Advice on poorly performing ISA

[WobblyLondoner]

DP has an ISA in his name that contains money invested for our son, now 17 (from his late granddad). It was opened in Nov 2020 and was (foolishly I now realise) invested in Vanguard life strategy 40 (60 % bonds 40% equities).

I'd like to change the investments to something with a higher rate of equities as he won't be drawing in this for a long time I hope.

My question is when I should do this. I put in £20k and it's down nearly £1k, with rate of return of over minus 5%. Would I be better to wait until it's at least back even or should I cut our (his) losses now and just do it?

I know why it's performed badly - bonds, pandemic - and also that it was the wrong mix for him.

Any advice welcome.

I had the same problem. I subbed the 40/60 for 20/80 and a global tracker a few months ago and it's perked up a bit. I doubt that's good advice though, consolidating losses.

Thanks @calyxx. There is another factor which I'm struggling to admit, which is that DP has been diagnosed with a terminal illness and so perhaps I should also be thinking about how best to transfer this money into DS's name. Complicated. Will know more about the diagnosis soon so will wait until then.

Bond heavy funds could easily take a decade to recover.
Take the hit now and go 100% equities if it’s for long term investment.
If you don’t want to chuck in a lump sum then put 3/4 of the cash into a short term money market fund and drip feed into a global tracker. You’ll get 5% in the STMM while you’re doing it.
I’ve recovered just over half of my losses on a bond heavy fund in my ISA in two years. It tanked a fortnight after I’d bought the fund, first time I’ve ever not drip fed 🙄
I took the hit and sold up, putting it into Fidelity AWI.

I'd cut my losses. £1k down on a £20k portfolio isn't that bad - some of my bond funds have fallen by over 40%.

Thanks all. Am not familiar with money market funds but I can see Vanguard have one. Am nervous about moving the lot into that but will give this proper thought this weekend . @nannynick I don't suppose you have a view, I always value your perspective on these things.

Sorry, I don't know much about money market funds.
Chris Bourne has recently released a video which talks about money market funds: