------

BEVERAGES - 0.9%
SOFT DRINKS - 0.9%
795,833 Culligan Corp.................... Ba2 B+ 7.07% 9/30/11 796,330
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TOTAL BEVERAGES 796,330
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BUILDING PRODUCTS - 4.7%
BUILDING PRODUCTS - 4.7%
648,936 Headwaters, Inc.................. Ba3 BB- 7.38% 4/30/11 645,691
2,000,000 Landsource Communities
Development, LLC.............. NR(a) NR(a) 7.88% 3/31/10 1,967,500
803,571 NCI Building Systems, Inc........ Ba1 BB 6.82%-6.87% 6/18/10 802,567
990,000 South Edge, LLC.................. NR(a) NR(a) TBA 10/31/09 966,488
--------------
TOTAL BUILDING PRODUCTS 4,382,246
--------------

CAPITAL MARKETS - 1.8%
INVESTMENT BANKING & BROKERAGE - 1.8%
888,409 Ameritrade Holding Corp.......... Ba1 BB 6.82% 12/31/12 886,651
771,037 NASDAQ Stock Market (The), Inc... Ba3 BB 7.07%-7.12% 4/18/12 770,170
--------------
TOTAL CAPITAL MARKETS 1,656,821
--------------

CHEMICALS - 5.2%
DIVERSIFIED CHEMICALS - 5.2%
748,255 BCP Crystal US Holdings Corp..... Ba3 BB- 7.12% 4/06/11 749,324
196,364 Brenntag Holding
GmbH & Company KG............. B2 B+ 8.08% 1/18/14 197,591
803,636 Brenntag Holding
GmbH & Company KG............. B2 B+ 8.08% 12/23/13 808,659
2,000,000 Huntsman International LLC....... Ba3 BB- 7.07% 8/16/12 1,996,666
997,500 Lyondell Chemical Company........ Ba2 BB 7.12% 8/16/13 1,000,617
--------------
TOTAL CHEMICALS 4,752,857
--------------

Page 6 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)

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

SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED

COMMERCIAL SERVICES & SUPPLIES - 7.8%
DIVERSIFIED COMMERCIAL & PROFESSIONAL SERVICES - 6.7%
$ 997,500 Acosta, Inc...................... NR(a) NR(a) 8.07% 7/28/13 $ 1,005,812
1,755,814 Affinion Group, Inc.............. Ba3 B+ 8.07%-8.12% 10/17/12 1,764,046
992,500 IAP Worldwide Services, Inc...... B2 B 9.69% 12/30/12 981,645
500,000 N.E.W Holdings I, LLC (c)........ NR(a) NR(a) 12.32%-12.37% 2/08/14 505,000
486,555 N.E.W Holdings I, LLC............ NR(a) NR(a) 8.07%-8.12% 8/08/13 487,771
500,000 RSC Equipment Rental............. Ba2 BB- 7.07%-7.12% 11/30/12 500,000
1,000,000 RSC Equipment Rental (c)......... Caa1 B- 8.82%-8.87% 11/30/13 1,005,938
--------------
6,250,212
--------------

ENVIRONMENTAL & FACILITIES SERVICES - 1.1%
991,449 Energy Solutions, LLC............ NR(a) NR(a) 7.57%-7.77% 6/07/13 995,785
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 7,245,997
--------------

COMPUTERS & PERIPHERALS - 4.3%
COMPUTER HARDWARE - 2.1%
1,534,297 Activant Solutions, Inc.......... B1 B 7.38% 5/02/13 1,520,872
444,358 Advanced Micro Devices, Inc...... Ba3 B+ 7.62% 12/31/13 445,901
--------------
TOTAL COMPUTERS & PERIPHERALS 1,966,773
--------------

CONTAINERS & PACKAGING - 2.2%
PAPER PACKAGING - 2.2%
210,920 Boise Cascade, LLC............... Ba3 BB 7.09%-7.13% 10/28/11 211,631
1,084,978 Graham Packaging
Holdings Company.............. B1 B 7.63%-7.88% 10/07/11 1,088,659
714,286 Graham Packaging
Holdings Company (c).......... B3 CCC+ 9.69% 4/07/12 720,982
--------------
TOTAL CONTAINERS & PACKAGING 2,021,272
--------------

DIVERSIFIED FINANCIAL SERVICES - 1.1%
SPECIALIZED FINANCE - 1.1%
1,000,000 Peach Holdings, Inc.............. NR NR 9.11% 11/21/13 1,002,500
--------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 1,002,500
--------------

ELECTRIC UTILITIES - 11.4%
ELECTRIC UTILITIES - 11.4%
500,000 Astoria Generating
Company Acquisitions, LLC (c). B3 B 9.14% 8/23/13 505,313
4.916 Calpine Corp..................... NR(a) NR(a) 2.25% 12/20/07 4,876
163,812 Calpine Corp.,
(Debtor in Possession) (f).... NR(a) NR(a) 7.62% 12/20/07 164,508
414,894 Calpine Corp.,
(Debtor in Possession) (c) (f) NR(a) NR(a) 9.37% 12/20/07 420,771
892,259 Covanta Energy Corp.............. B1 B+ 7.57%-7.62% 6/24/12 897,092
974,345 LSP Gen Finance Co., LLC......... Ba3 BB- 7.12% 5/04/13 974,751
704,929 LSP-Kendall Energy, LLC.......... B1 B 7.37% 10/07/13 702,579
992,500 Mirant North America, LLC........ Ba3 BB- 7.07% 1/03/13 989,841
3,000,000 NRG Energy, Inc.................. Ba1 BB- 7.37% 2/01/13 3,009,375
872,245 Plum Point Energy
Associates, LLC............... B1 B 8.62%-8.74% 3/14/14 879,877

See Notes to Financial Statements. Page 7

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)

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

SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED

ELECTRIC UTILITIES - (CONTINUED)
ELECTRIC UTILITIES - (CONTINUED)
$1,063,063 Riverside Energy Center, LLC..... B1 B 9.63% 6/24/11 $ 1,088,310
819,413 Rocky Mountain Energy
Center, LLC................... B1 B 9.63% 6/24/11 838,874
--------------
TOTAL ELECTRIC UTILITIES 10,476,167
--------------

ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.5%
ELECTRONIC MANUFACTURING SERVICES - 0.5%
500,000 TTM Technologies, Inc............ B1 BB- 7.60% 10/27/12 502,500
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 502,500
--------------

ENERGY EQUIPMENT & SERVICES - 2.2%
OIL & GAS EQUIPMENT & SERVICES - 2.2%
1,985,875 Targa Resources, Inc............. B1 B+ 7.62%-7.63% 10/31/12 1,990,531
--------------
TOTAL ENERGY EQUIPMENT & SERVICES 1,990,531
--------------

FOOD & STAPLES RETAILING - 3.0%
DRUG RETAIL - 1.9%
1,793,787 Jean Coutu Group
(PJC) (The) Inc............... B1 BB- 7.94% 7/30/11 1,795,789
--------------
FOOD RETAIL - 1.1%
997,494 SUPERVALU, Inc................... Ba3 BB- 7.19% 6/02/12 998,840
--------------
TOTAL FOOD & STAPLES RETAILING 2,794,629
--------------

FOOD PRODUCTS - 2.1%
AGRICULTURAL PRODUCTS - 1.1%
997,728 Dole Food Company, Inc........... Ba2 B+ 7.37-9.25% 4/12/13 986,365
--------------
PACKAGED FOODS & MEATS - 1.0%
908,188 THL Food Products Company........ Ba3 B+ 7.39%-7.55% 11/21/10 909,323
--------------
TOTAL FOOD PRODUCTS 1,895,688
--------------

HEALTH CARE EQUIPMENT & SUPPLIES - 0.5%
HEALTH CARE EQUIPMENT - 0.5%
500,000 Encore Medical Finance, LLC...... Ba3 B 7.87% 11/03/13 500,313
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 500,313
--------------

HEALTH CARE PROVIDERS & SERVICES - 11.2%
HEALTH CARE FACILITIES - 3.2%
1,000,000 HCA, Inc......................... Ba3 BB 8.09% 11/17/13 1,006,307
997,468 Select Medical Corp.............. Ba1 BB- 7.07%-9.00% 2/24/12 976,273
997,500 USP Domestic Holdings, Inc....... Ba2 BB- 7.07%-7.18% 6/07/13 999,994
--------------
2,982,574
--------------

HEALTH CARE SERVICES - 8.5%
980,000 CHS/Community Health
Systems, Inc.................. Ba3 BB- 7.07%-7.12% 8/19/11 979,650
825,833 DaVita, Inc...................... Ba2 BB- 7.32%-7.69% 10/05/12 828,377
943,571 DJ Orthopedics, LLC.............. Ba3 BB- 6.88% 4/07/13 941,212
1,000,000 Emdeon Business Services......... B1 B+ 7.82% 11/16/13 1,001,250
995,000 Fresenius Medical Care AG........ Ba2 BB+ 6.74%-6.77% 3/31/13 988,298
464,286 Healthcare Partners, LLC......... Ba3 BB 7.32% 10/24/13 464,866

Page 8 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)

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

SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED

HEALTH CARE PROVIDERS & SERVICES - (CONTINUED)
HEALTH CARE SERVICES - (CONTINUED)
$ 500,000 Healthways, Inc.................. Ba2 BB TBA 12/01/13 $ 501,875
497,500 Quintiles Transnational Corp..... B1 BB- 7.37% 3/31/13 496,692
925,505 US Oncology Holdings, Inc........ Ba2 B+ 7.62%-7.88% 8/20/11 927,240
671,429 VWR International, Inc........... Ba3 B+ 7.63% 4/07/11 672,688
--------------
7,802,148
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 10,784,722
--------------
HOTELS, RESTAURANTS & LEISURE - 11.3%
CASINOS & GAMING - 7.0%
977,500 Boyd Gaming Corp................. Ba1 BB 6.87% 6/30/11 976,431
500,000 Greenwood Racing Inc............. B2 B+ TBA 11/28/11 501,250
1,000,000 PA Meadows, LLC.................. B2 B 8.37% 11/14/11 1,001,250
990,000 Penn National Gaming, Inc........ Ba2 BB 7.12%-7.15% 10/03/12 993,836
1,000,000 Pinnacle Entertainment, Inc...... B1 BB- 7.32% 12/14/11 1,002,750
1,000,000 Venetian Casino Resort, LLC...... Ba2 BB- 7.12% 6/15/11 1,002,885
1,000,000 VML US Finance, LLC.............. B1 BB- 8.12% 5/25/13 1,004,625
--------------
6,483,027
--------------
HOTELS, RESORTS & CRUISE LINES - 1.1%
1,000,000 Kerzner International, Ltd....... NR(a) NR(a) 0.50%-8.39% 9/01/13 984,375
--------------
LEISURE FACILITIES - 3.2%
968,443 American Skiing Co............... NR NR 9.86%-9.88% 11/24/10 970,863
997,500 Cedar Fair, L.P.................. Ba3 BB- 7.87% 8/30/12 1,005,397
1,000,000 London Arena and Waterfront
Finance, LLC.................. NR(a) NR(a) 8.89% 3/08/12 1,006,250
--------------
2,982,510
--------------
TOTAL HOTELS, RESTAURANTS & LEISURE 10,449,912
--------------

HOUSEHOLD DURABLES - 1.3%
HOMEBUILDING - 1.3%
1,000,000 EH/Transeastern LLC and
TE/TOUSA Senior, LLC (i)...... NR(a) NR 10.25% 8/01/08 818,333
1,000,000 TE/TOUSA Mezzanine, LLC
(Mezzanine Debt) (i).......... NR(a) NR 12.75% 8/01/09 375,000
--------------
TOTAL HOUSEHOLD DURABLES 1,193,333
--------------

INSURANCE - 0.5%
LIFE & HEALTH INSURANCE - 0.5%
500,000 Conseco, Inc..................... Ba3 BB- 7.32% 10/10/13 500,313
--------------
TOTAL INSURANCE 500,313
--------------

