Good morning, and thank you for joining us today and welcome to the Ameriprise Financial Annual Meeting of Shareholders. I'm Jim Cracchiolo, Chairman and Chief Executive Officer of Ameriprise. Karen Wilson Thissen, our General Counsel, is joining me today as Tom Moore, our Corporate Secretary and Chief Governance Officer, is under the weather and cannot be with us. Let's begin. Karen?
Thank you, Jim. The Board of Directors has appointed The Carideo Group as Inspector of Elections for this meeting. Mr. John Komers , the representative from The Carideo Group, has subscribed to the oath of office and filed it with me. The Board of Directors has fixed February 28th, 2017, as the record date for determining shareholders entitled to notice of and to vote at this Annual Meeting. Mr. Chairman, I present the following documents. A certified list of the holders of common stock of the company as of the close of business on February 28th, 2017. This list has been prepared by Computershare Trust Company, National Association, the company's stock transfer agent and registrar.
An affidavit of Mr. Philip Barone, an employee of Broadridge Financial Solutions, attesting to the distribution beginning on March 17th, 2017, to our shareholders of record as of February 28th, 2017, of a notice regarding the availability of proxy materials for the Shareholder Meeting to be held on April 26th, 2017, or paper copies of the proxy materials. The notice informed our registered shareholders of the availability online of the Notice of Meeting, the Proxy Statements for this meeting, and the 2016 Annual Report to Shareholders. Shareholders were also informed of how to obtain these proxy materials in paper form or by email at no charge. The notice disclosed the date, time, and location of this meeting, as well as the items to be voted on. Copies of the proxy materials have been posted on the internet and provided in paper form to those shareholders who requested them.
I will file these materials with the minutes of the meeting. Jim?
The Inspector of Elections has recorded the existence of a quorum. We'll proceed with the business of this meeting, which I now call to order. I am pleased to introduce my colleagues on the board of directors who are here with us today. We could not be a great company without their committed and steady stewardship. Fellow directors, please remain standing until I introduce all of you. Dianne Neal Blixt, Amy DiGeso, Lon R. Greenberg, Siri S. Marshall, Jeffrey Noddle, H. Jay Sarles, Robert F. Sharpe, Jr., and Christopher J. Williams, a new member of our board. In recognition of their efforts on behalf of Ameriprise and our shareholders, please help me recognize our board with a round of applause. Thank you. Next, will the members of the executive leadership team of Ameriprise please stand? The board and I rely on your leadership, experience, and commitment.
Please join the board and me in a round of applause for their many contributions. I'll turn things back to Karen for the statement of order of business and the opening of the polls. Karen?
Thank you, Jim. To ensure the orderly conduct of the business of this meeting, the board of directors has adopted the order of business set forth in the agenda provided to each person as he or she entered. Accompanying the agenda are the meeting materials approved by the board of directors. We ask that, in fairness to all shareholders attending this meeting, you please honor those rules. In a moment, I'll explain the four matters on the agenda for consideration during today's meeting. The company has not received notice from any of its shareholders, as required under its bylaws, of any other matter to be considered at today's meeting. Therefore, no other proposal or nomination may be properly introduced by a shareholder at this meeting. On behalf of the Chairman, I now declare the polls open for voting at this annual meeting.
If you wish to vote at the meeting and haven't done so yet, you may deliver your ballot to the Inspector of Elections. Inspector, can you please stand and identify yourself? Thank you. If you need a ballot, the Inspector can give you one. The polls will remain open until immediately after any discussion on today's proposals. To promote the efficient conduct of the meeting, the Chairman has waived the formalities of requesting motions and seconds from the audience and has declared the order of business as stated in the agenda to be accepted by those present in the meeting room. I'll turn to the proposals being submitted to shareholders. Each of the following proposals is described in the company's proxy statement dated March 17th, 2017. The four proposals presented at this meeting by the board of directors are as follows.
The first proposal is the election of the 9 directors. As we explain in our proxy statement, Mr. Williams is standing for election for the first time as he was appointed to the board of directors on September 6th, 2016. All of our other director candidates are standing for re-election for a 1-year term. Mr. Cracchiolo and each of the other 8 directors named in the proxy statement, and whom Mr. Cracchiolo introduced you to earlier in the meeting, are standing for election, each to serve until our 2018 annual meeting. The second proposal is a non-binding advisory vote to approve the compensation of the named executive officers. The named executive officers are those officers identified in the compensation disclosure tables included in the proxy statement for this meeting. This vote, commonly referred to as say on pay, is required by federal law for large public companies.
The third proposal is a non-binding advisory vote on the frequency of the say on pay proposal. Under federal law, we're required to give our shareholders a vote at least every 6 years on whether they prefer to vote to approve the compensation of the named executive officers every year, every 2 years, or every 3 years. At our 2011 annual meeting, shareholders strongly supported an annual say on pay vote upon the recommendation of the board of directors. The board is again recommending an annual vote. The board of directors will consider the results of this vote in deciding upon the frequency of the say on pay vote going forward. Will publicly disclose its decision soon. Absent extraordinary circumstances, our shareholders will again vote on the frequency of say on pay at our 2023 annual meeting.
The 4th and final proposal seeks ratification of the Audit Committee selection of PricewaterhouseCoopers LLP as the company's independent auditors for the fiscal year ending December 31st, 2017. We'll proceed with the voting on each of the proposals I've described. The votes required for each proposal to be approved are described in the chart provided on page four of our 2017 proxy statement. We will close the polls immediately after the discussion on these proposals. If you wish to vote and haven't done so, now is the time to return your proxy card or ballot to the inspector. If you previously returned a proxy card or voted by means of the internet or telephone, you do not wish to change your vote in any way, you don't need to do anything at this meeting.
If you haven't turned in a proxy card. If you're a shareholder of record and you wish to vote your shares in a manner that's different than you otherwise indicated, please raise your hand so that you can be given a ballot. We will provide an opportunity following the chairman's remarks for shareholders to raise questions not related to the proposals being voted on today. As we detail in our proxy statement, the Audit Committee of the Board of Directors approved the engagement of PricewaterhouseCoopers for the 2017 fiscal year, subject to ratification by our shareholders. I would ask Ms. Butler of PricewaterhouseCoopers to please stand and be recognized. Before I declare the polls closed, are there any questions for Ms. Butler? All right. Thank you, Ms. Butler. Hearing none.
If there are any questions regarding the voting procedures, or if any shareholder wishes to comment on or raise any questions regarding the proposals being voted on, please raise your hand. Okay, hearing no questions, there being no further discussion on the proposals, we will now prepare to close the polls. Please return your ballots now if you haven't already done so. On behalf of the chairman, I now declare the polls closed. While we're waiting for the inspector's voting report, I will turn it back to our chairman for his report on the state of our business.
Thanks, Karen. This morning I'll discuss the progress in 2016 in a more challenging operating environment, as well as some of the highlights from the first quarter of 2017 that we announced on Monday. I'll discuss why I feel good about our ability to continue to deliver meaningful long-term shareholder value. 2016 was a challenging year due to the market and geopolitical issues as well as the regulatory uncertainty. As you recall, the year began with significant equity market volatility amid concerns of slower global economic growth. While equity markets accelerated in the second half of the year, especially after the U.S. election, investor unease persisted in large part due to political uncertainty in the U.S. and Europe that remains today. In addition, interest rates were near all-time lows, which pressured our investment income.
They drove higher non-cash accounting charges related to our insurance and annuity businesses, known in the industry as unlocking. As I mentioned, the financial services industry, including Ameriprise, experienced heightened regulatory uncertainty last year. This included the Department of Labor's Fiduciary Rule in the U.S. as well as multiple regulatory changes in the U.K. and Europe. It was a period of change for the industry. Ameriprise has a record of handling changes well. We have a strong business to serve our clients and advisors. We consistently deliver differentiated shareholder value. As always, we're focused on executing our strategy for growth as we continue to invest in the business and return capital to you, our shareholders. Compared to the prior year, 2016 operating net revenues were down slightly given the tougher markets in equities as well as low interest rates.
Before the annual unlocking expense, operating earnings per share were up 3%. Operating return on equity, excluding accumulated other comprehensive income, increased to 24.6%. Even with the impacts of the higher unlocking expenses, our return on equity is one of the strongest in financial services and a clear differentiator. Like other financial services stocks, Ameriprise common stock was affected by the fluid regulatory environment last year. Our total shareholder return in 2016 was 8%. For our investors with a longer-term perspective, our total shareholder return over the past five years was 153% as of year-end. If you owned our stock since we became a public company in 2005, the value of Ameriprise common stock has nearly tripled up to 286%, which is among the best in the industry. Today, I'll provide my perspective on the progress last year and the key themes important to you, our shareholders.
First, Ameriprise is a leader in retail financial services. We have a relevant strategy and a significant opportunity to serve more investors in wealth management and asset management. Second, our clients, advisors, and shareholders benefit from the diversity of our capabilities as well as our strong financial foundation. We have the financial stability and capital to continue to navigate potential headwinds, invest for growth, and return capital to shareholders through dividends and share repurchases at a very attractive level. Third, very importantly, our people are the strength of our firm. We've earned an excellent reputation, and we work diligently every day to earn and reinforce our clients' trust. We continue and care about what we're doing and what's right for our clients, keeping Ameriprise strong. Let me expand on these three themes. First, our consistent strategy works. We advise, manage, and protect assets and income of clients.
At Ameriprise, we serve our clients' financial needs for a lifetime. This long-term approach is fundamental to 120-year-plus history and our heritage as we manage our company. We serve our clients and deepen their existing relationships. Our assets under management administration grew to $787 billion last year. Each of our businesses, advice and wealth management, asset management, annuities, and protection, is strong. It's this combination of businesses that allow us to deliver a compelling client and advisor experience while generating strong shareholder value. Key to our wealth management strategy is growing our retail client base and serving more affluent and mass affluent clients, especially those in the $500,000-$5 million category. There is a significant need for financial advice. The opportunity has never been greater. The number of people who want a personal financial advice relationship with someone they trust continues to grow.
Proudly, Ameriprise has long held the position as the leading financial planning company in the U.S., and we have more Certified Financial Planner professionals than any other firm. We have a legacy of putting clients first. Ameriprise has been recognized as one of the most trusted investment firms in the industry. In fact, last year, we received a number of accolades, including a first-place ranking in the investment industry in Temkin Group Net Promoter Score Benchmark Study. Ameriprise was also recognized as a top performer in the Hearts & Wallets Wants and Pricing Survey for customers' ratings being unbiased and putting clients' interests first. We're delighted to earn this type of industry recognition and work every day to deliver meaningful client experience. With the growing need for advice, we're focused on providing comprehensive advice to more Americans.
Our unique Confident Retirement approach simplifies the challenges preparing for retirement and makes it easier for clients and advisors to take action. Our approach works. In fact, based on research, 94% of our clients who have experienced it says it meets their needs. We've also focused on using this approach to serve younger generations through our Wealth Builder strategy and people in the asset accumulation phase of their lives. Whether it's saving to achieve a particular goal or living in retirement, personal relationships are fundamental to how we work with our clients, when, where, and how they want to be served. For many, this means face-to-face. We also engage clients through our secure website and mobile apps. As more clients and prospective clients look for a personal financial advisor, our relationships through digital engagement continues to grow.
With our leadership in financial planning and the combination of our capabilities, we believe that we are in a sweet spot to serve this large and growing opportunity. Our experienced advisor force is very well-positioned to serve this growing consumer opportunity given our expertise in advice and the full suite of services that we provide. We continue to invest in technology, tools, training to help our advisors grow their practices and to further strengthen awareness of Ameriprise and our value proposition. We're building on our successful Be Brilliant national advertising campaign. It illustrates how working with an Ameriprise advisor can help people realize moments of brilliance and achieve their personal goals. Ameriprise brand awareness is near an all-time high. Our advisor relationships remain strong. We continue to help them grow their practices and productivity.
In fact, last year, we had record client asset levels and more than $10 billion in net inflows into fee-based accounts. In addition to earning high satisfaction with our more tenured advisors, we consistently attract quality experienced advisors to Ameriprise. In fact, last year, more than 300 experienced advisors moved their practices to Ameriprise, bringing our total to more than 1,600 experienced advisors recruited over the last five years. Overall, in a tougher environment in 2016, we delivered good growth and profitability in advice and wealth management. At the same time, we navigated changes associated with the Department of Labor's Fiduciary Rule that absorbed significant management resources as well as advisor attention. The Fiduciary Rule has been an evolving and fluid matter spanning years. From day one, we've stated that any new rule of this significance and complexity needs to be carefully considered.
We're encouraged the Department has taken additional time to examine a rule of this importance. We have long supported acting in our clients' best interest, and as a leader in financial planning, we're focused on helping our clients achieve a secure retirement. Americans deserve a coordinated regulatory framework that works in their best interest across their assets. Importantly, it must preserve choice and access for advice for the millions of retirement savers that will be impacted. Complementing our advice business and Confident Retirement approach, our protection annuity businesses are important contributors to our wealth management. They help protect our clients' wealth and generate retirement income while delivering good shareholder returns over time. We've built attractive books of business with competitive products and unique risk characteristics.
Through investing in our digital capabilities and other tools, we're making it easier for our advisors to offer these important products as part of their clients' comprehensive financial plan. In 2016, we added three managed volatility funds to our variable annuity offering and reinforced the benefits of cash value life insurance. Regarding Auto & Home, although 2016 was a difficult one, particularly financially, we continue to make progress in strengthening the financial performance of the business. We're beginning to see improved results from these actions we're taking to enhance our pricing sophistication, tighten underwriting, and improve risk exposure. We're moving in the right direction. Let's now move to Asset Management. At Columbia Threadneedle Investments, we have a clear focus on serving our individual and institutional clients. At the same time, we're delivering competitive profitability at a time of severe industry headwinds.
We're a global business with more than $450 billion in assets under management. We have proven expertise in credit, concentrated equities, asset allocation, and multi-asset managed funds. Last year, our assets under management declined due to unfavorable foreign exchange translation and net outflows. Our focus has always been and starts with delivering consistent competitive investment results for our clients. Overall, our investment teams in the U.S., London, and Singapore generate strong performance in a volatile year for the industry. We ended the year with 112 four and five-star Morningstar rated funds, and we were recognized with more than 40 investment awards. In addition, our long-term equity and fixed income performance across three, five, and 10-year time frames remains strong.
With the intense market volatility and historic votes in key markets around the world, including the U.S. election and the U.K. vote to leave the EU, our investment perspective was in high demand. Regarding flows, we did experience net outflows that reflect the previous acquisitions and pressure from passive like other active players. We have a large installed base of assets we manage with former parent companies and related firms, and we value these relationships. In terms of the open retail book, we have a broad product portfolio and continue to invest in our capabilities and the Columbia Threadneedle brand. In the U.S., we're experiencing a level of outflows in traditional active strategies that reflect industry-wide trends. That said, we're gaining traction from our actions and growing market share in key intermediary platforms at a time when overall gross sales in the industry are down.
