• Frédéric Jolly Chief executive for Europe, the Middle East and Africa, Russell Investment Group

After a fantastic 2006, I would cite complacency as the biggest threat. For investors, the need to choose the optimal asset allocation is more important than ever. Any errors in this critical area and they risk missing out on the advantages which today's broad opportunity set can bring. With top talent increasingly concentrated in boutiques, resource needs to be committed to gaining access to the best managers, whose sought-after strategies are often capacity constrained.