INTERNET SOFTWARE & SERVICES - 1.1%
INTERNET SOFTWARE & SERVICES - 1.1%
987,500 SunGard Data Systems Inc......... Ba3 B+ 7.88% 2/11/13 994,135
--------------
TOTAL INTERNET SOFTWARE & SERVICES 994,135
--------------

See Notes to Financial Statements. Page 9

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)

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

SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED

IT SERVICES - 8.1%
DATA PROCESSING & OUTSOURCED SERVICES - 1.1%
$ 985,000 Fidelity National Information
Solutions, Inc. & Fidelity
National Tax Service, Inc..... Ba1 BB+ 6.57% 3/09/11 $ 982,811
--------------
IT CONSULTING & OTHER SERVICES - 7.0%
498,750 Affiliated Computer Services, Inc. Ba2 BB+ 7.39%-7.40% 3/20/13 499,124
984,962 Alion Science and
Technology Corp............... Ba3 B+ 8.12% 8/02/09 982,500
1,960,051 DynCorp International, LLC....... Ba2 BB- 7.69%-7.81% 6/28/12 1,968,218
500,000 National Processing
Company Group, Inc............ B2 B 8.31% 9/29/13 501,250
1,000,000 Sanmina - SCI Corp. (d).......... Ba2 BB- 7.88% 1/31/08 1,002,000
1,500,000 West Corp........................ Ba3 B+ 8.07% 10/24/13 1,497,054
--------------
6,450,146
--------------
TOTAL IT SERVICES 7,432,957
--------------
MEDIA - 29.8%
ADVERTISING - 1.1%
1,000,000 Adams Outdoor Advertising, LP B1 B+ 7.12%-7.13% 10/18/12 1,000,625
--------------
BROADCASTING & CABLE TV - 14.0%
2,000,000 Century Cable Holdings, LLC (g).. NR NR 10.25% 6/30/09 1,951,086
1,000,000 Cequel Communications, LLC....... NR NR 10.36% 10/30/07 999,375
1,997,517 Charter Communications
Operating, LLC................ B1 B 8.01% 4/28/13 2,010,127
1,990,000 CSC Holdings, Inc................ Ba2 BB 7.11%-7.13% 3/29/13 1,986,352
1,039,078 Gray Television, Inc............. Ba1 BB- 6.87%-6.88% 11/22/13 1,036,480
1,000,000 PanAmSat Corp.................... Ba2 BB 7.87% 12/03/13 1,008,611
1,984,423 Raycom Media, Inc................ NR NR 6.88% 8/28/13 1,969,540
1,000,000 UPC Distribution Holding B.V..... B1 B 7.64% 3/31/13 999,438
1,000,000 UPC Distribution Holding B.V..... B1 B 7.64% 12/31/13 999,438
--------------
12,960,447
--------------

MOVIES & ENTERTAINMENT - 5.3%
944,369 Deluxe Entertainment
Services Group, Inc........... B1 B 8.37% 1/28/11 948,679
1,990,000 Metro-Goldwyn-Mayer
Holdings II, Inc.............. NR(a) NR(a) 8.62% 4/08/12 1,964,415
1,949,119 WMG Acquisition Corp............. Ba2 BB- 7.37%-7.41% 3/01/11 1,954,235
--------------
4,867,329
--------------

PUBLISHING - 9.4%
1,343,928 CBD Media, LLC................... Ba2 B 7.70% 12/31/09 1,350,087
1,451,795 Dex Media West, Inc.............. Ba1 BB 6.85%-6.89% 3/09/10 1,445,197
2,000,000 Idearc, Inc...................... Ba2 BB+ 7.32% 11/17/14 2,008,876
567,022 Media News Group, Inc............ Ba2 BB- 6.57% 12/30/10 559,462
1,000,000 Newspaper Holdings, Inc.......... NR NR 6.94% 8/24/12 991,875
498,750 Philadelphia Newspapers, LLC..... NR(a) NR(a) 8.12% 6/29/13 488,775
833,838 RH Donnelley, Inc................ Ba1 BB 6.85%-6.89% 6/30/11 830,247

Page 10 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)

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

SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED

MEDIA - (CONTINUED)
PUBLISHING - (CONTINUED)
$ 500,000 Wenner Media LLC................. NR(a) NR(a) 7.11% 10/02/13 $ 501,250
500,000 Yell Group PLC................... Ba3 BB- 7.32% 10/27/13 501,904
--------------
8,677,673
--------------
TOTAL MEDIA 27,506,074
--------------

METALS & MINING - 2.2%
ALUMINUM - 1.1%
498,750 Aleris International, Inc........ B2 B+ 7.88% 8/01/11 498,750
544,615 Novelis Corp..................... Ba2 BB- 7.62% 1/07/12 545,296
--------------
1,044,046
--------------
DIVERSIFIED METALS & MINING - 1.1%
992,500 Alpha Natural Resources, LLC..... B1 BB- 7.12% 10/26/12 991,259
--------------
TOTAL METALS & MINING 2,035,305
--------------
MULTI-UTILITIES - 2.3%
MULTI-UTILITIES - 2.3%
985,000 KGEN, LLC........................ B2 B 7.99% 8/05/11 983,769
1,093,358 KGEN, LLC (c) (h)................ B3 B- 14.37% 8/05/11 1,115,225
--------------
TOTAL MULTI-UTILITIES 2,098,994
--------------
OIL, GAS & CONSUMABLE FUELS - 9.3%
COAL & CONSUMABLE FUELS - 0.5%
500,000 Banta Corporation ............... Ba2 BB TBA 11/19/13 500,625
--------------
OIL & GAS EXPLORATION & PRODUCTION - 3.6%
1,487,525 ATP Oil and Gas Corp............. NR NR 8.82%-9.11% 4/14/10 1,502,400
853,738 Plains Resources, Inc............ Ba2 BB 6.87% 8/12/11 853,738
1,000,000 Resoluth Aneth, LLC (c).......... NR NR 10.36% 4/13/12 1,000,000
--------------
3,356,138
--------------