U.K. and European retail flows remain fluid, and asset flows will not fully recover to pre-Brexit levels. We remain focused on our U.K. and European clients and are confident about ability to manage this transition. I feel good about our position given our established presence and the fund range that we offer and our ability to adjust as necessary. Within third-party institutional, we had good interest in credit and other strategies. However, given the large size of mandates, some flows are often uneven. This was the case last year as fundings took longer to materialize. We're also seeing interest in our multi-asset solutions reflecting our strength in credit, active equities, and asset allocation. Another growth priority is adding to our product lines where we see opportunity, including in the strategic beta space in the U.S.
In 2016, we acquired Emerging Global Advisors, a leading provider of strategic beta-focused portfolios in emerging markets. We've also strengthened our operations infrastructure, moving to a more efficient global platform for our front, middle, and back office, and we want Columbia Threadneedle to be further recognized in the marketplace where we do business and recently launched a new global advertising campaign. Overall, in Asset Management, we continue to manage change well. We're benefiting from our experience, discipline, and generating competitive profitability while investing in long-term growth initiatives. Two important differentiators for Ameriprise are our diversified business and excellent financial foundation. They enable us to keep the company strong, generate significant free cash flow, and deliver good shareholder returns. Our diversity and financial strength allows us to navigate challenging conditions and invest in the business. It also provides the flexibility to seize opportunities to accelerate growth.
Each year, we work to enhance our client advisor experience, strengthen our products and technology, and build on our competitive positioning. In fact, last year, we invested $225 million in the business, which is consistent with prior years, and our ongoing re-engineering program saved $220 million from efficiencies and expense management so that we can make these investments. At the same time last year, we returned $2.2 billion to shareholders. This included repurchasing our shares and increasing our quarterly dividend 12%, which represented the 11th increase in the past 11 years. In fact, 2016 represented the sixth consecutive year that we returned 100% of our operating earnings to shareholders. In addition, on Monday, we announced two additional actions that reflect the strength of our financial foundation and consistent capital management approach.
We increased our regular quarterly dividend another 11%, and we announced another $2.5 billion share repurchase program as we are nearing the end of the current authorization. As I mentioned, last year, we delivered a differentiated return on equity above 24% before unlocking, one of the highest in the industry. We've accomplished that while maintaining a strong excess capital of approximately $2 billion with ample liquidity and a high-quality investment portfolio. As you know, our fee-based businesses are equity sensitive, and our spread business are affected by interest rates. Like others in financial services, we've been carrying the weight of low rates for years. The recent uptick is helpful, but we expect to remain in a low interest rate environment for the foreseeable future. That said, our market exposure is balanced, and our fee-based businesses are leading our growth.
In fact, the contribution of these less capital-demanding businesses to our 2016 pre-tax operating earnings reached 66% before unlocking. We believe that we can take that number above 70% as we grow. For perspective, over the past six years, we've grown this percentage from 45%, which illustrates the transformation. Overall, it comes down to this. Ameriprise is a reflection of our people. We're a team guided by our values and focused on delivering for all of our constituents. We foster a client-centric culture and earn excellent employee and advisor satisfaction. Our engagement results are among the best in the industry. Client focus, integrity, and respect are core to how we operate and proudly some of our highest-rated attributes of our employee engagement.
In 2016, we were recognized as the best place to work in Minneapolis for the seventh time and received 100% rating on the Corporate Equality Index for the 11th consecutive year. One of our core Ameriprise values is respect for the individuals and communities in which we live and work. In 2016, Ameriprise and our people provided more than 8 million meals in the U.S., 81,000 volunteer hours, and donated $13 million to causes that are important to us. That includes our support for Feeding America. Before I close, I'd like to comment on our good start to 2017. The equity markets have remained stable, and clients are putting money to work. Activity has picked up. We also saw short-term interest rates move up given the improvement in the environment.
For the first quarter 2017, we delivered new highs for assets under management and administration, as well as for Ameriprise retail client assets. Advisor productivity remains strong, and we're seeing near record flows into fee-based wrap business. We've also had a strong start in terms of investment performance, and we're focused on key actions that will strengthen our asset management business further to position us well for the long term. Finally, we continue to manage the firm consistent with prudent management principles that define Ameriprise. We've established an excellent record for making thoughtful decisions that balance the interest of our clients, advisors, employees, and shareholders. We continue that same approach. In closing, Ameriprise is a strong firm with a client-centric culture focused on doing what's right. We'll continue to serve our clients' needs and look to serve many more consumers, small businesses, and institutions to satisfy their long-term goals.
Our opportunity for growth is significant. There is an immense need for advised products and services as wealth continues to develop around the world. We continue to invest in growth in the right capabilities and in our people. Finally, I feel good about our people, our position, and our ability to continue to build for the future. Karen?
Mr. Chairman, the Inspector of Elections has handed me a preliminary report showing that the management proposals presented at today's meeting, including the election of each of the nine director candidates standing for election to serve until the 2018 annual meeting of shareholders, have each received the required number of votes to pass. With respect to the proposal number three, the say-on-pay frequency proposal, a majority of the votes were cast in favor of continuing to hold a say-on-pay vote at each year's annual meeting. The chairman will now welcome any questions or comments from our shareholders. We ask that you please observe the meeting procedures in the agenda, including the time limits for questions. Please raise your hand, and we'll bring a microphone to you. Please state your name, your city of residence, and indicate whether you're a shareholder or a proxy for a shareholder.
You may ask a question or you may offer a comment only if you're a shareholder or a proxy for a shareholder. If you have a question or a concern that is not relevant to the interest of all shareholders, please feel free to see one of the attendants at the table in the back of the room. He or she will be happy to help you or answer any questions. With that, I'll turn it over to our chairman who will open up the meeting for shareholder questions and comments. Jim?
Thanks, Karen. Are there any questions or comments? Yes. Bring a mic to you.
Thank you, Mr. Chairman. My name is Mike Telford, and I'm from near Des Moines, Iowa. I'm here on behalf of the nation's pig farmers and the National Pork Producers Council, which is a shareholder. I thought I'd give you the opportunity to maybe comment on some of the social filters that are going around the industry, at this time. Just a brief comment. We want to thank the staff, the management, and the board of directors of Ameriprise for your continued efforts in supporting our family pork producers through your strong banking and financing efforts, which you do so very well. We want all the shareholders to know the nation's family pig farmers have made many improvements in animal care, responsible use of animal health products, and in particular, antibiotics and other production practices. Like Ameriprise, producers are committed to continuous improvement.
We hope Ameriprise will always remain diligent in consideration of requirements on production practices and their impact on the supply chain and family producers. We certainly want to work with you and appreciate your efforts. There's much information about our industry at porkcares.org. Ameriprise and our family producers are clearly committed to building stronger communities, improving our local, state, and national economy, I hope everyone will join me in thanking the staff and the management of Ameriprise for your continued efforts and achievements. We appreciate it. Thank you.
Colin, could I have you address how we're applying various filters?
Thanks, Mike. I appreciate it. I also want to recognize your long service and expertise in that area. As the Chairman noted, we invest on behalf of our clients, and I would note to you that there is an increasing interest in this area. I want to recognize the, for example, the We Care program and encourage you to continue to develop programs like that that emphasize the care of the animal, the environment, et cetera. That is notable, but I will tell you that the interest is growing, and therefore, I would also encourage you to continue to develop programs like that. We do appreciate it. Thank you.
Any other questions or comments? Yes.
I'm Steve Peterson. I live in Minneapolis. I'm a shareholder and former employee. I commend you on your stewardship. Keep up the good work.
Thank you. Any other questions or comments? There being no further questions and no further business to consider, I hereby declare the meeting adjourned. On behalf of Ameriprise Financial's board of directors and its officers and employees, thank you again for attending the annual meeting and for your support of our company. We look forward to seeing you again next year. Thank you. Have a wonderful day.