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<PAGE> PAGE 2
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SIGNATURE JULIAN SLUYTERS
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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PAINEWEBBER MANAGED ASSETS TRUST
CERTIFICATE OF VICE PRESIDENT AND SECRETARY
I, Dianne E. O Donnell, Vice President and Secretary of PaineWebber
Managed Assets Trust ( Trust ), hereby certify that the board of trustees
of the Trust adopted the following resolutions which became effective
on November 10, 1995;
RESOLVED, that the unlimited number of shares of beneficial interest
previously known as the Class D shares of PaineWebber Capital
Appreciation Fund be renamed the Class C shares of that Fund; and be
it further
RESOLVED, that the unlimited number of shares of beneficial interest
previously known as the Class C shares of PaineWebber Capital
Appreciation Fund be renamed the Class Y shares of that Fund.
Dated: December 15, 1995 By:/s/ Dianne E. O Donnell
Dianne E. O Donnell
Vice President and Secretary
PaineWebber Managed Assets
Trust
New York, New York (ss)
Subscribed and sworn to before me this 15th day of December, 1995.
/s/ Karyn Freeman
Notary Public
Board of Trustees
PaineWebber Capital Appreciation Fund
In planning and performing our audit of the financial statements of
PaineWebber Capital Appreciation Fund for the year ended March 31, 1996,
we considered its internal control structure, including procedures for
safeguarding securities, in order to determine our auditing procedures
for the purpose of expressing our opinion on the financial statements and
to comply with the requirements of Form N-SAR, not to provide assurance on
the internal control structure.
The management of PaineWebber Capital Appreciation Fund is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess
the expected benefits and related costs of internal control structure policies
and procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce
to a relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. However, we noted no
matters involving the internal control structure, including procedures for
safeguarding securities, that we consider to be material weaknesses as defined
above as of March 31, 1996.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission.
ERNST & YOUNG LLP
May 14, 1996