OIL & GAS REFINING, MARKETING & TRANSPORTATION - 5.2%
1,000,000 Coffeyville Resources, LLC (c)... B3 B 12.13% 7/08/13 1,027,500
984,370 Eagle Rock Gas Gathering
& Processing, Ltd............. NR NR 7.57% 12/03/12 984,370
1,000,000 El Paso Corp..................... Ba3 B+ 7.22% 7/31/11 1,004,219
1,750,000 Regency Gas Service, LLC......... B1 B+ 7.82% 8/15/13 1,750,000
--------------
4,766,089
--------------
TOTAL OIL, GAS & CONSUMABLE FUELS 8,622,852
--------------

PAPER & FOREST PRODUCTS - 5.2%
FOREST PRODUCTS - 4.3%
1,989,987 Georgia-Pacific Corp............. Ba2 BB- 7.37%-7.39% 12/20/12 1,993,512
2,000,000 Georgia-Pacific Corp. (c)........ Ba3 B+ 8.39% 12/23/13 2,004,296
--------------
3,997,808
--------------
PAPER PRODUCTS - 0.9%
784,189 Appleton Papers, Inc............. Ba2 BB- 7.61%-7.64% 6/11/10 786,149
--------------
TOTAL PAPER & FOREST PRODUCTS 4,783,957
--------------

See Notes to Financial Statements. Page 11

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)

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

SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED

PERSONAL PRODUCTS - 0.6%
PERSONAL PRODUCTS - 0.6%
$ 500,000 American Safety Razor
Company (c)................... B3 CCC+ 11.72% 1/30/14 $ 505,000
--------------
TOTAL PERSONAL PRODUCTS 505,000
--------------

REAL ESTATE INVESTMENT TRUSTS (REITs) - 3.2%
RESIDENTIAL REIT - 0.0%
44,737 Lion Gables Realty, L.P.......... Ba2 BB+ 7.07% 3/30/07 44,746
--------------
RETAIL REITS - 3.2%
930,263 Capital Automotive, L.P.......... Ba1 BB+ 7.07% 12/16/10 931,571
2,000,000 Macerich Partnership (The), L.P.. NR(a) NR(a) 6.88% 4/26/10 1,995,834
--------------
2,927,405
--------------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITs) 2,972,151
--------------

REAL ESTATE MANAGEMENT & DEVELOPMENT - 5.8%
REAL ESTATE MANAGEMENT & DEVELOPMENT - 5.8%
500,000 LNR Property Corp................ B2 NR(a) 8.12% 6/12/09 500,000
500,000 LNR Property Corp................ B2 NR(a) 8.12% 7/12/11 501,041
1,459,198 Newkirk Master (The), L.P........ Ba2 BB+ 7.07% 8/11/08 1,457,831
995,000 November 2005 Land
Investors, LLC................ B1 BB 8.12% 5/09/11 975,100
942,400 Rhodes Companies (The), LLC...... B1 BB- 8.62% 11/21/10 909,416
1,000,000 Shea Capital I, LLC.............. NR(a) NR(a) 7.35% 10/27/11 975,000
--------------
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 5,318,388
--------------

ROAD & RAIL - 4.7%
TRUCKING - 4.7%
2,290,058 Hertz (The) Corp................. Ba1 BB 7.32%-7.39% 12/21/12 2,304,180
2,000,000 Oshkosh Truck Corp............... Ba3 BB TBA 11/17/13 2,000,000
--------------
TOTAL ROAD & RAIL 4,304,180
--------------

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.5%
SEMICONDUCTORS - 0.5%
500,000 Freescale Semiconductors, Inc.... Baa3 BB TBA 12/01/13 501,719
--------------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 501,719
--------------

SPECIALTY RETAIL - 3.7%
APPAREL RETAIL - 2.1%
1,000,000 Hanesbrands, Inc................. Ba2 BB- 7.63%-7.69% 9/05/13 1,006,600
949,367 Neiman Marcus Group (The), Inc... Ba3 B+ 7.64% 4/06/13 955,301
--------------
1,961,901
--------------

SPECIALTY STORES - 1.6%
1,500,000 Michaels Stores, Inc............. B2 B- 8.38% 10/31/13 1,503,188
--------------
TOTAL SPECIALTY RETAIL ` 3,465,089
--------------

Page 12 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)

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

SENIOR FLOATING RATE TERM LOAN INTERESTS** - CONTINUED

WIRELESS TELECOMMUNICATION SERVICES - 2.2%
WIRELESS TELECOMMUNICATION SERVICES - 2.2%
$1,000,000 Clearwire Corp................... NR NR 12.11% 8/18/09 $ 1,007,500
1,000,000 Windstream Corp.................. Ba1 BBB- 7.12% 7/17/13 1,005,179
--------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 2,012,679
--------------
TOTAL SENIOR FLOATING RATE TERM LOAN INTERESTS................................ 143,203,668
(Cost $144,021,294) --------------

SENIOR FLOATING RATE NOTES - 4.5%

ELECTRICAL COMPONENTS & EQUIPMENT - 0.4%
ELECTRICAL COMPONENTS & EQUIPMENT - 0.4%
325,000 NXP B.V. (e)..................... Ba2 BB+ 8.12% 0/15/13 329,875
--------------
TOTAL ELECTRICAL COMPONENTS & EQUIPMENT 329,875
--------------
FOOD & STAPLES RETAILING - 0.3%
FOOD DISTRIBUTORS - 0.3%
250,000 Nutro Products, Inc. (e)......... B3 CCC 9.40% 10/15/13 257,500
--------------
TOTAL FOOD & STAPLES RETAILING 257,500
--------------
HOTELS, RESTAURANTS & LEISURE - 0.5%
LEISURE FACILITIES - 0.5%
500,000 HRP Myrtle Beach (e)............. B2 B 10.12% 4/01/12 498,750
--------------
TOTAL HOTELS, RESTAURANTS & LEISURE 498,750
--------------
HOUSEHOLD DURABLES - 0.6%
Homebuilding - 0.6%
600,000 Builders FirstSource, Inc........ B3 B- 9.62% 2/15/12 588,000
--------------
TOTAL HOUSEHOLD DURABLES 588,000
--------------
MEDIA - 1.1%
Broadcasting & Cable TV - 1.1%
1,000,000 Paxson Communications Corp. (e).. B1 CCC+ 8.62% 1/15/12 995,000
--------------
TOTAL MEDIA 995,000
--------------
PAPER & FOREST PRODUCTS - 0.6%
PAPER PRODUCTS - 0.6%
500,000 Verso Paper Holdings, LLC (e).... B2 BB 9.12% 8/01/14 510,000
--------------
TOTAL PAPER & FOREST PRODUCTS 510,000
--------------
PHARMACEUTICALS - 0.5%
PHARMACEUTICALS - 0.5%
250,000 Elan Finance and
Elan Finance Corp (d)......... B3 B 9.37% 11/15/11 248,750
250,000 Elan Finance and
Elan Finance Corp (d)......... B3 B 9.50% 12/01/13 248,125
--------------
TOTAL PHARMACEUTICALS 496,875
--------------

See Notes to Financial Statements. Page 13

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)

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

SENIOR FLOATING RATE NOTES - CONTINUED

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.5%
SEMICONDUCTORS - 0.5%
$ 500,000 Freescale Semiconductors,
Inc. (d) (e).................. Baa3 BB TBA 12/15/14 $ 498,125
--------------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 498,125
--------------
TOTAL SENIOR FLOATING RATE NOTES.............................................. 4,174,125
(Cost $4,169,863) --------------

MARKET
SHARES DESCRIPTION O VALUE
- --------- ---------------------------- --------------
CLOSED-END FUNDS - 0.5%

CAPITAL MARKETS- 0.5%
ASSET MANAGEMENT AND CUSTODY BANKS - 0.5%
67,100 ING Prime Rate Trust.......................................................... 482,449
--------------
TOTAL CAPITAL MARKETS 482,449
--------------
TOTAL CLOSED-END FUNDS........................................................ 482,449
(Cost $469,392) --------------

REPURCHASE AGREEMENT - 3.0%
(Cost $2,800,000)

2,800,000 Agreement with Wachovia Capital Markets, LLC, 5.24% dated 11/30/06,
to be repurchased at $2,800,408 on 12/01/06, collateralized by $3,023,000
Federal Home Loan Mortgage Corp., 6.00% due 11/06/07
(Value $2,856,000)......................................................... 2,800,000
--------------
TOTAL INVESTMENTS - 163.6%.................................................... 150,660,242
(Cost $151,460,549) (b)

NET OTHER ASSETS AND LIABILITIES - (1.4)%..................................... (1,304,399)
--------------
MONEY MARKET CUMULATIVE PREFERRED(R) SHARES, AT LIQUIDATION VALUE - (61.7)%... (57,000,000)
--------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS - 100.0%......................... $ 92,355,843
==============
- ----------------------------------------------------------------------
<FN>
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) Securities are restricted and cannot be offered for public sale
without first being registered under the Securities Act of 1933, as
amended (Note 2E).
(f) This borrower has filed for protection in federal bankruptcy court.
(g) This Senior Loan Interest was purchased subsequent to the borrower's
filing for protection in federal bankruptcy court and has priority
over other debt holders.
(h) Payment-in-Kind
(i) This Senior Loan Interest is non-income producing.
+ 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.
TBA To be announced.
</FN>

Page 14 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)

* Senior Loans generally are subject to mandatory and/or optional
prepayment. Prepayments of Senior Loans may occur because of the
mandatory prepayment conditions and because there may be significant
economic incentives for a borrower to optionally prepay. 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 18-36 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 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
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 2006 (UNAUDITED)

ASSETS:
Investments, at value
(Cost $151,460,549).......................................... $ 150,660,242
Cash............................................................ 4,199,603
Prepaid expenses................................................ 10,997
Receivables:
Investment securities sold................................. 3,712,172
Interest................................................... 1,484,882
Dividends.................................................. 5,017
---------------
Total Assets............................................... 160,072,913
---------------

LIABILITIES:
Payables:
Investment securities purchased............................ 10,233,135
Accumulated unpaid dividends on Money Market
Cumulative Preferred(R) Shares.......................... 182,493
Investment advisory fees................................... 112,725
Audit and legal fees....................................... 72,385
Printing fees.............................................. 39,813
Trustees' fees and expenses................................ 10,000
Administrative fees........................................ 7,352
Custodian fees............................................. 4,912
Accrued expenses and other liabilities.......................... 54,255
---------------
Total Liabilities.......................................... 10,717,070
---------------
NET ASSETS INCLUDING MONEY MARKET CUMULATIVE
PREFERRED(R) SHARES.......................................... $ 149,355,843
===============
MONEY MARKET CUMULATIVE PREFERRED(R) SHARES:
($0.01 par value, 2,280 shares issued with liquidation
preference of $25,000 per share, unlimited number of
Money Market Cumulative Preferred(R) Shares have been
authorized).................................................. 57,000,000
---------------

NET ASSETS (APPLICABLE TO COMMON SHAREHOLDERS) ................. $ 92,355,843
===============

NET ASSETS CONSIST OF:
Undistributed net investment income............................. $ 786,954
Accumulated net realized loss on investments sold............... (650,078)
Net unrealized depreciation of investments...................... 800,307)
Par value....................................................... 49,243
Paid-in capital................................................. 92,970,031
---------------
Net Assets (Applicable to Common Shareholders)............. $ 92,355,843
===============
NET ASSET VALUE, per Common Share
(par value $0.01 per Common Share)........................... $ 18.75
===============
Number of Common Shares outstanding
(unlimited number of Common Shares has been authorized)...... 4,924,349
===============

Page 16 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 2006 (UNAUDITED)

INVESTMENT INCOME:
Interest........................................................ $ 5,839,439
Dividends....................................................... 114,509
Other........................................................... 55,676
---------------
Total investment income.................................... 6,009,624
---------------
EXPENSES:
Investment advisory fees........................................ 728,021
Money Market Cumulative Preferred(R) Shares commission fees..... 72,420
Audit and legal fees............................................ 64,971
Printing fees................................................... 46,329
Administration fees............................................. 45,032
Trustees' fees and expenses..................................... 25,324
Transfer agent fees............................................. 20,393
Custodian fees.................................................. 19,731
Other........................................................... 45,283
---------------
Total expenses............................................. 1,067,504
---------------
Fees waived and expenses reimbursed by investment advisor.. (37,527)
---------------
Net expenses.................................................... 1,029,977
---------------
NET INVESTMENT INCOME........................................... 4,979,647
---------------

NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain on investments during the period.............. 68,095
Net change in unrealized depreciation of investments
during the period............................................ (1,364,743)
---------------

NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS................. (1,296,648)
---------------
MONEY MARKET CUMULATIVE PREFERRED(R) SHARE DIVIDENDS............ (1,508,991)
---------------

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ $ 2,174,008
===============

See Notes to Financial Statements. Page 17

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

SIX MONTHS
ENDED YEAR
11/30/2006 ENDED
(UNAUDITED) 5/31/2006
------------- -------------

OPERATIONS:
Net investment income................................................................ $ 4,979,647 $ 8,583,263
Net realized gain on investments during the period................................... 68,095 (109,123)
Net change in unrealized depreciation of investments during the period............... (1,364,743) 596,700
Distributions to Preferred Shareholders:
Dividends paid from net investment income......................................... (1,508,991) (2,343,159)
------------- -------------
Net increase in net assets resulting from operations................................. 2,174,008 6,727,681

DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Dividends paid from net investment income......................................... (3,542,084) (6,084,831)
Dividends paid from net realized short-term gains................................. -- (838,312)
------------- -------------
Total distributions to Common Shareholders........................................... (3,542,084) (6,923,143)
------------- -------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS APPLICABLE TO COMMON SHAREHOLDERS (1,368,076) (195,462)

NET ASSETS (APPLICABLE TO COMMON SHAREHOLDERS)
Beginning of period.................................................................. 93,723,919 93,919,381
------------- -------------
End of period........................................................................ $ 92,355,843 $ 93,723,919
============= =============
Undistributed net investment income at end of period................................. $ 786,954 $ 858,382
============= =============

Page 18 See Notes to Financial Statements.

FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 2006 (UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase in net assets resulting from operations................................. $ 2,174,008
Adjustments to reconcile net increase in net assets resulting
from operations to net cash provided by operating activities:
Changes in assets and liabilities:
Increase in investments, at value*.............................................. (1,060,993)
Increase in dividends receivable................................................ (2,254)
Increase in interest receivable................................................. (217,718)
Decrease in prepaid expenses.................................................... 1,893
Increase in receivable for investment securities sold........................... (1,824,517)
Increase in payable for investment securities purchased......................... 7,613,852
Increase in accumulated unpaid dividends on Money Market Cumulative
Preferred(R) Shares.......................................................... 127,631
Decrease in investment advisory fees payable.................................... (5,020)
Increase in audit and legal fees payable........................................ 14,034
Increase in transfer agent fees payable......................................... 3,436
Increase in printing fees payable............................................... 16,789
Decrease in administrative fees payable......................................... (327)
Decrease in custodian fees payable.............................................. (6,858)
Increase in trustees' fees and expenses payable................................. 12,500
Increase in accrued expenses and other liabilities.............................. 16,102
-------------
CASH PROVIDED BY OPERATING ACTIVITIES................................................ $ 6,862,558

CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to shareholders from net investment income........................... (3,542,084)
-------------
CASH PROVIDED BY FINANCING ACTIVITIES................................................ (3,542,084)
--------------
Increase in cash..................................................................... 3,320,474
Cash at beginning of year............................................................ 879,129
--------------
Cash at end of period................................................................ $ 4,199,603
==============
<FN>
- ------------------------------------------------------------------------------
* Includes net change in unrealized appreciation on investments of $(1,364,743).
</FN>

See Notes to Financial Statements. Page 19

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

SIX MONTHS
ENDED YEAR YEAR PERIOD
11/30/2006 ENDED ENDED ENDED
(UNAUDITED) 5/31/2006 5/31/2005 5/31/2004*
----------- --------- --------- ----------

Net asset value, beginning of period................. $ 19.03 $ 19.07 $ 19.16 $ 19.10 (f)
----------- --------- --------- ----------

INCOME FROM INVESTMENT OPERATIONS:
Net investment income................................ 1.01 1.75 1.26 0.61
Net realized and unrealized gain on investments...... (0.26) 0.10 0.02 0.25
Distributions paid to MMP*** Shareholders:
Dividends paid from net investment income......... (0.31) (0.48) (0.26) (0.07)
----------- --------- --------- ----------
Total from investment operations..................... 0.44 1.37 1.02 0.79
----------- --------- --------- ----------
DISTRIBUTIONS PAID TO COMMON SHAREHOLDERS:
Dividends paid from net investment income......... (0.72) (1.24) (0.95) (0.53)
Dividends paid from net realized short-term gains. -- (0.17) (0.16) --
----------- --------- --------- ----------
Total distributions to Common Shareholders........... (0.72) (1.41) (1.11) (0.53)
----------- --------- --------- ----------
Dilutive impact from the offering of MMP Shares++.... -- -- -- (0.16)
----------- --------- --------- ----------
Common Share offering costs charged to paid-in capital -- -- -- (0.04)
----------- --------- --------- ----------
Net asset value, end of period....................... $ 18.75 $ 19.03 $ 19.07 $ 19.16
=========== ========= ========= ==========
Market value, end of period.......................... $ 18.06 $ 17.63 $ 18.00 $ 20.70
=========== ========= ========= ==========
TOTAL RETURN BASED ON NET ASSET VALUE (A)+........... 2.57% 8.12% 5.49% 3.12%
=========== ========= ========= ==========
TOTAL RETURN BASED ON MARKET VALUE (B)+.............. 6.64% 6.12% (7.84)% 6.40%
=========== ========= ========= ==========

RATIOS TO AVERAGE NET ASSETS AVAILABLE TO COMMON SHAREHOLDERS:
Ratio of net expenses to average net assets.......... 2.22% ** 2.07% 1.92% 1.84%**
Ratio of total expenses to average net assets........ 2.30% ** 2.19% 2.09% 2.00%**
Ratio of net investment income to average net assets. 10.73% ** 9.12% 6.53% 4.73%**
Ratio of net investment income to average net of
MMP dividends (e)................................. 7.48% ** 6.63% 5.16% 4.18%**

SUPPLEMENTAL DATA:
Portfolio turnover rate.............................. 42% 83% 113% 107%
Net assets, end of period (in 000's)................. $ 92,356 $ 93,724 $ 93,919 $ 94,170
- ---------------------------------------------------------------------
Ratio of net expenses to total average Managed Assets 1.37% ** 1.29% 1.20% 1.24%**
Ratio of total expenses to total average Managed Assets 1.42% ** 1.36% 1.31% 1.35%**

PREFERRED SHARES:
Total MMP Shares outstanding......................... 2,280 2,280 2,280 2,280
Liquidation and market value per MMP share (c)....... $ 25,080 $ 25,024 $ 25,013 $ 25,004
Asset coverage per share (d)......................... $ 65,507 $ 66,107 $ 66,193 $ 66,303
- ---------------------------------------------------------------------
<FN>
* The Fund commenced operations on September 18, 2003.
** Annualized.
*** Money Market Cumulative Preferred(R) 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 distributions to MMP Shareholders.
(d) Calculated by subtracting the Fund's total liabilities (not including the
MMP Shares) from the Fund's total assets, and dividing by the number of
MMP Shares outstanding.
(e) The net investment income ratio reflects income net of operating expenses
and distributions to MMP Shareholders.
(f) Net of sales load of $0.90 per Common Share on initial offering.
+ Total return is not annualized for periods less than one year.
++ The expenses associated with the offering of the MMP Shares had a $(0.16)
impact on the Common Share NAV.
</FN>

Page 20 See Notes to Financial Statements.

- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
NOVEMBER 30, 2006 (UNAUDITED)

1. FUND DESCRIPTION

First Trust/Four Corners Senior Floating Rate Income Fund (the "Fund") is a
diversified, closed-end management investment company initially organized as a
Delaware statutory trust on May 13, 2003. The Fund was reorganized as a
Massachusetts business trust on August 8, 2003 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 FCM
on the American Stock Exchange.

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 by investing 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. Investing 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 less any accrued
liabilities. The NAV is determined as of the close of regular trading on the New
York Stock Exchange ("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 Total 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
NOVEMBER 30, 2006 (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 maintains liquid assets with a
current value at least equal to the amount of its when-issued or delayed
delivery 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 $664,136 as
of November 30, 2006. The Fund is obligated to fund these loan commitments at
the borrower's discretion. Net unrealized depreciation of $6,120 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. The Fund
does not have the right to demand that such securities be registered. 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
VALUE CARRYING COST
PER SHARE PER SHARE AT 11/30/06
ACQUISITION 11/30/06 ACQUISITION DATE VALUE % OF
SECURITY DATE SHARES (RESTRICTED) (RESTRICTED) (RESTRICTED) NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------

Freescale Semiconductors, Inc. 11/17/06 500,000 $ 99.63 $100.88 498,125 0.54%
Nutro Products, Inc. 04/18/06 250,000 $103.00 $102.25 257,500 0.28%
HRP Myrtle Beach 03/23/06 500,000 $ 99.75 $100.00 498,750 0.54%
NXP B.V. 10/05/06 325,000 $100.00 $101.50 329,875 0.36%
Paxson Communications Corp. 12/19/05 1,000,000 $ 99.50 $100.00 995,000 1.08%
Verso Paper Holdings, LLC 07/26/06 500,000 $102.00 $101.25 510,000 0.55%
------------- ------------- -------
$ 3,075,000 $ 3,089,250 3.35%
============= ============= =======

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 Money Market Cumulative Preferred(R) Shares ("MMP
Shares"). If the Fund recognizes a long-term capital gain, it will be required
to allocate such gain between the Common Shares and MMP 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.

Page 22

The tax character of distributions paid during the fiscal years ended May 31,
2006 and May 31, 2005 is as follows:

2006 2005
---- ----
Distributions paid from:
Ordinary Income....................... $ 9,266,302 $ 6,736,268

As of May 31, 2006, the components of distributable earnings on a tax basis are
as follows:

Undistributed Ordinary Income......... $ 913,244
Net Unrealized Appreciation........... $ 450,691

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.

Certain losses incurred after October 31 within the Fund's fiscal year are
deemed to arise on the first business day of the Fund's following fiscal year.
For the year ended May 31, 2006, the Fund incurred and elected to defer $82,516
in capital losses.

As of May 31, 2006, the Fund had a capital loss carryforward for federal income
tax purposes of $521,912, expiring on May 31, 2014.

H. EXPENSES:

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

I. NEW ACCOUNTING PRONOUNCEMENTS:

In July 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes."
This pronouncement provides guidance on the recognition, measurement,
classification, and disclosures related to uncertain tax positions, along with
any related interest and penalties. FIN 48 is effective for fiscal years
beginning after December 15, 2006. At this time, management is evaluating the
implications of FIN 48 and its impact on the financial statements which has not
yet been determined.

In addition, in September 2006, Statement of Financial Accounting Standards No.
157 Fair Value Measurements ("SFAS 157") was issued by the FASB and is effective
for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.

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 0.97% of the Fund's Managed Assets, the average daily gross asset value of
the Fund (which includes assets attributable to the Fund's MMP Shares, and the
principal amount of borrowings), minus the sum of the Fund's accrued and unpaid
dividends on any outstanding MMP Shares and accrued liabilities.

Four Corners Capital Management, LLC ("Four Corners" or the "Sub-Advisor")
serves as the Fund's sub-advisor and manages the Fund's portfolio subject to
First Trust's supervision. The Sub-Advisor receives an annual portfolio
management fee of 0.56% of Managed Assets that is paid monthly by First Trust
from its investment advisory fee.

