The accompanying Figure 1 shows the breakdown of the investment portfolio as of September 30, 2017.

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1 2017

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3 Dear Shareholder: The Puerto Rico Investors Bond Fund I (the Fund ), is pleased to present its Annual Report to Shareholders for the fiscal year ended on September 30, PUERTO RICO INVESTORS BOND FUND I The investment objective of the Puerto Rico Investors Bond Fund I is to achieve a high level of tax-advantaged current income that, for Puerto Rico investors, is exempt from Federal and Puerto Rico income taxes, consistent with the preservation of capital for its shareholders. FUND PERFORMANCE For the twelve-month period ended on September 30, 2017, the Fund generated a total rate of return on investment of -2.35% and % based on the net asset value per share ( NAV ) and market value per share, respectively. The Fund s NAV as of September 30, 2017 was $3.42, compared to $3.91 at the end of the prior fiscal year. Meanwhile, the average dividend yield for the period, computed over the original investment of $10 per share, was 3.00%. At the end of the fiscal year, the market price of the shares was $2.18, representing a 36.3% discount to NAV. The Fund s investment portfolio had weighted-average duration of 9.46 years as of September 30, The accompanying Figure 1 shows the breakdown of the investment portfolio as of September 30, Figure 1. Asset Allocation as of September 30,2017 PR COLL. MORTGAGE OBLIG. TAX. PUERTO RICO FREDDIE MAC TAXABLE PUERTO RICO AGENCIES PUERTO RICO TAX EXEMPT NOTES AFICA BONDS PUERTO RICO GNMA TAXABLE PUERTO RICO FANNIE MAE TAXABLE 0.4% 0.5% 0.6% 0.8% 0.9% 2.3% 3.3% PUERTO RICO GNMA EXEMPT US MUNICIPAL OBLIGATIONS 7.5% 8.8% PR GOV. INSTR. TAX EXEMPT NOTES 18.5% US GOV. SPONSORED ENTITIES 56.5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% Figure 1. Asset Allocation as of September 30, 2017

4 INVESTMENT STRATEGY The Fund's investment advisers strive to select investment assets that maximize risk/return relationships, while adhering to the Fund's investment objectives. ECONOMIC OVERVIEW Puerto Rico Economy and Markets The Puerto Rico Fiscal Agency and Financial Advisory Authority s Economic Activity Index (EAI) is an indicator of the general economic activity in Puerto Rico that is highly correlated with real GNP. For July 2017, the EAI figure was 121.0, a 2.1% reduction compared to July Throughout the Fund s fiscal year, Puerto Rico bonds experienced high price volatility while continuing to trade at distressed levels. As measured by the Standard and Poor s Puerto Rico Municipal Bond Index, Puerto Rico bonds as a group declined 12.85% for the 12-month reporting period. In March 2017, the PROMESA oversight board certified a ten-year fiscal plan for Puerto Rico. Market reaction to the plan has been negative, as the plan contains severe assumptions which include negative real GNP growth for 7 years, as well as debt service cuts in the 75% range. In May 2017, the oversight board initiated a bankruptcy-like process, under Title III of PROMESA, for the General Obligation debt, COFINA, Highway and Transportation Authority, and the Employee Retirement System, and, subsequently on July 2017, for the Puerto Rico Electric Power Authority. Officials have indicated that more public corporations could follow. Most recently, Hurricane María struck Puerto Rico on September 20, It was the most destructive storm to hit Puerto Rico in almost 90 years, resulting in insured losses estimated to be in excess of $68 billion. It knocked out all electric power, destroyed more than 100,000 homes, and ruptured bridges and other public infrastructure. Puerto Rico faces almost total economic and revenue disruption in the near term and diminished output and revenue probably through the end of the fiscal year and perhaps fiscal year , negatively impacting the Puerto Rico government's ability to repay its debt. While it remains too early to determine the long-term economic effects post-hurricane María, the long-term repercussions may be mixed. On one hand, there is the possibility of a massive exodus of residents relocating to the U.S. mainland, further eroding Puerto Rico's economic base. On the other hand, significant amounts of U.S. federal aid and private insurance proceeds will be available to aid in rebuilding, thereby spurring economic growth and infrastructure replacement. On October 24, 2017, the U.S. Government approved $4.9 billion in funding to give Puerto Rico access to loans to subsidize the provision of essential services. Subsequently, on November 13, 2017, Governor Ricardo Rosselló assessed at $94.4 billion the losses sustained from Hurricane María and requested that the U.S.

5 Congress provide financial assistance in rebuilding Puerto Rico s infrastructure, housing, schools, and hospitals. As of September 30, 2017, approximately 20.0% of the Fund s investment portfolio consists of Puerto Rico government or government-related securities including, among others, COFINA and POB bonds. As of September 30, 2017, Puerto Rico has defaulted on many of its debt obligations. This will have a significant impact on the Fund s dividend yield going forward, as the Fund owns several bonds currently in default. At the end of the fiscal year, 17.4% of the total assets of the Fund were invested in Puerto Rico bonds that have stopped generating income. United States Economy and Markets Over the twelve-month reporting period, U.S. economic data continued to indicate modest growth in the 2.0% range. Job growth remained solid, with employers averaging 156,000 new jobs per month from October 2016 through September In addition, the national unemployment rate fell to 4.2% in September 2017, compared to 4.9% the prior year. The unemployment rate remains near its lowest level since Low commodity prices throughout the reporting period kept inflation in check, below the 2% level which represents the Fed s long-run target. As measured by the U.S. Personal Consumption Expenditure Core Price Index, consumer prices rose 1.3% in the 12 months ended in September During the Fund s fiscal year, the U.S. Federal Reserve continued its gradual tightening of monetary policy, slowly moving away from near-zero short-term interest rates. For the period, the Federal Reserve raised interest rates three times (December 2016, March and June 2017). In each case, the Federal Reserve approved a 0.25% increase in its target funds rate. Therefore, the target range has gone from 0.25%-0.50% at the beginning of the Fund s fiscal year to 1.00%-1.25% as of the end of September As reiterated by the Fed in its September 2017 FOMC statement, the process of normalizing interest rates will continue, but the timing and size of future adjustments will be data-dependent, with the expectation that subsequent increases will continue to be gradual. The Fed also announced it intends to begin implementing in October 2017 its balance sheet normalization program. Through this program, the Fed will gradually reduce its securities holdings by decreasing the reinvestment of principal payments from its holdings of agency debt, agency mortgage-backed securities and Treasuries. For the 12-month reporting period, U.S. Treasury yields finished higher across all maturities. Two-year U.S. Treasury yields, for example, rose from 0.76% at the beginning of the period to 1.48% at the end of the period. At the same time, the 10-year U.S. Treasury note went up 74 basis points in yield, from 1.59% to 2.33%. On the long end of the curve, 30-year U.S. Treasuries yielded 2.86% at the end of the Fund s fiscal year, compared to 2.31% at the beginning.

6 Most of the increase in U.S. Treasury yields occurred early in the reporting period. In November 2016, the election of President Donald J. Trump, as well as the anticipation of an interest rate hike by the Federal Reserve in December 2016, drove yields sharply higher. A brighter outlook, along with prospects of increased spending in infrastructure, greater deregulation, and possible changes in the U.S. tax code under the new Trump administration, helped fuel a rally into riskier assets that has carried into U.S. equity markets were strong and delivered outstanding returns in the reporting period. For the 12-month period ended on September 30, 2017, the Dow Jones Industrial, the S&P 500, and the NASDAQ posted returns of 25.45%, 18.61%, and 23.79%, respectively. On May 1, 2017, the U.S. House of Representatives approved the U.S. Territories Investor Protection Act of 2017, which contemplates the amendment of the U.S. Investment Company Act of 1940, as amended, to repeal the exemption from its coverage of investment companies created under the laws of Puerto Rico, the U.S. Virgin Islands, or any other U.S. possession. On May 3, 2017, this legislation was referred to the Committee on Banking, Housing, and Urban Affairs of the U.S. Senate. On September 11, 2017, the U.S. Senate approved this legislation by unanimous consent. There is no assurance as to whether this proposed legislation will be signed into law, whether it will be modified prior thereto, or its impact on the Fund. OUTLOOK The U.S. economic outlook indicates continued modest growth. For Puerto Rico, the fiscal situation and the Island s credit ratings remain as big concerns. The combined scenario foreshadows a challenging investment environment for the management of the Fund. Notwithstanding, Banco Popular and UBS Puerto Rico remain committed to providing professional asset management services to the Fund in order to seek profitable opportunities for the benefit of its shareholders. Enrique Vila del Corral, CPA Chairman of the Board and President

7 THE BENEFITS AND RISKS OF LEVERAGING The Puerto Rico Investors Bond Fund I is permitted to use leverage in an amount not to exceed 50% of the Fund's total assets. In addition, the Fund may also borrow for temporary or emergency purposes in an amount of up to an additional 5% of its total assets. The Fund obtains leverage by borrowing, using its investment portfolio as well as securities otherwise obtained as collateral. Leverage can produce additional income when the income derived from investments financed with borrowed funds exceeds the cost of such funds. In such an event, the Fund s net income will be greater than it would be without leverage. If, on the other hand, the income derived from securities purchased with borrowed funds is not sufficient to cover the cost of such funds, the Fund s net income will be less than it would be without leverage. Leverage often increases the risk for shareholders of Common Stock. In addition leverage may have a negative impact on net asset value. Leverage could also increase market price volatility, interest rate and market risk. On the other hand, adding leverage to the Fund could result in higher net income. SHARE REPURCHASE PROGRAM On January 31, 2014, the Board of Directors approved the implementation of a Share Repurchase Program for the acquisition of the Fund's shares of Common Stock (the "Shares"), in open-market transactions at share prices equal to or at a discount of the corresponding NAV per Share, of up to 25% of each Fund's total assets as of such date. The Fund's Share Repurchase Program is implemented on a discretionary basis, under the direction of the co-investment Advisers. The Fund's repurchase activity for each fiscal year is disclosed in the Annual Report to Shareholders attached hereto (see Note 4), as well as the quarterly reports to shareholders. The undertaking of a repurchase program does not obligate the Fund to purchase specific amounts of Shares. During the fiscal year, the Shares continued to experience a period of limited liquidity and/or trading at a discount to their net asset value. Although the holders of the Shares do not have the right to redeem their Shares inasmuch as the Fund is closedended, the Fund may, at its sole discretion, effect repurchases of Shares in the open market, in an attempt to increase the liquidity of the Shares as well as reduce any market discount from their corresponding net asset value. There is no assurance that, if such action is undertaken, it will result in the improvement of the Shares' liquidity or reducing any such market discount. Moreover, while such undertaking may have a favorable effect on the market price of the Shares, the repurchase of the Shares by the Fund will decrease the Fund's total assets and therefore, have the effect of increasing the Fund's expense ratio. Repurchases by the Fund must be conducted in accordance with the terms and conditions contained in Article 10 of Regulation No issued by the Puerto Rico Office of the Commissioner of Financial Institutions (the "PROCFI") and procedures adopted by the

8 Fund's Board of Directors to address potential conflicts of interest with affiliated brokerdealers Popular Securities and UBS Financial Services Incorporated of Puerto Rico. Among other things, such regulation and procedures require that to the extent that various sellers indicate interest in selling shares of the Fund, it will purchase such shares starting with the lowest offered price and in the following order of priority for each price: (1) individual and corporate investors, irrespective of the broker-dealer that serves as record owner of the shares to be repurchased; (2) the trading desks of Puerto Rico broker-dealers which are unaffiliated with the Fund; and (3) the trading desks of Popular Securities and UBS Financial Services Incorporated of Puerto Rico. If sellers offer more shares for repurchase than the Fund is able to accept at any particular price for a particular level of priority, repurchase offers will be accepted on a pro-rata basis within that particular level of priority. Additionally, to the extent that Popular Securities or UBS Financial Services Incorporated of Puerto Rico elects to offer the Fund's shares of Common Stock for repurchase from its respective securities inventory, it must do so at its corresponding offer price per share reported to the public. For the fiscal year ended on September 30, 2017, the Fund did not repurchase any shares. Since the program s inception, the Fund has repurchased 12,258,866 shares of its common stock in the open market with a net asset value of $53,626,317, at a cost of $47,492,475. These share repurchases represent 22.13% of the total assets of the Fund as of January 31, 2014 (net of shares acquired for dividend reinvestment purchases and which remain outstanding).

