The City of Valdez Permanent Fund came into being from a voter approved charter amendment on July 19, 1977. The oil company owners of the trans-Alaska pipeline used the City's bonding authority and saved millions of dollars in the issuance of tax-exempt bonds to build the pipeline and Valdez Marine Terminal. The City asked for and received a 1% fee, amounting to a windfall of $13,576,000 on the initial bond sales. The principal of the fund "shall not be spent, but shall be held perpetually in trust for the benefit of the present and future generations of Valdez residents."
The Permanent Fund Investment Committee reviews the fund's asset allocation with the City Council once a year. The Investment Committee approved the current asset allocation as follows: