A letter signed by 29 institutional investors calls for hedge funds to outperform cash before charging management fees.
Despite the exit of some major firms, asset managers representing $4.6 trillion say they remain committed to the initiative.
The pensions board approved $3.5 billion in total commitments, and saw its assets grow to $104.2 billion.
JPM chief points out that these loans have not yet faced a real economic downturn, which high-yield did.