9 GLOSSARY OF MUTUAL FUND TERMS Bond - Security issued by a government or corporation to those from whom it has borrowed money. A bond usually promises to pay interest income to the bondholder at regular intervals and to repay the entire amount borrowed at maturity date. Realized Gain (Loss) - The profit (loss) from the sale of securities. Realized gains are paid to fund shareholders on a per share basis. When a gain distribution is made, the fund's net asset value drops by the amount of the distribution because the distribution is no longer considered part of the fund's assets. Dividend - A per share distribution of the income earned from the fund's portfolio holdings. When a dividend distribution is made, the fund's net asset value drops by the amount of the distribution because the distribution is no longer considered part of the fund's assets. Interest Rate Swap - An agreement to exchange one interest rate stream for another. No principal changes hands. Investment Adviser - An investment professional who is responsible for managing a portfolio's assets prudently and making appropriate investment decisions, such as which securities to buy, hold and sell, based on the investment objectives of the portfolio. Leverage - Vehicle used by the Fund to increase the amounts available for investment through the issuance of commercial paper or repurchase agreements transactions. Long-Term - An investment with a maturity greater than one year. Mutual Fund - A company which combines the investment money of many people whose financial goals are similar, and invests that money in a variety of securities. A mutual fund allows the smaller investor the benefits of diversification, professional management and constant supervision usually available only to large investors. Net Asset Value (NAV) Per Share - The NAV per share is determined by subtracting a fund's total liabilities from its total assets, and dividing that amount by the number of fund shares outstanding. Offering Price - The offering price of a share of a mutual fund is the price at which the share is sold to the public. Repurchase Agreements - Transactions in which the Fund sells securities to a bank or dealer, and agrees to repurchase them at a mutually agreed date and price. Short-Term - An investment with a maturity of one year or less. Total Investment Return - The change in value of a fund investment over a specified period of time, taking into account the change in a fund's market price and the reinvestment of all fund distributions. Turnover Ratio - The turnover ratio represents the fund's level of trading activity. A fund divides the lesser of purchases or sales (expressed in dollars and excluding all securities with maturities of less than one year) by the fund's average monthly assets. Yield - The annualized rate of income as measured against the current net asset value of fund shares.

10 Puerto Rico Investors Bond Fund I September 30, 2017 Financial Highlights The following table includes selected data for a share outstanding throughout each period and other performance information. For the year ended September 30, 2017 For the year ended September 30, 2016 For the year ended September 30, 2015 For the year ended September 30, 2014 For the year ended September 30, 2013 Increase (Decrease) in Net Asset Value: Per Unit Net asset value, beginning of period $3.91 $3.48 $4.60 $4.36 $7.87 Operating (a) Net investment income Performance: (a) Net realized (loss) gain and change in unrealized (depreciation) appreciation on investments and derivatives (0.47) 0.45 (1.24) 0.06 (3.56) Total from investment operations (0.19) 0.79 (0.78) 0.57 (2.90) Less: dividends from net investment income applicable to common unitholders (0.30) (0.36) (0.46) (0.50) (0.61) Discount on repurchase of common units Net asset value, end of year $3.42 $3.91 $3.48 $4.60 $4.36 (h) Market value, end of year $2.18 $2.81 $2.75 $4.12 $4.32 Total Investment Return: (g) (b) Based on market value per unit (13.39%) 17.35% (23.31%) 7.51% (47.87%) Based on net asset value per unit (2.35%) 29.03% (13.08%) 18.92% (39.49%) Ratios: (c) (d) (f) Expenses to average net assets applicable to common unitholders - net of waived fees 2.47% 1.94% 1.62% 1.56% 1.78% (e) (f) Operating expenses to average net assets applicable to common unitholders - net of waived fees 1.51% 1.36% 1.21% 1.05% 1.35% Interest and leverage related expenses to average net assets applicable to common unitholders 0.95% 0.58% 0.41% 0.51% 0.43% (f) Net investment income to average net assets applicable to common unitholders - net of waived fees 8.08% 9.47% 11.01% 11.52% 9.15% Supplemental Net assets applicable to common units, end of period (in thousands) $50,638 $57,934 $51,578 $82,451 $117,692 Data: Portfolio turnover 0.00% 16.58% 0.00% 1.25% 13.98% Portfolio turnover excluding the proceeds from calls and maturities of portfolio securities and the proceeds from mortgage-backed securities paydowns 0.00% 1.86% 0.00% 1.25% 13.98% (a) Based on weekly average outstanding common units of 14,808,222, 14,803,646, 16,612,415, 24,321,432, and 26,540,635 for the years ended September 30, 2017, 2016, 2015, 2014, and 2013, respectively. (b) The return is calculated based on market values provided by UBS Financial Services Incorporated of Puerto Rico, a dealer of the Fund's units and an affiliated party. (c) Based on average net assets applicable to common unitholders of $52,147,971, $53,504,143, $69,615,839, $106,628,709, and $191,203,176 for the years ended September 30, 2017, 2016, 2015, 2014, and 2013, respectively. (d) "Expenses" include both operating and interest and leverage related expenses. (e) "Operating expenses" represents total expenses excluding interest and leverage related expenses. (f) The effect of the expenses waived for the years ended September 30, 2017, 2016, 2015, 2014, and 2013 was to decrease the expense ratios, thus increasing the net investment income ratios to average net assets applicable to common unitholders by 0.58%, 0.55%, 0.59%, 0.53%, and 0.20%, respectively. (g) Dividends are assumed to be reinvested at the per share net asset value as defined in the dividend reinvestment plan. (h) End of period market values are provided by UBS Financial Services Incorporated of Puerto Rico, a dealer of the Fund's units and an affiliated party. The market values shown may reflect limited trading in the units of the Fund in an over-the-counter market. The accompanying notes are an integral part of these financial statements.

