(Corrects second bullet point and sixth paragraph to refer to equities instead of Asian debt)
* Keep cash to a minimum - JP Morgan Private Banking Spain
* Emerging countries' equities, U.S. large caps are favourites
* Some investors returning to prime property
By Judy MacInnes
MADRID, Oct 20 (Reuters) - JPMorgan is recommending its wealthy clients in Spain hold little in cash and stay invested in global equity, bond and commodities markets to take advantage of growth opportunities.
Selected Spanish private equity deals and prime properties are also on the buy list of these ultra-high net worth individuals, who have on average no less than $10 million in liquidity.
"Our clients' main aim is to preserve their wealth, but they also want advice on how to grow their portfolios," said Juan Manuel Soto, general director of JPMorgan Private Banking in Spain.
"Too big a cash position might mean missing out on an opportunity to do just that," Soto told Reuters in an interview.
JPMorgan Private Banking, one of the top wealth managers in Spain after leading banks Santander and BBVA, advises looking for growth opportunities round the world, rather than plumping for familiar stocks and bonds at home.
Top bets include Asian equities and U.S. high yield corporate bonds.
"The level of bankruptcies in U.S. high yields is now contained," Soto said, adding that some U.S. large cap stocks are also an alternative for clients.
The investment bank has its super-rich clients in Spain hold 3 percent of their disposable wealth in cash, 13 percent in bonds and 34 percent in equities.
In Europe, a decision to invest since the end of 2009 in the MDAX, an index of German medium-sized companies, including many exporters, has paid off, Soto said.
The remaining 50 percent of the wealthy clients portfolio is a mix of commodities, such as oil and copper, private equity investments and prime property in the U.S. and, over the last year, in the City of London.
RETURN TO PROPERTY
About 90 percent of JPMorgan's clients either run family businesses or have founded them and sold out.
The Spanish wealth market has expanded strongly in the last few years and entrepreneurs account for about 75 percent of the market now compared to 25 percent in the early 1990s when the country last faced a serious economic downturn.
A decade-long property and construction boom was the main wealth driver but many investors over leveraged and took a severe hit when the bubble burst in 2007.
While the Spanish stock market is not an attractive alternative for wealthy investors, some are revisiting the property sector, although only prime locations, Soto said.
Private equity deals in Spain are also attracting these clients, who operate either alone or in conjunction with sector specialists, he said.
"There are two sorts of private equity opportunities. Those companies which are more distressed and can be easily picked up and then those with good prospects but huge liquidity problems because of the current credit restrictions. But the latter often hold out for a higher price," he said. (Reporting by Judy MacInnes; Editing by Karen Foster)