United States
Securities and Exchange Commission
Washington, D.C. 20549

Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies

811-10625

(Investment Company Act File Number)

Federated Core Trust II, L.P.
---------------------------------------------------------------

(Exact Name of Registrant as Specified in Charter)

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, Pennsylvania 15237-7000

(412) 288-1900
(Registrant's Telephone Number)

John W. McGonigle, Esquire
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)

Date of Fiscal Year End: 11/30/2005

Date of Reporting Period: Fiscal year ended 11/30/2005

Item 1. Reports to Stockholders

EMERGING MARKETS FIXED INCOME
CORE FUND

ANNUAL REPORT
November 30, 2005

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
PORTFOLIO OF INVESTMENTS SUMMARY TABLES
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
REPORT OF INDEPENDENT AUDITORS
BOARD OF DIRECTORS AND TRUST OFFICERS
BOARD REVIEW OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

Year Ended November 30, Period Ended
2005 2004 2003 11/30/2002 (1)

Net Asset Value, Beginning
of Period $15.91 $14.39 $10.98 $10.00
Income From
Investment Operations:
Net investment income 1.29 (2) 0.91 0.85 0.83 (3)
Net realized and unrealized gain on
investments, options, futures
contracts and foreign currency
transactions 0.88 0.61 2.56 0.15 (3)
TOTAL FROM
INVESTMENT OPERATIONS 2.17 1.52 3.41 0.98
Net Asset Value, End of Period $18.08 $15.91 $14.39 $10.98

Total Return(4) 13.64 % 10.56 % 31.06 % 9.80 %

Ratios to Average Net Assets:
Net expenses 0.05 % 0.05 % 0.05 % 0.05 %(5)
Net investment income 7.54 % 7.80 % 8.85 % 10.58 %(3,5)
Expense waiver/reimbursement(6) 0.08 % 0.21 % 0.23 % 0.42 %(5)
Supplemental Data:
Net assets, end of period 146,778
(000 omitted) $350,521 $ $131,056 $80,515
Portfolio turnover 23 % 54 % 97 % 178 %

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1 Reflects operations for the period from January 14, 2002 (date of initial
investment) to November 30, 2002.

2 Based on average shares outstanding.

3 Effective January 14, 2002, the Fund adopted the provisions of the American
Institute of Certified Public Accountants (AICPA)

Audit and Accounting Guide for Investment Companies and began accreting
discount/amortizing premium on long-term debt securities. The effect of this
change for the period ended November 30, 2002 was to increase net investment
income per share by $0.01, decrease net realized and unrealized gain/loss per
share by $0.01, and increase the ratio of net investment income to average
net assets from 10.39% to 10.58%.

4 Based on net asset value, which does not reflect the sales charge,
redemption fee or contingent deferred sales charge, if applicable. Total
returns for periods of less than one year are not annualized.

5 Computed on an annualized basis.

6 This expense decrease is reflected in both the net expense and the net
investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

SHAREHOLDER EXPENSE EXAMPLE

As a shareholder of the Fund, you incur ongoing costs, to the extent
applicable, management fees, distribution (12b-1) fees and/or shareholder
services fees; and other Fund expenses. This Example is intended to help you
to understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual
funds. It is based on an investment of $1,000 invested at the beginning of
the period and held for the entire period from June 1, 2005 to November 30,
2005.

ACTUAL EXPENSES
The first section of the table below provides information about actual
account values and actual expenses. You may use the information in this
section, together with the amount you invested, to estimate the expenses that
you incurred over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the
result by the number in the first section under the heading entitled
"Expenses Paid During Period" to estimate the expenses attributable to your
investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second section of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is
not the Fund's actual return. Thus, you should not use the hypothetical
account values and expenses to estimate the actual ending account balance or
your expenses for the period. Rather, these figures are provided to enable
you to compare the ongoing costs of investing in the Fund and other funds. To
do so, compare this 5% hypothetical example with the 5% hypothetical examples
that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your
ongoing costs only. Therefore, the second section of the table is useful in
comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds.

Beginning Ending
Account Value Account Value Expenses Paid
6/1/2005 11/30/2005 During Period(1)

Actual $1,000 $1,068.60 $0.26
Hypothetical (assuming a 5%
return
before expenses) $1,000 $1,024.82 $0.25

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1 Expenses are equal to the Fund's annualized net expense ratio of 0.05%,
multiplied by the average account value over the period, multiplied by
183/365 (to reflect the one-half year period).

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

Emerging Markets Fixed Income Core Fund's(1) total return, based on net asset
value, for the 12-month reporting period was 13.64%.

For the first ten months of the reporting period the fund was benchmarked to
the Lehman Brothers Emerging Market Index(2) (LBEMI). Early in 2005,
following the LBEMI rules, the Mexico sub-index (one of the top three
sub-indices by market cap) was subtracted from the LBEMI because of credit
rating upgrades, which resulted in an average rating for the index of BBB;
subsequently, during the fall of 2005 Russia credit ratings were also
upgraded to an average rating of BBB and the Russia sub-index (then the
second largest sub-index by market cap) was also subtracted from the LBEMI.
These actions resulted in significant concentrations in the index to Brazil
as the largest sub-index and other second-tier sub-indices. Accordingly, the
fund was benchmarked instead to the Lehman Brothers U.S. Emerging Market
Index + Mexico + Russia(3) (LBUSEMI) for the last two months of the year as
the adviser believed it was more reflective of the fund's investments. There
were significant differences in the performance between both indices during
the reporting period, the LBEMI returned 12.27% and the LBUSEMI returned
11.51%. The fund's total return for the most recently completed fiscal year
reflected actual cash flows, transactions costs and other expenses which were
not reflected in the total return of the LBEMI or the LBUSEMI.

During the 12-month reporting period, the most significant factors affecting
the fund's over-performance relative to the LBEMI and the LBUSEMI were (1)
the credit quality of the portfolio securities (which indicate the risk that
securities will default); (2) the duration(4) of its portfolio (which
indicates the portfolio's price sensitivity to interest rates); (3) the
allocation of securities to off-index securities in local markets; and (4)
the allocation of securities to corporate credits versus sovereign credits.

Market Overview
Emerging debt markets had a solid performance during the fiscal year due to
the following global macroeconomic factors -low interest rate environment,
global growth, high commodity prices and general improvement in credit
quality.

Despite significant increases in short-term interest rates in the U.S.,
global real interest rates remained low which, in turn, contributed to
continued economic growth in key markets such as the U.S., China and India.
Higher growth increases the demand for commodities including oil and base
metals -whose primary suppliers are emerging market countries. Higher export
revenues from commodities, as well as intermediate products, together with
improved fiscal accounts, have allowed these countries to improve their
sovereign credit quality by repayment of external debt, reduced borrowing
requirements and better growth prospects. In this environment, corporate
issuers within the commodities sector of most emerging markets were
particularly strong performers. In light of these favorable macroeconomic
conditions (and most especially the low global interest rate environment),
demand for emerging market bonds increased over the reporting period, which
further contributed to the sector's positive return relative to other sectors
of the global fixed income market.

Credit Quality
During the reporting period, as compared to the LBEMI and subsequently the
LBUSEMI, fund management allocated more of the fund's portfolio to the higher
quality credits such as Russia and Colombia,(5)and less to lower quality
credits such as Brazil, Ecuador and Turkey which historically trade with
higher volatility than higher quality credits. Fund management anticipated a
more dramatic adjustment in emerging debt markets due to higher interest
rates in the U.S. However, because of low inflationary pressures in the
U.S., short-term interest rates increased only at a gradual pace which
allowed emerging debt markets -primarily lower quality credits- to remain as
an attractive investment alternative for global investors. The fund's
emphasis on higher quality credits (rather than the better-performing, lower
quality credits) detracted from fund performance relative to the LBEMI and
the LBUSEMI.

Duration
During most of the reporting period, fund management allocated a larger
percentage of the sovereign bonds from each country owned by the fund to
securities with shorter durations than the equivalent sub-index in the LBEMI
and the LBUSEMI. With the anticipation of a larger adjustment to higher
interest rates of longer duration securities, the fund was positioned to
benefit from higher coupon bonds with short durations and potentially small
bond price movements. This strategy initially detracted from fund performance
and fund management later adjusted the strategy to match the duration of the
fund's sovereign bond positions closer to the equivalent sub-indices in the
LBEMI and the LBUSEMI.

Local Markets
Beginning in 2004 and throughout the reporting period, fund management
increased the percentage of the portfolio allocated to local currency
denominated securities in emerging markets. These investments are considered
off-index. With good prospects for economic growth and declining inflation
rates in countries such as Mexico and Turkey, local market securities
strongly benefited from declining nominal and real interest rates and
appreciation of the currency. The fund's investments in local market
securities were positive contributors to fund performance during the
reporting period.

Corporate Credits
Corporate credits, also represented in the LBEMI and the LBUSEMI, were a core
component of the fund's portfolio of investments. The corporate portfolio was
represented by companies with strong position in each of its markets, in some
cases on a global basis. One particular factor that contributed to fund
performance was the fund's allocation to corporate issuers within the
commodities sector (and, in particular, the oil and gas sub-sectors).
Overall, the fund's larger allocation to corporate credits contributed
strongly to the period performance.

1 Prices of emerging markets securities can be significantly more volatile
than the prices of securities in developed countries.
2 The Lehman Brothers Emerging Market Index includes U.S. dollar-denominated
debt from emerging markets in the following regions: Americas, Europe, Middle
East, Africa and Asia. As with other fixed income benchmarks provided by
Lehman Brothers, the index is rules-based, which allows for an unbiased view
of the marketplace and easy replicability. The index is unmanaged, and
investments cannot be made in an index.
3 The Lehman Brothers U.S. Emerging Market Index plus Mexico plus Russia is a
customized index provided by Lehman Brothers. The index is unmanaged, and
investments cannot be made in an index.
4 Duration is a measure of a security's price sensitivity to changes in
interest rates. Securities with longer durations are more sensitive to
changes in interest rates than securities of shorter durations.
5 International investing involves special risks including currency risk,
increased volatility of foreign securities, political risks and differences
in auditing and other financial standards.

GROWTH OF A $10,000 INVESTMENT
The graph below illustrates the hypothetical investment of $10,000(1) in
Emerging Markets Fixed Income Core Fund (the "Fund") from January 14, 2002
(start of performance) to November 30, 2005, compared to the Lehman Brothers
Emerging Market Index (LBEMI)(2).

Average Annual Total Returns for the Period Ended
11/30/2005
1 Year 13.64%
Start of Performance (1/14/2002) 16.49%

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The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed underneath. Emerging
Markets Fixed Income Core Fund (the "Fund") is represented by a solid line.
The Lehman Brothers Emerging Market Index is represented by a dotted line.
The line graph is a visual representation of a comparison of change in value
of a $10,000 hypothetical investment in shares of the Fund and the Lehman
Brothers Emerging Market Index . The "x" axis reflects computation periods
from January 14, 2002 to November 30, 2005. The "y" axis reflects the cost of
the investment. The right margin reflects the ending value of the
hypothetical investment in the Fund's shares as compared to the Lehman
Brothers Emerging Market Index. The ending values were $18,080 and $17,221,
respectively.

Performance data quoted represents past performance which is no guarantee of
future results. Investment return and principal value will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Mutual fund performance changes over time and current
performance may be lower or higher than what is stated. For current to the
most recent month-end performance and after-tax returns, call
1-800-341-7400. Returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
Mutual funds are not obligations of or guaranteed by any bank and are not
federally insured.

1 Represents a hypothetical investment of $10,000 in the Fund. The Fund's
performance assumes the reinvestment of all dividends and distributions.
The LBEMI has been adjusted to reflect reinvestment of dividends on
securities in the index.
2 The LBEMI is not adjusted to reflect sales charges, expenses, or other fees
that the Securities and Exchange Commission requires to be reflected in the
Fund's performance. The index is unmanaged, and, unlike the Fund, is not
affected by cashflows. It is not possible to invest directly in an index.

PORTFOLIO OF INVESTMENTS SUMMARY TABLES

At November 30, 2005 the Fund's credit-quality ratings composition(1) was as
follows:

S&P Long-Term Ratings as Moody's Long-Term Ratings as
Percentage of Total Net Assets Percentage of Total Net Assets

AAA 0.0% Aaa 0.0%
AA 0.0% Aa 0.0%
A 6.6% A 1.1%
BBB 5.5% Baa 23.4%
BB 66.2% Ba 38.0%
B 13.3% B 26.9%
CCC 0.3% Caa 1.0%
CC 0.0% Ca 0.0%
C 0.0% C 0.0%
D 0.0% D 0.0%
Not Rated by S&P(2) 2.8% Not Rated by Moody's(2) 4.3%
Other Securities(3) 0.0% Other Securities(3) 0.0%
Cash Equivalents(4) 0.1% Cash Equivalents(4) 0.1%
Other Assets and 5.2% Other Assets and Liabilities 5.2%
Liabilities - Net(5) - Net(5)
TOTAL 100.0% TOTAL 100.0%

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At November 30, 2005 the Fund's issuer country and currency exposure
composition(6) were as follows:

Country Exposure as Currency Exposure
a Percentage of Total as a Percentage of
Country Net Assets Total Net Assets
Russia 21.3% 0.0%
Brazil 21.2% 0.0%
Mexico 11.6% 6.8%
Venezuela 10.2% 0.0%
Philippines 9.0% 0.0%
Colombia 6.1% 0.0%
Turkey 5.6% 0.0%
Peru 3.1% 0.0%
Kazakhstan 1.9% 0.0%
Argentina 1.6% 0.0%
El Salvador 1.0% 0.0%
Ukrainan SSR 0.9% 0.0%
Guatemala 0.6% 0.0%
Panama 0.3% 0.0%
Poland 0.3% 0.0%
United States(7) 0.0% 87.2%
Euro 0.0% 0.7%
Cash Equivalents(4) 0.1% 0.1%
Other Assets and 5.2% 5.2%
Liabilities - Net(5)
TOTAL 100.0% 100.0%

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1 These tables depict the long-term, credit-quality ratings assigned to the
Fund's portfolio holdings by Standard & Poor's (S&P) and Moody's Investors
Service (Moody's), each of which is a Nationally Recognized Statistical
Rating Organization (NRSRO).