11 Puerto Rico Investors Bond Fund I September 30, 2017 SCHEDULE OF INVESTMENTS Face Amount Issuer Coupon AFICA Bonds % of net assets applicable to common units, total cost of $2,790,000 Maturity Date Fair Value $2,790,000 ^ Palmas del Mar Country Club Project 7.25% 12/20/30 $871,875 Puerto Rico Agencies % of net assets applicable to common units, total cost of $1,156,700 (7) ++ Puerto Rico Highway and Transportation Authority - Revenue Bonds Series K 5.00% 07/01/30 144,444 Puerto Rico Aqueduct and Sewer Authority Series A 6.10% 07/01/34 324,929 (7) Puerto Rico Industrial Development Company 0.00% 07/01/18 49,300 1,230, ,673 Principal Outstanding Amount 17,625,140 Puerto Rico GNMA Taxable % of net assets applicable to common units, total cost of $1,978,651 91,950 (2) # GNMA P/I (Pool ) 7.50% 10/15/28 96,982 49,866 (2) GNMA P/I (Pool ) 7.00% 12/15/28 50,889 33,369 (2) GNMA P/I (Pool ) 7.00% 12/15/28 36, ,263 (2) # GNMA P/I (Pool ) 7.00% 01/15/29 171,472 49,085 (2) # GNMA P/I (Pool ) 7.00% 01/15/29 50, ,019 (2) # GNMA P/I (Pool ) 7.00% 01/15/29 139,938 69,001 (2) GNMA P/I (Pool ) 7.00% 02/15/29 71,333 69,868 (2) GNMA P/I (Pool ) 7.00% 02/15/29 72,258 25,790 (2) GNMA P/I (Pool ) 7.00% 02/15/29 25,864 29,481 (2) GNMA P/I (Pool ) 7.00% 02/15/29 29,565 91,117 (2) # GNMA P/I (Pool ) 7.00% 02/15/29 95,441 35,037 (2) GNMA P/I (Pool ) 7.00% 02/15/29 35,240 33,621 (2) GNMA P/I (Pool ) 7.00% 02/15/29 33,910 57,399 (2) GNMA P/I (Pool ) 7.50% 02/15/29 58,877 81,394 (2) GNMA P/I (Pool ) 7.00% 03/15/29 84,669 67,706 (2) GNMA P/I (Pool ) 7.00% 03/15/29 69,864 57,728 (2) GNMA P/I (Pool ) 7.00% 03/15/29 59, ,532 (2) # GNMA P/I (Pool ) 7.00% 03/15/29 192,143 41,598 (2) GNMA P/I (Pool ) 7.00% 03/15/29 42,166 99,072 (2) # GNMA P/I (Pool ) 7.00% 03/15/29 104,434 42,650 (2) GNMA P/I (Pool ) 7.00% 04/15/29 43,268 29,789 (2) # GNMA P/I (Pool ) 7.00% 04/15/29 29,875 77,743 (2) # GNMA P/I (Pool ) 7.00% 04/15/29 80,000 5,042 (2) GNMA P/I (Pool ) 7.00% 05/15/29 5,055 57,381 (2) # GNMA P/I (Pool ) 7.00% 05/15/29 58,529 56,580 (2) GNMA P/I (Pool ) 7.00% 05/15/29 57, ,163 (2) GNMA P/I (Pool ) 7.00% 05/15/29 147, ,885 (2) # GNMA P/I (Pool ) 7.00% 05/15/29 125,582 15,168 (2) GNMA P/I (Pool ) 8.00% 08/15/30 15,611 1,978,297 2,084,232 Puerto Rico GNMA Exempt % of net assets applicable to common units, total cost of $6,237, ,698 (2) GNMA SERIAL (Pool U ) 7.50% 12/15/24 116, ,985 (2) GNMA SERIAL (Pool U ) 7.50% 12/15/24 156, ,944 (2) GNMA SERIAL (Pool U ) 7.50% 01/15/25 130,697 37,097 (2) GNMA SERIAL (Pool U ) 7.50% 05/15/25 40,423 89,244 (2) GNMA SERIAL (Pool U ) 7.50% 07/15/25 97, ,614 (2) GNMA SERIAL (Pool U ) 7.50% 08/15/25 157,578 65,676 (2) GNMA SERIAL (Pool U ) 7.50% 09/15/25 71, ,811 (2) GNMA SERIAL (Pool U ) 7.50% 09/15/25 174, ,437 (2) GNMA SERIAL (Pool U ) 7.50% 11/15/25 111,620 57,161 (2) GNMA SERIAL (Pool U ) 7.50% 11/15/25 62,285 71,138 (2) GNMA SERIAL (Pool U ) 7.50% 11/15/25 77,516 72,469 (2) GNMA SERIAL (Pool U ) 7.50% 11/15/25 78,966 47,141 (2) GNMA SERIAL (Pool U ) 7.50% 12/15/25 51, ,185 (2) GNMA SERIAL (Pool U ) 7.00% 06/15/26 141, ,099 (2) GNMA SERIAL (Pool U ) 7.00% 08/15/26 199, ,414 (2) GNMA SERIAL (Pool U ) 7.00% 10/15/26 237, ,579 (2) GNMA SERIAL (Pool U ) 7.50% 01/15/27 118, ,653 (2) GNMA SERIAL (Pool U.1-100) 7.00% 02/15/27 202, ,719 (2) GNMA SERIAL (Pool U ) 7.50% 02/15/27 174, ,655 (2) GNMA SERIAL (Pool U.1-100) 7.00% 04/15/27 212, ,746 (2) GNMA SERIAL (Pool U.1-100) 7.00% 05/15/27 118,214 94,341 (2) GNMA SERIAL (Pool U ) 7.00% 06/15/27 103, ,273 (2) GNMA SERIAL (Pool U ) 7.00% 06/15/27 171, ,279 (2) GNMA SERIAL (Pool U ) 7.00% 07/15/27 244, ,526 (2) GNMA SERIAL (Pool U ) 7.50% 07/15/27 185,814 98,791 (2) GNMA SERIAL (Pool U & 100) 6.00% 10/15/29 111,229 87,940 (2) GNMA SERIAL (Pool U ) 6.50% 11/15/30 99,451 95,885 (2) GNMA SERIAL (Pool U ) 6.50% 12/15/30 108,436 93,281 (2) GNMA SERIAL (Pool U ) 6.50% 01/15/31 105,491 90,552 (2) GNMA SERIAL (Pool U ) 7.00% 01/15/31 99,349 91,207 (2) GNMA SERIAL (Pool U ) 6.50% 06/15/31 103,146 63,164 (2) GNMA SERIAL (Pool U ) 6.50% 06/15/31 71, ,840 (2) GNMA SERIAL (Pool U ) 6.50% 07/15/31 166, ,869 (2) GNMA SERIAL (Pool U ) 6.50% 07/15/31 364, ,826 (2) GNMA SERIAL (Pool U ) 6.50% 07/15/31 409, ,869 (2) GNMA SERIAL (Pool U ) 6.50% 01/15/32 503, ,339 (2) GNMA SERIAL (Pool U ) 6.50% 01/15/32 309, ,064 (2) GNMA SERIAL (Pool U ) 6.50% 08/15/32 283, ,768 (2) GNMA SERIAL (Pool U ) 5.50% 04/15/34 727,819 6,215,279 6,898,645 Puerto Rico Freddie Mac Taxable % of net assets applicable to common units, total cost of $382,952 1,399 (3) FGLMC (Pool C22503) 7.00% 01/01/29 1,402 65,867 (3) FGLMC (Pool C32273) 7.00% 10/01/29 67, ,684 (3) # FGLMC (Pool A50498) 6.00% 07/01/36 355, , ,478 The accompanying notes are an integral part of these financial statements.

12 Puerto Rico Investors Bond Fund I September 30, 2017 SCHEDULE OF INVESTMENTS (concluded) Principal Outstanding Amount Issuer Coupon Puerto Rico Fannie Mae Taxable % of net assets applicable to common units, total cost of $2,789,306 Maturity Date Fair Value 17,886 (5) FNMA (Pool ) 7.00% 09/01/28 $18,113 21,705 (5) FNMA (Pool ) 7.00% 10/01/28 21,749 59,697 (5) FNMA (Pool ) 7.00% 11/01/28 61,404 92,643 # (5) FNMA (Pool ) 6.50% 12/01/28 102,657 16,447 (5) FNMA (Pool ) 7.00% 12/01/28 17,947 79,082 (5) FNMA (Pool ) 7.50% 12/01/28 87,003 83,994 # (5) FNMA (Pool ) 7.00% 01/01/29 91,056 92,578 # (5) FNMA (Pool ) 7.00% 03/01/29 96, ,339 # (5) FNMA (Pool ) 7.00% 03/01/29 176, ,351 # (5) FNMA (Pool ) 7.00% 03/01/29 152,014 32,051 (5) FNMA (Pool ) 7.50% 03/01/29 32,288 33,831 (5) FNMA (Pool ) 7.00% 09/01/29 34,093 44,630 (5) FNMA (Pool ) 8.00% 09/01/29 45, ,375 # (5) FNMA (Pool ) 8.00% 09/01/29 220,257 36,617 # (5) FNMA (Pool ) 8.50% 05/01/30 41,856 14,239 (5) FNMA (Pool ) 8.50% 05/01/30 15,312 21,623 (5) FNMA (Pool ) 8.00% 09/01/30 24,510 69,404 (5) FNMA (Pool ) 7.00% 03/01/31 76,076 1,576,812 # (5) FNMA (Pool ) 5.00% 01/01/36 1,749,217 2,789,304 3,064,164 Puerto Rico Collateralized Mortgage Obligations Taxable % of net assets applicable to common units, total cost of $502, ,495 (6) Doral Fixed Rate Conventional Mortgage (Pool 2004-A) 6.69% 04/01/34 356,420 Puerto Rico Tax Exempt Notes % of net assets applicable to common units, total cost of $722,443 86,949 (4) Community Endowment, Inc. (Collateralized by GNMA Pool ) 7.00% 07/15/29 90,803 64,646 (4) Community Endowment, Inc. (Collateralized by GNMA Pool ) 7.00% 07/15/29 66,719 37,204 (4) Community Endowment, Inc. (Collateralized by GNMA Pool ) 7.00% 07/15/29 37,608 39,090 (4) Community Endowment, Inc. (Collateralized by GNMA Pool ) 7.00% 07/15/29 39,550 46,855 (4) Community Endowment, Inc. (Collateralized by GNMA Pool ) 7.00% 07/15/29 48,002 85,672 (4) Community Endowment, Inc. (Collateralized by GNMA Pool ) 7.00% 08/15/29 89,406 36,540 (4) Community Endowment, Inc. (Collateralized by GNMA Pool ) 7.00% 08/15/29 36,924 19,754 (4) Community Endowment, Inc. (Collateralized by GNMA Pool ) 7.00% 08/15/29 20,153 42,402 (4) Community Endowment, Inc. (Collateralized by GNMA Pool ) 7.00% 09/15/29 43, ,541 (4) Community Endowment, Inc. (Collateralized by GNMA Pool ) 7.00% 09/15/29 107,188 31,144 (4) Community Endowment, Inc. (Collateralized by GNMA Pool ) 7.00% 09/15/29 31, ,806 (4) Community Endowment, Inc. (Collateralized by GNMA Pool ) 7.50% 10/15/29 108,348 27,833 (4) Community Endowment, Inc. (Collateralized by GNMA Pool ) 7.50% 10/15/29 28, , ,071 Face Amount Puerto Rico Government Instrumentalities Tax Exempt Notes % of net assets applicable to common units, total cost of $30,323,879 (7) (8) Employees Retirement System - Senior Pension Funding Bonds Series B 0.00% 07/01/34 1,150,995 (7) (8) Employees Retirement System - Senior Pension Funding Bonds Series A 6.15% 07/01/38 583,075 (7) (8) Employees Retirement System - Senior Pension Funding Bonds Series B 6.30% 07/01/38 35,275 (7) (8) Employees Retirement System - Senior Pension Funding Bonds Series A 6.20% 07/01/40 305,025 (7) + Puerto Rico Sales Tax Financing Corp Appreciation Bonds 2008 Series A 0.00% 08/01/24 163,323 (7) + Puerto Rico Sales Tax Financing Corp Appreciation Bonds 2008 Series A 0.00% 08/01/25 2,867,869 (7) + Puerto Rico Sales Tax Financing Corp Appreciation Bonds 2008 Series A 0.00% 08/01/26 2,691,954 (7) + Puerto Rico Sales Tax Financing Corp Appreciation Bonds 2008 Series A 0.00% 08/01/27 2,864,694 (7) + Puerto Rico Sales Tax Financing Corp Appreciation Bonds 2007 Series B 0.00% 08/01/29 2,890,572 (7) + Puerto Rico Sales Tax Financing Corp Appreciation Bonds 2008 Series A 0.00% 08/01/35 2,860,635 (7) + Puerto Rico Sales Tax Financing Corp Revenue Bonds 2009 Series A 6.00% 08/01/42 693,050 62,140,000 17,106,467 US Government Sponsored Entities % of net assets applicable to common units, total cost of $46,962,765 6,675,000 # Federal Farm Credit Bank 5.13% 11/28/22 7,659,055 1,650,000 # Federal Farm Credit Bank 5.20% 02/06/26 1,982, ,000 Federal Farm Credit Bank 2.90% 05/16/31 # Federal Home Loan Bank Bonds 2.65% 08/16/32 5,570,479 Federal Home Loan Bank Bonds 3.13% 04/28/36 2,353,135 Federal Home Loan Bank Bonds 3.00% 05/23/36 285,867 23,040,000 # Federal Home Loan Bank Bonds 5.50% 07/15/36 31,165,426 2,000,000 # Federal Home Loan Bank Bonds 2.79% 08/08/36 1,859,310 Federal Home Loan Bank Bonds 2.70% 10/17/36 1,246,320 43,515,000 52,218,676 US Municipal Obligations % of net assets applicable to common units, total cost of $7,136,605 # State of California - Various Purpose General Obligation Bonds 7.95% 03/01/36 7,284,050 # State of California - Various Purpose General Obligation Bonds 7.63% 03/01/40 811,345 6,980,000 8,095,395 Total investments (182.45% of net assets applicable to common units) 92,387,096 Liabilities minus other assets (-82.45% of net assets applicable to common units) (41,748,772) Net assets attributable to common units - 100% $50,638,324 (1) AFICA - Puerto Rico Industrial, Tourism, Medical, Educational, and Environmental Pollution Control Facilities Financing Authority. Revenue bonds are payable solely from cash flows generated by the underlying project, which do not constitute an indebtness of the Commonwealth of PR or any of its political subdivisions, other than AFICA. (2) Puerto Rico GNMA - Represents mortgage-backed obligations guaranteed by the Government National Mortgage Association. They are subject to principal paydowns as a result of prepayments or refinancing of the underlying mortgage instruments. As a result, the average life may be substantially less than the original maturity. (3) Puerto Rico Freddie Mac Taxable - Represents mortgage-backed obligations guaranteed by the Federal Home Loan Mortgage Corporation. They are subject to principal paydowns as a result of prepayments or refinancing of the underlying mortgage instruments. As a result, the average life may be substantially less than the original maturity. (4) Community Endowment - These obligations are collateralized by mortgage-backed securities and the only source of repayment is the collateral. They are subject to principal paydowns as a result of prepayments or refinancing of the underlying mortgage instruments. As a result, the average life may be substantially less than the original maturity. (5) Puerto Rico Fannie Mae Taxable- Represents mortgage-backed obligations guaranteed by the Federal National Mortgage Association. They are subject to principal paydowns as a result of prepayments or refinancing of the underlying mortgage instruments. As a result, the average life may be substantially less than the original maturity. (6) Investment in a participation certificate of a group of conventional residential mortgages. The pool has mortgage loans with payment in arrears that have been advanced by the servicer pursuant to a guarantee of timely payment of principal and interest. They are subject to principal paydowns as a result of prepayments or refinancing of the underlying mortgage instruments. As a result, the average life may be substantially less than the original maturity. (7) Revenue Bonds - issued by agencies and payable from revenues and other sources of income of the agency as specified in the applicable prospectus. These obligations are not an obligation of the Commonwealth of Puerto Rico. (8) These bonds are limited, non-recourse obligations of the Employees Retirement System payable solely from, and secured solely by, employer contributions made after the date of issuance of the bonds. # A portion or all of the security has been pledged as collateral for securities sold under agreements to Security may be called before its maturity date. ^ AFICA Palmas del Mar Country Club Project has defaulted on its monthly interest payment of $16,856 since July 20, Puerto Rico Sales Tax Financing Corporation has its interest payments on hold since June 1, 2017 pending resolution by the Court. For this reason, interest income was adjusted by $98,493 before year end. ++ Puerto Rico Highways Transportation Authority defaulted on its July 1, 2017 interest payment. For this reason, interest income was adjusted by $15,125 before year end. The accompanying notes are an integral part of these financial statements.

13 Puerto Rico Investors Bond Fund I September 30, 2017 STATEMENT OF ASSETS AND LIABILITIES Assets: Investments in securities: Securities pledged as collateral under repurchase agreements, at fair value, which has the right to be repledged (cost - $39,887,183) $44,717,150 Other securities, at fair value (cost - $61,095,828) 47,669,946 $92,387,096 Cash and cash equivalents 143,777 Interest receivable 615,658 Other assets 54,128 Total assets 93,200,659 Liabilities: Securities sold under agreements to repurchase 42,077,011 Payables: Dividend payable 314,750 Interest 7,555 Investment advisory fees 19,375 Administration fees 11, ,305 Accrued expenses and other liabilities 132,019 Total liabilities 42,562,335 Net Assets Applicable to Common Units: $50,638,324 Net Assets Balance applicable to 14,811,716 units of fractional undivided interest outstanding $186,763,113 Consist of: Undistributed net investment income 4,276,735 Accumulated net realized loss on investments (131,805,609) Unrealized net depreciation on investments (8,595,915) Net assets applicable to common units $50,638,324 Net asset value applicable to common units - per unit; 14,811,716 units outstanding $3.42 The accompanying notes are an integral part of these financial statements.

14 Puerto Rico Investors Bond Fund I STATEMENT OF OPERATIONS For the year ended September 30, 2017 Investment income: Interest $5,498,442 Expenses: Interest and leverage related expenses 497,763 Investment advisory fees 577,746 Administration fees 144,436 Professional fees 239,791 Directors' fees and expenses 27,000 Insurance expense 69,313 Printing and shareholder reports 3,187 Other 30,608 Total expenses 1,589,844 Waived investment advisory fees (304,130) Net expenses after fees waived by investment advisers 1,285,714 Net investment income: 4,212,728 Realized Gain (Loss) & Unrealized Net realized loss on investments (7,514,938) Appreciation (Depreciation) on Change in unrealized depreciation on investments 426,661 Investments: Total net loss on investments (7,088,277) Net decrease in net assets resulting from operations ($2,875,549) The accompanying notes are an integral part of these financial statements.

15 Puerto Rico Investors Bond Fund I STATEMENTS OF CHANGES IN NET ASSETS Increase (Decrease) in Net Assets: For the year ended September 30, 2017 For the year ended September 30, 2016 Operations: Net investment income $4,212,728 $5,065,803 Net realized loss on investments (7,514,938) (1,915,356) Change in unrealized depreciation on investments 426,661 8,598,242 Net (decrease) increase in net assets resulting from operations (2,875,549) 11,748,689 Distributions to Common Unitholders from: Dividends from net investment income (4,442,417) (5,403,284) Units Transactions: Reinvestment of dividends on common units 21,943 11,219 Increase in net assets derived from common units transactions 21,943 11,219 Net Assets: Net (decrease) increase in net assets attributable to common units (7,296,023) 6,356,624 Balance at beginning of the year 57,934,347 51,577,723 Balance at end of the year $50,638,324 $57,934,347 The accompanying notes are an integral part of these financial statements.

16 Puerto Rico Investors Bond Fund I STATEMENT OF CASH FLOWS Increase (Decrease) in Cash For the year ended September 30, 2017 Cash Provided by Net decrease in net assets resulting from operations ($2,875,549) Operating Activities: Adjusted by: Sales of portfolio securities 4,208,012 Proceeds from mortgage-backed securities paydowns 1,646,527 Net realized loss on paydowns 411 Net realized loss on investments 7,514,938 Change in unrealized depreciation on investments (426,661) Accretion of discounts on investments (1,965,455) Amortization of premiums on investments 198,344 Decrease in payable for investments purchased (1,349,527) Decrease in interest and dividends receivable 33,256 Decrease in other assets 337 Decrease in interest payable (9,144) Decrease in investment advisory fees payable (6,619) Decrease in administration fees payable (1,372) Increase in accrued expenses and other liabilities 38,950 Total cash provided by operating activities 7,006,448 Cash Used in Repo related repayments; net of issuances of $950,283,658 (2,574,989) Financing Activities: Dividends to common unitholders paid in cash (4,519,043) Total cash used in financing activities (7,094,032) Cash: Net decrease in cash and cash equivalents (87,584) Cash and cash equivalents at beginning of year 231,361 Cash and cash equivalents at end of year $143,777 Cash Flow Cash paid for interest and leverage related expenses $506,907 Information: Non-cash activities: Dividends reinvested by common unitholders $21,943 The accompanying notes are an integral part of these financial statements.

17 PUERTO RICO INVESTORS BOND FUND I SEPTEMBER 30, 2017 NOTES TO FINANCIAL STATEMENTS Note 1 - Reporting Entity and Significant Accounting Policies: The Puerto Rico Investors Bond Fund I (the Fund ), an investment trust organized under the laws of the Commonwealth of Puerto Rico, is a non-diversified investment company registered under the Puerto Rico Investment Companies Act of 1954, as amended. The Fund was created pursuant to an agreement and deed of trust entered into by and between Popular Securities, LLC ( Popular Securities ) and UBS Financial Services Incorporated of Puerto Rico ( UBS Puerto Rico ) as settlers, and their affiliates, Banco Popular de Puerto Rico ( Banco Popular ) and UBS Trust Company of Puerto Rico, as trustees (the Trustees ). The Fund s investment objective is to achieve a high level of tax-advantaged current income consistent with the preservation of capital. The Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services Investment Companies (ASC 946). The financial statements are prepared in accordance with United States ( US ) generally accepted accounting principles (GAAP), which requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements: (a) Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits and funds invested in shortterm investments with original maturities of 90 days or less. Cash and cash equivalents are valued at amortized cost, which approximates fair value. At September 30, 2017, cash and cash equivalents consisted of a time deposit open account amounting to $143,777 with Banco Popular de Puerto Rico, which is an affiliated entity. (b) Valuation of Investments - Investments included in the Fund s financial statements have been stated at fair values as determined by Banco Popular de Puerto Rico, as the Fund's administrator, with the assistance of the Investment Advisers (Refer to Note 3 for details on investment agreements), on the basis of valuations provided by dealers or by pricing services, which are approved by the Fund s management and the Board of Directors, in accordance with the valuation methods set forth in the Governing Documents (Prospectus and Valuation Committee) and related policies and procedures. See Note 2 for further discussions regarding fair value disclosures. (c) Taxation - The Fund has elected to be treated as a registered investment company under the Puerto Rico Internal Revenue Code of 2011, as amended, and the regulations and administrative pronouncements promulgated thereunder. As a registered investment company under the Puerto Rico Investment Companies Act, the Fund will not be subject to Puerto Rico ( PR ) income tax for any taxable year if it distributes at least 90% of its taxable net investment income for such year, as determined for these purposes. Accordingly, as the Fund intends to meet this distribution requirement, the income earned by the Fund is not subject to Puerto Rico income tax at the Fund level. The Fund has never been subject to taxation. In addition, the fixed income and equity investments of the Fund are exempt from Puerto Rico personal property taxes. The Fund is exempt from United States income taxes, except for dividends received from United States sources, which are subject to a 10% United States withholding tax, if certain requirements are met. Dividend income is recorded net of taxes. In the opinion of the Fund's legal counsel, the Fund is not required to file a U.S. federal income tax return.

