Market uncertainty has hit boutique investment group Greenway Capital hard, with the group forced to stand down its entire retail division.
Greenway Capital managing director Peter Martin told InvestorDaily the company had downsized its retail business, though the move was considered temporary.
The loss of the group's retail business comes as Greenway finalises details for the launch of its equity mortgage model.
"There is certainly a storm in the markets and our aim is to be around when it passes," Martin said.
"Consequently, we have stood down our staff on the retail side of our business to conserve our cash reserves and ensure that we can be a force in the financial services market in the long term."
He said despite the loss of staff the group's retail business had the systems and processes in place to be launched at short notice.
"Over the past 12 months we have made significant progress towards securing funding for the mortgage origination process from very large financial institutions here and overseas, including large Australian super funds," he said.
"However, the collapse of the mortgage-backed securities market and the extreme dislocation of the global credit markets over the past six months has slowed decision- making significantly.
"We are confident that equity release mortgages will become an important asset class in Australia's rapidly growing superannuation and savings market. Greenway fully expects to be at the forefront of that market."
The group's capital markets team is in discussions with large superannuation funds and major banks about Greenway's Equity Mortgage model, which is currently being developed.
"We believe that the consumer market for the Greenway Equity Mortgage is as strong as it was when we started," Martin said.
"The recent interest rate rises will make equity release products like ours, with no link to interest rates, that much more attractive. Work we have done with financial planners and distribution partners has given us confidence that this product will succeed."