Rated securities include a security with an obligor and/or credit enhancer
that has received a rating from an NRSRO with respect to a class of debt
obligations that is comparable in priority and security with the security
held by the Fund. Credit quality ratings are an assessment of the risk that a
security will default in payment and do not address other risks presented by
the security. Please see the descriptions of credit- quality ratings in the
Fund's Statement of Additional Information.

2 Holdings that are rated only by a different NRSRO than the one identified
have been included in the "Not rated by..." category. Of the portfolio's total
net assets, 1.2% are fixed income securities (excluding cash equivalents)
that do not have long-term credit quality ratings by either of these NRSROs.

3 Other Securities include options that do not qualify for credit ratings
from an NRSRO.

4 Cash Equivalents include any investments in money market mutual funds
and/or repurchase agreements. This does not include cash held in the Fund
that is denominated in foreign currencies. See the Statement of Assets and
Liabilities for information regarding the Fund's foreign cash position.

5 See Statement of Assets and Liabilities.

6 This table depicts the Fund's exposure to various countries and currencies
through its investment in foreign fixed income securities. With respect to
foreign corporate fixed income securities, country allocations are based
primarily on the country in which the issuing company (the "Issuer") is
incorporated. However, the Fund's adviser may allocate the Issuer to a
country based on other factors such as the location of the Issuer's office,
the location of the principal trading market for the Issuer's securities or
the country from which a majority of the Issuer's revenue is derived.

7 Consists of non-U.S. dollar denominated fixed income securities issued by
an entity domiciled in the United States.

PORTFOLIO OF INVESTMENTS

November 30, 2005

Principal Value in
Amount U.S. Dollars
CORPORATE BONDS--24.1%
Banking--2.8%

$ 235,820 (1) Banco de Galicia y Buenos Aires S.A. de C.V.,
Series 144A, 11.00%, 1/1/2019 $ 242,895
653,727 Banco de Galicia y Buenos Aires S.A. de C.V.,
Series REGS, 11.00%, 1/1/2019 673,339
2,550,000 (1) Kazkommerts International BV, Company Guarantee,
Series 144A, 8.00%, 11/3/2015 2,607,375
2,500,000 (1) Turanalem Finance BV, Bank Guarantee, 8.50%,
2/10/2015 2,590,625
3,500,000 (1) VTB Capital SA, Bond, 6.25%, 6/30/2035 3,613,750
TOTAL 9,727,984
Beverage & Tobacco--0.3%
900,000 (1) Central European Distribution Corp., Sr. Secd.
Note, 8.00%, 7/25/2012 1,137,500
Brewing--1.0%
3,300,000 (1) Bavaria, Series 144A, 8.875%, 11/1/2010 3,588,750
Broadcast Radio & TV--1.3%
3,800,000 Grupo Televisa S.A., Sr. Note, 8.50%, 3/11/2032 4,516,300
Cable & Wireless Television--0.8%
2,520,000 Innova S De R.L., 9.375%, 9/19/2013 2,809,800
Chemicals & Plastics--0.4%
1,250,000 Braskem SA, Series REGS, 11.75%, 1/22/2014 1,528,125
Container & Glass Products--0.7%
600,000 Vicap SA, Sr. Note, Series EXCH, 11.375%,
5/15/2007 557,280
1,950,000 (1) Vitro SA, Note, Series 144A, 11.75%, 11/1/2013 1,803,750
TOTAL 2,361,030
Hotels, Motels, Inns & Casinos--0.7%
2,500,000 (1) Grupo Posadas SA de C.V., Sr. Note, 8.75%,
10/4/2011 2,631,250
Oil & Gas--8.9%
3,150,000 (1) Companhia Petrolifera Marlim, Series 144A,
12.25%, 9/26/2008 3,480,750
10,850,000 (1) Gaz Capital SA, Note, Series 144A, 8.625%,
4/28/2034 13,643,875
4,960,000 (1) Gazprom, Note, Series 144A, 9.625%, 3/1/2013 5,952,000
7,180,000 (1) Petrozuata Finance, Inc., Company Guarantee,
Series 144A, 8.22%, 4/1/2017 6,713,300
1,420,000 (1) Tengizchevroil LLP, Series 144A, 6.124%,
11/15/2014 1,444,850
TOTAL 31,234,775
Steel--1.9%
2,700,000 (1) CSN Islands IX Corp., Sr. Note, Series 144A,
10.00%, 1/15/2015 3,003,750
3,200,000 (1) CSN Islands VIII Corp., Company Guarantee, Series
144A, 9.75%, 12/16/2013 3,504,000
TOTAL 6,507,750
Telecommunications & Cellular--4.3%
9,500,000 America Movil S.A. de C.V., Bond, 9.00%, 1/5/2016 887,943
1,225,000 Axtel SA, 11.00%, 12/15/2013 1,375,062
3,000,000 (1) Mobile Telesystems, Series 144A, 8.375%,
10/14/2010 3,150,000
5,400,000 Philippine Long Distance Telephone Co., Sr.
Unsub., 11.375%, 5/15/2012 6,689,250
3,000,000 Telefonos de Mexico, Note, Series WI, 5.50%,
1/27/2015 2,925,000
TOTAL 15,027,255
Utilities--1.0%
3,200,000 (1) National Power Corp., Foreign Gov't. Guarantee,
Series 144A, 8.63%, 8/23/2011 3,373,491
TOTAL CORPORATE BONDS (IDENTIFIED COST
$80,131,076) 84,444,010

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Principal Value in
Amount U.S. Dollars
GOVERNMENTS/AGENCIES--70.6%
Sovereign--70.6%
$ 4,051,001 Argentina, Government of, 8.28%, 12/31/2033 $ 3,400,816
1,700,000 Argentina, Government of, Bond, 4.005%, 8/3/2012 1,336,200
5,750,000 (1) Aries Vermogensverwaltng, Credit-Linked Note,
Series 144A, 9.60%, 10/25/2014 7,395,937
7,226,604 Brazil, Government of, 5.25%, 4/15/2012 7,091,466
500,000 Brazil, Government of, 8.875%, 10/14/2019 535,500
14,200,000 Brazil, Government of, 8.875%, 4/15/2024 15,016,500
3,800,000 Brazil, Government of, Bond, 8.25%, 1/20/2034 3,807,600
4,800,000 Brazil, Government of, Bond, 10.125%, 5/15/2027 5,712,000
1,000,000 Brazil, Government of, Bond, 10.50%, 7/14/2014 1,197,000
5,752,000 Brazil, Government of, Note, 8.00%, 1/15/2018 6,053,980
6,000,000 Brazil, Government of, Note, 8.75%, 2/4/2025 6,282,000
7,310,000 Brazil, Government of, Note, 11.00%, 1/11/2012 8,815,860
6,700,000 Brazil, Government of, Note, 12.00%, 4/15/2010 8,090,250
1,750,000 Colombia, Government of, 10.75%, 1/15/2013 2,166,500
8,650,000 Colombia, Government of, Bond, 8.125%, 5/21/2024 9,156,025
2,300,000 Colombia, Government of, Bond, 10.375%, 1/28/2033 2,964,700
2,600,000 Colombia, Government of, Bond, 11.75%, 2/25/2020 3,577,600
3,250,000 El Salvador, Government of, Bond, 8.25%, 4/10/2032 3,542,500
1,750,000 (1) Guatemala, Government of, Note, 9.25%, 8/1/2013 2,034,375
108,938,900 Mexico, Government of, 8.00%, 12/7/2023 9,418,257
10,200,000 Mexico, Government of, 9.00%, 12/22/2011 988,792
84,299,900 Mexico, Government of, Bond, 8.00%, 12/19/2013 7,752,844
48,311,300 Mexico, Government of, Bond, 10.00%, 12/5/2024 5,021,959
1,020,000 Panama, Government of, 9.625%, 2/8/2011 1,195,950
2,300,000 Peru, Government of, Bond, 8.75%, 11/21/2033 2,691,000
6,630,000 Peru, Government of, Note, 9.875%, 2/6/2015 8,221,200
4,600,000 Philippines, Government of, 9.375%, 1/18/2017 5,221,000
3,250,000 Philippines, Government of, 9.875%, 1/15/2019 3,802,500
3,000,000 Philippines, Government of, Note, 8.00%, 1/15/2016 3,135,000
3,050,000 Philippines, Government of, Note, 8.25%, 1/15/2014 3,248,250
1,328,000 Philippines, Government of, Note, 8.375%,
2/15/2011 1,415,980
2,425,000 Philippines, Government of, Note, 10.625%,
3/16/2025 2,994,875
1,580,000 Philippines, Government of, Sr. Note, 9.50%,
2/2/2030 1,781,450
25,050,000 Russia, Government of, Unsub., 5.00%, 3/31/2030 28,054,747
2,600,000 (1) Russia, Government of, Unsub., 11.00%, 7/24/2018 3,828,500
4,850,000 Russia, Government of, Unsub., 12.75%, 6/24/2028 8,831,850
2,850,000 Turkey, Government of, 9.50%, 1/15/2014 3,391,500
6,610,000 Turkey, Government of, 11.00%, 1/14/2013 8,378,175
2,000,000 Turkey, Government of, Note, 7.375%, 2/5/2025 2,017,500
1,300,000 Turkey, Government of, Note, 11.50%, 1/23/2012 1,649,375
1,000,000 Turkey, Government of, Sr. Unsub., 11.875%,
1/15/2030 1,492,500
2,275,000 Turkey, Government of, Sr. Unsub., 12.375%,
6/15/2009 2,752,750
600,000 Ukraine, Government of, Bond, 7.65%, 6/11/2013 652,410
1,092,078 Ukraine, Government of, Sr. Note, 10.00%,
3/15/2007 1,357,990
1,022,073 Ukraine, Government of, Sr. Note, 11.00%,
3/15/2007 1,069,242
8,590,000 Venezuela, Government of, 9.375%, 1/13/2034 9,921,450
6,950,000 Venezuela, Government of, Bond, 9.25%, 9/15/2027 8,037,675
11,350,000 Venezuela, Government of, Note, 7.65%, 4/21/2025 11,174,075
TOTAL GOVERNMENT/AGENCIES (IDENTIFIED COST
$236,951,555) 247,675,605

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Principal Value in
Amount U.S. Dollars
REPURCHASE AGREEMENT--0.1%
$ 276,000 Interest in $3,275,000,000 joint repurchase
agreement 4.04%, dated 11/30/2005 under which
Bank of America N.A., will repurchase a
U.S. Government Agency security with a maturity
of 7/1/2035 for $3,275,367,528 on 12/1/2005. The
market value of the underlying security at the
end of the period was $3,340,500,000 (AT
AMORTIZED COST) 276,000
TOTAL INVESTMENTS--94.8% (IDENTIFIED COST
$317,358,631)(2) 332,395,615
OTHER ASSETS AND LIABILITIES - NET--5.2% 18,125,200
TOTAL NET ASSETS--100% $ 350,520,815

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1 Denotes a restricted security, including securities purchased under Rule
144A of the Securities Act of 1933. These securities, all of which have been
deemed liquid by criteria approved by the Fund's Board of Directors, unless
registered under the Act or exempted from registration, may only be sold to
qualified Institutional investors. At November 30, 2005, these securities
amounted to $75,740,723 which represents 21.6% of total net assets.
2 The cost of investments for federal tax purposes amounts to $318,394,250.
Note: The categories of investments are shown as a percentage of total net
assets at November 30, 2005.

See Notes which are an integral part of the Financial Statements

STATEMENT OF ASSETS AND LIABILITIES

November 30, 2005

Assets:

Total investments in securities, at value
(identified cost $317,358,631) $ 332,395,615
Cash denominated in foreign currencies
(identified cost $7,379) 7,517
Cash 826,790
Income receivable 6,449,171
Receivable for investments sold 14,600,495
Receivable for shares sold 51,000
TOTAL ASSETS 354,330,588
Liabilities:
Payable for investments purchased $ 3,529,902
Payable for foreign currency exchange
contracts 196,197
Payable for portfolio accounting fees 2,241
Accrued expenses 81,433
TOTAL LIABILITIES 3,809,773
Net assets for 19,385,415 shares outstanding $ 350,520,815
Net Assets Consist of:
Paid-in capital $ 270,313,916
Net unrealized appreciation of investments,
options and translation of assets and
liabilities in foreign currency 14,853,783
Accumulated net realized gain on
investments, options, futures contracts and
foreign currency transactions 20,990,766
Undistributed net investment income 44,362,350
TOTAL NET ASSETS $ 350,520,815
Net Asset Value, Offering Price and
Redemption Proceeds
Per Share
$350,520,815 / 19,385,415 shares outstanding $18.08

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See Notes which are an integral part of the Financial Statements

STATEMENT OF OPERATIONS

Year Ended November 30, 2005

Investment Income:

Interest $ 20,614,704
Expenses:
Administrative personnel and
services fee (Note 5) 150,000
Custodian fees 85,168
Transfer and dividend disbursing
agent fees and expenses 13,676
Directors'/Trustees' fees 5,955
Auditing fees 28,412
Legal fees 7,640
Portfolio accounting fees 53,409
Insurance premiums 8,664
Taxes 154
Miscellaneous 4,321
TOTAL EXPENSES 357,399
Waiver and Reimbursement (Note 5):
Waiver of administrative
personnel and services fee $ (150,000 )
Reimbursement of other operating
expenses (58,442 )
TOTAL WAIVER AND REIMBURSEMENT (208,442 )
Net expenses 148,957
Net investment income 20,465,747
Realized and Unrealized Gain
(Loss)
on investments, options and
futures contracts:
Net realized gain on investments,
options and foreign currency
transactions 10,501,024
Net realized gain on futures
contracts 37,407
Net change in unrealized
appreciation of investments,
options and translation of assets
and liabilities in foreign
currency 5,336,708
Net realized and unrealized gain
on investments, options, futures
contracts and translation of
assets and liabilities in foreign
currency 15,875,139
Change in net assets resulting
from operations $ 36,340,886

- ------------------------------------------------------------------------------

See Notes which are an integral part of the Financial Statements

STATEMENT OF CHANGES IN NET ASSETS

Year Ended November 30 2005 2004
Increase (Decrease) in Net Assets
Operations:
Net investment income $ 20,465,747 $ 8,623,020
Net realized gain on investments,
options, futures contracts and
foreign currency transactions 10,538,431 2,938,245
Net change in unrealized
appreciation/depreciation of
investments, options and
translation of assets and
liabilities
in foreign currency 5,336,708 (1,530,719)
CHANGE IN NET ASSETS RESULTING
FROM OPERATIONS 36,340,886 10,030,546
Share Transactions:
Contributions 298,508,368 42,556,000
Withdrawals (131,106,041 ) (36,865,089)
CHANGE IN NET ASSETS RESULTING
FROM
SHARE TRANSACTIONS 167,402,327 5,690,911
Change in net assets 203,743,213 15,721,457
Net Assets:
Beginning of period 146,777,602 131,056,145
End of period (including
undistributed net investment
income of $44,362,350 and
$23,896,603, respectively) $ 350,520,815 $ 146,777,602

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See Notes which are an integral part of the Financial Statements

NOTES TO FINANCIAL STATEMENTS

November 30, 2005

1. ORGANIZATION
Emerging Markets Fixed Income Core Fund (the "Fund") is a non-diversified
portfolio of Federated Core Trust II, L.P. (the "Trust"). The Trust is
registered under the Investment Company Act of 1940, as amended (the "Act").
The Trust is a limited partnership that was established under the laws of the
State of Delaware on November 13, 2000 and offered only to registered
investment companies and other accredited investors. The Trust consists of
three portfolios. The financial statements included herein are only those of
the Fund. The Fund's primary investment objective is to achieve total return
on assets. Its secondary investment objective is to achieve a high level of
income. The Fund pursues these objectives by investing in an unhedged
portfolio of foreign, high-yield, fixed-income securities.

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. These
policies are in conformity with generally accepted accounting principles
(GAAP) in the United States of America.

Investment Valuation
The Fund generally values fixed income securities according to prices
furnished by an independent pricing service, except that fixed income
securities with remaining maturities of less than 60 days at the time of
purchase may be valued at amortized cost. For mortgage-backed securities,
prices furnished by the independent pricing service are based on the
aggregate investment value of the projected cash flows to be generated by the
security. For other fixed income securities, prices furnished by an
independent pricing service are intended to be indicative of the mean between
the bid and asked prices currently offered to institutional investors for the
securities. Domestic and foreign equity securities are valued at the last
sale price or official closing price reported in the market in which they are
primarily traded (either a national securities exchange or the
over-the-counter market), if available. If unavailable, the security is
generally valued at the mean between the last closing bid and asked prices.
With respect to valuation of foreign securities, trading in foreign cities
may be completed at times which vary from the closing of the New York Stock
Exchange (NYSE). Therefore, foreign securities are valued at the latest
closing price on the exchange on which they are traded immediately prior to
the closing of the NYSE. Foreign securities quoted in foreign currencies are
translated in U.S. dollars at the foreign exchange rate in effect at 4:00
p.m., Eastern Time, on the day the value of the foreign security is
determined. The Fund generally values short-term securities according to
prices furnished by an independent pricing service, except that short-term
securities with remaining maturities of less than 60 days at the time of
purchase may be valued at amortized cost. Securities for which no quotations
are readily available or whose values have been affected by a significant
event occurring between the close of their primary markets and the closing of
the NYSE are valued at fair value as determined in accordance with procedures
established by and under general supervision of the Board of Directors (the
"Directors").

Repurchase Agreements
It is the policy of the Fund to require the custodian bank to take
possession, to have legally segregated in the Federal Reserve Book Entry
System, or to have segregated within the custodian bank's vault, all
securities held as collateral under repurchase agreement transactions.
Additionally, procedures have been established by the Fund to monitor, on a
daily basis, the market value of each repurchase agreement's collateral to
ensure that the value of the collateral at least equals the repurchase price
to be paid under the repurchase agreement transaction.

The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Directors. Risks may arise from the
potential inability of counterparties to honor the terms of the repurchase
agreement. The Fund, along with other affiliated investment companies, may
utilize a joint trading account for the purpose of entering into one or more
repurchase agreements.

Investment Income, Expenses, and Distributions
Interest income and expenses are accrued daily. All net income earned and
gain/ loss (realized and unrealized) will be allocated daily to the
shareholders based on their capital contributions to the Fund. The Fund does
not currently intend to declare and pay distributions.

Premium and Discount Amortization
All premiums and discounts on fixed income securities are amortized/accreted
for financial statement purposes.

Federal Taxes
As a partnership, the Fund is not subject to U.S. federal income tax.
Instead, each investor reports separately on its own federal income tax
return its allocated portion of the Fund's income, gains, losses, deductions
and credits (including foreign tax credits for creditable foreign taxes
imposed on the Fund).

When-Issued and Delayed Delivery Transactions
The Fund may engage in when-issued or delayed delivery transactions. The Fund
records when-issued securities on the trade date and maintains security
positions such that sufficient liquid assets will be available to make
payment for the securities purchased. Securities purchased on a when-issued
or delayed delivery basis are marked to market daily and begin earning
interest on the settlement date. Losses may occur on these transactions due
to changes in market conditions or the failure of counterparties to perform
under the contract.

Futures Contracts
The Fund purchases and sells bond interest rate futures contracts to manage
cash flows, enhance yield, and to potentially reduce transactions costs. Upon
entering into a bond interest rate futures contract with a broker, the Fund
is required to deposit in a segregated account a specified amount of cash or
U.S. government securities. Futures contracts are valued daily and unrealized
gains or losses are recorded in a "variation margin" account. Daily, the Fund
receives from or pays to the broker a specified amount of cash based upon
changes in the variation margin account. When a contract is closed, the Fund
recognizes a realized gain or loss. Futures contracts have market risks,
including the risk that the change in the value of the contract may not
correlate with the changes in the value of the underlying securities. For the
year ended November 30, 2005, the Fund had net realized gains of $37,407 on
futures contracts.

Futures contracts outstanding at period end, if any, are listed after the
Fund's portfolio of investments.

Foreign Exchange Contracts
The Fund may enter into foreign currency commitments for the delayed delivery
of securities or foreign currency exchange transactions. The Fund may enter
into foreign currency contract transactions to protect assets against adverse
changes in foreign currency exchange rates or exchange control regulations.
Purchased contracts are used to acquire exposure to foreign currencies;
whereas, contracts to sell are used to hedge the Fund's securities against
currency fluctuations. Risks may arise upon entering into these transactions
from the potential inability of counterparties to meet the terms of their
commitments and from unanticipated movements in security prices or foreign
exchange rates. The foreign currency transactions are adjusted by the daily
exchange rate of the underlying currency and any gains or losses are recorded
for financial statement purposes as unrealized until the settlement date.

At November 30, 2005, the Fund had outstanding foreign currency commitments
as follows:

Foreign Currency In Exchange Contracts Unrealized
Settlement Date Units to Deliver For at Value Depreciation
Contracts Sold:

153,807,417 Mexican 14,477,667
1/18/2006 Peso $14,333,333 $ $(144,334)
60,699,238 Mexican
1/18/2006 Peso 5,661,667 5,713,530 (51,863)
NET UNREALIZED DEPRECIATION ON FOREIGN EXCHANGE CONTRACTS $(196,197)

- ------------------------------------------------------------------------------

Foreign Currency Translation
The accounting records of the Fund are maintained in U.S. dollars. All assets
and liabilities denominated in foreign currencies (FCs) are translated into
U.S. dollars based on the rate of exchange of such currencies against
U.S. dollars on the date of valuation. Purchases and sales of securities,
income and expenses are translated at the rate of exchange quoted on the
respective date that such transactions are recorded. The Fund does not
isolate that portion of the results of operations resulting from changes in
foreign exchange rates on investments from the fluctuations arising from
changes in market prices of securities held. Such fluctuations are included
with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
FCs, currency gains or losses realized between the trade and settlement dates
on securities transactions, the difference between the amounts of dividends,
interest and foreign withholding taxes recorded on the Fund's books, and the
U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value
of assets and liabilities other than investments in securities at fiscal year
end, resulting from changes in the exchange rate.

Restricted Securities
Restricted securities are securities that may only be resold upon
registration under federal securities laws or in transactions exempt from
such registration. In some cases, the issuer of restricted securities has
agreed to register such securities for resale, at the issuer's expense either
upon demand by the Fund or in connection with another registered offering of
the securities. Many restricted securities may be resold in the secondary
market in transactions exempt from registration. Such restricted securities
may be determined to be liquid under criteria established by the Directors.
The Fund will not incur any registration costs upon such resales. The Fund's
restricted securities are valued at the price provided by dealers in the
secondary market or, if no market prices are available, at the fair value as
determined in accordance with procedures established by and under general
supervision of the Directors.

Use of Estimates
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the amounts of
assets, liabilities, expenses and revenues reported in the financial
statements. Actual results could differ from those estimated.

Other
Investment transactions are accounted for on a trade date basis. Realized
gains and losses from investment transactions are recorded on an identified
cost basis.

3. CONTRIBUTIONS/WITHDRAWALS
Transactions in shares were as follows:

Year Ended November 30 2005 2004
Proceeds from contributions 17,702,635 2,704,394
Fair value of withdrawals (7,541,829) (2,586,633)
TOTAL CHANGE RESULTING FROM 10,160,806 117,761
CONTRIBUTIONS/WITHDRAWALS

- ------------------------------------------------------------------------------

4. FEDERAL TAX INFORMATION

At November 30, 2005, the cost of investments for federal tax purposes was
$318,394,250. The net unrealized appreciation of investments for federal tax
purposes excluding any unrealized appreciation resulting from changes in
foreign currency exchange rates was $14,001,365. This consists of net
unrealized appreciation from investments for those securities having an
excess of value over cost of $14,558,971 and net unrealized depreciation from
investments for those securities having an excess of cost over value of
$557,606.

The difference between book-basis and tax-basis net unrealized appreciation
is attributable to differing treatments for the discount accretion/premium
amortization on debt securities.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee
Federated Investment Counseling, is the Fund's investment adviser (the
"Adviser"), subject to the direction of the Directors. The Adviser provides
investment adviser services at no fee. The Adviser may voluntarily choose to
reimburse certain operating expenses of the Fund. The Adviser can modify or
terminate this reimbursement at any time at its sole discretion.

Administrative Fee
Federated Administrative Services, Inc. (FASI), under the Administrative
Services Agreement, provides the Fund with administrative personnel and
services. The fee paid to FASI is based on the average aggregate daily net
assets of the Trust as specified below:

Maximum Average Aggregate Daily
Administrative Fee Net Assets of the Trust
0.150% on the first $5 billion
0.125% on the next $5 billion
0.100% on the next $10 billion
0.075% on assets in excess of
$20 billion

The administrative fee received during any fiscal year shall be at least
$150,000 per portfolio. FASI may voluntarily choose to waive any portion of
its fee. FASI can modify or terminate this voluntary waiver at any time at
its sole discretion.
- ------------------------------------------------------------------------------

General
Certain of the Officers and Directors of the Fund are Officers and Directors
or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding long-term U.S. government
securities and short-term obligations, for the year ended November 30, 2005,
were as follows:

Purchases $ 239,209,436
Sales $ 58,754,781

7. CONCENTRATION OF CREDIT RISK
- ------------------------------------------------------------------------------
Compared to diversified mutual funds, the Fund may invest a higher percentage
of its assets among fewer issuers of portfolio securities. This increases the
Fund's risk by magnifying the impact (positively or negatively) that any one
issuer has on the Fund's share price and performance. The Fund invests in
securities of non-U.S. issuers. The political or economic developments within
a particular country or region may have an adverse effect on the ability of
domiciled issuers to meet their obligations. Additionally, political or
economic developments may have an effect on the liquidity and volatility of
portfolio securities and currency holdings.

At November 30, 2005, the diversification of countries was as follows:

Percentage of
Country Net Assets
Russia 21.3%
Brazil 21.2%
Mexico 11.6%
Venezuela 10.2%
Philippines 9.0%
Colombia 6.1%
Turkey 5.6%
Peru 3.1%
Kazakhstan 1.9%
Argentina 1.6%
El Salvador 1.0%
Ukrainan SSR 0.9%
Guatemala 0.6%
Panama 0.3%
Poland 0.3%

- ------------------------------------------------------------------------------

8. LEGAL PROCEEDINGS
Beginning in October, 2003, Federated Investors, Inc. and various
subsidiaries thereof (including the advisers and distributor for various
investment companies, collectively, "Federated"), along with various
investment companies sponsored by Federated ("Funds") were named as
defendants in several class action lawsuits now pending in the United States
District Court for the District of Maryland. The lawsuits were purportedly
filed on behalf of people who purchased, owned and/or redeemed shares of
Federated-sponsored mutual funds during specified periods beginning
November 1, 1998. The suits are generally similar in alleging that Federated
engaged in illegal and improper trading practices including market timing and
late trading in concert with certain institutional traders, which allegedly
caused financial injury to the mutual fund shareholders. These lawsuits began
to be filed shortly after Federated's first public announcement that it had
received requests for information on shareholder trading activities in the
Funds from the Securities and Exchange Commission ("SEC"), the Office of the
New York State Attorney General ("NYAG"), and other authorities. In that
regard, on November 28, 2005, Federated announced that it had reached final
settlements with the SEC and the NYAG with respect to those matters. As
Federated previously reported in 2004, it has already paid approximately
$8.0 million to certain funds as determined by an independent consultant. As
part of these settlements, Federated agreed to pay for the benefit of fund
shareholders additional disgorgement and a civil money penalty in the
aggregate amount of an additional $72 million. Federated and various Funds
have also been named as defendants in several additional lawsuits, the
majority of which are now pending in the United States District Court for the
Western District of Pennsylvania, alleging, among other things, excessive
advisory and rule 12b-1 fees. The Board of the Funds has retained the law
firm of Dickstein Shapiro Morin & Oshinsky LLP to represent the Funds in
these lawsuits. Federated and the Funds, and their respective counsel, are
reviewing the allegations and will respond appropriately. Additional lawsuits
based upon similar allegations may be filed in the future. The potential
impact of these lawsuits, all of which seek unquantified damages, attorneys'
fees and expenses, and future potential similar suits is uncertain. Although
we do not believe that these lawsuits will have a material adverse effect on
the Funds, there can be no assurance that these suits, the ongoing adverse
publicity and/or other developments resulting from the regulatory
investigations will not result in increased Fund redemptions, reduced sales
of Fund shares, or other adverse consequences for the Funds.

REPORT OF INDEPENDENT AUDITORS

TO THE BOARD OF DIRECTORS OF FEDERATED CORE TRUST II, L.P. AND SHAREHOLDERS
OF EMERGING MARKETS FIXED INCOME CORE FUND:

We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Emerging Markets Fixed Income Core
Fund (the "Fund") (one of the portfolios constituting Federated Core Trust
II, L.P.) as of November 30, 2005, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of
the two years in the period then ended, and the financial highlights for each
of the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We
were not engaged to perform an audit of the Fund's internal control over
financial reporting. Our audits included consideration of internal control
over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. Our procedures
included confirmation of securities owned as of November 30, 2005, by
correspondence with the custodian and brokers or by other appropriate
auditing procedures where replies from brokers were not received. We believe
that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Emerging Markets Fixed Income Core Fund, a portfolio of Federated Core Trust
II, L.P., at November 30, 2005, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended, and its financial highlights for each of the periods
indicated therein, in conformity with accounting principles generally
accepted in the United States.

Ernst & Young LLP

Boston, Massachusetts
January 13, 2006

BOARD OF DIRECTORS AND TRUST OFFICERS

The Board is responsible for managing the Trust's business affairs and for
exercising all the Trust's powers except those reserved for the shareholders.
The following tables give information about each Board member and the senior
officers of the Fund. Where required, the tables separately list Board
members who are "interested persons" of the Fund (i.e., "Interested" Board
members) and those who are not (i.e., "Independent" Board members). Unless
otherwise noted, the address of each person listed is Federated Investors
Tower, 1001 Liberty Avenue, Pittsburgh, PA. As of December 31, 2005, the
Trust comprised three portfolios, and the Federated Fund Complex consisted of
43 investment companies (comprising 136 portfolios). Unless otherwise noted,
each Officer is elected annually. Unless otherwise noted, each Board member
oversees all portfolios in the Federated Fund Complex and serves for an
indefinite term. The Fund's Statement of Additional Information includes
additional information about Trust Directors and is available, without charge
and upon request, by calling 1-800-341-7400.

INTERESTED DIRECTORS BACKGROUND

Name
Birth Date
Address
Positions Held with
Trust Principal Occupation(s) for Past Five Years, Other
Date Service Began Directorships Held and Previous Position(s)
John F. Donahue* Principal Occupations: Director or Trustee of the
Birth Date: July 28, Federated Fund Complex; Chairman and Director,
1924 Federated Investors, Inc.
DIRECTOR
Began serving: Previous Positions: Chairman of the Federated Fund
November 2000 Complex; Trustee, Federated Investment Management
Company and Chairman and Director, Federated
Investment Counseling.

J. Christopher Donahue* Principal Occupations: Principal Executive Officer
Birth Date: April 11, and President of the Federated Fund Complex;
1949 Director or Trustee of some of the Funds in the
PRESIDENT AND DIRECTOR Federated Fund Complex; President, Chief Executive
Began serving: Officer and Director, Federated Investors, Inc.;
November 2000 Chairman and Trustee, Federated Investment
Management Company; Trustee, Federated Investment
Counseling; Chairman and Director, Federated Global
Investment Management Corp.; Chairman, Passport
Research, Ltd. (Investment advisory subsidiary of
Federated) and Passport Research II, Ltd.
(Investment advisory subsidiary of Federated);
Trustee, Federated Shareholder Services Company;
Director, Federated Services Company.

Previous Positions: President, Federated Investment
Counseling; President and Chief Executive Officer,
Federated Investment Management Company, Federated
Global Investment Management Corp. and Passport
Research, Ltd.

Lawrence D. Ellis, M.D.* Principal Occupations: Director or Trustee of the
Birth Date: October 11, Federated Fund Complex; Professor of Medicine,
1932 University of Pittsburgh; Medical Director,
3471 Fifth Avenue University of Pittsburgh Medical Center Downtown;
Suite 1111 Hematologist, Oncologist and Internist, University
Pittsburgh, PA of Pittsburgh Medical Center.
DIRECTOR
Began serving: Other Directorships Held: Member, National Board of
November 2001 Trustees, Leukemia Society of America.

Previous Positions: Trustee, University of
Pittsburgh; Director, University of Pittsburgh
Medical Center.

- ------------------------------------------------------------------------------
* Family relationships and reasons for "interested" status: John F. Donahue
is the father of J. Christopher Donahue; both are "interested" due to the
positions they hold with Federated Investors, Inc. and its subsidiaries.
Lawrence D. Ellis, M.D. is "interested" because his son-in-law is employed by
the Fund's principal underwriter, Federated Securities Corp.

INDEPENDENT DIRECTORS BACKGROUND

Name
Birth Date
Address
Positions Held with
Trust Principal Occupation(s) for Past Five Years, Other
Date Service Began Directorships Held and Previous Position(s)
Thomas G. Bigley Principal Occupation: Director or Trustee of the
Birth Date: February 3, Federated Fund Complex.
1934
15 Old Timber Trail Other Directorships Held: Director, Member of
Pittsburgh, PA Executive Committee, Children's Hospital of
DIRECTOR Pittsburgh; Director, University of Pittsburgh.
Began serving:
November 2001 Previous Position: Senior Partner, Ernst & Young
LLP.

John T. Conroy, Jr. Principal Occupations: Director or Trustee of the
Birth Date: June 23, Federated Fund Complex; Chairman of the Board,
1937 Investment Properties Corporation; Partner or
Investment Properties Trustee in private real estate ventures in
Corporation Southwest Florida.
3838 North Tamiami
Trail Previous Positions: President, Investment
Suite 402 Properties Corporation; Senior Vice President, John
Naples, FL R. Wood and Associates, Inc., Realtors; President,
DIRECTOR Naples Property Management, Inc. and Northgate
Began serving: Village Development Corporation.
November 2001

Nicholas P. Constantakis Principal Occupations: Director or Trustee of the
Birth Date: Federated Fund Complex.
September 3, 1939
175 Woodshire Drive Other Directorships Held: Director and Member of
Pittsburgh, PA the Audit Committee, Michael Baker Corporation
DIRECTOR (engineering and energy services worldwide).
Began serving:
November 2001 Previous Position: Partner, Andersen Worldwide SC.

John F. Cunningham Principal Occupation: Director or Trustee of the
Birth Date: March 5, Federated Fund Complex.
1943
353 El Brillo Way Other Directorships Held: Chairman, President and
Palm Beach, FL Chief Executive Officer, Cunningham & Co., Inc.
DIRECTOR (strategic business consulting); Trustee Associate,
Began serving: Boston College.
November 2001
Previous Positions: Director, Redgate
Communications and EMC Corporation (computer
storage systems); Chairman of the Board and Chief
Executive Officer, Computer Consoles, Inc.;
President and Chief Operating Officer, Wang
Laboratories; Director, First National Bank of
Boston; Director, Apollo Computer, Inc.

Peter E. Madden Principal Occupation: Director or Trustee of the
Birth Date: March 16, Federated Fund Complex.
1942
One Royal Palm Way Other Directorships Held: Board of Overseers,
100 Royal Palm Way Babson College.
DIRECTOR
Began serving: Previous Positions: Representative, Commonwealth of
November 2001 Massachusetts General Court; President, State
Street Bank and Trust Company and State Street
Corporation (retired); Director, VISA USA and VISA
International; Chairman and Director, Massachusetts
Bankers Association; Director, Depository Trust
Corporation; Director, The Boston Stock Exchange.

Charles F. Mansfield, Principal Occupations: Director or Trustee of the
Jr. Federated Fund Complex; Management Consultant.
Birth Date: April 10,
1945 Previous Positions: Chief Executive Officer, PBTC
80 South Road International Bank; Partner, Arthur Young & Company
Westhampton Beach, NY (now Ernst & Young LLP); Chief Financial Officer of
DIRECTOR Retail Banking Sector, Chase Manhattan Bank; Senior
Began serving: Vice President, HSBC Bank USA (formerly, Marine
November 2001 Midland Bank); Vice President, Citibank; Assistant
Professor of Banking and Finance, Frank G. Zarb
School of Business, Hofstra University; Executive
Vice President, DVC Group, Inc. (marketing
communications and technology).

John E. Murray, Jr., Principal Occupations: Director or Trustee, and
J.D., S.J.D. Chairman of the Board of Directors or Trustees, of
Birth Date: the Federated Fund Complex; Chancellor and Law
December 20, 1932 Professor, Duquesne University; Partner, Murray,
Chancellor, Duquesne Hogue and Lannis.
University
Pittsburgh, PA Other Directorships Held: Director, Michael Baker
DIRECTOR Corp. (engineering, construction, operations and
Began serving: technical services).
November 2001
Previous Positions: President, Duquesne University;
Dean and Professor of Law, University of Pittsburgh
School of Law; Dean and Professor of Law, Villanova
University School of Law.

Marjorie P. Smuts Principal Occupations: Director or Trustee of the
Birth Date: June 21, Federated Fund Complex; Public Relations/Marketing
1935 Consultant/Conference Coordinator.
4905 Bayard Street
Pittsburgh, PA Previous Positions: National Spokesperson, Aluminum
DIRECTOR Company of America; television producer; President,
Began serving: Marj Palmer Assoc.; Owner, Scandia Bord.
November 2001

John S. Walsh Principal Occupations: Director or Trustee of the
Birth Date: Federated Fund Complex; President and Director,
November 28, 1957 Heat Wagon, Inc. (manufacturer of construction
2604 William Drive temporary heaters); President and Director,
Valparaiso, IN Manufacturers Products, Inc. (distributor of
DIRECTOR portable construction heaters); President, Portable
Began serving: Heater Parts, a division of Manufacturers Products,
November 2001 Inc.

Previous Position: Vice President, Walsh & Kelly,
Inc.

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OFFICERS

Name
Birth Date
Positions Held with
Trust Principal Occupation(s) for Past Five Years and
Date Began Serving Previous Position(s)
John W. McGonigle Principal Occupations: Executive Vice President and
Birth Date: October 26, Secretary of the Federated Fund Complex; Vice
1938 Chairman, Executive Vice President, Secretary and
EXECUTIVE VICE Director, Federated Investors, Inc.
PRESIDENT AND SECRETARY
Began serving: Previous Positions: Trustee, Federated Investment
November 2000 Management Company and Federated Investment
Counseling; Director, Federated Global Investment
Management Corp., Federated Services Company and
Federated Securities Corp.

Richard A Novak Principal Occupations: Principal Financial Officer
Birth Date: and Treasurer of the Federated Fund Complex; Senior
December 25, 1963 Vice President, Federated Administrative Services;
TREASURER Financial and Operations Principal for Federated
Began serving: Securities Corp., Edgewood Services, Inc. and
January 1, 2006 Southpointe Distribution Services, Inc.; Senior Vice
President and Controller of Federated Investors, Inc.

Previous Positions: Vice President, Finance of
Federated Services Company; held various financial
management positions within The Mercy Hospital of
Pittsburgh; Auditor, Arthur Anderson & Co.

Richard B. Fisher Principal Occupations: Vice Chairman or Vice
Birth Date: May 17, 1923 President of some of the Funds in the Federated Fund
VICE CHAIRMAN Complex; Vice Chairman, Federated Investors, Inc.;
Began serving: Chairman, Federated Securities Corp.
August 2002
Previous Positions: President and Director or
Trustee of some of the Funds in the Federated Fund
Complex; Executive Vice President, Federated
Investors, Inc. and Director and Chief Executive
Officer, Federated Securities Corp.

Robert J. Ostrowski Principal Occupations: Robert J. Ostrowski joined
Birth Date: April 26, Federated in 1987 as an Investment Analyst and
1963 became a Portfolio Manager in 1990. He was named
CHIEF INVESTMENT OFFICER Chief Investment Officer of taxable fixed income
Began serving: May 2004 products in 2004 and also serves as a Senior
Portfolio Manager. He has been a Senior Vice
President of the Fund's Adviser since 1997.
Mr. Ostrowski is a Chartered Financial Analyst. He
received his M.S. in Industrial Administration from
Carnegie Mellon University.

Todd A. Abraham Todd A. Abraham is Vice President of the Trust.
Birth Date: Mr. Abraham has been a Portfolio Manager since 1995
February 10, 1966 and a Vice President of the Fund's Adviser since
VICE PRESIDENT 1997. Mr. Abraham joined Federated in 1993 as an
Began serving: May 2004 Investment Analyst and served as Assistant Vice
President from 1995 to 1997. Mr. Abraham served as a
Portfolio Analyst at Ryland Mortgage Co. from
1992-1993. Mr. Abraham is a Chartered Financial
Analyst and received his M.B.A. in Finance from
Loyola College.

David P. Gilmore David P. Gilmore is Vice President of the Trust.
Birth Date: Mr. Gilmore joined Federated in August 1997 as an
November 11, 1970 Investment Analyst. He was promoted to Senior
VICE PRESIDENT Investment Analyst in July 1999 and became a Vice
Began serving: May 2004 President of the Fund's Adviser in July 2001.
Mr. Gilmore was a Senior Associate with Coopers &
Lybrand from January 1992 to May 1995. Mr. Gilmore
is a Chartered Financial Analyst and attended the
University of Virginia, where he earned his M.B.A.,
from September 1995 to May 1997. Mr. Gilmore has a
B.S. from Liberty University.

Robert M. Kowit Robert M. Kowit has been the Fund's Portfolio
Birth Date: June 27, Manager since inception. He is Vice President of the
1945 Trust. Mr. Kowit joined Federated in 1995 as a
VICE PRESIDENT Senior Portfolio Manager and a Vice President of the
Began serving: Fund's Adviser. Mr. Kowit served as a Managing
February 2001 Partner of Copernicus Global Asset Management from
January 1995 through October 1995. From 1990 to
1994, he served as Senior Vice President/Portfolio
Manager of International Fixed Income and Foreign
Exchange for John Hancock Advisers. Mr. Kowit
received his M.B.A. from Iona College with a
concentration in finance.

- ------------------------------------------------------------------------------

BOARD REVIEW OF ADVISORY CONTRACT

As required by the Act, the Fund's Board has reviewed the Fund's investment
advisory contract. The Board's decision to approve the contract reflects the
exercise of its business judgment on whether to continue the existing
arrangements. The Fund is unusual in that it is designed for the efficient
management of a particular asset class and is made available for investment
only to other Federated funds and a limited number of other separate
accounts. In addition, the Fund does not pay an investment advisory fee.

During its review of the investment advisory contract, the Board considers
many factors, among the most material of which are: the Fund's investment
objectives; the Adviser's management philosophy, personnel, processes, and
investment and operating strategies; long term performance; the range and
quality of services provided to the Fund by the Federated organization in
addition to investment advisory services; and the Fund's relationship to the
Federated family of funds.

In its decision to appoint or renew the Adviser, the Board is mindful of the
potential disruptions of the Fund's operations and various risks,
uncertainties and other effects that could occur as a result of a decision to
terminate or not renew an advisory contract. As previously noted, the Fund
does not pay an investment advisory fee; however, the Board does consider the
compensation and benefits received by the Adviser, including fees received
for services provided to the Fund by other entities in the Federated
organization and research services received by the Adviser from brokers that
execute fund trades. In this regard, the Board is aware that various courts
have interpreted provisions of the Act and have indicated in their decisions
that the following factors may be relevant to an Adviser's fiduciary duty
with respect to its receipt of compensation from a fund: the nature and
quality of the services provided by the Adviser, including the performance of
the Fund; the Adviser's cost of providing the services; the extent to which
the Adviser may realize "economies of scale" as the Fund grows larger; any
indirect benefits that may accrue to the Adviser and its affiliates as a
result of the Adviser's relationship with the Fund; performance and expenses
of comparable funds; and the extent to which the independent Board members
are fully informed about all facts bearing on the Adviser's service and fee.
The Fund's Board is aware of these factors and is guided by them in its
review of the Fund's advisory contract to the extent they are appropriate and
relevant, as discussed further below.

The Board considers and weighs these circumstances in light of its
substantial accumulated experience in governing the Fund and working with
Federated on matters relating to the Federated funds, and is assisted in its
deliberations by the advice of independent legal counsel. In this regard,
the Board requests and receives substantial and detailed information about
the Fund and the Federated organization. Federated provides much of this
information at each regular meeting of the Board, and furnishes additional
reports in connection with the particular meeting at which the Board's formal
review of the advisory contract occurs. In between regularly scheduled
meetings, the Board may receive information on particular matters as the need
arises. Thus, the Board's evaluation of an advisory contract is informed by
reports covering such matters as: the Adviser's investment philosophy,
personnel, and processes; operating strategies; the Fund's short- and
long-term performance (in absolute terms, both on a gross basis and net of
expenses, as well as in relationship to its particular investment program and
certain competitor or "peer group" funds and/or other benchmarks, as
appropriate), and comments on the reasons for performance; the overall
expense structure of the Fund, both in absolute terms and relative to similar
and/or competing funds, with due regard for contractual or voluntary expense
limitations; the use and allocation of brokerage commissions derived from
trading the Fund's portfolio securities (if any); the nature and extent of
the advisory and other services provided to the Fund by the Adviser and its
affiliates; compliance and audit reports concerning the Federated funds and
the Federated companies that service them (including communications from
regulatory agencies), as well as Federated's responses to any issues raised
therein; and relevant developments in the mutual fund industry and how the
Federated funds and/or Federated are responding to them. The evaluation
process is evolutionary, reflecting continually developing considerations.
The criteria considered and the emphasis placed on relevant criteria change
in recognition of changing circumstances in the mutual fund marketplace. For
the past year, the Board concluded that the nature, quality and scope of
services provided the Fund by the Adviser and its affiliates was
satisfactory.

The Board also receives financial information about Federated, including
reports on the compensation and benefits Federated derives from its
relationships with the Federated funds. Because the Fund does not pay an
advisory fee, these reports generally cover fees received by Federated's
subsidiaries for providing other services to the Fund under separate
contracts (e.g., for serving as the Funds' administrator). The reports also
discuss any indirect benefit Federated may derive from its receipt of
research services from brokers who execute Federated fund trades as well as
waivers of fees and/or reimbursements of expenses.

The Board bases its decision to approve an advisory contract on the totality
of the circumstances and relevant factors and with a view to past and future
long-term considerations. Not all of the factors and considerations
identified above are relevant to the Fund, nor does the Board consider any
one of them to be determinative. In particular, due to the unusual nature of
the Fund as primarily an internal product with no advisory fee, the Board
does not consider the profitability of the Adviser, the cost of providing the
advisory services or the assessment of whether economies of scale would be
realized if the Fund were to grow to some sufficient size to be relevant.
With respect to the factors that are relevant, the Board's decision to
approve the contract reflects its determination that Federated's performance
and actions provide a satisfactory basis to support the decision to continue
the existing arrangements.

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

A description of the policies and procedures that the Fund uses to determine
how to vote proxies, if any, relating to securities held in the Fund's
portfolio is available, without charge and upon request, by calling
1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such
proxies during the most recent 12-month period ended June 30 is available
from the EDGAR database on the SEC's website at www.sec.gov.

QUARTERLY PORTFOLIO SCHEDULE

The Fund files with the SEC a complete schedule of its portfolio holdings, as
of the close of the first and third quarters of its fiscal year, on
"Form N-Q." These filings are available on the SEC's website at www.sec.gov
and may be reviewed and copied at the SEC's Public Reference Room in
Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the
Public Reference Room.)

Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal.

This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Fund's prospectus, which contains facts
concerning its objective and policies, management fees, expenses, and other
information.

Cusip 31409R102

28172 (1/06)

CAPITAL APPRECIATION CORE FUND

ANNUAL REPORT
November 30, 2005

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
REPORT OF INDEPENDENT AUDITORS
BOARD OF DIRECTORS AND TRUST OFFICERS
BOARD REVIEW OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

Period
Year Ended November 30 Ended
2005 2004 11/30/2003(1)
Net Asset Value, Beginning of Period $11.21 $10.14 $10.00
Income From Investment Operations:
Net investment income 0.22 (2) 0.25 0.01
Net realized and unrealized gain on
investments 0.52 0.82 0.13
TOTAL FROM INVESTMENT OPERATIONS 0.74 1.07 0.14
Net Asset Value, End of Period $11.95 $11.21 $10.14
Total Return(3) 6.60% 10.55% 1.40%

Ratios to Average Net Assets:
Net expenses 0.05%(5) 0.05% 0.05%(4)
Net investment income 1.89% 2.09% 2.21%(4)
Expense waiver/reimbursement(6) 0.11% 0.08% 0.49%(4)
Supplemental Data:
Net assets, end of period (000
omitted) $162,139 $197,818 $185,555
Portfolio turnover 51% 55% 8%

- ------------------------------------------------------------------------------
1 Reflects operations for the period from October 28, 2003 (date of initial
investment) to November 30, 2003.
2 Based on average shares outstanding.
3 Based on net asset value, which does not reflect the sales charge,
redemption fee or contingent deferred sales charge, if applicable. Total
returns for periods of less than one year are not annualized.
4 Computed on an annualized basis.
5 The expense ratio is calculated without reduction for fees paid indirectly
for directed brokerage arrangements. The expense ratio is 0.05% for the year
ended November 30, 2005 after taking into account these expense reductions.
6 This expense decrease is reflected in both the net expense and the net
investment income ratios shown above.
See Notes which are an integral part of the Financial Statements

SHAREHOLDER EXPENSE EXAMPLE

Beginning Ending
Account Value Account Value Expenses Paid
6/1/2005 11/30/2005 During Period 1

Actual $1,000 $1,042.80 $0.26
Hypothetical (assuming a 5% return
before expenses) $1,000 $1,024.82 $0.25

1.....Expenses are equal to the Fund's annualized net expense ratio of 0.05%,
multiplied by the average account value over the period, multiplied by
183/365 (to reflect the one-half year period).

- ------------------------------------------------------------------------------

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

This report covers Capital Appreciation Core Fund's fiscal year performance
period from December 1, 2004, through November 30, 2005. During this period,
the Fund produced a total return of 6.60%.

The Fund underperformed its benchmark, the Standard & Poor's 500 Index(1)
(S&P 500), which returned 8.46% during the same period. The Fund also trailed
its peer group as measured by the Lipper Large Cap Core Funds Average(2)
category, which produced a total return of 8.20% for the same period.

Stock prices were lower in the first five months of the reporting period
before rising during the summer months. The total return of the S&P 500 for
the December to April period was (0.74)% and for the May to July period was
7.17%. Stock prices were flat to slightly down in August and September before
rising in the final two months of the reporting period with the S&P 500
returning (0.11)% for the August to September period and 2.07% for the
October to November period. In general, small and mid cap investment
strategies outperformed large cap strategies during the reporting period.
This negatively influenced the Fund's relative performance, as it had a
larger market cap bias as compared to the index. Value-based strategies
generally slightly outperformed growth-based strategies. This had a slightly
positive influence on the Fund's performance as it had a slight value tilt
during most of the year.