18 PUERTO RICO INVESTORS BOND FUND I SEPTEMBER 30, 2017 NOTES TO FINANCIAL STATEMENTS GAAP requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund s tax return to determine whether the tax positions are more-likely-than-not of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Fund s tax positions taken on its Puerto Rico income tax returns for all open tax years (the current and prior three tax years) and has concluded that no liability should be recorded related to uncertain tax positions taken on returns filed for open tax years. On an ongoing basis, management will monitor the Fund's tax position to determine if adjustments to this conclusion are necessary. The balance of undistributed net investment income and of accumulated net realized loss on investments and derivatives reflect the reclassification of permanent differences and of temporary differences between book and tax balances that become permanent. As a result of these reclassifications, the amounts shown in the Statement of Assets and Liabilities reflect the amounts for tax purposes, except for remaining temporary differences, if any (See Note 11). (d) Statement of Cash Flows The Fund invests in securities and distributes dividends from net investment income, which are paid in cash or are reinvested at the discretion of common unitholders. These activities are reported in the Statement of Changes in Net Assets. Additional information on cash receipts and payments is presented in the Statement of Cash Flows. Accounting practices that do not affect the reporting of activities on a cash basis include carrying investments at value and amortizing premiums or discounts on debt obligations. (e) Dividends and Distributions to Unitholders - Dividends from net investment income are declared and paid monthly. The Fund may at times pay out less than the entire amount of net investment income earned in any particular period and may at times pay out such accumulated undistributed income earned in other periods in order to permit a more stable level of distribution. The Fund records dividends to its unitholders on the ex-dividend date. The Fund does not expect to make distributions of net realized capital gains, if and when available, although the Fund s Board of Directors reserves the right to do so in its sole discretion. (f) Securities Sold under Agreements to Repurchase - Under these agreements, the Fund sells securities, receives cash in exchange and agrees to repurchase the securities at a mutually agreed date and price. Ordinarily, those counterparties with which the Fund enters into these agreements require delivery of collateral, nevertheless, the Fund retains ownership of the collateral through the agreement that requires the repurchase and return of such collateral. These transactions are treated as financings and recorded as liabilities. Therefore, no gain or loss is recognized on the transaction and the securities pledged as collateral remain recorded as assets of the Fund. These agreements involve the risk that the market value of the securities purchased with the proceeds from the sale of securities received by the Fund may decline below the price of the securities that the Fund is obligated to repurchase and that the value of the collateral posted by the Fund increases in value and the counterparty does not return it. 71Because the Fund borrows under repurchase agreements based on the estimated fair value of the pledged assets, the Fund s ongoing ability to borrow under its repurchase facilities may be limited and its lenders may initiate margin calls in the event of adverse changes in the market. A decrease in market value of the pledged assets may require the Fund to post additional collateral or otherwise sell assets at a time when it may not be in the best interest of the Fund to do so (See Note 6). (g) Short-term notes - The Fund has a short-term notes payable program as a funding vehicle to increase the amount available for investments. The short-term notes are issued from time to time in denominations of $25,000 maturing in periods of up to 270 days. The notes are collateralized by the pledge of certain securities of the Fund. The pledged securities are held by Banco Popular de Puerto Rico (the Custodian), as collateral agent, for the benefit of the holders of the notes. There were no short-term notes outstanding during the year ended September 30, 2017.

19 PUERTO RICO INVESTORS BOND FUND I SEPTEMBER 30, 2017 NOTES TO FINANCIAL STATEMENTS (h) Paydowns Realized gains and losses on mortgage-backed securities paydowns are recorded as an adjustment to interest income as required by GAAP. For the year ended September 30, 2017, the Fund decreased interest income in the amount of $411 related to net realized loss on mortgage-backed securities paydowns. For purposes of dividend distributions, net investment income excludes the effect of mortgage-backed securities paydowns gains and losses (See Note 11). (i) Use of Estimates in the Preparation of Financial Statements - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. (j) Other - Security transactions are accounted for on the trade date (the date the order to buy or sell is executed). Realized gains and losses on security transactions are determined based on the identified cost method. Premiums and discounts on securities purchased are amortized over the life or the expected life of the respective securities using the effective interest method. Interest and dividend income on preferred equity securities are accrued daily except when collection is not expected. Dividend income on common equity securities is recorded on the exdividend date. Note 2 Fair Value Measurements: Under GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. GAAP establishes a fair value hierarchy that prioritizes the inputs and valuation techniques used to measure fair value into three levels in order to increase consistency and comparability in fair value measurements and disclosures. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for the fair value measurement are observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect the Fund s estimates about assumptions that market participants would use in pricing the asset or liability based on the best information available. The hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. Valuation on these instruments does not need a significant degree of judgment since valuations are based on quoted prices that are readily available in an active market. Level 2 Quoted prices other than those included in Level 1 that are observable either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or that can be corroborated by observable market data for substantially the full term of the financial instrument. Level 3 Unobservable inputs are significant to the fair value measurement. Unobservable inputs reflect the Fund s own assumptions about assumptions that market participants would use in pricing the asset or liability. The Fund maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing on those securities. Fair value is based upon quoted market prices when available. If listed price or quotes are not available, the Fund employs internally developed