The Responsible Investment Association of Australasia (RIAA) has turned in a small loss for the 12 months to June 30 despite an almost 20 per cent spike in revenue.
According to the recently released RIAA annual report, the advocacy and product-labelling body saw income soar by about A$475,000 year-on-year to reach over A$3.2 million with gains across membership, certification and conference-related fees.
RIAA membership surpassed 500 during the financial year, contributing close to A$1.6 million in fees (A$1.45 million in 2022) while product certification income jumped from more than A$307,000 last year to A$475,000 plus in the 2023 period.
Conference and event sponsorship across Australia and NZ also rose circa A$200,000 during the 12 months to June 30 to reach almost A$619,000 while delegate registration fees increased from A$307,000 last year to just under A$412,000 at the latest count.
Only research sponsorship income fell year-on-year to A$115,735 compared to more than A$237,000 in the 2022 report.
Meanwhile, RIAA expenses rose across the board (bar for research where outlays sunk below A$94,000 versus A$284,500 in the previous year), led by employee costs that tipped over A$2 million against the 2022 figure of A$1.75 million.
“A conscious decision was made to invest in RIAA’s growth in FY23, and as such, the year ended in a deficit position of $147,192, with strong cash reserves mitigating the deficit,” the annual report says.
The industry body reported cash on hand of about A$1.4 million as at June 30 and current assets of almost A$2.7 million.
In a banner year for the responsible investment organisation, RIAA “has seen some of the fastest momentum for our sector that I have yet witnessed”, outgoing chief, Simon O’Connor notes in the report.
Estelle Parker and the NZ-based Dean Hegarty have been appointed as co-CEOs for RIAA as O’Connor steps down this month after 11 years at the helm.
RIAA plans to introduce a new sustainability classification process over the next two years while also looking to grow its NZ and financial advisory membership.
“Our Financial Adviser Certification continues to highlight those leading advisers with expertise in this sector,” the report says. “This financial year, the number of financial advisers has grown to 51, driven by strong demand from financial advisory groups embracing responsible investment from the top. We are currently implementing plans to further strengthen this offering to our financial advice members.”