Jacksonville Beach (Fla.) Retirement System invested $5 million in the Touchstone Emerging Growth fund and $2 million in the American Funds EuroPacific Growth fund, said Heidi Reagan, city clerk and pension administrator. Funding for the Touchstone fund came from reducing an active domestic large-cap value equity portfolio run by Trusco Capital, leaving it with $19 million, Ms. Reagan said. Trustees of the $52 million pension plan made the change for added diversification, she said. Funding for the American Funds fund came from terminating the plan's investment in the Putnam International Growth fund because trustees wanted to be "fiduciarily safe and sound," following market-timing charges against Putnam Investments, she said. Merrill Lynch assisted. Laura McNamara, Putnam spokeswoman, did not respond to a request for comment by press time.