Both stock selection and sector allocation were negative contributors to the
Fund's negative relative performance. From a sector positioning standpoint
the Fund's returns were limited by its cash position in a rising market. The
Fund also was negatively impacted by being underweight Healthcare and
Utilities. The Fund's returns were aided overall by being underweight
Financials, early in the year followed by a move to overweight later in the
year. The Fund also benefited from being overweight Consumer Staples early in
the year followed by a move to underweight later in the year, as well as
being underweight Industrials, on average. On a stock selection basis, the
Fund's return was hindered by stock performance within Healthcare, Energy and
Industrials. The Fund benefited from stock performance within Consumer
Staples, Information Technology and Consumer Discretionary.

Top Contributors during the year were: Altria Group, Inc., Exxon Mobil Corp.,
Transocean Sedco Forex, Inc., Gillette Co. and Intel Corp. Bottom
Contributors during the year were: Pfizer, Inc., Federal National Mortgage
Association, Dell, Inc., Verizon Communications and Tyco International Ltd.

1 The S&P 500 Index is an unmanaged capitalization-weighted index of 500
stocks designed to measure performance of the broad domestic economy through
changes in the aggregate market value of 500 stocks representing all major
industries. Investments cannot be made in an index.
2 Lipper figures represent the average total returns reported by all mutual
funds designated by Lipper, Inc. as falling into the category indicated.
These figures do not reflect sales charges. Investments cannot be made in an
average.

GROWTH OF A $10,000 INVESTMENT
The graph below illustrates the hypothetical investment of $10,000(1) in
Capital Appreciation Core Fund (the "Fund") from October 28, 2003 (start of
performance) to November 30, 2005, compared to the Standard and Poor's 500
Index (S&P 500)(2).

Average Annual Total Returns for the Period Ended
11/30/2005
1 Year 6.60%
Start of Performance (10/28/2003) 8.88%

- ------------------------------------------------------------------------------

The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed underneath. Capital
Appreciation Core Fund (the "Fund") is represented by a solid line. The
Standard and Poor's 500 Index is represented by a dotted line. The line graph
is a visual representation of a comparison of change in value of a $10,000
hypothetical investment in shares of the Fund and the Standard and Poor's 500
Index . The "x" axis reflects computation periods from October 28, 2003 to
November 30, 2005. The "y" axis reflects the cost of the investment. The
right margin reflects the ending value of the hypothetical investment in the
Fund's shares as compared to the Standard and Poor's 500 Index. The ending
values were $11,950 and $12,588, respectively.

Performance data quoted represents past performance which is no guarantee of
future results. Investment return and principal value will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Mutual fund performance changes over time and current
performance may be lower or higher than what is stated. For current to the
most recent month-end performance and after-tax returns, call 1-800-341-7400.
Returns shown do not reflect the deduction of taxes that a shareholder would
pay on Fund distributions or the redemption of Fund shares. Mutual funds are
not obligations of or guaranteed by any bank and are not federally insured.

1 Represents a hypothetical investment of $10,000. The Fund's performance
assumes the reinvestment of all dividends and distributions. The S&P 500
has been adjusted to reflect reinvestment of dividends on securities in the
index.
2 The S&P 500 is not adjusted to reflect sales charges, expenses, or other
fees that the Securities and Exchange Commission requires to be reflected
in the Fund's performance. The index is unmanaged, and, unlike the Fund, is
not affected by cashflows. It is not possible to invest directly in an
index.

PORTFOLIO OF INVESTMENTS SUMMARY TABLE

At November 30, 2005, the Fund's sector composition1 was as follows:

Percentage of
Sector Total Net Assets
Financials 22.9%
Information Technology 16.3%
Healthcare 13.2%
Energy 12.5%
Consumer Discretionary 10.9%
Industrials 8.7%
Consumer Staples 7.2%
Telecommunication Services 6.1%
Materials 0.9%
Cash Equivalents(2) 1.1%
Other Assets and Liabilities - 0.2%
Net(3)
TOTAL 100.0%
1 Except for Cash Equivalents and Other Assets and Liabilities, sector
classifications are based upon, and individual portfolio securities are
assigned to, the classifications of the Global Industry Classification
Standard (GICS) except that the adviser assigns a classification to
securities not classified by the GICS and to securities for which the adviser
does not have access to the classification made by the GICS.
- ------------------------------------------------------------------------------
2 Cash Equivalents includes any investments in money market mutual funds
and/or overnight repurchase agreements.
3 See Statement of Assets and Liabilities.

PORTFOLIO OF INVESTMENTS

November 30, 2005

Shares or
Principal Amount Value
COMMON STOCKS--98.7%
Consumer Discretionary--10.9%

13,000 Gap (The), Inc. $ 225,940
81,200 Home Depot, Inc. 3,392,536
26,100 (1)Interpublic Group Cos., Inc. 243,252
65,700 Mattel, Inc. 1,093,905
93,300 McDonald's Corp. 3,158,205
22,000 Nike, Inc., Class B 1,876,600
47,300 Target Corp. 2,531,023
140,600 Time Warner, Inc. 2,527,988
78,913 Viacom, Inc., Class B 2,635,694
TOTAL 17,685,143
Consumer Staples--7.2%
43,200 Altria Group, Inc. 3,144,528
78,400 Coca-Cola Co. 3,346,896
54,600 (1)Kroger Co. 1,062,516
27,400 PepsiCo, Inc. 1,622,080
28,958 Procter & Gamble Co. 1,656,108
17,800 Wal-Mart Stores, Inc. 864,368
TOTAL 11,696,496
Energy--12.5%
13,500 Apache Corp. 881,280
89,274 Chevron Corp. 5,116,293
26,600 ConocoPhillips 1,609,566
12,000 (1)Cooper Cameron Corp. 955,560
130,064 Exxon Mobil Corp. 7,547,614
18,800 GlobalSantaFe Corp. 852,768
52,500 (1)Transocean Sedco Forex, Inc. 3,351,600
TOTAL 20,314,681
Financials--22.9%
59,500 Ace Ltd. 3,302,250
44,804 Allstate Corp. 2,513,504
47,916 American International Group, Inc. 3,217,080
54,792 Bank of America Corp. 2,514,405
75,765 Citigroup, Inc. 3,678,391
39,700 Federal Home Loan Mortgage Corp. 2,479,265
46,100 Federal National Mortgage Association 2,215,105
14,300 Goldman Sachs Group, Inc. 1,844,128
57,500 J.P. Morgan Chase & Co. 2,199,375
63,100 MBNA Corp. 1,689,187
62,300 Merrill Lynch & Co., Inc. 4,137,966
67,400 Morgan Stanley 3,776,422
55,700 Wells Fargo & Co. 3,500,745
TOTAL 37,067,823
Healthcare--13.2%
61,400 Abbott Laboratories 2,315,394
57,200 Baxter International, Inc. 2,224,508
16,000 (1)Cephalon, Inc. 813,600
67,300 Johnson & Johnson 4,155,775
29,100 McKesson HBOC, Inc. 1,463,730
46,400 Medtronic, Inc. 2,578,448
36,900 Merck & Co., Inc. 1,084,860
173,741 Pfizer, Inc. 3,683,309
74,600 Wyeth 3,100,376
TOTAL 21,420,000
Industrials--8.7%
17,800 Deere & Co. 1,234,430
143,400 General Electric Co. 5,122,248
35,500 Northrop Grumman Corp. 2,036,635
94,100 Tyco International Ltd. 2,683,732
38,300 United Parcel Service, Inc. 2,983,570
TOTAL 14,060,615
Information Technology--16.3%
126,200 Applied Materials, Inc. 2,285,482
96,400 (1)Cisco Systems, Inc. 1,690,856
54,400 (1)Dell, Inc. 1,640,704
174,500 (1)EMC Corp. Mass 2,430,785
2,700 (1)Google Inc. 1,093,473
28,500 IBM Corp. 2,533,650
94,600 Intel Corp. 2,523,928
21,600 KLA-Tencor Corp. 1,105,704
236,300 Microsoft Corp. 6,547,873
201,100 (1)Oracle Corp. 2,527,827
31,100 Paychex, Inc. 1,318,951
53,800 (1)Xerox Corp. 763,960
TOTAL 26,463,193
Materials--0.9%
54,000 Alcoa, Inc. 1,480,140
Telecommunication Services--6.1%
131,700 AT&T, Inc. 3,280,647
19,900 Alltel Corp. 1,329,917
95,600 BellSouth Corp. 2,606,056
80,418 Verizon Communications 2,571,768
TOTAL 9,788,388
TOTAL COMMON STOCKS (IDENTIFIED COST
$142,480,020) 159,976,479
REPURCHASE AGREEMENT--1.1%
$ 1,832,000 Interest in $3,275,000,000 joint repurchase
agreement 4.04%, dated 11/30/2005 under which Bank
of America N.A. will repurchase a U.S. Government
Agency security with a maturity of 7/1/2035 for
$3,275,367,528 on 12/1/2005. The market value of
the underlying security at the end of the period
was $3,340,500,000 (AT AMORTIZED COST) 1,832,000
TOTAL INVESTMENTS---99.8% (IDENTIFIED COST
$144,312,020)(2) 161,808,479
OTHER ASSETS AND LIABILITIES---NET--0.2% 330,338
TOTAL NET ASSETS---100% $ 162,138,817

- ------------------------------------------------------------------------------
1 Non-income producing security.

2 The cost of investments for federal tax purposes amounts to $144,312,020.

Note: The categories of investments are shown as a percentage of total net
assets at November 30, 2005.

See Notes which are an integral part of the Financial Statements

STATEMENT OF ASSETS AND LIABILITIES

November 30, 2005

Assets:
Total investments in securities, at value
(identified cost $144,312,020) $ 161,808,479
Cash 506
Income receivable 464,047
Receivable for investments sold 1,301,140
TOTAL ASSETS 163,574,172
Liabilities:
Payable for investments purchased $1,389,855
Payable for custodian fees 4,568
Payable for transfer and dividend disbursing
agent fees and expenses 3,188
Payable for portfolio accounting fees 4,933
Accrued expenses 32,811
TOTAL LIABILITIES 1,435,355
Net assets for 13,563,142 shares outstanding $ 162,138,817
Net Assets Consist of:
Paid-in capital $ 127,350,098
Net unrealized appreciation of investments 17,496,459
Accumulated net realized gain on investments 9,326,997
Undistributed net investment income 7,965,263
TOTAL NET ASSETS $ 162,138,817
Net Asset Value, Offering Price and Redemption
Proceeds Per Share
$162,138,817 / 13,563,142 shares outstanding, no
par value, unlimited shares authorized $11.95

- ------------------------------------------------------------------------------

See Notes which are an integral part of the Financial Statements

STATEMENT OF OPERATIONS

Year Ended November 30, 2005

Investment Income:

Dividends $ 3,352,184
Interest 117,053
TOTAL INCOME 3,469,237
Expenses:
Administrative personnel and services fee
(Note 5) 150,000
Custodian fees 13,536
Transfer and dividend disbursing agent
fees and expenses 12,996
Directors'/Trustees' fees 8,421
Auditing fees 22,117
Legal fees 5,479
Portfolio accounting fees 79,851
Insurance premiums 10,779
Miscellaneous 8,290
TOTAL EXPENSES 311,469
Waivers, Reimbursement and Expense
Reduction:
Waiver of administrative personnel and
services fee (Note 5) $ (150,000 )
Waiver of transfer and dividend
disbursing agent fees and expenses (1,313 )
Reimbursement of other operating expenses
(Note 5) (61,938 )
Fees paid indirectly from directed
brokerage arrangements (8,682 )
TOTAL WAIVERS, REIMBURSEMENT AND
EXPENSE REDUCTION (221,933 )
Net expenses 89,536
Net investment income 3,379,701
Realized and Unrealized Gain on
Investments:
Net realized gain on investments 5,684,190
Net change in unrealized appreciation of 2,406,695
investments
Net realized and unrealized gain on 8,090,885
investments
Change in net assets resulting from
operations $ 11,470,586

- ------------------------------------------------------------------------------

See Notes which are an integral part of the Financial Statements

STATEMENT OF CHANGES IN NET ASSETS

Year Ended November 30 2005 2004
Increase (Decrease) in Net Assets
Operations:

Net investment income $ 3,379,701 $ 4,362,421
Net realized gain on investments 5,684,190 3,813,589
Net change in unrealized
appreciation/depreciation of investments 2,406,695 12,487,319
CHANGE IN NET ASSETS RESULTING FROM
OPERATIONS 11,470,586 20,663,329
Share Transactions:
Contributions ---- 28,600,100
Withdrawals (47,150,000) (37,000,001)
CHANGE IN NET ASSETS RESULTING FROM
SHARE TRANSACTIONS (47,150,000) (8,399,901)
Change in net assets (35,679,414) 12,263,428
Net Assets:
Beginning of period 197,818,231 185,554,803
End of period (including undistributed
net investment income of $7,965,263 and
$4,585,562, respectively) $ 162,138,817 $ 197,818,231

- ------------------------------------------------------------------------------

See Notes which are an integral part of the Financial Statements

NOTES TO FINANCIAL STATEMENTS

November 30, 2005

1. ORGANIZATION
Capital Appreciation Core Fund (the "Fund") is a diversified portfolio of
Federated Core Trust II, L.P. (the "Trust"). The Trust is registered under
the Investment Company Act of 1940, as amended (the "Act"). The Trust is a
limited partnership that was established under the laws of the State of
Delaware on November 13, 2000 and offered only to registered investment
companies and other accredited investors. The Trust consists of three
portfolios. The financial statements included herein are only those of the
Fund. The investment objective of the Fund is to provide capital appreciation.

