Lyxor Asset Management, an exchange-traded fund provider, has announced the merging of its ETF and indexing businesses, as investors look for greater flexibility and demand indices that are built to suit their needs.

The merging of the two businesses began last week, and Lyxor is the first provider in the ETF market to take such a step. The company said that the move was a response to client demand. Bringing the two areas of business together would, it said, allow each branch to gain benefits from the expertise of specialist asset managers.