First Trust has agreed to waive fees in an amount equal to 0.05% of the average
daily Managed Assets of the Fund from October 1, 2005 through September 30,
2007. Prior to October 1, 2005, First Trust waived fees equal to 0.11% of the
average daily Managed Assets of the Fund for the first two years of the Fund's
operation. The Sub-Advisor has agreed to bear a portion of this fee waiver
obligation by reducing the amount of its sub-advisory fee by 0.02% from October
1, 2005 through September 30, 2007. Prior to October 1, 2005, the Sub-Advisor
agreed to reduce the amount of its sub-advisory fee by 0.045%. Waivers are
reported as "Fees waived and expenses reimbursed by investment advisor" on the
Statement of Operations.

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, also an indirect,
majority-owned subsidiary of The PNC Financial Services Group, Inc., serves as
the Fund's Custodian in accordance with certain fee arrangements.

Page 23

Deutsche Bank Trust Company Americas, a wholly-owned subsidiary of Deutsche Bank
AG ("Auction Agent"), serves as the Fund's MMP 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 board and committee meetings. 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, 2006, were
$63,402,266 and $60,864,873 respectively.

As of November 30, 2006, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was $410,482 and
the aggregate gross unrealized depreciation for all securities in which there
was an excess of tax cost over value was $1,210,789.

5. COMMON SHARES

As of November 30, 2006, 4,924,349 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.

6. MONEY MARKET CUMULATIVE PREFERRED(R) 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, 2006, the Fund
has 2,280 Money Market Cumulative Preferred(R) Shares ("MMP Shares") outstanding
at a liquidation value of $25,000 per share.

The Fund is required to meet certain asset coverage tests with respect to the
MMP Shares. If the Fund fails to maintain Eligible Assets having an aggregated
Discounted Value at least equal to the MMP 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 MMP Shares.

An auction of the MMP 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, 2006 was 5.10% The
dividend rate, as set by the auction process, is generally expected to vary with
short-term interest rates. The high and low annual dividend rates during the six
months ended November 30, 2006, were 5.21% and 4.80%, respectively, and the
average dividend rate was 5.05%. 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 MMP Shares are classified outside of
permanent equity (net assets attributable to Common Shares) in the accompanying
financial statements.

7. SUBSEQUENT EVENTS

On November 20, 2006, the Fund declared a dividend of $0.1223 per share, which
represents a dividend from net investment income to Common Shareholders of
record December 5, 2006, payable December 12, 2006.

On December 18, 2006, the Fund declared a dividend of $0.1223 per share, which
represents a dividend from net investment income to Common Shareholders of
record December 29, 2006, payable January 16, 2007.

The Board of Trustees of the Fund adopted a compensation policy pursuant to
which, effective January 1, 2007, the Independent Trustees shall be paid an
annual retainer of $10,000 by each investment company of the First Trust Fund
Complex up to a total of 14 investment companies (the "Trustees Compensation I")
and an annual retainer of $7,500 by each subsequent investment company added to
the First Trust Fund Complex (the "Trustees Compensation II" and together with
Trustees Compensation I, the "Aggregate Trustee Compensation"). The Aggregate
Trustee Compensation shall be divided equally among each of the investment
companies in the First

Page 24

7. SUBSEQUENT EVENTS (CONTINUED)

Trust Fund Complex. No additional meeting fees are paid in connection with
regular board or committee meetings. The Trustees shall also be paid $1,000 for
each meeting held in connection with the organization of a new investment
company for the First Trust Fund Complex. These additional fees are paid by
First Trust. Trustees are also reimbursed for travel and out-of-pocket expenses
in connection with all meetings.

Additionally, Thomas R. Kadlec is paid annual compensation of $10,000 to serve
as the Lead Independent Trustee and Niel B. Nielson is paid annual compensation
of $5,000 to serve as the chairman of the Audit Committee of each of the
investment companies in the First Trust Fund Complex. Such additional
compensation to Messrs. Kadlec and Nielson are paid by the investment companies
in the First Trust Fund Complex and the fees are divided equally among those
investment companies.

Page 25

- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
NOVEMBER 30, 2006 (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 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 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 American
Stock Exchange 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 at http://www.sec.gov.

Page 26

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ADDITIONAL INFORMATION - (CONTINUED)
- --------------------------------------------------------------------------------
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
NOVEMBER 30, 2006 (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 1-800SEC-0330.

SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS

The Joint Annual Meeting of Shareholders of First Trust/Four Corners Senior
Floating Rate Income Fund, Macquarie/First Trust Global Infrastructure/Utilities
Dividend & Income Fund and First Trust/Four Corners Senior Floating Rate Income
Fund II was held on September 11, 2006. At the Annual Meeting, three of the
Funds' Board of 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 4,320,695, the number of votes
withheld was 168,474 and the number of abstentions was 437,460. The number of
votes cast for Niel B. Nielson was 4,320,550, the number of votes withheld was
168,619 and the number of abstentions was 437,460. The number of votes cast for
Richard E. Erickson as 4,320,550, the number of votes withheld was 168,619 and
the number of abstentions was 437,460.

Also at the Annual Meeting of Shareholders of the Fund, two of the Fund's
Trustees, Thomas R. Kadlec and Robert F. Keith, were elected by the holders of
MMP Shares to serve an additional one-year term. The number of votes cast for
each Trustee was 2,195; there were no votes withheld and there were 85
abstentions.

BY-LAW AMENDMENTS

On December 12, 2005, June 12, 2006, and again on December 11, 2006, the Board
of Trustees approved certain changes to the By-Laws of the Fund which may have
the effect of delaying or preventing a change in control of the Fund, including
the implementation of the staggered Board of Trustees. The changes were not
required to be, and were not, approved by the Fund's Shareholders. 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 issuers 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.

(a) Not applicable.

(b) There has been no change, as of the date of this filing, in any of the
portfolio managers identified in response to paragraph (a)(1) of this Item in
the Registrant's most recently filed annual report on Form N-CSR.

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.

There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's board of directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)),
or this Item.

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

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

Date JANUARY 18, 2007
----------------------------------------------------------------------------

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

Date JANUARY 18, 2007
----------------------------------------------------------------------------

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

Date JANUARY 18, 2007
----------------------------------------------------------------------------

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