Investment Valuation
Listed equity securities are valued at the last sale price or official
closing price reported on a national securities exchange. If unavailable, the
security is generally valued at the mean between the last closing bid and
asked prices. The Fund generally values short-term securities according to
prices furnished by an independent pricing service, except that short-term
securities with remaining maturities of less than 60 days at the time of
purchase may be valued at amortized cost. Securities for which no quotations
are readily available are valued at fair value as determined in accordance
with procedures established by and under general supervision of the Board of
Directors (the "Directors").

The Fund will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Fund's adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Directors. Risks may arise from the
potential inability of counterparties to honor the terms of the repurchase
agreement. Accordingly, the Fund could receive less than the repurchase price
on the sale of collateral securities. The Fund, along with other affiliated
investment companies, may utilize a joint trading account for the purpose of
entering into one or more repurchase agreements.

Investment Income, Expenses and Distributions
Interest income and expenses are accrued daily. Dividend income is recorded
on the ex-dividend date. Non-cash dividends included in dividend income, if
any, are recorded at fair value. All net income and gain/loss (realized and
unrealized) will be allocated daily to the shareholders based on their
capital contributions to the Fund. The Fund does not currently intend to
declare and pay distributions.

Premium and Discount Amortization
All premiums and discounts on fixed income securities are amortized/accreted
for financial statement purposes.

Other
Investment transactions are accounted for on a trade date basis. Realized
gains and losses from investment transactions are recorded on an identified
cost basis.

3. CONTRIBUTIONS/WITHDRAWALS
Transactions in shares were as follows:

Year Ended November 30 2005 2004
Proceeds from contributions --- 2,713,791
Fair value withdrawals (4,089,855) (3,366,781)
TOTAL CHANGE RESULTING FROM (4,089,855) (652,990)
CONTRIBUTIONS/WITHDRAWALS
4. FEDERAL TAX INFORMATION
- ------------------------------------------------------------------------------

At November 30, 2005, the cost of investments for federal tax purposes was
$144,312,020. The net unrealized appreciation of investments for federal tax
purposes was $17,496,459. This consists of net unrealized appreciation from
investments for those securities having an excess of value over cost of
$21,162,549 and net unrealized depreciation from investments for those
securities having an excess of cost over value of $3,666,090.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee
Federated Investment Counseling is the Fund's investment adviser (the
"Adviser"), subject to the direction of the Directors. The Adviser provides
investment adviser services at no fee. The Adviser may voluntarily choose to
reimburse certain operating expenses of the Fund. The Adviser can modify or
terminate this reimbursement at any time at its sole discretion.

Average Aggregate Daily Net Assets
Maximum Administrative Fee of the Trust
0.150% on the first $5 billion
0.125% on the next $5 billion
0.100% on the next $10 billion
0.075% on assets in excess of $20 billion

- ------------------------------------------------------------------------------

Expense Reduction
The Fund directs portfolio trades to a broker that in turn pays a portion of
the Fund's operating expenses. For the year ended November 30, 2005, the
Fund's expenses were reduced by $8,682 under these arrangements.

General
Certain of the Officers and Directors of the Fund are Officers and Directors
or Trustees of the above companies.

6. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding long-term U.S. government
securities and short-term obligations, for the year ended November 30, 2005,
were as follows:

Purchases $ 88,831,261
Sales $ 129,722,730

7. LEGAL PROCEEDINGS
- ------------------------------------------------------------------------------
Beginning in October, 2003, Federated Investors, Inc. and various
subsidiaries thereof (including the advisers and distributor for various
investment companies, collectively, "Federated"), along with various
investment companies sponsored by Federated ("Funds") were named as
defendants in several class action lawsuits now pending in the United States
District Court for the District of Maryland. The lawsuits were purportedly
filed on behalf of people who purchased, owned and/or redeemed shares of
Federated-sponsored mutual funds during specified periods beginning
November 1, 1998. The suits are generally similar in alleging that Federated
engaged in illegal and improper trading practices including market timing and
late trading in concert with certain institutional traders, which allegedly
caused financial injury to the mutual fund shareholders. These lawsuits began
to be filed shortly after Federated's first public announcement that it had
received requests for information on shareholder trading activities in the
Funds from the Securities and Exchange Commission ("SEC"), the Office of the
New York State Attorney General ("NYAG"), and other authorities. In that
regard, on November 28, 2005, Federated announced that it had reached final
settlements with the SEC and the NYAG with respect to those matters. As
Federated previously reported in 2004, it has already paid approximately
$8.0 million to certain funds as determined by an independent consultant. As
part of these settlements, Federated agreed to pay for the benefit of fund
shareholders additional disgorgement and a civil money penalty in the
aggregate amount of an additional $72 million. Federated and various Funds
have also been named as defendants in several additional lawsuits, the
majority of which are now pending in the United States District Court for the
Western District of Pennsylvania, alleging, among other things, excessive
advisory and rule 12b-1 fees. The Board of the Funds has retained the law
firm of Dickstein Shapiro Morin & Oshinsky LLP to represent the Funds in
these lawsuits. Federated and the Funds, and their respective counsel, are
reviewing the allegations and will respond appropriately. Additional lawsuits
based upon similar allegations may be filed in the future. The potential
impact of these lawsuits, all of which seek unquantified damages, attorneys'
fees and expenses, and future potential similar suits is uncertain. Although
we do not believe that these lawsuits will have a material adverse effect on
the Funds, there can be no assurance that these suits, the ongoing adverse
publicity and/or other developments resulting from the regulatory
investigations will not result in increased Fund redemptions, reduced sales
of Fund shares, or other adverse consequences for the Funds.

REPORT OF INDEPENDENT AUDITORS

TO THE BOARD OF DIRECTORS OF FEDERATED CORE TRUST II, L.P. AND SHAREHOLDERS
OF CAPITAL APPRECIATION CORE FUND:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Capital Appreciation Core Fund
(the "Fund") (one of the portfolios constituting Federated Core Trust II,
L.P.) as of November 30, 2005, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of
the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Capital Appreciation Core Fund of Federated Core Trust II, L.P. at
November 30, 2005, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and its financial highlights for each of the periods indicated therein, in
conformity with accounting principles generally accepted in the United States.

Ernst & Young LLP

Boston, Massachusetts
January 13, 2006

BOARD OF DIRECTORS AND TRUST OFFICERS

INTERESTED DIRECTORS BACKGROUND

Name
Birth Date
Address
Positions Held with
Trust Principal Occupation(s) for Past Five Years, Other Directorships
Date Service Began Held and Previous Position(s)

John F. Donahue* Principal Occupations: Director or Trustee of the Federated Fund
Birth Date: July 28, Complex; Chairman and Director, Federated Investors, Inc.
1924
DIRECTOR Previous Positions: Chairman of the Federated Fund Complex;
Began serving: Trustee, Federated Investment Management Company and Chairman and
November 2000 Director, Federated Investment Counseling.

J. Christopher Donahue* Principal Occupations: Principal Executive Officer and President
Birth Date: April 11, of the Federated Fund Complex; Director or Trustee of some of the
1949 Funds in the Federated Fund Complex; President, Chief Executive
PRESIDENT AND DIRECTOR Officer and Director, Federated Investors, Inc.; Chairman and
Began serving: Trustee, Federated Investment Management Company; Trustee,
November 2000 Federated Investment Counseling; Chairman and Director, Federated
Global Investment Management Corp.; Chairman, Passport Research,
Ltd. (Investment advisory subsidiary of Federated) and Passport
Research II, Ltd. (Investment advisory subsidiary of Federated);
Trustee, Federated Shareholder Services Company; Director,
Federated Services Company.

Previous Positions: President, Federated Investment Counseling;
President and Chief Executive Officer, Federated Investment
Management Company, Federated Global Investment Management Corp.
and Passport Research, Ltd.

Lawrence D. Ellis, M.D.* Principal Occupations: Director or Trustee of the Federated Fund
Birth Date: October 11, Complex; Professor of Medicine, University of Pittsburgh; Medical
1932 Director, University of Pittsburgh Medical Center Downtown;
3471 Fifth Avenue Hematologist, Oncologist and Internist, University of Pittsburgh
Suite 1111 Medical Center.
Pittsburgh, PA
DIRECTOR Other Directorships Held: Member, National Board of Trustees,
Began serving: Leukemia Society of America.
November 2001
Previous Positions: Trustee, University of Pittsburgh; Director,
University of Pittsburgh Medical Center.

INDEPENDENT DIRECTORS BACKGROUND

Name
Birth Date
Address
Positions Held with
Trust Principal Occupation(s) for Past Five Years, Other Directorships
Date Service Began Held and Previous Position(s)

Thomas G. Bigley Principal Occupation: Director or Trustee of the Federated Fund
Birth Date: February 3, Complex.
1934
15 Old Timber Trail Other Directorships Held: Director, Member of Executive Committee,
Pittsburgh, PA Children's Hospital of Pittsburgh; Director, University of
DIRECTOR Pittsburgh.
Began serving:
November 2001 Previous Position: Senior Partner, Ernst & Young LLP.

John T. Conroy, Jr. Principal Occupations: Director or Trustee of the Federated Fund
Birth Date: June 23, Complex; Chairman of the Board, Investment Properties Corporation;
1937 Partner or Trustee in private real estate ventures in Southwest
Investment Properties Florida.
Corporation
3838 North Tamiami Previous Positions: President, Investment Properties Corporation;
Trail Senior Vice President, John R. Wood and Associates, Inc.,
Suite 402 Realtors; President, Naples Property Management, Inc. and
Naples, FL Northgate Village Development Corporation.
DIRECTOR
Began serving:
November 2001

Nicholas P. Constantakis Principal Occupations: Director or Trustee of the Federated Fund
Birth Date: Complex.
September 3, 1939
175 Woodshire Drive Other Directorships Held: Director and Member of the Audit
Pittsburgh, PA Committee, Michael Baker Corporation (engineering and energy
DIRECTOR services worldwide).
Began serving:
November 2001 Previous Position: Partner, Andersen Worldwide SC.

John F. Cunningham Principal Occupation: Director or Trustee of the Federated Fund
Birth Date: March 5, Complex.
1943
353 El Brillo Way Other Directorships Held: Chairman, President and Chief Executive
Palm Beach, FL Officer, Cunningham & Co., Inc. (strategic business consulting);
DIRECTOR Trustee Associate, Boston College.
Began serving:
November 2001 Previous Positions: Director, Redgate Communications and EMC
Corporation (computer storage systems); Chairman of the Board and
Chief Executive Officer, Computer Consoles, Inc.; President and
Chief Operating Officer, Wang Laboratories; Director, First
National Bank of Boston; Director, Apollo Computer, Inc.

Peter E. Madden Principal Occupation: Director or Trustee of the Federated Fund
Birth Date: March 16, Complex.
1942
One Royal Palm Way Other Directorships Held: Board of Overseers, Babson College.
100 Royal Palm Way
DIRECTOR Previous Positions: Representative, Commonwealth of Massachusetts
Began serving: General Court; President, State Street Bank and Trust Company and
November 2001 State Street Corporation (retired); Director, VISA USA and VISA
International; Chairman and Director, Massachusetts Bankers
Association; Director, Depository Trust Corporation; Director, The
Boston Stock Exchange.

Charles F. Mansfield, Principal Occupations: Director or Trustee of the Federated Fund
Jr. Complex; Management Consultant.
Birth Date: April 10,
1945 Previous Positions: Chief Executive Officer, PBTC International
80 South Road Bank; Partner, Arthur Young & Company (now Ernst & Young LLP);
Westhampton Beach, NY Chief Financial Officer of Retail Banking Sector, Chase Manhattan
DIRECTOR Bank; Senior Vice President, HSBC Bank USA (formerly, Marine
Began serving: Midland Bank); Vice President, Citibank; Assistant Professor of
November 2001 Banking and Finance, Frank G. Zarb School of Business, Hofstra
University; Executive Vice President, DVC Group, Inc. (marketing
communications and technology).

John E. Murray, Jr., Principal Occupations: Director or Trustee, and Chairman of the
J.D., S.J.D. Board of Directors or Trustees, of the Federated Fund Complex;
Birth Date: Chancellor and Law Professor, Duquesne University; Partner,
December 20, 1932 Murray, Hogue and Lannis.
Chancellor, Duquesne
University Other Directorships Held: Director, Michael Baker Corp.
Pittsburgh, PA (engineering, construction, operations and technical services).
DIRECTOR
Began serving: Previous Positions: President, Duquesne University; Dean and
November 2001 Professor of Law, University of Pittsburgh School of Law; Dean and
Professor of Law, Villanova University School of Law.
Marjorie P. Smuts Principal Occupations: Director or Trustee of the Federated Fund
Birth Date: June 21, Complex; Public Relations/Marketing Consultant/Conference
1935 Coordinator.
4905 Bayard Street
Pittsburgh, PA Previous Positions: National Spokesperson, Aluminum Company of
DIRECTOR America; television producer; President, Marj Palmer Assoc.;
Began serving: Owner, Scandia Bord.
November 2001

John S. Walsh Principal Occupations: Director or Trustee of the Federated Fund
Birth Date: Complex; President and Director, Heat Wagon, Inc. (manufacturer of
November 28, 1957 construction temporary heaters); President and Director,
2604 William Drive Manufacturers Products, Inc. (distributor of portable construction
Valparaiso, IN heaters); President, Portable Heater Parts, a division of
DIRECTOR Manufacturers Products, Inc.
Began serving:
November 2001 Previous Position: Vice President, Walsh & Kelly, Inc.

OFFICERS
- ------------------------------------------------------------------------------

Name Principal Occupation(s) for Past Five Years and
Birth Date Previous Position(s)
Positions Held with
Trust
Date Began Serving
John W. McGonigle Principal Occupations: Executive Vice President and
Birth Date: Secretary of the Federated Fund Complex; Vice
October 26, 1938 Chairman, Executive Vice President, Secretary and
EXECUTIVE VICE Director, Federated Investors, Inc.
PRESIDENT AND
SECRETARY Previous Positions: Trustee, Federated Investment
Began serving: Management Company and Federated Investment
November 2000 Counseling; Director, Federated Global Investment
Management Corp., Federated Services Company and
Federated Securities Corp.

Previous Positions: Vice President, Finance of
Federated Services Company; held various financial
management positions within The Mercy Hospital of
Pittsburgh; Auditor, Arthur Anderson & Co.

Richard B. Fisher Principal Occupations: Vice Chairman or Vice
Birth Date: May 17, President of some of the Funds in the Federated Fund
1923 Complex; Vice Chairman, Federated Investors, Inc.;
VICE CHAIRMAN Chairman, Federated Securities Corp.
Began serving:
August 2002 Previous Positions: President and Director or
Trustee of some of the Funds in the Federated Fund
Complex; Executive Vice President, Federated
Investors, Inc. and Director and Chief Executive
Officer, Federated Securities Corp.

Stephen F. Auth Principal Occupations: Chief Investment Officer of
Birth Date: this Fund and various other Funds in the Federated
September 3, 1956 Fund Complex; Executive Vice President, Federated
CHIEF INVESTMENT Investment Counseling, Federated Global Investment
OFFICER Management Corp., Federated Equity Management
Began serving: Company of Pennsylvania and Passport Research II,
May 2004 Ltd. (Investment advisory subsidiary of Federated).

Previous Positions: Executive Vice President,
Federated Investment Management Company, and
Passport Research, Ltd. (Investment advisory
subsidiary of Federated); Senior Vice President,
Global Portfolio Management Services Division;
Senior Vice President, Federated Investment
Management Company and Passport Research, Ltd.;
Senior Managing Director and Portfolio Manager,
Prudential Investments.

Todd A. Abraham Todd A. Abraham is Vice President of the Trust.
Birth Date: Mr. Abraham has been a Portfolio Manager since 1995
February 10, 1966 and a Vice President of the Fund's Adviser since
VICE PRESIDENT 1997. Mr. Abraham joined Federated in 1993 as an
Began serving: Investment Analyst and served as Assistant Vice
May 2004 President from 1995 to 1997. Mr. Abraham served as a
Portfolio Analyst at Ryland Mortgage Co. from
1992-1993. Mr. Abraham is a Chartered Financial
Analyst and received his M.B.A. in Finance from
Loyola College.

David P. Gilmore David P. Gilmore has been the Fund's Portfolio
Birth Date: Manager since inception. He is Vice President of the
November 11, 1970 Trust. Mr. Gilmore joined Federated in August 1997
VICE PRESIDENT as an Investment Analyst. He was promoted to Senior
Began serving: Investment Analyst in July 1999 and became a Vice
May 2004 President of the Fund's Adviser in July 2001.
Mr. Gilmore was a Senior Associate with Coopers &
Lybrand from January 1992 to May 1995. Mr. Gilmore
is a Chartered Financial Analyst and attended the
University of Virginia, where he earned his M.B.A.,
from September 1995 to May 1997. Mr. Gilmore has a
B.S. from Liberty University.

Robert M. Kowit Robert M. Kowit is Vice President of the Trust.
Birth Date: Mr. Kowit joined Federated in 1995 as a Senior
June 27, 1945 Portfolio Manager and a Vice President of the Fund's
VICE PRESIDENT Adviser. Mr. Kowit served as a Managing Partner of
Began serving: Copernicus Global Asset Management from January 1995
February 2001 through October 1995. From 1990 to 1994, he served
as Senior Vice President/Portfolio Manager of
International Fixed Income and Foreign Exchange for
John Hancock Advisers. Mr. Kowit received his M.B.A.
from Iona College with a concentration in finance.

- ------------------------------------------------------------------------------

BOARD REVIEW OF ADVISORY CONTRACT

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

QUARTERLY PORTFOLIO SCHEDULE

Cusip 31409R201

30038 (1/06)

Item 2. Code of Ethics

(a) As of the end of the period covered by this report, the registrant has
adopted a code of ethics (the "Section 406 Standards for Investment Companies
- - Ethical Standards for Principal Executive and Financial Officers") that
applies to the registrant's Principal Executive Officer and Principal
Financial Officer; the registrant's Principal Financial Officer also serves
as the Principal Accounting Officer.

(d) Not Applicable

(e) Not Applicable

(f)(3) The registrant hereby undertakes to provide any person, without
charge, upon request, a copy of the code of ethics. To request a copy of the
code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy
of the Section 406 Standards for Investment Companies - Ethical Standards for
Principal Executive and Financial Officers.

Item 3. Audit Committee Financial Expert

The registrant's Board has determined that each member of the Board's Audit
Committee is an "audit committee financial expert," and that each such member
is "independent," for purposes of this Item. The Audit Committee consists of
the following Board members: Thomas G. Bigley, John T. Conroy, Jr., Nicholas
P. Constantakis and Charles F. Mansfield, Jr.

Item 4. Principal Accountant Fees and Services

(a) Audit Fees billed to the registrant for the two most recent
fiscal years:

Fiscal year ended 2005 - $33,766

Fiscal year ended 2004 - $25,968

(b) Audit-Related Fees billed to the registrant for the two most
recent fiscal years:

Fiscal year ended 2005 - $161

Fiscal year ended 2004 - $0

Transfer agent testing.

Amount requiring approval of the registrant's audit committee pursuant
to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $443 and $0
respectively. Sarbanes Oxley sec. 302 procedures.

Fiscal year ended 2005 - $0

Fiscal year ended 2004 - $0

Amount requiring approval of the registrant's audit committee pursuant
to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0
respectively.

(d) All Other Fees billed to the registrant for the two most recent
fiscal years:

Fiscal year ended 2005 - $0

Fiscal year ended 2004 - $0

Amount requiring approval of the registrant's audit committee pursuant
to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0
respectively.

(e)(1) Audit Committee Policies regarding Pre-approval of Services.

The Audit Committee is required to pre-approve audit and
non-audit services performed by the independent auditor in order to assure
that the provision of such services do not impair the auditor's
independence. Unless a type of service to be provided by the independent
auditor has received general pre-approval, it will require specific
pre-approval by the Audit Committee. Any proposed services exceeding
pre-approved cost levels will require specific pre-approval by the Audit
Committee.

Certain services have the general pre-approval of the Audit
Committee. The term of the general pre-approval is 12 months from the date
of pre-approval, unless the Audit Committee specifically provides for a
different period. The Audit Committee will annually review the services that
may be provided by the independent auditor without obtaining specific
pre-approval from the Audit Committee and may grant general pre-approval for
such services. The Audit Committee will revise the list of general
pre-approved services from time to time, based on subsequent determinations.
The Audit Committee will not delegate its responsibilities to pre-approve
services performed by the independent auditor to management.

The Audit Committee has delegated pre-approval authority to its
Chairman. The Chairman will report any pre-approval decisions to the Audit
Committee at its next scheduled meeting. The Committee will designate
another member with such pre-approval authority when the Chairman is
unavailable.

AUDIT SERVICES

The annual Audit services engagement terms and fees will be subject to
the specific pre-approval of the Audit Committee. The Audit Committee must
approve any changes in terms, conditions and fees resulting from changes in
audit scope, registered investment company (RIC) structure or other matters.

In addition to the annual Audit services engagement specifically
approved by the Audit Committee, the Audit Committee may grant general
pre-approval for other Audit Services, which are those services that only the
independent auditor reasonably can provide. The Audit Committee has
pre-approved certain Audit services, all other Audit services must be
specifically pre-approved by the Audit Committee.

AUDIT-RELATED SERVICES

Audit-related services are assurance and related services that are
reasonably related to the performance of the audit or review of the Company's
financial statements or that are traditionally performed by the independent
auditor. The Audit Committee believes that the provision of Audit-related
services does not impair the independence of the auditor, and has
pre-approved certain Audit-related services, all other Audit-related services
must be specifically pre-approved by the Audit Committee.

TAX SERVICES

The Audit Committee believes that the independent auditor can provide
Tax services to the Company such as tax compliance, tax planning and tax
advice without impairing the auditor's independence. However, the Audit
Committee will not permit the retention of the independent auditor in
connection with a transaction initially recommended by the independent
auditor, the purpose of which may be tax avoidance and the tax treatment of
which may not be supported in the Internal Revenue Code and related
regulations. The Audit Committee has pre-approved certain Tax services, all
Tax services involving large and complex transactions must be specifically
pre-approved by the Audit Committee.

ALL OTHER SERVICES

With respect to the provision of services other than audit, review or
attest services the pre-approval requirement is waived if:

(1) The aggregate amount of all such services provided constitutes no more than
five percent of the total amount of revenues paid by the registrant, the
registrant's adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under
common control with the investment adviser that provides ongoing services
to the registrant to its accountant during the fiscal year in which the
services are provided;

(2) Such services were not recognized by the registrant, the registrant's
adviser (not including any sub-adviser whose role is primarily portfolio
management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant at the time of the engagement to be non-audit services; and

(3) Such services are promptly brought to the attention of the Audit Committee
of the issuer and approved prior to the completion of the audit by the
Audit Committee or by one or more members of the Audit Committee who are
members of the board of directors to whom authority to grant such approvals
has been delegated by the Audit Committee.

The Audit Committee may grant general pre-approval to those permissible
non-audit services classified as All Other services that it believes are
routine and recurring services, and would not impair the independence of the
auditor.

The SEC's rules and relevant guidance should be consulted to determine
the precise definitions of prohibited non-audit services and the
applicability of exceptions to certain of the prohibitions.

PRE-APPROVAL FEE LEVELS

Pre-approval fee levels for all services to be provided by the
independent auditor will be established annually by the Audit Committee. Any
proposed services exceeding these levels will require specific pre-approval
by the Audit Committee.

PROCEDURES

Requests or applications to provide services that require specific
approval by the Audit Committee will be submitted to the Audit Committee by
both the independent auditor and the Principal Accounting Officer and/or
Internal Auditor, and must include a joint statement as to whether, in their
view, the request or application is consistent with the SEC's rules on
auditor independence.

(e)(2) Percentage of services identified in items 4(b) through 4(d) that
were approved by the registrants audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X:

4(b)

Fiscal year ended 2005 - 0%

Fiscal year ended 2004 - 0%

Percentage of services provided to the registrants investment
adviser and any entity controlling, controlled by, or under
common control with the investment adviser that provides ongoing
services to the registrant that were approved by the registrants
audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01
of Regulation S-X, 0% and 0% respectively.

4(c)

Fiscal year ended 2005 - 0%

Fiscal year ended 2004 - 0%

4(d)

Fiscal year ended 2005 - 0%

Fiscal year ended 2004 - 0%

(f) NA

(g) Non-Audit Fees billed to the registrant, the registrant's investment
adviser, and certain entities controlling, controlled by or under
common control with the investment adviser:
Fiscal year ended 2005 - $26,284

Fiscal year ended 2004 - $63,576

(h) The registrant's Audit Committee has considered that the
provision of non-audit services that were rendered to the registrant's
adviser (not including any sub-adviser whose role is primarily portfolio
management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal accountant's
independence.

Item 5. Audit Committee of Listed Registrants

Not Applicable

Item 6. Schedule of Investments

Not Applicable

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies

Not Applicable

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not Applicable

Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers

Not Applicable

Item 10. Submission of Matters to a Vote of Security Holders

Not Applicable

Item 11. Controls and Procedures

(a) The registrant's President and Treasurer have concluded that the
registrant's disclosure controls and procedures (as defined in rule 30a-3(c)
under the Act) are effective in design and operation and are sufficient to
form the basis of the certifications required by Rule 30a-(2) under the Act,
based on their evaluation of these disclosure controls and procedures within
90 days of the filing date of this report on Form N-CSR.

(b) There were no changes in the registrant's internal control over financial
reporting (as defined in rule 30a-3(d) under the Act) during the last fiscal
quarter that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.

Item 12. Exhibits

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 Federated Core Trust II, L.P.

By /S/ Richard A. Novak
Richard A. Novak, Principal Financial Officer
(insert name and title)

Date January 24, 2006

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

By /S/ J. Christopher Donahue
J. Christopher Donahue, Principal Executive Officer

Date January 24, 2006

By /S/ Richard A. Novak
Richard A. Novak, Principal Financial Officer

Date January 24, 2006